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State of Rhode Island and Providence Plantations
DEPARTMENT OF BUSINESS REGULATION
Division of Insurance
1511 Pontiac Avenue
Cranston, RI 02920
INSURANCE REGULATION 101
INSURANCE COVERAGE FOR LEAD POISONING
Table of Contents
Section 1 Authority
Section 2 Purpose and Applicability
Section 3 Definitions
Section 4 Policy Exclusions for Lead Poisoning
Section 5 Prospective Application and Notification to Insureds with Exclusions
Section 6 Insurance Coverage for Lead Poisoning in Compliant Properties
Section 7 Insurance Coverage for Lead Poisoning in Noncompliant Properties
Section 8 Limits of Coverage
Section 9 Rates for Coverage
Section 10 Information to be Filed with the Department
Section 11 Property Owners who are Ineligible for Lead Liability Coverage
Section 12 FAIR Plan
Section 13 Severability
Section 14 Effective Date
Section 1 Authority
This Regulation is promulgated pursuant to R.I. Gen. Laws §§ 42-128.1-9, 42-14-
17 and 42-35-3.
Section 2 Purpose and Applicability
The purpose of this Regulation is to establish a uniform policy regarding lead
poisoning coverage in pre-1978 residential rental property liability insurance and to set
forth requirements to assure the availability of insurance coverage for losses and damages
caused by lead poisoning.
This Regulation applies to liability coverage written by licensed carriers on all
pre-1978 residential rental properties. This Regulation does not apply to excess or
umbrella coverage or coverage written, pursuant to R.I. Gen. Laws § 27-3-38 through 42
and Regulation 11, by approved surplus lines insurers.
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Section 3 Definitions
1. “Act” means the Insurance Coverage portion of the Lead Hazard Mitigation Act
codified at R.I. Gen. Laws § 42-128.1-9.
2. “Compliant Rental Property(ies)” means any pre-1978 residential rental property
for which any one of the alternative methods of Prima Facie Evidence of
Compliance can be produced by the owner of the property.
3. “Department” means the Rhode Island Department of Business Regulation.
4. “Dwelling” or “Dwelling Unit” means an enclosed space used for living and
sleeping by human occupants as a place of residence, including but not limited to,
a house, an apartment, or condominium.
5. “FAIR Plan” means the basic property insurance and placement program
established by R.I. Gen. Laws § 27-33-1 et seq. and Insurance Regulation 15.
6. “Lead Liability” means the legal liability of owners of dwellings for losses to
third parties arising from exposure to lead.
7. “Lead Liability Coverage” means an insurance policy providing coverage to an
insured for that insured’s Lead Liability.
8. “Lead Poisoning” means a confirmed venous blood lead level measured in
micrograms of lead per deciliter of whole blood, established by rule of the Rhode
Island Department of Health.
9. “Liability Coverage” means any insurance policy providing coverage for the legal
liability of owners of Rental Properties for losses to third parties.
10. “Non-Compliant Rental Property(ies)” means any pre-1978 residential rental
property for which none of the alternative methods of Prima Facie Evidence of
Compliance can be produced by the owner of the property.
11. “Prima Facie Evidence of Compliance” means a certificate issued pursuant to the
provisions of R.I. Gen. Laws § 42-128.1-4.
12. “Rental Property(ies)” means pre-1978 premises containing dwelling unit(s) that
are let, leased or rented to person(s) for the purposes of living, sleeping, cooking,
or eating therein.
13. “Stand Alone Lead Liability Coverage” means an insurance policy which
provides coverage only for the legal liability of owners of dwellings for losses to
third parties arising from exposure to lead.
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14. “Surplus Lines Broker” means a person or corporation licensed by the
Department pursuant to R.I. Gen. Laws § 27-3-38 through 42 to place insurance
with approved surplus lines insurers.
Section 4 Policy Exclusions for Lead Poisoning
Any policy form approved by the Department prior to the effective date of this
Regulation which excludes liability coverage for Lead Poisoning, shall terminate on
October 31, 2005. As of November 1, 2005 if a liability policy is issued insuring a
Compliant Rental Property then coverage for Lead Poisoning shall be included in the
policy. Notwithstanding any other provision in this regulation, if a Rental Property is
Non-Compliant, coverage for Lead Liability may be excluded by an endorsement in
accordance with R.I. Gen. Laws § 42-128.1-9 and this Regulation, including a previously
approved endorsement that would otherwise be terminated by the first sentence of this
section.
