New Orleans CityBusiness reports (http://bit.ly/Wg4SR5 ) per-claim settlement amounts were capped at
The state-backed nonprofit company provides property insurance to
Claimants sued over the pace that Citizens paid claims after the 2005 storms. Claims must be paid within 30 days once a claimant produces paper proof of a loss.
Robertson said the settlement is one of two expected to cost the company
Citizens chose to settle both suits in September, just months after paying a
Separately, the company is also beset by claims from last August's Hurricane Isaac that have risen above
Citizens reported an expected
Robertson said the company has anticipated the legal payments and should be able to build up more reserves in the absence of a significant storm in 2013.
The Citizens board voted against borrowing money to cover the shortfall at the January meeting. Alternate options include charging private insurers throughout the state an assessment for each property policy.
The company also proposed a 7.7 percent average statewide increase to homeowner's rates.
Information from: New Orleans CityBusiness, http://www.neworleanscitybusiness.com
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