Farm Auto and Equipment Exposures SD

Report
FARM AUTO AND EQUIPMENT
EXPOSURES
THE ISSUES
THE ISSUES
• Road and visibility conditions
• Vehicle and agricultural equipment features (type and size,
speed, machine or animal, lighting, marking, braking, tires,
steering)
• Environmental conditions (time of day, weather)
• Victims (other vehicles, operators, riders)
• Age and experience of operators (seasoned, youthful and other
unlicensed operators)
• Restrictions and exemptions from motor vehicle laws
• Transportation of hazardous materials
• Interaction with other vehicles
Less than 1% of the nation’s fatal traffic collisions involve
agricultural equipment according to NHTSA, however…
THE ISSUES
• Rural / Urban Traffic Interface – the mixture of
farm equipment with faster moving motor vehicles
on public roadways
• Federal and State Regulations – bewildering
array of state vehicle code regulations with
different definitions and requirements for vehicles
and drivers
• Higher Speed Tractors – Increasing speed
relates to maneuverability, steering, breaking and
towing
• Transportation of Workers – in, on and behind
vehicles
EXPLORING INSURANCE OPTIONS
FARM v. PERSONAL v. COMMERCIAL
FLCF
PAP
BACF
No $
Less $
More $
Got
Coverage?
Got
Coverage?
Got
Coverage?
TO MAKE MATTERS WORSE
If you are using a CGL, you
also have some coverage for
some vehicles under the
definition of
“Mobile Equipment”!
WHAT’S THE RIGHT ANSWER?
Use a true Risk Management approach to match the
clients’ needs to the coverage provided!
SOUTH DAKOTA LAW
The following do not come within the definition of "motor carriers" or "commercial vehicles" when used in
intrastate operations.
1.
2.
3.
4.
5.
A motor vehicle chassis registered in South Dakota on which is mounted a corn sheller, grain
cleaner, feed grinder, grain and alfalfa feed mixing machine, haystack mover, sawmill, water
well drilling equipment, power shovel, ditch digger, mobile crane which exceeds the maximum
size or weight limits prescribed by chapter 32-22, drag line, posthole auger, and which is not
used for demonstration or display purposes outside the limits of a municipality, or a truck
tractor and trailer carrying permanently mounted hay grinding equipment.
Any motor vehicle registered in South Dakota used for the transportation of liquid or solid
livestock waste (including trailers and equipment used to load liquid or solid livestock waste)
and any vehicle registered in South Dakota used for the application, distribution, spraying or
transportation from retail business to user of dry, liquid or anhydrous ammonia fertilizers or
agricultural chemicals.
A motor vehicle registered in South Dakota owned by a farmer of this state and used by or for
the farmer to transport property for his farming operation, to transport farm property from
farm to farm or from a community or market to his farm or from his farm to a community or
market, to transport livestock in a vehicle that is registered at 26,000 pounds or less and
when hauling for no monetary compensation or to transport farm property when the vehicles
are used as reimbursement in the ordinary exchange of farm work if the provisions of § 4928-8.2 are met.
Except as provided in § 32-9-3.3, any motor vehicle, trailer, semitrailer, motor propelled or
trailed vehicle chassis registered in South Dakota, which is used for highway construction or
for the construction of stock water dugouts, dams, farm and ranch irrigation systems or other
soil and water conservation projects on farms and ranches and used exclusively on the job
site. Such equipment may be moved between job sites or from job site to a central location.
Any motor vehicle used by an implement dealer to transport farm machinery to and from a
county fair or the state fair.
COVERAGE FOR FARM VEHICLES
• Coverage for “autos”
• Coverage for “mobile equipment”
• Coverage for farm vehicles other than “autos”
and “mobile equipment”
All autos are vehicles, but not all vehicles are
autos!
V-10
COVERAGE FOR VEHICLES
UNDER FL 00 20
• Liability for farm vehicles under the CGL
coverage form is essentially identical for
farming operations as for other commercial
operations
• Under the Farm Liability Coverage Form,
however, the effort to provide personal
liability coverage along with the coverage
on farming operations creates coverage
features that have no counterparts in the
CGL
V-11
e. Aircraft, Motor Vehicle, Motorized
Bicycle or Tricycle Exclusion
• "Bodily injury" or "property damage"
(1) Arising out of ownership, maintenance, use or
entrustment to others of any aircraft, "motor
vehicle," motorized bicycle or tricycle owned
or operated by or rented or loaned to any
"insured." Use includes operation and
"loading or unloading”; or
(2) Giving rise to vicarious liability, whether or not
imposed by law, for the actions of a child or
minor involving any aircraft, “motor vehicle”,
motorized bicycle or tricycle.