Insurers and insurance producers are encouraged to insert mailers, produced and
made accessible in electronic format by the Housing Resources Commission or the
Department of Health, with renewal notices sent to insureds to which this Regulation
applies.
Section 5 Prospective Application and Notification to Insureds with Exclusions
1. This statute does not provide or contemplate a retrospective application and will
only be applied prospectively. Therefore, if an in-force policy has an approved
exclusion in place prior to October 31, 2005, this exclusion will remain in effect
until the expiration or other permissible termination of the policy. Any policy
issued, delivered or renewed after October 31, 2005 must follow R.I. Gen. Laws §
42-128.1-9.
2. If a policy issued prior to October 31, 2005 excludes coverage for lead liability
and the policy will not expire until after October 31, 2005, persons covered by
those policies will be able to obtain “stand alone” lead liability coverage from the
FAIR Plan beginning November 1, 2005. Therefore, all insurers that issued
policies with lead liability exclusions where the policy period will extend past
October 31, 2005 must provide written notification to insureds of the availability
of FAIR Plan coverage. The insurer shall provide this notification directly or
indirectly by the insurer through its producer. This written notice must be
separately sent to the insured not later than October 1, 2005 for policies which
have already been renewed or upon renewal of the policy prior to October 31,
2005. The notice shall be in at least 16-point type, clearly state that the policy
does not include lead liability coverage and that the insured is eligible for lead
liability coverage through the FAIR Plan unless otherwise ineligible. The notice
must provide information on how the insured can contact the FAIR Plan,
including the FAIR Plan's address and telephone number(s), including a toll free
number.
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Section 6 Insurance Coverage for Lead Poisoning in Compliant Properties
1. With respect to Compliant Rental Properties, insurers issuing commercial and
personal lines liability insurance policies covering Rental Properties are not
permitted to insure said Rental Property against liability risks and refuse to issue
Lead Liability Coverage if the property owner provides any form of Prima Facie
Evidence of Compliance as defined herein.
2. Subsection 1 above applies to all Compliant Rental Properties regardless of
whether the property owner was required to obtain Prima Facie Evidence of
Compliance or was exempted pursuant to R.I. Gen. Laws § 42-128.1-8.
Therefore, if an owner of an exempt Rental Property voluntarily obtains Prima
Facie Evidence of Compliance, the owner must be offered lead liability insurance
in the same manner as if the owner was required to obtain the Prima Facie
Evidence of Compliance pursuant to R.I. Gen. Laws § 42-128.1-8.
3. R.I. Gen. Laws § 42-128.1-9 does not restrict an insurer’s ability to establish and
utilize underwriting guidelines. An insurer may refuse to issue insurance for a
Rental Property even if the property owner provides any form of Prima Facie
Evidence of Compliance. Such refusal must be in accordance with the insurers’
underwriting guidelines, Section 6(1) above and not in violation of any other
insurance laws and/or regulations including but not limited to R.I. Gen. Laws §
27-29-1 et seq which restricts insurers from declining risks based upon age or
geographic location.
4. If the policy provides lead liability coverage and further provides that coverage
ceases during the policy term should the property become non compliant during
that period, insurers shall provide the following Notice on initiation and each
renewal of the policy. The Notice must be in at least 16-point type and must be
clearly identifiable by the insured. The written Notice shall provide the following
in the language below or in substantially similar language:
ADVSIORY NOTICE TO INSUREDS
Maintaining Proof of Compliance with the Lead Hazard
Mitigation Act
The lead liability coverage contained in this policy is issued based upon
your current compliance with the Lead Hazard Mitigation Act “Lead
Act”. This coverage is contingent upon your maintaining the property
in compliance with the Lead Act. Should the property become non-
compliant (i.e. your certificate becomes invalid) during the policy
period, coverage for lead liability will cease and will only be reinstated
if proper proof of compliance with the Lead Act is presented to the
insurer.
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It is your duty to notify the insurer of non-compliance. If the insurer
charged a premium for lead liability coverage the insurer will return
any additional premium paid with regard to the lead liability portion of
this policy during the non-compliant period. During the period of non-
compliance, you may be eligible for lead liability coverage through the
FAIR Plan. The FAIR Plan’s address and telephone number(s) are:
FAIR Plan, Two Center Place, Boston, MA 02108-1904; (800)-851-
8978
Section 7 Insurance Coverage for Lead Poisoning in Noncompliant Properties
1. With respect to Non-Compliant Rental Properties including exempted residential
rental properties as set forth in R.I. Gen. Laws § 42-128.1-8(e), an insurer issuing
commercial and personal lines liability policies may decline to insure the Non-
Compliant Rental Property against liability risks or may accept general liability
coverage but reject that portion of the risk related to Lead Liability Coverage.
