A bill prohibiting insurance companies from dropping or not renewing both homeowners and commercial clients who file claims over Chinese drywall will now move to the full Louisiana House of Representatives.

Julie Quinn

The House Insurance Committee rewrote SB 595, sponsored by Sen. Julie Quinn (R-Metairie), meaning if the measure passes the entire legislative body it returns to the Louisiana Senate, which approved the original version in April, according to the New Orleans Times-Picayune.

Louisiana is one of several states, including Florida and Virginia, dealing with the aftermath of drywall imported from China that has resulted in medical issues with residents and damage to wiring and pipes in homes.

According to the Times-Picayune, the insurance industry attempted several amendments to Quinn’s bill, including one stripping the requirement that insurers reinstate a dropped policyholder within 30 days at the same conditions existing before the termination.

In its current form, the bill prohibits an insurer from canceling or failing to renew a policy, “based solely on the presence of installed drywall” that came from China prior to Dec. 31, 2009.

Quinn’s bill originally included a penalty for non-compliant companies in the form of a fine matching half of the value of the insured property.

Under the current bill, terms of the legislation, if approved, would end July 1, 2013.