COUNTRYWIDE
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 Endorsement CP 10 39--Sprinkler Leakage--Earthquake Extension has been withdrawn.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.
1999 ISO Multistate Commercial General Liability Changes
In July 1995, the case of Montrose Chemical Corporation of California vs. Admiral Insurance Company was decided. 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)
The following endorsement is revised in a similar fashion:
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 which had already been 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 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.
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 written on or after September 1, 1999.
The 1999 ISO Multistate Commercial General Liability Changes have been approved--refer to the Countrywide section above. These changes apply to all policies written on or after September 1, 1999.
ALASKA
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 written on or after September 1, 1999.
ARIZONA
The 1999 ISO Multistate Commercial General Liability Changes have been approved--refer to the Countrywide section above. 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 written on or after September 1, 1999.
ARKANSAS
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 written on or after September 1, 1999.
The 1999 ISO Multistate Commercial General Liability Changes have been approved--refer to the Countrywide section above. These changes apply to all policies written on or after September 1, 1999.
CALIFORNIA
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 written on or after September 1, 1999.
The 1999 ISO Multistate Commercial General Liability Changes have been approved--refer to the Countrywide section above. These changes may be used by ISO participating insurers as of April 13, 1999.
COLORADO
The 1999 changes to the Multistate Earthquake and Volcanic Eruption Property Coverages have been approved--refer to the Countrywide section above. These changes carry a distribution date of September 1999.
The 1999 ISO Multistate Commercial General Liability Changes have been approved--refer to the Countrywide section above. These changes carry a distribution date of September 1999.
CONNECTICUT
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.
DELAWARE
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 written on or after September 1, 1999.
At the request of the Delaware Insurance Department, the provision in personal auto policies, specifically Endorsement PP 01 52--Amendment of Policy Provisions--Delaware, that gives the insured 14 days to notify the insurer of newly acquired autos, has been changed to 30 days. This change applies to all policies written on or after September 1, 1999.
The 1999 ISO Multistate Commercial General Liability Changes have been approved--refer to the Countrywide section above. These changes apply to all policies written on or after September 1, 1999.
DISTRICT OF COLUMBIA
Personal Auto Endorsement PP 03 58--District of Columbia Employees Using Autos in Government Business has been revised to reflect changes to the 1981 D.C. Code, provisions of D.C.C.E. 1-921 through 1-926 (District of Columbia Employee Non-Liability Act) which were renumbered instead to 1-1211 through 1-1216. These changes apply to all policies written on or after September 1, 1999.
The 1999 ISO Multistate Commercial General Liability Changes have been approved--refer to the Countrywide section above. These changes apply to all policies written on or after September 1, 1999.
FLORIDA
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.
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.
GEORGIA
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 written on or after September 1, 1999.
The 1999 ISO Multistate Commercial General Liability Changes have been approved--refer to the Countrywide section above. These changes apply to all policies written on or after September 1, 1999.
IDAHO
The 1999 ISO Multistate Commercial General Liability Changes have been approved--refer to the Countrywide section above. These changes apply to all policies written on or after September 1, 1999.
ILLINOIS
At the request of the Illinois Department of Insurance, all of the professional liability endorsements applicable to the Businessowners program have been withdrawn from use. These endorsements do not comply with the state's position that professional liability coverage carry its own separate limit of liability in addition to the policy's liability aggregate. The withdrawn endorsements are:
BP 08 01--Barbers and Beauticians Professional Liability
BP 08 02--Funeral Directors Professional Liability
BP 08 03--Optical Hearing Aid Establishments
BP 08 04--Printers Errors And Omissions Liability
BP 08 05--Veterinarians Professional Liability
These changes apply to all policies written on or after September 1, 1999.
INDIANA
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 written on or after September 1, 1999.
The 1999 ISO Multistate Commercial General Liability Changes have been approved--refer to the Countrywide section above. These changes apply to all policies written on or after September 1, 1999.
IOWA
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 written on or after September 1, 1999.
The 1999 ISO Multistate Commercial General Liability Changes have been approved--refer to the Countrywide section above. These changes apply to all policies written on or after September 1, 1999.
KANSAS
The 1999 ISO Multistate Commercial General Liability Changes have been approved--refer to the Countrywide section above. These changes apply to all policies written on or after September 1, 1999.
As a result of the Kansas Insurance Department Bulletin 1998-13 regarding filing requirements for "blank" or "change" endorsements, multistate Endorsement IL 12 01--Policy Changes has been approved for use as it applies to commercial automobile, commercial property, commercial crime, commercial general liability, employment-related practices liability, farm and professional liability policies. These changes apply to all policies written on or after October 1, 1999.
KENTUCKY
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 written on or after September 1, 1999.
