NAII Expresses Disappointment on RI Mold Regs for Personal Lines

The National Association of Independent Insurers expressed its disappointment at the recent position adopted by the Rhode Island Department of Business Regulation (DBR) 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,” stated Gerald L. Zimmerman, NAII senior counsel.

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.