Law rules

– The division of administrative law rules in favor of LDI in the franchise case of State Farm Hurricane Barry


January 10, 2022

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.

Commissioner Donelon issued the cease-and-desist order in August 2019 following a policyholder’s complaint that State Farm’s hurricane deductible was incorrectly applied to his 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 am pleased that we have succeeded on their behalf,” Commissioner 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 having problems with their insurance claim should file a complaint with LDI by going to or 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.

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