COUNTRYWIDE
New ISO Personal Umbrella Policy (PUP)
A new multistate ISO personal umbrella policy (PUP) has been developed and provides a minimum limit of liability of $l million with higher limits available. Coverage is subject to a self-insured retention (SIR). ISO has filed this multistate policy program in most jurisdictions; however, an effective date has not been filed--only a program edition date of June 1998. Each insurer must decide whether or not to use the program and, if so, individual effective dates must be filed by the insurer.
Program forms include:
* DL 98 01 06 98--Personal Umbrella Liability Policy
* DL 98 10 06 98--Personal Umbrella Liability Policy Change Endorsement
* DL 98 11 06 98--Personal Umbrella Liability Policy Auto Liability Exclusion Endorsement
* DL 98 12 06 98--Personal Umbrella Liability Policy Auto Liability Following Form Endorsement
* DL 98 13 06 98--Personal Umbrella Liability Policy Exclusion--Designated Auto Endorsement
* DL 98 14 06 98--Personal Umbrella Liability Policy Exclusion--Designated Recreational Motor Vehicle Endorsement
* DL 98 15 06 98--Personal Umbrella Liability Policy Exclusion--Designated Watercraft Endorsement
* DL 98 16 06 98--Personal Umbrella Liability Policy Exclusion--All Hazards In Connection With Designated Premises Endorsement
Listed below are the individual states that have approved the new program with a program edition date of June 1998 only. The text regarding the PUP will not be repeated but will refer back to this Countrywide section.
1999 ISO Multistate Commercial General Liability Changes
In July 1995, the case Montrose Chemical Corporation of California vs. Admiral Insurance Company was decided. (See the related article, "ISO's CGL EXCLUDES KNOWN INJURY OR LOSS IN PROGRESS," on page 40.) While it may not have been the intent of the original drafters of the CGL verbiage in use to provide coverage for known loss resulting from the occurrence of progressive or continuous exposure, coverage has been found in the modern CGL as a result of this decision.
Accordingly, new mandatory endorsements applying to each of the Commercial Liability Coverage Parts have been developed to revise the Insuring Agreements so that commercial liability policies will not respond to any injury or damage known by the insured (or an employee of the insured who was authorized to give or receive notice of injury, damage or claim) before the policy inception.
The new mandatory commercial liability endorsements are:
CG 00 57--Amendment Of Insuring Agreement--Known Injury Or Damage (use with the CGL)
CG 00 58--Amendment Of Insuring Agreement--Known Injury Or Damage And Inspections And Surveys Condition (use with the OCP)
CG 00 59--Amendment Of Insuring Agreement--Known Injury Or Damage And Inspections And Surveys Condition (use with the Railroad Protective Liability Policy)
CG 00 60--Amendment Of Insuring Agreement--Known Injury Or Damage (use with the Products/Completed Operations Liability Policy--Occurrence Version)
CG 00 61--Amendment Of Insuring Agreement--Known Injury Or Damage (use with the Liquor Liability Policy--Occurrence Version)
Revised similarly is the following endorsement:
CG 28 07--Principals Protective Liability Coverage
The new endorsements for the OCP and the Railroad Protective Liability Coverage Parts also include a revision to the condition on inspections and surveys already addressed in the most recent version of the Common Policy Conditions--IL 00 17, now used by the other commercial liability coverages.
