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LDI: Five insurers could be facing fines following potential “improper activity” after 2020 hurricanes

Buildings and homes are flooded in the aftermath of Hurricane Laura Thursday, Aug. 27, 2020, in Cameron, La. (AP Photo/David J. Phillip)

BATON ROUGE, La. (BRPROUD) – Three hurricanes made their way through Louisiana in 2020.

Hurricanes Laura, Delta and Zeta left a lot of damage in their wake.

In the aftermath of these hurricanes, ‘adjuster churning’ left many policyholders frustrated and unable to get a settlement.

The Louisiana Department of Insurance took a look at potential improper activity by insurers after the hurricanes.

As a result of that, Insurance Commissioner Jim Donelon is proposing a fine for five homeowners insurance companies.

According to the Louisiana Department of Insurance, “Insurance Commissioner Jim Donelon has proposed fining five homeowners insurance companies a combined $764,750 following targeted market conduct examinations of their insurance activities between August 27, 2020, and June 30, 2021, a period in which hurricanes Laura, Delta and Zeta made landfall in Louisiana.”

The five companies that could be fined are listed below:

The Louisiana Department of Insurance states that “the five examinations found 44 instances of improper activities and/or business practices that were noncompliant with the Louisiana Insurance Code.”

So what can you do if you think your insurer is treating you unfairly?

Commissioner Donelon recommends that you contact LDI Office of Consumer Services at 1-800-259-5300, option 3, or got to ldi.la.gov/fileacomplaint and file a complaint.

If you have concerns about an insurance-related transaction, contact the LDI Insurance Fraud Division at 225-342-4956 or 1-800-259-5300.

“The devastation and impact of the 2020 hurricane season was overwhelming, but that doesn’t excuse the activities we discovered in our market conduct examinations of these five insurers,” said Commissioner Donelon. “I strongly encourage our state’s insurance industry to take note of the unacceptable behavior we found and know we will continue to pursue appropriate fines and regulatory action against any insurer that is not meeting their obligations.”