2016 -- H 7305

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LC004096

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2016

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A N   A C T

RELATING TO BUSINESSES AND PROFESSIONS - HOME INSPECTORS

     Introduced By: Representatives McKiernan, O'Brien, Almeida, McEntee, and Craven

     Date Introduced: January 22, 2016

     Referred To: House Corporations

     It is enacted by the General Assembly as follows:

     SECTION 1. Section 5-65.1-10 of the General Laws in Chapter 5-65.1 entitled "Home

Inspectors" is hereby amended to read as follows:

     5-65.1-10. Insurance requirements. -- (a) Every licensed home inspector and associate

home inspector shall secure, maintain, and file with the board a certificate of insurance for an

errors and omissions policy and a certificate of insurance for a general liability policy; both shall

be for a minimum amount of five hundred thousand dollars ($500,000) in the aggregate. These

certificates must be valid from the date a license is issued until the license expires. This proof

shall be deemed satisfactory if the policy is carried by the corporation, partnership or franchise

for which the home inspector is a contracted employee and the home inspector or associate home

inspector is specifically covered by such policy.

      (b) Every proof of an errors and omissions or general liability policy required to be filed

with the board shall not be effective unless it provides that the insurance may not be canceled

until at least ten (10) days notice of intention to cancel or to not renew has been received in

writing by the board.

     (c) No contract provided by any licensed home inspector or associate home inspector

shall contractually limit the liability of any such inspector to any amount less than the limits of

insurance specified in subsection (a) of this section. Any such limitation provision in any home

inspection contract issued on or after September 1, 2016 shall be void.

      (c)(d) Failure of the licensee or corporation or partnership to maintain this insurance will

result in the immediate loss of his or her license.

     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO BUSINESSES AND PROFESSIONS - HOME INSPECTORS

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     This act would prohibit home inspectors or associate home inspectors from entering into

contracts limiting their liability to less than five hundred thousand dollars ($500,000).

     This act would take effect upon passage.

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LC004096

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