Louisiana Governor Bobby Jindal Signs SB 595 Prohibiting Insurers From Canceling or Nonrenewing Homeowners’ Policies Based on Presence of Chinese Drywall

Jul 20, 2010


On July 8, 2010, Louisiana Governor Bobby Jindal signed SB 595 into law.

Effective upon having been signed, SB 595 prohibits insurers from canceling or nonrenewing any homeowners’ insurance policy (regardless of whether it has been in effect for fewer than three years) based solely on the presence of installed Chinese Drywall in the policyholder’s property or the filing of a claim by an insured that is based on the presence of Chinese Drywall which, prior to December 31, 2009, was imported from, or manufactured in China.

SB 595 carries penalties of up to $15,000 for violations, plus attorneys’ fees and costs, including costs incurred by the homeowner in having the policy reinstated.  The law also provides that any insurer which has canceled or failed to renew a policy after an insured has made a claim due to the presence of Chinese drywall shall have 30 days from the effective date of the new law to reinstate the policy on the same terms and conditions that applied to the policy prior to the claim, or will be deemed to be in violation of the law.

SB 595 will sunset on July 1, 2013.

A copy of SB 595 as signed is attached for review.


Should you have any comments or questions, please contact Colodny Fass.



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