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 May, 2000 edition of the PF&M Companion in the May, 2000 issue of Rough Notes magazine at http://www.roughnotes.com.)
Homeowners--A revised Special Provisions - Arizona HO 01 02 10 00 has been approved for use by participating insurers for all policies written on or after November 1, 2000. The change is in response to Arizona Law (Former Senate Bill 1173), which provides coverage for an innocent co-insured if an intentional loss was caused by an act of domestic violence by another insured. Only the innocent co-insured's interest is covered.
ARKANSAS
Homeowners--Special Provisions - Arkansas HO 01 03 09 00 has been approved for use by participating insurers for all policies written on or after September 1, 2000. This change is in response to the court case Ebbing v. State Farm Fire & Casualty Co., CA 98-1453__S.W.2d.__(Ark. 1999). The court found that the flood exclusion didn't apply to a water main break. The flood exclusion, said the court, applies only to naturally occurring events. The revision adds to the water damage exclusion "caused by or resulting from human or animal forces or any act of nature ..."
As a result of this court case, the following new endorsements were approved:
HO 04 01 09 00 - Special Computer Coverage - Arkansas
HO 17 36 09 00 - Unit-Owners Coverage A - Arkansas
HO 17 37 09 00 - Unit-Owners Coverage C - Arkansas
DISTRICT OF COLUMBIA
General Liability--District of Columbia Changes - Cancellation and Nonrenewal CG 30 01 09 00 (Underground Storage Tanks) has been approved for use by participating insurers for all policies written on or after September 1, 2000. The D.C. Department of Health issued new regulations for underground storage tanks. Cancellation for nonpayment or misrepresentation was reduced from 30 to 10 days. A copy of the notice must be sent to the D.C. Director of Department of Health.
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 September 1, 2000.
FLORIDA
Personal Auto--Personal Injury Protection Coverage - Florida PP 05 54 11 00 and Extended Personal Injury Protection Coverage - Florida PP 05 66 11 00 have been approved for participating insurers for policies effective on or after November 1, 2000. These changes are in response to the Florida Supreme Court decision, Nationwide Mutual Fire Ins. Co. v. Pinnacle Medical, Inc., 721 So. 2d 321 (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 endorsement.
GEORGIA
Homeowners--Special Provisions - Georgia HO 01 10 09 00 has been approved for use by participating insurers for all policies written on or after October 1, 2000. This change is in response to 1999 legislation (former Senate Bill 464) that provides 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 only for his/her insurable interest. Endorsement changes reflect the intent of the new law. Companies should note that the law requires a special notice about the law be attached to all homeowners policies.
IDAHO
Commercial Auto--Idaho Changes CA 01 18 11 00 and Idaho Changes CA 01 18 11 00 have been approved for use by participating insurers for policies written on or after November 1, 2000. This change is in response to 2000 legislation (former Senate bill 1309) that makes the operator's insurance for a loaned vehicle primary and the owner's insurance excess. This law applies only to car dealers and can include loaners (no charge) while your car is in the shop. The endorsements describe the primary and excess provisions.
Personal Auto--Amendment of Policy Provisions - Idaho PP 01 91 11 00 has been approved for use by participating insurers for policies written on or after November 1, 2000. The changes here also have to do with the loaned vehicle law described above.
ILLINOIS
Employment Practices Liability--The employment practices liability policy forms and endorsements have been approved for use by participating insurers for policies written on or after December 1, 2000. An Illinois Changes EP 01 16 12 00 endorsement also has been approved. 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.
KENTUCKY
Farm--Kentucky Changes Endorsement FP 01 53 09 00 has been approved for use by participating insurers for all policies written on or after September 1, 2000. Changes are in response to Kentucky Law (2000 House Bill 3) which gives innocent co-insureds the right to coverage when domestic abuse is the cause of loss and the perpetrator is another co-insured. Subrogation rights apply against the abuser.
LOUISIANA
Dwelling Liability--Special Provisions--Louisiana DL 01 17 02 00 has been approved for use by participating insurers for all policies effective September 1, 2000. The 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
Dwelling Liability--Special Provisions--Maryland DL 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 the 2000 Maryland House Bill 413 that requires written notice of cancellation and nonrenewal. A certificate of mailing is sufficient proof of notice.
Personal Auto--Amendment of Policy Provisions--Maryland PP 01 68 10 00 has been approved for use by participating insurers for all policies effective on or after October 1, 2000. The insurance department requested that the endorsement be changed to explain the terms of premium refund when the policy is canceled. If the company cancels--pro rata. If the insured cancels--90% of pro rata for a policy period of one year or less.
