By Diana Kowatch, CPCU, AU, AAM, CPIW
CAUTION: Not all insurance companies use ISO forms. Some companies ask ISO to file forms, rules, and loss cost adjustments for them; other companies file for themselves. You will need to find out from each of your companies whether or not revisions or new forms will be adopted, and on what date the form, rule or loss cost adjustments will become effective.
COUNTRYWIDE
01/97 revisions to the businessowners policy
Major changes have been made to the BOP program. In the area of eligibility, the changes include but are not limited to the following:
* Eligibility has been revised to increase the maximum square footage from 15,000 to 25,000.
* The maximum gross sales limit has been increased from $2,000,000 to $3,000,000.
* An increase in the number and types of classes of business now eligible for the BOP program include many of the artisan-type contractors, limited cooking and fast food-type restaurants (square footage on this class is 7,500), convenience stores with gasoline pumps, and laundry/dry cleaners.
Rating for the contractors classes will be split between property and liability with a separate rating basis for each. Other classes will continue to use a single rating base for the present.
The base property deductible has been increased to $500 to mirror the commercial property program with an option to decrease to $250.
Program coverage enhancements include:
* full exterior glass coverage
* increase in the limit for newly acquired personal property from $10,000 to $100,000 per location
* now included is $5,000 of accounts receivable coverage
* now included is $5,000 of valuable papers coverage
* now included is $5,000 or 5% of building limit for increased cost of construction coverage as a result of ordinance or law
Options are now available to increase or add the following coverages:
* a $2,000,000 limit of liability option has been added to the liability coverage
* option to add contingent business income
* option to increase valuable papers over the $5,000 basic
* option to increase accounts receivable over the $5,000 basic
* option to add utility services equipment failure
* additional options available for money and securities coverage
* options to add professional liability for a limited number of business types
The changes listed above are only a portion of the overall changes to the BOP program. Please review the entire program carefully before using.
Listed below under the individual states will be those that have approved the above revisions. This text will not be repeated but will refer back to this Countrywide section.
1996 revisions to the general liability multistate endorsements
A number of important revisions have been made to the commercial general liability program including:
Whenever the named insured in one policy is also an additional insured under another policy, the first policy will be excess. Two new endorsements have been developed --Amendment of Other Insurance Condition (Occurrence Version), CG 00 55 and Amendment of Other Insurance Condition (Claims-Made Version), CG 00 56. Also, two claims-made endorsements have been developed: CG 27 10, Supplemental Extended Reporting Period Endorsement With Amendment of Other Insurance Condition and
CG 27 11, Supplemental Extended Reporting Period Endorsement For Specific Accidents Products, Work or Locations With Amendment of Other Insurance Condition. The claims-made endorsements replace two existing ones which have been withdrawn: CG 27 01, Supplemental Extended Reporting Period Endorsement; and CG 27 04, Supplemental Extended Reporting Period Endorsement For Specific Accidents Products, Work or Locations.
New endorsements have been developed to allow the addition of additional insureds without being required to name each one: GL 20 33, Additional Insured--Owners, Lessees or Contractors--Automatic Status When Required In Construction Agreement With You; and CG 20 34, Additional Insured-Lessor of Leased Equipment--Automatic Status When Required In Lease Agreement With You.
Clarifications in the form of revised titles have been made regarding the usage of additional insured endorsements: CG 20 09, Additional Insured--Owners, Lessees or Contractors, Scheduled Person or Organization (For Use When Contractual Liability Coverage Is Not Provided To You In This Policy); CG 20 10, Additional Insured--Owners, Lessees or Contractors-Scheduled Person Or Organization.
New endorsement, CG 00 54--Amendment of Pollution Exclusion--Exception for Building Heating Equipment. This endorsement provides coverage for bodily injury resulting from the release or escape of smoke, fumes, vapor or soot from heating equipment.
Endorsement CG 21 37, Exclusion--Employees As Insureds, has been revised to clarify that coverage is excluded even in aircraft, auto or watercraft situations.
A new endorsement was written to exclude all pollution except that from hostile fire: CG 21 55, Total Pollution Exclusion With A Hostile Fire Exception.
A number of new endorsements were developed and the existing endorsement revised to clarify specifically the professional liability exclusion. The revised endorsement is
CG 22 33, Exclusion--Testing or Consulting Errors and Omissions. The new endorsements are: CG 21 59, Exclusion--Diagnostic Testing Laboratories; CG 21 56, Exclusion--Funeral Services; CG 21 58, Exclusion--Professional Veterinarian Services; and CG 21 57, Exclusion--Counseling Services.
It has been determined that CG 22 49, Exclusion--Patient Injury, is not necessary due to the wording of the CGL and other mandatory class endorsements. Therefore, this particular endorsement has been withdrawn.
Endorsement CG 22 74, Amendment of Contractual Liability Exclusion for Personal Injury Limited To False Arrest, Detention or Imprisonment For Designated Contracts or Agreements, has been revised to strengthen the wording and intent.
