ISO form and endorsement changes approved by individual states, through February 1997

Rough Notes, Apr 1997 by Diana Kowatch

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., 1997 Copyright, ISO Commercial Risk Services, Inc., 1997.

COUNTRYWIDE

NEW 1997 MULTISTATE HOME BUSINESS INSURANCE COVERAGE ENDORSEMENT TITLED HOBIZ (TM)

To accommodate the growing need for protection in the Homeowners policy for in-home businesses, ISO has developed a new optional endorsement that may be added to an existing policy. This endorsement offers coverage for business personal property above the $2,500 initially available in the HO policy and increases the off-premises business personal property from $250 to $5,000. Money is covered up to $1,000; and protection for business use of credit card, fund transfer card, forgery and counterfeit money is available for up to $1,000. The following coverages are added:

Accounts Receivable-$5,000 on-premises and $2,500 off Valuable Papers and Records -$2,500

Business Income-actual loss sustained

Extra Expense-actual Civil Authority-covered is the actual loss sustained for business income and extra expense as a result of action by a civil authority prohibiting access to the residence premises.

Coverage E-Personal Liability is extended to cover business liability for premises and products-completed operations hazards. Protection is extended to include both personal injury and advertising injury liability.

Coverage F-Medical Payments to Others is similarly extended to business occurrences.

Excluded are: professional liability

specified instances of personal or advertising injury

damage to impaired property or property not physically injured

damage to particular property

damage to your product

damage to your work

employer's liability

pollution

recall of products, work, or impaired property

The limit for products-completed operations hazard is the same as that for the Coverage E limit shown in the declarations. The limit for all other business liability is twice the sum of the Coverage E and F limits shown in the declarations. The limit for Damage to Property of Others is increased to $2,500 per occurrence.

The above listed recap is only a portion of the overall coverage offered in the HOBIZ endorsement. Please review the entire endorsement carefully before using. Listed below under the individual states, will be those that have approved this endorsement. This text will not be repeated but will refer back to this Countrywide section.

ALABAMA

New 1997 multistate home business insurance coverage endorsement titled HOBIZ has been approved-refer to Countrywide above. This change applies to all policies written on or after June 1, 1997.

ARKANSAS

New 1997 multistate home business insurance coverage endorsement titled HOBIZ has been approved-refer to Countrywide above. This change applies to all policies written on or after August 1, 1997.

ALASKA

New 1997 multistate home business insurance coverage endorsement titled HOBIZ has been approved-refer to Countrywide above. This change applies to all policies written on or after August 1, 1997.

ARIZONA

New 1997 multistate home business insurance coverage endorsement titled HOBIZ has been approved-refer to Countrywide above. This change applies to all policies written on or after June 1, 1997.

Personal Auto Endorsement PP 01 67, Amendment of Policy Provisions - Arizona, has been revised in two areas. First, the definition of uninsured motor vehicle has been amended as requested by the Arizona Department of Insurance to include a motor vehicle which, at the time of accident, has a limit less than the minimum specified by the financial responsibility law of the state in which the vehicle is principally garaged. Second, in order to comply with 1996 Arizona Sess. Laws (former S.B. 1158) Section 6, wording is added to clarify that, subject to specified conditions, only accidents that have occurred on or after July 20, 1996, can be used as reason to nonrenew. These changes apply to all policies written on or after June 1, 1997.

CALIFORNIA

Revisions have been made to IL 02 70, California Changes - Cancellation and Nonrenewal Endorsement, in order to comply with new cancellation and nonrenewal requirements for commercial policies covering certain residential properties as set forth in CAL. INS. CODE Sections 10089.16(E), 10089.16(F), 10089.29(D) (former A.B. 2086), and 10089.29(b)(2) (former A.B. 3232) specifically as the insurance applies to earthquake. The approval date for the revisions to the endorsement was December 5, 1996, for insurers participating with ISO for California.