2. If the insurer declines to issue coverage for Lead Liability, the insurer must assist
the insured in placing Lead Liability coverage through the FAIR Plan.
The insurer’s duty to assist the insured in placing the insurance through the FAIR
Plan may be accomplished by providing a written notice to the insured either
directly by the insurer or through one of the insurer’s own agents or brokers, in at
least 16-point type, clearly stating that the policy coverage does not include Lead
Liability and that the insured is eligible for Lead Liability coverage through the
FAIR Plan unless otherwise ineligible as provided in Section 11 of this
Regulation. The notice must be clearly identifiable by the insured. The notice
must provide information on how to contact the FAIR Plan, including address and
telephone number(s), including a toll free number. The notice must also comply
with Regulations 38 and 97, where applicable. Such written notice shall be given
on each renewal of the policy, unless the insurer decides to accept the Lead
Liability Coverage.
Section 8 Limits of Coverage
1. For Compliant Properties, if Lead Liability is included in the policy coverage
pursuant to the requirements of this Regulation and R.I. Gen. Laws § 42-128.1-9,
the coverage must be equal to the underlying policy limits of Liability Coverage
for personal injury/bodily injury coverage. Such coverage is not severable by
either the insured or the insurer.
2. With regard to Non-Compliant Rental Properties, if an insurer offers Lead
Liability in the policy coverage pursuant to the requirements of this Regulation
and R.I. Gen. Laws § 42-128.1-9, the coverage offered must be equal to the
underlying policy limits of Liability Coverage for personal injury/bodily injury
coverage. For Non-Compliant rental properties, Lead Liability coverage is
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severable from general liability at the discretion of the insured or the insurer as
long as the requirements of Section 7 of the Regulation are met.
Section 9 Rates and Forms for Lead Coverage
1. Insurers shall file with the Department rates for Lead Liability Coverage for
approval. The rates filed shall not be excessive, inadequate or unfairly
discriminatory and shall give consideration to the standards set forth in R.I. Gen.
Laws § 42-128.1-9(e). Approval from the Department must be obtained before
the rates may be used.
2. Insurers shall file with the Department the proposed language of endorsements for
Lead Liability exclusions for Non-Compliant properties. Approval from the
Department must be obtained before the form may be used.
3. Insurers shall file rates and forms for proposed coverage and endorsements no
later than October 1, 2003. Subsequent to initial approval, all changes to rates
and/or forms must be filed with and approved by the Department before being
used.
4. Insurers that qualify for an exemption from filing requirements pursuant to R.I.
Gen. Laws § 27-65-1 (a)(2), (3) or (4) are subject to this Regulation and shall
make the filings required hereunder.
Section 10 Information to be Filed with the Department
A. Each insurer writing liability insurance for Rental Properties in Rhode Island shall
file with the Department annually, prior to February 1 of each year, a report on
the form attached hereto as Exhibit A, detailing the following information with
regard to personal and commercial lines for the prior calendar year.
1. The number of policies in force covering Rental Properties for which the
insurer wrote any Liability Coverage and the total direct written premium
for the liability coverage provided;
2. The number of policies in force covering Rental Properties for which the
insurer wrote liability coverage and excluded Lead Liability Coverage by
endorsement and the total direct written premium for the liability coverage
provided;
3. The number of Rental Properties for which notice of eligibility to the
FAIR Plan was given by the insurer;
4. The average premium for policies including Lead Liability Coverage;
5. The average premium for policies excluding Lead Liability Coverage;
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6. Claim information including the number of claims made, settlements or
judgments under Lead Liability Coverage and the total amount of
payments made for Lead Liability during the calendar year;
7. Disclosure of underwriting rules restricting business based upon age or
geographic location of the risk and the legal basis for said rule; and
8. Identification of the type(s) of Prima Facie Evidence of Compliance which
the insurer is accepting for Compliant Rental Properties.
B. Each Surplus Lines Broker procuring liability insurance for Rental Properties in
Rhode Island shall file with the Department annually, prior to February 1 of each
year, a report on the form attached hereto as Exhibit B, detailing the following
information with regard to personal and commercial lines for the prior calendar
year.
