Connecticut Issues Mold Guidelines for Insurers

August 29, 2002

The National Association of Independent Insurers (NAII) is pleased that the Connecticut Department of Insurance (DOI) took the lead and developed a uniform approach for insurers on the issue of mold and homeowners insurance.

The DOI recently issued guidelines for form filings that propose to limit or exclude coverage for mold. All companies must withdraw and re-file any forms, rates or rules that do not conform to these guidelines.

“NAII worked closely with others in the industry, encouraging the Department of Insurance to take the right approach on this issue and develop guidelines that would be clear and consistent,” said NAII Senior Counsel Gerald L. Zimmerman. “We applaud their timely response in putting the guidelines together and we appreciate them for seeking input from the industry.”

Zimmerman said that although NAII generally supports the guidelines, it is disappointed that the in the coverage limit amounts remained at $10,000 for first-party coverage and $50,000 for third-party coverage. “In particular, we believe the third-party limit is too high and will serve as a magnet for the plaintiff’s trial bar,” he added.

“NAII believes lower amounts for each of the coverages would have been prudent. However, the DOI tracked the Insurance Services Office’s (ISO) filing and DOI’s initial drafts were even higher,” Zimmerman said. “Overall we are pleased with the guidelines and will continue to work with DOI on all issues related to mold.”

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