Louisiana Citizens Fair Plan

July 18 2006

According to a class action lawsuit, Louisiana Citizens Fair Plan failed to comply with state law that requires the claims adjustment process to begin within 30 days of a catastrophic loss and that documented losses be paid within another 30 days. The lawsuit alleges that Louisiana's insurance plan of last resort failed to pay homeowner claims following hurricanes Katrina and Rita. More than 65,000 policyholders could be involved. The Citizens plan covered homeowners who could not obtain insurance in the commercial market.

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