COUNTRYWIDE
Commercial Crime and Fidelity Form Changes
The entire crime program has been rewritten. Gone are the ABC forms. New for ISO are employee theft, forgery or alteration, client's property and funds transfer coverages. Seven coverage grants (eight for government crime) have been combined onto one primary coverage form (CR 00), though one or more coverage grants can be excluded. Additional coverage grants can be added by endorsement. Most of the current endorsements remain the same but all are renumbered. New endorsements for existing coverages and new coverage grants have been added. (For more details on this change, please refer to the PF&M Companion in the July 2000 issue of Rough Notes magazine at http://www.roughnotes.com.)
Homeowners form changes
ISO has introduced a new edition homeowners program called the HO 2000. The HO 2000 will eventually replace the HO 91 program and includes both revised and new forms. ISO has filed the program countrywide with the earliest proposed effective dates beginning in December 2000. The new program includes formatting changes to improve an insured's ability to read and understand the forms. (For more details on this change, please refer to the PF&M Companion in the July, 2000 issue of Rough Notes magazine at http://www.roughnotes.com.)
Commercial Inland Marine, Commercial Multiple Line, Commercial Property and Farm--The following new and revised Change Endorsements which were filed in response to 2000 ALA. Acts___(Former S.B. 348), the Domestic Abuse Insurance Protection Act, have been approved for use by participating insurers for all policies written on or after December 1, 2000:
BP 01 01 12 00 - Alabama Changes
CM 01 44 12 00 - Alabama Changes
CP 01 45 12 00 - Alabama Changes, and
FP 01 36 12 00 - Alabama Changes
The change amends the various forms' intentional act exclusion so coverage is provided for an innocent co-insured if an intentional loss was caused by an act of domestic abuse by another insured. Only the innocent co-insured's interest is covered. The co-insured must provide evidence of abuse and file a complaint under the "Protection from Abuse Act." An insurer may secure the innocent co-insured's subrogation rights to pursue recovery for any payments.
ARIZONA
Commercial Inland Marine, Commercial Multiple Line, Commercial Property and Farm--The following new and revised Change Endorsements which were filed in response to 2000 Ariz. Sess. Laws___(Former S.B. 1173) have been approved for use by participating insurers for all policies written on or after December 1, 2000:
BP 01 38 12 00 - Arizona Changes
CM 01 43 12 00 - Arizona Changes
CP 01 32 12 00 - Arizona Changes, and
FP 01 02 12 00 - Arizona Changes
The change amends the various forms' intentional or fraudulent act exclusion so coverage is provided for an innocent co-insured if an intentional or fraudulent loss was caused by an act of domestic abuse by another insured. Only the innocent co-insured's interest is covered. The innocent co-insured must fully cooperate with any loss investigation, and the insurer may secure the innocent co-insured's subrogation rights to pursue recovery for any payments.
Homeowners--Homeowners program changes referred to in the Countrywide section have been approved for participating insurers for all policies written on or after February 1, 2001. The countrywide filings are the same with the exception that it includes a revised Special Provisions - Arizona HO 01 02 02 01 and Homeowners and Mobilehome Declarations Pages which were modified to comply with the state's countersignature requirements. Also note that, again per the Arizona Special Provisions endorsement, the multistate filing's Section I and II - Conditions - Concealment or Fraud does not apply.
ARKANSAS
The multistate Commercial Liability Umbrella Program has been approved with Arkansas-specific provisions effective on or after November 1, 2000. To accommodate writing this program, Arkansas forms IL 01 99 09 00, Arkansas Changes - Transfer Of Rights Of Recovery Against Others To Us and IL 02 31 09 00, Arkansas Changes - Cancellation were revised to include a reference to the new Commercial Liability Umbrella Coverage Part.
COLORADO
The multistate Commercial Liability Umbrella Program, including a specific Colorado provision, has been approved in Colorado and carries a distribution date of November 2000. To accommodate writing this program, Colorado form IL 02 28 09 00, Colorado Changes - Cancellation and Nonrenewal was revised to include a reference to the new Commercial Liability Umbrella Coverage Part.