It has been determined that endorsement CG 24 10, Excess Provisions--Vendors, is a duplication of coverage afforded in the underlying policy. Therefore, this endorsement is no longer necessary and has been withdrawn.
Revisions were made to endorsements CG 25 03, Amendment--Aggregate Limits of Insurance (Per Project); and to CG 25 04, Designated Location(s) General Aggregate Limit Endorsement, to better clarify how the various aggregate limits will apply.
Listed below under the individual states will be those that have approved the above revisions. This text will not be repeated but will refer back to this Countrywide section.
ALABAMA
In order to comply with the Alabama Supreme Court ruling in Ballard V. Lee, 1995 WL 560039 (Ala. 9/22/95), revisions have been made to add the definition of the term ACV to property policies. In this court case, it was decided that an actual cash value limitation in a replacement cost policy could not be enforced if the policy did not disclose the meaning of the term ACV. As a result, one endorsement, the Businessowners policy mandatory endorsement BP 01 01, Alabama Changes, has been revised to include a definition of ACV. A new endorsement, IL 01 90, Alabama Changes--Actual Cash Value, has been developed and must be attached to all policies with property damage including the following:
Boiler and Machinery coverage part; Commercial Crime coverage part; Commercial Inland Marine coverage part; Commercial Property coverage part; and the Farm coverage part. Both endorsements now include the definition of ACV and explain that ACV may be significantly less than replacement cost. These changes apply to all policies written on or after March 1, 1997.
The Homeowners Special Provisions Endorsement HO 01 01 has also been revised for the same reason. The definition of ACV has been added with an explanation of how ACV is calculated. This revision applies to all policies written on or after May 1, 1997.
ALASKA
The 1996 Revisions to the General Liability Multistate Endorsements have been approved--See Countrywide above. These changes apply to all policies written on or after April 1, 1997.
CALIFORNIA
Approval has been received for the 1994 multistate revisions to the Homeowners and Mobilehome program including endorsements, loss costs, and rule changes. These revisions have been approved for use by participating insurers as of November 15, 1996.
The 1995 Commercial General Liability Revisions have been approved including changes to the CGL coverage forms, both the Occurrence Version, CG 00 01, and the Claims-Made Version, CG 00 02. Also amended are many of the CGL endorsements. Most of the changes made are to provide consistency in policy language, forms, format, concepts, and wording. Many are editorial in nature, such as alphabetizing definitions, making sure defined terms are in quotation marks and similar corrections. A significant clarification has been made in the insuring agreements, making clear the intent of the insurer not to provide defense when no coverage exists. Contractual liability is extended not only to the damages assumed by the insured in an insured contract but also to the defense of such. It has now clarified that Personal Injury does not cover Pollution. Coverage provided an insured who loses income at the request of the insurer under Supplementary Payments has been increased from $100 per day to $250. The definition of Who Is An Insured has been extended to include limited liability companies. The above outlined changes are brief overviews and are not all-inclusive in nature. Detailed analysis of all the revisions and the full impact of those changes should be made. These changes apply to ISO participating insurers as of September 16, 1996.
COLORADO
In response to the Colorado Supreme Court ruling in Farmers Ins. Exchange versus Dotson, 913 P.2d 27 (CO 1996), Personal Auto Endorsement PP 01 61, Amendment of Policy Provisions--Colorado, has been revised to allow a named insured to collect coverage under his/her own auto liability policy for damages caused by any insured under that policy; however, the exclusion that prevents a "family member" from collecting liability coverage under the policy remains in effect. This change carries a distribution date of February 1, 1997.
DISTRICT OF COLUMBIA
The 1996 Revisions to the General Liability Multistate Endorsements have been approved--see Countrywide above. These changes apply to all policies written on or after April 1, 1997.
Commercial Auto Endorsement CA 02 63, District Of Columbia Changes--Cancellation And Nonrenewal, has been revised in response to 1996 DC Stat. 11-160 (former Council Bill 11-57). This revision is made to amend the underwriting review period on new policies of motor vehicle insurance from 30 to 60 days. This change applies to all policies written on or after May 1, 1997.
FLORIDA
Three new homeowners endorsements have been developed to provide deductible options. They are as follows:
* HO 03 23, Windstorm or Hail Deductible, offers the options of $1,000, $2,000, or $5,000 for windstorm and hail, subject to a maximum of 2% of the Dwelling limit (if that Dwelling limit is less than $250,000).
* HO 03 24, All Perils Deductible, offers the options of $500, $1,000, or $2,500 for all perils, subject to a maximum of 2% of the Dwelling limit when the loss is caused by windstorm and hail (if that Dwelling limit is less than $250,000).
* HO 03 25, Windstorm or Hail Percentage Deductible, offers deductibles of 1%, 2%, or 5%, subject to a $500 minimum.
These changes apply to all policies effective on or after December 1, 1996.
KENTUCKY
The 1996 Revisions to the General Liability Multistate Endorsements have been approved--see Countrywide above. These changes apply to all policies written on or after April 1, 1997.
