PF&M COMPANION
Approved by individual states, through August 2002
By Bruce Hicks, CLU, CPCU
Editor's note: The Countrywide changes in bureau forms and endorsements will continue to appear in the magazine as they have in the past. However, the list of individual states and which changes each has approved will now appear exclusively at the "PF&M Companion" link at the Rough Notes Web site: www.roughnotes.com.
COUNTRYWIDE
Businessowners
ISO has introduced a multi-state revision consisting of the introduction of the following forms:
BP 04 46 07 02 Ordinance Or Law Coverage Endorsement
BP 05 76 11 02 Limited Fungi Or Bacteria Coverage
BP 05 77 11 02 Fungi Or Bacteria Exclusion (Liability)
BP 05 78 11 02 Limited Fungi Or Bacteria Coverage (Liability)
These forms modify the coverage provided by the BP 00 03, Businessowners Coverage Form. BP 04 46 was revised to include a definition of "fungi," and to exclude law or ordinance loss triggered by or related to damage caused by fungi, mold or rot. BP 05 76 excludes property losses related to fungi or mold, except for the limited premises and business income loss protection indicated in the form's schedule as well as such damage that results from fire or lightning damage. BP 05 77 adds an exclusion against liability related to fungi or mold damage, except for limited circumstances such as accidental food poisoning. BP 05 78 adds an aggregate amount of coverage related to liability for mold damage under the BP 00 03's liability and medical coverages. These forms include a definition of "fungi." It also clarifies that, except for the limited coverage provided, no other coverage exists for losses related to fungi or mold, even costs associated with testing, monitoring, remediation, etc.
Commercial Automobile
ISO has introduced a multi-state revision consisting of the introduction of Form CA 20 78 09 02, Physical Damage Coverage - Autos Held For Sale by Non-Dealers and revisions to forms:
CA 99 10 10 01 Drive Other Car Coverage - Broadened Coverage For Named Individuals
CA 99 48 10 01 Pollution Liability - Broadened Coverage For Covered Autos - Business Auto, Motor Carrier, And Truckers Coverage Forms
CA 99 55 10 01 Pollution Liability - Broadened Coverage For Covered Autos - Garage Coverage Form
The DOC form was created to provide physical damage protection for cars held and sold by businesses that are covered by a CGL, but which don't have a constant auto exposure that justifies a Business Auto policy. The other forms contain editorial changes that, per ISO, clarify their coverage intent.
Crime And Fidelity
ISO has introduced a multi-state revision of its Crime and Fidelity Program. The changes follow a major revision that took effect in 2000. The highlight of the changes is their providing protection against an increasingly prevalent exposure, Kidnap/Ransom and Extortion. This coverage will be made available as part of a CPP or as a stand-alone (monoline) policy. Several coverage-specific exclusions apply, including barring of coverage for acts committed by insureds, losses involving military or political activity, indirect loss due to being detained from travels and loss connected to certain circumstances of surrendered property. Other program changes feature the following:
* Introduction of additional computer-related coverage, specifically for loss to electronically stored data including such data stolen by employees as well as a form for extending insured status to certain computer contractors
* Addition of new definitions and policy conditions to be used with kidnap/ransom coverage
* Revisions to most of the basic coverage forms, including switching coverage for Funds Transfer Fraud from an endorsement (CR 04 02) to an insuring agreement as well as a variety of changes to several exclusions, conditions and definitions
* Withdrawal of endorsements CR 04 02, Funds Transfer Fraud and CR 25 05, Include Leased Workers As Employees
* Extension of the program's forgery coverage to apply to electronic signatures (for specified documents)
There are a variety of other changes and many editorials to clarify coverage; the forms will all carry a 07 02 edition date.
ALABAMA
Commercial Auto--Form CA 21 59 12 02, Alabama Uninsured Motorists Coverage endorsement has been approved. The form was revised in light of the state's high court decision in Walker v. GuideOne Special Mut. Ins. Co. The court decided that state law was violated by any UM provision that required another party to corroborate an insured who reports an accident involving a hit and run (phantom) vehicle. The form is available for use by all participating insurers for all policies written on or after December 1, 2002.
Personal Auto--Form PP 04 31 12 02, Uninsured Motorists Coverage - Alabama endorsement has been approved. The form was revised in light of the state's high court decision in Walker v. GuideOne Special Mut. Ins. Co.
The court decided that state law was violated by any UM provision that required another party to corroborate an insured who reports an accident involving a hit and run (phantom) vehicle. The form is available for use by all participating insurers for all policies written on or after December 1, 2002.
ALASKA
Commercial Lines--The following forms have been approved:
* IL 01 21 10 02 Alaska Changes - Attorney's Fees
* IL 09 35 07 02 Exclusion Of Certain Computer Related Losses
The attorney fee form was revised to include reference to the Commercial Liability Umbrella Coverage Part. IL 09 35 was introduced to exclude coverage for losses involving computer and related equipment as a result of problems handling dates and times--in other words, Year 2000 type problems. The forms are available for use by all participating insurers for all policies written on or after October 1, 2002.
