COUNTRYWIDE
Auto Service Risk Multistate Market Segment Line Of Business Program
The first of the new series of market-specific advisory programs consisting of products designed to meet the coverage needs of specific market segments has begun to receive approvals. The Auto Service Risks Program is the first to be developed for the new Division Twelve--Market Segments.
Endorsement MS AS 01--Auto Service Risks modifies the commercial property and general liability coverage parts providing coverage enhancements specific to an auto service risk. Other available endorsements include:
MS AS 02--Auto Service Risks--Loss or Damage to Customers' Autos (Direct Primary Coverage) modifies the commercial property coverage form to provide physical damage coverage for property of others in the insured's care.
MS AS 03--Auto Service Risks--Loss or Damage to Customers' Autos (Legal Liability Coverage) modifies the commercial property coverage form to provide physical damage coverage for property of others in the insured's care.
MS AS 04--Auto Service Risks--Loss or Damage to Customers' Autos and Other Customers' Property (Direct Primary Coverage) modifies the commercial property coverage form to provide physical damage coverage for property of others in the insured's care.
MS AS 05--Auto Service Risks--Loss or Damage to Lessors' Property modifies the commercial property coverage form to provide physical damage coverage for property of others the insured has leased.
MS AS 06--Auto Service Risks--Hired Auto and Non-Owned Auto Liability Insurance
MS AS 07--Auto Service Risks--Mechanical Breakdown Coverage
MS AS DS--Auto Service Risks Supplemental Schedule
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 Countrywide section.
The Auto Service Risk Multistate Market Segment Line Of Business Program has been approved--refer to Countrywide section above. This change applies to all policies written on or after October 1, 1999.
ALASKA
The Auto Service Risk Multistate Market Segment Line Of Business Program has been approved--refer to Countrywide section above. This change applies to all policies written on or after October 1, 1999.
In reference to the Unfair Claim Practice Regulation 3 AAC 26.070 (a)(2), two commercial and farm endorsements have been amended and one new one developed to clarify that any portion of a claim that is not in dispute must be paid within 30 days. The amended endorsements are:
BP 01 41--Alaska Changes
FP 01 72--Alaska Changes
The new endorsement is IL 01 07--Alaska Changes--Loss Payment.
These changes apply to all policies written on or after July 1, 1999.
ARKANSAS
The Auto Service Risk Multistate Market Segment Line Of Business Program has been approved--refer to Countrywide section above. This change applies to all policies written on or after October 1, 1999.
CALIFORNIA
The Auto Service Risk Multistate Market Segment Line Of Business Program has been approved--refer to Countrywide section above. This change has been approved for use by ISO-filed insurers as of December 18, 1998.
In response to the decision made in Cheeks vs. California Fair Plan Association, CalCtApp. No. B107786, two new endorsements have been developed and approved. This ruling determined that if a policy does not define actual cash value, it would mean fair market value. As a result, IL 01 03--California Changes--Actual Cash Value (for commercial property, farm, boiler and machinery, inland marine and crime) and BP 01 55--California Changes--Actual Cash Value (for businessowners) are now available. These changes have been approved for use by ISO-filed insurers as of March 12, 1999.
The 1998 Commercial General Liability Multistate Forms Revisions have been approved in California for all ISO participating insurers. These revisions have been approved for use as of March 19, 1999.
Two new earthquake and volcanic eruption optional forms have been developed for commercial property. The new endorsements are: CP 10 45--Earthquake and Volcanic Eruption Endorsement (Sub-Limit Form) and CP 19 45--Earthquake--Volcanic Eruption Coverage Schedule. Use of these endorsements provides coverage on a no coinsurance, sub-limit basis, subject to an annual aggregate limit. Endorsement CP 10 39--Sprinkler Leakage--Earthquake Extension has been withdrawn. Three additional commercial property endorsements have been revised to reflect the new options and other editorial corrections. They are:
CP 10 40--Causes of Loss--Earthquake Form
CP 10 41--Earthquake Inception Extension Endorsement
CP 01 41--Additional Earthquake Coverage--California
Revisions have been approved for ISO participating insurers for use as of February 23, 1999.
