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Commentary

Faulty Workmanship: A Legislative Issue?

Legislatures should stop trying to dictate how insurance contracts are interpreted.

By David D. Thamann | Updated on February 16, 2012

There is a continuing dispute over insurance coverage for damage claims arising out of defective construction. Courts around the country have offered decisions about coverage or the lack thereof; insurers have denied coverage and granted coverage; and agents have had to explain to insureds why the claim is not covered or have tried to convince insurers that coverage exists.

This is all standard operating procedure in the insurance business. What is disconcerting to the process is the insistence of state legislatures on passing laws dictating to courts how to decide faulty-workmanship cases.

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