Mold Legislation Continues Growth in State Legislatures

March 11, 2003

State lawmakers around the country have been busy introducing a variety of bills aimed at the issue of mold, how it is addressed by society, and how it is covered by insurers.

“We are currently tracking nearly 30 bills under consideration in 14 states,” Kirk Hansen, the director of claims for the Alliance of American Insurers, commented. “We saw a lot of activity last year as mold hysteria reached its peak in media coverage and litigation. The Alliance was very successful in educating lawmakers and opposing several premature and ill-considered proposals.

“Fortunately, many state lawmakers and regulators wisely permitted insurers to exclude mold coverage or to place limits on coverage,” Hansen said. “So far, 39 states and the District of Columbia have approved limitations on homeowners policies.

“What we’re seeing this year is an effort by some lawmakers to require studies that determine acceptable exposure limits for mold or set air quality standards. The Alliance believes that it is premature to establish standards at this time since the science of how mold affects individuals is not well developed.”

Hansen said two particularly troublesome bills, in California and Nevada, could mandate coverage for mold and adversely affect the price consumers pay for insurance.

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