Louisiana Citizens Property Insurance Loses Overhead & Profit Case
Louisiana Citizens Property Insurance Company has settled a state class action case, Press v. Louisiana Citizens Fair Plan Property Insurance Corp., for failing to fully pay overhead and profit to insureds. The proposed settlement, for $23 million, covers claims from Hurricanes Katrina and Rita.
In Louisiana, overhead and profit (O&P) is to be paid when repairs involve three or more trades, to cover the expense of a general contractor to coordinate the work. The lawsuit contended the O&P should have been paid to insureds who handled their own contracting. O&P is usually an additional 20% of the repair bill.
Insureds that want to opt-in on the class action settlement must submit a claim form by October 20, 2010.
There is more information at the settlement Administrator's website on how to go about making a claim or opting-out.
A good number of insurance shoppers don't make good use of their state's department of insurance.