PF&M COMPANION
Approved by individual states, through December 2001
By Bruce Hicks, CLU, CPCU
COUNTRYWIDE
ISO
Commercial Liability Umbrella Changes
A set of new multistate forms and other changes have been introduced for use with ISO's Commercial Liability Umbrella Program. The policy changes were made to several definitions and exclusions to acknowledge the exposures presented by Web sites and electronic publishing, as well as to clarify the property status of electronic data and the insured status of trusts and volunteer workers and a variety of editorial changes. For additional information, please refer to the "PF&M Companion" in the October 2001 issue of Rough Notes magazine.
Farm Changes
ISO has filed a multistate revision of endorsements applicable to the Farm Program. It has revised FL 04 44 12 01, Coverage For Physical Injury To Crops And Animals Due To Certain Crop Dusting Operations Performed By Licensed Independent Contractor By Aircraft (Limited Crop Dusting Coverage); FL 04 65 12 01, Farm Employers Liability And Farm Employees Medical Payments Insurance; and FL 04 69 12 01, Custom Farming Liability Coverage. The changes are to comply with the National Association of Insurance Commissioners (NAIC) Statement of Statutory Accounting Principle no.6. The principle requires that the due date for either audit or retrospective premiums must be referenced in a policy form. If it is not, any uncollected premium must be classified as nonadmitted premium income. These forms amend the applicable policy condition on audits by adding wording to the effect that any advance premium amount is a deposit, which will be verified by auditing at the end of each policy period. If additional premium is owed, the due date on any bill is the due date for paying audit premiums.
Commercial Lines Changes
ISO has introduced a new multistate endorsement. Form IL 09 35 07 01, Exclusion Of Certain Computer-related Losses changes coverage under the Commercial Crime, Commercial Inland Marine, Commercial Property coverage parts and the Standard Property Policy. Specifically, it bars coverage for computer hardware, application software, operating systems/software, networks, computer chips and other computer components that are adversely affected by not being able to process certain dates or times. This is a remainder item stemming from the Y2K problem.
General Liability Program Changes
In August 2001, ISO filed a multistate revision of endorsements applicable to the General Liability Program. The revisions include the introduction of CG 04 37 02 02, Electronic Data Liability Endorsement. This form provides an option to cover electronic data by adding a definition for the term and by modifying the property damage definition to include electronic data. The form clarifies that electronic data are considered to be intangible property. Also, there are several editorial clarifications to the following:
CG 04 28 02 02 Pollution Exclusion--Named Peril Limited Exception for a Short-Term Pollution Event
CG 04 29 02 02 Pollution Exclusion--Limited Exception for a Short-Term Pollution Event
CG 04 35 02 02 Employee Benefits Liability Coverage
CG 27 15 02 02 Extended Reporting Period Endorsement For Employee Benefits Liability Coverage
Employment Related Practices Changes
ISO's recent changes to this program primarily involve clarifications to the:
* EP 00 01 Insuring Agreement
* "Violation Of Laws Applicable To Employers" exclusion
* Criminal, Fraudulent and Malicious Acts exclusion
The changes also include some coverage enhancements and editorial changes. For additional information, please refer to the "PF&M Companion" in the October 2001 issue of Rough Notes magazine.
What follows is a list of individual states and which of the above changes each has approved involving ISO forms and programs. The text will not be repeated but will refer back to this Countrywide section.
ALABAMA
Commercial Auto--Form CA 21 59 01 02, Alabama Uninsured Motorists Coverage has been approved for use by all participating insurers for all policies written on or after February 1, 2002. The form was changed to conform with a state Supreme Court decision reached in Omin Ins. Co. v. Foreman that permits recovery of punitive damages.
General Liability--The program changes referred to in the Countrywide section have been approved for use by all participating insurers for all policies written on or after February 1, 2002.
Personal Auto--Form PP 04 31 01 02, Uninsured Motorists Coverage--Alabama has been approved for use by all participating insurers for all policies written on or after February 1, 2002. The form was changed to conform with a state Supreme Court decision reached in Omin Ins. Co. v. Foreman that permits recovery of punitive damages.
ALASKA
Dwelling Liability--Form DL 01 54 12 01, Alaska Special Provisions has been approved for use by all participating insurers for all policies written on or after January 1, 2002. The form was changed so that the form's policy termination provisions properly reflect the intent of Alaska Statutes.
