By Diana Kowatch, CPCU, AU, AAM, CPIW
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.
1998 Revisions to the Multistate Interline Endorsements
Changes have been made to a number of multistate interline endorsements to make them applicable to the new Employment-Related Practices Liability Coverage Program and the simplified Professional Liability Program. ISO also has changed the name of the Business Auto Coverage Program to the Commercial Auto Coverage Program. The revised forms include:
IL 00 03--Calculation of Premium
IL 00 17--Common Policy Conditions
IL 00 21--Nuclear Energy Liability Exclusion Endorsement
IL 04 15--Protective Safeguards
IL 09 11--Supplement to Retrospective Premium Endorsement--Final Premium Computation
IL 09 17--Resident Agent Countersignature Endorsement
IL 09 18--Retrospective Premium Endorsement-One Year Plan--Multiple Lines
IL 09 19--Retrospective Premium Endorsement-Three Year Plan--Multiple Lines
IL 09 20--Retrospective Premium Endorsement--Long Term Construction Project--Multiple Lines (For the Employment-Related Practices Liability Coverage Part ONLY)
IL 09 21--Retrospective Premium Endorsement--Short Form
IL 09 22--Retrospective Premium Endorsement--Exclusion of Aviation Exposures
IL 09 23--Retrospective Premium Endorsement--Exclusion of Retrospective Development Factors
IL 12 01--Policy Changes
Listed below under the individual states, are those that have approved the new program. This text will not be repeated but will refer back to this Countrywide section.
1998 Professional Liability Simplified Multistate Forms And Endorsements Revisions.
In order to become current with the current U.S. health care industry, revisions and updates have been made to the Medical Malpractice Professional Liability Program in the format of new coverage forms and endorsements. Simplified language has been developed to modernize both the occurrence and claims-made coverage forms and endorsements. The non-simplified forms will no longer be supported by ISO.
The new Medical Malpractice Program includes forms and endorsements for Physicians, Surgeons, Dentists, Hospital Professional, Allied Health Care Provider, Blood Banks, Diagnostic Testing Laboratories, Optometrists and Veterinarians.
With this revision, the Lawyers Professional Liability Program has been withdrawn.
Please review each of the new forms and endorsements carefully before using, and be careful to determine any state-specific exceptions and deviations from the multistate provisions.
Listed on the following pages under the individual states, are those that have approved the new program. This text will not be repeated but will refer back to this Countrywide section.
Homeowners Endorsement HO 01 04--Special Provisions-California, has been revised to comply with 1996 Cal. State 968--see CAL. INS. Code Sections 10089.16(e)(f) and 10089.29(d) (former A.B. 2086) and 1996 Cal. State. 969--see CAL. INS. Code Section 10089.29(b)(2) (former A.B. 3232). Changes have been made to the endorsement regarding the cancellation and nonrenewal provisions as they apply to residential dwelling and the acceptance, rejection, payment of premium, or nonpayment of premium of or for earthquake coverage. The revised endorsement was available to participating insurers as of November 24, 1997.
FLORIDA
Commercial Property Endorsement CP 03 23--Florida Hurricane Percentage Deductible (Residential Risks) has been revised to comply with 1997 Florida Laws 97-55 (former S.B. 794), which allows a 10% deductible for some types of residential properties that are covered with commercial property policies. The endorsement has been amended accordingly. This change applies to all policies effective on or after April 1, 1998.
GEORGIA
Personal Auto Endorsement PP 01 57--Amendment of Policy Provisions--Georgia, has been revised in response to 1997 Georgia Laws (former S.B. 280). The provision amended is the Our Right To Recover Payment provision as found in the General Provision section of the endorsement. The amendments have been made to clarify that the insurer is entitled to recovery under the Medical Payments coverage only after the insured has been fully compensated for damages and that the amount of the insurer's portion of the recovery will be reduced by the legal fees and expenses incurred by the injured person who initiated the claim. This change applies to all policies written on or after February 1, 1998.
KENTUCKY
The 1998 Revisions to the Multistate Interline Endorsements have been approved--refer to the Countrywide section above. These changes apply to all policies written on or after April 1, 1998.
MARYLAND
Three commercial endorsements have been revised in order to comply with article 48a of the Insurance Code, Section 734 to 737 of the Maryland Lead Poisoning Prevention Program Act and Maryland 1997 Laws (former S.B. 17) as they respond to liability for lead hazards. The revised endorsements have been approved and they are as follows:
BP 04 44--Maryland Changes--Liability For Hazards Of Lead, to be used with the Businessowners Liability coverage form;
CG 04 27--Maryland Changes--Liability For Hazards Of Lead, to be used with the Commercial General Liability coverage part;
FL 04 82--Maryland Changes--Liability For Hazards Of Lead, to be used with the Farm Liability coverage form.
These changes apply to all policies effective on or after June 1, 1998.
MICHIGAN
The 1998 Revisions to the Multistate Interline Endorsements have been approved--refer to the Countrywide section above. These changes apply to all policies written on or after April 1, 1998.
MONTANA
The 1998 Revisions to the Multistate Interline Endorsements have been approved--refer to the Countrywide section above. These changes apply to all policies written on or after April 1, 1998.
Revisions have been made to Commercial Auto Endorsement CA 21 52--Montana Uninsured Motorist Coverage, in response to 1997 Montana Laws (former S.B. 44) which prevents the adding together or stacking of limits in multiple policies issued by the same insurer. The affected provision is TWO OR MORE COVERAGE FORMS OR POLICIES ISSUED BY US. These changes are applicable to all policies written on or after April 1, 1998.
