/ SECTION 1. Chapter 61, Title 38 of the 1976 Code is amended by adding:
"Section 38-61-70. (A) For purposes of this section:
(1) 'Insurance' has the same meaning as set forth in Section 38-1-20(25);
(2) 'Insurer' has the same meaning as set forth in Section 38-1-20(33);
(3) 'Insurance policy' has the same meaning as set forth in Section 38-1-20(45);
(4) 'Liability insurance policy' means a contract of insurance that covers occurrences of damages or injury during the policy period and insures a construction professional for liability arising from construction-related work; and
(5) 'Construction professional' means a person, sole proprietorship, partnership, corporation, limited liability company, or other recognized legal entity that engages in an activity intended to assist in the design, development, construction, installation, or repair of an improvement to real property regardless of whether this person or entity maintains a professional license pursuant to Title 40.
(B) For a liability insurance policy issued to a construction professional, an 'occurrence' means, at a minimum:
(1) an accident; or
(2) continuous or repeated exposure to substantially the same general harmful condition or substance.
No additional requirement of a fortuitous event is needed to constitute an 'occurrence'.
(C) If an insurance policy provision that appears to grant or restore coverage conflicts with an insurance policy provision that appears to exclude or limit coverage, the court shall construe the insurance policy to favor coverage if reasonably and objectively possible.
(D) This section applies only to an insurance policy that insures a construction professional for liability arising from construction related activities.
(E) This section applies to any pending or future dispute over coverage that would otherwise be affected by this section as to all contracts of insurance issued in the past, currently in existence, or issued in the future."
SECTION 2. If any section, subsection, paragraph, subparagraph, sentence, clause, phrase, or word of this act is for any reason held to be unconstitutional or invalid, such holding shall not affect the constitutionality or validity of the remaining portions of this act, the General Assembly hereby declaring that it would have passed this act, and each and every section, subsection, paragraph, subparagraph, sentence, clause, phrase, and word thereof, irrespective of the fact that any one or more other sections, subsections, paragraphs, subparagraphs, sentences, clauses, phrases, or words hereof may be declared to be unconstitutional, invalid, or otherwise ineffective.
SECTION 3. This act takes effect upon approval by the Governor and applies to any pending or future dispute over coverage that would otherwise be affected by this section as to all contracts of insurance issued in the past, currently in existence, or issued in the future. /
Renumber sections to conform.
Amend title to conform.