FOR IMMEDIATE RELEASE

February 1, 2022

Commissioner Donelon Fines Lyndon Southern Maximum Amount Following Market Conduct Exam

Insurance Commissioner Jim Donelon has fined auto insurer Lyndon Southern Insurance Company the maximum amount of $350,000 after a comprehensive market conduct examination found 32 instances of improper activity and/or business practices that were noncompliant with the Louisiana Insurance Code.

The Louisiana Department of Insurance (LDI) performed the market conduct examination of Lyndon Southern’s activities after LDI’s Office of Consumer Services began receiving a high number of complaints that pointed to trends of potential misconduct. Violations were found in the areas of operations and management, complaint handling, underwriting and rating practices, and claims handling. A full description of the violations can be found in the fine notice.

“The frequency and severity of violations committed by this company warranted the highest monetary penalty allowed under our law,” said Commissioner Donelon. “This insurer’s unacceptable behavior came to our attention via the policyholders who reached out to us with their concerns.”

As a result of the department’s investigation, Lyndon Southern was fined $250,000 for unfair or deceptive acts and practices and $100,000 for other violations of the Insurance Code for a total of $350,000 in fines — the maximum possible amount under Louisiana law. LDI’s investigation covered the company’s activities between Jan. 1, 2015, and July 31, 2018. The company did not appeal the department’s findings, and the fines were paid in full. Lyndon Southern is an admitted private passenger auto insurer that has been licensed in Louisiana since Sept. 19, 1997.

Anyone concerned that their insurer is not treating them fairly should contact the LDI Office of Consumer Services at 1-800-259-5300, option 3, or file a complaint online at ldi.la.gov/fileacomplaint.

Commissioner Donelon also urges consumers who feel uneasy about any insurance-related transaction to call the LDI Insurance Fraud Division at 225-342-4956 or 1-800-259-5300. If callers do not want their names used, they can request that their involvement be kept confidential.

About the Louisiana Department of Insurance: The Louisiana Department of Insurance works to improve competition in the state’s insurance market while assisting individuals and businesses with the information and resources they need to be informed consumers of insurance. As a regulator, the LDI enforces the laws that provide a fair and stable marketplace and makes certain that insurers comply with the laws in place to protect policyholders. You can contact the LDI by calling 1-800-259-5300 or visiting www.ldi.la.gov.