COUNTRYWIDE
Businessowners Special Policy BP 00 02 12 99
Minor revisions to reflect inadvertent errors have been filed and approved in most jurisdictions. These are technical corrections only. Listed below under the individual states are those that have approved the above revision. The text will not be repeated but will refer back to their respective Countrywide section.
1999 Personal Auto Endorsement: PP 13 01 12 99--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. 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 provide coverage for 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.
Businessowners--Businessowners Special Policy BP 00 02 12 99 technical corrections applicable to all policies written on or after February 1, 2000.
Commercial Auto--Alaska Uninsured and Underinsured Motorists coverage reissued after correcting printing errors. The new form number is CA 21 60 07 99.
CALIFORNIA
Farm Program--Two revised endorsements have been approved for ISO participating insurers in the California forms service and may be used on or after May 7, 1999. Changes have to do with the restructuring of the farm program into five separate forms.
IL 04 15 04 98 Protective Safeguards--Changes made in the form indicate that this endorsement also is added to: the Commercial Property General Conditions in the new Farm Property--Other Farm Provisions Form, Additional Coverages, Conditions, and Definitions. Numbering changes reflect the other major modifications of this form.
IL 02 70 07 99--California Changes--Cancellation and Nonrenewal form has been changed to reflect the new farm policy form names and policy sections.
Personal Auto--Revised Personal Auto Uninsured Motorists Coverage--California Endorsement PP 04 86 02 00 and Amendment of Policy Provisions--California PP 01 69 02 00 have been approved for ISO participating insurers in the California forms service and may be used on or after October 5, 1999.
This change is in response to the new California Insurance Code Sec. 11580.011 which was the result of Senate Bill 363. Effective January 1, 2000, the law requires that every auto policy that provides collision, physical damage coverage or uninsured motorists coverage must provide explicit coverage for the replacement of a child passenger restraint system that was in use by a child during an accident for which the policy is liable. The language of Uninsured Motorists coverage in Insuring Agreement C. "Property Damage" now provides coverage for a child passenger restraint system that both meets federal motor vehicle safety standards and was in use by the child involved in the accident.
CONNECTICUT
Homeowners Program--In November 1999 we reported that 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 to include three and four family dwellings. The multistate endorsement: Residence Premises--Three or Four Family Dwelling--HO 04 44 has been withdrawn and Connecticut Special Provisions Endorsement H0 01 06 has been revised to include three and four family dwellings in the "residence premises" definition.
DISTRICT OF COLUMBIA
Businessowners--Businessowners Special Policy BP 00 02 12 99 technical corrections applicable to all policies written on or after February 1, 2000.
FLORIDA
Personal Auto--Personal Auto Uninsured Motorists Coverage--Florida (Non-Stacked) PP 04 43 04 00 and Personal Auto Uninsured Motorists Coverage--Florida (Stacked) PP 04 42 03 00 have been revised in response to The District Court of Appeals of Florida (3rd District) ruling in State Farm Mut. Auto Ins. Co. v. Dixon 732 So. 2d 1 (Fla. 3rd DCA 1999). Previous court cases in Florida stated that payment for non-economic damages (i.e., pain and suffering ) did not have to be paid unless Florida Statute threshold requirements for injury seriousness were met. Dixon affirmed that the insured plaintiff did have to meet the threshold requirements before non-economic damages would be paid. The changes to the endorsement restate these threshold requirements in the policy and include: "significant and permanent loss of an important bodily function; permanent injury within a reasonable degree of medical probability, other than scarring or disfigurement; significant and permanent scarring or disfigurement; or death."
Both forms have been revised for use by participating companies for policies issued on or after February 1, 2000.
ILLINOIS
Professional Liability--The following professional liability endorsements for Illinois have been approved for attachment to the Businessowners Program:
BP 08 50 05 00--Illinois Barbers and Beauticians Professional Liability
BP 08 51 05 00--Illinois Funeral Directors Professional Liability
BP 08 52 05 00--Illinois Optical and Hearing Aid Establishments
BP 08 53 05 00--Illinois Printers Errors and Omissions Liability
BP 08 54 05 00--Illinois Veterinarians Professional Liability
The effective date for participating insurers is for policies written on or after March 1, 2000. It is important to note that the liability and medical expense limits of insurance listed on the schedule within each endorsement are separate and distinct from the liability and medical expense limits (and aggregates) in the liability section of the Businessowners policy. Also note that each of these endorsements carries an occurrence limit but no aggregate limit of insurance.
