BATON ROUGE, LA – Liberty Mutual owes approximately 138,000 Louisiana policyholders a total of $4 million after overcharging for the Louisiana Citizens Property Insurance Corporation Emergency Assessment over the past four years, according to Louisiana Insurance Commissioner Tim Temple.
The Louisiana Department of Insurance (LDI) discovered the issue in February 2025 when a consumer filed a complaint regarding the assessment charge on their Liberty Mutual renewal notice. Upon investigation, the LDI Office of Consumer Services found that Liberty Mutual had failed to update the assessment percentage since 2021 due to an internal error.
Refunds on the Way
Liberty Mutual has since acknowledged the mistake and corrected the assessment percentage. The company has committed to refunding all affected active and inactive policyholders.
“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,” said Commissioner Temple. “The LDI will monitor the company repayments to ensure policyholders receive all the funds they are due.”
The LDI is currently investigating whether additional regulatory action is warranted. Officials believe this was an isolated incident but are working to confirm that no similar errors have occurred with other insurers.
Background on the Emergency Assessment
The Louisiana Citizens emergency assessment was introduced to help pay off bonds for debt Louisiana Citizens incurred after Hurricanes Katrina and Rita in 2005. Over time, the assessment was gradually lowered, and in January 2025, the Louisiana Citizens Board of Directors voted to end the assessment entirely by April 2025.
Liberty Mutual has confirmed that all payments remitted to Louisiana Citizens were calculated and reported correctly. The company has now adjusted the assessment charge to 0% effective April 1, 2025.
What Policyholders Should Do
Current or former Liberty Mutual policyholders who have questions about their refunds are encouraged to contact the company or their insurance agent.
For more information, Louisiana residents can contact the Louisiana Department of Insurance (LDI) via:
- LDIConnect mobile app (available on Apple App Store & Google Play)
- Phone: 800-259-5300
- Website: www.ldi.la.gov