Louisiana Governor Bobby Jindal signed legislation that bans insurers from cancelling or non-renewing homeowners insurance coverage when a policyholder files a claim based on Chinese Manufactured drywall. As previously reported here, Louisiana state Senate Bill, SB 595, was sponsored by State Senator Julie Quinn (R-Metairie) and unanimously passed the Louisiana Senate on April 26, 2010.
The new law only applies to residential properties, permits insurers to increase premiums on the policies of those who file drywall claims, and permits companies to cancel or non-renew a policy if factors other than drywall are also present. The fine for violation of the act is $15,000 and the legislation is scheduled to sunset on July 1, 2013.