INDIANA
Interline Forms--The Indiana Changes-Rights of Recovery Interline Form IL 01 86 09 00 has been revised. It no longer applies to the Commercial Inland Marine coverage part. Rights of recovery language for inland marine has been incorporated into CM 01 39 09 00 Indiana Changes--Rights of Recovery form. The proposed effective date of change for participating insurers is for policies written on or after September 1, 2000.
KANSAS
Personal Auto--The 6-98 Multistate Personal Auto Policy (PAP) Revisions have been approved for use by participating companies for policies written on or after February 1, 2000. For more information about these changes see "Changes to the ISO PAP," by Bruce Hicks, CPCU, CLU, July 1998 edition of Rough Notes magazine and the "PF&M Companion" from the May, 1998 issue of Rough Notes magazine.
Revised Kansas state-specific endorsements include:
PP 01 56 12 99--Amendment of Policy Provisions--Kansas
PP 03 95 12 99--Single Liability Limit--Kansas
PP 04 57 12 99--Uninsured Motorists Coverage--Kansas
PP 04 79 12 99--Single Uninsured Motorists Limits--Kansas
Most changes within these state-specific endorsements are to reflect the new language adopted by the 6-98 multistate revisions.
MAINE
Businessowners--Businessowners Special Policy BP 00 02 12 99 technical corrections applicable to all policies written on or after February 1, 2000.
Personal Auto--Endorsement PP 01 75 03 00 Amendment of Policy Provisions--Maine has been revised for participating insurers for policies written on or after March 1, 2000. This change is in response to a Maine Supreme Judicial Court ruling in Mack v. Acadia Ins. Co., 709 A.2d 1187 (Maine 1998). In Mack the court found that the perils listed within the Other Than Collision provision on the Personal Auto policy was an exclusive list. The intent of the form was not to provide an exclusive list of coverages for other than collision, and the form has been revised to reflect that intent. Under the present form, collision is defined as:
B. "Collision" means the upset of "your covered auto" or a "non-owned auto" or their impact with another vehicle or object.
Loss caused by the following is considered other than "collision": ... (and a list of causes of loss follows.)
Under the changes in the Maine endorsement, the definition of collision now reads:
B. "Collision" means the upset of "your covered auto" or a "non-owned auto" or their impact with another vehicle or object.
However, loss caused by the following is not considered "collision": ... (and a list of causes of loss follows.)
MINNESOTA
Businessowners--Businessowners Special Policy BP 00 02 12 99 technical corrections applicable to all policies written on or after February 1, 2000.
Commercial Auto--Minnesota Personal Injury Protection endorsement reissued after correcting printing errors. The new form number is CA 22 25 02 00.
Homeowners Endorsement HO 01 22 02 00--Special Provisions--Minnesota has been revised to respond to Minnesota statute changes. The change is effective for participating companies for policies written on or after March 1, 2000. The changes include:
Under Exclusions, 8. Intentional Loss is a new provision. If one insured (e.g., spouse) commits arson, the other spouse (coinsured) can still collect for his/her interest in the loss (fire claims only, this will not apply to other causes of loss). This change is in response to recent court cases based upon claims of innocent coinsured spouses seeking coverage after the other spouse intentionally caused fires.
Section I and II Conditions 2. Concealment and Fraud has been revised to exclude coverage for all insureds (innocent or not) for concealment or misrepresentation for all losses EXCEPT fire. For fire only, the innocent insured is not precluded from coverage.
Under Section I Conditions, 2. Duties after a loss--The 60-day time frame has been revised to a "reasonable time" for: notification of changes in title or occupancy, specifications of damaged buildings and repair estimates, and inventory of damaged personal property. Also, failure to comply with receipts for additional living expenses and rental value; and evidence that supports claims under credit card, fund transfer card forgery and counterfeit money within 60 days won't invalidate the remaining portions of the claim.
Under Sections I and II Conditions, 8. Subrogation--An innocent insured who is paid for a loss caused by another insured who commits arson cannot waive the right to subrogate. However, if the loss was not intentionally caused by the other insured, we don't have the right to subrogate against that other insured.
Under Sections I and II Conditions, 5. Cancellation--The notice of cancellation for nonpayment of premium has been reduced from 30 to 20 days. If a policy has been in effect for less than 60 days, then the insurer must provide notice of cancellation within 20 days, not 30 days as before.
