General information

DOC endorsement, CA 99 10

Individual named insured endorsements

Personal auto coverage

Physical damage coverage

General Information

 As described elsewhere in this tab, the business auto, truckers, and garage policies can be arranged to include coverage for hired or borrowed automobiles. Although other persons are also considered as insureds while using such autos with the permission of the named insured, they are not covered for the use of autos that they themselves may hire or borrow on their own.

 For example, an executive officer of a corporation insured under a business auto coverage form will have no insurance under the policy while using an auto that he borrows for his personal affairs, even if the policy covers hired or borrowed cars. The reason is that the business auto form covers persons other than the named insured for the use of covered autos owned, hired, or borrowed by the named insured. The same is true of the garage form and the truckers form.

 These provisions are especially likely to pose problems when the named insured furnishes a covered auto to some person who has no other auto insurance — perhaps an executive officer or his family members, a sales representative, or some other employee of the named insured. Because the person may well qualify as an insured under the employer's policy with respect to the furnished auto, it might be erroneously assumed that the person will also be an insured for the use of other autos. As discussed above, that is not the case. However, if the employer and the underwriter are willing, the employer's policy can be extended, by endorsement CA 99 10, drive other car coverage (DOC), to provide drive other car coverage to any individual named in the endorsement. If the employer or underwriter is not amenable to extending the company policy in this way, the employee not owning a car can purchase a named nonowner policy.

 DOC Endorsement, CA 99 10

 Any or all of the liability, medical payments, uninsured motorists, or physical damage coverages of a business auto, truckers, or garage policy can be extended by endorsement to provide DOC to the individual named in the endorsement. Note that the endorsement can only be used to extend coverage; unless the named insured's policy carries collision coverage, for example, that coverage cannot be provided in the endorsement.

 As for liability insurance, the endorsement provides that any auto not owned, hired, or borrowed by the named insured is a covered auto while being used by the individual named in the schedule of endorsement CA 99 10 or by his or her resident spouse. The definition of "auto" follows that of the business auto and truckers policies: "a land motor vehicle, trailer or semitrailer designed for travel on public roads but … not … mobile equipment."

 The endorsement does not provide liability coverage for resident relatives other than the individual's spouse. If coverage is desired for a resident relative other than the spouse, the relative must be named in the endorsement. Although the endorsement excludes the use of autos owned by the individual or any member of his household, there is no exclusion of an auto furnished or available for the regular use of such persons, as in the personal auto policy.

 The endorsement does have the usual exclusion found on auto policies of any auto used by the individual while working in an auto business — the selling, servicing, repairing, or parking of autos.

 As for the medical payments and uninsured motorists coverages, the endorsement grants insured status to:

 1.The individual named in the endorsement.

2.The individual's spouse if residing in the same household.

3.Resident family members.

 The coverage applies while occupying any auto not owned by the named insured or, while pedestrians, when struck by such an auto. As in drive other car liability coverage, there is an exclusion of any auto owned by the individual, his or her spouse, or any family member of either.

 If physical damage coverage is provided through the drive other car endorsement, it applies to private passenger types in the care, custody, or control of the individual that are not owned by the named insured, the individual, or a family member of the individual. It also applies to private passenger autos that are not used by the individual or his or her spouse while working in an auto business.

 Premiums for drive other car coverage are figured by referring to the state rate pages. Liability premiums are shown for a $25,000 combined single limit. If increased limits are desired, they can be computed by application of increased limits factors displayed in the appropriate state rate pages of the CLM. In all cases, the drive other car coverage includes coverage for the spouse for no additional charge.

 Individual Named Insured Endorsements

 Endorsement CA 99 17 03 06, individual named insured, is used to modify the business auto, truckers, and motor carrier coverage forms. Endorsement CA 99 18 12 93 modifies only garage policies issued to dealers.

 Both endorsements give named insured status to the named insured's spouse if residing in the same household as the named insured. Consequently, the spouse will have the same protection under the policy as the named insured. Note that even in the absence of the individual named insured endorsement the spouse would, by the terms of the who is insured section of the policy, be covered while using a covered auto with the named insured's permission. By being included as a named insured under the endorsement, the spouse does not need the named insured's permission in order to be insured while driving a covered auto.

Consequently, the spouse has liability coverage for the use of cars that he or she borrows or hires from others so long as they qualify as covered autos under the policy. In short, the individual named insured endorsements provide the named insured's spouse with a form of drive other car liability insurance.

 Endorsement CA 99 17 has a second effect, which is not contained in CA 99 18, the endorsement used for dealer risks. The exclusion of bodily injury to fellow employees of the insured is amended so that it does not apply to bodily injury to fellow employees of either the named insured or any family members residing with the named insured. If, for example, a resident relative injures a fellow employee while using a covered auto, the policy will not exclude coverage for a subsequent suit against the relative. Again, this feature of coverage is not included in the individual named insured endorsement that is used for dealers, CA 99 18.

 Personal Auto Coverage

 Another feature of endorsement CA 99 17 (not of CA 99 18) is what the endorsement terms "personal auto coverage." If the named insured is an individual, the endorsement approximates the drive other car protection built into the regular personal auto policy. This portion of the endorsement is particularly desirable when all family cars are insured under the named insured's business auto policy and the family has no personal auto policy to cover their drive other car exposure. Personal auto coverage applies only when there is an owned auto of the private passenger type insured under the named insured's policy. Private passenger type is defined in the endorsement to include pickup trucks and vans not used for business purposes other than farming or ranching. If, for example, the named insured's policy only covered a pickup truck used in business, personal auto coverage would not apply.

 If personal auto coverage does apply, the endorsement makes family members insureds for any auto the named insured owns of the private passenger type. The endorsement also makes family members insureds for any other auto that is described in the following paragraph.

The other feature of personal auto coverage is covered auto status for any auto not owned by the named insured while being used by the named insured or any family member, subject to four exclusions in addition to those of the auto coverage form. The coverage does not apply to:

 1.A car owned by any family member.

2.Any auto furnished or available for the regular use of the named insured or any family member.

3.Any auto used by the named insured or any family member while working in a business of selling, servicing, repairing, or parking autos.

4.Any auto other than one of the private passenger type while used in any other business or occupation.

 Hence, the personal auto coverage on the endorsement provides drive other car liability insurance to both the named insured and family members, even if the named insured's coverage form does not otherwise provide hired autos coverage. Note, however, that the exclusions listed above would necessitate separate hired autos coverage for various exposures, such as long-term rentals, use of hired or borrowed trucks in business, and use of any type of auto in an auto business.

 To repeat, the individual named insured endorsement used for dealers does not include personal auto coverage. If a dealer wants drive other car liability coverage for family members in addition to his spouse, it can be arranged under the dealer's policy only through the drive other car endorsement, CA 99 10. Similarly, if an individual named insured with the broader, nondealer endorsement (CA 99 17) does not qualify for personal auto coverage, family members can be provided drive other car coverage through endorsement CA 99 10. In either case, the usual drive other car premium will have to be charged.

 Physical Damage Coverage

 One section on the individual named insured form, CA 99 17, also deals with physical damage coverage. This section extends covered auto status to a nonowned auto while any owned auto of the private passenger type is a covered auto under physical damage coverage. For example, if the insured gets into a neighbor's car and drives it away from blocking the driveway, the physical damage insurance will apply if the car is damaged and if the insured's owned auto has physical damage coverage.

 If the nonowned auto is a trailer, a $500 limit applies as to the most the company will pay for a loss.