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e. Aircraft, Motor Vehicle, Motorized
Bicycle or Tricycle Exclusion
This exclusion applies even if the claims against
any “insured” allege negligence or other
wrongdoing in the supervision, hiring,
employment, training or monitoring of other by that
“insured”, if the “occurrence” that caused the
“bodily injury” or “property damage” involved the
ownership, maintenance, use, or entrustment to
others of any aircraft, “motor vehicle”, motorized
bicycle or tricycle that is owned or operated by or
rented or loaned to any “insured”.
V-13
e. Aircraft, Motor Vehicle, Motorized
Bicycle or Tricycle Exclusion
• The exclusion then recites four
exceptions, making the exclusion
inapplicable to certain situations.
• Before turning to an examination of
the four exceptions to the exclusion,
let us examine more closely the
specific types of vehicles that are
excluded.
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e. Aircraft, Motor Vehicle, Motorized
Bicycle or Tricycle Exclusion
• The exclusion cites three types of
vehicles as being excluded”
– “motor vehicles”
– motorized bicycles and
– motorized tricycles
• There is also a fourth type
– recreational motor vehicles are also
excluded under certain circumstances.
V-15
16. "Motor Vehicle“ - Definition
a. As used in this Coverage Form, the term
“motor vehicle" means:
(1) A motorized land vehicle, trailer or
semitrailer:
(a) Designed for travel on public roads, or
(b) Used on public roads;
unless it qualifies as "mobile equipment";
(2) Any machinery or equipment attached to a
vehicle, trailer or semitrailer included in
Paragraph (1) above;
V-16
16. "Motor Vehicle“ - Definition
(3)A motorized golf cart, except a golf cart
described in Paragraph b.(3) below,
snowmobile or other motorized land
vehicle owned by an "insured" and
designed for recreational use off public
roads, while off an "insured location";
(4)Any other land vehicle that is subject to a
compulsory or financial responsibility law
or other motor vehicle insurance law
where it is licensed or principally garaged.
V-17
16. "Motor Vehicle“ - Definition
(5) Any vehicle, including any attached
machinery or equipment, while being
towed by or carried on a vehicle included
in Paragraph (1), (2) or (3) or (4) above.
V-18
16. "Motor Vehicle“ - Definition
b. However, "motor vehicle" does not
mean:
(1) "Mobile equipment";
(2) A boat, camp trailer, home trailer or utility
trailer unless it is being towed by or
carried on a motorized land vehicle
included in a.(1) above; or
V-19
16. "Motor Vehicle“ - Definition
(3) A motorized golf cart owned by an “insured”,
designed to carry up to 4 persons, not built or
modified after manufacture to exceed a speed
of 25 miles per hour on level ground, and that
at the time of an “occurrence” is within the legal
boundaries of:
(a) A golfing facility…
(b) A private residential community…
V-20
15. “Mobile Equipment” Definition
15. "Mobile equipment" means the
following, including any attached machinery
or equipment:
a. Bulldozers, forklifts and tractors designed
for use principally off public roads;
Other farm machinery designed for use:
(1) Principally off public roads; and
(2) As implements for cultivating or
harvesting;
V-21
15. “Mobile Equipment” Definition
b. Vehicles while on premises you own or
rent;
c. Vehicles that travel on crawler treads,
except that snowmobiles are "mobile
equipment" only while on an "insured
location" or any premises you own or rent.
d. Vehicles, whether self-propelled or not, on
which are permanently mounted:
(1) Power cranes, shovels, loaders,
diggers or drills; or
(2) Road construction or resurfacing
equipment such as graders, scrapers
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or rollers;
15. “Mobile Equipment” Definition
e. Vehicles not described in Paragraphs a., b.,
c. or d. above that are not self-propelled and
are maintained primarily to provide mobility
to permanently attached equipment of the
following types:
(1) Air compressors, pumps and generators,
including spraying, welding, building
cleaning, geophysical exploration,
lighting and well servicing equipment; or
(2) Cherry pickers and similar devices used
to raise or lower workers;
V-23
15. “Mobile Equipment” Definition
f. Vehicles not described in Paragraphs a., b.,
c. or d. above that are maintained primarily
for purposes other than the transportation of
persons or cargo.
