By Bruce Hicks, CPCU, CLU
COUNTRYWIDE
AAIS
Revised Electronic Data Processing Forms
The American Association of Insurance Services (AAIS) has recently revised its Electronic Data Processing (EDP) section of the AAIS Inland Marine Guide offering coverage on a blanket basis, as well as two levels on a scheduled basis. The form revisions clarify coverage so that users understand that it is necessary to purchase separate coverage for loss caused by computer viruses and computer hackers since the base forms exclude these perils. Coverage has been enhanced as the EDP forms include four categories of software:
* media (disks or cartridges where instructions and information are stored)
* "off the shelf" programs and applications, such as those sold directly to consumers
* data records (the insured's customer records and other business information stored on electronic media), and
*proprietary programs (applications specifically created and designed for the insured).
AAIS created these categories to better evaluate an account's exposure and coverage needs.
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 at www.AAISonline.com.
ISO
Businessowners Form Changes
ISO has introduced a new, multistate endorsement, Premium Audit Endorsement, BP 04 96 10 01. The form has been introduced in order to comply with the National Association of Insurance Commissioners (NAIC) Statement of Statutory Accounting Principle no.6. The principle requires that the due date for either audit or retrospective premiums must be referenced in a policy form. If it is not, any uncollected premium must be classified as non-admitted premium income.
The BP 04 96 amends BP 00 09, Businessowners Premium Audit Common Policy Condition by replacing Paragraph 2. The revised condition states that any advance premium amount is a deposit, which will be verified by auditing at the end of each policy period. If additional premium is due, the due date on any bill is the due date for paying audit premiums.
General Liability Program Changes
In January of this year, ISO filed a multistate revision of forms and endorsements applicable to the General Liability Program. The revisions are to the Commercial General Liability Form and, to a lesser extent, the following coverage forms:
* Liquor Liability
* Products/Completed Operations
* Owners and Contractors Protective
* Pollution
* Underground Storage Tank
and to several multistate endorsements. While the changes are too extensive to cover in this article, here are some highlights:
Changes to Policy Forms
ISO indicates that the General Liability Coverage Forms mentioned above were revised to make sure policyholders understand the coverage intent involving liability exposure related to the use of the Internet, insuring agreement language involving known injuries, exclusions that address negligent supervision and property damage and the insured status of trusts and volunteer workers. The amendments and editorial changes affect different policy form sections and definitions, including the following:
Insuring Agreement--Known Injury Or Damage
Inspections And Surveys Condition
Pollution Exclusion
Exclusion g. Aircraft, Auto Or Watercraft
Damage To Property Exclusion
Coverage B--Criminal Acts Exclusion
Addition of Exclusion Titles for Coverage B and Coverage C
Who Is An Insured To Include Trusts/Volunteer Workers As Insureds
Legal Action Against Us Condition
Your Work and Your Product Definitions
Personal And Advertising Injury in The CGL Claims-Made Policy
Bankruptcy Condition In Owners And Contractors Protective Liability Coverage Form
Duties In The Event Of Occurrence, Claim Or Suit In Liquor Liability Forms
Railroad Policy Pollution Exclusion--Exception For Pollutants Brought On Or To A Job Location
Pollution Liability Policy And Underground Storage Tank Policies To Add Claims-Made Headings
Failure To Comply With Environmental Laws--Underground Storage Tank
Changes to Endorsements
Assorted changes were made to a wide variety of optional endorsements.
Forms introduced:
Employee Benefits Liability Coverage Endorsement
Grantor Of Licenses Additional Insured Endorsements
Limited Product Withdrawal Expense Endorsement
Druggists Endorsements CG 2297 and CG 22 69
Internet Professional Liability Exclusion Endorsements
Worldwide Coverage Endorsements
Construction Project Management Protective Liability Endorsement CG 31 15 86
Forms revised:
Additional Insured Endorsements - Completed Operations
Pollution Exclusion In Endorsements CG 04 28, CG 04 29, CG 24 15 and CG 28 07
Volunteer Worker Endorsements
CG 21 35 Exclusion--Coverage C--Medical Payments
Various Endorsements, revision to Aircraft, Auto or Watercraft Exclusion
CG 2241 Exclusion--Housing Projects Sites
CG 22 62 Underground Resources And Equipment Coverage
Personal and Advertising Injury--Lawyers
Damage To Your Work Exclusion Endorsements
CG 24 11 Fiduciaries--Fiduciary Interest
CG 24 17 Contractual Liability--Railroads
Extended Reporting Period Endorsement/Employee Benefits Liability Coverage
CG 28 05 Personal Injury Liability Endorsement
CG 28 12 Pesticide Or Herbicide Applicator Coverage Endorsement
Form Withdrawn:
CG 22 59 Exclusion--Medical Payments To Members (Horseback Riding Clubs)
What follows is a list of individual states and which of the above changes each has approved involving ISO forms and programs. The text will not be repeated but will refer back to this Countrywide section.
