In an official press release from the Louisiana State Insurance Commissioner.
Insurance Commissioner Jim Donelon has proposed to impose a combined fine of $764,750 on five home insurance companies following targeted market conduct reviews of their insurance business between Aug. June 30, 2021, when hurricanes Laura, Delta, and Zeta made landfall in Louisiana.
The five reviews revealed 44 instances of improper activities and/or business practices that did not comply with the Louisiana Insurance Code. Violations were found in the areas of complaints handling, complaints handling, operations and management.
The five companies for which the LDI has proposed fines are United Property & Casualty Insurance Company, GeoVera Specialty Insurance Company, FedNat Insurance Company, Maison Insurance Company and Allied Trust Insurance Company. LDI has retained Risk & Regulatory Consulting, LLC to participate in the review. The five review reports were adopted on April 11, 2022.
“The devastation and impact of the 2020 hurricane season has been overwhelming, but that does not excuse the activities we uncovered in our reviews of the market conduct of these five insurers,” Commissioner Donelon said. . “I strongly encourage our state’s insurance industry to take note of the unacceptable behavior we have seen and know that we will continue to seek fines and appropriate regulatory action against any insurer that fails to meet its obligations.”
The full press release can be viewed HERE.
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