Hurricane Laura Approaches The Louisiana Coast, August 2020
Hurricane Laura Approaches The Louisiana Coast, August 2020

 

No Surprise – Louisiana Warns Home Insurers To Act in Good Faith

It is no surprise that on February 26, 2021, the Louisiana Insurance Commissioner has admonished insures to act in good faith when it comes to claims settlement of 2020 Hurricane Claims and policyholder service. The Commissioner warned:

  • some insurers are resisting requests from policyholders to obtain a complete copy of their policy. Insurers are reminded that the Policy Holder’s Bill of Rights La.R.S. 22:41 entitles a policyholder to receive a duplicate or replacement copy of their complete policy. To that end, insurers should make efforts to expeditiously comply with any policyholder requests for copies of their policy;
  • some insurers are refusing to communicate with their policyholders if the policyholder has hired a public adjuster. This is not allowed. Insurers must always maintain an open line of communication with their policyholders, and the presence of a public adjuster is irrelevant to that obligation;
  • Insurers are reminded that they must attempt, in good faith, to effectuate prompt, fair, and equitable settlements of claims4 and that they owe their insureds a duty of good faith and fair dealing.

No question this admonishment is directed at some of the greatest offenders found in the most recent complaint index.  Those insurers with the larger complaint index have the most complaints per market share.

Company/Group Market Share Number of Complaints Complaint Index
State Farm Group 26% 163 0.90856
FedNat Holding Company Group 3.9% 93 3.48228
GeoVera Specialty Insurance Company 1.8% 66 5.25358
United Insurance Holdings Group 4% 52 1.87236
Allstate Insurance Group 10.8% 51 0.68065
Allied Trust Insurance Company 0.9% 40 6.32678
TWIMG Group 3.1% 23 1.08225
USAA Group 6.2% 23 0.53878
Liberty Mutual Group 5.6% 18 0.46819
Progressive Group 3.9% 18 0.67448
Centauri National Insurance Company 1.6% 15 1.389
American Bankers Insurance Company of FL 1.4% 14 1.43079
IAT Reins Co Grp 0.9% 13 2.17708
Aegis Security Insurance Company 0.4% 10 3.77807
Munich Re Grp 0.1% 10 1.09704
Total for 15 Insurers with the most hurricane complaints 609
Total Hurricane Homeowners Complaints 691
Total Hurricane Complaints as of Jan. 11 873

Sources:

Louisiana Insurance Commissioner’s Hurricane Claims Complaint Index.

GOOD FAITH CLAIM SETTLEMENT PRACTICES AND POLICYHOLDER SERVICE OBLIGATIONS

 

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