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Pay Out or Go to Jail?

By The Associated Press

Published: Thu, November 08, 2007 - 5:15 pm Last Updated: Thu, November 08, 2007 - 5:18 pm

JACKSON, Miss. (AP) - Mississippi's deputy insurance
commissioner says in a court document that Attorney General Jim
Hood threatened to indict the chairman of State Farm Insurance
Companies if the insurer didn't settle lawsuits over thousands of
Hurricane Katrina claims.
Hood, though, tells The Associated Press that he never made such
a statement. Hood also says deputy insurance commissioner Lee
Harrell must have faulty memory.
Harrell's sworn statement was in court records that were made
public last Friday as part of a lawsuit State Farm filed against
Hood. The lawsuit was an attempt to stop a criminal investigation
into the company's handling of claims.
Harrell said in a deposition that he heard Hood say in 2005
--quoting-- If they don't settle with us, I'm going to indict them
all, from Ed Rust down.
Rust is State Farm's chairman and chief executive officer.
Harrell gave his deposition in October as part of the State Farm
lawsuit against Hood.
David Rossmiller is a Portland, Oregon-based lawyer who is
following the case. He says Harrell's allegations raise serious
questions about the dealings and negotiations between Hood's office
and private attorneys.

(Copyright 2007 by The Associated Press. All Rights Reserved.)

AP-NY-11-08-07 1746EST