MICHIGAN
The 1996 Revisions to the General Liability Multistate Endorsements have been approved--see Countrywide above. These changes apply to all policies written on or after April 1, 1997.
HO 01 21, Michigan Special Provisions Endorsement, has been revised to correct typographical, grammatical, and omission errors. These corrections apply to all policies written on or after February 1, 1997.
MINNESOTA
Two personal auto endorsements (PP 01 60, Amendment of Policy Provisions--Minnesota, and PP 03 99, Split Liability Limits--Minnesota) have been revised as requested by the Minnesota Department of Commerce. This request resulted from changes in the 1995 Minn. Laws (former S.B. 1204) revising the mandatory coverages required for damage to rental and loaned vehicles in the Personal Auto policy. In addition, the definition of rental vehicle in Minnesota now includes vehicles loaned as replacement for ones being serviced or repaired whether or not a charge is made for the loan/rental. These changes apply to all policies written on or after February 1, 1997.
MONTANA
The 1996 Revisions to the General Liability Multistate Endorsements have been approved--see Countrywide above. These changes apply to all policies written on or after April 1, 1997.
NEBRASKA
The 1996 Revisions to the General Liability Multistate Endorsements have been approved--see Countrywide above. These changes apply to all policies written on or after April 1, 1997.
NEVADA
The 1996 Revisions to the General Liability Multistate Endorsements have been approved--see Countrywide above. These changes apply to all policies written on or after April 1, 1997.
NEW JERSEY
The 1996 Revisions to the General Liability Multistate Endorsements have been approved--see Countrywide above. These changes apply to all policies written on or after April 1, 1997.
NEW MEXICO
The 1996 Revisions to the General Liability Multistate Endorsements have been approved--see Countrywide above. These changes apply to all policies written on or after April 1, 1997.
NEW YORK
The following changes have been made to commercial auto endorsements:
* CA 01 52, New York Changes In Garage Coverage Form, has been revised to make an exception within the Fellow Employee exclusion which makes the exclusion apply only if the fellow employee is entitled to unemployment, workers compensation, disability benefit, unemployment compensation, or benefits under similar types of laws.
* CA 22 33, Additional Personal Injury Protection Endorsement--New York, has been revised both in title and in reference to Regulation No. 68 as requested by the New York Insurance Department. It also deletes references to a Schedule in the Extended Economic Loss Provision and the Two or More Vehicles Insured Under This Policy Provision.
The following new endorsement is now approved and available:
* CA 20 50, New York Snowmobiles, offering coverage on snowmobiles.
The following endorsements have been withdrawn:
* CA 20 18, Professional Services Not Covered;
* CA 20 21, Snowmobiles;
* CA 23 01, Explosives;
* CA 23 04, Rolling Stores; and
* CA 23 05, Wrong Delivery of Liquid Products.
These changes apply to all policies written on or after March 1, 1997.
Commercial Property Endorsement CP 10 54, Windstorm Or Hail Exclusion, has been withdrawn from use in New York at the request of the Insurance Department, and the multistate Rule 74 regarding Other Causes of Loss Forms has been excepted for New York in order to specify that the Windstorm Or Hail exclusion does not apply. This change applies to all policies written on or after March 1, 1997.
NORTH DAKOTA
The 1996 Revisions to the General Liability Multistate Endorsements have been approved--see Countrywide above. These changes apply to all policies written on or after April 1, 1997.
RHODE ISLAND
The 1996 Revisions to the General Liability Multistate Endorsements have been approved--see Countrywide above. These changes apply to all policies written on or after April 1, 1997.
SOUTH CAROLINA
The 1996 Revisions to the General Liability Multistate Endorsements have been approved--see Countrywide above. These changes apply to all policies written on or after April 1, 1997.
The 01/97 revisions to the Businessowners policy, including supplements and amendment that coordinate with 1996 experience level review revision, have been approved--see Countrywide above. These changes apply to all policies written on or after May 1, 1997.
SOUTH DAKOTA
The 1996 Revisions to the General Liability Multistate Endorsements have been approved--see Countrywide above. These changes apply to all policies written on or after April 1, 1997.
VERMONT
The 1996 Revisions to the General Liability Multistate Endorsements have been approved--see Countrywide above. These changes apply to all policies written on or after April 1, 1997.
WASHINGTON
The 1996 Revisions to the General Liability Multistate Endorsements have been approved--see Countrywide above. These changes apply to all policies written on or after April 1, 1997.
WEST VIRGINIA
The 1996 Revisions to the General Liability Multistate Endorsements have been approved--see Countrywide above. These changes apply to all policies written on or after April 1, 1997.
WISCONSIN
The 1996 Revisions to the General Liability Multistate Endorsements have been approved--see Countrywide above. These changes apply to all policies written on or after April 1, 1997.
WYOMING
The 1996 Revisions to the General Liability Multistate Endorsements have been approved--see Countrywide above. These changes apply to all policies written on or after April 1, 1997.
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