Louisiana Citizens Property Insurance Corp. (“Citizens”) has appealed to the United States Supreme Court over an award of $104.6 million to thousands of its Louisiana policyholders. Citizens is the insurer of last resort in Louisiana, which means that Citizens insures homeowners in Louisiana that cannot get private insurance due to high risk. The large judgment against Citizens is due to slow and delayed adjustment of hurricane claims for Louisiana policyholders in 2005.
The appeal came on the heels of an order that was issued to the East Baton Rouge Parish Sheriff to seize money from Citizens’ bank account. According to the plaintiff attorney – the judge was planning to divide the money amongst the prevailing policyholders after the money was turned over by Citizens’ bank. At this point, it is not yet certain whether the United States Supreme Court will accept or reject the appeal.
In Texas, insurers must also comply with certain deadlines with regards to claims by their policyholders. The Texas Insurance Code contains specific deadlines that the insurers must meet, or suffer steep penalties. Insurers that wrongfully deny or underpay claims can be held liable for the amount of the claim, penalties and interest, and attorney fees of the policyholder in asserting the claim and suit.
If you or someone you know has been wrongfully denied coverage under an insurance policy, contact the attorneys at Abraham, Watkins, Nichols, Agosto, Aziz & Stogner by calling 713-396-3964 or 800-594-4884.