Chapter 513

2016 -- H 7305 Enacted 07/26/2016

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

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). 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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LC004096

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