§ 42-128.1-9 - Insurance coverage.
SECTION 42-128.1-9
§ 42-128.1-9 Insurance coverage. –(a) The department of business regulation shall, by January 1, 2003, establisha uniform policy with regard to exclusion for lead poisoning and shall adoptany rules and requirements that may be necessary to assure the availability ofinsurance coverage for losses and damages caused by lead poisoning, inaccordance with the provisions of this chapter, which policy and rules shallapply to liability coverage available to property owners. The department ofbusiness regulation shall have the authority and is empowered, consistent withthe requirements of chapter 35 of this title, to promulgate rules andregulations, which shall enable it to compile and analyze data and to makedeterminations with regard to the availability of and rates for lead liabilitycoverage.
(b) Except as otherwise provided by this chapter, noinsurance company licensed or permitted by the department of businessregulation to provide liability coverage to rental property owners shallexclude, after October 31, 2005, coverage for losses or damages caused by leadpoisoning. The department of business regulation shall not permit, authorize orapprove any exclusion for lead poisoning, except as specifically provided forby this chapter, that was not in effect as of January 1, 2000, and allpreviously approved exclusions shall terminate October 31, 2005. As of November1, 2005, coverage for lead poisoning shall be included in the policy or offeredby endorsement, as set forth in this section.
(c) All insurers issuing commercial lines insurance policiesand personal lines insurance policies covering pre-1978 rental housing incompliance with: (i) the requirements of this chapter for lead hazardmitigation; (ii) with the requirements of chapter 24.6 of title 23 for leadsafe housing, within the state of Rhode Island; or (iii) relying on a validcertificate of compliance or conformance shall, effective November 1, 2005,include in the policy coverage for liability for injury, damage, or deathresulting from occurrences of lead poisoning in an amount equal to and no lessthan the underlying policy limits for personal injury/bodily injury coverageprovided under the policy so issued to a residential rental property owner. Theproperty owner shall, if requested by the insurer, present to the insurancecompany, either: (1) proof of certificate of compliance of an independentclearance inspection and of any affidavit of visual inspection required tomaintain the validity of the independent clearance inspection; (2) proof ofmeeting the mitigation standard in the form of a clearance exam showing thatlead hazards are mitigated; or (3) proof of abatement. This proof shall beprima facie evidence of compliance with the requirements of this chapter. Inany subsequent renewal, the insurer may require any continuing proof wheneverthe certificate is expiring, has expired, or is otherwise invalidated.
(d) For residential rental properties that have not beenbrought into compliance with the requirements for lead hazard mitigationpursuant to this chapter or for lead hazard reduction pursuant to chapter 24.6of title 23 or which do not have a valid certificate of compliance orconformance, effective November 1, 2005, for residential rental property ownerswho own or owned a substantial legal or equitable interest in one property andhave had no more than one un-remediated dwelling unit at which a child waspoisoned prior to November 1, 2005, and for residential property owners who ownor owned more than one property and have had no more than two (2) un-remediateddwelling units at which a child was poisoned prior to November 1, 2005, aninsurance company, which provides liability insurance to a residential rentalproperty owner, shall either offer lead liability coverage for bodily injury,which shall be equal to the underlying limits of liability coverage for theproperty, by endorsement, or shall assist the insured in placing lead liabilitycoverage through the program commonly known as the Rhode Island FAIR Planeither directly or through one of the insurance company's agents or brokers,and the Rhode Island FAIR Plan shall make available liability coverage fordamages caused by lead poisoning to the class of property owners described inthis subsection. If the insured seeks lead liability coverage with the FAIRPlan, the FAIR Plan may use reasonable underwriting guidelines, as approved bythe department of business regulation, to underwrite the property. Any propertyowner, who fails to remediate a property, after a notice of violationsubsequent to October 31, 2005, and any property which is not remediated afternotice of a violation subsequent to October 31, 2005, shall not be eligible toreceive an offer of coverage and shall be subject to cancellation andnon-renewal of that coverage if the property is not found to be in compliancewith the lead law within ninety (90) days of the date of issuance of the noticeby the director, or the housing resources commission, as applicable.
(e) Rates for lead poisoning liability coverage, as specifiedin subsections (c) and (d) of this section, shall be approved by the departmentof business regulation, notwithstanding any limits on rate approval authorityestablished by the provisions of chapter 65 of title 27 and subject to theprovisions of §§ 27-44-6 and 27-44-7, using the following standards:
(1) That they are not excessive, inadequate, or unfairlydiscriminatory;
(2) That consideration is given to:
(i) Past and prospective loss experience within the state ofRhode Island;
(ii) A reasonable margin for profits and contingencies;
(iii) Past and prospective expenses specifically applicableto the state of Rhode Island:
(iv) Any other data, including data compiled in other states,especially regarding experience data for lead liability coverage, that thedepartment may deem necessary; and
(v) Past history of the owner with regard to lead poisoningor any associated violations.
(f) The department of business regulation shall have theauthority and is empowered, consistent with the requirements of chapter 35 ofthis title, to promulgate rules and regulations to enable it to compile andanalyze data and to make determinations with regard to the availability of andrates for lead liability coverage. In order to effect the purposes of thissection insurers shall file, on or before October 1, 2004, the proposedlanguage of endorsements for lead liability coverage and the proposed rates forthat coverage with the department.
(g) All endorsements, rates, forms and rules for leadliability coverage approved by the department of business regulation to beeffective on or after July 1, 2004 are hereby extended to be effective November1, 2005. Prior to November 1, 2005, insurers and advisory organizations shallcontinue to utilize all endorsements, rates, forms and rules in effect on June30, 2004 for lead liability coverage. The department shall not approve any newendorsements, rates, forms or rules for lead liability coverage in pre-1978residential rental properties unless the filings are submitted in accordancewith the provisions of this act. The department is hereby authorized topromulgate reasonable rules and regulations to carry out the provisions of thissection.