By Diana Kowatch, CPCU, AU, AAM, CPIW dianak@in.net
The PF&M Companion is a service of the Policy, Form and Manual Analysis Service, published by the Rough Notes Company, Inc. Policy, Form and Manual Analysis (PF&M), continually updated since 1929, is the personal, commercial, and specialty policy and form analysis service provided by the Rough Notes Company. PF&M is available in paper, on disk in Three Part Harmony, and on CD-ROM through Silver Plume as Rough Notes. For more information on this service call 1-800-428-4384.
Includes copyrighted material of Insurance Services Office, Inc., or ISO Commercial Risk Services, Inc., with its permission; ©Copyright, Insurance Services Office, Inc., 1997 ©Copyright, ISO Commercial Risk Services, Inc., 1997.
COUNTRYWIDE
1997 MULTISTATE REVISIONS TO THE COMMERCIAL AUTO COVERAGE FORMS AND ENDORSEMENTS
Under Physical Damage Coverage-Coverage Extensions, the word "temporary" is added to transportation expense so that only "temporary" transportation expenses are covered after a total theft of a covered vehicle.
Supplementary Payments has been corrected to read "suits against the insured," thus clarifying that the insured, not the suit, is covered. Similar wording is changed in Duties In the Event Of Accident, Claims, Suit or Loss. The maximum daily payment for loss of earnings by the insured has been increased from to $250 to $2,000 per day. The limit for bail bonds has been raised to $2,000.
Who Is An Insured has been amended to include Limited Liability Companies (LLC).
Symbol 30 of the Garage coverage form has been amended to use the same definition of "what is a customer's auto" as is in the Garagekeepers Coverage Form-CA 99 37. The Excess Coverage option is amended to clarify that the Direct Coverage options are not mutually exclusive of the underlying legal liability coverage. Coverage may apply even when the insured is not legally liable.
In Exclusion #4, Employee Indemnification and Employer's Liability and Exclusion #5-Fellow Employee, a definition has been added for "domestic employee."
Under Physical Damage exclusions, radar or other such equipment has been revised to also exclude any jamming devices.
In Garage Coverage Form-CA 00 05, the physical damage exclusion as it relates to an auto dealership now states that there is no coverage for the loss of market value or resale value.
In the condition for Duties In The Event of Accident, Claim, Suit Or Loss, language is strengthened to clarify that the insurer has no obligation until the insured has complied with all duties.
Three new definitions have been added for EMPLOYEE, LEASED WORKER, and TEMPORARY WORKER.
The following new endorsements are added:
CA 20 47-Additional Insured-Lessor of Leased Equipment; CA 20 48-Designated Insured; CA 20 49-Additional Insured - Garages - Grantor of Franchise; CA 23 24-Agricultural Produce Trailers - Seasonal; and CA 23 25-Coverage For Injury To Leased Workers.
Revisions have been made to endorsements as follows:
CA 02 40-Suspension of Insurance: A blank line for insurers to insert a coverage not listed has been added if that coverage may be suspended by that particular state's law. UIM may now apply either in combination with UM or stand-alone. Three other endorsements are also amended accordingly: CA 20 15-Mobile Equipment; CA 20 21-Snowmobiles; and CA 20 27-Registration Plates Not Issued For A Specific Auto.
CA 20 19-Repossessed Autos: Space has been added to show a limit for unlisted locations.
CA 23 17-Truckers-Intermodal Interchange Uniform Endorsement Form UIIE-1: Various changes have been made in response to the Uniform Intermodal Interchange and Facility Access Agreement (UIIA) by the Intermodal Association of North America (IANA).
CA 25 03-False Pretense Coverage: The insured is now required only to take reasonable steps to have a warrant issued. Excluded is coverage if a bank or other drawee fails to pay. Coverage is granted for vehicles on consignment. The reference to a limit of $25,000 is replaced by the amount shown either in the Schedule or in the Declarations.
CA 25 14-Broadened Coverage-Garages: Has been revised to reflect the recent CGL change clarifying that the professional services excluded are health care services. The coverages provided by this endorsement apply only to the non-auto exposures.
CA 99 10-Drive Other Car Coverage-Broadened Coverage For Named Individuals: The mandatory $50 collision deductible has been deleted.
CA 99 28-Stated Amount Insurance: A simple revision has been made to clarify that the stated deductible applies to this endorsement.
CA 99 37-Garagekeepers Coverage and CA 99 59-Garagekeepers Coverage-Customer's Sound Receiving Equipment: The Excess Coverage option is amended to clarify that the Direct Coverage options are not mutually exclusive of the underlying legal liability coverage. Further, coverage may apply even when the insured is not legally liable.
