Louisiana: 63% of Citizens Rebate Still Unclaimed for 2005, 2006

December 2, 2010

Nearly $355 million in rebates from Louisiana’s property insurer of last resort has not been claimed and state’s top insurance regulator wants people to know about it.

Insurance Commissioner Jim Donelon is urging those who have had a property insurance policy during the last four years to apply for the rebate for the assessment on their policy by Louisiana Citizens Property Insurance Corp. Policies were assessed to help Citizens pay for claims from Hurricanes Katrina and Rita.

Dec. 31, 2010, is the deadline to claim assessments paid for 2005 and 2006.

Only 274,947 homeowners have claimed the 2006 rebate out of an estimated 1,656,000 households in Louisiana, or 16.6 percent of households.

“Claiming the rebate is simple,” Donelon said in an announcement released by the insurance department. “Just fill out the Louisiana Department of Revenue tax form for the year in which you paid the Citizens Assessment and mail or fax it in with your insurance declaration page showing the assessment has been included in the insurance premium.”

  • Citizens Assessments paid in 2005 and 2006 can be claimed by completing the state Department of Revenue 2006 Form R-540INS.
  • Assessments paid in 2007 can be claimed on a 2007 Form R-540INS by the end of 2011.
  • Assessments paid in 2008 can be claimed on a 2008 Form R-540INS. This deadline is the end of 2012.
  • Assessments paid in 2009 must be claimed by the end of 2013 on the 2009 Form R-540INS.
  • Assessments paid in 2010 must be claimed by the end of 2014 on the 2010 Form R-540INS.
  • Businesses should complete Form R-620INS for the appropriate year to claim the rebate.

A copy of the insurance policy declaration page showing proof of the assessment amount must be attached to the form. Policyholders can choose to claim the rebate as soon as they pay the insurance premium that includes the Citizens Assessment or when filing the State Tax Return due each May. The department cautioned against claiming the rebate on both the INS form and the tax return as this will delay the refund.

The Department of Revenue (LDR) reminds individuals not to claim the total insurance premium, only the Citizens Assessment. This will delay the refund as well.

LDR recommends that those who pay the Citizens Assessment on more than one property to send in a single INS form for all properties each year rather than a separate INS form for each property. An R-INS Supplement form should be used for more than one property. Otherwise the second claim will automatically be delayed for review.

Below is a chart showing the unclaimed rebate amounts for each of the years it has been available:

Citizens Assessments Unclaimed as of Oct. 1, 2010

Year Assessment Amount Collected Dollar Amount Claimed with LDR Dollar Amount Left Unclaimed Percent Dollar Amount Unclaimed
2006 $200 million $60,099,775.00 $139,900,225 69.95%
2007 $70,164,783 $56,802,472.00 $13,362,311 19.04%
2008 $100,234,934 $44,541,946.00 $55,692,988 55.56%
2009* $104 million $42,549,729.00 * $61,450,271 59.08%*
2010* $85 million $589,889.00 * $84,410,111 99.30%
Total $559,399,717 $204,583,811.00 $354,815,906 63.42%

*Incomplete data due to additional time to file available

The tax forms are available from the Department of Insurance home page at www.ldi.la.gov by clicking on the newsreel link, “Louisiana Citizens Insurance Tax Credit.”

Source: Louisiana Department of Insurance

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