COUNTRYWIDE
1999 Personal Auto Endorsement: PP 13 01--Coverage For Damage to Your Auto Exclusion
A new, mandatory, multistate personal auto endorsement has been developed which will be attached to personal auto policies to exclude coverage for the "diminution in value" of a covered auto. (See story on page 90.) The endorsement adds a new definition to the policy for "diminution in value." Diminution in value is the actual or perceived loss of market or resale value of the auto which may result from a loss. This definition is in addition to the new exclusion under Part D--Coverage For Damage To Your Auto. The exclusion states that the policy does not cover diminution in value to covered or non-owned autos.
Listed below under the individual states are those that have approved the above endorsement. The text will not be repeated but will refer back to this Countrywide section.
The withdrawal of personal auto endorsement PP 03 26--Liability Coverage Exclusion Endorsement has been approved. This change applies to all policies written on or after February 1, 2000.
CALIFORNIA
The 1999 Personal Auto Endorsement, PP 13 01--Coverage For Damage to Your Auto Exclusion, has been approved for ISO participating insurers in the California forms service and may be used on or after July 15, 1999.
COLORADO
The 1999 Personal Auto Endorsement, PP 13 01--Coverage For Damage to Your Auto Exclusion, has been approved--refer to the Countrywide section above. This change carries a distribution date of December 1, 1999.
CONNECTICUT
Personal insurance homeowners and dwelling liability endorsements have been approved to provide limited first- and third-party coverage for specific incidents of escaped fuel and lead liability. In addition, the definition of residence premises in the homeowners program has been revised at the request of the Connecticut Insurance Department to include three- and four-family dwellings. The multistate endorsement: Residence Premises--Three or Four Family Dwelling--HO 04 44, has been withdrawn.
The newly approved endorsements are:
DL 24 98--Limited Lead And Escaped Liquid Fuel Liability And Property Remediation For Escaped Liquid Fuel Coverages
DL 24 99--Rating Information--Limited Lead And Escaped Liquid Fuel Liability And Property Remediation For Escaped Liquid Fuel Coverages
HO 01 06--Special Provisions--Connecticut
HO 05 68--Property Remediation For Escaped Liquid Fuel And Limited Lead And Escaped Liquid Fuel Liability Coverages
HO 05 69--Property Remediation For Escaped Liquid Fuel And Limited Lead And Escaped Liquid Fuel Liability Coverages
HO 05 71--Rating Information Property Remediation For Escaped Liquid Fuel And Limited Lead And Escaped Liquid Fuel Liability Coverages
HO 05 82--Property Remediation For Escaped Liquid Fuel And Limited Lead And Escaped Liquid Fuel Liability Coverages
These changes apply to all policies effective on or after December 1, 1999.
DELAWARE
The 1999 Personal Auto Endorsement, PP 13 01--Coverage For Damage to Your Auto Exclusion, has been approved--refer to the Countrywide section above. This change applies to all policies written on or after December 1, 1999.
DISTRICT OF COLUMBIA
The 1999 Personal Auto Endorsement, PP 13 01--Coverage For Damage to Your Auto Exclusion, has been approved--refer to the Countrywide section above. This change applies to all policies written on or after December 1, 1999.
IDAHO
The 1999 Personal Auto Endorsement, PP 13 01--Coverage For Damage to Your Auto Exclusion, has been approved--refer to the Countrywide section above. This change applies to all policies written on or after December 1, 1999.
ILLINOIS
The 1999 changes to the Multistate Earthquake and Volcanic Eruption Property Coverages have been approved. These changes apply to all policies written on or after February 1, 2000.
INDIANA
The 1999 Personal Auto Endorsement, PP 13 01--Coverage For Damage to Your Auto Exclusion, has been approved--refer to the Countrywide section above. This change applies to all policies written on or after December 1, 1999.
IOWA
The 1999 Personal Auto Endorsement, PP 13 01--Coverage For Damage to Your Auto Exclusion, has been approved--refer to the Countrywide section above. This change applies to all policies written on or after December 1, 1999.
KENTUCKY
The 1999 Personal Auto Endorsement, PP 13 01--Coverage For Damage to Your Auto Exclusion, has been approved--refer to the Countrywide section above. This change applies to all policies written on or after December 1, 1999.
