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
1998 Professional Liability Simplified Multistate Forms And Endorsements Revisions.
In order for the medical malpractice professional liability program to become current with the current U.S. health care industry, it has been revised and updated in the format of new coverage forms and endorsements. Simplified language modernizes 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With this revision, the Lawyers Professional Liability Program has been withdrawn.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 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 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. Also, changes have been made to the terminology of the Business Auto Coverage Program and 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.
The 1998 Professional Liability Simplified Multistate Forms And Endorsements Revisions have been approved--refer to Countrywide above. Also approved is an Alabama-specific state supplement. These changes apply to all policies written on or after April 1, 1998.
The 1998 Revisions to the Multistate Interline Endorsements have been approved--refer to Countrywide above. These changes apply to all policies written on or after April 1, 1998.
ALASKA
Personal Auto Endorsement PP 03 71--Limited Attorney Fee Coverage--Alaska, has been revised in response to State Farm Mutual Ins. Co., vs. Harrington, 918 P.2d 1022 (Alaska Sup. Ct. 1996) as it relates to Alaska Civil Rule of Procedure 82, to provide limited coverage for attorney's fees for uninsured and underinsured motorist coverages, if those coverages are provided in the policy. These changes apply to all policies written on or after January 1, 1998.
ARIZONA
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.
The 1998 Revisions to the Multistate Interline Endorsements have been approved--refer to Countrywide above. Also approved is an Arizona-specific state supplement. These changes apply to all policies written on or after April 1, 1998.
ARKANSAS
The 1998 Professional Liability Simplified Multistate Forms And Endorsements Revisions have been approved--refer to Countrywide above. Also approved is an Arkansas-specific state supplement. These changes apply to all policies written on or after April 1, 1998.
The 1998 Revisions to the Multistate Interline Endorsements have been approved--refer to Countrywide above. Also approved is an Arkansas-specific state supplement. These changes apply to all policies written on or after April 1, 1998.
CALIFORNIA
A new endorsement, CP 15 56--Business Income Changes--Beginning Of The Period Of Restoration (No Waiting Period), has been developed to eliminate the 72-hour waiting period deductible in the Business Income coverage forms (both with or without Extra Expense.) This change was approved for insurer use effective October 23, 1997.
COLORADO
The 1998 Professional Liability Simplified Multistate Forms And Endorsements Revisions have been approved--refer to Countrywide above. Also approved is a Colorado-specific state supplement. ISO does not establish an effective date for these revisions in Colorado.
The 1998 Revisions to the Multistate Interline Endorsements have been approved--refer to Countrywide above. Also approved is a Colorado-specific state supplement. ISO does not establish an effective date for these revisions in Colorado.
CONNECTICUT
In the recent state approval of the 1997 revisions to the Businessowners Program, the Connecticut Insurance Department had a concern with BP 02 11--Connecticut Changes--Cancellation And Nonrenewal, as it applied to professional liability insurance. Thus, BP 02 11 has been revised to change the wording in the professional liability cancellation provision where it references the "first Named Insured shown in the Declarations" to "you." This change applies to all policies effective on or after March 1, 1998.
DELAWARE
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.
The 1998 Revisions to the Multistate Interline Endorsements have been approved--refer to Countrywide above. These changes apply to all policies written on or after April 1, 1998.
DISTRICT OF COLUMBIA
The 1998 Professional Liability Simplified Multistate Forms And Endorsements Revisions have been approved--refer to Countrywide above. Also approved is a District of Columbia-specific supplement. These changes apply to all policies written on or after April 1, 1998.
The 1998 Revisions to the Multistate Interline Endorsements have been approved--refer to Countrywide above. Also approved is a District of Columbia-specific supplement. These changes apply to all policies written on or after April 1, 1998.
1997 Multistate Revisions To The Commercial Auto Coverage Forms And Endorsements have been approved in D.C. Some of the changes are: 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 $250 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 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 the Garage Coverage Form--CA 00 05, the physical damage exclusion 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 has been added for insurers to insert a coverage not listed 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 also are 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--Customers 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. These changes apply to all policies written on or after January 1, 1998.
INDIANA
The 1998 Professional Liability Simplified Multistate Forms And Endorsements Revisions have been approved--refer to Countrywide above. Also approved is an Indiana-specific state supplement. These changes apply to all policies written on or after April 1, 1998.
The 1998 Revisions to the Multistate Interline Endorsements have been approved--refer to Countrywide above. Also approved is an Indiana-specific state supplement. These changes apply to all policies written on or after April 1, 1998.
IOWA
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.
