Auto insurance fines spark controversy in Louisiana

auto insurance ride share program

Louisiana Office of Motor Vehicles aims to collect on fines that are decades old Louisiana Insurance Commissioner Jim Donelon is taking aim at the state’s Office of Motor Vehicles. Last week, the agency issued notifications to consumers throughout the state, seeking to recoup millions of dollars in fines for auto insurance lapses. A significant portion of these fines are quite old, with some coming from violations dating back as far as 1986. Notices issued to consumers caused an outcry, which got the attention of the Louisiana Department of Insurance. State…

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Homeowners insurance market in Louisiana has healed, says Commissioner

Hurricane Katrina Flood Damage homeowners insurance

According to Jim Donelon, this marketplace has now finally rebounded from Hurricane Katrina. Since Hurricane Katrina and the massive devastation that it left behind, Louisiana has managed to come a very long way in revitalizing its tourism, real estate, and homeowners insurance markets, according to a recent statement from the state’s commissioner, Jim Donelon. The state’s “insurance market has rebounded and flourished” since that terrible time in its past. When Hurricane Katrina smashed through Louisiana in 2005, it left $25 billion in insured losses behind, following 725,000 claims in that…

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Flood insurance rates battle now includes another state

flood homeowners insurance rates

Mississippi has been trying to combat the federal plans to boost the price of coverage. The intentions to increase federal flood insurance rates is currently being challenged by Mississippi, and that state is far from being alone as Louisiana, its neighbor, has now joined the others in this legal action to try to keep the cost at an affordable level. The original lawsuit was filed by Mississippi in an attempt to stop increases at the start of October. The National Flood Insurance Program (NFIP) had announced that premiums for most…

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Homeowners insurance will likely not be impacted by Isaac

Homeowners flood Insurance hurricane sandy damage

It isn’t likely that premiums will change due to the hurricane in Louisiana. According to Louisiana’s insurance commissioner, Jim Donelon, the odds that hurricane Isaac will have any impact on the premiums paid by residents of the state in order to cover their homes is very slim. Donelon stated that it is now estimated that insured damage from Isaac will total $500 million to $1.5 billion. Hurricane Katrina was by far the most costly in terms of homeowners insurance costs. It brought in a total of $25 billion in damages. Rita…

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Louisiana joins federal network to combat fraud

California Insurance company Fraud scam

Federal Financial Crimes Enforcement Network to help Louisiana fight insurance fraud Insurance fraud continues to grab headlines throughout the world of insurance news as states begin to combat the crime. Louisiana insurance officials have announced that the state has agreed to share information with the federal Treasury Department’s Financial Crimes Enforcement Network. The network was built to help states fight against insurance fraud. By participating in the network, Louisiana will have access to resources that will help regulators and law enforcement officials cut down on insurance fraud. Commissioner Donelon highlights…

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Insurance payout judgment faces another delay

Louisiana Citizens Property Insurance Corp. policyholders have faced another block from a state of appeals court, which has halted their ability to collect over $100 million from the insurer’s failure to process the 2005 hurricane claims within a reasonable time frame. According to the chief executive officer at Citizens, Richard Robertson, a temporary order was issued by the 5th Circuit Court of Appeal, prohibiting the attorneys of the plaintiff from being able to perform a funds seizure from the insurance company’s accounts. There will be a later decision by the…

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Citizens Property Insurance board places $102.8 million settlement on the table

The board of directors from the Louisiana Citizens Property Insurance Corp. has offered a settlement worth $102.8 million to the 25,000 policyholders in the state, who have been arguing that the agency took too long in their claims adjustment process following 2005’s Hurricanes Katrina and Rita. The offer was made following the board’s 12-0 vote at a public meeting, following a 2 and a half hour discussion that addressed the litigation. The settlement included an offer to pay $92.8 million to the 18,563 people who took part in the Geraldine…

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