Businessowners--The program changes referred to in the Countrywide section have been approved for use by all participating insurers for all policies written on or after October 1, 2001.
General Liability--The program changes referred to in the Countrywide section have been approved for use by all participating insurers for all policies written on or after December 1, 2001.
ALASKA
Businessowners--The program changes referred to in the Countrywide section have been approved for use by all participating insurers for all policies written on or after October 1, 2001.
ARIZONA
Businessowners--The program changes referred to in the Countrywide section have been approved for use by all participating insurers for all policies written on or after October 1, 2001.
General Liability--The program changes referred to in the Countrywide section have been approved for use by all participating insurers for all policies written on or after December 1, 2001.
ARKANSAS
Businessowners--The program changes referred to in the Countrywide section have been approved for use by all participating insurers for all policies written on or after October 1, 2001.
General Liability--The program changes referred to in the Countrywide section have been approved for use by all participating insurers for all policies written on or after December 1, 2001.
CALIFORNIA
General Liability--The program changes referred to in the Countrywide section have been approved effective March 26, 2001, and are now available to participating insurers.
COLORADO
Businessowners--The program changes referred to in the Countrywide section have been approved for use. The form will be made available for use by companies with a distribution date of October 2001.
General Liability--The program changes referred to in the Countrywide section have been approved for use. The form will be made available for use by companies with a distribution date of December 2001.
CONNECTICUT
Businessowners--The program changes referred to in the Countrywide section have been approved for use by all participating insurers for all policies written on or after December 1, 2001.
General Liability--The program changes referred to in the Countrywide section have been approved for use by all participating insurers for all policies written on or after February 1, 2002.
DELAWARE
Businessowners--The program changes referred to in the Countrywide section have been approved for use by all participating insurers for all policies written on or after October 1, 2001.
General Liability--The program changes referred to in the Countrywide section have been approved for use by all participating insurers for all policies written on or after December 1, 2001.
IOWA
Businessowners--The program changes referred to in the Countrywide section have been approved for use by all participating insurers for all policies written on or after October 1, 2001.
General Liability--The program changes referred to in the Countrywide section have been approved for use by all participating insurers for all policies written on or after December 1, 2001.
KANSAS
Businessowners--The program changes referred to in the Countrywide section have been approved for use by all participating insurers for all policies written on or after October 1, 2001.
KENTUCKY
Businessowners--The program changes referred to in the Countrywide section have been approved for use by all participating insurers for all policies written on or after October 1, 2001.
General Liability--The program changes referred to in the Countrywide section have been approved for use by all participating insurers for all policies written on or after December 1, 2001.
MAINE
Businessowners--The program changes referred to in the Countrywide section have been approved for use by all participating insurers for all policies written on or after October 1, 2001.
General Liability--The program changes referred to in the Countrywide section have been approved for use by all participating insurers for all policies written on or after December 1, 2001.
MASSACHUSETTS
Businessowners--The program changes referred to in the Countrywide section have been approved for use by all participating insurers for all policies written on or after October 1, 2001.
General Liability--The program changes referred to in the Countrywide section have been approved for use by all participating insurers for all policies written on or after December 1, 2001.
MICHIGAN
Businessowners--The program changes referred to in the Countrywide section have been approved for use by all participating insurers for all policies written on or after October 1, 2001.
General Liability--The program changes referred to in the Countrywide section have been approved for use by all participating insurers for all policies written on or after December 1, 2001.
MINNESOTA
Businessowners--The program changes referred to in the Countrywide section have been approved for use by all participating insurers for all policies written on or after October 1, 2001.
Dwelling Liability--Form DL 25 22 03 01, Special Provisions--Minnesota has been approved for use by all participating insurers for all policies written on or after July 1, 2001. The form was revised to comply with a request from the Minnesota Department of Commerce to delete "consecutive" and to change a statutory reference under Exclusions paragraph 3.b.(2)(1). The sub-paragraph concerns a requirement to provide a workers compensation policy under certain conditions.
