State Farm and other P&C insurers came into conflict with policyholders over claims filed as a result of Hurricane Katrina that resulted in lawsuits. The conflict resulted from

Question

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Insurers insisted that the Katrina storm surge caused flood damage that was not covered under standard homeowners' insurance policies. However, policyholders argued that their damage was caused by wind, which is covered. This led to a conflict over the interpretation of policy language and resulted in lawsuits. The other answer choices are not accurate.

State Farm and Other P&C Insurers Came into Conflict with Policyholders