The question of the month deals with successor liability and the issue of whether the successor entity assumes the liabilities of the prior business. This issue has relevance in the insurance business, especially when it comes to coverage under a general liability policy. If an insured acquires or merges with another business, what is the liability exposure of the insured? Can insurance coverage be transferred to successor corporations? Does the insurance contract language prevail or has the state made its own rules and regulations on the subject that take precedence? For the answers to these questions and for individual state information on the subject, link onto the designated articles in the FC&S Bulletins.

The Dec Page also presents court decisions on various subjects. One case deals with whether the CGL advertising injury coverage applies to a claim arising out of junk faxes, and another pertains to the status of coverage for an additional insured. The cases are from the Seventh Circuit Court of Appeals and a Louisiana Appeals Court, respectively. A homeowners case is also noted, and at issue here is the expected or intended injury exclusion. A Tennessee court interprets the exclusion in a case involving a shooting incident and the subsequent insurer's denial of coverage.

Several states have passed laws and regulations affecting insurance coverage and these are noted in the Dec Page for interested subscribers.

Questions and Answers:

The backup of sewer and drain endorsement appears to be fairly straightforward, but how does it tie in with a septic system? See Backup of Sewer or Drain and Accidental Discharge Peril. Print subscribers will find this on Q&A page 1369. Of particular seasonal interest is one subscriber's question. See Ice Fishing Hut a Trailer?. An employee steals from a client of the insured. Is there coverage? See Crime form and Third Party Coverage. Print subscribers will find the latter two Q&As on Q&A page 1370.

On Q&A page 1371 we address two questions. First, will equipment breakdown coverage respond to damage to an irrigation system? See Irrigation System and Steam Boiler Policy. Second, is there coverage for equipment damaged by low voltage? See “Stolen Credit Card Transaction is Uninsurable Business Risk”, Personal Lines Volume, Q&A section. A subscriber asks about the status of a sole proprietor. See Sole Proprietor Is Named Insured under CGL Policy. A businessowner sustains loss to covered vehicles—will the business income policy provide coverage? See Business Income Policy Applies to Loss to Vehicles?. Print subscribers will find these two Q&As on Q&A page 1372.

PAP—January 2005 Edition:

This month we begin our review of the January 2005 edition of ISO's Personal Auto Policy (PAP). The first article discusses eligible persons and vehicles. Now, an eligible pickup truck or van is one that is either a) 10,000 gross vehicle weight rating or less (the previous eligibility requirement was less than 10,000 gross vehicle weight), or b) one for which there is a symbol in the Symbol and Identification section of the Personal Vehicle Manual (PVM). See Personal Auto Policy. Print subscribers will find this on Personal Auto page A.1.

Index Update:

The Casualty & Surety Index and the Companies & Coverages Index are updated this month. The updating reflects the changes and additions that have been made to the respective indexes over the past year. This will help the reader to more easily find the subject matter that is of most interest to him or her.

Master Index Update:

The annual revision of the Master Index for FC&S is presented. The Master Index allows subscribers to more easily find the location of the various subject matters that are discussed and analyzed in all of the FC&S volumes. The Master Index cites the subject matter by particular volume and page reference.