The 1999 ISO Multistate Commercial General Liability Changes have been approved--refer to the Countrywide section above. These changes apply to all policies written on or after September 1, 1999.
LOUISIANA
The multistate Professional Liability program has been approved with state-specific amendments. Two multistate endorsements, PR 24 02--Binding Arbitration and PR 24 01--Non-Binding Arbitration, have been withdrawn. Five state-specific endorsements are added:
PR 01 50--Louisiana Changes
PR 01 51--Louisiana Changes
PR 01 52--Louisiana Changes
PR 01 53--Louisiana Changes
PR 01 54--Louisiana Changes
These changes apply to all policies effective November 1, 1999.
MARYLAND
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.
Personal Auto Endorsement PP 03 58--District of Columbia Employees Using Autos in Government Business has been revised to reflect changes to the 1981 D.C. Code, provisions of D.C.C.E. 1-921 through 1-926 (District of Columbia Employee Non-Liability Act) which were renumbered instead to 1-1211 through 1-1216. These changes apply to all policies written on or after September 1, 1999.
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.
MASSACHUSETTS
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 written on or after September 1, 1999.
The 1999 ISO Multistate Commercial General Liability Changes have been approved--refer to the Countrywide section above. These changes apply to all policies written on or after September 1, 1999.
MICHIGAN
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 written on or after September 1, 1999.
The 1999 ISO Multistate Commercial General Liability Changes have been approved--refer to the Countrywide section above. These changes apply to all policies written on or after September 1, 1999.
As a result of the decision reached in the case of Nabozny vs. Pioneer Mutual Insurance Co., 1998 WL 901726 (Mich. App)., the expected and intended exclusion in two personal lines liability endorsements has been revised. In this case, it was determined that in the state of Michigan, if accident is not defined it also includes not only accidental events, but also intentional events where the results were not expected or intended by the insured. The revised endorsements are HO 01 21--Special Provisions--Michigan and DL 25 21--Special Provisions--Michigan. These changes apply to all policies written on or after September 1, 1999.
MISSISSIPPI
The 1999 ISO Multistate Commercial General Liability Changes have been approved--refer to the Countrywide section above. These changes apply to all policies written on or after October 1, 1999.
MISSOURI
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 written on or after September 1, 1999.
The 1999 ISO Multistate Commercial General Liability Changes have been approved--refer to the Countrywide section above. These changes apply to all policies written on or after September 1, 1999.
MONTANA
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 written on or after September 1, 1999.
The 1999 ISO Multistate Commercial General Liability Changes have been approved--refer to the Countrywide section above. These changes apply to all policies written on or after September 1, 1999.
NEVADA
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 written on or after September 1, 1999.
The 1999 ISO Multistate Commercial General Liability Changes have been approved--refer to the Countrywide section above. These changes apply to all policies written on or after September 1, 1999.
NEW JERSEY
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 written on or after September 1, 1999.
Two new lead liability endorsements have been developed and four existing endorsements have been revised for businessowners liability and commercial general liability. The new and revised endorsements allow for multiple premises and clarify where coverage applies. Further, the endorsements have been amended to clarify that they apply not only to the pollution exclusion found in the coverage form itself, but also to any other endorsement or amendment that addresses the pollution exclusion.
The two new endorsements are:
CG 26 53--New Jersey Changes--Coverage and Exclusion--Liability For Hazards Of Lead--Multiple Premises
BP 04 78--New Jersey Changes--Coverage and Exclusion--Liability For Hazards Of Lead--Multiple Premises
The revised endorsements are:
CG 26 49--New Jersey Changes--Coverage For Liability For Hazards of Lead
BP 04 72--New Jersey Changes--Coverage For Liability For Hazards of Lead
CG 26 52--New Jersey Changes--Coverage For Liability For Hazards of Lead Without Sublimit
BP 04 77--New Jersey Changes--Coverage For Liability For Hazards of Lead Without Sublimit
These changes apply to all policies written on or after August 1, 1999.
NEW MEXICO
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 written on or after September 1, 1999.
The 1999 ISO Multistate Commercial General Liability Changes have been approved--refer to the Countrywide section above. These changes apply to all policies written on or after September 1, 1999.
NEW YORK
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 written on or after September 1, 1999.
NORTH CAROLINA
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.
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.
NORTH DAKOTA
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 written on or after September 1, 1999.
The 1999 ISO Multistate Commercial General Liability Changes have been approved--refer to the Countrywide section above. These changes apply to all policies written on or after September 1, 1999.
OHIO
The 1999 ISO Multistate Commercial General Liability Changes have been approved--refer to the Countrywide section above. These changes apply to all policies written on or after September 1, 1999.
