Vulnerable Outer Banks

Declarations

“If we had a Katrina-sized storm, 75 percent of these islands could be gone. You can count on it cleaning the clock.”

— Stan Riggs, a geologist at East Carolina University who has studied the barrier islands that make up North Carolina’s Outer Banks for four decades.

Burning issue in N.C.

“Seventy-five percent of the cigarettes, when they’re dropped, will continue to burn for up to 45 minutes. It’s that long-lasting impact that creates the fire, not the short one.”

— Adam Goldstein, an associate professor of family medicine at the UNC Chapel Hill School of Medicine, speaking before a North Carolina House committee before it approved a bill requiring cigarette makers to make and sell cigarettes that burn out if left unattended. The so-called “fire-safe” cigarettes are rolled in special paper. Twelve states already have similar laws. It will go to the House Finance Committee before a vote in the full chamber.

Hoodwinked

“We filed this lawsuit in an effort to help the more than 30,000 Gulf Coast policyholders who have suffered for nearly two years because of State Farm’s inaction. The State Farm reevaluation procedure through the Department of Insurance has only resulted in a little more than 300 new offers. That does not comply with the terms we have with them in black and white. We have a state court order that they signed and then backed out on. If they will breach a clear agreement with a state, then this is further evidence that they have breached their own policy provisions with their insured on the coast.”

— Mississippi Attorney General Hood Attorney General Jim Hood on June 11 upon filing a complaint against State Farm Fire and Casualty Co. alleging bad faith breach of contract related to the settlement agreement the two parties entered into on January 23. The complaint seeks compensatory and punitive damages from State Farm.

Farming for headlines

“Sadly, it appears that Mississippi’s attorney general is more interested in making headlines in an election year than in making headway for the people of Mississippi. You have to wonder what would motivate Attorney General Hood to disrupt an agreement that mirrors the one he was ‘happy to announce’ on Jan. 23 and asked other insurers to emulate as ‘a step to recovery’ two days later?”

— Mike Fernandez, State Farm vice president of public affairs, in referencing Mississippi Attorney General Jim Hood’s filing of a civil suit alleging breach of his agreement with State Farm.

Settlement move

“This is one that we thought we were going to try. There had been no movement toward a settlement.”

— Jack Denton, plaintiff attorney, after State Farm agreed to settle a Mississippi policyholder’s lawsuit over Hurricane Katrina damage before a jury could be picked. Terms of the settlement between State Farm and the policyholder, Michael McCoy of Pass Christian, were not disclosed. McCoy was seeking full payment of his claim, $189,402, plus $5 million in punitive damages.

Topics Mississippi