Under Sections I and II Conditions, 6. Nonrenewal, language has changed to "We may do so by written notice of our intent not to renew at least 60 days before the expiration date of this policy."
MISSOURI
Homeowners Program--Homeowners Endorsement HO1 24 12 99 Special Provisions-Missouri has been revised for participating companies for policies written on or after December 1, 1999. Section I-Conditions, 6. Appraisals has been rewritten. Appraisals now can be for both the amount of the loss and determination of actual cash value. If appraisers fail to agree on the amount of loss, the differences will be submitted to the umpire who has 30 days to make the award. A decision by any two (appraisers/umpire) will set the amount of actual cash value and the loss. These changes are in response to Missouri Department of Insurance Regulation 20 CSR 500-1.100: Standard Fire Policy.
NEBRASKA
Commercial Auto--Nebraska Uninsured and Underinsured Motorists coverage reissued after correcting printing errors. The new form number is CA 21 70 02 00.
Personal Auto--Personal Auto Endorsement PP 04 48 02 00 Uninsured/Underinsured Motorists Coverage--Nebraska has been revised for participating companies for policies written on or after February 1, 2000. The change is made in response to Allied Mutual Insurance Co. v. Action Electric Co. and Emry, 593 N.W.2d 175 (Nebraska 1999). In Emry, the court held that underinsured motorists coverage could not limit a person to "occupying" a vehicle when the liability coverage elsewhere in the policy covered persons "using" a vehicle. Insuring Agreement B.2. has been revised to include an insured as "any other person 'occupying' or using 'your covered auto.'"
NEW MEXICO
Personal Auto--The 1999 Personal Auto Endorsement, PP 13 01 12 99--Coverage For Damage to Your Auto Exclusion has been approved for ISO participating insurers and may be used on or after February 1, 2000.
Multiple Programs--New Mexico Statute Sec. 4.59A-16B-1-10 in part established the "Domestic Abuse Insurance Protection Act" which permits an insurer to deny a claim (of a domestic abuser) as the result of intentional conduct by a named insured who commits an act of domestic abuse. However claims of an innocent insured victim will be paid subject to her/his interest in the claim. The insurer can subrogate against the abuser. The definition of domestic abuse is: "attempting to cause or intentionally, knowingly or recklessly causing damage to property for the purpose of intimidating or attempting to control the behavior of another person, including a minor." A number of endorsements have been revised or introduced to reflect these changes:
Businessowners Endorsement BP 01 09 03 00--New Mexico Changes
Commercial Inland Marine Endorsement CM 01 38 03 00--New Mexico Changes--Intentional Acts
Commercial Property Endorsement CP 01 36 03 00--New Mexico Changes (for commercial property coverage part)
Commercial Property Endorsement CP 01 37 03 00--New Mexico Changes (for standard property coverage part)
Commercial Inland Marine--NEW--CM 01 38 03 00--New Mexico Changes--Intentional Acts
Farm Endorsement FP 01 17 03 00--New Mexico Changes
NEW YORK
Employment Related Practices--The Employment Related Practices program has been introduced in New York for participating insurers for policies written on or after February 1, 2000. Please refer to the August 1998 issue of Rough Notes magazine for the PF&M companion discussion of the countrywide implementation of the program. Also see "An overview of ISO's new employment-related practices liability program," by Diana Kowatch, CPCU, AU, AAM, CPIW, in the March 1998 issue of Rough Notes magazine.
Included with this filing is a New York Changes Endorsement EP 01 03 01 99. N.Y. Differences include:
Per statute: Defense will be provided only if coverage for a suit is available in the policy.
Because defense is WITHIN the limit of insurance, New York regulation requires that the insured be permitted to select an attorney or consent to the insurer's choice and participate in the defense of the claim.
Removes the phrase "obtained after an actual trial" from Condition D. Legal Action Against Us thus giving the insured the opportunity of suing the insured (subject to other conditions) even if no trial took place.
New York premium audit rules are applied.
The extended reporting period was altered to accommodate New York Regulation 121 that regulates the timing and availability of the ERP.
Under Exclusions 2--Sexual Harassment, defense coverage applies as long as there is at least one outstanding "claim" covered under the policy. (Sexual harassment defense coverage applies only until the insured is legally found to have sexually harassed--i.e., the presumption is no harassment until harassment is proven to exist.)
