Personal Auto--Arizona has adopted the 12-89, 6-94 and 6-98 revisions to the Personal Auto Policy effective for policies written on or after May 1, 2000. Revisions from the existing form are extensive and beyond this summary. For those familiar with the 6-94 form, the following changes have been made: (This recap is not "all inclusive." Please research and evaluate the new forms and endorsements carefully before using.)
* The definition of "you" and "your" has been revised to give 90-day temporary coverage to separated spouses and immediate family members while a new residence is sought or a replacement policy has been secured, whichever comes first.
* Pickups and vans that are leased for at least 6 months or more are now added to the definition of private passenger type autos.
* A new definition has been added for "newly acquired autos," and the coverage applying to the newly acquired auto will be the broadest coverage of any vehicle currently listed on the policy instead of just the coverage of the vehicles it replaces.
* Defense coverage has been reworded to clarify that once the limit of liability has been exhausted--whether by a settlement or a judgment, defense coverage ceases.
* Loss of earnings under Supplementary Payments is increased from $50 per day to $200.
* With reference to a non-owned pickup or van, previously only those non-owned pickups or vans that were temporary substitutes were covered for business use. Any such that was rented or borrowed was not covered. In this new revision, liability for the business use of rented or borrowed non-owned pickups and vans has been added.
* The "reasonable belief" exclusion has been revised so that it no longer applies to a family member while using a covered auto belonging to the insured.
* The Nuclear Energy Exclusion has been revised to update the name of American Nuclear Insurers to Nuclear Energy Liability Insurance Association.
* Liability protection for non-owned golf carts has been added.
* The limits of liability for Part A--Liability Coverage, Part C--Uninsured Motorist Coverage and for Underinsured Motorists Coverage will now be on a split-limits basis.
* With respect to both Uninsured Motorist Coverage and Underinsured Motorists Coverage, the Other Insurance provision has been revised to clarify that the PAP will be on an excess basis over any other collectible UM or UIM (or other similar type coverage) not over any other automobile coverage.
* The coverage built into the policy for temporary transportation expenses has been increased to $20 per day with a $600 maximum.
* Physical damage coverage for permanently installed telephones is added, and the sub-limit for aftermarket sound reproducing equipment is increased to $1,000. That amount can be increased for additional premium.
Again, the items listed above are highlights of only some, not all of the changes and revisions.
GEORGIA
General Liability--The Georgia Condominium Act requires general liability insurance policies that cover condominium associations to add as additional insured the board of directors, officers, employees of the association, unit owners and other persons entitled to occupy the condominium unit. Doing this gives these individuals both defense and indemnity coverage. The new endorsement to this effect is CG 26 57 04 00 Georgia Changes-Additional Insured-Condominium Associations, which is effective for all policies written on or after April 1, 2000.
KANSAS
Personal Auto--For policies written on or after May 1, 2000, the new endorsement PP 03 52 05 00 Rating Information-Kansas is effective. This new endorsement explains the six-digit code that classifies the auto and the driver. The second and third digits identify the age, gender, marital and driver training status of the individual. The fourth digit identifies the use of the vehicle. The fifth digit identifies the characteristics of the car including age, performance and whether one or more cars are insured. The sixth digit gives the safe driver plan points.
MINNESOTA
Personal Auto--In response to changes requested by the Minnesota Department of Commerce, the appraisal provisions of the PP 01 60 05 00 Amendment of Policy Provisions-Minnesota have been revised for all policies written on or after June 1, 2000. The changes include:
--All physical damage disputes less than $10,000 must be submitted to binding arbitration. For amounts over $10,000 either party can demand an appraisal.
--Minnesota statute section 65B.17 requires 60 days' notice of nonrenewal.
MISSOURI
Commercial Auto, Commercial Property, Farm, General Liability, Commercial Multiple Line--Mandatory Pollution Exclusions are being revised in response to Hocker Oil Company v. Barker-Phillips-Jackson and Ranger Insurance Company, 997 S.W. 2d. 510 (Mo. App. S.D. 1999). The case involved a gasoline leak from an underground storage tank at a service station. The court ruled that since the Ranger insurance policy did not specifically identify gasoline as a pollutant in its pollution exclusion, there was coverage for the gasoline leak. In its ruling it found it odd that an insurance company would sell to a gas station a liability policy that would exclude the major exposure to loss. The new language adds the following sentence to the exclusion, "This pollution exclusion applies even if such irritant or contaminant has a function in your business, operations, premises, site or location." The endorsement now makes it clear that regardless of how important the potential source of pollutant is to the business, there is no coverage. For gasoline risks, the language adds the phrase, "such as gasoline, fuels, lubricants and other operating fluids at a gasoline station."
