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:

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

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Inspectors" is hereby amended to read as follows:

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

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

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

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

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

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

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

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inspector is specifically covered by such policy.

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

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

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

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writing by the board.

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

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

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

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

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

 

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result in the immediate loss of his or her license.

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     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

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

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     This act would take effect upon passage.

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