The question of the month deals with a standard feature of property insurance forms. Direct physical loss of or damage to covered property caused by or resulting from riot or civil commotion is one of the extended coverages that first expanded the scope of the standard fire policy. However, the phrase “riot or civil commotion” is not specifically defined on the property causes of loss forms, and so, questions then arise. For example, what is a riot? What is the difference between damage caused by a riot and damage caused by vandalism? Are the violent acts of employees on strike considered a riot, civil commotion, or vandalism? For information on the covered cause of loss of riot or civil commotion, link onto the designated article in the FC&S Bulletins.

The Dec Page also offers a brief summary of new legislation passed by several states that impact the insurance world. And in keeping with this theme, the new legislation passed by Florida pertaining to insurance coverage for hurricane damage is analyzed. An uninsured motorists case from the Ohio Supreme Court is presented for the latest word from Ohio on the determinative factor in the question of when uninsured motorists coverage applies. Finally, four separate items dealing with autos, drivers tests, the risks of talking on a cellphone while driving, spinning hub caps, and a British proposal to install GPS tracking systems in all vehicles are noted.

ISO and AAIS Yacht Coverage Forms

Insurance Services Office (ISO) and the American Association of Insurance Services (AAIS) have each developed forms that can be used to cover yachts. Many insurers who write coverage for this market draft their own forms; however, these two coverage forms provide alternatives for insurers electing to use more standard forms. The AAIS form is designed for a boat in excess of twenty-six feet and valued over $50,000. The ISO form could be used with virtually any watercraft approved by the insurer.

This month we discuss the coverages provided by the two forms. See Yacht Coverage.

Questions and Answers

The Guiding Principles were set forth over forty years ago, and still have their use today. See Guiding Principles not Binding on Insured?. (For the Guiding Principles, see Guiding Principles). The GGL form is the subject of two questions this month. Is a band hired by the named insured considered an insured? See 'Who is an Insured' Clause and General Liability Coverage. Can damage caused by a remote control model airplane be excluded under the aircraft exclusion? See Aircraft Exclusion Applies to Model Airplane?.

What are the insurance needs of an inactive business? See Inactive Business Entity Still Needs Insurance.

A subscriber asks how business income coverage is triggered. See Business Income and Auto Exposure. An insured asks if a betterment charge should be assessed against a claimant when the insurer pays a property damage claim. See Is Betterment Deduction Allowed in Property Damage Claim.

How does the “direct excess” option apply in a garagekeepers policy? See Garagekeepers Coverage on a Direct Excess Basis.

CGL Endorsements

The CGL coverage forms can be modified in several ways by the use of endorsements: additional insureds can be added to the coverage form; exclusions can be added or deleted; existing coverages can be redefined. This article lists a sampling of the current endorsements that are most often used or that raise the most questions because of their use. Included in this discussion are new endorsements that ISO has published that deal with e-mails, exterior insulation finish systems (EIFS), silica or silica-related dust injuries, and revised endorsements that attempt to clarify the coverage status of additional insureds. See CGL Endorsements.