# NAII: Calif Mold Legislation Is Wrong 

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California state senators advanced legislation May 23 that would forbid insurance companies from restricting mold coverage in property and liability policies. 

In a 21-11 vote, the California Senate passed Senate Bill 1763, which would prevent insurers from excluding mold losses when such claims are triggered by a covered peril-such as a fire or heavy water damage. The bill would require property or liability insurance policies issued or renewed on or after Jan. 1, 2003 to cover mold as an "ensuing loss." 

"It is a disappointment that the Senate approved a bill which could worsen the already troubled marketplace for homeowners insurers," Sam Sorich, general counsel and senior vice president of the National Association of Independent Insurers (NAII), said.

Sources:
- Insurance Journal (http://www.insurancejournal.com/news/west/2002/05/24/17584.htm)