ISO form and endorsement changes approved by individual states in July 1995

Rough Notes, Sep 1995 by Kowatch, Diana

The PF&M Companion is a service of the Policy, Form and Manual Analysis Service, published by the Rough Notes Company, Inc. Policy, Form and Manual Analysis (PF&M), continually updated since 1929, is the personal, commercial and specialty policy and form analysis service provided by the Rough Notes Company. PF&M is available in paper, on disk in Three Part Harmony, and on CD-ROM through Silver Plume as Rough Notes. For more information on this service call 800-428-4384.

PF&M Companion includes copyrighted material of Insurance Services Office, Inc. or ISO Commercial Risk Services, Inc. with its permission.;(C) Copyright, Insurance Services Office, Inc., 1995(C) Copyright ISO Commercial Risk Services, Inc., 1995.

OVERVIEW

This month was a light month for approvals and finalization of state actions on insurance filings. South Dakota, however, appeared very busy and resolved a number of filings as listed below.

One new countrywide filing made in March, with respect to a new Total Pollution Exclusion Garage Coverage Form for Non-Auto Exposure Endorsement -- CA 25 16, has received approval in numerous states. Information is provided in the Countrywide Section.

COUNTRYWIDE

Commercial property approvals continue to trickle in from states on the rules, loss costs, forms, and SCOPES filings. These changes include: The base property damage deductible for buildings, personal property, spoilage, and builders risk has been increased from $250 to $500. A buyback to the $250 is available. Optional deductibles have been amended to start at $1,000 instead of $500.

Condominium Commercial Unit-Owners Optional coverage Form CP 04 18 has been revised as follows: Changes in rates were filed to coincide with the increase in the base deductible from $250 to $500. The endorsement provides additional loss assessment coverage subject to a separate schedule and limit, but pays no more than $1,000 for an assessment due to the condominium association's policy deductible. The form has also been revised to allow for the insertion of a deductible for loss assessment.

Another major change in respect to SCOPES is as follows: The property protection class multipliers have been revised and will now base the multipliers on the building construction in addition to the protection class. The table for windstorm or hail percentage deductibles has been modified, to adjust the ranges of the amount of insurance at each location. This revision was made to complement the deductible changes. The rating examples appendix has been amended to reflect the above changes. We are listing these changes once in the countrywide and then in the state recaps, those states which have approved the changes will be so noted with the approval date mentioned.

A new commercial automobile endorsement has been developed, filed and is now being approved in a number of jurisdictions. This endorsement, the Total Pollution Exclusion Garage Coverage Form Non-Auto Exposure Endorsement -- CA 25 16, is an optional endorsement that is intended to provide or maintain consistency among all commercial liability coverages, both general liability and auto, with respect to the pollution exposure and exclusion of such. The attempt is to provide a total pollution exclusion. This endorsement should be used any time a pollution policy or an underground storage tank policy is in existence, to prevent overlaps and duplicate coverages. We are listing this endorsement once in the countrywide and then in the state recaps, those states which have approved the new form, will be so noted with the approval date mentioned.

ALABAMA

The Total Pollution Exclusion Garage Coverage Form Non-Auto Exposure Endorsement -- CA 25 16, has been approved in this state for all policies written on or after July 1, 1995. See the countrywide explanation.

ALASKA

The Total Pollution Exclusion Garage Coverage Form Non-Auto Exposure Endorsement -- CA 25 16, has been approved in this state for all policies written on or after November 1, 1995. See the countrywide explanation.

See the Countrywide explanation for a list of the five commercial property changes that have been approved in Alaska for policies written on or after October 18, 1995.

ARIZONA

The Total Pollution Exclusion Garage Coverage Form Non-Auto Exposure Endorsement -- CA 25 16, has been approved in this state for all policies written on or after November 1, 1995. See the countrywide explanation.

ARKANSAS

The Total Pollution Exclusion Garage Coverage Form Non-Auto Exposure Endorsement -- CA 25 16, has been approved in this state for all policies written on or after July 1, 1995. See the countrywide explanation.

The Arkansas Special Provisions Endorsement -- HO 01 03 for homeowners policies has revised the language under Additional Coverage #9 regarding glass or safety glazing material to make it appropriate and compatible with HO 00 04. This applies to all policies written on or after November 1, 1995.

In addition, ISO has withdrawn the filings on HO 04 20 -- Specified Additional Amount of Insurance for Coverage A Only and HO 04 93 -- Roof Surfacing Actual Cash Value Loss Settlement, due to objections made by the Arkansas Insurance Department with respect to these endorsements.