Citizen's Property Insurance has big legal bill to pay

POSTED: Thursday, August 20, 2009 - 10:14am

UPDATED: Thursday, June 3, 2010 - 11:58pm

Louisiana's state-backed insurance company faces a 95-million dollar legal bill, but the cost could trickle down to every property owner in the state.

A mass class-action lawsuit is going after the Louisiana Property Insurance Corporation's wallet.

Alleging that the 2005 Hurricane Katrina and Rita claims took too long to settle and in order for the Citizens Insurance Company to appeal, a Jefferson Parish Judge has mandated that they post a 95-million dollar bond.

If the money isn't paid by Tuesday, the company could be forced to charge Louisiana property owners a one time assessment fee to front the bill.