COLORADO
The Auto Service Risk Multistate Market Segment Line Of Business Program has been approved--refer to Countrywide section above. This change carries an October 1999 distribution date.
CONNECTICUT
The 1998 General Liability Multistate Forms Revisions have been approved with state-specific endorsements including amendments. State-specific forms revised or added include:
CG 26 27--Connecticut Changes--Claims-Made Provisions
CG 26 29--Connecticut Changes--Claims-Made Provisions
CG 28 40--Connecticut Changes--Extended Reporting Period Option
CG 28 64--Connecticut Changes--Extended Reporting Period Endorsement
CG 28 95--Connecticut Changes--Extended Reporting Period Endorsement
CG 30 64--Connecticut Changes--Extended Reporting Periods
These changes apply to all policies effective on or after September 1, 1999.
The Auto Service Risk Multistate Market Segment Line Of Business Program has been approved--refer to Countrywide section above. This change applies to all policies effective on or after December 1, 1999.
DELAWARE
The Auto Service Risk Multistate Market Segment Line Of Business Program has been approved--refer to Countrywide section above. This change applies to all policies written on or after October 1, 1999.
DISTRICT OF COLUMBIA
The Auto Service Risk Multistate Market Segment Line Of Business Program has been approved--refer to Countrywide section above. This change applies to all policies written on or after October 1, 1999.
FLORIDA
The Auto Service Risk Multistate Market Segment Line Of Business Program has been approved--refer to Countrywide section above. This change applies to all policies effective on or after December 1, 1999.
GEORGIA
The Auto Service Risk Multistate Market Segment Line Of Business Program has been approved--refer to Countrywide section above. This change applies to all policies written on or after October 1, 1999.
The 1998 Multistate Commercial Auto Policy Program Changes have been approved. These changes apply to all policies written on or after August 1, 1999.
IDAHO
The Auto Service Risk Multistate Market Segment Line Of Business Program has been approved--refer to Countrywide section above. This change applies to all policies written on or after October 1, 1999.
ILLINOIS
A new commercial auto endorsement, CA 01 04--Illinois Garage Liability Coverage Changes, has been designed and approved as a result of the decision reached in State Farm Mutual Automobile Ins. vs. Universal Underwriters Group et al., 182 Ill. 2d 240, 695 N.E. 2d 848 (1998). This decision determined that any automobile liability policy must extend primary coverage to all permissive users even if the user has his/her own insurance coverage elsewhere, up to the limits required in the state's financial responsibility law. This change applies to all policies written on or after October 1, 1999.
A definition of collapse has been developed for homeowners and dwelling property coverages in response to the decision made in Indiana Ins. Co. vs. Liaskos, 297 Ill. App. 3d 569, 697 N.E. 2d 398 (1998). Accordingly, the following two personal lines endorsements have been amended:
HO 01 12--Special Provisions--Illinois
DP 01 12--Special Provisions--Illinois
These changes apply to all policies written on or after July 1, 1999.
INDIANA
The Auto Service Risk Multistate Market Segment Line Of Business Program has been approved--refer to Countrywide section above. This change applies to all policies written on or after October 1, 1999.
IOWA
The Auto Service Risk Multistate Market Segment Line Of Business Program has been approved--refer to Countrywide section above. This change applies to all policies written on or after October 1, 1999.
KANSAS
The Auto Service Risk Multistate Market Segment Line Of Business Program has been approved--refer to Countrywide section above. This change applies to all policies written on or after October 1, 1999.
Personal Auto Endorsement PP 03 52--Rating Information--Kansas has been revised to reflect the Kansas classification rule revisions to classification factors. Endorsement PP 03 94--Rating Information (Physical Damage)--Kansas has been withdrawn. These changes apply to all policies written on or after July 1, 1999.
