PF&M COMPANION
Approved by individual states through October 2001
By Bruce Hicks, CLU, CPCU
COUNTRYWIDE
ISO
Commercial Auto Changes
In October 2000, ISO filed a multistate revision of numerous forms and endorsements applicable to the Commercial Automobile Program. Several dozen forms are being revised, introduced and withdrawn affecting business auto, business auto physical damage, garage, truckers, garagekeepers, motor carriers and other lines of business. In broad terms, the changes involve:
Advisory Declarations
Broader Pollution Coverage Endorsements
Depreciation
Diminished Value
Truckers
Individual Named Insured Endorsement
Montrose Decision
Personal and Advertising Injury Liability
Pollution
Railroad Related Operations
Schedules
For additional information, please refer to the
"PF&M Companion" in the October 2001 issue of Rough Notes magazine.
Commercial Liability Umbrella Changes
A set of new, multistate forms and other changes has been introduced for use with ISO's Commercial Liability Umbrella Program. The policy changes were made to several definitions and exclusions to acknowledge the exposures presented by Web sites and electronic publishing as well as to clarify the property status of electronic data and the insured status of trusts and volunteer workers and a variety of editorial changes. For additional information, please refer to the "PF&M Companion" in the October 2001 issue of Rough Notes magazine.
Farm Changes
ISO has filed a multistate revision of endorsements applicable to the Farm Program. It has revised FL 04 44 12 01, Coverage For Physical Injury To Crops And Animals Due To Certain Crop Dusting Operations Performed By Licensed Independent Contractor By Aircraft (Limited Crop Dusting Coverage); FL 04 65 12 01, Farm Employers Liability And Farm Employees Medical Payments Insurance; and FL 04 69 12 01, Custom Farming Liability Coverage. The changes are 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 nonadmitted premium income. These forms amend the applicable policy condition on audits by adding wording to the effect 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 owed, the due date on any bill is the due date for paying audit premiums.
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.
Farm--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.
ALASKA
Homeowners--The following forms:
HO 01 54 08 01 Special Provisions Endorsement - Alaska
HO 00 15 08 01 Special Personal Property Coverage - Form HO 00 03 Only
HO 04 88 08 01 Water Back Up and Sump Overflow - Alaska
HO 17 38 08 01 Unit-Owners Coverage C - Special Coverage - Alaska
HO 17 39 08 01 Unit-Owners Coverage A - Special Coverage - Alaska
have been approved for use by all participating insurers for all policies written on or after December 1, 2001. The forms were revised and introduced in response to a recent state Supreme Court decision. The form wording on concurrent causation has been changed so that, under certain circumstances, an occurrence involving both an excluded and an eligible peril may be covered. The wording also clarified the earth movement, water damage and settlement exclusions.
Farm--The program changes (with the exception of Form FL 04 65) 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.
ARIZONA
Farm--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.
Personal Auto--Form PP 01 67 01 02, Amendment of Policy Provisions - Arizona has been approved for use by all participating insurers for all policies written on or after January 1, 2002. The form's cancellation provision was changed to comply with a recent state law. Insurers are required to send cancel notices either by certified mail or by USPS certificate of mailing unless the cancel reason is for nonpayment.
ARKANSAS
Farm--The program changes (with the exception of Form FL 04 65) referred to in the Countrywide section along with revised Form FL 04 67 12 01, Arkansas Changes - Farm Employers' Liability and Farm Employees' Medical Payments Insurance have been approved for use by all participating insurers for all policies written on or after February 1, 2002.
CALIFORNIA
Homeowners--Form HO 05 90 03 97, Home Business Insurance Coverage, has been approved effective August 21, 2000, so it is immediately available for use by all participating insurers. This multistate form allows the option to provide coverage for certain home businesses to be written under a homeowners policy.
Inland Marine--An updated Inland Marine Handbook has been approved effective September 24, 2001. The revised handbook adds several program enhancements including new classes covering bailee's customers, fine arts dealers, galleries and museums, installment sales and leased property and yachts. Other refinements allow for boat coverage that supplements a homeowners, access to premium worksheets and other features.
COLORADO
Commercial Auto--Forms CA 22 03 12 01, Colorado Personal Injury Protection, CA 22 04 12 01, Colorado Added Personal Injury Protection, and CA 22 61 12 01, Colorado Optional Reduced Personal Injury Protection - Individual Named Insured have been approved for use. The forms were revised in response to Brennan v. Farmers Alliance Mut. Ins. Co. In this case, the Colorado Court of Appeals decided that when added personal injury protection (PIP) coverage is offered, the insurance company is required to extend the offer to the same people having mandatory basic PIP coverage. The result is that pedestrians and guest occupants are eligible for added PIP. The forms are available for use with a December 1, 2001, distribution date.
Farm--The program changes referred to in the Countrywide section have been approved for use and are available for use with a February 1, 2002, distribution date.
