NU Online News Service, July 12, 3:47 p.m. EDT
Louisiana Gov. Bobby Jindal signed into law a measure prohibiting insurance companies from dropping coverage of homeowners with Chinese drywall.
Gov. Jindal signed the bill, SB 595, into law on July 9. The bill, sponsored by Senator Julie Quinn, R-Metairie, was passed by the Louisiana legislature last month.
The bill once looked to prohibit commercial and homeowners insurers from dropping or canceling policies, but in its final version, SB 595 stops just homeowners insurers from failing to renew or dropping an insured due to the presence of Chinese drywall imported before Dec. 31, 2009.
Another amendment ensures the bill will not impact premium. Companies can raise rates on the affected homes if the increases are actuarially sound.
The law will expire July 31, 2013.
The Chinese-made drywall contains sulfur, which causes rotten egg-like smells in the home. The drywall has also been found to cause corrosion to metal such as copper pipe and wiring.
The drywall is also alleged to have caused health problems among homeowners.
As of the end of June, the U.S. Consumer Product Safety Commission (CPSC) had received 3,418 incident reports related to the drywall–90 percent of which were from Florida, Louisiana, Mississippi, Alabama and Virginia.
To date the CPSC said it has spent more than $5 million to investigate the chemical nature and the chain of commerce associated with the drywall. The CPSC has also issued remediation techniques and guidance to homeowners.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.