The case began simply enough. The property at issue was insured under a homeowners policy held by Emma Bryan through Capitol Preferred Insurance Company, which had merged with Southern Fidelity Insurance Company. Hurricane Ida hit Louisiana on August 29, 2021, damaging the insured property. Emma Bryan’s children – Cynthia Bryan, Aubry Bryan Jr., Aunya Bryan, and Glenda Bryan – claimed entitlement to proceeds under the policy. Southern Fidelity paid $23,097.55 on March 1, 2022, an unconditional payment toward the claim. Then, on June 15, 2022, a Florida court placed Southern Fidelity into receivership, making it an insolvent insurer under Louisiana law. The Louisiana Insurance Guaranty Association (LIGA), which steps in to handle claims when an insurer fails, inherited the file.
