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Georgia, Mississippi the Latest to Address General Liability Insurance Crisis - 5/24/2004 - Insurance Lawyers Taxes

Georgia, Mississippi the Latest to Address General Liability Insurance Crisis

On May 13, Governor Sonny Perdue put his signature on Senate Bill 563, adding Georgia to a list of 21 states that have notice and opportunity to repair laws. The Georgia law, which requires home owners to give builders a chance to fix construction defects before they are brought into a lawsuit, is an important first step in making general liability insurance more affordable and readily available for builders.

 

The Home Builders Association of Georgia advocated this bill in conjunction with builder licensing legislation, which also has been signed into law.

“We promoted these bills as legislation to benefit consumers,” said Ed Phillips, the association’s executive vice president. He said the new laws will also “help good builders establish a process for resolving defects that is up-front and effective for consumers” and potentially reduce general liability insurance rates for his members.

 
 

Mississippi Improves Home Warranty Act

The Home Builders Association of Mississippi also worked this session to improve the state’s builder liability climate. Earlier this month, Governor Haley Barbour signed Senate Bill 2638, legislation adding notice and opportunity to repair provisions to the state’s home warranty act.

The amended act requires home owners to notify builders when a construction defect is discovered and give them the chance to repair it. The bill also adds mold damage to the state’s list of warranty exclusions.

Notice and Opportunity to Repair Legislation Progresses Throughout U.S.

Legislation is active in several other states, including:

  • Missouri and Hawaii: Both states have new notice and opportunity to repair legislation awaiting action by their governors.
  • Arizona and Alaska: Builders associations in both states successfully pushed legislation to strengthen notice and opportunity to repair laws that have been in place since 2002 and 2003, respectively.
  • Washington: Capping off a three-year effort, Governor Gary Locke recently signed a bill that enhances the state’s current notice and opportunity to repair law and contains special provisions for condominium construction.
  • Florida: A bill to enhance the state’s existing notice and opportunity to repair law is sitting on the governor’s desk awaiting action.
  • Alabama, California, Illinois, Ohio, Pennsylvania and South Carolina: These states still have bills active in their legislatures. Additional coverage will follow as these bills advance.

For information on a specific bill or law, contact your state lobbyist. For answers to general questions on notice and opportunity to repair legislation, e-mail Sam Leyvas or call him at 800-368-5242 x8326.

 


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