COUNTRYWIDE
1998 Multistate Commercial Auto Policy Program changes
Mandatory coverage changes, which apply to all five commercial auto coverage forms and broaden coverage, include:
Loss of Use--Rental Vehicle Coverage which adds payment for expenses an insured may be legally obligated to pay to the rental or lease operation--up to $15 per day with a maximum of $450--for damages in a leased or rented private passenger type vehicle only, that is hired without a driver.
Limited Worldwide Coverage for Hired Autos for private passenger type vehicles that are hired without a driver. If an insured rents or leases a private passenger type auto for 30 days or less, anywhere in the world, there is coverage for damages that an insured incurs and is legally obligated to pay based upon a suit brought within the United States, its territories, possessions, Puerto Rico or Canada. There is also coverage for any settlement that the insurer agrees to.
Definition of Insured Contract has been amended (or added in the case of the Garage Program) to make it consistent and compatible with the similar definition found in the commercial general liability policy.
The following new endorsements have been added:
CA 01 21--Limited Mexico Coverage
CA 20 54--Employee Hired Autos
CA 20 55--Fellow Employee Coverage
CA 20 56--Fellow Employee Exclusions For Designated Employees/Positions
Listed below, under the individual states, are those that have approved the above revisions. The text will not be repeated but will refer back to the appropriate Countrywide section.
The 1998 Multistate Commercial Auto Policy Program Changes have been approved--refer to the Countrywide section above. These changes apply to all policies written on or after April 1, 1999.
MARYLAND
Approval has been received regarding the amendments to Commercial Auto Endorsement CA 01 70--Maryland Changes, regarding the condition on Concealment, Misrepresentation or Fraud. Revisions were made as a result of the Maryland Court of Appeals decision in Van Horn v. Atlantic Mutual Ins. Co., 334 Md. 669, 641, A.2d 195 (1994) to clarify the intent of the condition. At the request of the Maryland Insurance Administration, further changes were made to clarify that coverage was not reduced for innocent insureds. These changes apply to all policies effective on or after July 1, 1998.
MASSACHUSETTS
The multistate endorsements providing optional valuation methods for Homeowners Programs HO 00 02 and HO 00 03 have been approved. The two new endorsements now available are: HO 05 30--Functional Replacement Cost; and HO 04 81--Actual Cash Value Loss Settlement. These changes are applicable to all policies written on or after March 1, 1999.
MICHIGAN
In the December 1998 Rough Notes magazine, we notified you that an adjustment had been made to the maximum amount recoverable for Work Loss and Survivor's Benefits in the personal protection insurance coverage found in both commercial and personal auto contracts. The new maximum is $3,688 per month, as of October 1, 1998. However, while the adjustment has been made, Endorsement CA 22 20--Michigan Personal Injury Protection has NOT yet been amended. Endorsement PP 05 90--Personal Injury Protection Coverage--Michigan has been amended and is applicable to all policies written on or after March 1, 1999. We apologize for any inconvenience this has caused.
In response to the case of Randolph v. State Farm Fire and Casualty Co., 229 Mich. App. 102, 580 N.W.2D 903 (1998) and Michigan Public Act 217 (former H.B. 5344) and Michigan statute MCL 500.2833, Homeowners Endorsement HO 01 21--Special Provisions--Michigan has been revised. The Loss Payment and Mortgageholders Conditions have been amended to add vandalism, windstorm, hail, riot or civil commotion as causes of loss in which partial withholding of payment to the insured may be triggered. In the provision for Suit Against Us, the time limit for legal action by the insured against the insurer is tolled from the date that the insurer formally denies the loss. These changes apply to all policies written on or after January 1, 1999.
Further, three commercial endorsements have been amended. The revised endorsements are: BP 01 36--Michigan Changes, CP 01 20--Michigan Changes and FL 01 04--Michigan Changes. These changes apply to all policies written on or after March 1, 1999.
NEBRASKA
The 1998 Multistate Commercial Auto Policy Program Changes have been approved--refer to the Countrywide section above. These changes apply to all policies written on or after April 1, 1999.