CONNECTICUT
The multistate Commercial Liability Umbrella Program, including a specific Connecticut provision, has been approved in Connecticut effective on or after January 1, 2001. To accommodate writing this program, Connecticut form IL 02 60 09 00 Connecticut Changes - Cancellation and Nonrenewal was revised to include a reference to the new Commercial Liability Umbrella Coverage Part.
FLORIDA
Commercial Auto-Personal Injury Protection--Florida Personal Injury Protection Coverage, CA 22 10 12 00 and Florida Extended Personal Injury Protection Coverage, CA 22 50 12 00 have been approved for participating insurers for policies effective on or after January 1, 2001. These changes are in response to the Florida Supreme Court decision Nationwide Mutual Fire Ins. Co. v. Pinnacle Medical, Inc., 753 So. 2d 55 (Fla. 2000.) The mandatory arbitration clause in Florida statutes relating to medical provider assignees was found to be unconstitutional. In light of this change, Item D, Arbitration, has been eliminated from the endorsements.
Commercial Auto-Uninsured Motorists Coverage--Florida Uninsured Motorists Coverage - Stacked, CA 21 47 02 01 and Florida Uninsured Motorists Coverage - Non-Stacked, CA 21 72 02 01 have been approved for participating insurers for policies effective on or after February 1, 2001. These changes are in response to the Florida Supreme Court decision Young v. Progressive Southeastern Insurance Company, 753 So. 2d 80 (Fla. 2000) where a person with liability insurance limits that are lower than the damages he/she causes or who does not have liability insurance is considered uninsured. In light of this decision, self-insured persons are also defined to be uninsured. Therefore, the endorsements' exception concerning self-insured persons has been deleted since the wording is not in compliance with Florida requirements.
Personal Auto-Uninsured Motorists Coverage--Uninsured Motorists Coverage-Florida (Non-Stacked), PP 04 42 12 00 and Uninsured Motorists Coverage-Florida (Stacked), PP 04 43 12 00 have been approved for participating insurers for policies effective on or after December 1, 2000. See the reference immediately above (Commercial Auto) for details on this change.
GEORGIA
Commercial Inland Marine, Commercial Multiple Line, Commercial Property and Farm--The following new and revised Change Endorsements which were filed in response to 1999 legislation (former Senate Bill 464) have been approved for use by participating insurers for all policies written on or after December 1, 2000:
BP 01 76 12 00 - Georgia Changes
CM 01 42 12 00 - Georgia Changes
CP 01 31 12 00 - Georgia Changes, and
FP 01 34 12 00 - Georgia Changes
The change amends the various forms so that they provide coverage to an innocent co-insured when the intentional loss is caused by the abusive act of another insured. A family violence complaint must be filed against the abuser. The abusive act must have caused the loss and the co-insured is paid for only his/her insurable interest. Companies should note that the law requires that a special notice about the law be attached to all inland marine, farm, commercial multiple line and commercial property policies.
ILLINOIS
Commercial Crime--Commercial Crime and Fidelity program changes referred to in the Countrywide section have been approved for participating insurers for all policies written on or after November 1, 2000. Illinois Changes CR 02 02 03 00 was also revised in support of the updated program.
General Liability--A number of mandatory endorsements have been approved for all policies written on or after December 1, 2000. The Insurance Services Office introduced mandatory endorsements to its Commercial General Liability (CGL) program clarifying that coverage is not provided for injury or damage known to the insured before the policy inception. The need for these endorsements stems from a 1995 California Appeals Court decision known as "Montrose." For more information about these endorsements see "ISO's CGL Excludes Known Injury Or Loss In Progress," by Diana Kowatch, CPCU, AU, AAM, CPIW, in the August 1999 issue of Rough Notes magazine, available at http://www.roughnotes.com.