MARYLAND
In response to the 1999 Maryland Laws, (former H.B. 990), numerous commercial lines changes endorsements have been revised. The revision is to the cancellation condition in commercial lines policies with respect to policies that are financed by a premium finance company. When a financed policy is cancelled, no matter who cancels, any return premium is computed pro rata (except for items such as expense constants, administrative fees or other nonrefundable charges that have been approved by the insurance commissioner). The revised endorsements include:
BM 01 07--Maryland Changes
CA 02 15--Maryland Cancellation Changes
CG 02 01--Maryland Changes (CGL, Liquor, Pollution, Products)
CG 28 16--Maryland Changes--Amendment Of Cancellation Condition (OCP)
CG 29 70--Maryland Changes--Cancellation and Nonrenewal
(Railroad)
CG 30 37--Maryland Changes--Cancellation And Nonrenewal
(UST)
CR 01 03--Maryland Changes
EP 02 03--Maryland Changes
IL 02 07--Maryland Changes (Businessowners, Farm, Commercial Inland Marine and Commercial Property)
PA 02 16--Maryland Changes--Cancellation And Nonrenewal
PR 02 08--Maryland Changes--Cancellation And Nonrenewal
These changes apply to all policies effective on or after February 1, 2000.
MASSACHUSETTS
The new Personal Umbrella Policy (PUP) has been approved with state-specific endorsements. It provides
a minimum limit of liability of
$1 million with higher limits available and is subject to a Self-Insured Retention or SIR. 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.
MINNESOTA
The 1999 Personal Auto Endorsement, PP 13 01--Coverage For Damage to Your Auto Exclusion, has been approved--refer to the Countrywide section above. This change applies to all policies written on or after December 1, 1999.
Numerous changes have been made to the commercial property amendatory endorsement and a new endorsement has been developed as a result of recent court decisions. Based upon Watson v. United Services Automobile Association (USAA) 566 N.W. 2d 683 (Minn. 1997), changes have been made to CP 01 08--Minnesota Changes to amend the Concealment, Misrepresentation or Fraud condition with respect to the cause of loss of fire, so that only the insured committing a fraudulent act is denied coverage.
The coinsurance condition which requires a signature in Minnesota, has been removed from this endorsement and moved to newly developed endorsement CP 01 57--Minnesota Changes--Coinsurance to reduce the need for repeated signatures. The Transfer Of Rights Of Recovery Against Others To Us condition in CP 01 08 is revised to clarify that if the loss or damage arises out of an intentional act of one insured, the other insured cannot waive the right of subrogation against the guilty insured.
Finally, in order to respond to Bast v. Capitol Indemnity Corporation, et al., (C9-96-1906), the mortgage clause is changed so that it requires the mortgage holder to be notified if there is a reduction in coverage to mortgaged property. These changes apply to all policies written on or after February 1, 2000.
MISSISSIPPI
The 1999 Personal Auto Endorsement, PP 13 01--Coverage For Damage to Your Auto Exclusion, has been approved--refer to the Countrywide section above. This change applies to all policies written on or after December 1, 1999.
MISSOURI
The 1999 Personal Auto Endorsement, PP 13 01--Coverage For Damage to Your Auto Exclusion, has been approved--refer to the Countrywide section above. This change applies to all policies written on or after December 1, 1999.
MONTANA
The 1999 Personal Auto Endorsement, PP 13 01--Coverage For Damage to Your Auto Exclusion, has been approved--refer to the Countrywide section above. This change applies to all policies written on or after December 1, 1999.
NEBRASKA
The 1999 Personal Auto Endorsement, PP 13 01--Coverage For Damage to Your Auto Exclusion, has been approved--refer to the Countrywide section above. This change applies to all policies written on or after December 1, 1999.
NEVADA
The 1999 Personal Auto Endorsement, PP 13 01--Coverage For Damage to Your Auto Exclusion, has been approved--refer to the Countrywide section above. This change applies to all policies written on or after December 1, 1999.
NEW MEXICO
Revision has been made to commercial interline endorsement, IL 02 98--New Mexico Changes--Cancellation And Nonrenewal, to make it applicable to the Products/Completed Operations Liability Coverage Part. This change applies to all policies written on or after December 1, 1999.