NEW HAMPSHIRE
The 1998 Multistate Commercial Crime Revisions have been approved. These changes apply to all policies written on or after April 1, 1999.
NEW JERSEY
Changes have been made to Personal Liability amending the Expected or Intended exclusion and adding a new Concealment or Fraud condition. Endorsement DL 25 29--Special Provisions--New Jersey, has been amended accordingly. These changes apply to all policies written on or after February 1, 1999.
Four new commercial liability endorsements have been developed and approved with respect to the lead liability hazard, in order to comply with N.J.A.C. 11:13-7.4. The endorsements are:
CG 26 51--New Jersey Changes--Exclusion--Liability For Hazards Of Lead
CG 26 52--New Jersey Changes--Changes For Liability For Hazards Of Lead Without Sublimit
BP 04 76--New Jersey Changes--Exclusion--Liability For Hazards Of Lead
BP 04 77--New Jersey Changes--Changes For Liability For Hazards Of Lead Without Sublimit
These changes apply to all policies written on or after April 1, 1999.
NEW MEXICO
New and revised amendatory endorsements for commercial lines have been approved in order to establish time requirements for the cancellation or nonrenewal of commercial insurance policies. The new endorsements are:
IL 02 98--New Mexico Changes--Cancellation and Nonrenewal
CG 28 29--New Mexico Changes
CG 28 30--New Mexico Changes
CG 30 63--New Mexico Changes
Revised endorsements include:
BP 01 50--New Mexico Changes--Cancellation and Nonrenewal
CA 02 50--New Mexico Changes--Cancellation and Nonrenewal
These changes apply to all policies written on or after March 1, 1999.
NEW YORK
As New York has not renewed the managed care option for personal injury protection insurance that expired on June 30, 1998, Personal Auto Endorsement PP 05 97--Personal Injury Protection Managed Care Coverage--New York has been withdrawn. This change applies to all policies written on or after March 1, 1999.
Commercial Auto Endorsement CA 02 25--New York Changes--Cancellation has been revised to clarify that 45 days' advanced notice must be given an insured whose policy is determined to be insufficient by the Commissioner of Motor Vehicles. A new commercial endorsement, CA 01 02--New York Changes--For Hired Autos, has been developed to make provision for limits and coverage as required by Section 370 (a) and (b) of the New York Vehicle and Traffic Laws. These changes apply to all policies written on or after March 1, 1999.
The 1998 General Liability Multistate Forms Revision has been approved in New York with two additional state-specific endorsements. The state endorsements are:
CG 04 33--New York Changes--Pollution Exclusion--Named Peril Limited Exception For A Short-Term Pollution Event
CG 04 34--New York Changes--Pollution Exclusion--Limited Exception For A Short-Term Pollution Event
These changes apply to all policies written on or after May 1, 1999.
NORTH DAKOTA
The 1998 Multistate Commercial Auto Policy Program Changes have been approved--refer to the Countrywide section above. These changes apply to all policies written on or after April 1, 1999.
PENNSYLVANIA
The 1998 Multistate Commercial Auto Policy Program Changes have been approved--refer to the Countrywide section above. These changes apply to all policies written on or after April 1, 1999.
PUERTO RICO
A revised compulsory liability insurance policy has been developed for both personal and commercial auto programs: IL 00 24--Compulsory Liability Insurance Policy--Puerto Rico and is now available.
SOUTH CAROLINA
The 1998 Multistate Commercial Auto Policy Program Changes have been approved--refer to the Countrywide section above. These changes apply to all policies written on or after April 1, 1999.
TEXAS
The multistate Year 2000 endorsements for boiler and machinery, commercial fire, commercial inland marine and commercial crime (IL 09 35 and CP 15 57) have not been approved in Texas as presented by ISO. Each insurer writing in Texas will need to make independent filings if these endorsements are desired.*
©COPYRIGHT: The Rough Notes Magazine, 1999