LDI Affirmed in State Farm Hurricane Barry Deductible Case

A Louisiana administrative hearings panel has ruled that Insurance Commissioner Jim Donelon was justified in preventing State Farm from enforcing a hurricane deductible for certain losses caused by Hurricane Barry in July 2019.

The Louisiana Division of Administrative Law (DAL) recently affirmed Donelon’s decision to issue a cease-and-desist order in August 2019 following a policyholder’s complaint that State Farm’s hurricane deductible was improperly applied to their claim. Donelon’s action prohibited the enforcement of a hurricane deductible for losses occurring prior to 10 a.m. on July 13, 2019.

Hurricane Barry made landfall in Louisiana in July 2019, causing approximately $600 million in damage.

tate Farm has 30 days from the date of signing/issuance of the decision to file an appeal.