The definition of "discrimination" has been changed. Intentional discrimination cannot be covered in New York. However, "disparate impact discrimination" can be covered and means the type of discrimination that is not intentional but can be detected statistically. The employer's innocent vicarious liability for the discriminatory acts of the employee is covered.
OHIO
Commercial Auto--Commercial Auto Endorsement CA 21 33 03 00 Ohio Uninsured Motorist Coverage--Bodily Injury has been revised for participating insurers for all policies written on or after March 1, 2000. A series of court cases involving the Who is an Insured provision necessitated this change. In the most recent case, Scott-Pontzer v. Liberty Mut. Fire Ins. Co. (1999), Ohio St.3d, an employee of Superior Dairy was driving his wife's vehicle during non-working hours when he was involved in an accident with a tortfeasor and was killed. The dairy had commercial auto insurance with underinsured motorists coverage. The court said that "you" in the Who is an Insured provision was ambiguous and could refer to the named insured which was Superior Dairy and could also refer to the employee. Under the current definition of Who is an Insured, the following are insureds:
1. "You",
2. If you are an individual, any "family member",
3. Anyone else "occupying" a covered "auto or a temporary substitute for a covered "auto" ...
4. Anyone for damages he or she is entitled to recover because of "bodily injury" sustained by another "insured".
The court reasoned that a corporation can operate only through people and thus gave coverage for the claim involving the (off-work) driver operating his wife's car as if he were the named insured, i.e., "you." There is no language in the existing Uninsured Motorists endorsement to suggest that an employee must be acting within the scope of employment in order to receive UM coverage.
The new language splits the definition of named insured into two parts: individual; and partnership, limited liability company, corporation or any other form of corporation:
1. If the Named insured is designated in the declarations as:
a. An individual, then the following are "insureds".
(1) The named insured and any "family members".
(2) Anyone occupying a covered "auto" or a temporary substitute...
(3) Anyone for damages he or she is entitled to recover because of "bodily injury" sustained by another "insured".
b. A partnership, limited liability company, corporation or any other form of organization then the following are "insureds":
(1) Anyone occupying a covered "auto" or a temporary substitute....
(2) Anyone for damages he or she is entitled to recover because of "bodily injury" sustained by another "insured".
Note that the "named insured" and any family members are not included in the partnership, limited liability company, and corporation definition.
OREGON
Commercial Auto--Oregon Personal Injury Protection endorsement reissued after correcting printing errors. The new form number is CA 22 36 02 00.
Personal Auto--Four forms have been revised for participating insurers for policies written on or after February 1, 2000:
PP 01 94 02 00--Amendment of Policy Provisions--Oregon
PP 04 44 02 00--Property Damage Uninsured Motorists Coverage--Oregon
PP 04 51 02 00--Uninsured Motorists Coverage--Oregon
PP 05 58 02 00--Personal Injury Protection Coverage--Oregon
Changes are in response to two Oregon law changes:
1999 Or. Laws 434 (former House Bill 2608) excludes personal injury protection for motor vehicles, motorcycles and mopeds that are owned or furnished for the regular use of the named insured or "family member" and the vehicle is not listed on the policy. The other insurance provision in PP 05 58 02 00 has been revised to reflect this change.
The other form changes are in response to 199 Or. Laws 438 (former House Bill 2740) which states that your insurance is primary if you are using a vehicle owned by a car dealer, renter or repairer (unless provided otherwise by agreement). The provider's insurance is excess. Also, the Personal Auto policy is primary for a non-owned vehicle used in the course of employment. The Personal Auto policy endorsements say that if the non-owned car was being used in business, it will pay only the share of the loss that must be paid on a primary basis. That share is the proportion that the limit of liability bears to the total of all applicable limits of liability for coverage provided on a primary basis.
TENNESSEE
Commercial Auto--Tennessee Uninsured Motorists Coverage reissued after correcting printing errors. The new form number is CA 21 20 02 00.
Commercial Auto--CA 21 20 04 00 Tennessee Uninsured Motorists Coverage has been revised for participating insurers for policies written on or after April 1, 2000. This change is in response to 1999 Tenn. Pub. Acts 506, (former S.B. 1590) which amends the Tennessee Code Ann. Sec. 56-7-1206. An arbitration procedure is added for when the injured insured is offered a tentative settlement with the insured, owner or operator of the uninsured vehicle for the full limits of all liability policies or bonds available. The endorsement defines an "uninsured motor vehicle" as one where the limit of insurance is less than provided by law or is an underinsured motor vehicle as defined by the policy. Within this definition an uninsured motorist may have some underlying liability coverage. There are special requirements in the arbitration procedure that bear careful attention by claims departments.
