Commissioner Oxendine said his top concern is to protect consumers and prevent exculpatory language that might be "misused" by adjusters, but he is also keen on protecting insurers from "abusive lawsuits" and "lottery type" litigation seen in other states, the Alliance added.

It is expected to take several weeks to reach consensus among the industry groups. No timetable has been set for the Alliance to submit proposed language to the commissioner.

"This is an excellent opportunity to provide valuable input from the companies most directly impacted by mold claims," said Robert Herlong, vice president of the Alliance's southeast region. "We welcome the challenge of coming up with wording that will strike the appropriate balance between consumer protection and what insurers need to get a handle on for these types of claims and their costs," Mr. Herlong said.

Mr. Herlong argued that extensive coverage for mold was never contemplated in insurance underwriting and pricing until recently and that mandating its coverage will only create financial instability for insurers and availability and affordability problems for consumers.

"By allowing insurers to offer a variety of coverage at a range of prices, consumers would be allowed to choose the coverage they need at a price they can afford," he added.