Liberty Mutual owes approximately $4 million to about 138,000 Louisiana policyholders after overcharging the Louisiana Property Insurance Corporation Emergency Assessment for the past four years, Insurance Commissioner Tim Temple said.

Temple said the Louisiana Department of Insurance received a consumer compliant in February about the Louisiana Citizens assessment charged on their Liberty Mutual renewal notice. LDI reached out to Liberty Mutual and discovered that due to an error, the company had not updated the assessment percentage since 2021.

“Last month we learned of an unintended clerical error in how we applied the Louisiana Citizens assessment percentage to residential property insurance policies from 2021-2025,” a Liberty Mutual spokesperson said. “We regret the error, and we are working closely with the Louisiana Department of Insurance on a plan to refund impacted customers as quickly as possible.”

Temple said LDI will monitor Liberty Mutual’s repayments to ensure policyholders receive full funds.

“I have spoken with Liberty Mutual about the issue, and they told me they corrected the error and will send refunds to all active and inactive policyholders that were impacted,” Temple said.

LDI implemented an emergency assessment on insurers pay off bonds for debt Louisiana Citizens incurred from claims for hurricanes Katrina and Rita in 2005. The assessment, which applies to all residential and commercial property policies, has been gradually lowered over the years. Earlier this year the Louisiana Citizens Board of Directors voted to end the assessment in April.

Liberty Mutual has adjusted the assessment charge to 0% effective April 1 for all affected policyholders. Former or current Liberty Mutual policyholders who have questions about a refund should contact the company or their agent, LDI said.

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Louisiana