NEWS

WIRES

OTHER

Mississippi Supreme Court's Corban v. USAA Ruling Confirms USAA Handled Katrina Claims Correctly

"This ruling is a good decision for USAA as well as for Mississippi homeowners," said USAA spokesman Paul Berry. "Each key position USAA put forth was affirmed by the court."

Those positions are:

• The court endorsed USAA's claims-handling policy in Hurricane Katrina. USAA paid for damage caused solely by wind but did not pay for damage caused by storm surge.
• The court affirmed USAA's legal argument that a jury should decide what losses, if any, were caused by wind, and what losses, if any, were caused by flood.
• The court found that the water damage exclusion in USAA's homeowners' policy clearly excludes storm surge.
• The court rejected the plaintiffs' argument that the homeowners' policy covers all damage caused by a hurricane, regardless of the cause.

USAA already has paid the Corban's for damage caused solely by wind and for damages covered by their flood policy. This ruling allows the case to go to trial so a jury can determine if any additional damage was caused to the Corban's home by wind rather than by water/storm surge, which is what USAA has sought all along.

The court did reject an argument by Nationwide Insurance, which argued that even if a house is damaged by wind, if flooding later takes place, there is no coverage. USAA has never supported this argument, and has never handled claims in this manner.

"USAA is pleased that the court approved of the way USAA handled Hurricane Katrina claims in Mississippi," added Berry. "The only losers in this ruling are those few insurance companies who chose not to pay wind damage - a practice not endorsed by USAA - and those who attempted to undercut decades of insurance law that has served Mississippi homeowners well."

About USAA

USAA, a diversified financial services group of companies, is among the leading providers of financial planning, insurance, investments, and banking products to members of the U.S. military and their families. For the past three years, BusinessWeek magazine ranked USAA among the top two "Customer Service Champs," highlighting the association's legendary commitment of providing highly competitive financial products for 7.2 million members. For more information about USAA, or to learn more about membership, visit usaa.com.

USAA
Paul Berry, 210-913-1562
paul.berry@usaa.com
or
On Twitter:
@USAA_News
@Paul_Berry