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Business Auto, Garage, Truckers and Motor Carrier Forms
and Endorsements
By John Eubank, CPCU, ARM
Professional Insurance Education, Inc.
This information is based on an Explanatory Memorandum and other materials issued by
Insurance Services Office, Inc. (© ISO 2009) and includes the language of those
documents with the permission of the author. I’ve modified the explanations slightly for
readability.
PROPOSED EFFECTIVE DATE – From The ISO Filing
The ISO revision is subject to the following rule of application:
Alabama, Alaska, Arizona, Arkansas, Delaware, District Of Columbia, Georgia, Idaho,
Illinois, Indiana, Iowa, Kansas, Kentucky, Maine, Michigan, Mississippi, Missouri,
Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, North Dakota,
Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Dakota, Tennessee, Utah,
Vermont, Washington, Wisconsin and Wyoming: These changes are applicable to all
policies written on or after June 1, 2010.
Florida, Louisiana and Maryland:
These changes are applicable to all policies effective on or after June 1, 2010.
California, Colorado, Guam, Minnesota, South Carolina, Texas and US Virgin Islands:
ISO does not establish an effective date for Commercial Auto forms revisions in these
jurisdictions.
Each insurer that elects to utilize this revision is responsible for determining its own
effective date.
ISO is revising the following forms:
♦
CA DS 03 03 06 - Business Auto Declarations
♦
CA DS 09 03 06 - Garage Declarations
♦
CA DS 15 10 01 - Business Auto Physical Damage Declarations
♦
CA DS 21 03 06 - Motor Carrier Declarations
♦
CA 00 01 03 06 - Business Auto Coverage Form
♦
CA 00 05 03 06 - Garage Coverage Form
♦
CA 00 10 03 06 - Business Auto Physical Damage Coverage Form
♦
CA 00 20 03 06 - Motor Carrier Coverage Form
There will also be numerous revisions to endorsements, most are editorial and not
reviewed in this report.
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New Forms
ISO is introducing:
♦
CA 04 42 03 10 - Exclusion Of Federal Employees Using Autos In Government
Business
♦
CA 04 44 03 10 - Waiver Of Transfer Of Rights Of Recovery Against Others To Us
(Waiver Of Subrogation)
♦
CA 04 45 03 10 - Golf Carts And Low-Speed Vehicles
♦
CA 23 97 03 10 - Amphibious Vehicles
♦
CA 23 98 03 10 - Trailer Interchange Coverage
Withdrawn Forms
ISO is withdrawing:
♦
CA DS 14 03 06 - Truckers Declarations
♦
CA 00 12 03 06 - Truckers Coverage Form
The following is a brief summary of the major changes.
1. Fellow Employee - In light of the potential precedential impact of a court
decision in Missouri, as well as courts outside of Missouri, ISO is revising the
Fellow Employee Exclusion to reinforce underwriting intent that consequential
injury claims for damages brought by family members of employees injured by
fellow employees are not intended be covered.
2. Under the Physical Damage Coverage Section of CA 00 01 - Business Auto
Coverage Form, CA 00 05 - Garage Coverage Form, CA 00 10 - Business Auto
Physical Damage Coverage Form and CA 00 20 - Motor Carrier Coverage Form,
coverage is being extended for all electronic equipment that is permanently
installed and that reproduces, receives or transmits audio, visual or data signals
and which is powered solely from the vehicle's electrical system. By addressing
all such permanently installed electronic equipment, these policies will expressly
cover equipment beyond that which reproduces sound. This coverage is similarly
extended to electronic equipment that is removable from a housing unit, which is
permanently installed in or upon a covered auto.
For electronic equipment that reproduces, receives or transmits audio, visual or
data signals which is permanently installed in or upon housings, openings or other
locations of a covered auto other than those normally used by the auto
manufacturer for the installation of such equipment, coverage will be provided up
to a limit of $1,000. However, this limit may be increased by attaching optional
endorsement CA 99 60.
In recognition of the proposed changes to these policies, optional endorsement
CA 99 60 is revised to instruct that the electronic equipment sublimit is in
addition to the each accident limit shown in the schedule of CA 99 60. The title of
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this endorsement is also revised to Audio, Visual And Data Electronic Equipment
Coverage Added Limits. Additionally, the $250 deductible has been removed
from the schedule of CA 99 60, as the Physical Damage Coverage deductible that
applies to each covered auto, if any, will now apply to losses to AVD equipment.
Similar revisions are made to Loss Payable Clause - Audio, Visual And Data
Electronic Equipment Endorsement CA 99 61 and newly titled Audio, Visual And
Data Electronic Equipment Coverage - Fire, Police And Emergency Vehicles
Endorsement CA 20 02 to track the revisions introduced in the underlying
policies, as mentioned above.
