Claims News Service, Nov. 20, 3:55 p.m. EST -- Louisiana Citizens Insurance Corp. approved a payout of $35 million to settle a class action lawsuit filed by policyholders in the aftermath of Hurricane Katrina.
According to a report by the Associated Press, the lawsuit alleged that the firm took too long to pay off policyholders' claims after the 2005 hurricane season that rocked Louisiana.
The settlement could get its final approval in a Dec. 15 hearing before Louisiana District Judge Kern Reese. Depending on how many claimants are approved to join the lawsuit, roughly 30,000 claimants could get up to $1,000 each.
This potential settlement would not solve all of Citizens' legal woes, as other lawsuits filed by policyholders who argue the firm paid too little on their claims from hurricanes Katrina and Rita will still go on.
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