Released: May 17, 2006

Commissioner of Insurance Jim Donelon announced today the Department of Insurance is set to begin market conduct examinations on two insurers. Donelon says he ordered the exams in response to consumer complaints lodged with the Department of how the companies handled homeowners insurance claims filed as a result of Hurricanes Katrina and Rita.

"Following an internal evaluation, a review of company complaint-to-marketshare ratio and other factors, the Department will initially examine how these two homeowners insurers handled policyholder claims filed in the aftermath of Hurricanes Katrina and Rita," says Donelon.

The two insurers to be examined by the Department are:

• Allstate
• St. Paul/Travelers

Following the market conduct reviews of Allstate and St. Paul/Travelers, Commissioner Donelon says the Department will then examine the Louisiana Citizens Property Insurance Corporation (Citizens). Citizens is the administrator of the FAIR and Coastal Plans, the state's high risk homeowners insurance pools. Commissioner Donelon says the number of companies under examination could increase, based on similar criteria.

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