Legislation to bar insurers from ending homeowners insurance coverage when a policyholder files a claim based on tainted Chinese-made drywall has been signed into law by Louisiana Gov. Bobby Jindal (R). The new law will prohibit insurers from canceling or refusing to renew policies for homes because of Chinese-made drywall, which has been blamed for corrosion and health concerns. Insurers won't be prohibited from raising premiums or deductibles. The new law would still allow insurers to increase premiums on the policies of those who file drywall claims, would allow companies to cancel or not renew a policy if factors other than the drywall problem are also present and only applies to residential properties. The bill had been amended to diminish opposition from insurers.  Drywall was imported from China between 2004 and 2007.

Ban on Chinese Drywall Cancellations (Insurance Journal 7/12/10)

July 13, 2010