However, self-propelled vehicles with the
following types of permanently attached
equipment are not "mobile equipment" but
will be considered "motor vehicles":
V-24
15. “Mobile Equipment” Definition
(1)
Equipment designed primarily for:
(a) Road maintenance, but not construction or
resurfacing; or
(b) Street cleaning;
(2) Cherry pickers and similar devices mounted on
automobile or truck chassis and used to raise or
lower workers; and
(3) Air compressors, pumps and generators, including
spraying, welding, building cleaning, geophysical
exploration, lighting and well servicing equipment.
V-25
15. “Mobile Equipment” Definition
However, “mobile equipment” does not
include any land vehicles that are subject to
a compulsory or financial responsibility or
other motor vehicle insurance law where
they are licensed or principally garaged.
Land vehicles subject to compulsory or
financial responsibility law or other motor
vehicle insurance law are considered “motor
vehicles”.
V-26
Exceptions to Motor Vehicle
Exclusion
This exclusion does not apply to:
(a) An aircraft that causes "bodily injury" or.
“property damage" to a "residence employee"
who is not operating or maintaining it;
(b) Parking a "motor vehicle" or motorized bicycle
or tricycle on, or on the ways next to,
premises you own or rent, provided the
"motor vehicle" is not owned by, or rented or
loaned to you or the "insured";
V-27
Exceptions to Motor Vehicle
Exclusion
(c) A "motor vehicle" not subject to motor
vehicle registration
(i) by reason of its exclusive use as a device
for assisting the handicapped; or
(ii) Designed for recreational use off public
roads and not owned by any “insured”;
V-28
Exceptions to Motor Vehicle
Exclusion
d.
“Bodily injury” or “property damage” arising out of:
(i)
The operation of machinery or equipment that is
attached to, or part of, a land vehicle that would
qualify under the definition of “mobile equipment” if
it were not subject to a compulsory or financial
responsibility law or other motor vehicle insurance
law where it is licensed or principally garaged; or
(ii) The operation of any of the machinery or
equipment listed in Paragraph f.(2) or f.(3) of the
definition of "mobile equipment" (Section IV);
V-29
• CPL Form EXCLUDES
– Owned & Nonowned “motor
vehicles” on and away from
the premises
• CGL Form Excludes
– Owned & Nonowned Motor
Vehicles on and away from
the premises
– Owned RMVs off-premises
– Motorized bicycles and
tricycles on and off
premises
• CPL COVERS
– Mobile equipment on and
off-premises
– Owned RMV while on
premises
– Nonowned RMVs on and
off premises.
• CGL Form COVERS
– Mobile equipment on and
off-premises
– Owned RMV on an off
premises
– Nonowned RMVs on and
off premises.
V-30
FL 04 74 All-Terrain Vehicle
Coverage
• Added to the farm program in the 1994
revision.
– Covers liability arising out of specifically
scheduled all-terrain vehicles described in the
schedule.
– Vehicles that may be scheduled include those
that are owned or operated by or rented or
loaned to the “insured.”
– Note that unlike many other forms of vehicle
coverage, there is no coverage provided for
non-owned vehicles, unless they are
specifically scheduled.
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FARM AUTO INSURANCE
• Personal Auto Policy (PAP)
• Business Auto Coverage Form
(BACF)
V-32
PERSONAL AUTO POLICY
• Significant Provisions for Farm Risks
– Named Insured – can only be an individual or
a married couple
– Coverage for the employer under an
employee’s policy
– Absence of Employers’ Nonownership
– Pollution Liability
– Trailers
V-33
PERSONS INSURED - PAP
“Insured” as used in this Part means:
1.
You or any “family member” for the
ownership, maintenance or use of any auto
or “trailer.”
2.
Any person using “your covered auto.”
3.
For “your covered auto,” any person or
organization but only with respect to legal
responsibility for acts or omissions of a
person for whom coverage is afforded
under this Part.
V-34
“Insured” as used in this part
means:
4.
For any auto or “trailer,” other than
“your covered auto,” any person or
organization but only with respect to
legal responsibility for acts or
omissions of you or any family member
for whom coverage is afforded under
this Part. This provision (B.4.) applies
only if the person or organization does
not own or hire the auto or “trailer.”
V-35
1998 CHANGE
The definition of “you” is expanded to
include a spouse who ceases to be a
resident of the household.
– Intended to eliminate short-term gaps in
coverage arising from changes in
relationships that existed under earlier forms.
– Coverage is provided for a spouse who
leaves the residence for 90 days after
changing residency or until he or she obtains
a separate policy, or until the policy period
ends, whichever comes first.
