COUNTRYWIDE
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 the name of the Business Auto Coverage Program was changed 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 Multistate Commercial Crime Revisions
Revisions have been made to Commercial Crime coverages to allow options in the treatment of loss. Selection may be either on a discovery basis or on a loss-sustained basis. The discovery basis provides for losses discovered during the policy period but not necessarily sustained during the policy period (an approach similar to claims-made liability). The loss-sustained basis covers only losses sustained and discovered within the policy period or discovered within one year of the end of the policy period.
The title of existing Form CR 10 00 has been changed to Crime General Provisions (Loss-Sustained Form). A new form has been developed, CR 11 00--Crime General Provisions (Discovery Form).
Similarly, the title of existing Form CR 50 01 has been changed to Policy Change (Loss Sustained Form). A new form has been developed, CR 50 09--Policy Change (Discovery Form).
In another change, a new endorsement has been developed to treat leased workers as covered employees, CR 50 10--Include Leased Workers As Employees.
New endorsements have been developed for the program changes including:
CR 50 05--Policy Bridge; Discovery Replacing Loss Sustained
CR 50 06--Include Retroactive Date For Named Insured
CR 50 07--Include Retroactive Date For Specified Joint Insured
CR 50 08--Include Retroactive Date For An Entity Acquired through Consolidation Or Merger
One other form has been revised to reflect the above changes, CR 50 04--Coindemnity.
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.
Year 2000 Businessowners Endorsements
Two property and three liability endorsements have been developed specifically for the BOP program to address the Year 2000 issue.
BP 10 04--Exclusion of Certain Computer-Related Losses is a mandatory property endorsement that should be attached to all businessowners policies. It has been designed to reinforce the fact that there is no first-party property coverage in the BOP for Year 2000 losses.
BP 04 58--Business Income And Extra Expense Coverage For Year 2000 Computer-Related And Other Electronic Problems is an optional endorsement which is very different in two important ways from other business income and extra expense coverage. First, business operations do not necessarily have to be suspended for coverage to be triggered. Second, direct physical damage coverage is not required either. The amount of coverage is limited to an annual aggregate of $25,000.
BP 10 05--Exclusion--Year 2000 Computer-Related And Other Electronic Problems is an optional general liability endorsement that is designed to eliminate bodily injury, property damage, personal injury, and advertising injury liability coverage for loss or injury resulting from any actual or alleged Y2k (failure to recognize a year-date) hardware or software failure or any related advice, consultation, design, evaluation, inspection, installation, maintenance, repair, replacement or supervision. It is considered a "total" exclusion endorsement.
BP 10 06--Exclusion--Year 2000 Computer-Related And Other Electronic Problems (Products-Completed Operations Hazard) is similar to BP 10 05 but is designed only to exclude Year 2000 losses from the Products-Completed Operations Hazard.
BP 04 64--Year 2000 Computer-Related And Other Electronic Problems--Limited Coverage Options has been developed to allow ISO-based insurers to offer limited Y2k liability coverage for specified premises or operations scheduled in the endorsement.
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.
ALASKA
The 1998 Multistate Commercial Crime Revisions have been approved--see Countrywide above. These changes apply to all policies written on or after July 1, 1998.
ARIZONA
The 1998 Multistate Commercial Crime Revisions have been approved--see Countrywide above. These changes apply to all policies written on or after July 1, 1998.
CALIFORNIA
Revisions have been made to Homeowners Endorsement HO 01 04--Special Provisions--California, with respect to the Additional Coverages, item 8., Collapse. With the introduction and increased usage of new types of construction, such as Exterior Insulation and Finish Systems (which appear to allow problems such as water seepage that ultimately damage the structural integrity of the building), the Collapse cause of loss is being interpreted by the courts as providing insurance coverage for this type of loss. Accordingly, policy language has been revised to clarify that it is not the intent of the insurance contract to cover this type of loss. This change was approved for use by participating insurers as of February 27, 1998.
The 1998 Multistate Commercial Crime Revisions have been approved with state-specific amendments--see Countrywide above. Due to the state-specific changes, make sure to review the entire program carefully to understand its full impact. These changes have been approved and may be used by participating insurers; however, the approval date varies by form.
COLORADO
The 1998 Multistate Commercial Crime Revisions have been approved--see Countrywide above. These changes carry a distribution date of August, 1998.
