Liberty Mutual owes roughly $4 million to about 138,000 Louisiana policyholders after overcharging the Louisiana Property Insurance coverage Company Emergency Evaluation for the previous 4 years, Insurance coverage Commissioner Tim Temple stated.
Temple stated the Louisiana Division of Insurance coverage obtained a shopper compliant in February concerning the Louisiana Residents evaluation charged on their Liberty Mutual renewal discover. LDI reached out to Liberty Mutual and found that as a consequence of an error, the corporate had not up to date the evaluation share since 2021.
“Final month we discovered of an unintended clerical error in how we utilized the Louisiana Residents evaluation share to residential property insurance coverage insurance policies from 2021-2025,” a Liberty Mutual spokesperson stated. “We remorse the error, and we’re working carefully with the Louisiana Division of Insurance coverage on a plan to refund impacted prospects as rapidly as potential.”
Temple stated LDI will monitor Liberty Mutual’s repayments to make sure policyholders obtain full funds.
“I’ve spoken with Liberty Mutual concerning the challenge, they usually advised me they corrected the error and can ship refunds to all energetic and inactive policyholders that have been impacted,” Temple stated.
LDI carried out an emergency evaluation on insurers repay bonds for debt Louisiana Residents incurred from claims for hurricanes Katrina and Rita in 2005. The evaluation, which applies to all residential and industrial property insurance policies, has been step by step lowered through the years. Earlier this yr the Louisiana Residents Board of Administrators voted to finish the evaluation in April.
Liberty Mutual has adjusted the evaluation cost to 0% efficient April 1 for all affected policyholders. Former or present Liberty Mutual policyholders who’ve questions on a refund ought to contact the corporate or their agent, LDI stated.
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Louisiana
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