ARIZONA
Businessowners--The program changes referred to in the Countrywide section have been approved. The forms are available for use by all participating insurers for all policies written on or after November 1, 2002.
ARKANSAS
Businessowners--The program changes referred to in the Countrywide section have been approved. The forms are available for use by all participating insurers for all policies written on or after November 1, 2002.
COLORADO
Businessowners--The program changes referred to in the Countrywide section have been approved. The forms are available for use by interested insurers and have a distribution date of November 2002.
Commercial Lines--The following forms have been approved:
* IL 02 28 12 02 Colorado Changes - Cancellation And Nonrenewal
* BP 01 81 12 02 Colorado Changes
* CG 28 65 12 02 Colorado Changes - Cancellation And Nonrenewal
* CR 02 15 12 02 Colorado Changes
The forms were revised to reflect state law. Under the modified forms, insurers must provide at least 45 (rather than 30) days' notice of cancellation. This advance notice applies to any policy that has been in effect for less than 60 days. An exception allows shorter advanced cancel notice when nonpayment is the cancel reason. The forms are available for use by interested insurers and have a distribution date of December 2002.
DELAWARE
Businessowners--The program changes referred to in the Countrywide section have been approved. The forms are available for use by all participating insurers for all policies written on or after November 1, 2002.
DISTRICT OF COLUMBIA
Businessowners--The program changes referred to in the Countrywide section have been approved. The forms are available for use by all participating insurers for all policies written on or after November 1, 2002.
FLORIDA
Commercial Auto--Form CA 01 28 02 03, Florida Changes Endorsement has been approved. The revised form eliminates coverage for any real or perceived loss of market value that results from a covered loss. This is popularly referred to as diminution in value. A recent court case established that insurers were not obligated to consider diminished value. The form is available for use by all participating insurers for all policies written on or after February 1, 2003.
Personal Auto--Form PP 13 01 12 99, Coverage For Damage To Your Auto Exclusion Endorsement has been approved. The form changes the PAP so no coverage is provided for any real or perceived loss of market value that results from a covered loss. This is popularly referred to as diminution in value. A recent court case established that insurers were not obligated to consider diminished value. The form is available for use by all participating insurers for all policies written on or after December 1, 2002.
GEORGIA
Commercial Auto--The program changes referred to in the Countrywide section have been approved. The forms are available for use by all participating insurers for all policies written on or after October 1, 2002.
IDAHO
Businessowners--The program changes referred to in the Countrywide section have been approved. The forms are available for use by all participating insurers for all policies written on or after November 1, 2002.
ILLINOIS
Crime and Fidelity--The program changes referred to in the Countrywide section and state-specific Form CR 02 02 07 02, Illinois Changes have been approved. The forms are available for use by all participating insurers for all policies written on or after October 1, 2002.
INDIANA
Businessowners--The program changes referred to in the Countrywide section have been approved. The forms are available for use by all participating insurers for all policies written on or after November 1, 2002.
Commercial Automobile--ISO's multi-state forms filing introducing the following forms has been approved:
* CA 23 37 01 02 War, Military Action And Terrorism Exclusion
* CA 23 38 01 02 War, Military Action And Terrorism Exclusion - Garage Coverage Form
* CA 26 14 01 02 Amendment Of Single Interest Policy Provisions - War, Military Action And Terrorism
The forms are available for use by all participating insurers for all policies written on or after July 16, 2002.
Farm--Form FB 10 31 07 02, War Or Terrorism Exclusion Endorsement has been approved. The form prohibits coverage for loss involving war or terrorist acts. The form is available for use by all participating insurers for all policies written on or after December 1, 2002.
IOWA
Commercial Auto--The program changes referred to in the Countrywide section have been approved. The forms are available for use by all participating insurers for all policies written on or after October 1, 2002.
KANSAS
Dwelling Liability--Form DL 24 71 04 02, Limited Fungi, Wet or Dry Rot, or Bacteria Coverage has been approved. The form is available for use by all participating insurers for all policies written on or after January 1, 2003. DL 24 71 is an optional endorsement that provides limited liability coverage, on an aggregate basis, for loss related to mold, rot or bacteria.
Homeowners--The following ISO optional fungi or bacteria endorsements (which apply to different base coverage forms) have been approved for use by all participating insurers for all policies written on or after January 1, 2003:
* HO 04 26 04 02 Limited Fungi, Wet Or Dry Rot, Or Bacteria Coverage
* HO 04 27 04 02 Limited Fungi, Wet Or Dry Rot, Or Bacteria Coverage
* HO 04 28 04 02 Limited Fungi, Wet Or Dry Rot, Or Bacteria Coverage and Form HO 24 82 04 02, Personal Injury which was modified to excluded mold-related loss.
