Katrina and Rita Claimants to Receive $20 Million Settlement
Louisiana Citizens Property Insurance Corp. has agreed to a $20 million settlement, which ends a class action suit filed on behalf of 7,000-plus policyholders.
The policyholders sued Louisiana Citizens for its slow response after Hurricane Katrina and Hurricane Rita, as this recent article in the Insurance Journal notes. Citizens is a state-sponsored nonprofit offering property insurance to homes and business that can’t secure private insurance.
After the 2005 storms, claimants sued because of the tempo of Citizen’s claims payments. After a claimant offers a paper proof of loss, the insurer must pay within 30 days.
Citizens decided to settle the suit (along with a related suit from claimants in Jefferson Parish) back in September 2012. This settlement and the Jefferson County settlement will cost Citizens $60 million. Moreover, last July, the company paid out $104 million to satisfy a court judgment rendered in favor of thousands of policyholders over slow claims adjustment after the storms.
Whatever portion of the $20 million that may remain will be returned to Citizens, said the company CEO.
Have you or a loved one suffered damages inflicted by unfair or “bad faith” insurance claim denials? If so, contact Sokolove Law today for a free legal consultation.