Bill
S 6205
Overview: Bill Number: S 6205, Title: Relates to anti-concurrent causation clauses, Status: REFERRED TO INSURANCE, Introduced: March 06, 2025Purpose and Intent: This bill aims to a
Overview: Bill Number: S 6205, Title: Relates to anti-concurrent causation clauses, Status: REFERRED TO INSURANCE, Introduced: March 06, 2025
Purpose and Intent: This bill aims to address the use of anti-concurrent causation (ACC) clauses in insurance policies. ACC clauses are provisions that allow insurers to deny coverage if multiple perils contribute to a loss, even if one of the perils is covered. The intent is to provide more clarity and consumer protections around the application of these clauses.
Key Provisions:
- Prohibits insurers from including ACC clauses in homeowner's, renter's, or condominium insurance policies
- Requires insurers to clearly disclose and explain ACC clauses in commercial property insurance policies
- Establishes that insurers must cover losses if a covered peril is the dominant cause, even if other non-covered perils also contributed
Affected Parties and Impacts:
- Homeowners, renters, and condominium owners will benefit from the ban on ACC clauses in their insurance policies
- Commercial property owners will have more transparency around ACC clauses in their policies
- Insurers will be required to pay claims in situations where a covered peril is the primary cause of the loss
Procedural and Timeline Considerations:
The bill has been referred to the Insurance committee for further review and consideration. If enacted, the new requirements around ACC clauses would take effect for all insurance policies issued or renewed after January 1, 2026.
Compiled from official sources — confirm details with the bill’s official record.
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