I 111th CONGRESS 1st Session H. R. 4094 IN THE HOUSE OF REPRESENTATIVES November 17, 2009 Mr. Melancon introduced the following bill; which was referred to the Committee on Financial Services A BILL To prohibit insurers from canceling or refusing to renew homeowners insurance policies because of the presence of certain types of drywall in the home.

1.

Short title

This Act may be cited as the Drywall Victims Insurance Protection Act of 2009.

2.

Prohibition of canceling or declining to renew homeowners insurance because of presence of certain drywall

It shall be unlawful for any insurer— (1)to cancel, or decline to renew, any coverage for homeowners’ insurance for any single-family housing based on the presence, or possibility of presence, in the housing of any drywall that has a covered characteristic; or (2)in any renewal of homeowners’ insurance for such a structure, to discriminate in the amount, rates for coverage, or other terms of such coverage based on the presence, or possibility of presence, in the structure of any drywall that has a covered characteristic.

3.

Private cause of action

(a)

In general

An insured who has been adversely affected by a violation of section 2 by an insurer may bring a civil action against the insurer in an appropriate Federal or State court for relief under subsection (b). (b)

Relief

Upon proof of a violation of section 2 by a preponderance of the evidence in an action described in subsection (a), the court may award appropriate legal and equitable relief, including temporary, preliminary, and permanent injunctive relief and compensatory damages. (c)

Attorneys’ fees and other costs

In any action or proceeding under this section, the court shall allow a prevailing plaintiff reasonable attorneys’ fee as part of the costs, and shall include any expert fees as part of the attorneys' fee.

4.

Definitions

For purposes of this Act, the following definitions shall apply: (1)

Covered characteristic

The term covered characteristic means, with respect to any drywall, that the drywall— (A)was imported from, or originated in, China at any time during the period consisting of calendar years 2004 through 2007; or (B)contains elevated levels of sulphur or strontium. (2)

Insured

The term insured means any natural person who has purchased coverage for homeowners’ insurance. (3)

Insurer

The term insurer means any entity, including any affiliate thereof, that is licensed or admitted to engage in the business of providing homeowners’ insurance in any State. (4)

Homeowners’ insurance

The term homeowners’ insurance means property and casualty insurance coverage against losses to single-family housing. (5)

Single-family housing

The term single-family housing means a residential real property (including individual units of condominium and cooperative structures) designed principally for the occupancy of from one to four families.