ISO Form and endorsement changes approved by individual states through July 1996

Rough Notes, Sep 1996 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 1-800-428-4384.

Includes copyrighted material of Insurance Services Office, Inc., or ISO Commercial Risk Services, Inc., with its permission; (Copyright, Insurance Services Office, Inc., 1996 (C)Copyright, ISO Commercial Risk Services, Inc., 1996.

COUNTRYWIDE

02-96 Commercial Property Multistate Form and Rule Filing With Respect to Collapse

A new endorsement has been developed, CP 01 53-CollapseChanges, for use with the Builders Risk Coverage Form, CP 00 20, and the Mortgageholders Errors and Omissions Coverage Form, CP 00 70. Along with this, applicable rule changes have also been made. This new endorsement revises CollapseAdditional Coverage in the two mentioned coverage forms to allow protection for personal property from the collapse cause of loss even if there was no building collapse, and to further clarify that the building does not necessarily have to be covered under the same coverage form, as in the case of lessees.

Added language also clarifies that coverage is provided if defective construction is a contributing factor along with one of the covered causes of loss. Other changes are renumbering of items and paragraphs to complement the coverage changes. Listed below in the individual states is an indication of those states that have approved these revisions. The text will not be repeated but will refer to this Countrywide section. These changes apply to all policies written on or after November 1, 1996, unless otherwise indicated.

ARIZONA

Personal Auto Endorsement PP 01 67-Amendment of Policy Provisions-Arizona, has been revised in response to the 1996 Arizona Session Laws, (former S.B. 1158) to change the termination provision per Ariz. Rev. State. Ann. 20-1631 and 20-1632. The new provision allows nonrenewal when the named insured, or spouse of same household, or other driver living in household, or any other driver regularly and frequently using the covered auto has had three or more accidents in the most recent 36 months for which that person was 50% or more responsible, which resulted in at least $1,800 of paid property damage, and which occurred prior to 1-1-2000. This endorsement applies to all policies written on or after October 1, 1996.

Previously, we informed you of revisions to the Commercial Auto Endorsement CA 02 02-ArizonaChanges-Cancellation, in response to 1994 AZ Sess. Laws 329 (former S.B. 1515). Changes were made to reflect the endorsement may also apply to the Motor Carrier coverage form and to modify wording explaining that provisions in the coverage form apply unless modified by the endorsement. The effective date of these revisions has been changed from July 1 to August 1, 1996.

CALIFORNIA

Revisions have been made to two commercial auto endorsements, CA 21 54-California Uninsured Motorists Coverage-Bodily Injury; and CA 21 55-California Uninsured Motorist Coverage-Property Damage. These changes are a resuit of the California Supreme Court decision in Quintano vs. Mercury Casualty Company, 48 Cal.Rpts.2d 1 (Cal. 1995) with respect to Cal. Ins. Code Section 11580.2(I) and affect the condition Legal Action Against Us. Previously, this condition indicated circumstances that the insured must comply with within one year of the date of an accident in order to bring legal action against the insurer. The condition now clarifies that this does not apply to accidents involving an underinsured motor vehicle. Also, the condition on arbitration procedures has been clarified to track with Cal. Ins. Code Section 11580.2(f). The revised endorsements have been approved for use on or after May 29, 1996.

CONNECTICUT

The 02-96 Commercial Property Multistate Form and Rule Filing With Respect To Collapse have been approved-see Countrywide. These changes apply to all policies effective on or after January 1, 1997.

FLORIDA

A new commercial auto endorsement and corresponding rule change have been developed in response to Florida District Court of Appeals decision in Bush Leasing, Inc. vs. Gallo, 634 So.2d (Fla. Dist. Ct. App. 1994). The endorsement, CA 20 46-Florida Leased Vehicles, provides separate limits required by the Florida Financial Responsibility Law of 1996. This change applies to all policies written on or after August 1, 1996.

The 02-96 Commercial Property Multistate Form and Rule Filing With Respect To Collapse have been approved-see Countrywide. These changes apply to all policies effective on or after January 1, 1997.

ILLINOIS

Illinois has approved for use the 1995 revisions and amendments to the Commercial Lines Manual Classification Table with a distribution date of October 1996.