ISO form and endorsement changes

Rough Notes, May 2001 by Hicks, Bruce

Approved by individual states, through March 2001

COUNTRYWIDE

Homeowners Form Changes

ISO has introduced the HO 2000 edition of its homeowners program, which will eventually replace the HO 91 program; it includes both revised and new forms. ISO has filed the program countrywide with the earliest proposed effective dates beginning in December 2000. The new program includes formatting changes to improve an insured's ability to read and understand the forms. (For more details on this change, please refer to the "PF&M Companion" in the July 2000 issue of Rough Notes magazine at http://www.roughnotes.com.)

Commercial liability program introduced

ISO has made a multistate change to its Commercial Program. Commercial umbrella liability coverage is now available for its participating companies to file independently. The program rules and forms are available effective November 1, 2000.

What follows is a list of individual states and which of the above changes each has approved. The text will not be repeated but will refer back to this Countrywide section.

Changes Made by Individual States

ALASKA

Commercial Auto-CA 21 60 04 01, Alaska Uninsured And Underinsured Motorists Coverage has been approved for use by all participating insurers for all policies written on or after May 1, 2001. The form was revised with several editorial changes, but the primary action was to amend the endorsement's arbitration provision, which now requires the consent of the insurer and the insured.

Businessowners, Commercial Property-BP 01 41 07 01, Alaska Changes and CP 01 55 07 01, Alaska Changes have been approved for use by all participating insurers for all policies written on or after July 1, 2001. The forms were revised in response to former S.B. 177. This bill amended the state's Insurance Consumers Protection Act. The change prohibits insurers from excluding a loss that is caused concurrently by an eligible and ineligible cause of loss if the eligible cause of loss was the primary contributor to the damage or loss.

CALIFORNIA

Commercial Auto-CA 21 54 04 01, California Uninsured Motorists Coverage - Bodily Injury has been approved effective December 20, 2000. It is now available for use by all participating insurers. The form was revised with several editorial changes primarily to clarify the definition of "you" which has been subject to increased interpretation by various courts. Those insurers adopting the use of the revised form are also required to submit a filing estimating the form's rate impact.

COLORADO

Personal Auto-PP 01 61 06 01, Amendment of Policy Provisions Colorado has been approved. It is now available for use by all participating insurers and it has a distribution date of June 2001. The form was revised in response to former HB 1027. Insurers are no longer allowed to cancel auto coverage based only on the fact that a license of a driver in the insured household has been revoked due to a conviction for defacing property.

DISTRICT OF COLUMBIA

Commercial Auto-CA 21 49 04 01, District of Columbia Uninsured Motorists Coverage endorsement has been approved for use by all participating insurers for all policies written on or after May 1, 2001. The form was revised in response to recent court interpretations of the term "you" which have, in ISO's opinion, led to unintended coverage. Several sections of the form that refer to "you" have been changed to clarify the parties intended to be covered.

GEORGIA

Commercial Auto-CA 21 11 04 01, Georgia Uninsured Motorists Coverage endorsement has been approved for use by all participating insurers for all policies written on or after May 1, 2001. The form was revised in response to recent court interpretations of the term "you" which have, in ISO's opinion, led to unintended coverage. Several sections of the form that refer to "you" have been changed to clarify the parties intended to be covered.

Crime And Fidelity-The multistate Crime and Fidelity Forms program with Georgia-specific provisions has been approved for use by participating companies for all policies effective on or after June 1, 2001. To accommodate writing this program, forms have been revised and introduced.

Revised Form

CR 01 32 03 00, Georgia Changes-- Concealment, Misrepresentation Or Fraud

New Form

CR 02 31 03 00, Georgia Changes

ILLINOIS

General Liability-CG 31 22 07 01, Illinois Changes - Liquor Liability endorsement has been approved for use by all participating insurers for all policies written on or after August 1, 2001. The form was revised in order to fully comply with the Illinois liquor liability statutes.

KENTUCKY

Commercial Auto-CA 21 76 04 01, Kentucky Uninsured Motorists Coverage; CA 21 79 04 01, Kentucky Underinsured Motorists Coverage; CA 21 35 04 01, Kentucky Split Uninsured Motorists Coverage Limits and CA 31 14 04 01 Kentucky Split Underinsured Motorists Coverage Limits endorsements have been approved for use by all participating insurers for all policies written on or after May 1, 2001. The endorsements were amended with several editorial changes. Further, the forms were revised in response to recent court interpretations of the term "you" which have, in ISO's opinion, led to unintended coverage. Several sections of the forms that refer to "you" have been changed to clarify the parties intended to be covered. Finally, the arbitration provisions of CA 21 76 04 01, Kentucky Uninsured Motorists Coverage and CA 21 79 04 01, Kentucky Underinsured Motorists Coverage were amended to require the consent of the insurer and the insured.