Complaints Lead to Probe of La. Insurers’ Hurricane Claims Handling

Lousiana Commissioner of Insurance Jim Donelon announced the Department of Insurance is set to begin market conduct examinations on two insurers, Allstate and St. Paul/Travelers.

Donelon said he ordered the exams in response to consumer complaints lodged with the department of how the companies handled homeowners insurance claims filed as a result of Hurricanes Katrina and Rita.

“Following an internal evaluation, a review of company complaint-to-market share ratio and other factors, the department will initially examine how these two homeowners insurers handled policyholder claims filed in the aftermath of Hurricanes Katrina and Rita,” Donelon said in the announcement.

Following the market conduct reviews of Allstate and St. Paul/Travelers, Commissioner Donelon said the department will then examine the Louisiana Citizens Property Insurance Corporation (Citizens). Citizens is the administrator of the FAIR and Coastal Plans, the state’s high risk homeowners insurance pools.

The number of companies under examination could increase, based on similar criteria, according to the DOI.