Hired autos covered as specified autos you own CA 99 16

Individual named insured CA 99 17

Personal auto coverage under CA 99 17

Physical damage coverage under CA 99 17

Employees as named insureds CA 99 33

General Information

As described elsewhere in this discussion, the business auto and motor carrier 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 motor carriers coverage 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 erroneously be 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 adding endorsement CA 99 10, drive other car coverage (DOC), to provide such 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.

Drive Other Car Coverage – Broadened Coverage for Named Individuals CA 99 10

Any or all of the liability, medical payments, uninsured motorists, or physical damage coverages of a business auto or motor carriers policy can be extended by endorsement CA 99 10 10 13 to provide DOC coverage 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 the resident spouse. The definition of "auto" follows that of the business auto and motor carrier policies: "a land motor vehicle, trailer or semitrailer designed for travel on public roads but … not … mobile equipment."

Note that the endorsement does not provide liability coverage for other residents of the household, such as a live-in partner or other family members. If coverage is desired for any other resident relative, that 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, as defined.

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. A family member is defined in the form to be a person related to the individual named in the schedule by blood, marriage or adoption who is a resident of the individual's household, including a ward or foster child. 

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 the 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/equivalent for no additional charge.

Hired Autos Specified As Covered Autos You Own CA 99 16

If an insured hires, rents or borrows an auto to be used in business operations, endorsement CA 99 16 10 13  can be attached to provide additional insured coverage to the owner of such hired, leased or borrowed auto. This coverage is available under the business auto, motor carriers, or auto dealers coverage forms. The insured coverage is effected by entry of a description of the hired, leased or borrowed auto(s) in the endorsement schedule.

The coverage is rated based on the auto's classification, with a premium factor applied to cover the owner of each auto that is hired, leased or borrowed.

Individual Named Insured CA 99 17

The individual named insured endorsement CA 99 17 10 13 is used to modify the business auto or motor carrier coverage form to grant named insured status to the named insured's family members residing in the same household. Family members consist of persons related to the insured by blood, marriage or adoption, including a ward or foster child.  Consequently, this will give family members 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 including the spouse by marriage as a named insured under the endorsement, the resident spouse does not need the named insured's permission in order to be insured while driving a covered auto. Note however, that if divorced or living separately, a live-in partner, or for other family members not residing with the named insured, this coverage will not apply.

Consequently, the form provides lliability coverage for the use of cars that an insured borrows or hires from others so long as they qualify as covered autos under the policy (private passenger auto, pickup, van or trailer).  In short, the individual named insured endorsement provides the named insured's family members with a form of drive other car liability insurance. 

Another coverage provision of CA 99 17 is the modification of the exclusion of bodily injury to fellow employees of the insured 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. 

Personal Auto Coverage Under CA 99 17

Endorsement CA 99 17  also provides coverage for 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.

The other personal auto coverage feature 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.

Thus, 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 auto 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.

Physical Damage Coverage Under CA 99 17

One section on the CA 99 17 endorsement 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 provides valet parking and drives a customer's auto to the parking garage, physical damage insurance will apply if the car is damaged as long as the insured's owned auto has physical damage coverage. Note however, that the driver of the customer's auto would need to be a covered named insured or family member.

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

Employees As Insureds CA 99 33

Liability for non-owned, hired or borrowed autos used in connection with the insured's business operations or in the personal affairs of the insured employer, can be covered by use of endorsement CA 99 33 10 13. This endorsement covers the individual liability of employees, including those of auto service operations, by granting them insured status while such vehicles are being used in this manner. For example, if the insured asks the employee to go pick up a part for an auto being serviced, that employee will be covered the same as the insured while using his car to pick up the part.

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