COUNTRYWIDE
1998 general liability multistate forms revisions
Pollution
A new exception to the pollution exclusion has been added which now provides coverage for injury or damage that results from the release of gases, fumes or vapors from materials that have been brought into a building in connection with operations performed by or on behalf of the insured. Items such as paint, cleaning solvents, chemical treatments or carpet/tile glue brought into a building by the insured, or a contractor of the insured, that are used to repair or service the building are no longer excluded.
Another important exception to the exclusion is that if property damage to a third party is covered by the policy, any resultant cleanup claims also will be covered.
Personal and advertising injury liability
There is now one combined definition for personal and advertising injury liability. Two advertising injury offense definitions have been amended. The first on misappropriation of advertising ideas or style of business has been changed to: "The use of another's advertising idea in your 'advertisement.' " The second on infringement of copyright, title or slogan has been rewritten to: "Infringing upon another's copyright, trade dress or slogan in your 'advertisement.' " Bodily injury that is suffered as a consequence of a covered personal and advertising injury offense now is covered.
The exclusion regarding willful violation of a penal statute or ordinance has been replaced with an exclusion that simply states: "Arising out of a criminal act committed by or at the direction of any insured;" A new exclusion is added which eliminates personal and advertising injury coverage for insureds in the business of advertising, broadcasting, publishing or telecasting. Advertisement is now a defined term.
Coverage for damage to premises rented to an insured
An exception to the property damage exclusion (j.) has been added which gives premises liability coverage including contents of the premises for property of others at a location the insured is renting for seven consecutive days or less.
OTHER CHANGES--Changes to other liability programs have been made to reflect the above CGL revisions. Numerous endorsements have also been amended accordingly. Time and attention should be given to analyses of the overall impact of this revision upon an individual insured.
The 06-95 Multistate Revisions to the Commercial Property Program--forms, rules and loss costs--have been approved along with state-specific changes and endorsements, for all policies written on or after January 1, 1999.
Four new state change endorsements for the Commercial Property Program have been developed to comply with the concerns of the Alaska Insurance Division regarding multistate forms. In the provision regarding Duties In The Event Of Loss, the insured has been informed in the provision that legal counsel may be present at examinations under oath. In the Legal Action Against Us provision, Alaska allows suits against insurers to be brought up to three years in some cases and six years in others, after the date the loss or damage has occurred. Further, Alaska prohibits an entire policy from being voided, so the condition for Concealment, Misrepresentation or Fraud has been clarified. The new forms are:
BM 01 30--Alaska Changes (used with boiler and machinery)
CM 01 23--Alaska Changes (used with commercial inland marine)
CR 01 36--Alaska Changes (used with commercial crime)
FP 01 72--Alaska Changes (used with farm property)
These new endorsements apply to all policies written on or after December 1, 1998.
Optional new and additional multistate Year 2000 garage, general liability, simplified professional liability, businessowners and homeowners endorsements have been approved with a distribution date of November 1, 1998.
ARIZONA
Personal Auto Endorsement PP 01 67--Amendment of Policy Provisions--Arizona has been revised in response to 1998 Arizona Sessions Laws (former S.B. 1273) to state that in accidents with no physical contact, the party making claim must provide corroboration that another vehicle caused the accident. Also revised is the Recover provision in Part B--Medical Payments where in cases where the insured makes a recovery, the insurer is entitled to proceeds. These changes apply to all policies written on or after January 1, 1999.
Commercial Auto Endorsement CA 02 02--Arizona Changes--Cancellation has been withdrawn because the provisions stated in the endorsement do not apply to commercial auto. These changes apply to all policies written on or after December 1, 1998.
Optional Multistate Year 2000 new garage endorsements have been approved. These changes apply to all policies written on or after November 1, 1998.
CALIFORNIA
Optional new Multistate Year 2000 simplified professional liability endorsements have been approved. These changes are approved for ISO-approved insurers effective March 17, 1998.
Approval has been received for the new Multistate Employment-Related Practices Liability Program. The 1998 Multistate Simplified Professional Liability and its revisions have been approved. Also approved are the 1998 Revisions to the Multistate Interline Endorsements. All of these changes are approved for ISO participating insurers as of January 27, 1998.
COLORADO
Optional Multistate Year 2000 additional commercial general liability endorsements have been approved. These changes carry a December 1998 distribution date.
DISTRICT OF COLUMBIA
The 1998 General Liability Multistate Forms Revisions have been approved including state-specific supplements. Refer to the Countrywide section. These changes apply to all policies written on or after February 1, 1999.
The revised Common Policy Conditions for Commercial Lines coverage parts have been approved. This change applies to all policies written on or after February 1, 1999.
FLORIDA
Homeowners Endorsement HO 01 09--Special Provisions--Florida has been revised to comply with FLA.STAT.Sect. 741.24, regarding the responsibility of parents of a minor who causes willful destruction or theft to property of others. The previous $2,500 maximum recovery has been deleted by 1988 Fla. Laws, c. 88-381, s 36. The endorsement has been amended accordingly. These changes apply to all policies effective on or after January 1, 1999.
ILLINOIS
In order to comply with the Illinois Department of Insurance on pollution, General Liability Endorsement CG 28 28--Illinois Changes--Extended Reporting Period has been revised accordingly. Two additional endorsements also have been developed: CG 28 78--Illinois Extended Reporting Period Endorsement; and CG 28 79--Illinois Extended Reporting Period Endorsement. Multistate Endorsement CG 28 01--Extended Reporting Period Endorsement has been withdrawn in Illinois. These changes apply to all policies written on or after January 1, 1999.