General Liability--The program changes referred to in the Countrywide section have been approved for use by all participating insurers for all policies written on or after February 1, 2002.
ARIZONA
Commercial Liability Umbrella--The program changes referred to in the Countrywide section have been approved for use by all participating insurers for all policies written on or after March 1, 2002.
Farm--The program changes referred to in the Countrywide section have been approved for use by all participating insurers for all policies written on or after March 1, 2002.
General Liability--The program changes referred to in the Countrywide section have been approved for use by all participating insurers for all policies written on or after March 1, 2002.
ARKANSAS
Commercial Auto--Form CA 01 62 02 02, Arkansas Changes has been approved for use by all participating insurers for all policies written on or after February 1, 2002. The form was changed to comply with state law concerning how auto dealerships are to be handled when they are insureds under the policy.
General Liability--The program changes referred to in the Countrywide section have been approved for use by all participating insurers for all policies written on or after February 1, 2002.
CALIFORNIA
Commercial Lines--ISO has revised IL 09 35 07 01, Exclusion Of Certain Computer-related Losses to delete the reference to the Boiler & Machinery Coverage Part. It has been approved and is available for use by insurers as of January 29, 2001.
Employment Related Practices Liability--The program changes referred to in the Countrywide section have been approved and are available for use by insurers as of March 12, 2001.
Farm--The program changes referred to in the Countrywide section (except for inapplicable Form FL 04 65 12 01, Farm Employers Liability And Farm Employees Medical Payments Insurance) have been approved and are available for use by insurers as of November 14, 2001.
General Liability--The program changes referred to in the Countrywide section have been approved and are available for use by insurers as of October 8, 2001.
Personal Auto--Form PP 04 87 02 02, Uninsured Motorists Coverage--California has been approved and is available for use by insurers with an 02 02 edition date. The form was changed in response to state law which allows for payment under this coverage part, even when the damage results from the use of a covered car in a criminal activity by persons who are operating the car without an insured's permission.
COLORADO
General Liability--The program changes referred to in the Countrywide section have been approved for use and are available for use with a February 1, 2002 distribution date.
CONNECTICUT
Farm--The program changes referred to in the Countrywide section (except for inapplicable Form FL 04 65 12 01, Farm Employers Liability And Farm Employees Medical Payments Insurance) have been approved for use by all participating insurers for all policies written on or after April 1, 2002.
DELAWARE
General Liability--The program changes referred to in the Countrywide section have been approved for use by all participating insurers for all policies written on or after February 1, 2002.
Personal Auto--Form PP 03 77 01 02, Rating Information--Delaware has been approved for use by all participating insurers for all policies written on or after January 1, 2002. The form was changed to delete the reference to the ISO Performance Vehicle Surcharge Program's performance classes.
DISTRICT OF COLUMBIA
Commercial Liability Umbrella--The program changes referred to in the Countrywide section have been approved for use by all participating insurers for all policies written on or after March 1, 2002.
General Liability--The program changes referred to in the Countrywide section have been approved for use by all participating insurers for all policies written on or after March 1, 2002.
GEORGIA
Commercial Liability Umbrella--The program changes referred to in the Countrywide section have been approved for use by all participating insurers for all policies written on or after April 1, 2002.
Farm--The program changes referred to in the Countrywide section have been approved for use by all participating insurers for all policies written on or after February 1, 2002.
General Liability--The program changes referred to in the Countrywide section have been approved for use by all participating insurers for all policies written on or after April 1, 2002.
IDAHO
General Liability--The program changes referred to in the Countrywide section have been approved for use by all participating insurers for all policies written on or after February 1, 2002.
ILLINOIS
Commercial Auto--Forms CA 21 30 04 01, Illinois Uninsured Motorists Coverage and CA 21 38 04 01, Illinois Underinsured Motorists Coverage have been approved for use by all participating insurers for all policies written on or after April 1, 2002. The forms were changed to address several concerns of the state insurance department regarding arbitration and identifying precisely who is an insured.
General Liability--The program changes referred to in the Countrywide section have been approved for use by all participating insurers for all policies written on or after February 1, 2002.
INDIANA
General Liability--The program changes referred to in the Countrywide section have been approved for use by all participating insurers for all policies written on or after February 1, 2002.
IOWA
General Liability--The program changes referred to in the Countrywide section have been approved for use by all participating insurers for all policies written on or after February 1, 2002.
KANSAS
General Liability--The program changes referred to in the Countrywide section have been approved for use by all participating insurers for all policies written on or after February 1, 2002.