NEW JERSEY
Two personal auto endorsements, PP 01 81--Amendment of Policy Provisions--New Jersey and PP 05 77--Personal Injury Protection Coverage--New Jersey, have been revised to comply with Sections 13 & 27 of NJ P.L. 1997 c. 151 (former S.B. 2223) and 197 NJ Laws (former S.B. 862). The revisions include the addition of two exclusions to personal injury protection coverage which eliminates coverage for bodily injury to an insured convicted of or who pleads guilty to driving under the influence of alcohol or drugs or who refuses to take a chemical analysis test. Also, insurer cancellation and nonrenewal provisions have been rewritten to comply with the New Jersey Automobile Reparation Reform Act. These changes apply to all policies written on or after April 1, 1998.
NEW YORK
Numerous commercial lines interline endorsements have been added or existing ones have been revised to make them applicable to the new Employment-Related Practices Liability Coverage Program and to delete reference to the Commercial Automobile coverage part. Many of these are state-specific. New and changed endorsements include: IL 00 17 11 85--Common Policy Conditions; IL 00 23 04 98--Nuclear Energy Liability Exclusion Endorsement (Broad Form); IL 04 15--Protective Safeguards; IL 09 11 Supplement to Retrospective Premium Endorsement--Final Premium Computation; IL 09 17--Resident Agent Countersignature; IL 09 18--Retrospective Premium Endorsement--One Year Plan--Multiple Lines; IL 09 l9--Retrospective Premium Endorsement--Three Year Plan--Multiple Lines; IL 09 20--Retrospective Premium Endorsement--Long Term Construction Project--Multiple Lines; IL 09 21--Retrospective Premium Endorsement--Short Form; IL 09 22--Retrospective Premium Endorsement--Exclusion of Aviation Exposures; IL 09 23--Retrospective Premium Endorsement--Exclusion of Retrospective Development Factors; IL 12 01--Policy Changes; IL 01 83--New York Changes--Fraud; IL 01 85--Calculation of Premium; and IL 02 68--New York Changes--Cancellation and Nonrenewal. These changes apply to all policies written on or after April 1, 1998.
RHODE ISLAND
Two new amendatory endorsements have been developed for the Boiler and Machinery and the Commercial Property Programs at the request of the Rhode Island Insurance Division. The concern expressed by the division centered on the 90-day time period for reimbursement of insureds for covered losses in the Arbitration provision. The new endorsements provide for a 30-day reimbursement to comply with Rhode Island's Unfair Property/Casualty Claims Settlement Practices Regulation. The new endorsements are: BM 01 29--Rhode Island Changes--Joint Or Disputed Loss Agreement Endorsement, for use with boiler and machinery policies and CP 12 71--Rhode Island Changes--Joint Or Disputed Loss Agreement Endorsement, for use with commercial property policies.
Also amended is BM 01 28--Rhode Island Changes--Exclusions, regarding certain freezing losses. If a freezing loss is caused by cold weather, it is not excluded under the boiler and machinery policy unless there is coverage for the loss in another insurance policy.
These changes apply to all policies written on or after January 1, 1998.
Personal auto revisions have been made to PP 01 89--Amendment of Policy Provisions--Rhode Island. These amendments were made to comply with Rhode Island Pub. Laws (former H.B. 6476) as it applies to the provision for Other Insurance. The endorsement now clarifies that for vehicles that are not owned by an insured coverage is excess--except for rented vehicles that the insured has a written rental agreement for mandating the operator to carry primary insurance. The agreement must be in at least 10-point type. If the rental agreement does not so state, coverage is excess. These changes apply to all policies written on or after February 1, 1998.
The 1998 Revisions to the Multistate Interline Endorsements have been approved--refer to the Countrywide section above. Included in this approval are state-specific revisions. These changes apply to all policies written on or after April 1, 1998.
The 1998 Professional Liability Simplified Multistate Forms and Endorsements Revisions have been approved--refer to Countrywide above. These changes apply to all policies written on or after April 1, 1998.
SOUTH CAROLINA
The 1997 Multistate Revisions to the Commercial General Liability Policy have been approved with state-specific amendments. These changes apply to all policies written on or after January 1, 1998.
Two personal lines endorsements have been revised to amend the Suit Against Us Condition in response to S.C. Code Ann. Section 115-3-530(8), which allows the insured up to three years from the date of loss to bring action against the insurer. The revised endorsements are: HO 01 39--Special Provisions--South Carolina (for homeowners policies); DP 01 39--Special Provisions--South Carolina (for dwelling policies); and IPL 01 41--South Carolina Amendatory Endorsement (for personal inland marine policies). These changes apply to all policies written on or after January 1, 1998.
VERMONT
A Home Business Insurance Coverage Optional Vermont-specific Endorsement, with related rules and rates providing first- and third-party coverages for certain types of businesses that are conducted from the residence premises, has been approved for all policies written on or after March 1, 1998. The endorsement number is HO 23 24--Home Business Endorsement.
VIRGINIA
Two new mandatory general liability endorsements have been developed to provide coverage for bodily injury resulting from fumes, vapor and the like, from heating equipment in property owned, rented or occupied by an insured. The new endorsements are: CG 26 47--Virginia Changes--Amendment of Pollution Exclusion--Exception For Building Heating Equipment, which applies to the Commercial General Liability Program and CG 31 02--Virginia Changes--Amendment of Pollution Exclusion--Exception For Building Heating Equipment, which applies to the Contractors Protective Liability Program. These changes apply to all policies effective on or after May 1, 1998. *
©COPYRIGHT: The Rough Notes Magazine, 1998