Senate Bill 2240

AN ACT TO PROHIBIT INSURERS FROM CANCELLING OR FAILING TO RENEW ANY HOMEOWNERS INSURANCE POLICY BASED SOLELY ON THE PRESENCE OF INSTALLED CHINESE DRYWALL IN THE INSURED'S PROPERTY; TO PROVIDE PENALTIES FOR VIOLATIONS THEREOF; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. (1) No insurer shall cancel or fail to renew any homeowners insurance policy based solely on the presence of installed Chinese drywall in the insured'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, the People's Republic of China. Nothing in this section shall be construed to allow an insured to avoid its obligations under the terms of the insurance contract.

(2) Any insurer violating the provisions of this section shall be subject to a penalty to be imposed by the commissioner in an amount not to exceed Fifteen Thousand Dollars ($15,000.00) plus all attorney fees, expenses and court costs incurred by the homeowner in having the policy reinstated.

(3) Any insurer that has canceled or failed to renew a policy after an insured has made a claim due to the presence of Chinese drywall shall have thirty (30) days from the effective date of this act to reinstate the policy on the same terms and conditions that applied to the policy prior to the claim or shall be in violation of the provisions of this act.

(4) This section shall not amend, alter or affect binders that are used to bind insurance coverage temporarily pending the issuance of an insurance policy.

(5) The provisions of this section shall stand repealed on July 1, 2013.

SECTION 2. This act shall take effect and be in force from and after its passage.