ISO form and endorsement changes approved by individual states, through August 1996

Rough Notes, Oct 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 @Copyright, ISO Commercial Risk Services, Inc., 1996.

COUNTRYWIDE

Revised Lead Time Requirements for the Notification of Policyholders of Cancellation, Nonrenewal, Price, or Coverage.

Listed below are those states that have had changes in statues and regulations that affect the lead time required for policyholder notification of cancellation, nonrenewal, or policy price/coverage. Unless otherwise indicated, the notification changes are effective as of January 1, 1996.

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

A new endorsement has been developed, CP 01 53, Collapse Changes 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 Collapse-Additional 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.

Also added is language to clarify that there is coverage for defective construction if it is a contributing factor along with one of the covered causes of loss. Other changes include renumbering of items and paragraphs to correlate with the coverage changes.

Listed below in the individual state recaps are indications 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.

ARKANSAS

Approval has been received for the 1993 multistate revisions to the commercial auto coverage forms and endorsements, effective for all policies written on or after December 1, 1996.

CALIFORNIA

Approval has been given to the revisions to the Nuclear Energy Liability Exclusion Endorsement, IL 00 21, which will extend its applicability to the Underground Storage Tank (UST) Policy Program. This approval may be used by insurers participating in the California forms service as of July 10, 1996.

COLORADO

In order to comply with 1996 Colorado Sess. Laws (former S.B. 78, sections 2 & 3), changes have been made to the Personal Auto Endorsement, PP 05 61, Personal Injury Protection Coverage-Colorado. These revisions amend the description of medical expense to state that any rehab expenses not exhausted shall be made available to the insured for medical expenses; and to state that neurological injuries known as closed-head injuries and certain other disorders are to be considered covered medical, dental, rehabilitation or treatment procedures. These changes apply to policies written on or after November 1, 1996.

CONNECTICUT

Revised Lead Time Requirements for the Notification of Policyholders of Cancellation, Nonrenewal, Price, or Coverage. For property and casualty insurance, the premium billing notice requirement has been changed to 60 days for any liability insurance policy where a municipality is the named insured. The content requirements did not change.

ILLINOIS

Revised Lead Time Requirements for the Notification of Policyholders of Cancellation, Nonrenewal, Price, or Coverage. Illinois now requires a 60-day written notice anytime an insurer increases renewal premium by 30% or more, or changes deductibles or coverage so that the policy is materially altered.

KENTUCKY

Revised Lead Time Requirements for the Notification of Policyholders of Cancellation, Nonrenewal, Price, or Coverage. Kentucky requires a 30-day written notice of renewal to the first named insured and agent of record with the renewal premium and due date clearly stated, or 75 days if the renewal premium increases more than 25% for similar coverage and exposures. This applies to both property and casualty.

LOUISIANA

Revised Lead Time Requirements for the Notification of Policyholders of Cancellation, Nonrenewal, Price, or Coverage. The 30-day written notice of rate increase, changes in deductible or reduction in policy limit or coverage now applies to all property and casualty policies other than aviation or employers liability.

MAINE

The 1991 edition of the multistate revisions to the Homeowners Program has been approved for use in Maine with Maine specific amendments and endorsements. A complete review of the program in its entirety with special attention to state-specific changes should be completed prior to usage. These changes are applicable to policies written on or after December 1, 1996.