V-36
EXAMPLES
Provision 3
Provision 4
• An employer becomes
legally liable for the
negligence of the named
insured or a family member
while operating the owned
automobile.
• An employer becomes legally
liable for the negligence of the
named insured or a family
member while operating a
nonowned automobile that is
covered under the policy.
• Jones is operating his own
auto in the course of his
employment and his
employer is sued.
• Coverage applies to both
Jones and to the employer.
• Jones is operating Smith’s
auto in the course of his
employment and his employer
is sued.
• Coverage applies to both
Jones and to the employer,
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but not to Smith.
ABSENCE OF EMPLOYERS'
NONOWNERSHIP
The principal exposure that is not covered
by the PAP is liability arising out of autos
owned by employees--Employers
Nonownership Auto liability coverage.
– If the farm employee carries adequate auto
liability insurance, the employee's coverage
will extend to cover the employer-farm owner.
– In farming operations with employees, the
PAP leaves an uninsured exposure that
should be written under the Business Auto
V-38
Coverage form.
POLLUTION AND CONTRACTUAL
EXCLUSIONS
It is significant that the PAP does not
contain either a contractual liability
exclusion or a pollution liability exclusion.
– Although liability arising out of pollution is not
excluded, some courts have held that
government-mandated pollution cleanup
costs are not “property damage” within the
meaning of the term as used in the CGL.
– The same interpretation would likely apply to
wording of the PAP.
V-39
TRAILERS
The PAP definition of "Trailer" includes a
vehicle designed to be pulled by a private
passenger auto or a pick-up or van:
I. "Trailer" means a vehicle designed to be
pulled by a:
1. Private passenger auto; or
2. Pickup or van.
It also means a farm wagon or farm implement
while towed by a vehicle listed in 1. or 2.
above.
V-40
TRAILERS
The definition of "trailer" includes a farm
wagon or farm implement, but only while
towed by a private passenger auto, a pickup
or van.
– any type of farm wagon or equipment—
owned or non-owned—is covered under the
PAP as a covered auto, as long as it is being
pulled by a vehicle of the type designated.
– PAP does not automatically cover trailers
when used with a truck other than a pickup or
V-41
van.
BAC FORM - COVERED AUTOS
1
2
3
4
5
6
7
8
9
19
Any Auto
Owned Autos Only
Owned Private Passenger Autos Only
Owned Autos Other Than PP Autos Only
Owned Autos Subject to no-fault
Owned Autos Subject to Compulsory UM Law
Specifically Described Autos
Hired Autos Only
Nonowned Autos Only
Mobile Equipment Subject to Compulsory or
Financial Responsibility or Other Motor Vehicle
Insurance Law Only
V-42
HIRED AND NONOWNED AUTOS
8 = HIRED "AUTOS" ONLY. Only those "autos"
you lease, hire, rent or borrow. This does not
include any "auto" you lease, hire, rent, or borrow
from any of your employees or partners or
members of their households.
9 = NONOWNED "AUTOS" ONLY. Only those
"autos" you do not own, lease, hire, rent or borrow
that are used in connection with your business.
This includes "autos" owned by your employees or
partners or members of their households but only
while used in your business or your personal
V-43
affairs.
TRAILERS AND MOBILE
EQUIPMENT
The definition of "Covered Auto" is modified by
provision C of Section I, designated Certain
Trailers, Mobile Equipment, and Temporary
Substitute Autos.
– Coverage is automatically provided without charge
for mobile equipment while being carried or towed by
a covered automobile.
– Coverage is also automatically provided without
charge for trailers with a load capacity of 2,000
pounds or less.
– Temporary substitute means a covered “auto” is out
of service because of its breakdown, repair,
V-44
servicing, “loss” or destruction
TRAILERS AND MOBILE
EQUIPMENT
Trailers in excess of 2,000 pounds that
are owned by the insured must be
declared and listed at the inception of
the policy.
– Nonowned trailers in excess of this
capacity are covered automatically
while being pulled by an owned auto.
– When pulled by a hired or nonowned
auto, they are covered under the same
symbol as the power unit (1, 8, or 9).
– Coverage on hired or borrowed trailers
extends to the owner of the trailer.
V-45
BACF PERSONS INSURED
• The broad definition of persons
insured provides coverage for
virtually anyone using a covered
auto.
• The problem that sometimes arises is
that not all autos that an insured
might use will fall within the definition
of “Covered Auto.”