NEW YORK
The 1999 Personal Auto Endorsement, PP 13 01--Coverage For Damage to Your Auto Exclusion, has been approved--refer to the Countrywide section above. This change applies to all policies written on or after December 1, 1999.
NORTH CAROLINA
Commercial property endorsement, CP 01 18--North Carolina Changes, has been revised to remove the windstorm or hail exterior paint and waterproofing exclusion so that a new endorsement could be developed to specifically address the issue with the new Basic Group II zip code territory structure. The new endorsement is CP 01 77--North Carolina Windstorm or Hail Exterior Paint and Waterproofing Exclusion. These changes apply to all policies effective on or after April 1, 2000.
NORTH DAKOTA
The 1999 Personal Auto Endorsement, PP 13 01--Coverage For Damage to Your Auto Exclusion, has been approved--refer to the Countrywide section above. This change applies to all policies written on or after December 1, 1999.
Revisions have been made to a number of commercial fire, inland marine, farm and multiple lines endorsements to comply with 1999 N.D. Stat. (former H.B. 1202) which states that the innocent co-insured victim of domestic violence cannot be denied coverage payments if that victim did not cooperate or contribute to the loss. Payment is based upon ownership interest and reduced by any payment to a secured interest. Further, the guilty person can be subrogated against for recovery of damages paid. The innocent insured must transfer such rights and cooperate. The amended forms include:
BP 01 17--North Dakota Changes
CP 01 14--North Dakota Changes
CM 01 31--North Dakota Changes--Intentional Act
FP 01 12--North Dakota Changes
These changes apply to all policies written on or after December 1, 1999.
OHIO
The 1999 Personal Auto Endorsement, PP 13 01--Coverage For Damage to Your Auto Exclusion, has been approved--refer to the Countrywide section above. This change applies to all policies written on or after December 1, 1999.
OKLAHOMA
The 1999 Personal Auto Endorsement, PP 13 01--Coverage For Damage to Your Auto Exclusion, has been approved--refer to the Countrywide section above. This change applies to all policies written on or after December 1, 1999.
OREGON
The 1999 Personal Auto Endorsement, PP 13 01--Coverage For Damage to Your Auto Exclusion, has been approved--refer to the Countrywide section above. This change applies to all policies written on or after December 1, 1999.
PENNSYLVANIA
The 1999 Personal Auto Endorsement, PP 13 01--Coverage For Damage to Your Auto Exclusion, has been approved--refer to the Countrywide section above. This change applies to all policies written on or after December 1, 1999.
SOUTH CAROLINA
The 1999 Personal Auto Endorsement, PP 13 01--Coverage For Damage to Your Auto Exclusion, has been approved--refer to the Countrywide section above. This change applies to all policies written on or after December 1, 1999.
SOUTH DAKOTA
The 6-98 Multistate Personal Auto Policy (PAP) Revisions have been approved with changes to state-specific endorsement PP 01 65--Amendment of Policy Provisions--South Dakota. These changes apply to all policies written on or after December 1, 1999.
UTAH
The 1999 Personal Auto Endorsement, PP 13 01--Coverage For Damage to Your Auto Exclusion, has been approved--refer to the Countrywide section above. This change applies to all policies written on or after December 1, 1999.
In response to 1999 Utah Laws (former S.B. 184) which amends Utah Code Ann. Section 31A-22-303, revision has been made to PP 01 93-Amendment of Policy Provisions-Utah to remove family members from the household liability exclusion. According to Utah State Law, liability for family members may not be reduced because an insured, permissive user or family member was at fault for an accident in a covered vehicle. This change applies to all policies written on or after February 1, 2000.
WEST VIRGINIA
The 1999 Personal Auto Endorsement, PP 13 01--Coverage For Damage to Your Auto Exclusion, has been approved--refer to the Countrywide section above. This change applies to all policies written on or after December 1, 1999.
WYOMING
The 1999 Personal Auto Endorsement, PP 13 01--Coverage For Damage to Your Auto Exclusion, has been approved--refer to the Countrywide section above. This change applies to all policies written on or after December 1, 1999. *
©COPYRIGHT: The Rough Notes Magazine, 1999