KENTUCKY
Businessowners--The program changes referred to in the Countrywide section have been approved. The forms are available for use by all participating insurers for all policies written on or after November 1, 2002.
MAINE
Businessowners--The program changes referred to in the Countrywide section have been approved. The forms are available for use by all participating insurers for all policies written on or after November 1, 2002.
MARYLAND
Personal Automobile--Form PP 03 76 12 02, Rating Information - Maryland Endorsement has been approved. The form provides policyholders with information on the elements that determine their premium. The form was revised to include a general reference to credit information being a possible factor. The form is available for use by all participating insurers for all policies written on or after December 1, 2002.
MICHIGAN
Businessowners--The program changes referred to in the Countrywide section have been approved. The forms are available for use by all participating insurers for all policies written on or after November 1, 2002.
MISSISSIPPI
Businessowners--The program changes referred to in the Countrywide section have been approved. The forms are available for use by all participating insurers for all policies written on or after November 1, 2002.
MINNESOTA
Commercial Lines--Form IL 09 35 07 01, Exclusion Of Certain Computer-Related Losses has been approved for use by all participating insurers for all policies written on or after November 1, 2002. IL 09 35 was introduced to exclude coverage for losses involving computer and related equipment as a result of problems in handling dates and times--in other words, Year 2000 type problems.
General Liability--ISO's multi-state introduction of updates to its general liability program have been approved. The General Liability changes are available for use by all participating insurers for all policies written on or after December 1, 2002.
MISSOURI
Commercial Property--ISO's multi-state filing introducing revisions related to the handling of electronic data, commerce transacted in cyberspace, mold and other items has been approved. The forms are available for use by all participating insurers for all policies written on or after October 1, 2002.
MONTANA
Businessowners--The program changes referred to in the Countrywide section have been approved. The forms are available for use by all participating insurers for all policies written on or after November 1, 2002.
NEBRASKA
Commercial Liability Umbrella, General Liability--ISO's multi-state introduction of optional Fungi or Bacteria endorsements and the Commercial Liability Umbrella Program has been approved for use by all participating insurers for all policies written on or after November 1, 2002.
Commercial Property--ISO's multi-state filing introducing revisions related to the handling of electronic data, commerce transacted in cyberspace, mold and other items has been approved. The forms are available for use by all participating insurers for all policies written on or after November 1, 2002.
Dwelling Liability--Form DL 24 71 04 02, Limited Fungi, Wet or Dry Rot, or Bacteria Coverage has been approved. The form is available for use by all participating insurers for all policies written on or after December 1, 2002. DL 24 71 is an optional endorsement that provides limited liability coverage, on an aggregate basis, for loss related to mold, rot or bacteria.
Farm--Form FB 10 31 07 02, War Or Terrorism Exclusion Endorsement has been approved. The form prohibits coverage for loss involving war or terrorist acts. The form is available for use by all participating insurers for all policies written on or after October 1, 2002.
Homeowners--The following ISO optional Fungi or Bacteria endorsements (which apply to different base coverage forms) have been approved for use by all participating insurers for all policies written on or after December 1, 2002:
* HO 04 26 04 02 Limited Fungi, Wet Or Dry Rot, Or Bacteria Coverage
* HO 04 27 04 02 Limited Fungi, Wet Or Dry Rot, Or Bacteria Coverage
* HO 04 28 04 02 Limited Fungi, Wet Or Dry Rot, Or Bacteria Coverage and Form HO 24 82 04 02, Personal Injury which was modified to exclude mold-related loss.
NEVADA
Businessowners--The program changes referred to in the Countrywide section have been approved. The forms are available for use by all participating insurers for all policies written on or after November 1, 2002.
NEW HAMPSHIRE
Businessowners--The program changes referred to in the Countrywide section have been approved. The forms are available for use by all participating insurers for all policies written on or after November 1, 2002.
NEW JERSEY
Dwelling Liability--Forms DL 24 71 04 02, Limited Fungi, Wet or Dry Rot, or Bacteria Coverage, and DL 25 29 05 02, Special Provisions - New Jersey have been approved. The forms are available for use by all participating insurers for all policies written on or after December 1, 2002. DL 24 71 is an optional endorsement that provides limited liability coverage, on an aggregate basis, for loss related to mold, rot or bacteria. DL 25 29 was modified so that it could be used when DL 24 71 is attached to the Dwelling Liability form.
Homeowners--The following ISO optional Fungi or Bacteria endorsements (which apply to different base coverage forms) have been approved for use by all participating insurers for all policies written on or after December 1, 2002:
* HO 04 31 04 02 Limited Fungi, Wet Or Dry Rot, Or Bacteria Coverage
* HO 04 32 04 02 Limited Fungi, Wet Or Dry Rot, Or Bacteria Coverage
* HO 04 33 04 02 Limited Fungi, Wet Or Dry Rot, Or Bacteria and form HO 01 29 05 02, Special Provisions - New Jersey.
