Posted: Oct 31, 2013 8:31 AM by AP (MGN Online)
A state-run insurance company of last resort has settled the remaining claims in a class-action lawsuit tied to how it handled claims after hurricanes Katrina and Rita in 2005.
State District Judge Henry Sullivan gave final approval Wednesday to the settlement in which Louisiana Citizens Property Insurance Corp. will pay $4,500 to any remaining claimants. Each claimant will get about $3,000 after one-third is taken out to cover attorneys' fees.
It is not clear how many people will come forward to collect on the settlement and how much it will cost Citizens, which already paid out $108 million to roughly 18,500 claimants after Sullivan ruled against it last year.
Chief Financial Officer Steve Cottrell says Citizens has budgeted $40 million to handle any claims resulting from the settlement.