Q&A of the Week |
Symbol 1 Coverage under the BAP
An Iowa subscriber recently asked the following question:
We have a major discussion going on about the coverage with a commercial client. The commercial client purchased a new vehicle three months into his policy period. He has symbol 1 on the BAP for coverage. We understand that during that policy period the client has automatic liability coverage for a newly acquired vehicle.
Symbol 1 says coverage exists until the end of the policy period. When that policy renews, and the insured does not place that vehicle onto the policy at renewal, is there then coverage for that vehicle if there is an accident for liability? It is no longer a newly acquired vehicle, but an owned vehicle that is in regular daily use.
ANSWER:Symbol 1 makes any auto a covered auto, so even if the insured does not place the vehicle onto the policy he has liability coverage. It is up to the insurer to attach the proper premium for that vehicle at the end of the policy period while conducting the audit. There are no exclusions to prevent coverage, and the insuring agreement and symbol 1 are the primary considerations. Read More |
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What's New This Week in FC&S |
Jewelers Block Coverage Form
The Jewelers Block Coverage Form, written subject to commercial inland marine rules and forms promulgated by Insurance Services Office (ISO), provides open perils coverage specifically tailored for the needs of insureds in the retail jewelry trade. Coverage is written on a nonreporting basis using form CM 00 59 01 13 and is available at standard rates to retailers with average inventories no larger than $250,000. This article offers an analysis of the changes in the CM 00 59 01 13 from the earlier CM 00 59 03 10 form. Read More |
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Litigation Watch |
Flood Insurance Coverage Dispute
This case pertains to a motion by the insurer for summary judgment. The dispute is over a flood insurance claim. This case is Lusco v. Allstate Ins. Co., No. 13-66342014, WL 3796423 (E.D. La July 30, 2014).
The Standard Fire Insurance Company, a participant in the Federal Emergency Management Agency's Write Your Own Flood Insurance Program, issued a standard flood policy to Lusco. When Hurricane Isaac hit on August 29, 2012, Lusco suffered property damage.
An independent adjuster inspected the property, and Lusco requested an advance payment of $15,000 for the covered building damage and a $5,000 advance payment for covered contents damage. Standard Fire approved these payments. In October 2012, Lusco submitted a signed and sworn proof of loss to Standard, contending that his building and contents losses totaled $75,076.12. Standard approved this payment.
When FEMA extended the proof of loss submission deadline for Hurricane Isaac-related claims to April 28, 2013, Lusco did not submit any additional proof of loss. However, on December 12, 2013, Lusco sued Standard Fire and his windstorm insurer (Allstate Insurance Company). On June 26, 2014, Lusco submitted an additional estimate of flood-related damage. Standard Fire filed a summary judgment motion seeking a dismissal of Lusco's claims, alleging that Lusco failed to submit a timely signed and sworn proof of loss to support his supplemental claim. Read More
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