ISO form and endorsement changes

Rough Notes, Jun 1999 by Kowatch, Diana

PF&M COMPANION

Approved by individual states through April 1999

COUNTRYWIDE

Auto Service Risk Multistate Market Segment Line Of Business Program

The first of the new series of market-specific advisory programs consisting of products designed to meet the coverage needs of specific market segments has begun to receive approvals. The Auto Service Risks Program is the first to be developed for the new Division TwelveMarket Segments.

Endorsement MS AS 01-Auto Service Risks modifies the commercial property and general liability coverage parts providing coverage enhancements specific to an auto service risk. Other available endorsements include:

MS AS 02-Auto Service Risks-Loss or Damage to Customers' Autos (Direct Primary Coverage) modifies the commercial property coverage form to provide physical damage coverage for property of others in the insured's care.

MS AS 03-Auto Service Risks-Loss or Damage to Customers' Autos (Legal Liability Coverage) modifies the commercial property coverage form to provide physical damage coverage for property of others in the insured's care.

MS AS 04-Auto Service Risks-Loss or Damage to Customers' Autos and Other Customers' Property (Direct Primary Coverage) modifies the commercial property coverage form to provide physical damage coverage for property of others in the insured's care.

MS AS 05-Auto Service Risks-Loss or Damage to Lessors' Property modifies the commercial property coverage form to provide physical damage coverage for property of others the insured has leased.

MS AS 06-Auto Service Risks-Hired Auto and NonOwned Auto Liability Insurance

MS AS 07-Auto Service Risks-Mechanical Breakdown Coverage

MS AS DS-Auto Service Risks Supplemental Schedule

Listed below under the individual states are those that have approved the above revisions. The text will not be repeated but will refer back to the Countrywide section.

Changes Made by Individual States

ALABAMA

The Auto Service Risk Multistate Market Segment Line Of Business Program has been approved-refer to Countrywide section above. This change applies to all policies written on or after October 1, 1999.

ALASKA

The Auto Service Risk Multistate Market Segment Line Of Business Program has been approved-refer to Countrywide section above. This change applies to all policies written on or after October 1, 1999.

In reference to the Unfair Claim Practice Regulation 3 AAC 26.070 (a)(2), two commercial and farm endorsements have been amended and one new one developed to clarify that any portion of a claim that is not in dispute must be paid within 30 days. The amended endorsements are:

BP 0141-Alaska Changes

FP 0172-Alaska Changes

The new endorsement is IL 01 07-Alaska Changes-Loss Payment.

These changes apply to all policies written on or after July 1, 1999.

ARKANSAS

The Auto Service Risk Multistate Market Segment Line Of Business Program has been approved-refer to Countrywide section above. This change applies to all policies written on or after October 1,1999.

CALIFORNIA

The Auto Service Risk Multistate Market Segment Line Of Business

Program has been approved-refer to Countrywide section above. This change has been approved for use by ISO-filed insurers as of December 18,1998.

In response to the decision made in Cheeks vs. California Fair Plan Association, CalCtApp. No. B107786, two new endorsements have been developed and approved. This ruling determined that if a policy does not define actual cash value, it would mean fair market value. As a result, IL 01 03California Changes-Actual Cash Value (for commercial property, farm, boiler and machinery, inland marine and crime) and BP 0155California Changes-Actual Cash Value (for businessowners) are now available. These changes have been approved for use by ISO-filed insurers as of March 12, 1999.

The 1998 Commercial General Liability Multistate Forms Revisions have been approved in California for all ISO participating insurers. These revisions have been approved for use as of March 19, 1999.

Two new earthquake and volcanic eruption optional forms have been developed for commercial property The new endorsements are: CP 10 45Earthquake and Volcanic Eruption Endorsement (Sub-Limit Form) and CP 19 4-Earthquake-Volcanic Eruption Coverage Schedule. Use of these endorsements provides coverage on a no coinsurance, sub-limit basis, subject to an annual aggregate limit. Endorsement CP 10 39--Sprinkler Leakage Earthquake Extension has been withdrawn. Three additional commercial property endorsements have been revised to reflect the new options and other editorial corrections. They are:

CP 10 40-Causes of LossEarthquake Form

CP 10 41-Earthquake Inception Extension Endorsement

CP 0141-Additional Earthquake Coverage-California

Revisions have been approved for ISO participating insurers for use as of February 23, 1999.

COLORADO

The Auto Service Risk Multistate Market Segment Line Of Business Program has been approved-refer to Countrywide section above. This change carries an October 1999 distribution date.

CONNECTICUT

The 1998 General Liability Multistate Forms Revisions have been approved with state-specific endorsements including amendments. State-specific forms revised or added include: