NU Online News Service, Jan. 6, 2:44 p.m.EST

Louisiana Citizens Property Insurance Corp. does not think thestate Supreme Court addressed all of the issues it should havebefore reinstating what now is a judgment of more than $100 millionfor policyholders.

The state-run insurer of last resort ended 2011 with the badnews—a ruling from the state's highest court that reinstated theaward overturned by an appeals court. Each policyholder in theclass could get $5,000 each plus interest.

The insurer is asking the Supreme Court to reconsider itsdecision.

Citizens has been accused of failing to start theclaims-adjusting process with the timeframe set by law followinghurricane Katrina and Rita in 2005.

Insurance Commissioner Jim Donelon called the ruling a “potentiallydevastating event.”

The insurer “feels the Supreme Court did not answer all thequestions presented to it [but] rather just issued an opinionconfirming the ruling by the trail court judge that his allowanceof $5,000 per claimant was permitted,” says Richard Robertson,chief executive officer of Citizens, in an email.

“[The court] did not address several items, including aconstitutional issue raised by us and the state attorney generalconcerning the ability to impose a penalty without any showing ofbad faith or conduct on the part of the insurer,” he adds.

Citizens plans to file supporting documents on Jan. 10 and hopesto have “a favorable ruling from the court as soon as they reviewour request.”

Citizens avoided having to post a bond to pay the originaljudgment while it appealed the case. Now, unless the state SupremeCourt reconsiders, all property-insurance policyholdersinLouisianacould be footing the bill because Citizens has theability to levy assessments.

Donelon says the worst-case scenario is that Citizens' maximumexposure to the decision is $200 million, if other eligiblepolicyholders emerge.

Donelon says he is not opposed to policyholders getting $5,000if they deserve it, but each should have to go to court to get theamount determined instead of an overall blanket judgment for all.He says private insurers faced similar class-action lawsuits butthey were not deemed applicable for class-action status.