As the number of claims mount, insurers are in a scramble to manage risk management issues surrounding property/casualty coverage of faulty Chinese drywall. Yesterday, Louisiana became the first state to openly challenge insurers, passing a bill stopping insurers from increasing premiums or canceling homeowners and commercial property coverage because of such claims. The legislation, SB 595, sponsored by Senator Julie Quinn, R-Metairie, passed the Louisiana State Senate unanimously on Monday and now goes to the House Insurance Committee.
Insurers, meanwhile, are not sitting idly by. In a statement, Greg LaCost, AVP, state government affairs for the Property Casualty Insurers Association of America (PCI), said he was not surprised that the bill passed, but believes it “sends the wrong message” about how parties should proceed when addressing issues concerning Chinese drywall.
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