Louisiana Consumers Receive Additional $2.6 million in Insurance Claims Payments in First Half of 2012

Louisiana Consumers Receive Additional $2.6 million in Insurance Claims Payments in First Half of 2012

Insurance Commissioner Jim Donelon reports that insurance policyholders across the state have collected an additional $2.6 million in payments during the first six months of 2012. The recovered funds result from insurance claims disputes in which the Louisiana Department of Insurance (LDI) worked with insurance companies and consumers to recover funds in addition to the original amounts offered to consumers by their insurance companies.

“Many people may not realize that the knowledgeable staff at the LDI can help you determine when to file a complaint against a company, or help you resolve disputes with insurers,” said Insurance Commissioner Jim Donelon. “I encourage folks to continue to reach out to us for assistance in determining what options are available to them when they are unsatisfied with the resolution of a claim.”
Funds recovered are from formal complaints regarding property and casualty, health insurance, life and annuities, and consumer advocacy claims. Between January and June of this year, the LDI received nearly 7,000 inquiries and more than 1500 consumer complaints. A formal complaint involves communication from a member of the public, in which that person expresses a grievance or problem.

When a consumer contacts the department seeking information and does not express a grievance with a regulated entity, it is classified as an inquiry.

Information on inquiries, complaints and funds recaptured by each office is as follows:

Consumer Insurance Dispute Settlements (January 1-June 30, 2012)

Division/Office	Inquiries	Complaints Filed	Funds Recovered
Division of Life & Annuity	4593	238	$993,290.10
Office of Property & Casualty	1853	782	$1,090,523.89
Office of Health	435	456	$582,700.15
Office of Consumer Advocacy	54	9	$6,652.37
Total	6935	1485	$2,673,166.51

In total, over the course of 2011, the LDI received more than 13,000 inquiries, 3,400 complaints, and assisted consumers in receiving more than $5.3 million in additional insurance payments stemming from consumer complaints.

Consumers who feel they are not being adequately compensated for losses as stated in their insurance policies can contact LDI and request assistance and/or file a formal complaint either online or via a paper form. Department examiners review complaints from policyholders and contact the insurer to determine if the insurance company has honored the insurance policy and paid the consumer what they are due, according to the provisions of their policy.

Any insurance consumer in Louisiana who feels they have not been fairly compensated for their insurance claims can contact the LDI toll-free at 1-800-259-5300. Consumers may also file a complaint online at www.ldi.la.gov, by clicking on “Consumers” and then “File an Insurance Complaint.” The Property and Casualty Consumer Affairs Division may be contacted directly at 225-342-1258. The Office of Health may be contacted directly at 225-219-4770. The Division of Life and Annuity may be contacted directly at 225-342-1226. The Office of Consumer Advocacy may be contacted at 225-219-0619.

Consumers may also file a complaint by visiting LDI and meeting with an insurance specialist, who will help them with the process. Appointments are not required and LDI keeps staff members available between 8 a.m. and 4:30 p.m.

For information on consumer resources provided by the Louisiana Department of Insurance, you can access the online publication “How Can We Help You?” by clicking here.