The Louisiana Supreme Court has voted to reinstate a $92.8 million suit against the state’s Citizens Property Insurance Corp. this week. The suit originated in early 2006 and claims that the state-run insurance organization was intentionally slow in adjusting insurance claims resulting from Hurricanes Katrina and Rita. The 24th Judicial District Court had awarded some 18,000 homeowners with roughly $5,000 after hearing the case. The action, however, violated state law and put the suit on hold for some time. The ruling has found a staunch enemy in the state’s Insurance…
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Higher insurance and reinsurance prices may be linked to new RMS catastrophe model
State Farm customers in northeastern Louisiana may soon be paying more for their homeowners insurance as the company looks to state regulators for approval of a rate increase of 19.5%. The insurer claims that higher rates are the result of recent fires, tornados and other natural disasters occurring in the state. Insurance Commissioner Jim Donelon says that he has never before experienced such a steep increase in insurance rates, especially in the northern part of the states that are not often subject to such rate increases. The rate at which…
Read MoreLouisiana insurance rebates remain unclaimed by policyholders eligible to claim the money
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…
Read MoreFederal officials ready to debate health insurance rate increase of 10% or more
U.S. officials are getting ready to debate whether or not increases in the rates for health insurance of 10 percent or more were excessive within seven states which have rate review processes that have been labeled ineffective. The rate review systems for Louisiana, Alabama, Montana, Arizona, Wyoming, Idaho, Missouri, as well as four territories have been deemed to be insufficient by the Center for Consumer Information and Insurance Oversight (CCIIO). The CCIIO is a branch of the Centers for Medicare and Medicaid Services. According to the CCIIO, federal officials, under…
Read MoreState Farm of Louisiana seeks approval for rate hikes on homeowner’s policies
Insurance regulators in Louisiana are fielding a rate increase proposal from the state’s largest provider of home insurance, State Farm. The insurer is seeking approval to boost their premiums on homeowner’s policies by an average of 8.5%. According to the state’s Insurance Department, the rate increase will affect more than 300,000 policyholders and would net the insurer an additional $32.7 million in premiums annually. State Farm is pushing for approval and is planning on enacting the new rates on existing policies beginning October 1st. In March, State Farm submitted a…
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