Louisiana Citizens Settles Policyholder Lawsuits for $35 Million

October 17, 2008

Louisiana’s state-run insurer of last resort has reached a $35 million agreement with policyholders to resolve claims that the insurer failed to offer settlements for hurricane claims in a timely fashion after Hurricanes Katrina and Rita in 2005.

Plaintiffs attorney Madro Bandaries said that thousands of policyholders are eligible for payments of roughly $1,000 under the terms of the settlement with Louisiana Citizens Property Insurance Corporation.

The settlement doesn’t include any admission of wrongdoing by Citizens. But the agreement resolves two class action lawsuits that accuse the company of failing to provide a written settlement offer to policyholders within 30 days of being notified of storm damage.

Information from: The Times-Picayune, www.timespicayune.com

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