The following endorsements have been approved for member companies for policies written on or after May 1, 2000:
-- CG 01 34 05 00 Missouri Changes - Pollution Exclusion (CGL)
-- CG 01 35 05 00 Missouri Changes - Gasoline Risks - Pollution Exclusion (CGL)
-- CG 31 12 05 00 Missouri Changes - Pollution Exclusion (OCP)
-- CG 31 13 05 00 Missouri Changes - Pollution Exclusion (RR Protective)
-- BP 01 57 05 00 Missouri Changes - Pollution Exclusion (BOP)
-- BP 01 60 05 00 Missouri Changes - Gasoline Risks - Pollution Exclusion (BOP)
-- IL 01 05 05 00 Missouri Changes - Pollution (CL Prop, Farm)
-- CA 01 66 05 00 Missouri Changes - Pollution Exclusion (All C/L Auto Forms)
-- CA 01 69 05 00 Missouri Changes - Auto Repair Shops and Service Stations - Pollution Exclusion (Garage)
NEW JERSEY
Commercial Auto--The New Jersey Superior Court ruled in Estate of Leeman v. Eagle Ins. Co., 309 N.J. Super. 525, 707 A.2d 1037 (1998), that the definition of private passenger auto must be applied in accordance with the definition found in N.J.S.A. Sec. 39:6A-2. The part of this New Jersey statute that applies says that a private passenger auto does NOT include an auto "customarily used in the occupation, profession, profession or business of the insured other than farming or ranching." However, the Eagle policy said that a private passenger auto would not include an auto "customarily used for business, occupation or professional purposes other than farming or ranching." In this case it was found that the decedent (Leeman) did not customarily use the vehicle and there was no evidence to suggest that the vehicle was being used in direct relationship to his business.
Changes affect CA 22 30 04 00 New Jersey Personal Injury Protection and mimic those recently changed in the Personal Auto Policy. The new form says under (E. Definitions, M.3.c). an auto does not include "A pickup, delivery sedan, van or utility automobile customarily used in the occupation, profession or business of an 'insured'..." The previous language said "... customarily used for business, occupational or professional purposes..."
This change is effective for participating companies for all policies written on or after May 1, 2000.
NEW YORK
Homeowners and Dwelling--Endorsement HO 04 21 10 94 (homeowners) and DP 04 21 10 94 (dwelling) Windstorm Protective Devices has been approved for participating insurers for all policies written on or after May 1, 2000. Changes are in response to NY Regulation 57, requiring premium credits for properly installed protective devices that can withstand wind and windborne debris of speed up to 110 mph. The endorsement itself deals primarily with storm shutters and other devices that protect all exterior wall and roof openings including doors, windows, skylights and vents that are part of all buildings on the premises. You must agree to maintain the devices in working order and have someone close and secure the devices when you aren't there. Failure to comply will not negate coverage, but the insured will probably lose the premium credits.
Businessowners--A similar endorsement is being filed for policies written by participating insurers on or after June 1, 2000. The new endorsement is: BP 03 15 08 99 New York Changes-Windstorm Protective Devices (BOP).
NORTH CAROLINA
Employment Related Practices, General Liability, Professional Liability--
North Carolina Senate Bill 594 requires that the policy aggregate in an extended reporting period in a claims-made policy be 100% of the expiring policy's aggregate. Sixteen new extended and supplemental extended reporting period endorsements have been approved; five North Carolina Changes forms have been revised; and all previous editions of the extended and supplemental extended reporting period endorsements have been withdrawn.
OHIO
Commercial Property, Commercial Inland Marine, Farm and Businessowners--Changes are in response to Ohio regulation 3901-1-54(G)(1). This rule requires that a company must accept or deny a claim within 21 days of receiving a properly completed proof of loss. If the insurer needs more time to decide, it must do so within those 21 days, provide an explanation to the claimant as to why it needs more time and notify the claimant at least every 45 days in writing about the status of the investigation. The following endorsements are approved for participating companies for policies written on or after May 1, 2000:
-- BP 01 58 04 00 Ohio Changes (BOP)
-- CM 01 40 04 00 Ohio Changes (Commercial Inland Marine)
-- CP 01 23 04 00 Ohio Changes (Commercial Property)
-- FP 01 52 04 00 Ohio Changes (Farm)
OREGON
Homeowners--These changes are as a result of the case Fleming v. United Services Automobile Association, 199 WL 1004428, _P.2D _ (OR. 1999). In this case the court interpreted Oregon Statute: OR. REV. STAT. Section 742.246(2) [fire insurance] as to require that a title that precedes any policy provision that restricts or abridges the rights of the insured under the policy must be in at least 8 point capital letters and so state "restriction or abridgement." The case itself involved a pollution claim (involving an illegal drug laboratory). The Oregon Supreme Court said that since the policy was not property constructed, the exclusion was not valid. Any homeowners forms or endorsements that have such restrictions or abridgments are being revised to include the words INCLUDES RESTRICTIONS OR ABRIDGMENTS in the appropriate titles throughout. These changes are effective for participating companies for policies written on or after April 1, 2000.
Commercial Property--In response to Fleming, discussed above, commercial changes involving the same language have been approved for participating insurers for policies written on or after March 1, 2000. *
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