Interline Endorsement IL 02 44--Ohio Changes--Cancellation and Nonrenewal has been revised to make it applicable to all of the following coverage parts: boiler and machinery, businessowners, commercial inland marine, commercial automobile, commercial property, commercial crime, commercial general liability, employment-related practices liability, liquor liability, pollution liability, products/completed operations liability, farm and professional liability coverage parts. This change applies to all policies written on or after October 1, 1999.
OKLAHOMA
The commercial boiler & machinery, crime, fire and farm endorsement, IL 01 91--Oklahoma Changes--Replacement Cost, has been withdrawn in response to the decision reached in Bratcher vs. State Farm Fire and Casualty Co., 961 P.2d 828 (OK 1998) where it was determined that if the actual cash value offered an insured was insufficient to initiate repair, the insurer must offer an amount that would do so. The commercial fire and farm endorsement, IL 04 15--Protective Safeguards, has been revised in order to be applicable to farm coverages. These changes apply to all policies written on or after August 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 written on or after September 1, 1999.
The 1999 ISO Multistate Commercial General Liability Changes have been approved--refer to the Countrywide section above. These changes apply to all policies written on or after September 1, 1999.
In response to Oklahoma Stat., Tit. 36, Section 1250.7, two personal lines endorsements, HO 01 35--Special Provisions--Oklahoma and DP 01 35--Special Provisions--Oklahoma, are revised. The revision applies to the condition regarding the insurer's duties after loss, where the insurer now agrees within 45 (instead of 90) days of receipt of proof of loss from the insured to give a written offer of settlement or rejection of the claim or notice of the need for more time to investigate the claim. These changes apply to all policies written on or after September 1, 1999.
OREGON
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 written on or after September 1, 1999.
The 1999 ISO Multistate Commercial General Liability Changes have been approved--refer to the Countrywide section above. These changes apply to all policies written on or after September 1, 1999.
PENNSYLVANIA
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 written on or after September 1, 1999.
The 1999 ISO Multistate Commercial General Liability Changes have been approved--refer to the Countrywide section above. These changes apply to all policies written on or after September 1, 1999.
PUERTO RICO
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 the premises is safe, healthful or complies 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 exclusion in the condition does not apply. This change applies to all policies effective on or after October 1, 1999.
The 1996 multistate revisions to the Commercial General Liability Policy have been approved. These changes apply to all policies effective on or after October 1, 1999.
RHODE ISLAND
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 written on or after September 1, 1999.
The 1999 ISO Multistate Commercial General Liability Changes have been approved--refer to the Countrywide section above. These changes apply to all policies written on or after September 1, 1999.
SOUTH CAROLINA
Two personal auto endorsements have been revised in response to 1997 S.C. Acts (former S.B. 254) which amended a significant number of provisions in the law regarding personal auto insurance. The revised endorsements are PP 01 78--Amendment of Policy Provisions--South Carolina and PP-04 65--Uninsured Motorists Coverage--South Carolina. The cancellation and termination provisions have been amended to comply with the changes in the law, as has the definition of uninsured motor vehicle. These changes apply to all policies written on or after June 1, 1999.
The 1999 ISO Multistate Commercial General Liability Changes have been approved--refer to the Countrywide section above. These changes apply to all policies written on or after September 1, 1999.
SOUTH DAKOTA
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 written on or after September 1, 1999.
The 1999 ISO Multistate Commercial General Liability Changes have been approved--refer to the Countrywide section above. These changes apply to all policies written on or after September 1, 1999.
TENNESSEE
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 written on or after September 1, 1999.
The 1999 ISO Multistate Commercial General Liability Changes have been approved--refer to the Countrywide section above. These changes apply to all policies written on or after September 1, 1999.
TEXAS
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 the premises is safe, healthful or complies 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 exclusion in the condition does not apply. This revision carries a distribution date of October 1999.
UTAH
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 written on or after September 1, 1999.
The 1999 ISO Multistate Commercial General Liability Changes have been approved--refer to the Countrywide section above. These changes apply to all policies written on or after September 1, 1999.
WASHINGTON
The 1999 ISO Multistate Commercial General Liability Changes have been approved--refer to the Countrywide section above. These changes apply to all policies written on or after September 1, 1999.
WEST 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 written on or after September 1, 1999.
The 1999 ISO Multistate Commercial General Liability Changes have been approved--refer to the Countrywide section above. These changes apply to all policies written on or after September 1, 1999.
WISCONSIN
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 written on or after September 1, 1999.
The 1999 ISO Multistate Commercial General Liability Changes have been approved--refer to the Countrywide section above. These changes apply to all policies written on or after September 1, 1999.
WYOMING
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 written on or after September 1, 1999.
The 1999 ISO Multistate Commercial General Liability Changes have been approved--refer to the Countrywide section above. These changes apply to all policies written on or after September 1, 1999. *
©COPYRIGHT: The Rough Notes Magazine, 1999