The Rhode Island Department of Business Regulation (DBR) has adopted the position that third-party liability arising from a mold filing cannot be excluded from a personal lines insurance policy, although exclusions will be allowed for commercial lines insurers.
“Although the DBR’s recent bulletin on mold is primarily based on the ISO filing, the $50,000 third-party limit is disappointing, especially since 33 other states have approved filings that allowed third-party exclusions,” Gerald Zimmerman, senior counsel for the National Association of Independent Insurers (NAII), commented.
The bulletin also contains a minimum policy limit of $10,000 for remediation for personal lines and $15,000 for commercial lines.
“We hope that the DBR will consider amending the bulletin and follow the lead of most states by permitting a third-party exclusion for mold on personal lines policies,” Zimmerman added.
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