CG 00 57 09 99-Amendment Of Insuring Agreement-Known Injury Or Damage (use with the CGL)
CG 00 58 09 99-Amendment Of Insuring Agreement-Known Injury Or Damage And Inspections And Surveys Condition (use with the OCP)
CG 00 59 09 99-Amendment Of Insuring Agreement-Known Injury Or Damage And Inspections And Surveys Condition (use with the Railroad Protective Liability Policy)
CG 00 60 09 99-Amendment Of Insuring Agreement-Known Injury Or Damage (use with the Products/Completed Operations Liability Policy-Occurrence Version)
CG 00 61 09 99-Amendment Of Insuring Agreement-Known Injury Or Damage (use with the Liquor Liability Coverage Part - Occurrence Version)
The following new and revised endorsements are also available effective December 1, 2000:
CG 04 30 09 99 - Pollution Exclusion - Limited Exception for Designated Pollutant(s)
CG 21 65 09 99 - Total Pollution Exclusion With A Building Heating Equipment Exception And A Hostile Fire Exception
CG 21 55 09 99 - Total Pollution Exclusion With A Hostile Fire Exception
CG 22 65 09 99 - Optical And Hearing Aid Establishments - (for use with CGL)
CG 24 18 09 99 - Seed Merchants - Coverage for Erroneous Delivery or Mixture (Resulting Failure of Seed to Germinate) - (for use with CGL)
CG 24 19 09 99 - Seed Merchants - Coverage for Erroneous Delivery or Mixture And Resulting Failure of Seed to Germinate Not Included - (for use with CGL)
CG 24 20 09 99 Seed Merchants - Coverage for Erroneous Delivery or Mixture and Resulting Failure of Seed to Germinate (for use with Products/Completed Operations)
CG 24 21 09 99 Seed Merchants - Coverage for Erroneous Delivery or Mixture (Resulting Failure of Seed to Germinate Not Included (for use with Products/Completed Operations)
CG 28 07 09 99 Principals Protective Liability Coverage (for use with OCP)
Employment Practices Liability--A revised Common Policy Conditions IL 00 17 11 98 has been approved for use by participating insurers for policies written on or after December 1, 2000. This form is to be used in conjunction with the previously approved program. For more information about this program, please consult "ISO Addresses 'Prevalent Problem,' 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 at http://www.roughnotes.com.
INDIANA
Dwelling Liability--DL 98 19 06 00,Personal Umbrella Liability Policy Excess Uninsured Motorists Coverage - Indiana and DL 98 20 06 00, Personal Umbrella Liability Policy Excess Underinsured Motorists Coverage - Indiana have been made available with an edition date of June 2000. The changes were introduced in response to Indiana Supreme Court decision United National Insurance Company v. Deprizio, 705 N.E. 2d 455 (Ind. 1999) in which the court found that IND. CODE 27-7-5-2, requiring that UM and UIM be made available on all motor vehicle liability policies applies to umbrella liability policies.
KENTUCKY
Personal Auto--A revised form PP 01 53 12 00, Amendment Of Policy Provisions - Kentucky has been approved for all policies written on or after December 1, 2000. The revised form was introduced in response to 2000 Kentucky Acts ___(former H.B.415) which gives insurers an additional reason for terminating coverage under a motor vehicle policy, by making it lawful to cancel coverage that has been in force more than 60 days if there is evidence of material misrepresentation.
LOUISIANA
Homeowners--Special Provisions-Louisiana, HO 01 17 02 00 has been approved for use by participating insurers for all policies effective October 1, 2000. 1999 Louisiana House Bill 2018 permits insurers to cancel a policy when a check or other payment instrument is uncollectible. Reinstatement will require a cashier's check or money order for the full amount of the returned check or instrument.
MARYLAND
Commercial Lines--The following new and revised forms which were filed in response to 2000 Maryland House Bill 413 that requires written notice of cancellation and nonrenewal (a certificate of mailing is sufficient proof of notice) have been approved for use by participating insurers for all policies written on or after January 1, 2001:
BP 01 64 11 00 Maryland Changes (Businessowners, replaces IL 02 07)
BM 01 07 11 00 Maryland Changes (Boiler & Machinery)
CA 02 15 11 00 Maryland Cancellation Changes (Commercial Auto)
CG 02 01 11 00 Maryland Changes (CGL, Liquor, Pollution, Products)
CG 28 16 11 00 Maryland Changes - Amendment of Cancellation Condition (OCP)
CG 29 70 11 00 Maryland Changes - Cancellation And Nonrenewal (Railroad)
CG 30 37 11 00 Maryland Changes - Cancellation And Nonrenewal (UST)
EP 02 03 11 00 Maryland Changes- Employment-Related Practices Liability
IL 02 07 11 00 Maryland Changes (Farm, Comm. Inland Marine, Comm. Prop.)
