Do new mold and construction defect exclusions comply with renewal rule?
Marc Mayerson at the Insurance Scrawl discusses the "renewal rule."
Briefly stated: "When a policyholder renews an insurance policy with its carrier, the insurer must provide prior notice to the insured if it intends to reduce coverage under the newly issued policy." the rule applies to the renewal of commercial insurance as well as consumer policies. Mayerson's post discusses relevant cases.
Construction lawyers need to pay close attention to this rule as insurers have substantially contracted coverage for construction defects, mold and additional insureds. Did the insurer provide timely notice of the change?