211 CMR, § 131.08 - Coverage for Premises Not In Compliance

(1) Companies that offer a liability insurance policy for any premises for which the owner has not obtained a letter of interim control or letter of compliance may exclude coverage for injury or damage which results from exposure to dangerous levels of lead in dwelling units. Such companies must offer the insured or prospective insured the opportunity to buy back the initially excluded coverage, subject to the limits contained in 211 CMR 131.08(2), at an additional cost to be determined pursuant to 211 CMR 131.10.

(2) The coverage that an insured or prospective insured may buy back pursuant to 211 CMR 131.08 must be offered at the same time that such insureds or prospective insureds are advised that the insurer intends to exclude coverage as permitted under 211 CMR 131.08(1). Insurers shall offer such buyback coverage with separate limits of at least $100,000 per occurrence for personal lines insurance on residential premises and at least $300,000 per occurrence for commercial lines insurance on residential premises. Notwithstanding the foregoing, if the general liability per occurrence limit of an insured's policy is less than $100,000 in the case of a personal lines policy, or less than $300,000 in the case of a commerciallines policy, then the insurer may provide lead poisoning liability coverage in accordance with 211 CMR 131.08 with a per occurrence limit of not less than the policy's general liability per occurrence limit. The foregoing separate minimumper occurrence limits shall not increase any aggregate limit or policy limit of liability of any policy of insurance which includes buyback coverage provided in accordance with 211 CMR 131.08. The limits of a policy written in accordance with 211 CMR 131.08 apply regardless of the number of units covered by such insurance.

(3) Buyback coverage elected within 30 days of receipt of an offer of such coverage shall be deemed effective on the inception date of the policy. Buyback coverage elected after 30 days of receipt of an offer shall be effective on the date of the request by the insured, unless otherwise agreed by the insured and the insurer.

Notes

211 CMR, § 131.08