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Whistleblower suit alleges flood insurance fraud

A whistleblower suit alleging that insurance companies, adjusters and engineering firms defrauded the federal government has been unsealed. The suit was brought by two adjusters who claim the companies charged the National Flood Insurance program for claims the insurance companies should have paid.

Named as defendants are State Farm, Nationwide, Allstate and USAA insurance companies, plus engineering firms that examined property damage after Hurricane Katrina and an independent adjusting firm.

The federal government has not intervened in the suit, which was discussed in the August 6, 2007 issue of the Sun Herald.

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