The Louisiana Department of Insurance has announced that consumers will be eligible to receive more than $5 million in rebates from various insurance companies in the state. State regulators recovered the money after consumers filed an overwhelming number of complaints in 2011. Half of the money comes from complaints regarding life insurance and annuities benefits, while the other half comes from complaints regarding property/casualty insurers. The Department of Insurance has received approximately 3,453 complaints from consumers, down from 4,347 in 2010.
Most of the complaints revolve around claims that insurers are overcharging for coverage. Other complaints hold that claims are not being paid on time or that consumers are receiving a fraction of the benefits they are owed. Regulators have investigated the companies targeted by the complaints and found that the concerns raised by consumers were accurate.
Insurance Commissioner Jim Donelon is encouraging consumers who feel they have been wronged by their insurance provider to contact the state’s Department of Insurance and file an official complaint.
The recovered funds will be distributed to consumers depending on the severity of their claim. Unaccounted for funds will be pooled into the state to be used at the discretion of lawmakers.
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