LOUISIANA
Commercial Auto Endorsement CA 01 03--Louisiana Changes has been amended and CA 01 78--Louisiana Changes--Coverage Extension for Rental Vehicles has been withdrawn in response to 1997 La. Acts (former H.B. 687) and 1997 La. Acts (former H.B. 688). In these acts, the auto insurance--both liability and physical damage--provided for rental vehicles and vehicles used as temporary substitutes is primary unless the insured using the vehicle purchases specific coverage for that vehicle. These changes apply to all policies effective on or after August 1, 1999.
The Louisiana Department of Insurance has issued Insurance Regulation 69--Year 2000 Exclusions to clarify its stand on the use of Y2K endorsements and how underwriting, claims, renewals and nonrenewals should be handled with respect to Y2K exclusions. Insurers using Y2K exclusion endorsements in Louisiana should be aware of and comply with this regulation.
The 1998 Multistate Commercial Crime Revisions have been approved. Included with this revision is a new state-specific endorsement, CR 01 38--Louisiana Changes. These changes apply to all policies written on or after August 1, 1999.
MAINE
The 1998 General Liability Multistate Forms Revisions have been approved with state-specific endorsements including amendments. State-specific forms revised or added include:
CG 26 54--Maine Changes--Exclusion--Liability For Criminal Acts
CG 29 18--Maine Changes--Personal Injury Liability
In addition, Endorsement CG 21 65--Total Pollution Exclusion With A Building Heating Equipment Exception and Hostile Fire Exception was withdrawn from the Maine filing and does not apply.
These changes apply to all policies written on or after August 1, 1999.
The Auto Service Risk Multistate Market Segment Line Of Business Program has been approved--refer to Countrywide section above. This change applies to all policies written on or after October 1, 1999.
MARYLAND
The Auto Service Risk Multistate Market Segment Line Of Business Program has been approved--refer to Countrywide section above. This change applies to all policies effective on or after December 1, 1999.
Personal Auto Endorsement PP 04 59--Uninsured Motorists Coverage--Maryland, has been revised in response to the decision reached in West American vs. Popa, 1998 Lexis 1016, Dec. 22, 1998 Md. A.2d (Md. 1998), where it was ruled that the exclusion in the definition for vehicles owned by self-insurers and government entities is against public policy and thus void. The endorsement has been amended accordingly. This change applies to all policies effective on or after August 1, 1999.
A new personal umbrella liability endorsement has been approved in response to two court decisions. In the first, Sheets v. Brethren Mutual Ins. Co., 679 A.2d 540 (Md. 1996), coverage for damages that result from oral statements material to the sale of property that are made by or on behalf of the insured are excluded. As a result of Aetna Ins. Co., vs. Aaron, 112 Md. App. 472, 685 A.2d 858 (1996), the policy has been clarified to reinforce that if an insured incurs expenses as a result of third-party damages with respect to owned property, there is no coverage. These revisions carry an edition date of June 1999.
MICHIGAN
The Auto Service Risk Multistate Market Segment Line Of Business Program has been approved--refer to Countrywide section above. This change applies to all policies written on or after October 1, 1999.
MISSISSIPPI
The Auto Service Risk Multistate Market Segment Line Of Business Program has been approved--refer to Countrywide section above. This change applies to all policies written on or after October 1, 1999.
As a result of the case of Lewis vs. Allstate Ins. Co., 97-CA-00183-SCT, So. 2d., where the expected and intended exclusion in personal liability policies was challenged, revisions have been made to two personal lines endorsements to clarify that even if the bodily injury or property damage is of a different kind, quality or degree or is sustained by a different person, party or property than initially expected/intended, the exclusion will apply. The revised endorsements are:
HO 01 23-- Special Provisions--Mississippi
DL 25 23--Special Provisions--Mississippi
These changes apply to all policies written on or after July 1, 1999.
MISSOURI
The Auto Service Risk Multistate Market Segment Line Of Business Program has been approved--refer to Countrywide section above. This change applies to all policies written on or after October 1, 1999.
MONTANA
The Auto Service Risk Multistate Market Segment Line Of Business Program has been approved--refer to Countrywide section above. This change applies to all policies written on or after October 1, 1999.
