4. Underinsured Motorist Coverage Endorsement - The changes
on PP0311 are being made in order to dovetail with changes made to the
PAP. The volunteer or charitable use exception wording is being added,
the personal vehicle sharing exclusionary wording is being incorporated
into the wording, and the flying vehicle exclusionary wording is being
added. This item was derived from MAIC.
5. Limited Mexico Coverage Endorsement - ISO is revising
the endorsement’s warning statement on PP0321, due to recent
research conducted and information received. The new warning
shall read: “Auto accidents in Mexico MAY BE Subject to the Laws
of Mexico, not the laws of the United States. Under Mexican Law,
auto accidents are considered a criminal offense as well as a civil
matter. The coverage we provide you by this endorsement MAY
not meet Mexican Auto insurance Requirements.” You should
advise your clients to not depend on any US policy and buy specific
coverage for Mexico.
6. Miscellaneous Type Vehicle Endorsement - ISO is introducing
a mold exclusion under coverage Part D and adding a definition
of “fungi” to form PP0323. ISO will also be revising the exception
to Exclusion 7 to reinforce that coverage is excluded for a motor
home the named insured does not own when used as a temporary
substitute for a covered motor home.
7. Miscellaneous Type Vehicle Amendment (Motor Homes) - The
PP0328 endorsement allows the insured to purchase liability, med pay,
comp and/or collision when a motor home that is a “your covered auto”
is rented to others for an additional premium. ISO made a rule change
regarding the rating of these motor homes, stating that they would be
rated as PPAs used for business purposes. Because of the rules revisions,
the endorsement removed references to premium since it will now be
a rating issue. Checkboxes were added, which can be used to indicate if
such coverage will be provided for a particular motor home and which
coverages are provided. Therefore, an additional premium charge will be
added in order to include the liability when you are renting it to others.
8. Joint Ownership Endorsement - Current wording on the PP0334
endorsement allows resident individuals (other than husband and
wife), related or not, and non-resident relatives, to have joint ownership.
The revised form provides for a listing of the joint owners, if a non-
resident relative, entry space for name and address, removes coverage
information, and replaced “husband and wife” with “spouses.” This
has no effect on coverage, but it allows the carrier increased flexibility
to address current trends in home make ups. If they live in the same
residence they do not have to be related, but if they live in different
residences they do have to be related.
9. Auto Loan/Lease Coverage Endorsement - They are revising
form PP0335 to address how interest from deferred payments are
to be handled and also primacy of coverage when another source
of gap coverage applies to the loss. Therefore, this endorsement
results in a reduction in coverage. This form will read that the policy
is excess over other coverages, such as those purchased through the
dealer. Also, if the lender agrees to deferred payments, the buyer
might owe more interest at the time of loss, had the payments been
paid on time. The difference in the interest would be excluded now
and owed by the client.
10. Transition Endorsement - PP0009 - This endorsement can
be attached to the 0105 edition of the PAP to make it equate to the
0918 edition.
11. Full Safety Glass Coverage Endorsement - New Optional
endorsement PP3305 where coverage will apply when the “other than
collision” coverage is in effect and the auto is listed on the endorsement.
12. Key Replacement and Related Services Coverage
Endorsement - This is a new optional endorsement, PP3327, that
will provide coverage for scheduled vehicles only and pays without
application of a deductible for reasonable expenses to: get into the car if
the fob is lost or stolen, the cost to replace, and program keys or key fobs
lost or stolen. This endorsement is to help keep up with the market and
the max limit applies per auto.
13. Pet Injury Coverage Endorsement - This is a new optional
endorsement, PP3331, where the insured chooses a limit and no
deductible applies. Coverage extends from Part D and applies only when
collision and OTC applies to at least one vehicle and the pet (limited to
dog or cat) owned by a “you” or “family member” is in the car at the time
of the accident. Covered costs include vet expenses or cost to cremate or
dispose of the pet incurred within one year of the date of loss. The limit
is a per loss limit. The physical damage coverage doesn’t have to apply to
the vehicle the pet is inside, just one vehicle on the policy.
14. Child Restraint System Coverage Endorsement - This is a
new optional endorsement, PP3330, that is to help keep up with the
market. Since NHTSA recommends that systems be replaced after a
crash, coverage extends from Part D and applies only when collision and
OTC applies to at least one vehicle, the child restraint system is owned
by the you or a “family member,” and when the child restraint system is
inside a “your covered auto” or a “nonowned auto” at the time of the loss.
Maximum limit is shown in the schedule or declarations and provides
replacement with like kind and quality. Current policy has a $200 limit
but can be increased with this endorsement.
15. Replacement Cost Coverage Endorsemen t - This is a new
optional endorsement, PP3310, to keep up with the market. In
order to qualify for replacement cost, the covered auto must be
added within 24 months of purchase, have less than 24,000 miles,
and be owned by the original owner of the vehicle. There is no
automatic coverage for a newly acquired auto and no coverage for a
leased vehicle. There must be a total loss and coverage is subject to
a deductible. It states that it will replace with the same make, model
and trim level, but it doesn’t specify the same year.
16. Additional Resident of Your Household Endorsement - This
is a new optional endorsement, PP3337, that was developed to
accommodate current living arrangement trends. It is an “additional
insured” type endorsement, which allows the naming of an
additional resident and amends the definition of “family member”
to include the named resident. It also specifies that the carrier is
depending on the insured to be truthful and requires the insured
to notify the carrier if residency changes. This helps out with Nanny
and Domestic Partner situations.
17. Suspension of Insurance Endorsement - This endorsement
alters/revises PP0201, adding “Other Than Collision” to the
schedule of coverages that can be suspended. Some state laws are
not allowing this endorsement.
18. Snowmobile Endorsement - ISO is revising the optional form
PP0320 with no coverage impact, replacing the word “lesser” with “least.”
19. Personal Property Coverage - This is a new optional
endorsement (Millennial-based), PP3342, which will extend homeowner-
like personal property coverage to personal property anywhere in the
world, with open peril coverage on an ACV basis and with a replacement
cost option. No non-auto liability coverage. This helps for those that live
in and out of their vehicle.
20. Named Non-Owner Coverage Endorsement - ISO is revising
the PP0322 endorsement to where physical damage coverage will now
be an option. This will help when renting a vehicle and needing physical
damage. When business owners do not own a vehicle in their name, this
is broader coverage than Drive Other Car Coverage.
21. Trust Endorsement - A revision to PP1303 includes multiple
changes regarding the naming of the trust, the grantor, and the trustee.
It provides more flexibility to accommodate various trust structures. The
Insurer must be provided a copy of the trust agreement. The Insurer is to
be notified of any death or disability of the trustee or grantor.
Please keep in mind, although ISO does not make such drastic changes
very often, that doesn’t mean your insurance carrier will adopt these
forms right away. ISO has filed these with the different states, but you
need to work with your carrier to verify which edition/version they
might be using, so that you are aware if these changes affect you now or a
month down the road or possibly years.