(AP) — Insurance Commissioner Jim Donelon said Monday that he’ll support legislation to give the state’s “insurer of last resort” immunity against certain lawsuits, a proposal that could retroactively negate the firm’s payout if it loses its appeal of a $95 million class-action. Donelon said he’ll back such a bill in 2010 to protect Louisiana Citizens Property Insurance Corp. against lawsuits — past and present — that seek financial damages for failure to pay claims on time. Donelon said the Louisiana Insurance Guaranty Association, a state body that pays claims of failed insurers, enjoys a similar immunity. If passed and deemed constitutional, Donelon said such a measure could nix payouts in an existing lawsuit filed in Jefferson Parish. In it, Citizens is appealing a ruling that the state-backed firm must pay $95 million to 18,573 policyholders because their Hurricane Katrina claims were not settled quickly enough.- – – -Contact The Daily Reveille’s news staff at [email protected]
La. insurance commissioner seeks immunity against certain lawsuits
August 30, 2009