PFM 03

PF&M COMPANION

FORM AND ENDORSEMENT CHANGES

Approved by individual states, through November 2002

By Bruce Hicks, CLU, CPCU

COUNTRYWIDE

Farm

ISO has introduced a multi-state revision consisting of the introduction of the following forms:

FP 05 30 12 02 Limited Coverage For Fungi, Wet Rot, Dry Rot And Bacteria - Property

FP 05 31 12 02 Limited Coverage For Fungi, Wet Rot, Dry Rot And Bacteria - Farm Dwellings, Appurtenant Structures And Household Personal Property

FL 05 32 12 02 Limited Coverage For Fungi, Wet Rot, Dry Rot And Bacteria - Liability

FL 10 35 12 02 Fungi Or Bacteria Exclusion - Liability

FB 10 14 12 02 Fungi Or Bacteria Exclusion

These forms modify the coverage provided by the Farm Property, Farm Liability and Farm Umbrellas Liability policies. FP 05 30, Limited Coverage For Fungi, Wet Rot, Dry Rot And Bacteria - Property adds limited coverage against mold or rot. It allows a maximum of $15,000, but the loss must be caused by a peril named in the form. While it also covers such loss that arises from leaks and seepage, the damage has to have occurred within a couple of weeks of the originating moisture condition.

FP 05 31, Limited Coverage For Fungi, Wet Rot, Dry Rot And Bacteria - Farm Dwellings, Appurtenant Structures And Household Personal Property form provides coverage similar to the FP 05 30 with the following exceptions: Its basic coverage is capped at $10,000 and there is no protection for farm (real or personal) property. Note that both of the above forms' coverage is provided as an annual aggregate. Also, both forms may, with payment of additional premium, be increased to a maximum of $25,000. The coverage does not apply to livestock loss.

The liability forms provide options to either allow a limited amount of coverage for BI or PD related to fungi/bacteria (with an exemption for food poisoning) or to totally exclude the exposure (again with the exception for liability related to food poisoning). Finally, the FB 10 14, Fungi Or Bacteria Exclusion eliminates mold/rot-related coverage (except for food poisoning) from the Farm Umbrella Liability policy. The forms also introduce the term "Fungi or bacteria incident."

Homeowners

ISO has introduced a multi-state form, HO 04 55, Identity Fraud Expense Coverage Endorsement.

The form expands coverage under the HO 2000 base policy forms to help with expenses related to recovering from identity theft. Specifically the form allows a maximum of $15,000 to handle:

* Limited amount of income loss due to time taken to meet with authorities or attorneys

* Defense of lawsuits filed against the insured by defrauded creditors

* Payment of certain loan application fees

* Long distance telephone expense to businesses, authorities, financial institutions

* Notary and certified mail costs related to paperwork to deal with fraud damage

The $15,000 is a maximum, per-occurrence limit, for any fraudulent incident discovered during the policy term. *

Editor's note: The list of individual states and which changes each has approved appears exclusively at the "PF&M Companion" link at the Rough Notes Web site: www.roughnotes.com.

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.

ALABAMA

Farm--The program changes referred to in the Countrywide section have been approved. The forms are available for use by all participating insurers for all policies written on or after January 1, 2003.

Homeowners--The program changes referred to in the Countrywide section have been approved. The forms are available for use by all participating insurers for all policies written on or after March 1, 2003.

ALASKA

Businessowners--Forms BP 05 19 10 02, Alaska Exclusion of War, Military Action and Terrorism and BP 05 20 10 02, Alaska War or Terrorism Exclusion have been approved. The forms are available for use by all participating insurers for all policies written on or after October 1, 2002. The forms are meant for use with ISO's 07 02 Edition BOP Program.

Homeowners--ISO's filing of its 2000 edition Homeowners and Mobilehomeowners programs, along with several state-specific forms, have been approved. The forms are available for use by all participating insurers for all policies written on or after March 1, 2003. (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.)

ARIZONA

ARKANSAS

Commercial Automobile--Forms CA 21 08 01 03, Arkansas Uninsured Motorists Coverage and CA 31 28 01 03, Arkansas Underinsured Motorists Coverage have been approved. The forms are available for use by all participating insurers for all policies written on or after January 1, 2003. The form revision and introduction were made in response to the State Supreme Court's decision in Monday v. Canal Ins. where the court decided that underinsured motorist coverage does not have to be automatically offered with Commercial Auto policies.

COLORADO

Farm--The program changes referred to in the Countrywide section have been approved. The forms are available for use by interested insurers with a distribution date of January 2003.

Homeowners--The program changes referred to in the Countrywide section have been approved. The forms are available for use by interested insurers with a distribution date of March 1, 2003.

