Reversing an earlier decision, New Jersey’s Department of Banking and Insurance announced that it will allow the exclusion of coverage for toxic mold from policies offered by the State’s surplus lines insurers.
The move was applauded by the NAII, which had expressed earlier concern that new jersey was the only state prohibiting mold exclusions on surplus lines insurers as part of its form requirements.
Michael Koziol, A senior Director and Counsel for the NAII applauded the decision. “Surplus lines insurance is meant to provide coverage that is unavailable in the standard market for unique risks or particular needs of consumers and businesses,” he stated. “To achieve that purpose, surplus lines carriers must be free to exclude any coverage that otherwise would make insurance unavailable, which could well be the case for mold coverage.”
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