DELAWARE
As a result of Nationwide General Ins. Co. v. Seeman, 702 A.2d 915 (Del. 1997) and subsequent 1997 Del. Laws (former House Bill 256), Personal Auto Endorsement PP 01 52, Amendment of Policy Provisions--Delaware has been revised. The revisions remove the exclusion for bodily injury to the insured or family member because it has been determined to be unenforceable. Further, the insurer is prohibited from canceling or non-renewing a policy based solely on the suspension or revocation of a child's driver's license when that child is delinquent or has a non-driving related drug offense. These changes are to all policies written on or after September 1, 1998.
Based upon the same circumstances mentioned above, Commercial Automobile Endorsement PA 02 55--Delaware Cancellation Changes also has been revised accordingly. These changes apply to all policies written on or after October 1, 1998.
DISTRICT OF COLUMBIA
The 1998 Multistate Commercial Crime Revisions have been approved--see Countrywide above. These changes apply to all policies written on or after July 1, 1998.
FLORIDA
Revisions have been made to Homeowners Endorsement HO 01 09--Special Provisions--Florida, with respect to the Additional Coverages, item 8., Collapse. With the introduction and increased usage of new types of construction, such as the Exterior Insulation and Finish Systems (which appear to allow problems such as water seepage that ultimately damage the structural integrity of the building), the Collapse cause of loss is being interpreted by the courts as providing insurance coverage for this type of loss. Accordingly, policy language has been revised to clarify that it is not the intent of the insurance contract to cover this type of loss. This change applies to all policies effective on or after August 1, 1998.
IDAHO
The 1998 Multistate Commercial Crime Revisions have been approved--see Countrywide above. These changes apply to all policies written on or after August 1, 1998.
INDIANA
In order to comply with the Indiana Insurance Code, 27-7-5-4 (b), Commercial Auto Endorsement CA 31 16--Indiana Underinsured Motorists Coverage has been revised to trigger coverage if the tortfeasor's amounts of coverage available to pay the loss are less than the insured's underinsured motorists coverage at the time of loss. These changes apply to all policies written on or after September 1, 1998.
KANSAS
The 6-98 Multistate Personal Auto Policy (PAP) Revisions with state-specific rules and endorsements have been approved in Kansas. Kansas endorsements include: PP 01 56--Amendment of Policy Provisions--Kansas, PP 04 57--Uninsured Motorists Coverage--Kansas, and PP 05 64--Personal Injury Protection Coverage--Kansas. These changes apply to all policies written on or after August 1, 1998.
The 1998 Revisions to the Multistate Interline Endorsements have been approved--refer to the Countrywide section above. Also approved is a state-specific supplement including Endorsement IL 02 61--Kansas Changes--Cancellation and Nonrenewal. These changes apply to all policies written on or after April 1, 1998.
Numerous commercial endorsements have been revised in response to the case of Friday v. Trinity Universal of Kansas, 924 P.2d 1284 (Kan. 1997). In this decision, it was ruled that the appraisal provision in insurance contracts must be voluntary and agreed to by both parties and that the policy language must state clearly, in bold or underlined type, whether or not the decision of the arbitrator is binding or not. The following changes are applicable to all policies written on or after November 1, 1998:
BM 01 05--Kansas Changes, a revised endorsement for use with boiler and machinery
CM 02 02--Kansas Changes, a revised endorsement for use with commercial inland marine
CP 01 01--Kansas Changes, a revised endorsement for use with commercial property
FP 01 15--Kansas Changes, a revised endorsement for use with farm
BP 01 05--Kansas Changes, a revised endorsement for use with businessowners
CG 31 01--Kansas Changes--Appraisal, a new endorsement for use with railroad protective liability
One other endorsement, CG 26 42-Kansas Changes-Binding Arbitration, also has been revised accordingly and applies to all policies written on or after August 1, 1998.
LOUISIANA
ISO has indicated that the previous announcement regarding the approval of the 1997 Multistate Home Business Insurance Coverage Endorsement was incorrect and approval has not been received. Future status updates will be provided.
MASSACHUSETTS
The 06-95 Multistate Commercial Property Revisions to forms, loss costs and rules have been approved with state-specific amendments. These changes apply to all policies written on or after August 1, 1998.
MINNESOTA
The 1998 Multistate Commercial Crime Revisions have been approved--see Countrywide above. These changes apply to all policies written on or after August 1, 1998.