CONNECTICUT

Homeowners--The following forms have been approved:

* HO 04 74 09 02 Limited Fungi, Wet Or Dry Rot, Or Bacteria Coverage

* HO 04 75 09 02 Limited Fungi, Wet Or Dry Rot, Or Bacteria Coverage

* HO 04 76 09 02 Limited Fungi, Wet Or Dry Rot, Or Bacteria Coverage

The forms are available for use by all participating insurers for all policies written on or after January 1, 2003. The forms allow insurers to provide limited protection against mold/fungi-related losses under the basic HO policy forms.

Dwelling Liability--Form DL 24 71 04 02, Limited Fungi, Wet Or Dry Rot, Or Bacteria Coverage has been approved. The form is available for use by all participating insurers for all policies written on or after February 1, 2003. The form allows insurers to offer a limited amount of coverage for loss due to wet or dry rot. However, the limit that shows in the form's schedule is an aggregate amount and it is also a sub-limit of the policy's Coverage L insurance.

DELAWARE

DISTRICT OF COLUMBIA

FLORIDA

Homeowners--The program changes referred to in the Countrywide section have been approved. The forms are available for use by all participating insurers for all policies effective on or after March 1, 2003.

GEORGIA

IDAHO

ILLINOIS

Businessowners--Forms BP 05 12 07 02, Exclusion of Terrorism (with limited exception) and Exclusion of War and Military Action and BP 05 13 07 02, War or Terrorism Exclusion have been approved. The forms are available for use by all participating insurers for all policies written on or after February 1, 2003. The forms are meant for use with ISO's 07 02 Edition BOP Program.

Businessowners--ISO's multi-state filing introducing its 07 02 edition of the Businessowners Program and several state-specific forms has been approved. The forms are available for use by all participating insurers for all policies written on or after February 1, 2003. (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 Automobile--Forms CA 21 30 03 03, Illinois Uninsured Motorists Coverage, CA 21 38 01 03, Illinois Underinsured Motorists Coverage and CA 21 53 03 03, Illinois Uninsured Motorists Coverage - Property Damage have been approved. The forms are available for use by all participating insurers for all policies written on or after May 1, 2003. The form revisions were made in response to the decision in Buchalo v. Country Mutual Ins. where the court decided that a two-year time limitation on claims was valid. These forms provide such a limitation provision.

INDIANA

KANSAS

Businessowners--ISO's multi-state filing introducing its optional mold/fungi forms has been approved. The forms are available for use by all participating insurers for all policies written on or after February 1, 2003. (For more details on this change, please refer to the "PF&M Companion" in the November 2002 issue of Rough Notes magazine at http://www.roughnotes.com.)

Commercial Liability Umbrella, General Liability--ISO's multi-state introduction of optional fungi or bacteria endorsements and the commercial liability umbrella program have been approved for use. The forms are available for use by all participating insurers for all policies written on or after January 1, 2003. (For more details on this change, please refer to the "PF&M Companion" in the May 2002 issue of Rough Notes magazine at http://www.roughnotes.com.)

KENTUCKY

Commercial Auto--The following forms have been approved:

* CA 23 50 01 02 - Kentucky War, Military Action And Terrorism Exclusion

* CA 23 51 01 02 - Kentucky War, Military Action And Terrorism Exclusion - Garage Coverage Form

* CA 26 14 01 02 - Amendment Of Single Interest Policy Provisions - War, Military Action And Terrorism Exclusion

These forms replace the policy's previous war exclusion language to create, essentially, an absolute exclusion against damage that is caused by military or terrorist actions. There is also a newly defined term, "terrorism." The forms are available for use by all participating insurers for all policies written on or after October 29, 2002.

Farm--Form FB 10 31 07 02, War Or Terrorism Exclusion Endorsement has been approved. The form is available for use by all participating insurers for all policies written on or after January 1, 2003. The form modifies coverage under the Farm Premises and Personal Umbrella Liability endorsement and the Farm Umbrella Liability policy to eliminate coverage for loss related to war or terrorist acts.

LOUISIANA

Businessowners--Form BP 05 52 03 03, Louisiana Changes - Pollution Exclusion has been approved. The form is available for use by all participating insurers for all policies written on or after March 1, 2003. The form was revised in the hope that its wording most closely reflects recent case law concerning the BOP's coverage obligation to losses involving pollution.

Crime and Fidelity--ISO's multi-state filing introducing its 2001 edition of its Crime and Fidelity Program has been approved. The forms are available for use by all participating insurers for all policies written on or after March 1, 2003. (For more details on this change, please refer to the "PF&M Companion" in the October 2002 issue of Rough Notes magazine at http://www.roughnotes.com.)

MAINE

Commercial Auto--The following forms have been approved:

* CA 01 34 02 03 - Maine Changes

* CA 01 76 02 03 - Maine Changes - Garage Coverage Form

These forms modify the forms so that an exclusion for costs related to diminished value is applicable. The forms are available for use by all participating insurers for all policies written on or after February 1, 2003.