The above is a simplified recap of the revisions. Please review each endorsement carefully before using. Listed below, under the individual states, are those that have approved these program changes. This text will not be repeated but will refer back to this Countrywide section.
NEW AND REVISED 09 97 MULTISTATE GENERAL LIABILITY ENDORSEMENTS REVISIONS TO CORRESPOND TO THE COMMERCIAL LINES MANUAL CLASSIFICATION TABLE CHANGES
In order to be compatible with and correspond to the new classifications and revisions to the Commercial Lines Manual Classification Table, numerous new general liability endorsements have been developed and current endorsements have been revised. The following forms are new:
* CG 22 87-Exclusion-Adult Day Care Centers
* CG 22 88-Professional Liability Exclusion-Electronic Data Processing Services and Computer Consulting or Programming Services
* CG 22 89-Exclusion-Property Damage to Electronic Data (Computer Software Manufacturer)
* CG 22 90-Professional Liability Exclusion-Spas or Personal Enhancement Facilities
* CG 22 91-Exclusion-Telecommunications Equipment or Service Providers Errors and Omissions
The following endorsements have been revised:
* GL 22 68-Operation of Customer's Autos on Particular Premises
* CG 22 76-Professional Liability Exclusion-Health or Exercise Clubs or Commercially Operated Health or Exercise Facilities
* CG 22 77-Professional Liability Exclusion-Computer Data Processing
Listed below, under the individual states, are those that have approved these program changes. This text will not be repeated but will refer back to this Countrywide section.
THE NEW 1997 HOMEOWNERS OPTIONAL PROPERTY REMEDIATION FOR ESCAPED LIQUID FUEL AND LIMITED LEAD AND ESCAPED LIQUID FUEL LIABILITY COVERAGE ENDORSEMENTS
Four new endorsements have been developed to provide home owners with limited first- and third-party coverages for specific pollution hazards. The first-party coverage is for escaped fuel remediation and applies when liquid fuel escapes from its storage system (system must contain a minimum combined capacity of 100 or more U.S. gallons). Up to $10,000 of coverage (a higher limit may be purchased) is provided for temporary repairs to prevent further escape or stop the spread of fuel; expenses to test, monitor, or assess the effects of escaped fuel that is required by an outside source (other than the insured); additional living expenses; and loss or damage to shrubs, trees, and plants not grown for business. Not covered is the loss of market value of the structure, loss of the actual liquid fuel, or damage from escape of liquid fuel in or for motor vehicles and/or watercraft.
The third-party coverage applicable to lead and escaped fuel liability coverage actually limits or reduces the insured's protection by capping the limit available to a $50,000 aggregate (higher limits may be purchased) for all claims against the insured from damage or injury because of lead and escaped fuel contamination.
The new endorsements are:
* HO 05 80, Property Remediation For Escaped Liquid Fuel and Limited Lead and Escaped Liquid Fuel Liability Coverages (all forms except HO 00 04 and HO 00 06)
* HO 05 81, Property Remediation For Escaped Liquid Fuel and Limited Lead and Escaped Liquid Fuel Liability Coverages (HO 00 04 only)
* HO 05 82, Property Remediation For Escaped Liquid Fuel and Limited Lead and Escaped Liquid Fuel Liability Coverages (HO 00 06 only)
* HO 05 83, Rating Information for Property Remediation For Escaped Liquid Fuel and Limited Lead and Escaped Liquid Fuel Liability Coverages
The above is a simplified recap of the new options. Please review each endorsement carefully before using. Listed below under the individual states, will be those that have approved these endorsements. This text will not be repeated but will refer back to this Countrywide section.
THE NEW 1997 MULTISTATE HOME BUSINESS INSURANCE COVERAGE ENDORSEMENT TITLED HOBIZ™
In order to accommodate the growing need for protection in the Homeowners policy for in-home businesses, ISO has developed a new optional endorsement that may be added to an existing policy. This endorsement offers coverage for business personal property above the $2,500 initially available in the HO policy and increases the off-premises business personal property from $250 to $5,000. Money is covered up to $1,000 and protection for business use of credit card, fund transfer card, forgery and counterfeit money is available for up to $1,000. The following coverages are added:
* Accounts Receivable--$5,000 on-premises and $2,500 off.
* Valuable Papers and Records--$2,500.
* Business Income--actual loss sustained.
* Extra Expense--actual.
* Civil Authority--covered is the actual loss sustained for business income and extra expense as a result of action by a civil authority prohibiting access to the residence premises.
Coverage E--Personal Liability is extended to cover business liability for premises and products-completed operations hazards. Protection is extended to include both personal injury and advertising injury liability.
