Louisiana Policyholders Fail to Claim $133M in Rebates

Property insurance policyholders in Louisiana have missed the chance to claim almost $133 million in rebates that had been available before the end of 2010.

Insurance Commissioner Jim Donelon says the money — part of the assessments paid by private home and commercial policyholders for the Louisiana’s property insurer of last resort — has now gone into the state treasury.

“The $133 million went down the drain,” Donelon told The Times-Picayune.

Since 2006, property insurance holders have paid special assessments to pay off bonds to keep Louisiana Citizens Property Insurance Corp. solvent. The company was hit by a torrent of claims following hurricanes Katrina and Rita.

Donelon said that despite widespread publicity by his agency, about 69 percent of the available rebates went unclaimed from 2006. Policyholders had a four-year period to claim rebates — totaling $193.4 million — through direct claims or a credit on state income taxes.

Policyholders can still claim about $229 million in rebates for assessments paid from 2007 through 2010, Donelon said. For that period about $378 million has been collected.

Rebates for 2007 must be claimed by the end of this year.

Donelon spokeswoman Lori Cherry said that the 2008 assessments expire at the end of 2012, the 2009 payments will be lost by the end of 2013, and the 2010 assessments will vanish at the end of 2014 — unless the Legislature changes the existing deadlines.

Information from: The Times-Picayune