Homeowners--The following forms have been approved:

* HO 04 26 04 02 Limited Fungi, Wet Or Dry Rot, Or Bacteria Coverage

* HO 04 27 04 02 Limited Fungi, Wet Or Dry Rot, Or Bacteria Coverage

* HO 04 28 04 02 Limited Fungi, Wet Or Dry Rot, Or Bacteria Coverage

The forms are available for use by all participating insurers for all policies written on or after November 1, 2002. The forms allow insurers to provide limited protection against mold/fungi-related losses under the basic HO policy forms.

MARYLAND

MASSACHUSETTS

MISSISSIPPI

MISSOURI

Commercial Auto--Form CA 02 19 03 03 - Missouri Changes has been approved. This form was revised to conform with an insurance department request that a 60-day notice of termination apply to such policies. The revised form is available for use by all participating insurers for all policies written on or after March 1, 2003.

MONTANA

NEBRASKA

Employment Related Practices Liability--The state has approved ISO's 2001 revisions to its multi-state program for handling workplace related liability exposures. The forms have been approved for all participating insurers for all policies written on or after January 1, 2003. (For more details on this change, please refer to the "PF&M Companion" in the October 2001 issue of Rough Notes magazine at http://www.roughnotes.com.)

NEVADA

NEW HAMPSHIRE

Businessowners--ISO's multi-state filing introducing its optional mold/fungi forms has been approved. The forms are available for use by all participating insurers for all policies written on or after January 1, 2003. (For more details on this change, please refer to the "PF&M Companion" in the November 2002 issue of Rough Notes magazine at http://www.roughnotes.com.)

Commercial Liability Umbrella, General Liability--ISO's multi-state introduction of optional fungi or bacteria endorsements and the Commercial Liability Umbrella Program has been approved for use. The forms are available for use by all participating insurers for all policies written on or after January 1, 2003. (For more details on this change, please refer to the "PF&M Companion" in the May 2002 issue of Rough Notes magazine at http://www.roughnotes.com.)

Homeowners--The following forms have been approved:

* HO 04 31 04 02 Limited Fungi, Wet Or Dry Rot, Or Bacteria Coverage

* HO 04 32 04 02 Limited Fungi, Wet Or Dry Rot, Or Bacteria Coverage

* HO 04 33 04 02 Limited Fungi, Wet Or Dry Rot, Or Bacteria Coverage

The forms are available for use by all participating insurers for all policies written on or after February 1, 2003. The forms allow insurers to provide limited protection against mold/fungi-related losses under the basic HO policy forms.

Homeowners--ISO's filing of its 2000 edition Homeowners and Mobilehomeowners programs, along with several state-specific forms, has been approved. The forms are available for use by all participating insurers for all policies written on or after May 1, 2003. (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.)

NEW MEXICO

Farm--The program changes referred to in the Countrywide section have been approved. The forms are available for use by all participating insurers for all policies written on or after March 1, 2003.

NEW YORK

Commercial Automobile--ISO's multi-state forms filing of several 2002 edition forms along with form CA 20 82 01 03 - New York Physical Damage Coverage - Autos Held For Sale By Non-Dealers have been approved for use. The forms are available for use by all participating insurers for all policies written on or after February 1, 2003. (For more details on this change, please refer to the "PF&M Companion" in the May 2002 issue of Rough Notes magazine at http://www.roughnotes.com.)

Homeowners--Forms HO 01 31 10 02, Special Provisions - New York and HO 24 86 10 02, Personal Injury - New York have been approved. The forms are available for use by all participating insurers for all policies written on or after December 1, 2002. The forms were revised to correct several wording inconsistencies created when some new endorsements were introduced with the ISO HO 2000 Program.

NORTH CAROLINA

Commercial Auto--Form CA 21 16 03 03 - North Carolina Uninsured Motorists Coverage has been approved. This form was revised to conform with the state's definition of "uninsured motor vehicle." The revised form is available for use by all participating insurers for all policies written on or after March 1, 2003.

Farm--The program changes referred to in the Countrywide section have been approved. The forms are available for use by all participating insurers for all policies written on or after April 1, 2003.

NORTH DAKOTA

Farm--The program changes referred to in the Countrywide section have been approved. The forms are available for use by all participating insurers for all policies written on or after April 1, 2003.

OHIO

OKLAHOMA

Dwelling Liability--Form DL 98 32 12 02, Personal Umbrella Liability Policy Oklahoma Notice has been approved. The form is merely a replacement of Form IL 01 79. It was given a new title to match the ISO form naming convention. The new form is available for use by all interested insurers with a distribution date of December 2002.

