Louisiana Citizens Policyholders Receiving Application Refunds

March 26, 2014

Policyholders of Louisiana’s property insurer of last resort have begun receiving refunds for application fees that were charged to them without their knowledge, the state insurance department announced.

The refunds for Louisiana Citizens Property Insurance Corporation (Citizens) policyholders are being paid pursuant to a written order issued by Insurance Commissioner Jim Donelon.

According to the commissioner’s order, the declaration page of the policy did not disclose or specify the fee. The application fees are being paid by Citizens, along with attorney fees set by the 19th Judicial District Court.

The $40 checks have been issued to 233,868 policyholders and are accompanied by a letter from Rust Consulting Inc., which is handling distribution of the funds.

“Citizens property insurance policyholders recently started receiving letters and checks in the mail for this application refund and many are calling us and Citizens to verify that the refund is legitimate. I want to assure policyholders that they are in fact legitimate and are being issued due to a court order,” Donelon said.

Source: Louisiana Department of Insurance