The question of the month deals with uninsured motorists coverage. Auto policies have named insureds for coverage purposes, but they also can have other insureds. For example, family members and other persons occupying the covered auto can be insureds. This usually causes no problems for the insured or the insurer. However, when it comes to uninsured motorists coverage, there is an issue that arises often.

When the named insured rejects uninsured motorists coverage, as allowed by state law, how does that affect other persons who are insureds under the terms of the policy? Is this rejection by the named insured binding on all insureds? And, since this issue is state-specific, how do the individual states address the issue?

For the answers to these questions and for the state-by-state listing of state laws on the subject, link onto the designated article in the

Bulletins.

The case law subjects for the month concern faulty work and the meaning of occurrence, the tear out provisions in the homeowners policy, a Texas Supreme Court ruling on the trigger of coverage in property damage cases, the definition of employee, and the question of whether a driveway is considered part of the dwelling or as an other structure for coverage purposes.

Questions and Answers

The intent of the 5 percent debris removal of covered property extension under the HO-3 forms is explained. See Intent of 5 Percent Debris Extension?.What is considered “a short time” under the CGL Policy? See “What Constitutes “a Short Time”? .

Is car fire damage from negligent battery replacement excluded? See Fire Damage to Car from Negligent Battery Replacement Excluded as “Work You Performed”?

If a chimney collapses during the installation of a liner is it noncompensable faulty workmanship? See Chimney Collapse During Liner Installation Noncompensable Faulty Workmanship?

Certificates of Insurance

Certificates of insurance serve an integral role in the relationship between vendors and buyers, contractors and subcontractors, lessees and lessors, mortgagees and mortgagors, and others who hold inter-related positions in the supply chain of the economy. Most certificates provide only information on the type and limits of insurance that the insured carries. They have little or no standing legally because they are not contractual in nature—they indicate only the coverage and limits that are provided by the listed insurance policies. An update of the article on Certificates of Insurance has been added to FC&S this month, along with new ACORD certificate of insurance forms. See Certificates of Insurance.