Donelon issues cease-and-desist order against State Farm
BATON ROUGE, La. (AP) - Louisiana Insurance Commissioner James Donelon has issued a cease and desist order against State Farm in a dispute over hurricane deductibles before Hurricane Barry.
The state Department of Insurance received a complaint July 17 from a policyholder who claimed the company was requiring a hurricane deductible for losses that happened before the storm was declared a hurricane July 13. Donelon says State Farm claimed it would impose a hurricane deductible on losses rather than a less expensive out-of-pocket deductible known as "all peril."
The average all peril deductible is between $500 to $1000. On average, hurricane deductibles are between 2% and 5%, which could cost policyholders more out of pocket before insurance kicks in to pay for damages.
The Advocate reports State Farm has 30 days to appeal the order.
Desktop NewsClick to open Continuous News in a sidebar that updates in real-time.
Southern Jaguars return to Mumford Stadium for only home game of the...
Mary Bird Perkins employee raises $50k in fight against cancer after running...
Louisiana Marathon returns to downtown Baton Rouge
Les Miles placed on leave
LSU making decisions to better handle sexual abuse allegations