1. The number of policies in force covering Rental Properties for which the
Surplus Lines Broker placed any liability coverage and the total direct
written premium for the liability coverage provided;
2. The number of policies in force covering Rental Properties for which the
Surplus Lines Broker placed liability coverage which excluded Lead
Liability Coverage and the total direct written premium for the liability
coverage provided;
3. The average premium for policies procured including Lead Liability
Coverage;
4. The average premium for policies procured excluding Lead Liability
Coverage;
5. The identity of Approved Surplus Lines Insurers with whom the Broker
placed insurance for Rental Properties by policy count.
C. The FAIR Plan shall file with the Department annually, prior to February 1 of
each year, a report, detailing the following information with regard to personal
and commercial lines for the prior calendar year.
1. The number of applications received for either Stand Alone Lead Liability
Coverage or general liability coverage which includes Lead Liability
Coverage;
2. The number of Rental Properties for which the FAIR Plan wrote general
liability coverage;
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3. The number of Rental Properties for which the FAIR Plan wrote general
liability coverage which included Lead Liability Coverage;
4. The number of Rental Properties for which the FAIR Plan wrote Stand
Alone Lead Liability Coverage;
5. With regard to the Stand Alone Lead Liability policies, the identity of the
insurer writing the general liability insurance reported as the number of
policies per insurance company;
6. The number of Rental Properties for which Lead Liability Coverage was
offered by the FAIR Plan and rejected by the insured;
7. The number of properties rejected for Lead Liability Coverage by the
FAIR Plan in accordance with Section 11 of this Regulation;
8. The average premium for Stand Alone Lead Liability Coverage;
9. The average premium for general liability coverage which included Lead
Liability Coverage;
10. The number of Compliant Rental Properties for which the FAIR Plan
wrote Stand Alone Lead Liability Coverage;
11. The number of Non-Compliant Rental Properties for which the FAIR Plan
wrote Stand Alone Lead Liability Coverage;
12. The geographic location, by zip code or other method approved in advance
by the Department, of all Compliant Rental Properties for which the FAIR
Plan provided Lead Liability Coverage; and
13. The geographic location, by zip code or other method approved in advance
by the Department, of all Non-Compliant Rental Properties for which the
FAIR Plan provided Lead Liability Coverage
D. An insurer or Surplus Lines Broker that fails to make such filing will be subject to
administrative action pursuant to R.I. Gen. Laws §§ 42-14-16 and 42-35-1 et seq.
Section 11 Property Owners Who Are Ineligible for Lead Liability Coverage
The FAIR Plan is not required to issue Lead Liability Coverage to any property
owner who fails to remediate the property after a notice of violation issued subsequent to
October 31, 2005. If a notice of violation is issued subsequent to October 31, 2005and
the property owner has not brought the property into compliance within ninety (90) days
of the issuance of the notice, any insurance policy issued to that property owner shall be
subject to cancellation and/or non-renewal. If a residential rental property owner owns
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only one (1) property and has one (1) unremediated dwelling unit at which a child was
poisoned prior to November 1, 2005, that property owner shall be ineligible for Lead
Liability Coverage. If a residential rental property owner owns more than one (1)
property and has more than two (2) unremediated dwelling units at which a child was
poisoned prior to November 1, 2005, that property owner shall be ineligible for Lead
Liability Coverage.
Section 12 FAIR Plan
1. The FAIR Plan shall be obligated to provide Lead Liability Coverage not only for
Non-Compliant Rental Properties but also for Compliant Rental Properties either
through its own homeowners or dwelling liability policies or a Stand Alone Lead
Liability policy. The FAIR Plan shall be permitted to use reasonable
underwriting guidelines as approved by the Department to underwrite the
property. The Stand Alone Lead Liability policy and the underwriting guidelines
shall be in accordance with Regulation 15.
2. Subject to the provisions of Section 11 of this Regulation, if requested by a
residential rental property owner, the FAIR Plan will offer Stand Alone Lead
Liability policies to property owners whose policies exclude coverage for lead
liability. This includes policies issued prior to November 1, 2005.
Section 13 Severability
If any section, term, or provision of this Regulation should be adjudged invalid
for any reason, that judgment should not effect, impair, or invalidate any remaining
section, term, or provision, which shall remain in full force and effect.
Section 14 Effective Date
This Regulation shall be effective twenty (20) days from the date of filing with
the Secretary of State as indicated below. The filing requirements of Section 10 of this
Regulation shall be effective for the 2006 calendar year. Therefore, the first annual
filings under Section 10 must be made on February 1, 2007.