V-46
11. Pollution Exclusion
The BAC form Liability insuring agreement
begins with the traditional wording that
states:
We will pay all sums an "insured" legally must
pay as damages because of "bodily injury" or
"property damage" to which this insurance
applies, caused by an "accident" and
resulting from the ownership, maintenance or
use of a covered "auto."
V-47
11. Pollution Exclusion
The BAC form then goes on to add a unique
insuring agreement to pay for some
pollution costs:
We will also pay all sums an "insured" legally
must pay as a "covered pollution cost or
expense" to which this insurance applies,
caused by an "accident" and resulting form
the ownership, maintenance or use of
covered "autos."
However, we will only pay for the "covered
pollution cost or expense" if there is either
bodily injury" or "property damage" to which
this insurance applies that is caused by the
V-48
same "accident."
POLLUTION EXCLUSION
11. POLLUTION. "Bodily injury" or "property
damage" arising out of the actual, alleged or
threatened discharge, dispersal, seepage,
migration, release or escape of "pollutants":
a. That are, or that are contained in any
property that is
(1) Being transported or towed by, handled,
or handled for movement into, onto or
from, the covered "auto";
(2) Otherwise in the course of transit by or
on behalf of the "insured"; or
(3) Being stored, disposed of, treated or
processed in or upon the covered V-49
"auto";
POLLUTION EXCLUSION
The major exception to the exclusion—found only
in the auto forms—states that the pollution
exclusion does not apply to fuels, lubricants,
fluids, exhaust gases or other similar pollutants
that are needed for or result from the normal
electrical, hydraulic or mechanical functioning of
the covered auto or its parts if
(1) The pollutants escape, seep, migrate, or are
discharged, dispersed or released directly from an
"auto" part designed by its manufacturer to hold,
store, receive, or dispose of such "pollutants“; and
V-50
POLLUTION EXCLUSION
(2) The “bodily injury”, “property damage” or “covered
pollution cost or expense” does not arise out of the
operation of any equipment listed in Paragraphs 6.b.
and 6.c. of the definition of “mobile equipment”.
6.b. Cherry pickers and similar devices mounted on
automobile or truck chassis and used to raise or lower
workers; and
6.c. Air compressors, pumps and generators, including
spraying, welding, building cleaning, geophysical
exploration, lighting or well-servicing equipment.
V-51
POLLUTION EXCLUSION
• Coverage is provided for pollution arising, for
example, from leakage of fuel, lubricants, or
other pollutants required for the normal
operation of the auto, such as leakage of gas,
oil, or antifreeze from the vehicle.
• The exception to the exclusion provides
coverage not only for bodily injury or property
damage arising out of the described type
losses, but "covered pollution cost or expense"
as well.
V-52
POLLUTION EXCLUSION
• Pollution that results from cargo being carried
by the insured vehicle is not covered by the
cleanup provision.
• Coverage for pollution cleanup costs arising out
of cargo being transported by the insured
vehicle may be added to the policy by
endorsement
– Pollution Liability-Broadened Coverage for Covered
Autos—Business Auto and Truckers Coverage Form
(CA 99 48).
V-53
BROADENING ENDORSEMENTS
• Instances arise in which an individual
does not own a personal auto, and in
which the only coverage available to a
person is under the BAC form.
• The BAC may be endorsed to provide
coverage for the use of nonowned
vehicles by the named insured or family
members using
– the Individual Named Insured endorsement
(CA 99 17) or
– the Drive Other Car Coverage - Broadened
Coverage for Named Individuals
V-54
endorsement (CA 99 10).
BROADENING ENDORSEMENTS
• One of the most frequently asked questions
about the Business Auto Coverage Form is
when and why do you use
– the Individual Named Insured endorsement
(CA 99 17) as opposed to
– the Drive Other Car - Broadened Coverage for
Named Individuals (CA 99 10) endorsement.
• The endorsements differ with respect to the
situations in which they are used, the persons
covered, and the scope of their coverage.
V-55
BROADENING ENDORSEMENTS
• Both endorsements are intended for individuals
such as a company officer or business owner
who does not personally own or insure any
private passenger vehicles, and provide
coverage for the individual’s personal use of
nonowned autos.
• If the individual in question has a Personal Auto
Policy, there is no need for either endorsement;
coverage for nonowned automobiles is provided
under the PAP.
V-56
INDIVIDUAL NAMED INSURED
ENDORSEMENT
• Originally, the answer to the question of
when to use the INI endorsement and
when to use the Drive Other Car
Coverage endorsement depended on the
form of business ownership.
