2019 Cease and Desist Order Upheld

In 2019, The Louisiana Insurance Commissioner Jim Donelon issued a cease and desist order to State Farm Insurance company for applying hurricane deductibles when application of that deductible was inappropriate. A consumer had made a complaint to the department about a deductible being applied for a storm that became Hurricane Barry, but the deductible was applied to damage that occurred before the storm was declared a hurricane. Upon review, the insurance department issued a cease and desist order which included in part the following: STATE FARM FIRE AND CASUALTY COMPANY is hereby ordered to CEASE AND DESIST from imposing a Hurricane Duration Deductible on claims made by Louisiana State Farm homeowners insurance policyholders for losses incurred during the period when policy language dictates a Hurricane Duration Deductible should not be imposed.