Liberty Mutual is set to refund about $4 million to around 138,000 policyholders in Louisiana due to an overcharge related to the Louisiana Property Insurance Corporation Emergency Assessment. This situation came to light after a consumer complaint was filed in February, prompting the Louisiana Department of Insurance to investigate.
Insurance Commissioner Tim Temple explained that Liberty Mutual had not updated the assessment percentage since 2021, leading to the overcharges. A spokesperson for Liberty Mutual acknowledged the mistake, describing it as an unintended clerical error. The company has since corrected the assessment percentage and is collaborating with the Louisiana Department of Insurance to ensure affected customers receive their refunds promptly.
Temple assured policyholders that the Louisiana Department of Insurance will oversee the repayment process to guarantee that customers receive the full amount owed to them. Liberty Mutual has already adjusted the assessment charge to 0% starting April 1 for all impacted policyholders.
The Louisiana Citizens assessment was originally implemented to help cover debts from claims related to hurricanes Katrina and Rita in 2005. Over the years, this assessment has been gradually reduced, and earlier this year, the Louisiana Citizens Board of Directors decided to end the assessment altogether.
Current and former Liberty Mutual policyholders who have questions about the refund process are encouraged to reach out to the company or their insurance agents for more information.