Travelers Settles with Louisiana Policyholders over Katrina/Rita Damage

Travelers Insurance announced a settlement with policyholders in Louisiana over property damage caused by Hurricanes Katrina and Rita.

The Hurricane Katrina-Travelers Settlement Administrator said the proposed settlement has been preliminarily approved in a class action lawsuit, Arthur v. The Standard Fire Insurance Co. and The Travelers Indemnity Co., No. 09-7332, by the U.S. District Court for the Eastern District of Louisiana.

The complaint alleges that Travelers’ handling of Katrina/Rita claims caused class members to receive fewer benefits than those to which they were entitled.

Travelers denies all claims and liability stated in the complaint but has agreed to establish a $2 million fund to settle the case.

Travelers also will pay separately attorneys’ fees and expenses, and the costs for notice and administration. Class counsel will request that the court award attorneys’ fees and expenses of $425,000, the Travelers announcement said.

Some class members will receive a detailed notice in the mail about the settlement and don’t need to do anything to participate. Class members who do not receive a notice in the mail must submit a claim by June 8, 2013.

Class members who wish to be excluded from the settlement must submit a written request postmarked by June 8, 2013. If they exclude themselves, they will not receive any money and keep the right to sue Travelers at their own expense.

Class members who do not exclude themselves give up the right to sue the insurer.

Class members who want to object but stay in the settlement must submit a written objection postmarked by July 3, 2013. If the settlement is approved and the objection is rejected, they will be bound by all court orders.