KENTUCKY
General Liability--The program changes referred to in the Countrywide section have been approved for use by all participating insurers for all policies written on or after February 1, 2002.
LOUISIANA
Commercial Lines--The following forms have been approved for use by all participating insurers for all policies written on or after July 1, 2002:
IL 02 77 07 02 Louisiana Changes--Cancellation and Nonrenewal
CG 29 38 07 02 Louisiana Changes--Cancellation and Nonrenewal (OCP)
CG 29 39 07 02 Louisiana Changes--Cancellation and Nonrenewal (Railroad)
CG 30 19 07 02 Louisiana Changes--Cancellation and Nonrenewal (UST)
BP 01 30 07 02 Louisiana Changes
The revised forms comply with state law and an insurance department request. The termination provisions now show that, except for nonpayment of premium, any cancel notice must be delivered or mailed, with at least 30 days' advance notice, to any known person having an insurable interest in the insured property.
MAINE
General Liability--The program changes referred to in the Countrywide section have been approved for use by all participating insurers for all policies written on or after February 1, 2002.
MARYLAND
Commercial Auto--Form CA 21 13 04 01, Maryland Uninsured Motorists Coverage has been approved for use by all participating insurers for all policies written on or after April 1, 2002. The form was changed to clarify "insureds," to add an off-set provision to the workers comp portion of the form and to add another specification on how property damage coverage applies.
Personal Auto--Forms PP 04 59 01 02, Uninsured Motorists Coverage--Maryland and PP 05 81 01 02, Personal Injury Protection Coverage--Maryland have been approved for use by all participating insurers for all policies written on or after February 1, 2002. The forms were changed to respond to state law, providing options to increase PIP limits and off-sets for benefits received from other sources.
--Form PP 03 76 01 02, Rating Information--Maryland has been approved for use by all participating insurers for all policies written on or after January 1, 2002. The form was changed to remove the reference to ISO's performance class vehicles and to change the meaning of one of the digits in the classification code.
MASSACHUSETTS
General Liability--The program changes referred to in the Countrywide section have been approved for use by all participating insurers for all policies written on or after February 1, 2002.
MICHIGAN
General Liability--The program changes referred to in the Countrywide section have been approved for use by all participating insurers for all policies written on or after February 1, 2002.
MISSOURI
Dwelling Liability--Form DL 98 50 03 02, Personal Umbrella Liability Policy Amendment Of Policy Provisions--Missouri has been approved for use and is available to insurers with an edition date of March 2002. The form was changed to include a reference to the Missouri Property and Casualty Insurance Guaranty Association Act.
General Liability--The program changes referred to in the Countrywide section have been approved for use by all participating insurers for all policies written on or after February 1, 2002.
NEBRASKA
General Liability--The program changes referred to in the Countrywide section have been approved for use by all participating insurers for all policies written on or after February 1, 2002.
NEVADA
General Liability--The program changes referred to in the Countrywide section have been approved for use by all participating insurers for all policies written on or after February 1, 2002.
NEW HAMPSHIRE
General Liability--The program changes referred to in the Countrywide section have been approved for use by all participating insurers for all policies written on or after February 1, 2002.
NEW JERSEY
Dwelling Liability--Form DL 98 54 06 98, Personal Umbrella Liability Policy Amendment Of Policy Provisions--New Jersey and DL 98 21 06 98, Personal Umbrella Liability Policy Exclusion--Lead Hazards in Connection With Designated Premises Endorsement--New Jersey have been approved for use with a June 1998 edition date. Interested insurers must separately file these forms. The forms were changed to address state authority concerns with the original program's fuel/lead and sexual molestation exclusions. Also, DL 98 11 06 98, Personal Umbrella Liability Policy Auto Liability Exclusion Endorsement was withdrawn because it was interpreted to be in conflict with the state's financial responsibility law.
General Liability--The program changes referred to in the Countrywide section have been approved for use by all participating insurers for all policies written on or after February 1, 2002.
NEW MEXICO
General Liability--The program changes referred to in the Countrywide section have been approved for use by all participating insurers for all policies written on or after February 1, 2002.
