Preliminary arguments in a lawsuit brought against State Farm Fire and Casualty Co. by Louisiana policyholders Gordon and Kathleen Schafer, which allege the insurer underpaid Hurricane Katrina claims by colluding with software manufacturer Xactware Solutions Inc. to keep property replacement costs artificially low, were recently heard in U.S. District Court. The lawsuit alleges that Utah-based Xactware Solutions Inc., also named as a defendant, provided State Farm with assessment and estimating software programs that had a “special profile” which quoted prices for building materials consistently lower than standard market value when adjusting and tallying payment for Katrina claims while using the software. Read more….
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