A new pollution exclusion endorsement was developed:
CG 21 65--Total Pollution Exclusion With A Building Heating Equipment Exception And A Hostile Fire Exception
Two other pollution endorsements have been revised to make them compatible with the exclusion wording that has been amended in the CGL over the last couple of revisions. The revised endorsements are:
CG 21 49--Total Pollution Exclusion
CG 21 55--Total Pollution Exclusion With A Hostile Fire Exception
A number of other CGL endorsements have been updated to reflect the new wording and numbering in the commercial liability insuring agreements. Basically, the changes are editorial in nature. They are:
CG 22 65--Optical and Hearing Aid Establishments (use with CGL Policy)
CG 24 18--Seed Merchants--Coverage For Erroneous Delivery Or Mixture And Resulting Failure Of Seed To Germinate (use with CGL Policy)
CG 24 19--Seed Merchants--Coverage For Erroneous Delivery Or Mixture (Resulting Failure Of Seed To Germinate Not Included) (use with CGL Policy)
CG 24 20--Seed Merchants--Coverage For Erroneous Delivery Or Mixture And Resulting Failure Of Seed To Germinate (use with Products/Completed Operations Liability Policy)
CG 24 21--Seed Merchants--Coverage For Erroneous Delivery Or Mixture (Resulting Failure Of Seed To Germinate Not Included) (use with Products/Completed Operations Liability Policy)
Listed below under the individual states are those states that have approved the above revisions. This text will not be repeated, but this Countrywide information will be referred to in the applicable individual sections.
1999 changes to the Multistate Earthquake and Volcanic Eruption Property Coverages
A new, optional earthquake and volcanic eruption endorsement has been developed which allows the insured to purchase this coverage on an amount less than the total property values, without penalty for coinsurance. An annual aggregate limit will apply. Because of the catastrophic nature of earthquake and volcanic eruption, covering property up to the full limits in every case can be devastating to insurers' financial solvency. Allowing the purchase of lesser limits is less expensive for insureds while still offering a significant degree of protection. At the same time, the insurance industry's capacity to provide coverage is less likely to be drained by the occurrence of these events. The new endorsement is CP 10 45--Earthquake and Volcanic Eruption Endorsement (Sub-Limit Form). Along with the endorsement is CP 19 45--Earthquake-Volcanic Eruption Coverage Schedule. Endorsement CP 10 39--Sprinkler Leakage--Earthquake Extension has been withdrawn.
Existing endorsements CP 10 40--Causes of Loss--Earthquake Form and CP 10 41--Earthquake Inception Extension Endorsement have both been revised to be compatible with the new limit application endorsement.
Listed below under the individual states are those states that have approved the above revisions. This text will not be repeated, but this Countrywide information will be referred to in the applicable individual sections.
The new Personal Umbrella Policy (PUP) has been approved--refer to the Countrywide section above for more information.
CONNECTICUT
The 1999 ISO Multistate Commercial General Liability Changes have been approved--refer to the Countrywide section above. These changes apply to all policies effective on or after November 1, 1999.
FLORIDA
The new Personal Umbrella Policy (PUP) has been approved--refer to the Countrywide section above for more information.
Two commercial endorsements, IL 04 15--Protective Safeguards and IL 02 55--Florida Changes--Cancellation and Nonrenewal, have been revised to reference Farm as an applicable coverage part. These changes apply to all policies effective on or after November 1, 1999.
ILLINOIS
The new Personal Umbrella Policy (PUP) has been approved--refer to the Countrywide section above for more information.
KANSAS
The 1999 changes to the Multistate Earthquake and Volcanic Eruption Property Coverages have been approved--refer to the Countrywide section above. These changes apply to all policies effective on or after November 1, 1999.
MAINE
In response to the decision reached in Greenvall v. Maine Mutual Fire Ins. Co., 715 A.2.d 949 (Maine 1998), Commercial Auto Endorsement CA 21 74--Maine Uninsured Motorists Coverage and Personal Auto Endorsement PP 01 75--Amendment of Policy Provisions--Maine, have been revised to allow an insurer to settle as long as the insurer's right to recover is not prejudiced by the settlement. These changes apply to all policies (commercial and personal) written on or after September 1, 1999.
MASSACHUSETTS
Changes were made to Homeowners Endorsement HO 01 20--Special Provisions--Massachusetts in 1998 in response to the decision in Rich v. Great American Insurance Company, 481 Mass. 651, 881 N.E.2d 69 (1993). The definition of collapse was revised. However, wording that was inadvertently omitted upon the release of the endorsement now has been corrected. The endorsement has been released with the corrected wording and using a new edition date of 10/99.
In response to the court decision made in Reavey v. Hingham Mutual Fire Ins. Co., 9657CV02 (Mass. Dist. Ct. (Wrentham) 1997), where the term "vermin" was found to be ambiguous, further changes were made to HO-1 20. This revision adds a definition for vermin and applies to all policies written on or after November 1, 1999.
