1. Forms
2. DL
3. DL-24-42

What the form is

The DL 24 42, titled "Coverage For Lead Poisoning - Massachusetts," is an endorsement to a dwelling insurance policy. Its primary purpose is to provide or buy back liability coverage for bodily injury claims arising from lead poisoning at a specifically scheduled property. This form is crucial in Massachusetts due to state-specific regulations concerning lead liability. It amends the policy's definition of "bodily injury" to encompass harm, sickness, or disease resulting from lead poisoning, including necessary care, loss of services, and resulting death. The coverage applies only to the location(s) listed in the endorsement, including common areas associated with that property.

Classes of business it applies to

This endorsement is primarily used for residential dwelling policies, particularly for rental properties constructed before 1978, as these are more likely to have lead-based paint hazards. It is relevant for landlords or property owners who wish to have specific coverage for lead-related liabilities. For example, an owner of an older multi-unit rental building in Massachusetts might use this endorsement to protect against potential lead poisoning claims from tenants, especially if children reside on the property.

Special considerations

• This endorsement is often used in conjunction with the DL 24 41 Lead Poisoning Exclusion. While DL 24 41 excludes lead poisoning liability, DL 24 42 allows the insured to buy back this coverage for an additional premium for specified units or locations.
• The insured must schedule the specific property and the desired coverage amount for lead liability on the endorsement.
• Coverage under this endorsement does not apply to bodily injury resulting from the insured's gross or willful negligence.
• There are typically minimum and maximum coverage limits available for this endorsement. For instance, the Massachusetts Property Insurance Underwriting Association (MPIUA) has set a minimum limit of $100,000 and a maximum of $500,000.
• The lead poisoning liability limit chosen cannot exceed the general Coverage L (Personal Liability) limit stated in the policy declarations.
• Massachusetts law has specific requirements regarding lead abatement and notification. Obtaining a Letter of Interim Control or a Letter of Compliance for a property can impact the applicability of lead exclusions and coverage. If such a letter is obtained during the policy period, the exclusion may cease to apply from the date the letter is in force.

Key information for agents and underwriters

• Risk Assessment: The age of the dwelling is a primary underwriting concern. Properties built before 1978 are at higher risk for lead paint. Underwriters may mandate the DL 24 41 Lead Poisoning Exclusion for older rental dwellings.
• Buy-Back Option: The DL 24 42 endorsement serves as a buy-back for the lead exclusion, allowing insureds to obtain coverage for an additional premium. Agents should clearly explain this option to clients with eligible properties.
• Scheduling: It is crucial for agents to accurately list each unit and location to which the lead poisoning coverage applies on the DL 24 42 endorsement.
• Premium Impact: Attaching the DL 24 41 exclusion may result in a premium credit. Conversely, adding the DL 24 42 coverage endorsement will incur an additional premium, which is calculated based on factors like the number of units and the desired coverage limit.
• Compliance: Agents and underwriters should be aware of Massachusetts lead laws and the significance of Letters of Interim Control or Compliance. These documents can affect coverage and pricing.
• Coverage Gaps: Even with this endorsement, coverage for gross or willful negligence is excluded. It's important to counsel insureds on their responsibilities regarding property maintenance and lead hazard remediation.