WASHINGTON
Commercial Auto--A number of commercial auto endorsements have been changed for participating insurers for policies written on or after March 1, 2000:
CA 22 57 03 00--Washington Personal Injury Protection--Named Individuals. Changes in D. Limit of Insurance 2. provide no offset for losses also paid under workers compensation for amounts payable under increased limits personal injury protection benefits.
Under E. Changes, 1. Arbitrations, arbitration will take place where the "insured: lives or in the county where the 'insured' resided at the time of the accident."
CA 21 34 03 00--Washington Underinsured Motorists Coverage. Under Duties in the Event Of Accident, Claim, Suit or Loss the new form eliminates the duty of prompt notification after a hit-and-run driver is involved, and the duty to promptly send "us" copies of legal papers if a "suit" is brought. Failure to notify of a tentative settlement in an underinsured motorist case (the remaining duty) does not apply if the insurer is not prejudiced in its right of recovery from persons responsible for the accident. Under A. Coverage, item 2, the so-called exhaustion clause was deleted in its entirety (it had been mistakenly added back after having been removed years before).
CA 01 35 03 00--Washington Changes-A printing error neglected to include B. Changes in Physical Damage coverage. It is replaced by the following: B.1. "We will not pay for 'loss' caused directly or indirectly by any of the following:"
WITHDRAWN--CA 99 50 09 94--Washington Loss Payable Clause
Personal Auto--Three personal auto endorsements have been changed for participating insurers for policies written on or after February 1, 2000.
PP 01 62 02 00--Amendment of Policy Provisions--Washington. Adds to C. Limit of Liability a limitation of $1,000 for sound reproduction equipment installed in locations not used by the auto manufacturer for such equipment. Also under Part F-General Provisions, item A. Our Right to Recover Payment has been changed to where the insurer is entitled to recover payment in item A. or B. only after the person has been fully compensated for damages. Cancellation and nonrenewal clauses will now include the reason for cancellation or nonrenewal. If the new business policy has been in effect for 60 days or more, cancellation can be only for nonpayment or for loss of a driver's license during the policy period. If a renewal, cancellation can be only for loss of a driver's license within 6 months prior to the policy effective renewal date or during the policy period.
PP 04 81 02 00--Underinsured Motorists Coverage--Washington. Under Additional Duties, the new form eliminates the duty of prompt notification after a hit-and-run driver is involved. However if there is no physical contact with the vehicle causing the accident, someone must report the accident within 72 hours. The endorsement also eliminates the duty to promptly send "us" copies of legal papers if a "suit" is brought.
Also under Additional Duties, failure to notify of a tentative settlement in an underinsured motorist case does invalidate the claim if the insurer is not prejudiced in its right of recovery from persons responsible for the accident.
Under Part F--General Provisions Our Right to Recover Payment has changed to where we are entitled to recovery only after the person has been fully compensated for damages. Our right to recover does not apply if we have been given prompt written notice of a tentative settlement between the insured and an insurer of an underinsured vehicle. Our right to recover does not apply if we fail to advance payment to the insured in an amount equal to the tentative settlement within a reasonable time after receipt of the notification.
PP 05 69 02 00--Personal Injury Protection Coverage--Washington. Under definitions, the "named insured's" spouse is now considered a "family member." Limit of Liability, item B. provides no offset for losses also paid under workers compensation for amounts payable under increased limits personal injury protection benefits.
Part F, General Provisions A, Our Right to Recover Payment has been changed to say that the insurer is entitled to recover payment in item A. or B. only after the person has been fully compensated for damages.
Finally, in Part F. General Provisions C, arbitration will take place in the county where the "insured" lives or the county where the "insured" lived at the time of the accident, unless the parties agree to some other venue. Arbitration is binding if any two arbiters agree.
PP 03 05--Loss Payable Clause has been WITHDRAWN.
WISCONSIN
Personal Auto--The 1999 Personal Auto Endorsement, PP 13 01 12 99--Coverage For Damage to Your Auto Exclusion, has been approved for ISO participating insurers and may be used on or after February 1, 2000. *
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