NEW MEXICO
Commercial Auto--The program changes referred to in the Countrywide section have been approved. The forms are available for use by all participating insurers for all policies written on or after October 1, 2002.
NORTH CAROLINA
Businessowners--The program changes referred to in the Countrywide section have been approved. The forms are available for use by all participating insurers for all policies written on or after January 1, 2003.
NORTH DAKOTA
Businessowners--The program changes referred to in the Countrywide section have been approved. The forms are available for use by all participating insurers for all policies written on or after November 1, 2002.
OHIO
Businessowners--The program changes referred to in the Countrywide section have been approved. The forms are available for use by all participating insurers for all policies written on or after November 1, 2002.
Farm--Form FB 10 31 07 02, War Or Terrorism Exclusion Endorsement has been approved. The form prohibits coverage for loss involving war or terrorist acts. The form is available for use by all participating insurers for all policies written on or after October 1, 2002.
OREGON
Businessowners--The program changes referred to in the Countrywide section have been approved. The forms are available for use by all participating insurers for all policies written on or after November 1, 2002.
PENNSYLVANIA
Businessowners--The program changes referred to in the Countrywide section have been approved. The forms are available for use by all participating insurers for all policies written on or after November 1, 2002.
SOUTH CAROLINA
Businessowners--The program changes referred to in the Countrywide section have been approved. The forms are available for use by all participating insurers for all policies written on or after December 1, 2002.
Commercial Auto--The program changes referred to in the Countrywide section have been approved. The forms are available for use by all participating insurers for all policies written on or after October 1, 2002.
SOUTH DAKOTA
Businessowners--The program changes referred to in the Countrywide section have been approved. The forms are available for use by all participating insurers for all policies written on or after November 1, 2002.
TENNESSEE
Businessowners--The program changes referred to in the Countrywide section have been approved. The forms are available for use by all participating insurers for all policies written on or after November 1, 2002.
TEXAS
Crime and Fidelity--The program changes referred to in the Countrywide section and state-specific Form CR 02 47 02 03, Texas changes have been approved. The forms are available for use with a distribution date of February 2003. Interested insurers must make their own filing, making sure to comply with the state's forms and rules requirements.
General Liability--ISO's multi-state introduction of optional Fungi or Bacteria endorsements has been approved. The forms will be available with a distribution date of October 2002 for eligible interested insurers. However, to qualify for use of the forms, an individual company must indicate in writing that their use will not result in loss of coverage for water damage that was previously available.
Homeowners--ISO's multi-state forms filings introducing their 2000 edition program have been approved. The forms are available for use. Interested insurers must make their own filing, making sure to comply with the state's forms and rules requirements. (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.)
U.S. VIRGIN ISLANDS
Commercial Liability Umbrella, General Liability--ISO's multi-state introduction of optional Fungi or Bacteria endorsements and the Commercial Liability Umbrella Program have been approved for use. Interested insurers must make their own filing (and effective date) requesting permission to use the new forms.
UTAH
Businessowners--The program changes referred to in the Countrywide section have been approved. The forms are available for use by all participating insurers for all policies written on or after November 1, 2002.
VIRGINIA
Boiler and Machinery, Commercial Property, Commercial Inland Marine, Crime And Fidelity, Farm and General Liability--Form IL 01 52 11 02, Virginia Changes has been approved. The form was changed so that it no longer references termination provisions that previously were duplicated in other forms. The form is available for use by all participating insurers for all policies written on or after December 1, 2002.
Businessowners--The program changes referred to in the Countrywide section have been approved. The forms are available for use by all participating insurers for all policies written on or after December 1, 2002.
Commercial Property--ISO's multi-state filing introducing their 2000 edition revisions and the following state-specific forms have been approved:
* CP 01 30 08 02 Virginia Changes
* CP 04 40 08 02 Spoilage Coverage
The forms are available for use by all participating insurers for all policies written on or after December 1, 2002.
General Liability--ISO's multi-state introduction of optional fungi or bacteria endorsements has been approved. The forms will be available use by all participating insurers for all policies written on or after September 1, 2002.
WEST VIRGINIA
Businessowners--The program changes referred to in the Countrywide section have been approved. The forms are available for use by all participating insurers for all policies written on or after November 1, 2002.
WISCONSIN
Businessowners--The program changes referred to in the Countrywide section have been approved. The forms are available for use by all participating insurers for all policies written on or after November 1, 2002.
WYOMING
Businessowners--The program changes referred to in the Countrywide section have been approved. The forms are available for use by all participating insurers for all policies written on or after November 1, 2002. *