Donelon reminds insurance companies to respond to policyholders in timely manner

Published: Jul. 20, 2023 at 6:38 PM CDT
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LAKE CHARLES, La. (KPLC) - Louisiana Insurance Commissioner Jim Donelon issued a reminder Thursday to insurance companies that they have 14 days to respond to any inquiry or request from policyholders.

Donelon issued the directive a day after the Louisiana Supreme Court lifted a stay on lawsuits filed by Houston firm McClenny, Moseley & Associates (MMA).

Now that those cases can proceed, Donelon says insurers must communicate with policyholders previously represented by the firm.

MMA filed more than 1,400 last-minute cases related to Hurricane Laura.

Donelon said the firm has admitted to at least 856 fraudulent misrepresentations. He said the firm falsely told insurers they had been retained in cases when they did not represent the policyholders.

“MMA’s fraudulent behavior additionally included presenting demands for payment pursuant to the consumer’s insurance policy, directing the adjustment of those claims, and receiving and negotiating insurance settlement checks without the knowledge (and authority to do so) from the policyholder,” according to Donelon’s news release.

The firm’s Louisiana managing partner, Richard William Huye III, is currently barred from practicing law in Louisiana.

The Louisiana Department of Insurance has also fined the firm $2 million.