2022 -- H 8110

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LC005633

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2022

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A N   A C T

RELATING TO INSURANCE -- CASUALTY INSURANCE GENERALLY -- LIQUID FUEL

COVERAGE

     Introduced By: Representative S Lima

     Date Introduced: April 08, 2022

     Referred To: House Corporations

     It is enacted by the General Assembly as follows:

     SECTION 1. Chapter 27-8 of the General Laws entitled "Casualty Insurance Generally" is

hereby amended by adding thereto the following section:

     27-8-19. Property damage caused by heating oil leakage.

     Every insurance company incorporated by or under the laws of this state, and licensed to

write homeowners' insurance in this state, insuring dwelling houses or other properties shall provide

the following coverage to residential owners to whom a homeowners' insurance policy is issued or

renewed on or after January 1, 2023:

     (1) First-party property coverage for response action costs incurred or regulations

promulgated pursuant thereto and property damage on the insured's property caused by or in

response to a release of heating oil from a residential liquid fuel tank or any piping, fuel supply

lines, equipment or systems connected thereto; and liability coverage for third-party claims arising

out of a release of heating oil into the environment. Minimum coverage of seventy-five thousand

dollars ($75,000) per occurrence for first-party property subject to a reasonable deductible not to

exceed one thousand dollars ($1,000) per claim and minimum coverage of two hundred fifty

thousand dollars ($250,000) per occurrence for third-party liability shall be provided. For the

purposes of this section, first-party property coverage shall include response action costs incurred

to assess and remediate a heating oil release impacting soil, indoor air or other environmental media

on the insured's property. Third-party liability coverage shall include the obligation to defend the

insured at the insurer's expense against third-party claims, and such defense obligation shall include

coverage for costs incurred to investigate the source and extent of the release of heating oil.

Damages covered under third-party liability coverage shall include response action costs incurred

to address conditions on and off the insured's property arising from a heating oil release on the

insured's property that has impacted or is likely to impact groundwater or has migrated to, or is

likely to migrate to, a third-party's property. First-party and third-party liability coverage shall

apply simultaneously and, in addition to, one another when both coverages are applicable.

     (2) As used in this section, unless the context clearly requires otherwise, "dwelling house"

means a 1 to four (4) unit dwelling used for living or sleeping and "liquid fuel tank" means a tank

in which heating oil is stored and from which heating oil is delivered or pumped through a fuel

supply line to an oil burner, whether located within a dwelling or other structure, including tanks

installed at or below grade level, or located outdoors but excluding underground tanks wherever

located.

     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 INSURANCE -- CASUALTY INSURANCE GENERALLY -- LIQUID FUEL

COVERAGE

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     This act would require that casualty insurance provide coverage for property damage on

the insured’s property caused by or in response to a release of heating oil from a residential liquid

fuel tank or any piping, fuel supply lines, equipment or systems connected thereto; and liability

coverage for third-party claims arising out of a release of heating oil into the environment,

commencing on or after January 1, 2023. Minimum coverage of seventy-five thousand dollars

($75,000) per occurrence for first-party property subject to a reasonable deductible not to exceed

one thousand dollars ($1,000) per claim and minimum coverage of two hundred fifty thousand

dollars ($250,000) per occurrence for third-party liability would be provided.

     This act would take effect upon passage.

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