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Liberty Mutual will refund roughly $4 million to round 138,000 Louisiana policyholders after overcharging them on a state-mandated insurance coverage evaluation, in accordance with Louisiana Insurance coverage Commissioner Tim Temple.

The overcharges stemmed from an error during which Liberty Mutual didn’t replace the Louisiana Residents Property Insurance coverage Company Emergency Evaluation share since 2021. The Louisiana Division of Insurance coverage grew to become conscious of the problem in February when a client criticism flagged an incorrect evaluation cost on a Liberty Mutual renewal discover.

Upon investigation, the LDI’s Workplace of Shopper Companies discovered that the corporate had not adjusted the evaluation as required.

“I’ve spoken with Liberty Mutual concerning the problem, they usually advised me they corrected the error and can ship refunds to all lively and inactive policyholders that had been impacted,” Temple stated. “The LDI will monitor the corporate repayments to make sure policyholders obtain all of the funds they’re due.”

The LDI is continuous to evaluate the circumstances surrounding the miscalculation to find out if additional regulatory motion is important. Nevertheless, Temple famous that the problem seems to be remoted to Liberty Mutual, and the division is working to substantiate that no different insurers have made related errors.

The emergency evaluation was initially carried out to assist Louisiana Residents repay bonds issued to cowl claims from hurricanes Katrina and Rita in 2005. Over time, the evaluation share has been regularly lowered, and in January, the Louisiana Residents Board of Administrators voted to formally finish the cost as of April 2024.

Liberty Mutual acknowledged that each one funds remitted to Louisiana Residents had been appropriately calculated and reported. The corporate has now adjusted its evaluation cost to 0% for affected policyholders as of April 1.

Former or present Liberty Mutual policyholders with questions on refunds are suggested to contact the corporate or their insurance coverage agent for additional particulars.