NEVADA
The 1998 Multistate Commercial Crime Revisions have been approved--see Countrywide above. These changes apply to all policies written on or after August 1, 1998.
NEW HAMPSHIRE
The Year 2000 Businessowners Endorsements have been approved--see the Countrywide sections above. This change applies to all policies written on or after August 1, 1998.
NEW JERSEY
The 1998 Revisions to the Multistate Interline Endorsements have been approved--refer to the Countrywide section above. Also approved is a state-specific supplement including Endorsement IL 02 08--New Jersey Changes--Cancellation and Nonrenewal. These changes apply to all policies written on or after September 1, 1998.
NEW MEXICO
The 1998 Multistate Commercial Crime Revisions have been approved--see Countrywide above. These changes apply to all policies written on or after July 1, 1998.
The Year 2000 Businessowners Endorsements have been approved--see the Countrywide sections above. This change applies to all policies written on or after August 1, 1998.
NEW YORK
The 1998 Multistate Commercial Crime Revisions have been approved--see Countrywide above. These changes apply to all policies written on or after July 1, 1998.
General Liability Endorsement GL 99 12--New York Supplement To Retrospective Premium Endorsement has been withdrawn as there is no statutory requirement to maintain. This change applies to all policies written on or after December 1, 1998.
NORTH CAROLINA
The 1998 Revisions to the Multistate Interline Endorsements have been approved--refer to the Countrywide section above. Also approved is a state-specific supplement including Endorsement IL 02 69--North Carolina Changes--Cancellation and Nonrenewal. These changes apply to all policies written on or after September 1, 1998.
NORTH DAKOTA
The 1998 Multistate Commercial Crime Revisions have been approved--see Countrywide above. These changes apply to all policies written on or after July 1, 1998.
OREGON
In response to 1997 Oregon Laws (former S.B. 527) which amends O.R.S. 742.520, Personal Auto Endorsement PP 05 58--Personal Injury Protection Coverage--Oregon has been revised to amend the definition of pedestrian. The new definition of pedestrian, as it applies to personal injury, has been changed to include any person who does not occupy a self-propelled vehicle--other than a wheelchair or similar type of vehicle that has both been designed for and is medically necessary for the occupant of that vehicle. These changes apply to all policies written on or after September 1, 1998.
The commercial auto version of the above change applies to CA 22 36--Oregon Personal Injury Protection and has been approved. The commercial changes apply to all policies written on or after October 1, 1998.
The 6-98 Multistate Personal Auto Policy (PAP) Revisions with state-specific rules and endorsements have been approved in Oregon. These changes apply to all policies written on or after July 1, 1998.
RHODE ISLAND
The Year 2000 Businessowners Endorsements have been approved--see the Countrywide sections above. This change applies to all policies written on or after August 1, 1998.
TEXAS
The 1995 Multistate Revisions to the Commercial General Liability Program, including coverages forms and endorsements have been approved with state-specific amendments. Existing Endorsement CG 02 05--Texas Changes--Amendment of Cancellation Provisions or Coverage Change has been amended. New Endorsement CG 26 46--Texas Abuse or Molestation Exclusion has been developed and replaces CG 21 46--Abuse or Molestation Exclusion, which has been withdrawn. These changes have been approved; however, effective dates must be submitted by individual insurers in Texas.
The 1996 revisions to the General Liability Multistate Forms and Endorsements have been approved; however, effective dates must be submitted by individual insurers in Texas.
WASHINGTON
The 1998 Multistate Commercial Crime Revisions have been approved--see Countrywide above. Also revised is state-specific Endorsement CR 01 35--Washington Changes. These changes apply to all policies written on or after July 1, 1998.
Implementation of the Underground Storage Tank Policy Program previously announced by ISO as approved, effective June 1, 1998, has been delayed. ISO will provide the new effective date when final approval has been given.
WISCONSIN
The 1998 Revisions to the Multistate Interline Endorsements have been approved--refer to the Countrywide section above. Also approved is a state-specific supplement including Endorsement IL 02 83--Wisconsin Changes--Cancellation and Nonrenewal. These changes apply to all policies written on or after September 1, 1998.
WYOMING
The 1998 Multistate Commercial Crime Revisions have been approved--see Countrywide above. These changes apply to all policies written on or after August 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