OREGON

Commercial Auto--The following forms have been approved:

* CA 23 42 01 02 - Oregon War, Military Action And Terrorism Exclusion

* CA 23 43 01 02 - Oregon War, Military Action And Terrorism Exclusion - Garage Coverage Form

* CA 26 14 01 02 - Amendment Of Single Interest Policy Provisions - War, Military Action And Terrorism Exclusion

PENNSYLVANIA

PUERTO RICO

Employment Related Practices Liability--The state has approved ISO's 2001 revisions to its multi-state program for handling workplace-related liability exposures. The forms have been approved for all participating insurers for all policies written on or after March 1, 2003. (For more details on this change, please refer to the "PF&M Companion" in the October 2001 issue of Rough Notes magazine at http://www.roughnotes.com.)

RHODE ISLAND

Businessowners--Form BP 01 95 03 03 - Rhode Island Changes - Notice Of Cancellation And Nonrenewal For Residential Contractors has been approved. This form was revised to conform with the state's requirement that its Contractors' Registration Board receive a separate notice of cancellation or nonrenewal. The revised form is available for use by all participating insurers for all policies written on or after March 1, 2003.

Commercial Auto--Form CA 21 43 01 03 - Rhode Island Uninsured Motorists Coverage has been approved. This form was revised to conform with the state's positions on arbitration, time limitation for filing legal action and "who is an insured." The revised form is available for use by all participating insurers for all policies written on or after January 1, 2003.

SOUTH CAROLINA

Commercial Property--Form CF-2002-RALL1, reflecting ISO's 10 00 edition CP program and several state-specific forms has been approved. The form is available for use by all participating insurers for all policies written on or after February 1, 2003.

SOUTH DAKOTA

TENNESSEE

UTAH

VERMONT

Homeowners--ISO's filing of its 2000 edition Homeowners and Mobilehomeowners programs, along with several state-specific forms, has been approved. The forms are available for use by all participating insurers for all policies written on or after April 1, 2003. (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.)

VIRGINIA

Boiler and Machinery, Commercial Property, Commercial Inland Marine--The state has approved the withdrawal of IL 09 17 11 85, Resident Agent Countersignature Endorsement since, by statute, the provision is inapplicable. This change takes effect for all policies written on or after March 1, 2003.

VIRGIN ISLANDS

Homeowners--The program changes referred to in the Countrywide section have been approved. The forms are available for use by interested insurers with a distribution date of March 1, 2003.

WEST VIRGINIA

Commercial Automobile--The state has approved the Simplified 2001-2002 Commercial Auto Program which, after several revisions, replaces the state's 1980 Simplified Commercial Auto Program. This program is available for use by all participating insurers for all policies written on or after February 1, 2003.

Commercial Automobile--Forms CA 21 22 10 02, West Virginia Uninsured and Underinsured Motorists Coverage and CU 31 08 10 02, West Virginia Excess Uninsured And Underinsured Motorists Coverage have been approved. The forms are available for use by all participating insurers for all policies written on or after January 1, 2003. The forms were revised in response to several court decisions. The forms' provisions were clarified to conform with the rulings.

Commercial Lines--The following forms have been approved:

* BM 01 35 09 02 West Virginia Changes

* BP 01 37 09 02 West Virginia Changes

* CA 01 83 09 02 West Virginia Changes

* CG 26 62 09 02 West Virginia Changes

* CG 31 16 09 02 West Virginia Changes - Binding Arbitration

* CM 01 06 09 02 West Virginia Changes - Appraisal

* CP 01 12 09 02 West Virginia Changes

* CR 01 48 09 02 West Virginia Changes - Arbitration

* FL 99 08 09 02 West Virginia Changes - Arbitration

* FP 01 47 09 02 West Virginia Changes

* OP 01 43 09 02 West Virginia Changes

* PR 21 11 09 02 West Virginia Changes - Arbitration

The forms are available for use by all participating insurers for all policies written on or after January 1, 2003. The forms' wording regarding arbitration and appraisal was revised in order to conform with an official letter from the state insurance authority.

Homeowners--Form HO 01 47 11 02, Special Provisions -West Virginia has been approved. The form is available for use by all participating insurers for all policies written on or after December 1, 2002. The form's wording regarding arbitration and appraisal was revised in order to conform with an official letter from the state insurance authority.

Personal Automobile--Form PP 01 58, Amendment of Policy Provision - West Virginia has been approved. The form is available for use by all participating insurers for all policies written on or after January 1, 2003. The form's wording regarding arbitration and appraisal was revised in order to conform with an official letter from the state insurance authority.

WISCONSIN

Businessowners--Form BP 01 27 03 03, Wisconsin Changes has been approved. The form is available for use by all participating insurers for all policies written on or after March 1, 2003. The form was revised to add back the provisions regarding domestic abuse that had been mistakenly left out in a previous revision.

WYOMING