"La. Moves to Stop Home Policy Cancellations for Chinese Drywall"
National Underwriter (Property & Casualty - Risk & Benefits Management Edition) (04/28/10) Gusman, Phil

The Louisiana Senate recently passed SB 595, sponsored by Sen. Julie Quinn (R-Metairie), that would prevent insurers from canceling homeowners' and commercial property insurance due to Chinese drywall claims. The measure also prevents insurers from increasing premiums or not renewing insurance policies due to the presence of Chinese drywall or claims related to the material. Chinese drywall has become a problem for homeowners who claim that the product emits toxic fumes and corrodes wiring and fixtures. American Insurance Association (AIA) Associate General Counsel Eric M. Goldberg says, "[The bill] restricts insurers' ability to manage their exposures." Homeowners have the option of seeking coverage in the state's residual market, he notes. Goldberg urges the government to more closely monitor the import of foreign goods. He says the pattern of expecting insurers to pay to fix problems related to unregulated, defective building products imported into the United States must be addressed.

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