EFFECTIVE DATE: April 8, 2003
AMENDED: October 17, 2005
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EXHIBIT A
Information Concerning Lead Liability Coverage
Name of Insurer: _______________________________________________________________
NAIC/Group Number: ___________________________________________________________
Calendar Year for Which Information is Reported: _____________________________________
Date of Submission: _____________________________________________________________
Identity of Person Completing Form (name and telephone number) ________________________
Each individual insurer must provide the following information regarding residential Rental Properties built
prior to 1978. This information may not be reported on a group basis.
The following information is for commercial lines only
Policies in force covering Rental Properties: number _______________ direct written premium ________
Policies in force covering Rental Properties that exclude Lead Liability Coverage:
number _______________ direct written premium ________
Number of Rental Properties for which notice of eligibility to the FAIR Plan was given: ______________
Average Premium for Commercial Lines including Lead Liability Coverage: _______________________
Average Premium for Commercial Lines excluding Lead Liability Coverage: _______________________
Number of Lead Liability Claims: ________ Settlements: _________ Judgments: _________
Total Lead Liability Claim Payments: __________________________
Does the insurer have underwriting rules restricting business based upon age or geographic location of risk?
Yes
□ No □
If the answer to the preceding question is in the affirmative, attach a copy of said rules to this form and
indicate how such rules comply with R.I. Gen. Laws § 27-29-4 (iii) and (iv) and R.I. Gen. Laws §.27-29-
4.1.
Prima Facie Evidence of Compliance (indicate whether the insurer is accepting or rejecting Rental
Properties when the property owner provides one of the following forms of compliance)
Certificate of Conformance (Lead Mitigation) - Accepting
□ Rejecting □
Certificate of Compliance (Lead Safe) - Accepting
□ Rejecting □
Certificate of Presumptive Compliance - Accepting
□ Rejecting □
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The following information is for personal lines only
Policies in force covering Rental Properties: number _______________ direct written premium ________
Policies in force covering Rental Properties that exclude Lead Liability Coverage:
number _______________ direct written premium ________
Number of Rental Properties for which notice of eligibility to the FAIR Plan was given: ______________
Average Premium for Personal Lines including Lead Liability Coverage: ___________________________
Average Premium for Personal Lines excluding Lead Liability Coverage: ___________________________
Number of Lead Liability Claims: ________ Settlements: _________ Judgments: _________
Total Lead Liability Claim Payments: __________________________
Does the insurer have underwriting rules restricting business based upon age or geographic location of risk?
Yes
□ No □
If the answer to the preceding question is in the affirmative, attach a copy of said rules to this form and
indicate how such rules comply with R.I. Gen. Laws § 27-29-4 (iii) and (iv) and R.I. Gen. Laws §.27-29-
4.1..
Prima Facie Evidence of Compliance (indicate whether the insurer is accepting or rejecting Rental
Properties when the property owner provides one of the following forms of compliance)
Certificate of Conformance (Lead Mitigation) - Accepting
□ Rejecting □
Certificate of Compliance (Lead Safe) - Accepting
□ Rejecting □
Certificate of Presumptive Compliance - Accepting
□ Rejecting □
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EXHIBIT B
Information Submitted by Surplus Lines Broker Regarding Lead Liability
Coverage
Name of Broker: _____________________________
Surplus Lines Broker License Number: ____________________________
Calendar Year ______________
Date Submitted: ________________________
The following information must be submitted regarding residential Rental Properties built prior to 1978.
The following information is for commercial lines only
Policies in force covering Rental Properties: number _______________ direct written premium ________
Policies in force covering Rental Properties that exclude Lead Liability Coverage:
number _______________ direct written premium ________
Average Premium for Commercial Lines Policies including Lead Liability Coverage: _________________
Average Premium for Commercial Lines Policies excluding Lead Liability Coverage: _________________
Number of Insurance Policies
Written on Rental Properties
The following information is for personal lines only
Policies in force covering Rental Properties: number _______________ direct written premium ________
Policies in force covering Rental Properties that exclude Lead Liability Coverage:
number _______________ direct written premium ________
Average Premium for Personal Lines Policies including Lead Liability Coverage:____________________
Average Premium for Personal Lines Policies excluding Lead Liability Coverage: ____________________
Number of Insurance Policies
Written on Rental Properties