NEW HAMPSHIRE
Personal Auto--The Coverage for Damage to Your Auto Exclusion PP 13 01 12 99 endorsement has been approved for participating insurers for all policies written on or after September 1, 2000. This endorsement has been filed countrywide and adds a new definition called "Diminution in value" which means the actual or perceived loss in market or resale value that results from a direct and accidental loss. Diminution in value is then excluded.
General Liability--New Hampshire Changes - Limited Exclusion - Intercompany Product Suits CG 26 60 10 00 has been approved for use by participating insurers for all policies written on or after October 1, 2000. New Hampshire Statute Ann. 412:2-a does not permit any liability policy to exclude intra-family or inter-spousal claims. The purpose of the new endorsement is to add back coverage for intra-family and inter-spousal claims.
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 October 1, 2000. New Hampshire Changes CR 02 09 03 00 was approved as well.
NEW JERSEY
Personal Auto--The Coverage for Damage to Your Auto Exclusion PP 13 01 12 99 endorsement has been approved for participating insurers for all policies written on or after October 1, 2000. This endorsement has been filed countrywide and adds a new definition called "Diminution in value" which means the actual or perceived loss in market or resale value that results from a direct and accidental loss. Diminution in value is then excluded.
NEW YORK
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 September 1, 2000. New York Changes CR 02 34 03 00 was also approved and New York Changes CR 01 34 06 95 was withdrawn.
TENNESSEE
Commercial Auto--Tennessee Loss Payable Clause CA 99 87 10 00 has been approved for use by participating insurers for all policies written on or after November 1, 2000. Loss Payable Clause CA 99 44 12 93 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.
TEXAS
General Liability--A number of mandatory endorsements are available for use by participating insurers with a distribution date of 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)
The following new and revised endorsements are also available for participating insurers with a distribution date of 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 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 (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)
Also available are the following endorsements:
CG 01 03 10 00 Texas Changes
CG 01 56 04 99 Texas Changes - Pesticide or Herbicide Applicator Coverage
CG 26 39 04 99 Texas Changes - Employment-Related Practices Exclusion
CG 26 46 04 99 Texas Abuse or Molestation Exclusion
CG 31 07 02 00 Texas Changes - Conditions Requiring Notice
CG 31 14 10 00 Texas Changes - Personal Injury Liability
VIRGINIA
Commercial Lines--Virginia Changes - IL 01 52 02 00 has been approved for use by participating insurers for policies effective on or after November 1, 2000. Changes were made to conform with revisions made with monoline general liability forms.
General Liability--Virginia has adopted the 1993, 1995, 1996 and 1998 general liability forms revisions for participating insurers for policies effective on or after November 1, 2000. Changes are extensive and beyond the scope of this analysis. For more information about these changes, please see the following Rough Notes magazine articles available at http://www.roughnotes.com:
* "ISO's CGL program changes include both restrictions and enhancements
--A look at the most significantly altered provisions," by Diana L. Kowatch, CPCU, AU, AAM, CPIW, in the July 1996 issue
* "ISO's CGL excludes known injury or loss in progress," by Diana Kowatch, CPCU, AU, AAM, CPIW, in the August 1999 issue
WASHINGTON
Personal Auto--A number of endorsements have been changed or withdrawn as a result of the Washington Insurance Department request to have betterment language changed. Betterment refers to the fact that certain repairs or replacements may be better than like kind or quality. The original language would not pay for the amount of betterment. The new language will deduct the lesser of the proportion of the expired life of the part that was replaced as it bears to the normal life of a new part or the amount which the resale value of the auto is increased because of the new parts or repairs. The following new endorsements have been approved for use by participating insurers for all policies written on or after November 1, 2000:
PP 13 73 11 00 Trailer/Camper Body Coverage (Maximum Limit of Liability) - Washington
PP 13 74 11 00 Coverage for Damage to Your Auto (Maximum Limit of Liability) - Washington
PP 13 75 11 00 Coverage for Excess Sound Reproducing Equipment, Audio, Visual and Data Electronic Equipment, and Tapes, Records, Discs and other Media - Washington
PP 13 76 11 00 Miscellaneous Type Vehicle Endorsement - Washington
PP 13 77 11 00 Participating Coverage for Damage to Your Auto - Washington
PP 01 62 11 00 Amendment of Policy Provisions - Washington
The following endorsements were withdrawn:
PP 03 07 06 98 Trailer/Camper Body Coverage (Maximum Limit of Liability)
PP 03 08 06 94 Coverage For Damage to Your Auto (Maximum Limit of Liability)
PP 03 13 06 98 Coverage for Excess Sound Reproducing Equipment, Audio, Visual and Data Electronic Equipment, and Tapes, Records, Discs and Other Media
PP 03 23 06 98 - Miscellaneous Type Vehicle Endorsement
PP 03 24 06 94 - Participating Coverage for Damage to Your Auto *