Louisiana Insurance Commissioner Jim Donelon says that $270 million in insurance rebates still remains unclaimed by policyholders this week. Late last month, Donelon issued a notice to policyholders explaining that they could be eligible for rebates. Thus far, however, no one has come forward looking to claim their share of the money. If the funds remain unclaimed, the state may seek to take control of the money. Such a move would only be possible if the state’s Legislature passes new laws regarding the matter.
The money was recovered from property/casualty and life insurers as part of an assessment of the industry after 2005’s Hurricanes Katrina and Rita. Much of the money comes from the Louisiana Citizens Property Insurance Company. The state-run insurer provides affordable coverage for many consumers, but was rattled by the 2005 storms, which spurred the state Legislature to inject approximately $1 billion into the program. Of that money, consumers can now reclaim $270 million.
Legislators have passed a law that would give consumers a 4-year window to reclaim the money. According to Donelon, if the money remains unclaimed, legislators would move to have it funneled into the state’s general fund, at which point the money could be used for a number of purposes.
Those looking to file for rebates can do so through the Louisiana Department of Insurance site. Donelon hopes that policyholders will claim the full amount of the rebates before their opportunity has passed.