The 1998 Revisions to the Multistate Interline Endorsements have been approved--refer to Countrywide above. Also approved is an Iowa-specific state supplement. These changes apply to all policies written on or after April 1, 1998.
KANSAS
A new homeowners endorsement has been filed to offer Functional Replacement Cost as a loss settlement option for HO 00 02 and HO 00 03 coverage forms. The new endorsement is titled Functional Replacement Cost Loss Settlement--HO 05 30. This change applies to all policies written on or after February 1, 1998.
KENTUCKY
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.
The 1998 Revisions to the Multistate Interline Endorsements have been approved--refer to Countrywide above. These changes apply to all policies written on or after April 1, 1998.
LOUISIANA
Announcement has been made that Louisiana has approved and introduced the Commercial Auto Motor Carrier coverage form--the 1993 version. Also approved are the other 1993 revisions to the ISO Commercial Auto coverage forms and components of the ISO Commercial Auto programs. Included are a number of state-specific amendments and endorsements, which have been revised accordingly. These changes apply to all policies effective on or after April 1, 1998.
MARYLAND
The 1998 Professional Liability Simplified Multistate Forms And Endorsements Revisions have been approved--refer to Countrywide above. Also approved is a Maryland-specific state supplement. These changes apply to all policies written on or after June 1, 1998.
The 1998 Revisions to the Multistate Interline Endorsements have been approved--refer to Countrywide above. These changes apply to all policies written on or after June 1, 1998.
MICHIGAN
The 1998 Professional Liability Simplified Multistate Forms And Endorsements Revisions have been approved--refer to Countrywide above. Also approved is a Michigan-specific state supplement. These changes apply to all policies written on or after April 1, 1998.
The 1998 Revisions to the Multistate Interline Endorsements have been approved--refer to Countrywide above. These changes apply to all policies written on or after April 1, 1998.
Michigan has approved a commercial claims-made general liability policy program for underground storage tanks. This policy was developed in response to the Environmental Protection Agency's (EPA) finalization of regulations on financial responsibility and subsequent requirements for the owners and operators of underground storage tanks. The program is titled "Underground Storage Tank (UST) Policy Program." For those insurers that elect to support this program, the policy will pay for a covered UST incident, which exceeds the deductible, based on the sum for all damages and corrective action costs. Total amount paid will be either the amount of the actual damages and corrective action costs, or the UST Incident limit, whichever is least. Forms and endorsements for the program include: CG 00 42--Underground Storage Tank Policy; CG 30 57--Supplemental Extended Reporting Period Endorsement; CG 24 01--Non-Binding Arbitration Endorsement; and CG 30 32--Michigan Changes. This change applies to all policies written on or after February 1, 1998.
MINNESOTA
Commercial Auto Endorsement CA 22 25--Minnesota Personal Injury Protection was previously revised in response to 1996 Min.. Laws (former S.B. 1980, Section 58) MINN. STAT. 65B.47 Subd. 1a. to allow taxi drivers to seek PIP coverage under their own PIP policy instead of the policy covering the vehicle. However, since this allowance applies only to policies issued or renewed for a limited period of time (on September 1, 1996, and prior to September 1, 1997), the wording for the exception to the exclusion for taxi drivers has been removed. ISO dos not establish effective dates for commercial auto changes in this state; however, the distribution date is April 1, 1998.
Personal Auto Endorsement PP 05 67--Personal Injury Protection Coverage--Minnesota also has been revised accordingly. This change applies to all policies written on or after January 1, 1998,
MISSISSIPPI
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.
The 1998 Revisions to the Multistate Interline Endorsements have been approved--refer to Countrywide above. Also approved is a Mississippi-specific state supplement. ISO does not establish an effective date for these types of revisions for these lines of business.
MISSOURI
The 1998 Professional Liability Simplified Multistate Forms And Endorsements Revisions have been approved--refer to Countrywide above. Also approved is a Missouri-specific state supplement. These changes apply to all policies written on or after April 1, 1998.
The 1998 Revisions to the Multistate Interline Endorsements have been approved--refer to Countrywide above. Also approved is a Missouri-specific state supplement. These changes apply to all policies written on or after April 1, 1998.
MONTANA
The 1998 Professional Liability Simplified Multistate Forms And Endorsements Revisions have been approved--refer to Countrywide above. Also approved is a Montana-specific state supplement. These changes apply to all policies written on or after April 1, 1998.
The 1998 Revisions to the Multistate Interline Endorsements have been approved--refer to Countrywide above. These changes apply to all policies written on or after April 1, 1998.