NEW YORK
The following Commercial Auto Forms remain unchanged because the recently announced filing has been withdrawn:
CA 22 32 09 01 New York Mandatory Personal Injury Protection Endorsement
CA 22 33 09 01 Additional Personal Injury Protection (New York)
CA 22 48 09 01 New York Mandatory Personal Injury Protection Endorsement--Motorcycles
Homeowners--Form HO 01 31 02 02, New York Homeowners Special Provisions Endorsement has been approved for use by all participating insurers for all policies written on or after February 1, 2002. The form was changed to correct the reference from a couple of multistate forms to the applicable state-specific forms.
NORTH DAKOTA
General Liability--The program changes referred to in the Countrywide section have been approved for use by all participating insurers for all policies written on or after February 1, 2002.
OHIO
General Liability--The program changes referred to in the Countrywide section have been approved for use by all participating insurers for all policies written on or after February 1, 2002.
OKLAHOMA
Commercial Liability Umbrella--The program changes referred to in the Countrywide section have been approved for use by all participating insurers for all policies written on or after March 1, 2002.
The following Commercial Lines forms have been approved for use
by all participating insurers for
all policies written on or after
February 1, 2002:
BP 02 18 01 02 Oklahoma Changes--Cancellation And Nonrenewal
IL 02 36 01 02 Oklahoma Changes--Cancellation And Nonrenewal
CG 29 33 01 02 Oklahoma Changes--Cancellation And Nonrenewal
CG 29 34 01 02 Oklahoma Changes--Cancellation And Nonrenewal
CG 30 40 01 02 Oklahoma Changes--Cancellation And Nonrenewal
CR 02 17 01 02 Oklahoma Changes
The forms were amended to clarify the procedures to follow for sending termination notices.
General Liability--The program changes referred to in the Countrywide section have been approved for use by all participating insurers for all policies written on or after March 1, 2002.
Personal Auto--Form PP 01 71 02 02, Amendment of Policy Provisions--Oklahoma has been approved for use by all participating insurers for all policies written on or after February 1, 2002. The form was changed to conform with the state's requirement concerning the applicability of actual cash value settlements.
OREGON
General Liability--The program changes referred to in the Countrywide section have been approved for use by all participating insurers for all policies written on or after February 1, 2002.
PENNSYLVANIA
General Liability--The program changes referred to in the Countrywide section have been approved for use by all participating insurers for all policies written on or after February 1, 2002.
RHODE ISLAND
General Liability--The program changes referred to in the Countrywide section have been approved for use by all participating insurers for all policies written on or after February 1, 2002.
SOUTH CAROLINA
Commercial Liability Umbrella--The program changes referred to in the Countrywide section have been approved for use by all participating insurers for all policies written on or after March 1, 2002.
General Liability--The program changes referred to in the Countrywide section have been approved for use by all participating insurers for all policies written on or after March 1, 2002.
SOUTH DAKOTA
General Liability--The program changes referred to in the Countrywide section have been approved for use by all participating insurers for all policies written on or after February 1, 2002.
TENNESSEE
General Liability--The program changes referred to in the Countrywide section have been approved for use by all participating insurers for all policies written on or after February 1, 2002.
Homeowners--Form HO 01 41 11 99, Special Provisions--Tennessee has finally been approved for use by all participating insurers for all policies written on or after March 1, 2002. The form was changed to clarify the applicability of collapse and earth movement provisions.
UTAH
General Liability--The program changes referred to in the Countrywide section have been approved for use by all participating insurers for all policies written on or after February 1, 2002.
VIRGINIA
Farm--The program changes referred to in the Countrywide section have been approved for use by all participating insurers for all policies written on or after May 1, 2002.
Personal Auto--Form PP 03 70 01 02, Rating Information--Virginia has been approved for use by insurers by all participating insurers for all policies written on or after January 1, 2002. The form was changed to delete the reference to the ISO Performance Vehicle Surcharge Program's performance classes.
VIRGIN ISLANDS
General Liability--The program changes referred to in the Countrywide section have been approved for use and are available for use with a February 1, 2002 distribution date.
WASHINGTON
General Liability--The program changes referred to in the Countrywide section have been approved for use by all participating insurers for all policies written on or after February 1, 2002.
WEST VIRGINIA
General Liability--The program changes referred to in the Countrywide section have been approved for use by all participating insurers for all policies written on or after February 1, 2002.
WISCONSIN
General Liability--The program changes referred to in the Countrywide section have been approved for use by all participating insurers for all policies written on or after February 1, 2002.
WYOMING
General Liability--The program changes referred to in the Countrywide section have been approved for use by all participating insurers for all policies written on or after February 1, 2002. *