– The Individual Named Insured endorsement
was used when the business in question was
organized as a sole proprietorship.
– In this case, the Individual Named Insured
endorsement is a mandatory endorsement for
V-57
sole proprietors according to ISO rules.
INDIVIDUAL NAMED INSURED
ENDORSEMENT
• Some underwriters interpret CLM manual
rules to permit the use of the Individual
Named Insured endorsement on a
corporate policy that includes an individual
as a named insured.
• Other underwriters limit the use of the
Individual Named Insured endorsement
(CA 99 17) to policies issued only to an
individual or husband and wife.
V-58
INDIVIDUAL NAMED INSURED
ENDORSEMENT
• Coverage under the INI endorsement
essentially follows the coverage of the Personal
Auto Policy.
– Coverage is provided for business and nonbusiness
use of non-owned private passenger type vehicles,
pickups and vans by the named insured and resident
relatives.
– Coverage also applies to nonowned commercial
vehicles as long as they are not being used for
business (e.g., when used for personal purposes
such as a U-Haul to move personal effects).
V-59
INDIVIDUAL NAMED INSURED
ENDORSEMENT
• Significantly, endorsement CA 99 17
specifically exempts vehicles of the
"private passenger type" from the pollution
exclusion. Provision 2.c. states:
c. The POLLUTION Exclusion and, if forming a
part of the policy, the NUCLEAR ENERGY
LIABILITY EXCLUSION (BROAD FORM),
does not apply to any covered "auto" of the
"private passenger type.“
The term "private passenger type" auto
includes any covered auto owned by the
insured of the pick-up or van type not used for
business other than farming.
V-60
INDIVIDUAL NAMED INSURED
ENDORSEMENT
• In addition, the fellow employee exclusion
of the BAC form to which the INI
endorsement is attached does not apply
to coverage under the INI endorsement.
• Coverage is provided for physical damage
if at least one private passenger type
vehicle is covered for physical damage in
the underlying Business Auto Coverage
form.
V-61
BROADENED DRIVE-OTHER-CAR
COVERAGE
• Drive-other-car coverage may be added to
the BAC form for specifically named
individuals, using the Drive Other Car
Coverage - Broadened Coverage for
Named Individuals endorsement (CA 99
10).
– A premium applies for each person named, and that
person and his or her spouse residing in the same
household is covered for the use of nonowned autos.
– The only restrictions are that the nonowned auto may
not be owned by the named individual or by a
member of his or her household, and the auto may
not be used in the auto business.
V-62
BROADENED DRIVE-OTHER-CAR
COVERAGE
• Drive Other Car Coverage - Broadened
Coverage for Named Individuals (DOC)
endorsement (CA 99 10) does not delete
or modify
– the pollution or
– fellow employee exclusions.
V-63
BROADENED DRIVE-OTHER-CAR
COVERAGE
• The DOC endorsement (CA 99 10) differs
from the INI endorsement with respect to
the nonowned automobiles that it covers.
– Like the PAP, the INI endorsement (CA 99
17) does not cover business use of
nonowned autos other than private
passenger autos.
– Neither does the INI endorsement cover use
of a nonowned auto owned by, furnished, or
available for the regular use of the named
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insured or any resident relative.
BROADENED DRIVE-OTHER-CAR
COVERAGE
• The DOC endorsement excludes
vehicles
– owned by the named individual or by
any family member.
– It does not exclude vehicles furnished
for the regular use of the named
insured.
– Neither does it exclude non-owned
trucks used in business
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Broadened Drive-Other-Car
Coverage
• Coverage under the stand-alone PAP may be
broadened to cover automobiles furnished for the
regular use of the named insured by the Extended
Liability endorsement (PP 0306) to the PAP.
– for named individuals, the DOC endorsement provides
coverage that is as broad as the stand-alone PAP that
has been endorsed with the Extended Liability
endorsement to provide coverage on vehicles furnished
for regular use.
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CA 99 10
CA 99 17
PP 03 06
Business Auto
Coverage Form
Personal Auto
Policy
=
V-67
SITUATION FOR BOTH CA 99 10
AND CA 9917
• Farmer insured under BAC Form
– Owns a private passenger auto (CA 99 10)
– Wife employed by local school district as a
nurse and is furnished a school district
vehicle
– Teen-age son and daughter
– Wants DOC coverage for all members of the
family (CA 99 17)
– Wife wants coverage while operating school
district car furnished for regular use (PP 03
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06)
SUMMARY
And they say auto
insurance is the
easiest thing to
understand!
V-69

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