CONNECTICUT
Commercial Lines--ISO has revised IL 09 35 07 01, Exclusion Of Certain Computer-related Losses to delete the reference to the Boiler & Machinery coverage part. This form revision has been approved for use by all participating insurers for all policies written on or after February 1, 2002.
Farm--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 April 1, 2002.
DELAWARE
Farm--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.
FLORIDA
Farm--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 April 1, 2002.
GEORGIA
Farm--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.
Personal Auto--Form PP 04 54 01 02, Uninsured Motorists Coverage - Georgia has been approved for use by all participating insurers for all policies written on or after January 1, 2002. The form's insurance limit provision was changed to include a reference to uninsured property damage.
IDAHO
Farm--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.
ILLINOIS
Commercial Lines--ISO has revised IL 09 35 07 01, Exclusion Of Certain Computer-related Losses to delete the reference to the Boiler & Machinery coverage part. This form revision has been approved for use by all participating insurers for all policies written on or after February 1, 2002.
Farm--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.
IOWA
Farm--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.
KANSAS
Farm--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.
Personal Auto--Form PP 03 52 01 02, Rating Information - Kansas has been approved for use by all participating insurers for all policies written on or after January 1, 2002. The form's reference to ISO's surcharge for performance vehicles was removed since this practice has been discontinued.
KENTUCKY
Farm--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.
LOUISIANA
Dwelling Liability--Forms DL 01 17 01 02, Special Provision - Louisiana and BT 04 17 01 02, Special Provision - Louisiana have been approved for use by all participating insurers for all policies written on or after April 1, 2002. The revised and new forms comply with state law and an insurance department request. The termination provisions now show that, except for nonpayment of premium, any cancel notice must be delivered or mailed, with at least 30 days' advance notice, to any known person having an insurable interest in the insured property.
General Liability--Forms CG 26 72 01 02, Louisiana Changes - Premium Audit Condition, CG 31 29 01 02, Louisiana Changes - Premium Audit Condition (OCP) and CG 31 30 01 02, Louisiana Changes - Premium Audit Condition (Railroad Protective) have been approved for use by all participating insurers for all policies written on or after January 1, 2002. The new forms were introduced to comply with the billing requirements of National Association of Insurance Commissioners (NAIC) Statement of Statutory Accounting Principle no.6.
MAINE
Farm--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.
MARYLAND
Farm--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.
MASSACHUSETTS
Farm--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.
MICHIGAN
Farm--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.
MINNESOTA
Farm--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.
MISSISSIPPI
Farm--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.
MONTANA
Farm--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.
NEBRASKA
Farm--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.
Personal Auto--Form PP 04 48 01 02, Uninsured And Underinsured Motorists Coverage - Nebraska has been approved for use by all participating insurers for all policies written on or after January 1, 2002. The form was revised to delete a reference to its "reasonable belief" exclusion. This part of the form was interpreted to be against public policy by an appellate court.
NEVADA
Commercial Lines--Form IL 02 51 01 02, Nevada Changes - Cancellation and Nonrenewal has been approved for use by all participating insurers for all policies written on or after January 1, 2002. While the form was supposed to be changed to comply with a revised statute requiring 30 days' advanced notice for most cancellations, the only change appears to be that the form was merely made applicable to the Businessowner policy.
Farm--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.
NEW HAMPSHIRE
Commercial Auto--Forms CA 31 26 11 01, New Hampshire Uninsured Motorists Coverage and CA 01 11 11 01, New Hampshire Changes In Policy have been approved for use by all participating insurers for all policies written on or after January 1, 2002. The form was amended in response to recent court interpretations of the term "you" which have, in ISO's opinion, led to unintended coverage. It also allows arbitration only if both parties agree to it and it gives the insurer the option to preserve its right to subrogation.
Farm--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.
NEW JERSEY
Farm--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.
NEW MEXICO
Farm--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.
NEW YORK
Farm--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.
NORTH CAROLINA
Farm--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 April 1, 2002.
NORTH DAKOTA
Farm--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.
OHIO
Commercial Auto--Forms CA 21 33 11 01, Ohio Uninsured And Underinsured Motorists Coverage - Bodily Injury and CA 31 17 11 01, Ohio Uninsured Motorists Coverage - Property Damage have been approved for use by all participating insurers for all policies written on or after November 1, 2001. The forms were amended in an attempt to make them conform to a recent statute and to concerns of the insurance department. The schedule areas of the forms were revised, and parallel references were introduced to clarify the availability of both uninsured and underinsured coverage. A detailed and arduous examination of these forms is the only way to discern all of the revisions and their intent.
Commercial Lines--The following forms:
IL 02 04 01 02, Ohio Changes - Cancellation And Nonrenewal
CG 28 45 01 02, Ohio Changes - Cancellation And Nonrenewal
CG 28 46 01 02, Ohio Changes - Cancellation And Nonrenewal (Railroad Protective)
CG 30 16 01 02, Ohio Changes - Cancellation And Nonrenewal (Underground Storage Tanks)
have been approved for use by all participating insurers for all policies written on or after January 1, 2002. The forms were amended to add a failure to comply with reasonable loss control recommendations as a valid reason to terminate coverage. Wording has also been added to the interline endorsement to show that, in certain circumstances, a commercial auto policy may be nonrenewed only on its second anniversary date.
