State Farm Abandons Mississippi

Consumer Affairs is reporting that State Farm will no longer write policies in Mississippi after losing a lawsuit.

Paraphrasing Richard Nixon, Mississippi won't have State Farm Insurance to kick around anymore.

Stinging from defeat in a Hurricane Katrina damage claim in Biloxi, the company says it will no longer insure homeowners and businesses in the state, where it is the largest single insurer with a 30 percent market share. Allstate pulled out of Mississippi's six coastal counties last year.

"It is no longer prudent for us to take on additional risk in a legal and business environment that is becoming more unpredictable," said Senior Vice President Bob Trippel, in a statement.