Coverage F--Medical payments to others is similarly extended to business occurrences.
Excluded are:
* professional liability
* specified instances of personal or advertising injury
* damage to impaired property or property not physically injured
* damage to particular property
* damage to your product
* damage to your work
* employer's liability
* pollution
* recall of products, work, or impaired property
The limit for products-completed operations hazard is the same as that for the Coverage E limit shown in the Declarations. The limit for all other business liability is twice the sum of the Coverage E and F limits shown in the Declarations. The limit for Damage to Property of Others is increased to $2,500 per occurrence.
The above listed recap is only a portion of the overall coverage offered in the HOBIZ endorsement. Please review the entire endorsement carefully before using. Listed below, under the individual states, will be those that have approved this endorsement. This text will not be repeated but will refer back to this Countrywide section.
NEW 09 1997 MULTISTATE POLLUTION EXCLUSION OPTIONAL ENDORSEMENTS
In order to provide options to the Pollution exclusion in the CGL for specific exposures or events or situations, three new endorsements have been developed and approved. They are:
CG 04 28-Pollution Exclusion-Named Peril Limited Exception For a Short-Term Pollution Event
CG 04 29-Pollution Exclusion-Limited Exception For A Short-Term Pollution Event
CG 04 30-Pollution Exclusion-Limited Exception For Designated Pollutant(s)
Please review each of the new endorsements carefully before using. Listed below, under the individual states, are those that have approved the new endorsements. This text will not be repeated but will refer back to this Countrywide section.
Commercial Auto Endorsements CA 21 39-Arizona Uninsured Motorists Coverage and CA 21 40-Arizona Underinsured Motorists Coverage have been revised as a result of Transportation Ins. Co., v. Martinez, 899 P. 2d 194, 183 Ariz. 33 (Ariz. App. Div. 1 1995). The exclusion for governmental units or agency has been removed. These changes apply to all policies written on or after December 1, 1997.
DISTRICT OF COLUMBIA
Personal Auto Endorsement PP 01 64-Amendment of Policy Provisions-District of Columbia has been revised to allow for the exclusion of liability coverage of an insured for bodily injury to a named insured or family member, for any amount that exceeds the District of Columbia no-fault law. This change is in response to State Farm Mutual Automobile Ins. Co. v. Smalls, 678 A.2d 32 (D.C. App. 1996) and applies to all policies written on or after October 1, 1997.
The new 09 1997 Multistate Pollution Exclusion Optional Endorsements to the CGL have been approved--see Countrywide above. These changes apply to all policies written on or after December 1, 1997.
FLORIDA
Approved are the new and revised 09 97 Multistate General Liability Endorsements Revisions to correspond to the Commercial Lines Manual classification table changes--refer to Countrywide above. These changes apply to all policies written on or after February 1, 1998.
ILLINOIS
A new commercial amendatory endorsement, IL 01 88-Illinois Changes, has been developed to comply with 1995 Ill. Law 89-413 of Ill. Ins. Code Section 154 as it applies to any commercial real property being used for residential purposes and applies to commercial multiple lines, commercial property and farm. This amendatory endorsement adds provisions that limit an insurer's ability to void a policy covering real property of up to four units used primarily for residential purposes. Only those specific reasons stated in the endorsement may be used. This change applies to all policies written on or after December 1, 1997.
The new 09 1997 Multistate Pollution Exclusion Optional Endorsements to the CGL have been approved--see Countrywide above. These changes apply to all policies written on or after October 1, 1997.
The new 1997 multistate home business insurance coverage endorsement titled HOBIZ has been approved with a state-specific amendment to the cancellation provision in Section I-Conditions--refer to Countrywide above. This change applies to all policies written on or after November 1, 1997.
KANSAS
Two personal auto endorsements, PP 03 52-Rating Information-Kansas and PP 03 94-Rating Information (Physical Damage)-Kansas, have been revised to coincide with revisions to the Kansas Classification Plan and the Safe Driver Insurance Plan. These changes apply to all policies written on or after October 1, 1997.
MAINE
The 1997 Multistate Revisions to the Commercial Auto Coverage Forms and Endorsements have been approved--refer to Countrywide above. These changes apply to all policies written on or after January 1, 1998.
MARYLAND
The 1997 Multistate Revisions to the Commercial Auto Coverage Forms and Endorsements have been approved--refer to Countrywide above. These changes apply to all policies written on or after January 1, 1998.
