Bill > S539

Introduced Session

This bill requires insurers offering commercial general liability insurance policies to provide a notification of any exclusion for communicable disease, including the transmission of coronavirus disease 2019. The bill requires authorized insurers to provide to any potential purchaser of, or any policyholder seeking renewal of, a commercial general liability insurance policy, a clear statement on a separate page and in a prominent position, as to whether the policy provides liability coverage for transmission of communicable disease, including the transmission of coronavirus disease 2019. If the policy contains an exclusion for coverage of transmission of communicable disease or an exclusion for coverage of the transmission of coronavirus disease 2019, the statement is to include: (1) the cost of removing the exclusion; or (2) if the exclusion cannot be removed, a statement providing that coverage for the transmission of communicable disease, including the transmission of coronavirus disease 2019, may be purchased from another insurer. If an insurance contract fails to include the statement required by the bill, any coverage exclusion for transmission of communicable disease or transmission of coronavirus disease 2019 is to be invalid, and the contract is deemed to provide liability coverage for transmission of communicable disease, including the transmission of coronavirus disease 2019. As insurance companies adjust to the coronavirus disease 2019 pandemic, some companies have begun to include exclusions for transmission of communicable disease in their commercial general liability policies. This bill requires that insurers provide a prominent notification of any such exclusions to potential purchasers and policyholders so that businesses can be certain of the limits of their coverage.

Committee Categories

Jon Bramnick (R)*, 

Introduced in the Senate, Referred to Senate Commerce Committee (on 01/09/2024)

Official Document