NEBRASKA
The Auto Service Risk Multistate Market Segment Line Of Business Program has been approved--refer to Countrywide section above. This change applies to all policies written on or after October 1, 1999.
NEVADA
The Auto Service Risk Multistate Market Segment Line Of Business Program has been approved--refer to Countrywide section above. This change applies to all policies written on or after October 1, 1999.
NEW MEXICO
The Auto Service Risk Multistate Market Segment Line Of Business Program has been approved--refer to Countrywide section above. This change applies to all policies written on or after October 1, 1999.
NORTH CAROLINA
The Auto Service Risk Multistate Market Segment Line Of Business Program has been approved--refer to Countrywide section above. This change applies to all policies effective on or after December 1, 1999.
NORTH DAKOTA
The Auto Service Risk Multistate Market Segment Line Of Business Program has been approved--refer to Countrywide section above. This change applies to all policies written on or after October 1, 1999.
OHIO
The Auto Service Risk Multistate Market Segment Line Of Business Program has been approved--refer to Countrywide section above. This change applies to all policies written on or after October 1, 1999.
OKLAHOMA
The Auto Service Risk Multistate Market Segment Line Of Business Program has been approved--refer to Countrywide section above. This change applies to all policies written on or after October 1, 1999.
OREGON
The Auto Service Risk Multistate Market Segment Line Of Business Program has been approved--refer to Countrywide section above. This change applies to all policies written on or after October 1, 1999.
PENNSYLVANIA
The Auto Service Risk Multistate Market Segment Line Of Business Program has been approved--refer to Countrywide section above. This change applies to all policies written on or after October 1, 1999.
RHODE ISLAND
The Auto Service Risk Multistate Market Segment Line Of Business Program has been approved--refer to Countrywide section above. This change applies to all policies written on or after October 1, 1999.
In response to the decision made in Glaude vs. Continental Insurance Co., 719 A.2d. 856 (RI 1998) (Glaude II), Personal Auto Endorsement PP 01 89--Amendment of Policy Provisions--Rhode Island has been revised. The changes introduce a new insured and household exclusion for amounts in excess of the limits that are required by the Rhode Island Motor Vehicle Reparations Act. Several other changes have been made to the endorsement to add provisions regarding the required direct liability of insurers and application of subrogation recovery. These provisions have been added to comply with the following Rhode Island Law: R.I. INS. LAWS 27-7-1 and 27-8-12. These changes apply to all policies written on or after August 1, 1999.
SOUTH CAROLINA
The Auto Service Risk Multistate Market Segment Line Of Business Program has been approved--refer to Countrywide section above. This change applies to all policies written on or after October 1, 1999.
SOUTH DAKOTA
The 1998 General Liability Multistate Forms Revisions have been approved with state-specific endorsements including amendments. State-specific forms revised or added include:
CG 28 14--South Dakota Changes--Extended Reporting Period Option
CG 28 15--South Dakota Extended Reporting Period Endorsement
These changes apply to all policies written on or after August 1, 1999.
The Auto Service Risk Multistate Market Segment Line Of Business Program has been approved--refer to Countrywide section above. This change applies to all policies written on or after October 1, 1999.
TENNESSEE
The Auto Service Risk Multistate Market Segment Line Of Business Program has been approved--refer to Countrywide section above. This change applies to all policies written on or after October 1, 1999.
UTAH
The Auto Service Risk Multistate Market Segment Line Of Business Program has been approved--refer to Countrywide section above. This change applies to all policies written on or after October 1, 1999.
WEST VIRGINIA
The Auto Service Risk Multistate Market Segment Line Of Business Program has been approved--refer to Countrywide section above. This change applies to all policies written on or after October 1, 1999.
WISCONSIN
The Auto Service Risk Multistate Market Segment Line Of Business Program has been approved--refer to Countrywide section above. This change applies to all policies written on or after October 1, 1999.
WYOMING
The Auto Service Risk Multistate Market Segment Line Of Business Program has been approved--refer to Countrywide section above. This change applies to all policies written on or after October 1, 1999. *
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