3. Wear and tear exclusion - To reinforce the purpose of the policy language and
to track the corresponding Personal Auto Policy exclusion, ISO has revised the
"Wear and Tear" exclusion by adding “…due and confined to…”
4. New Subrogation Endorsement – ISO is introducing optional multistate
endorsement CA 04 44 - Waiver Of Transfer Of Rights Of Recovery Against
Others To Us (Waiver Of Subrogation), which amends the Transfer Of Rights Of
Recovery Against Others To Us condition to provide that such condition does not
apply to the person or organization shown in the Schedule, but only to the extent
that subrogation is waived prior to the accident or the loss under a contract with
that person or organization.
5. Trailer Interchange Endorsement - As opposed to a common carrier (commonly
referred to as a trucker), a private carrier is typically one who hauls its own goods
(usually on its own trucks and trailers) and generally is not in the business of
transporting goods or merchandise for hire by others. A trailer interchange
generally is when two truckers agree to take responsibility for one another's trailer
while the trailer is in their possession, usually for a prescribed period of time.
In response to the growing practice of private carriers interchanging trailers, ISO
has developed a new endorsement, CA 23 98 03 10 - Trailer Interchange
Coverage, for private carriers insured under the Business Auto Coverage Form.
This endorsement provides comprehensive, specified causes of loss and collision
coverage. In addition, limited coverage options for fire and fire and theft (similar
to that in CA 23 13 - Trailer Interchange Fire and Fire and Theft Coverages) have
been included. CA 23 13 has been revised to eliminate the reference to the
Business Auto Coverage Form.
6. Golf Cart Endorsement – ISO is introducing Golf Carts and Low Speed
Vehicles endorsement CA 04 45 to address the golf cart and low speed vehicle
exposure for those vehicles that are not subject to Financial Responsibility
requirements. No endorsement is necessary for vehicles subject to Financial
Responsibility requirements, as such vehicles fall within the definition of an
"auto" in the ISO Commercial Auto Coverage Forms. Similar to Mobile
Equipment Endorsement CA 20 15, the new endorsement provides that any
vehicles described in the schedule are considered to be covered "autos" for those
coverages for which a premium is shown. The schedule allows Liability, Auto
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Medical Payments, Personal Injury Protection and Uninsured/Underinsured
Motorists Coverages to be provided. The Schedule in this endorsement does not
include physical damage coverage as Rule 73. Golf Carts and Low Speed
Vehicles instructs that physical damage coverages are insured only on a stated
amount basis via Stated Amount Insurance endorsement CA 99 28. Consistent
with our approach in other endorsements, we have shaded the area where an
insurer would indicate the number of vehicles for Uninsured and Underinsured
Motorists Coverage to avoid any potential stacking of limits in those jurisdictions
where stacking is not currently contemplated by the applicable
Uninsured/Underinsured Motorists Coverage endorsements and related rating.
7. Since the introduction of ISO's Truckers Coverage Form (TCF) CA 00 12, the
TCF has served the needs of the common and contract carriers, especially for
truckers subject to operating rights granted by a public authority such as the
Interstate Commerce Commission (ICC) and its rules and regulations.
The introduction of the Motor Carrier Act of 1980 generally allowed carriers to
establish their own rates, eliminated many restrictions on commodities that could
be carried, and expanded the routes that motor carriers could use and the
geographic regions they could serve.
In response to these emerging changes, ISO introduced the Motor Carrier
Coverage Form (MCCF) CA 00 20 in 1993. This Coverage Form encapsulated
many provisions of the TCF as well as those of the Business Auto Coverage Form
CA 00 01.
A notable difference between the MCCF and the TCF is the use of the terms
"motor carrier" and "trucker", respectively. "Motor Carrier" is defined, in the
MCCF, as a person or organization providing transportation by auto in the
furtherance of a commercial enterprise. "Trucker" is defined, in the TCF, as a
person or organization engaged in the business of transporting property by auto
for hire. As a result, under the MCCF, a carrier may insure its transportation of
either his/her own property or a third-party's property. In contrast, the same
carrier insured under the TCF may only insure property transported on a for-hire
basis.
In light of the expanded scope of eligible risks under the MCCF and because the
MCCF generally does not have some of the restrictions provided under the TCF
(such as the requirement that an insured's trucking activity be conducted pursuant
to operating rights granted by a public authority), ISO is withdrawing the
Truckers Coverage Form CA 00 12.
In order to provide sufficient lead-time for carriers to convert to the Motor Carrier
Coverage Form CA 00 20, ISO will continue, in the near term, to maintain and
provide updates to ISO's endorsements that, in part, modify the TCF until a future
announcement is made.