MINNESOTA
In order to reply to the request of the Minnesota Dept. of Commerce and 1996 Minn. Laws (former S.B. 1980) MINN. STAT. Section 65A.01, Section 53, Subdivision 3, revisions have been made to IL 02 45-Minnesota Changes Cancellation and Nonrenewal. This endorsement is mandatory for commercial coverage forms including boiler & machinery, crime, general liability, property, and farm. The revision applies to fire policies covering any building used for residential purposes and provides a condition for the Commissioner of Commerce to be given 30 business days, once notified of an appeal, to render a decision as to whether or not a cancellation is justified solely as a result of the loss of reinsurance. This revision carries a distribution date of December 1997.
The new 09 1997 Multistate Pollution Exclusion Optional Endorsements to the CGL have been approved--see Countrywide above. This revision carries a distribution date of December 1997.
New, Minnesota-specific, optional, 1997 Homeowners Optional Property Remediation For Escaped Liquid Fuel And Limited Lead And Escaped Liquid Fuel Liability Coverage endorsements have been developed--see Countrywide above.
The new endorsements are:
* HO 05 84, Property Remediation For Escaped Liquid Fuel and Limited Lead and Escaped Liquid Fuel Liability Coverages (all forms except HO 00 04 and HO 00 06)
* HO 05 85, Property Remediation For Escaped Liquid Fuel and Limited Lead and Escaped Liquid Fuel Liability Coverages (HO 00 04 only)
* HO 05 86, Property Remediation For Escaped Liquid Fuel and Limited Lead and Escaped Liquid Fuel Liability Coverages (HO 00 06 only)
* HO 05 87, Rating Information--Property Remediation For Escaped Liquid Fuel and Limited Lead and Escaped Liquid Fuel Liability Coverages
* DL 24 97, Limited Lead and Escaped Liquid Fuel Liability and Property Remediation For Escaped Liquid Fuel Coverages
* DL 24 96, Rating Information--Limited Lead and Escaped Liquid Fuel Liability and Property Remediation For Escaped Liquid Fuel Coverages
The above is a simplified recap of the new options. Please review each endorsement carefully before using. These changes apply to all policies written on or after November 1, 1997.
NEW MEXICO
The 1997 Multistate Revisions to the Commercial Auto Coverage Forms and Endorsements have been approved--refer to Countrywide above. These changes apply to all policies written on or after January 1, 1998.
The new 09 1997 Multistate Pollution Exclusion Optional Endorsements to the CGL have been approved--see Countrywide above. These changes apply to all policies written on or after November 1, 1997.
Approved are the new and revised 09 97 Multistate General Liability Endorsements Revisions to correspond to the Commercial Lines Manual classification table changes--refer to Countrywide above. These changes apply to all policies written on or after November 1, 1997.
NEW YORK
Personal Auto Rating Information Endorsements PP 03 66-Rating Information-New York, and PP 03 67-Rating Information-(Physical Damage)-New York have been revised to add the Daytime Running Lights Discount Rule and revisions to the Anti-Theft Discount Rule and the Personal Auto Class Plan. These changes apply to all policies written on or after November 1, 1997.
NORTH DAKOTA
Homeowners Endorsement HO 01 33-Special Provisions-North Dakota has been revised in response to 1997 N.D. Laws (former H.B. 1249) to make an exception to the North Dakota Valued Policy law for structures that are appurtenant to or separate from the main dwelling or building covered by the policy. This change applies to all policies written on or after October 1, 1997.
OHIO
Personal Auto Endorsement PP 04 82-Uninsured Motorists Coverage-Ohio has been revised in response to Ohio Law (former H.B. 261) to clarify that the uninsured motorist coverage provided is as set forth in the law. In addition, new language now allows independent corroborative evidence be used to prove the facts of an accident when a phantom vehicle is involved; further, an exception has been made to the definition of uninsured motorist vehicle which doesn't include a vehicle owned by or regularly used by a named insured or family member, along with another exception to the definition for government owned vehicles. A new exclusion is added for vehicles that are owned but not insured. These changes apply to all policies written on or after December 1, 1997.
OKLAHOMA
Two new commercial lines endorsements have been developed in response to 1997 Oklahoma Sess. Laws (Former H.B. 1625), OK STAT. Title 36 3616.1 (1997) to now provide insurers with the option of excluding trustors from policies where the named insured is a trust and where the covered property is either owned by the trust or an asset of that trust. The first new endorsement is IL 01 93-Oklahoma Exclusion Of Trustor As Named Insured Endorsement, which applies to commercial boiler and machinery, automobile, crime, inland marine, property and farm coverage parts. The second endorsement is BP 01 52-Oklahoma Exclusion Of Trustor As Named Insured Endorsement, for use with the Businessowners program. This change applies to all policies written on or after November 1, 1997.
