The article of the month deals with symbol 1 on the business auto policy. Symbol 1 denotes coverage for any auto. This covered auto designation symbol can be broad and troublesome to insureds, insurers, and producers. Of particular note is the question of whether auto coverage can ever be eliminated when the coverage is written on an “any auto” basis for liability insurance (especially when the commercial auto policy is amended with an endorsement deleting or suspending the coverage on one or more vehicles.

The court cases in the Dec Page come from various U.S. Courts of Appeals and the Superior Court of Delaware. The Ninth Circuit Court of Appeals handled a question of whether injuries arose out of the use of an auto. The court made its decision applying California jurisprudence to the facts of the incident. The First Circuit Court of Appeals had to decide if circumstantial evidence sufficed to render an asserted insurance claim plausible when the actual insurance policy that might provide coverage was lost; this was a case of a lost policy versus a reasonable expectation of coverage. Reverse bad faith was the issue before the Sixth Circuit Court. The court had to predict whether the Kentucky Supreme Court would recognize a common law tort of reverse bad faith wherein the insurer sought a ruling for reverse bad faith against an insured that had intentionally set fire to her house and then filed a claim for the damage. The final case comes from the Superior Court of Delaware. The issue was whether defective workmanship was an occurrence as defined in the commercial general liability policy.

Questions and Answers

If an auto accident occurs in a parking lot owned by the insured, would liability coverage under the CGL form apply? See Auto Accident and CGL Coverage. How do the damage to property exclusions in the CGL form apply when the insured is hired to install new gutters, pulls up the edge of some rubber roofing for the installation, fails to properly reseal the roofing, allowing water to enter the building and causing damage? See Damage to Property Exclusions in the CGL Form.

How does coverage work under a CGL form for a property manager who is also listed as an additional insured under an endorsement? See Property Manager as Additional Insured. Are overseas military bases considered U.S. territory under the definition of coverage territory in the CGL form? See Territory Definition and Overseas Exposures.

Scheduling Personal Property for the Homeowners Insured:

Various types of property that an insured may own are often better insured when put on a schedule. Examples are jewelry, furs, firearms, fine arts, instruments, silverware, and other specialty items. These items may have significant value and are exposed to hazards that do not fall in the standard named perils categories. ? See Scheduling Personal Property for the Homeowners Insured.

General Property Form

The General Property Form is available through the National Flood Insurance Program (NFIP). The NFIP falls under the Federal Emergency Management Agency (FEMA) Federal Insurance Administration. There are three standard policies used for writing flood insurance under the NFIP: Dwelling, General Property, and Residential Condominium Building Association policies.

The General Property form is the only one of the forms that may be used to insure commercial enterprises, such as a nonresidential condominium building or a mercantile or manufacturing concern. It may also be used to insure a residential condominium not qualifying for the regular program, or personal property in a unit in a nonresidential condominium building.

The discussion of this form has been updated to reflect changes made to the 2014 form. See General Property Form.

Floor Plan Coverage Form

The Floor Plan Coverage Form, CM 00 52 01 13, one of the forms of the commercial inland marine program of Insurance Services Office (ISO), affords open perils coverage on merchandise held for sale that has been financed through a lending institution. The form may cover the single interest of the dealer, the lending institution, or their dual interest.

This discussion was updated to incorporate changes made to the 2013 form. See Floor Plan Coverage Form.