The decision was announced late last month by the state's new insurance Commissioner Alfred W. Redmer Jr., which rescinds an earlier, March ruling by Mr. Redmer's predecessor Steven Larsen.

Mr. Larsen, a Democrat who was appointed to be Maryland's top insurance regulator six years ago by a fellow Democrat, Gov. Parris Glendening, stepped down from his post after his term expired on May 31, said Debbie Rosen McKerrow, spokesperson for the state's insurance department. Mr. Redmer, a Republican, was appointed in his place June 1 by a new Republican governor, Robert L. Ehrlich Jr., who was sworn into office this past January.

On March 18, while still in office, Mr. Larsen ruled that insurance companies could not deny mold coverage, with dollar limits on payouts to $15,000 for removal and $50,000 for liability. Under the new ruling by Commissioner Redmer, however, individual insurers get to decide whether to offer such mold coverage.

The new order now allows insurance companies to exclude such coverage. Additionally, new filings will be processed on an expedited basis and filing fees will be waived for 60 days after June 27. And filings currently under review may be modified without the need to submit new filings.

"Commissioner Redmer feels very strongly about enhancing competition in Maryland," said Ms. McKerrow. "In order for there to be a competitive market, some insurers may decide to offer coverage and some may decide to exclude it, while others may offer limited coverage. And Commissioner Redmer feels that this would stimulate competition. His point is to allow companies to make these decisions for themselves," she said.

Ms. McKerrow also acknowledged that mold-related litigation has not been "a huge problem in Maryland, as compared to states like Texas." She noted that her department has received "a handful of complaints" from consumers. "But it's not like the situation in other states that we read about. Maryland is not there," she said.