SUBJECT: Effective October 15, 2005 for new and renewal business OMI is making a number of changes to our Commercial Auto Program.

Transcription

1 OREGON MUTUAL INSURANCE COMPANY DEPT: SUBJECT: DATE: BULLETIN NO: 1966 September 14, 2005 California Regional Office TO: All OMI California Agents Commercial Auto Changes Effective October 15, 2005 for new and renewal business OMI is making a number of changes to our Commercial Auto Program. RATES Good News! We are implementing an overall rate decrease of 14.3%. We are adopting the most current ISO loss costs. Because of the number of factors that contribute to the overall -14.3% amount, there may be variations in the amount of change affecting any individual insured. (Although the average change is a decrease, some individual insureds may experience a premium increase.) RULES We are adopting the most current ISO multistate and California rules. Revised OMI manual rules are available on BizLink in the Online Manuals section. Various changes have been made to the Oregon Mutual pages: Monoline Commercial Auto We will now be able to entertain monoline commercial auto on qualifying risks. Package Modification We are implementing a Package Modification of.80 for commercial auto written in conjunction with a package policy. The Package Modification is also available if a commercial auto policy is written is conjunction with a Businessowners policy. Assisted Care Autos We have created a special classification for autos owned or used by Assisted Care facilities and used for the transportation of their own clients (Rule 40). Auto Dealers Medical Payments Forms have changed to reflect coverage for Registered Domestic Partners (Rule 49). Garagekeepers Insurance Additional deductible amounts of $1,000, $1,500, and $2,500 are now available for Garagekeepers Insurance coverage (Rule 55). Drive Other Car Coverage Forms have changed to reflect coverage for Registered Domestic Partners (Rule 88). Non-Ownership Liability The minimum premium for Social Service Agency Risks for volunteers (Class 6670) has changed from $25 to $85 for a $100,000 limit (Rule 89.c.2.b.). Non-Ownership Liability The minimum premium for Social Service Agency Risks for volunteers - Blanket (Class 6672) has changed from $5 to $85 for a $100,000 limit (Rule 89.c.2.b.). Hired Autos The minimum premium for liability has changed from $70 to $57 for a $100,000 limit (Rule 90). Individual As Named Insured Forms have changed to reflect coverage for Registered Domestic Partners (Rule 91). Medical Payments Forms have changed to reflect coverage for Registered Domestic Partners (Rule 92). Uninsured Motorists Forms have changed to reflect coverage for Registered Domestic Partners (Rule 97). Terrorism Terrorism Rules have been added (Rule 111). BULLETIN

2 FORMS A number of new forms have been added to our forms library. We are now more current with ISO forms. For a description of the policy changes please refer to the attached Notice To Policyholders, which will be sent out with renewal policies. Should you have any questions or need additional information, please contact your Commercial Lines Underwriter or Agency Marketing Manager. Thank you for your continued support of Oregon Mutual. Katana Forbes California Commercial Lines Business Unit Manager

3 OREGON MUTUAL INSURANCE COMPANY M8571A (10-05) IMPORTANT NOTICE TO POLICYHOLDERS This notice is a summary of the major changes in your Commercial Auto Coverage. It does not reference every change. The major areas within the policy that reduce, broaden, or clarify coverage are highlighted below. Not all changes affect all policies, and no policy will have all the forms attached. Refer to your own policy to determine what coverages you have. Words or phrases that appear in quotation marks have special definitions within the policy. Changes In Coverage Forms Mobile Equipment Subject To Motor Vehicle Insurance Laws CA The definitions of "mobile equipment" and "auto" have been revised. Any land vehicle that may have qualified as mobile equipment under your previous policy will now be considered an auto if that vehicle is subject to a compulsory or financial responsibility law or other motor vehicle insurance law where it is licensed or principally garaged. With this change, coverage is provided for these types of land vehicles in the same manner as autos under the Commercial Auto program. However, the operation of any machinery or equipment that is on, attached to, or part of these vehicles will be excluded, as stated in the revised "Operations" exclusion contained in Section I. Liability Coverage of your policy, since such operations coverage will continue to be available under a Commercial General Liability policy. California Changes CA replaces California Changes CA Oregon Changes CA replaces Oregon Changes CA Clarification: Language in the form is amended in response to 2003 Or. Laws (former S.B. 602) which revises OR. REV. STAT Unless a written agreement between a person engaged in the business of selling, renting, leasing, or repairing motor vehicles and another person states otherwise, insurance available to the party who provides an auto from the business to another person is excess and the insurance available to the person receiving the auto from such business is primary. California Auto Medical Payments Coverage CA replaces Auto Medical Payments Coverage CA California Individual Named Insured CA replaces Individual Named Insured CA California Drive Other Car Coverage Broadened Coverage For Named Individuals - CA replaces Other Car Coverage Broadened Coverage For Named Individuals CA M8571A (10-05) Page 1 of FRM.