Homeowners--Form HO 01 22 03 01, Special Provisions--Minnesota has been approved for use by all participating insurers for all policies written on or after July 1, 2001. The form was revised to comply with a request from the Minnesota Department of Commerce to delete "consecutive" and to change a statutory reference under Section II--Exclusions under item 1.a which amends sub-paragraph 3.b.(2)(1). The sub-paragraph concerns a requirement to provide a workers compensation policy under certain conditions.
MISSISSIPPI
Businessowners--The program changes referred to in the Countrywide section have been approved for use by all participating insurers for all policies written on or after November 1, 2001.
General Liability--The program changes referred to in the Countrywide section have been approved for use by all participating insurers for all policies written on or after January 1, 2002.
MISSOURI
Businessowners--The program changes referred to in the Countrywide section have been approved for use by all participating insurers for all policies written on or after October 1, 2001.
General Liability--The program changes referred to in the Countrywide section have been approved for use by all participating insurers for all policies written on or after December 1, 2001.
MONTANA
Businessowners--The program changes referred to in the Countrywide section have been approved for use by all participating insurers for all policies written on or after October 1, 2001.
General Liability--The program changes referred to in the Countrywide section have been approved for use by all participating insurers for all policies written on or after December 1, 2001.
NEBRASKA
Homeowners--The ISO HO 2000 multistate filing, with various changes, and state-specific form HO 01 26 08 01, Special Provisions--Nebraska have been approved for use by all participating insurers for all policies written on or after August 1, 2001. Several changes were made to comply with various state requirements.
NEVADA
Businessowners--The program changes referred to in the Countrywide section have been approved for use by all participating insurers for all policies written on or after October 1, 2001.
Commercial Lines--The following forms:
IL 01 10 07 01 Nevada Changes--Concealment, Misrepresentation Or Fraud
BP 01 88 07 01 Nevada Changes
CR 02 25 07 01 Nevada Changes have been approved for use by all participating insurers for all policies written on or after October 1, 2001. The forms were changed to comply with an insurance department request to add a condition that deals with concealment, fraud or misrepresentation.
General Liability--The program changes referred to in the Countrywide section have been approved for use by all participating insurers for all policies written on or after December 1, 2001.
NEW HAMPSHIRE
Businessowners--The program changes referred to in the Countrywide section have been approved for use by all participating insurers for all policies written on or after October 1, 2001.
General Liability--The program changes referred to in the Countrywide section have been approved for use by all participating insurers for all policies written on or after December 1, 2001.
NEW JERSEY
Businessowners--The program changes referred to in the Countrywide section have been approved for use by all participating insurers for all policies written on or after October 1, 2001.
General Liability--The program changes referred to in the Countrywide section have been approved for use by all participating insurers for all policies written on or after December 1, 2001.
Homeowners--Form HO 01 29 09 01, Special Provisions--New Jersey has been approved for use by all participating insurers for all policies written on or after September 1, 2001, revising a previously approved edition where several words were omitted. This, as well as the original form change, was made in response to the decision reached in Fantis Food vs. North River Insurance Co. 332 NJ Super. 250, 753 A.2d 176. In Fantis, the court held that the policy should reimburse an insured who repaired a building that, in the insured's opinion, was in danger of collapsing. The form was revised to clarify that coverage was due only to insured property that had actually collapsed.
NEW MEXICO
General Liability--The program changes referred to in the Countrywide section have been approved for use by all participating insurers for all policies written on or after December 1, 2001.
NORTH CAROLINA
Businessowners--The program changes referred to in the Countrywide section have been approved for use by all participating insurers for all policies written on or after December 1, 2001.
General Liability--
1. The program changes referred to in the Countrywide section have been approved for use by all participating insurers for all policies written on or after February 1, 2002.
2. Form CG 22 93 07 98, Lawn Care Services Coverage, has been withdrawn from use effective November 1, 2001, for all applicable policies. The withdrawal was made to comply with state regulations. When coverage involves the Lawn Care Services classification, the Current North Carolina Changes--Pesticide Applicator and Dealer Coverage form should be used.
NORTH DAKOTA
General Liability--The program changes referred to in the Countrywide section have been approved for use by all participating insurers for all policies written on or after December 1, 2001.
OHIO
Businessowners--The program changes referred to in the Countrywide section have been approved for use by all participating insurers for all policies written on or after October 1, 2001.