Personal Auto Endorsement PP 01 83, Amendment of Policy Provisions--Montana has been revised to comply with 1997 Montana Laws (former SB 266) which provides for conditional subrogation rights for the insurer and attempts to eliminate duplicate payments for the same elements of loss under motor vehicle and other casualty policies. Part F--General Provision Regarding Our Right To Recover Payment, the exception in Two or More Auto Policies, and Part B--Medical Payments Coverage, have been revised accordingly. This change applies to all policies written on or after January 1, 1998.
NEVADA
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.
The 1998 Revisions to the Multistate Interline Endorsements have been approved--refer to Countrywide above. Also approved is a Nevada-specific state supplement. These changes apply to all policies written on or after April 1, 1998.
NEW JERSEY
A new version of the Homeowners Optional Property Remediation For Escaped Liquid Fuel And Limited Lead And Escaped Liquid Fuel Liability Coverage Program has been approved. Four new endorsements have been developed to provide homeowners 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 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 76, 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 77, Property Remediation For Escaped Liquid Fuel and Limited Lead and Escaped Liquid Fuel Liability Coverages (HO 00 04 only)
* HO 05 78, Property Remediation For Escaped Liquid Fuel and Limited Lead and Escaped Liquid Fuel Liability Coverages (HO 00 06 only)
* HO 05 79, 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 options. Please review each endorsement carefully before using. These changes apply to all policies written on or after March 1, 1998.
NEW MEXICO
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.
The 1998 Revisions to the Multistate Interline Endorsements have been approved--refer to Countrywide above. These changes apply to all policies written on or after April 1, 1998.
Homeowners endorsement HO 01 30--Special Provisions--New Mexico has been revised to comply with the 1997 New Mexico Laws (former HB 346) which established the "Domestic Abuse Insurance Protection Act." In this act, intentional acts or conduct of an abusive spouse are excluded for the spouse committing the act but cannot be excluded for the innocent insured spouse to the extent of that spouse's interest in the property. Accordingly, the Section 1--Intentional Loss Exclusions and the Subrogation Condition have been revised. This change applies to all policies written on or after January 1, 1998.
NEW YORK
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.
The 1998 Revisions to the Multistate Interline Endorsements have been approved--refer to Countrywide above. These changes apply to all policies written on or after April 1, 1998.
NORTH DAKOTA
The 1998 Professional Liability Simplified Multistate Forms And Endorsements Revisions have been approved--refer to Countrywide above. Also approved is a North Dakota-specific state supplement. These changes apply to all policies written on or after April 1, 1998.
The 1998 Revisions to the Multistate Interline Endorsements have been approved--refer to Countrywide above. Also approved is a North Dakota-specific state supplement. These changes apply to all policies written on or after April 1, 1998.
OREGON
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.
The 1998 Revisions to the Multistate Interline Endorsements have been approved--refer to Countrywide above. Also approved is an Oregon-specific state supplement. These changes apply to all policies written on or after April 1, 1998.
PENNSYLVANIA
The 1998 Professional Liability Simplified Multistate Forms And Endorsements Revisions have been approved--refer to Countrywide above. Also approved is a Pennsylvania-specific state supplement. These changes apply to all policies written on or after April 1, 1998.
The 1998 Revisions to the Multistate Interline Endorsements have been approved--refer to Countrywide above. Also approved is a Pennsylvania-specific state supplement. ISO does not establish an effective date for these types of revisions for these lines of business.
UTAH
The 1998 Professional Liability Simplified Multistate Forms And Endorsements Revisions have been approved--refer to Countrywide above. Also approved is a Utah-specific state supplement. These changes apply to all policies written on or after April 1, 1998.
The 1998 Revisions to the Multistate Interline Endorsements have been approved--refer to Countrywide above. Also approved is a Utah-specific state supplement. These changes apply to all policies written on or after April 1, 1998.
VERMONT
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.
The 1998 Revisions to the Multistate Interline Endorsements have been approved--refer to Countrywide above. Also approved is a Vermont-specific state supplement. These changes apply to all policies written on or after April 1, 1998.
VIRGINIA
The Businessowners Pollution exclusion has been revised by use of BP 01 32--Virginia Changes, to allow coverage for pollution caused by heating equipment, similar to the exclusion found in the CGL. This change applies to all policies effective on or after January 1, 1998.
WYOMING
The 1998 Professional Liability Simplified Multistate Forms And Endorsements Revisions have been approved--refer to Countrywide above. Also approved is a Wyoming-specific state supplement. These changes apply to all policies written on or after April 1, 1998.
The 1998 Revisions to the Multistate Interline Endorsements have been approved--refer to Countrywide above. Also approved is a Wyoming-specific State supplement. These changes apply to all policies written on or after April 1, 1998. *
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