It seems that lately, more and more insurance departments are taking closer looks at insurance company actions in response to consumer complaints or regional catastrophes that impact the industry. Recently, the Louisiana Department of Insurance announced that Commissioner Donelon issued a cease and desist order against State Farm Fire and Casualty for applying a Hurricane Duration Deductible outlined in their homeowners policies when application of that deductible was inappropriate.

 The policy language states that the deductible applies to certain damages that occur during a Hurricane Duration and result from a storm system that triggered the duration. The storm must have obtained hurricane status as classified by the National Weather Service within 48 hours before causing damage or after first causing damage as long as hurricane status was designated while a hurricane watch or warning was in effect in the state. A Hurricane Duration period starts when a watch or warning is issued by the weather service.

 The consumer complaint centered around damages an insured sustained before Hurricane Barry was declared a hurricane; apparently State Farm denied the insured's claim, and the insured filed a complaint with the department.