By Bruce Hicks, CLU, CPCU
COUNTRYWIDE
In the past, this column has focused on changes involving forms and programs belonging to Insurance Services Office (ISO). In order to share more information regarding available programs and in recognition that different company affiliations exist, we will now include program information from other sources that should be of interest to our readers.
Agricultural Output Program
American Association of Insurance Services (AAIS) has introduced the AAIS Agricultural Output Program (AgOP). This program focuses on the exposures faced by agribusiness suppliers, processors and operators. AAIS' use of the term "agribusiness" refers to a variety of business activities related to the agriculture industry, which, while it includes farming, also encompasses feed and fertilizer manufacturers, grain elevators, seed processing and other operations. The program is designed for large commercial farm operations and related businesses. Its approach is similar to AAIS' Commercial Output Program (COP), which shares the advantages of being a complete program with coverage parts and endorsements that address exposures unique to agribusiness. Companies affiliated with AAIS may contact them via e-mail at info@AAISonline.com. Anyone interested in more details on AAIS products and services may visit their Web site (www.AAISonline.com).
Following is a list of individual states and changes that each has approved involving ISO forms and programs.
General Liability--CG 28 57, Connecticut Changes - Liquor Liability endorsement has been approved. It is now available for use by all participating insurers and has a distribution date of October 1, 2001. The form was revised in response to the state's insurance laws. The "Each Common Cause" insurance limit has been modified so that it now is subject to the Liquor Liability Coverage Form's Aggregate limit.
Personal Auto--PP 01 61, Amendment of Policy Provisions - Colorado endorsement has been approved. It is now available for use by all participating insurers and has a distribution date of September 2001. The form was revised in response to the decision reached by the Colorado Supreme Court in Clementi v. Nationwide Mutual Fire Insurance Company. The court ruled that coverage could not be denied when an insured's loss notification was late unless the insurer proved that the delay prejudiced its rights. The form's "Duties After an Accident or Loss" provision was amended to reflect this ruling.
GEORGIA
Dwelling Liability--DL 01 10 10 01, Special Provisions - Georgia endorsement has been approved for use by all participating insurers for all policies written on or after October 1, 2001. The form was revised in response to Howard v. American So. Ins. Co., where the court ruled that a policyholder's coverage could not be canceled because of failure to pay additional premium. The form now includes a new condition. The "Our Right to Recompute" provision allows companies to recalculate the policy premium if it becomes aware of information that affects rating.
Homeowners--HO 01 10 10 01, Special Provisions - Georgia endorsement has been approved for use by all participating insurers for all policies written on or after October 1, 2001. The form was revised in response to Howard v. American So. Ins. Co., where the court ruled that a policyholder's coverage could not be canceled because of failure to pay additional premium. The form now includes a new condition to Sections I and II. The "Our Right to Recompute" provision allows companies to recalculate the policy premium if it becomes aware of information that affects rating.
LOUISIANA
Commercial Lines--The following forms have been approved for use by all participating insurers for all policies written on or after September 1, 2001:
IL 02 77 08 01, Louisiana Changes - Cancellation And Nonrenewal
CG 29 38 08 01, Louisiana Changes - Cancellation And Nonrenewal (OCP)
CG 29 39 08 01, Louisiana Changes - Cancellation And Nonrenewal (RRP)
CG 30 19 08 01, Louisiana Changes - Cancellation And Nonrenewal (UST)
The forms were changed to comply with Louisiana's Revised Statutes concerning insured misrepresentations in acquiring insurance coverage. The endorsements now refer to the ability to terminate coverage when misrepresentations have been made with an intent to deceive a carrier.
MASSACHUSETTS
Homeowners--The program changes referred to in the Countrywide section and state-specific forms have been approved for use by all participating insurers for all policies written on or after October 1, 2001:
HO 01 20 09 01, Special Provisions - Massachusetts
HO 05 02 09 01, Additional Limits Of Liability For Coverages A, B, C and D - Forms HO 00 02 and HO 00 02 only
HO 05 23 09 01, Amendatory Nonrenewal Endorsement
HO 05 72 07 01, Property Remediation For Escaped Liquid Fuel And Limited Escaped Liquid Fuel Liability Coverages - All forms except Forms HO 00 04 and HO 00 06
HO 05 73 07 01, Property Remediation For Escaped Liquid Fuel And Limited Escaped Liquid Fuel Liability Coverages - Form HO 00 04 Only
HO 05 74 07 01, Property Remediation For Escaped Liquid Fuel And Limited Escaped Liquid Fuel Liability Coverages - Form
HO 00 06 only
HO 05 75 07 01, Rating Information - Property Remediation For Escaped Liquid Fuel And Limited Escaped Liquid Fuel Liability Coverages
HO 23 71 09 01, Tenants Relocation Expense - Massachusetts
HO 24 41 09 01, Lead Poisoning Exclusion - Massachusetts
HO 24 42 09 01, Coverage For Lead Poisoning - Massachusetts
MICHIGAN
Homeowners--The program changes referred to in the Countrywide section and state-specific forms have been approved for use by all participating insurers for all policies written on or after November 1, 2001:
HO 01 21 09 01, Special Provisions - Michigan
HO 05 84 10 00, Property Remediation For Escaped Liquid Fuel And Limited Escaped Liquid Fuel Liability Coverages - All forms except Forms HO 00 04 and HO 00 06
HO 05 85 10 00, Property Remediation For Escaped Liquid Fuel And Limited Escaped Liquid Fuel Liability Coverages - Form
HO 00 04 Only
HO 05 86 00 00, Property Remediation For Escaped Liquid Fuel And Limited Escaped Liquid Fuel Liability Coverages - Form HO 00 06 Only
HO 23 89 09 01, Repair Cost Homeowners Endorsement - Michigan
The state-specific forms were revised to conform either to state requirements or in response to a Michigan Court of Appeals decision reached concerning appraisal provisions in Auto-Owners Ins. Co. v. Allied Adjusters & Appraisers, Inc.
OKLAHOMA
Commercial Auto--CA 21 18 08 01, Oklahoma Uninsured Motorists Coverage and CA 21 42 08 01, Oklahoma Split Uninsured Motorists Coverage Limits endorsements have been approved for use by all participating insurers for all policies written on or after August 1, 2001. The forms were amended in response to recent court interpretations of the term "you" which have, in ISO's opinion, led to unintended coverage. Several sections of the form that refer to "you" have been changed to clarify the parties intended to be covered.
RHODE ISLAND
Dwelling Liability--Dwelling Program changes adopting the Personal Umbrella Policy (PUP) and a state-specific endorsement have been approved. Forms DL 98 73 06 98, Personal Umbrella Liability Policy Amendment of Policy Provisions - Rhode Island and the multistate endorsements are available with an edition date of June 1998. The DL 98 73 amends the PUP in order to comply with objections raised by the Rhode Island Insurance Division objections to exclusions involving lead liability exposures. (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.)
WEST VIRGINIA
Personal Auto--PP 13 01 12 99, Coverage For Damage To Your Auto Exclusion Endorsement has been withdrawn from use. The form was withdrawn in response to notification from the West Virginia Department of Insurance that it does not allow third-party claimants to be treated more favorably than first-party insureds. In light of this position, the department could not approve the form's exclusion of denying claims for diminished value. *