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Amendment of section 18 of Act of 2019
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9. Section 18 of the Act of 2019 is amended, in subsection (4) —
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(a) by the substitution of the following paragraph for paragraph (a):
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“(a) Where a contract of insurance, under which 2 or more consumers are co-insureds, contains a term or condition excluding coverage for loss or damage to property caused by a criminal or intentional act or omission of a co-insured, the exclusion shall apply only to the claim of a consumer—
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(i) whose act or omission caused the loss or damage,
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(ii) who abetted or colluded in the act or omission, or
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(iii) who consented to the act or omission and knew or ought to have known that the act or omission would cause the loss or damage.”,
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(b) by the substitution of the following paragraph for paragraph (b):
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“(b) Nothing in paragraph (a) shall be interpreted as—
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(i) allowing a person whose property is insured under the contract of insurance to recover more than that person’s proportionate interest in the lost or damaged property, or
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(ii) affecting the operation of a term or condition in the contract of insurance excluding coverage for loss or damage to property caused by war, an act of terrorism, a nuclear attack or a cyberattack.”,
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and
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(c) by the insertion of the following paragraph after paragraph (c):
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“(d) For the purposes of paragraph (a), 2 or more consumers are each a co-insured under a contract of insurance where each of those consumers—
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(i) has an interest in the insured property, and
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(ii) is insured against loss or damage to the insured property.”.
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