Farm--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.
Personal Auto--Forms PP 01 86 02 02, Amendment of Policy Provisions - Ohio Changes, PP 04 82 02 02, Uninsured Motorists Coverage - Ohio and PP 14 09 02 02, Underinsured Motorists Coverage - Ohio have been made available to interested insurers. The forms have been filed with a requested effective date of February 1, 2002. The forms were amended in an attempt to comply with former Senate Bill 97 and to the decisions made by the state Supreme Court in two separate cases. It is recommended that these forms be studied in detail in order to gain an appreciation of their new coverage intent.
OKLAHOMA
Commercial Liability Umbrella--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 March 1, 2002.
Farm--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.
OREGON
Commercial Auto--Forms CA 01 49 01 02, Oregon Changes and CA 20 73 01 02, Oregon Leasing Or Rental Concerns - Contingent Coverage have been approved for use by all participating insurers for all policies written on or after January 1, 2002. The forms were amended and introduced to include a specific reference to the insurance limits required by the state's financial responsibility law.
Farm--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.
Also, all of the Oregon-specific farm forms that were recently filed and approved have, effective January 1, 2002, been withdrawn and the previously approved multistate forms will be in use again. The forms were changed unnecessarily due to a misreading of a statutory provision.
Personal Auto--Form PP 01 94 02 02, Amendment of Policy Provisions - Oregon has been approved for use by all participating insurers for all policies written on or after February 1, 2002. The form was revised in an attempt to better reflect the requirements of the Oregon Financial Responsibility Law. The modified form, under described circumstances, limits an insured's ability to claim UIM coverage.
PENNSYLVANIA
Farm--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.
RHODE ISLAND
Commercial Lines--Forms IL 02 73 01 02, Rhode Island Changes - Cancellation And Nonrenewal and BP 01 31 01 02, Rhode Island Changes have been approved for use by all participating insurers for all policies written on or after January 1, 2002. The forms were amended to comply with former Senate Bill 310. The law requires termination notice to be
re-sent to the named insured by first class mail if a return receipt has not been received within 10 days.
Farm--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.
Homeowners--Form HO 12 38 04 02, Special Provisions - Rhode Island has been approved for use by all participating insurers for all policies written on or after April 1, 2002. The form now complies with former Senate Bill 310 which requires a termination notice to be re-sent to the named insured by first class mail if a return receipt has not been received within 10 days.
SOUTH CAROLINA
Farm--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.
SOUTH DAKOTA
Farm--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.
TENNESSEE
Farm--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.
TEXAS
Boiler and Machinery, Commercial Inland Marine, and Crime and Fidelity--Interline Forms IL 01 71 10 01, Texas Changes - Loss Payment and IL 02 88 10 01, Texas Changes - Cancellation And Nonrenewal have been approved for use. The forms were revised to accommodate the recently approved Farm Liability and Inland Marine forms. The endorsements are available for use with a distribution date of March 2002.
Boiler and Machinery, Commercial Property, Commercial Inland Marine, Crime and Fidelity, Employment-Related Practices Liability and General Liability--Interline Form IL 02 75 10 01, Texas Changes - Cancellation And Nonrenewal Provisions For Casualty Lines And Commercial Package Policies has been approved for use. The form was revised to include a reference to the recently approved Farm Property forms. The endorsement is available for use with a distribution date of March 2002.
Farm--The ISO multistate Farm Property, Inland Marine and Liability policy and endorsement forms, along with related, state-specific farm forms have been approved for use. The forms are now available for use by participating insurers and have a distribution date of March 2002.
UTAH
Farm--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.
Personal Auto--Form PP 04 66 01 02, Underinsured Motorists Coverage - Utah has been approved for use by all participating insurers for all policies written on or after January 1, 2002. The form was revised to comply with former Senate Bill 122 which requires that, in order to preserve its rights to subrogate a claim, an insurer must advance a payment within 5 days of a tentative settlement offer received by the injured motorist.
VERMONT
Commercial Auto--The program changes referred to in the Countrywide section, along with state-specific Form CA 01 86 10 01, Vermont Changes In Garage Coverage Form - Pollution have been approved for use by all participating insurers for all policies written on or after February 1, 2002.
Farm--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.
VIRGINIA
Farm--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 April 1, 2002.
WASHINGTON
Farm--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.
WEST VIRGINIA
Farm--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.
WISCONSIN
Farm--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.
Homeowners--The multistate 2000 edition of the ISO Homeowner program along with state-specific Form HO 01 48 04 01, Special Provisions - Wisconsin have been approved for use by all participating insurers for all policies written on or after March 1, 2002.
WYOMING
Farm--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. *