Louisiana Governor Signs Ban on Chinese Drywall Cancellations

July 12, 2010

Louisiana Gov. Bobby Jindal has agreed to ban insurance companies from dropping coverage of homeowners who have found corrosive Chinese drywall in their homes.

Jindal’s office announced that the governor has signed the bill by Metairie Sen. Julie Quinn into law.

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, however.

Insurance industry lobbyists opposed the ban, arguing it violates existing contracts.

Quinn’s bill only deals with drywall that was imported from or manufactured in China before Dec. 31, 2009. Insurers found to be in violation will face a penalty of up to $15,000.

The law remains in effect until July 1, 2013.

Senate Bill 595 can be found at www.legis.state.la.us

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