Folks we’ve covered the entire sad state of affairs at Louisiana Citizens Insurance, which adjusted its post Katrina claims in bad faith and has been trying avoid the consequences of such literally since the early days after the storm. The latest developments unfolded Monday with Becky Mowbray filing this short and not so sweet story that Citizens has exhausted its appellate remedies and the Plaintiff’s lawyers in the class action bad faith case could seize over $100MM from Citizens’ bank accounts. Sadly Louisiana Insurance Commish Jim “Jimbo the Clown” Donelon remains in denial and this is not good financially for the rate paying public in Louisiana as Ted Griggs at the Advocate explains:
Insurance Commissioner Jim Donelon vowed to continue the fight, while plaintiffs’ attorneys said it’s time for Citizens to pay policyholders.
“We will proceed immediately to complete the seizure and collect the judgment, and we will also move quickly to set the pending claims for hearing before the trial court,” attorney Fred Herman, who represents the policyholders, said in a news release…….
“Our lawyers are urging us to continue the appeal to the U.S. Supreme Court, and we have another state court initiative in mind, as well,” Donelon said.
I’ll again point out this is standard jackassery for Donlon, who is facing the specter that the state’ insurer of last resort is insolvent, which condition Donelon evidently has no contingency plan to rectify. With reserves depleted, the best Donelon can hope for is a quiet hurricane season such as the one forecast for 2012. That said the last time we had such a quiet hurricane season Hurricane Andrew hit the Louisiana coast so even that may not be enough.
We’ll be keeping an eye on this story.