Louisiana Insurance Commissioner Jim Donelon last week ordered insurers to give policyholders an additional year to go to court against them in disputes over damage claims from Hurricanes Katrina and Rita.
His decision was questioned by carriers, but Mr. Donelon, in issuing his Directive 199 on July 11, said Louisiana appears to be the only state in the country with a one-year limit for filing suit over property damage claims.
His notice orders insurance companies to file a stipulation with his department by Aug. 1, stating that any insured with a property and casualty insurance policy in Louisiana has until Aug. 30, 2007 to file suit or a legal action with regard to any claim for property damages caused by Hurricane Katrina, and until Sept. 25, 2007 for a Hurricane Rita claim.
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