CHEYENNE, Wyo. (AP) - A bill designed to protect homeowners from losing their insurance was cleared by a committee Tuesday, but not before it was amended to address industry concerns.

The bill (HB 40) would prohibit cancellation of a policy because of inquiries or claims for damages caused by natural disasters.

Responding to insurance industry representatives who said the bill's unintended effect would be to raise insurance rates, members of the Senate Corporations, Elections and Political Subdivisions Committee made two amendments before voting unanimously in favor of the bill.

One of the amendments was to prohibit insurance companies from refusing to renew policies for homeowners who submit one claim from natural causes in three years, down from three claims in three years.

The committee also increased the time insurance companies would have to cancel an agreement to provide insurance from 25 business days to 45 calendar days.

Both amendments were compromises.

Industry representatives asked the committee to eliminate requirements for companies to continue insuring property after natural disaster claims are processed. They also proposed extending the time for canceling an insurance binder to 60 days.

The bill advances to the Senate floor.

AP-WS-02-24-04 2208EST