Commercial Auto Endorsement CA 21 18-Oklahoma Uninsured Motorists Coverage has been revised to clarify the procedure for matching offer of subrogation when the limit of bonds and insurances has been exhausted in judgments or payments, or when a tentative settlement has been reached between the applicable parties. These changes apply to all policies written on or after October 1, 1997.
RHODE ISLAND
A new optional commercial property endorsement, CP 15 56-Business Income Changes-Beginning of the Period of Restoration (No Waiting Period), has been developed and the appropriate manual and rules changes have been revised to allow for the option of eliminating the 72-hour waiting period now found in the Business Income coverages.
In addition, a second new commercial property endorsement has been developed, CP 01 53--Collapse Changes, for use with the Builders Risk Coverage Form, CP 00 20, and the Mortgageholders Errors and Omissions Coverage Form, CP 00 70. Along with this, applicable rule changes also have been made. This new endorsement revises Collapse-Additional Coverage in the two mentioned coverage forms to allow protection for personal property from the collapse cause of loss even if there was no building collapse, and to further clarify that the building does not necessarily have to be covered under the same coverage form, as in the case of lessees. Also added is language to clarify that coverage is provided if defective construction is a contributing factor along with one of the covered causes of loss. Other changes are the renumbering of items and paragraphs to complement the coverage changes.
Both of the new endorsements apply to all policies written on or after November 1, 1997.
SOUTH CAROLINA
The 1997 Multistate Revisions to the Commercial Auto Coverage Forms and Endorsements have been approved--refer to Countrywide above. These changes apply to all policies written on or after January 1, 1998.
Two commercial endorsements have been developed and one existing endorsement has been updated in response to changes in S.C. CODE ANN. Section 15-3-530(8) which changed the time allowed for policyholders to bring action against an insurer from two years to three years. Rules and endorsements now reflect this change. The two new endorsements are: IL 01 94-South Carolina Changes-Legal Action Against Us (applies to commercial property, farm, and standard property policies); and CM 01 22-South Carolina Changes-Legal Action Against Us (applies to commercial crime). The revised endorsement which applies to the Businessowners program is BP 01 21-South Carolina Changes. These revisions apply to all policies written on or after January 1, 1998.
TENNESSEE
The new 1997 multistate home business insurance coverage endorsement titled HOBIZ has been approved--refer to Countrywide above. This change applies to all policies written on or after November 1, 1997.
The new 1997 Homeowners Optional Property Remediation For Escaped Liquid Fuel And Limited Lead And Escaped Liquid Fuel Liability Coverage Endorsements have been approved--refer to the Countrywide section above. These changes apply to all policies written on or after November 1, 1997.
VERMONT
Commercial Auto Endorsement CA 21 63-Vermont Uninsured Motorist Coverage has been revised due to concerns expressed by the Vermont Insurance Department to clarify the matching offer subrogation procedures that apply in the state of Vermont. These changes apply to all policies written on or after January 1, 1998.
WASHINGTON
The 1997 Multistate Revisions to the Commercial Auto Coverage Forms and Endorsements have been approved--refer to Countrywide above. These changes apply to all policies written on or after December 1, 1997.
WEST VIRGINIA
Personal Auto Endorsement PP 04 53-Uninsured/Underinsured Motorists Coverage-West Virginia has been revised in response to Imgrund v. Yarborough and Nationwide Mutual Ins. Co., W. VA. S.E.2d (1997). The West Virginia Supreme Court ruling held that the exclusion for "owned-but-not-insured" is valid and enforceable for both UM and UIM for the amounts that are in excess of the statutory UM limits. These changes apply to all policies written on or after November 1, 1997.
The commercial auto equivalent, CA 21 22-West Virginia Uninsured and Underinsured Motorists Coverage, has been approved and applies to all policies written on or after January 1, 1998.
WISCONSIN
The 1997 Multistate Revisions to the Commercial Auto Coverage Forms and Endorsements have been approved--refer to Countrywide above. These changes apply to all policies written on or after January 1, 1998.
WYOMING
The new 1997 Homeowners Optional Property Remediation For Escaped Liquid Fuel And Limited Lead And Escaped Liquid Fuel Liability Coverage Endorsements have been approved--refer to the Countrywide section above. In addition, HO 01 49-Special Provisions-Wyoming has been revised to provide that the defense costs provision applies to the new endorsements. These changes apply to all policies written on or after December 1, 1997.
A new homeowners endorsement has been developed and approved for use. It allows for replacement cost coverage for personal property. This endorsement applies to all policies written on or after January 1, 1998. *
©COPYRIGHT: The Rough Notes Magazine, 1997