The Louisiana House of Representatives has amended and unanimously passed a bill which prohibits insurance companies from dropping or not renewing coverage for homeowners who have Chinese drywall in their houses. The vote was 95-0. The state Senate passed the bill in April. Representative Walt Leger of New Orleans, who handled the bill in the House, was successful in amending the legislation to have it apply only to homeowner policies and not commercial policyholders. Legislators also added an amendment allowing an insurer to raise rates on policyholders with Chinese drywall as part of an overall rate increases. Insurers violating the proposed law would be fined up to $15,000, a change from the original bill in which the fine would have been half of the dollar value of the home. The measure also states that if a company has canceled a policy or failed to renew it because of Chinese drywall, coverage has to be reinstated on the same terms and conditions in effect before the termination.

Chinese Drywall Bill Approved (New Orleans Times-Picayune 6/14/10)

June 15, 2010