Law rules

Division of administrative law rules in favor of LDI in case of franchise

A truck maneuvers around this downed tree after strong gusts of wind dropped it in western Morgan City, La. Saturday morning, July 13, 2019. Most residents stayed off the roads as they were preparing for the rains from Hurricane Barry. (AP Photo/Rogelio V. Solis)

BATON ROUGE — From the Louisiana Department of Insurance:

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

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

The Administrative Law Division found that the commissioner’s order was reasonable and that the decision was made following 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’m glad we were able to achieve success on their behalf,” Donelon said. “The consumer complaints process is an essential part of monitoring the insurance market after natural disasters. Our consumer services staff devote a great deal of time and effort to their investigations, and I appreciate their dedication. »

Anyone who has trouble with an insurance claim should file a complaint with LDI by going to 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 decision of the Administrative Law Division is available here. State Farm has 30 days from the date the decision is signed/issued to appeal.