Mississippi Attorney General Jim Hood's lawsuit, filed after Hurricane Katrina to compel insurers to pay for what carriers argue are excluded flood damage claims, remains mired in a jurisdictional dispute.

Shortly after Mr. Hood filed the suit in state court on Sept. 15, insurers moved to have the suit heard in U.S. District Court in Jackson, Miss.

"Since one of the main issues involved was the National Flood Insurance Program, we felt the federal venue was appropriate," said State Farm spokesman Phil Supple.

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