4 Oregon Uninsured Motorists Coverage Bodily Injury CA replaces Oregon Uninsured Motorists Coverage Bodily Injury CA In response to the Oregon Supreme Court decision in Bergman v. Hutton, 337 Rr. 596, 101 P.3d 353 (20040) the Limit of Insurance provision is revised to delete the limits reduction offset for workers compensation disability benefits. California Uninsured Motorists Coverage Bodily Injury CA replaces California Uninsured Motorists Coverage Bodily Injury CA In response to 2003 Cal. Stat. (former S.B. 333), this form has been revised to provide an increase in time, from one year to two years from the date of the accident, within which specific actions must be taken in order to bring a legal action against the company. Oregon Personal Injury Protection CA replaces Oregon Personal Injury Protection CA The Medical And Hospital Expenses limit is increased from $10,000 to $15,000. Washington Personal Injury Protection Named Individuals - CA replaces Washington Personal Injury Protection Named Individuals - CA Clarification: Currently, WASH. REV. CODE ANN (5)(b)(i) provides, in general, that the definition of an insured includes a person occupying or using the insured automobile with the permission of the named insured. The Washington Insurance Department has requested that current policy provisions be amended to include reference to the term "using" to more closely track the law. Paragraph B.3. Who Is An Insured, is modified to add a reference to the term "or using" a covered auto. Additionally, WASH. REV. CODE ANN (6) provides exclusionary references, in part, to a relative while occupying a motor vehicle owned by the relative or furnished for the relative's use, if such motor vehicle is not described on the declarations page of the policy under which a claim is made. The Washington Insurance Department requested that this law be more closely tracked. Paragraph C.2., Exclusions, has been amended to provide that coverage for Personal Injury Protection benefits is excluded for bodily injury to a family member who is occupying a motor vehicle owned by or furnished for that family member's regular use that is not a covered "auto". Conditional Exclusion Of Terrorism (Relating To Disposition Of Federal Terrorism Risk Insurance Act Of 2002) - CA The conditional clause (titled Applicability Of The Provisions Of This Endorsement) governs applicability of this endorsement. Briefly, the endorsement is effective only if the Federal Act is terminated with certain provisions. M8571A (10-05) Page 2 of FRM

5 Conditional Exclusion Of Terrorism Above Minimum Limits (Relating To Disposition Of Federal Terrorism Risk Insurance Act Of 2002) - CA The conditional clause (titled Applicability Of The Provisions Of This Endorsement) governs applicability of this endorsement. Briefly, the endorsement is effective only if the Federal Act is terminated with certain provisions. Coverage is excluded for acts of terrorism that would be subject to an underlying policy exclusion. With respect to Liability and Personal Injury Protection Coverage, if applicable, this exclusion applies only to the extent that the limit of such coverage exceeds the state compulsory or financial responsibility law minimum limits for each coverage. With respect to Uninsured and/or Underinsured Motorists Coverage, if applicable, this exclusion applies only to the extent that the limit of such coverage exceeds the minimum statutory permitted limits for Uninsured and/or Underinsured Motorists Coverage. Those limits are equal to the minimum limit permitted for Liability Coverage. Coverage Washington Conditional Exclusion Of Terrorism (Relating To Disposition Of Federal Terrorism Risk Insurance Act Of 2002) - CA The conditional clause (titled Applicability Of The Provisions Of This Endorsement) governs applicability of this endorsement. Briefly, the endorsement is effective only if the Federal Act is terminated with certain provisions. Exclusion Of Certified Acts Of Terrorism And Other Acts Of Terrorism CA (This endorsement is optional.) It is used while the Federal Act is in force to exclude Certified Acts Of Terrorism and certain defined Other Acts Of Terrorism in the event that you do not choose to purchase the coverage. Exclusion Of Certified Acts Of Terrorism And Other Acts Of Terrorism Above Minimum Statutory Limits CA (This endorsement is optional.) It is used while the Federal Act is in force to exclude Certified Acts Of Terrorism and certain defined Other Acts Of Terrorism in the event that you do not choose to purchase the coverage. With respect to Liability and Personal Injury Protection Coverage, if applicable, this exclusion applies only to the extent that the limit of such coverage exceeds the state compulsory or financial responsibility law minimum limits for each coverage. With respect to Uninsured and/or Underinsured Motorists Coverage, if applicable, this exclusion applies only to the extent that the limit of such coverage exceeds the minimum statutory permitted limits for Uninsured and/or Underinsured Motorists Coverage. Those limits are equal to the minimum limit permitted for Liability Coverage. M8571A (10-05) Page 3 of FRM

6 Exclusion Of Terrorism - CA If the Federal Act is terminated the endorsement is used to exclude terrorism coverage. Exclusion Of Terrorism Above Minimum Statutory Limits - CA If the Federal Act is terminated the endorsement is used to exclude terrorism coverage. Coverage is excluded for acts of terrorism that would be subject to an underlying policy exclusion. With respect to Liability and Personal Injury Protection Coverage, if applicable, this exclusion applies only to the extent that the limit of such coverage exceeds the state compulsory or financial responsibility law minimum limits for each coverage. With respect to Uninsured and/or Underinsured Motorists Coverage, if applicable, this exclusion applies only to the extent that the limit of such coverage exceeds the minimum statutory permitted limits for Uninsured and/or Underinsured Motorists Coverage. Those limits are equal to the minimum limit permitted for Liability Coverage. Coverage Washington Exclusion Of Terrorism - CA If the Federal Act is terminated the endorsement is used to exclude terrorism coverage. This IMPORTANT NOTICE TO POLICYHOLDERS is not intended as a substitute for the policy provisions. The policy alone determines the scope of your insurance protection. It is very important that you read your policy carefully. If you have any questions regarding your policy or this notice, please contact your agent. Thank you for insuring with Oregon Mutual Insurance Company. M8571A (10-05) Page 4 of FRM