KANSAS
In response to the decision in Friday v. Trinity Universal of Kansas 924 P.2d 1284 (Kan., 1998), Commercial Auto Endorsement CA 01 22--Kansas Changes has been amended. The appraisal condition applying to physical damage losses has been amended to show clearly that the appraisal process is voluntary and must be agreed to by both parties--however, once reached, the decision is binding. This change applies to all policies written on or after December 1, 1998.
The 1998 Multistate Commercial Crime Revisions have been approved. These changes apply to all policies written on or after January 1, 1999.
LOUISIANA
The 1998 Multistate Commercial Crime Revisions have been approved. These changes apply to all policies effective on or after February 1, 1999.
MAINE
Optional Multistate Year 2000 new and/or additional commercial general liability, garage, businessowners, homeowners and simplified professional liability program endorsements have been approved. A condition for the garage approval is that the usage of the endorsement must be in compliance with the approval letter of The Maine Department of Professional and Financial Regulation, Bureau of Insurance, dated September 10, 1998. These changes apply to all policies written on or after November 1, 1998.
MASSACHUSETTS
Optional Multistate Year 2000 new, additional and/or revised commercial general liability, businessowners, boiler and machinery, commercial fire, commercial inland marine, and commercial crime endorsements have been approved. These changes apply to all policies written on or after November 1, 1998. The homeowners and dwelling liability endorsements have been disapproved.
MICHIGAN
An adjustment has been made to the maximum amount recoverable for Work Loss and Survivors' Benefits in the personal protection insurance coverage found in both commercial and personal auto contracts. The new maximum is $3,688 per month. Endorsements CA 22 20--Michigan Personal Injury Protection and PP 05 90--Personal Injury Protection Coverage--Michigan have both been amended accordingly. These changes are effective October 1, 1998.
NEBRASKA
Optional Multistate Year 2000 new and/or additional commercial general liability program endorsements have been approved. These changes apply to all policies written on or after November 1, 1998.
NEW JERSEY
The new homeowners zip code-based earthquake territories and revised rule and loss costs have been approved for use including revisions to Endorsement HO 04 54--Earthquake. The endorsement revisions affect the application of the earthquake deductible. These changes apply to all policies written on or after January 1, 1999.
NEW YORK
Optional additional Multistate Year 2000 commercial general liability endorsements have been approved. These changes apply to all policies written on or after January 1, 1999.
PENNSYLVANIA
A new commercial endorsement (IL 01 66--Pennsylvania Changes--Actual Cash Value) has been developed and one current endorsement (BP 01 42--Pennsylvania Changes) has been revised to define the term: actual cash value. These changes apply to all policies written on or after January 1, 1999.
Four personal auto endorsements have been revised in response to the ruling in Rump v. Aetna Casualty and Surety CO., PA A.2d (1998) where it was determined that when an insured has selected the limited tort option, the insured is not entitled to collect non-economic losses or damages under either uninsured or underinsured motorist coverage. The four affected endorsements are:
* PP 04 17--Underinsured Motorists Coverage--Pennsylvania (Non-Stacked)
* PP 04 19--Underinsured Motorists Coverage--Pennsylvania (Stacked)
* PP 04 21--Uninsured Motorists Coverage--Pennsylvania (Non-Stacked)
PP 04 23--Uninsured Motorists Coverage--Pennsylvania (Stacked)
These changes apply to all policies written on or after December 1, 1998.
SOUTH CAROLINA
Approval has been received for the 06/95 revisions to the Commercial Fire And Allied Lines Program including loss costs, manual rules, forms, endorsement, classifications and rating plan. These changes apply to all policies written on or after January 1, 1999.
The 1998 Multistate Commercial Crime Revisions have been approved. These changes apply to all policies written on or after January 1, 1999.
UTAH
Personal Auto Endorsement PP 01 93--Amendment of Policy Provisions--Utah has been revised to reflect recent law changes. Responding to 1998 Utah Laws (former S.B. 76 and UTAH CODE ANN. 31A-22-314), vehicle rental operations will provide primary insurance coverage to renters that at least meet the state's financial responsibility limits unless there is other valid or collectible insurance. In 1998 Utah Laws (former S.B. 60 and UTAH CODE ANN. 31A-22-303, the insurance of the permissive user is primary and the insurance of the renter or motor vehicle business is secondary. These changes apply to all policies written on or after February 1, 1999.
VERMONT
In response to 1998 VT Laws 117 (former S.B. 185), Commercial Auto Endorsement CA 21 63--Vermont Uninsured Motorist Coverage has been revised to explain that in cases of subrogation as explained in the Transfer of Rights of Recovery provision, if a party other than the insurer makes recovery and must reimburse the insurer, the party making the recovery can deduct and retain reasonable expenses. This change applies to all policies written on or after January 1, 1999.
VIRGINIA
BP 01 32--Virginia Changes has been revised to clarify that while the condition regarding inspections, surveys, reports or recommendations does not warrant that those conditions are safe, healthful or comply with laws, codes or regulations--there is one exception. If the inspection or survey pertains specifically to the certification of boilers, pressure vessels or elevators, under state or municipal statute, the condition does not apply. This change applies to all policies effective on or after January 1, 1999.
Optional Multistate Year 2000 garage endorsements have been disapproved.
Optional new Multistate Year 2000 businessowners endorsements have been approved. These changes apply to all policies effective on or after December 1, 1998.
WEST VIRGINIA
Personal Auto Endorsement PP 01 58--Amendment of Policy Provision--West Virginia has been revised within the termination provision to eliminate the reference to notices being sent by registered or certified mail. This change applies to all policies written on or after January 1, 1999. *
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.
©COPYRIGHT: The Rough Notes Magazine, 1998