Law rules

Administrative Law Division rules in favor of LDI in Hurricane Barry franchise case at State Farm | News

The Louisiana Administrative Law Division recently ruled that Insurance Commissioner Jim Donelon was justified in his decision to prevent the State Farm Fire and Casualty Company (State Farm) from applying a hurricane deductible for certain losses caused by the Hurricane Barry in July 2019.

Commissioner Donelon issued the cease and desist order in August 2019 following an insured’s complaint that State Farm’s hurricane deductible was incorrectly applied to his claim. The commissioner’s action banned the application of a hurricane deductible for losses that occurred before 10 a.m. on July 13, 2019.

The Administrative Law Division found the commissioner’s order to be reasonable and the decision was made following an investigation by the Louisiana Department of Insurance (LDI) and extensive communication with State Farm.

“Protecting the rights of policyholders is at the heart of what we do, and I am happy that we have been able to succeed on their behalf,” said Commissioner Donelon. “The consumer complaints process is an essential part of the surveillance of the insurance market after natural disasters. Our Consumer Services staff devote a considerable amount of time and effort to their investigations, and I appreciate their dedication.

Anyone having problems with their insurance claim should file a complaint with LDI by going to www.ldi.la.gov/fileacomplaint or by calling LDI at 1-800-259-5300. LDI thoroughly investigates every consumer complaint and reminds all policyholders of the importance of reading and reviewing their insurance documents.

The Administrative Law Division’s decision is available here. State Farm has 30 days from the date the decision is signed / issued to appeal.

About the Louisiana Department of Insurance:

The Louisiana Department of Insurance works to improve competition in the state’s insurance market while helping individuals and businesses with the information and resources they need to be consumers of. informed insurance. As a regulator, LDI enforces laws that ensure a fair and stable marketplace and ensures that insurers comply with the laws in place to protect policyholders. You can contact LDI by calling 1-800-259-5300 or by visiting www.ldi.la.gov.