Commercial Auto--CA 21 33 10 01, Ohio Uninsured Motorists Coverage--Bodily Injury and CA 31 17 10 01, P
Ohio Uninsured Motorists Coverage--Property Damage have been approved for use by all participating insurers for all policies written on or after October 1, 2001. The endorsements' arbitration provisions now require the consent of the insurer and the insured and several editorial changes have been made.
General Liability--The program changes referred to in the Countrywide section have been approved for use by all participating insurers for all policies written on or after December 1, 2001.
OKLAHOMA
Businessowners--The program changes referred to in the Countrywide section have been approved for use by all participating insurers for all policies written on or after October 1, 2001.
Commercial Auto--Form CA 99 42 07 01, Split Liability Limits For Governmental Subdivisions--Oklahoma, has been approved for use by all participating insurers for all policies written on or after October 1, 2001. The form was changed to conform with statutory requirements regarding the Liability Coverage Limit Of Insurance for care, loss of services or death that result from "bodily injury."
General Liability--The program changes referred to in the Countrywide section have been approved for use by all participating insurers for all policies written on or after December 1, 2001.
OREGON
Businessowners--The program changes referred to in the Countrywide section have been approved for use by all participating insurers for all policies written on or after October 1, 2001.
General Liability--The program changes referred to in the Countrywide section have been approved for use by all participating insurers for all policies written on or after December 1, 2001.
PENNSYLVANIA
Businessowners--The program changes referred to in the Countrywide section have been approved for use by all participating insurers for all policies written on or after October 1, 2001.
General Liability--The program changes referred to in the Countrywide section have been approved for use by all participating insurers for all policies written on or after December 1, 2001.
RHODE ISLAND
Businessowners--The program changes referred to in the Countrywide section have been approved for use by all participating insurers for all policies written on or after October 1, 2001.
General Liability--The program changes referred to in the Countrywide section have been approved for use by all participating insurers for all policies written on or after December 1, 2001.
SOUTH CAROLINA
Businessowners--The program changes referred to in the Countrywide section have been approved for use by all participating insurers for all policies written on or after October 1, 2001.
General Liability--The program changes referred to in the Countrywide section have been approved for use by all participating insurers for all policies written on or after December 1, 2001.
Homeowners--The ISO HO 2000 multistate filing, with various changes and state-specific form HO 03 17 09 01, Windstorm or Hail Percentage Deductible have been approved for use by all participating insurers for all policies written on or after September 1, 2001. Several changes were made to comply with various state requirements.
SOUTH DAKOTA
Businessowners--The program changes referred to in the Countrywide section have been approved for use by all participating insurers for all policies written on or after October 1, 2001.
General Liability--The program changes referred to in the Countrywide section have been approved for use by all participating insurers for all policies written on or after December 1, 2001.
TENNESSEE
Businessowners--The program changes referred to in the Countrywide section have been approved for use by all participating insurers for all policies written on or after October 1, 2001.
General Liability--The program changes referred to in the Countrywide section have been approved for use by all participating insurers for all policies written on or after December 1, 2001.
TEXAS
Businessowners--The program changes referred to in the Countrywide section have been approved for use by all participating insurers for all policies written on or after October 1, 2001.
UTAH
Businessowners--The program changes referred to in the Countrywide section have been approved for use by all participating insurers for all policies written on or after October 1, 2001.
General Liability--The program changes referred to in the Countrywide section have been approved for use by all participating insurers for all policies written on or after December 1, 2001.
VIRGINIA
Businessowners--The program changes referred to in the Countrywide section have been approved for use by all participating insurers for all policies written on or after December 1, 2001.
VIRGIN ISLANDS
General Liability--The program changes referred to in the Countrywide section have been approved for use. The forms will be made available for use by companies with a distribution date of December 2001.
WASHINGTON
General Liability--The program changes referred to in the Countrywide section have been approved for use by all participating insurers for all policies written on or after December 1, 2001.
WEST VIRGINIA
Businessowners--The program changes referred to in the Countrywide section have been approved for use by all participating insurers for all policies written on or after October 1, 2001.
General Liability--The program changes referred to in the Countrywide section have been approved for use by all participating insurers for all policies written on or after December 1, 2001.
WISCONSIN
Businessowners--The program changes referred to in the Countrywide section have been approved for use by all participating insurers for all policies written on or after October 1, 2001.
WYOMING
Businessowners--The program changes referred to in the Countrywide section have been approved for use by all participating insurers for all policies written on or after October 1, 2001.
General Liability--The program changes referred to in the Countrywide section have been approved for use by all participating insurers for all policies written on or after December 1, 2001. *