PA 02 16 11 00 Maryland Changes - Cancellation And Nonrenewal (Business Auto, Bus. Auto Phys. Dam., Garage, Motor Carrier, Truckers)
PR 02 08 11 00 Maryland Changes - Cancellation And Nonrenewal (Professional Liability)
Homeowners--Special Provisions--Maryland HO 01 19 11 00 has been approved for use by participating insurers for all policies effective on or after December 1, 2000. This change is in response to 2000 Maryland House Bill 413 that requires written notice of cancellation and nonrenewal (a certificate of mailing is sufficient proof of notice).
MINNESOTA
Commercial Crime--Commercial crime and fidelity program changes referred to in the Countrywide section have been approved for participating insurers for all policies written on or after November 1, 2000.
MISSOURI
Homeowners--A revised form,
HO 01 24, Homeowners Special Provisions, has been approved for participating insurers for all policies written on or after September 1, 2000. The form was changed merely to include a full reference to Missouri-specific Endorsement HO 24 76. (For more details on this change (regarding Hocker Oil Company v. Barker-Phillips-Jackson and Ranger Insurance Company), please refer to the PF&M Companion in the July 2000 issue of Rough Notes magazine at http://www.roughnotes.com.)
MONTANA
Homeowners--Homeowners program changes referred to in the Countrywide section have been approved for participating insurers for all policies written on or after February 1, 2001. The countrywide filings are the same with the exception that it includes a revised HO 01 25 12 00, Montana Special Provisions and new HO 05 98, Montana Medical Payments To Others Amendatory Endorsement. The former was revised to fit with the HO 2000 program changes and the latter form was introduced to comply with 1999 Montana Laws 134 (former H.B. 156) which establishes the state's definition of "reasonable" medical expenses eligible for coverage under medical payments.
Personal Auto--A revised PP 01 83 11 00 has been approved for participating insurers for all policies written on or after November 1, 2000. The form was changed in response to 1999 Montana Laws 134 (former H.B. 156) which establishes the state's definition of "reasonable" medical expenses eligible for coverage under medical payments.
NEW YORK
Personal Auto--A revised Personal Auto Program which combines ISO PAP program changes from '93, '94 and '98 has been approved for use by participating insurers for all policies written on or after December 1, 2000. The individual changes are too extensive to cover here since the changes catch the state up to many program features introduced since the '89 edition of the PAP, as well as many provisions amended to comply with New York law. (For more details on
06 98 PAP revisions, please refer to the PF&M Companion in the March 1998 issue of Rough Notes magazine at http://www.roughnotes.com.)
NORTH CAROLINA
Dwelling Liability--Dwelling Program changes adopting the Personal Umbrella Policy (PUP) and state-specific endorsements have been approved. Forms DL 98 39 06 98, Personal Umbrella Liability Policy Amendment of Policy Provisions - North Carolina and the multistate endorsements are available with an edition date of June 1998. The DL 98 39 amends the PUP so that, per N.C. GEN. STAT. 58-41-20, an insured is permitted 45 days' advanced notice of nonrenewal. (For more details on the Personal Umbrella Liability Program, please refer to the PF&M Companion in the August 1999 issue of Rough Notes magazine at http://www.roughnotes.com.)
TENNESSEE
Personal Auto--Tennessee Loss Payable Clause PP 03 67 11 00 has been approved for use by participating insurers for all policies written on or after November 1, 2000. Loss Payable Clause PP 03 05 08 86 has been withdrawn. The change is in response to 2000 House Bill 2983 and Senate Bill 2554 which were passed into law and which require that loss payees' interests will not be invalidated by an intentional act by the owner of the insured vehicle. *