Mold Bill Keeps on Growing
(originally published in Fall 2002)
The California State Senate has recently been debating a bill that would affect insurance coverage for mold damage. In February 2002, a bill was introduced in the Senate that would require property or liability insurance policies issued, amended, or renewed after January 1, 2003, to cover mold as an ensuing loss.
The bill would allow insurers to exempt mold only if the policy contains a clear exemption for mold losses. Beyond this, the bill would also require an insurance company and its personnel to disclose if mold is implicated, is likely to be present, or results from a claim. The insurance company and its personnel must also inform the insured when mold is reasonably believed to have ensued from a covered loss.
Because the bill is still in the review and approval process, it is subject to further amendments.
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