MICHIGAN
The new Personal Umbrella Policy (PUP) has been approved--refer to the Countrywide section above for more information.
NEBRASKA
In response to the 1999 Nebraska Statues (former Legislative Bill 326), the Commercial Auto Endorsement CA 02 21--Nebraska Changes--Cancellation has been revised. The revision applies to the cancellation provision and makes it necessary to send a registered or certified mailing for cancellations resulting from nonpayment of premium to a premium finance company or for any reason beside that of nonpay. These changes apply to all policies written on or after September 1, 1999.
The 1999 changes to the Multistate Earthquake and Volcanic Eruption Property Coverages have been approved--refer to the Countrywide section above. These changes apply to all policies effective on or after November 1, 1999.
NEW HAMPSHIRE
At the request of the New Hampshire Insurance Department, revisions have been made to the cancellation provisions in Businessowners Endorsement BP 01 13--New Hampshire Changes, in order to comply with New Hampshire Revised Statutes 417-C:1. These changes apply to all policies written on or after October 1, 1999.
The 1999 changes to the Multistate Earthquake and Volcanic Eruption Property Coverages have been approved--refer to the Countrywide section above. These changes apply to all policies effective on or after November 1, 1999.
NEW JERSEY
Personal Auto Endorsement PP 13 51--Named Driver Exclusion Endorsement (Coverage For Damage To Your Auto)--New Jersey has been revised to remove the exclusion for non-owned autos. Three other endorsements have had editorial revisions made with no change in coverage or intent. The revised endorsements include: PP 00 51--Basic Personal Auto Policy (Property Damage Liability Coverage)--New Jersey; PP 00 52--Basic Personal Auto Policy (Bodily Injury and Property Damage Liability Coverage)--New Jersey; and PP 03 75--Rating Information--New Jersey. These changes apply to all policies written on or after July 1, 1999.
OHIO
The Multistate Employment-Related Practices Liability Program has been approved with Ohio-specific provisions. This change applies to all policies written on or after October 1, 1999.
The Simplified Multistate Professional Liability Program including state-specific supplement and applicable Year 2000 endorsements has been approved. These changes apply to all policies written on or after October 1, 1999.
The 1998 edition of Commercial Lines Endorsement IL 00 17--Common Policy Conditions has been approved for use. It now makes clear that while the condition regarding inspections, surveys, reports or recommendations does not warrant that any such 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 October 1, 1999.
The 1999 changes to the Multistate Earthquake and Volcanic Eruption Property Coverages have been approved--refer to the Countrywide section above. These changes apply to all policies effective on or after November 1, 1999.
UTAH
As a result of changes in the 1999 Utah Laws (former S.B. 88) amending UTAH CODE ANN. Section 31A-22-305, changes are made to both commercial and personal auto endorsements to amend the definition of uninsured motor vehicle to include coverage for accidents being disputed by the liability insurer for more than 60 days. The amended endorsements include:
PP 01 93--Amendment of Policy Provisions--Utah
PP 04 24--Property Damage Uninsured Motorists Coverage--Utah
CA 21 36--Utah Uninsured Motorists Coverage--Property Damage
CA 21 62--Utah Uninsured Motorists Coverage
These changes apply to all policies written on or after October 1, 1999.
VIRGINIA
The 1999 changes to the Multistate Earthquake and Volcanic Eruption Property Coverages have been approved--refer to the Countrywide section above. These changes apply to all policies effective on or after November 1, 1999.
WASHINGTON
The new Personal Umbrella Policy (PUP) has been approved--refer to the Countrywide section above for more information.
WISCONSIN
The new Personal Umbrella Policy (PUP) has been approved-- refer to the Countrywide section above for more information.
The interline endorsement, IL 04 15--Protective Safeguards, has been editorially revised to make it compatible with the numbering and provisions in commercial fire and farm forms. These changes apply to all policies written on or after October 1, 1999. *
©COPYRIGHT: The Rough Notes Magazine, 1999