The question of the month deals with the loss damage waiver. When the insured rents a car for a vacation, for example, rental car companies offer an item called the loss damage waiver (formerly the collision damage waiver) that may confuse insureds when it comes to physical damage coverage for rented autos. A rented car is considered a nonowned vehicle under the terms of the personal auto policy, but what coverage does the policy provide? If the insured is offered the choice of purchasing a loss damage waiver or declining the offer, what should he do? What are the consequences for the insured if the rental car is damaged and the insured has declined the waiver? For the answers to these questions, link onto the designated article in the FC&S Bulletins.

The Dec Page also offers an article on businessowners and intellectual property issues written by Ms. Erin Fay and Ms. Julie Frymark, associates at the firm of Crivello, Carlson, and Mentkowski, S.C. The article analyzes recent case law regarding insurance coverage of copyright, trademark, and patent claims. Specifically, the authors focus on CGL policies and whether these policies created a duty to defend an intellectual property owner, or conversely, an infringer of someone's intellectual property. This article is presented in two parts; part one is in the April Dec Page and part two will be in the May Dec Page.

A homeowners case is also noted. The case deals with a policy's cancellation provisions and the question of what “proof of mailing” and “proof of notice” mean.

Index Update:

The Fire & Marine Index has been updated this month. The updating reflects the changes and additions that have been made to the index 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.

Questions and Answers:

The CGL form does not cover loss involving “impaired property,” but sometimes what constitutes impaired property is not clear. See Impaired Property and the CGL Form. A driver is stung by a bee and, being allergic, drives quickly to the doctor's office. Is there medical payments coverage for him when he passes out while driving? See Med Pay Under Auto Policy Applies to Bee Sting?. These are on Q&A page 1375. See Nonowned Auto Coverage and Family Members, for a question involving two auto policies for a husband and wife. Then, a subscriber asks about coverage for an insured's expense to drill the lock on a safe deposit box. See Safe Deposit Box Drilling Covered?. These two questions are on Q&A page 1376.

A friend seeks coverage as an insured for the operation of a watercraft. See Watercraft Liability Coverage for Homeowner's Friend?. Also on Q&A page 1377 is a question about whether ice storm damage qualifies as water damage. See Ice Causes Trees to Fall—Water Damage?. On Q&A page 1378 a subscriber asks about deductible application for multiple locations. See Deductible Application for Multiple Locations Loss.

PAP—January 2005 Edition:

This month we continue our review of the January 2005 edition of ISO's Personal Auto Policy (PAP) with the definitions; ISO has reworded the definition of “occupying” to clarify that it includes the process of getting in, on, out, or off. Under the previous definition it could have been argued that “off” meant “away from,” thus leading to unintended coverage. See Personal Auto Definitions. Print subscribers will find this on Personal Auto page A.2.

Fiduciary Liability Coverage:

St. Paul Travelers offers a fiduciary liability policy that protects benefit plans, the sponsoring organization, and various individuals acting as fiduciaries or administrators of the plans. The policy is written on a claims-made basis. See Fiduciary Liability Coverage, for a review of the policy. This is on Specialty Lines page Ea-.