CA 00 01–BUSINESS AUTO COVERAGE FORM ANALYSIS
(October 2016)
SECTION I–COVERED AUTOS
Numerical symbols are used to describe which autos are
covered and for what coverages. These symbols are defined in the Description of
Covered Auto Designation Symbols.
The Business Auto Declarations contains spaces next to
each of the business auto coverages in which symbols can be entered. The entry
of a symbol means that the coverage applies. The entered symbol explains what
types of vehicle have that coverage.
A. Description of Covered Auto Designation Symbols
1–Any Auto
This is the broadest symbol designation and it has no
limitations or restrictions. If the vehicle is an auto as defined by this
coverage form, it is covered, subject to certain exclusions and conditions.
Because of the broad scope of the coverage provided, many insurance companies
use this symbol very cautiously. Even if a given company uses it for liability,
it may not allow its use for physical damage. When Symbol 1 is used, no other
symbol should appear in the same box.
Note: See
Section V–Definitions for the definition of auto.
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Example: Acme Limited files a claim after
one of its salespeople’s car is involved in an intersection
collision and other parties are injured. The claims handling is delayed
because Acme’s policy shows Symbol 1, 8 and 9 next to that vehicle. Everyone
is confused.
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2–Owned Autos Only
This symbol means that any auto the named insured owns
is covered, including those acquired after the inception date. In addition,
when this symbol is used with covered autos liability coverage, any owned or
non-owned trailer pulled by an owned vehicle is also covered but only for covered
auto liability.
Related Court Case: Only "Owned" Autos of the Insured Covered Under
Business Auto Policy
Note: See
Section V–Definitions for the definition of trailer.
3–Owned Private Passenger Autos Only
This symbol means that all private passenger type autos
that the named insured owns are covered. This includes any private passenger
type vehicle acquired after the inception date.
Note: The term
private passenger type is not defined. Pickup trucks and vans that might be
considered private passenger on a personal lines policy would be considered
commercial on this policy.
4–Owned Autos Other Than Private Passenger Autos Only
This symbol means that all autos that are not considered
to be private passenger types are covered if they are owned by the named
insured. Those that are acquired after the inception date are also covered.
Similar to Symbol 2 above, the covered autos liability
coverage provided is extended to non-owned trailers pulled by this type of
owned vehicle.
5–Owned Autos Subject To No-Fault
An owned auto that is licensed or garaged in a state
where no fault coverage is available is covered for no-fault coverages
but only if the particular auto is required to have such coverage. Coverage
also extends to such autos acquired after the inception date.
6–Owned Autos Subject To A Compulsory
Uninsured Motorists Law
This symbol means that any auto the named insured owns
that is garaged or licensed in a state that mandates
uninsured motorists coverage is covered. It also applies to any auto
acquired after the inception date.
This symbol does not apply to vehicles licensed or
operated in states that allow the named insured to formally reject Uninsured
Motorists coverage.
7–Specifically Described Autos
Only autos specifically scheduled and for which a
premium charge is made are covered. Similar to Symbol 2 above, the covered
autos liability coverage provided is extended to any non-owned trailer
pulled by this type of owned vehicle.
8–Hired Autos Only
This symbol means that autos the named insured leases,
hires, rents or borrows are covered. This symbol has a significant limitation.
It does not include leased, hired, rented, or borrowed vehicles that are owned
by an employee, partner, LLC member, or members of any of the preceding groups’
households.
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Example: Perry drives a vehicle
owned by his company, First-Up, Inc. and Symbol 8 applies to it. One snowy
morning, Perry's wife’s car is behind his in the driveway and, being late for
work, he takes her vehicle. In his rush, he slides off the roadway.
First-Up’s insurance company does not respond to this loss because Perry
borrowed his wife’s car.
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9–Non-Owned Autos Only
This symbol means that autos the named insured uses in
its business but that it does not own, lease, hire, rent, or borrow are
covered. These autos may be owned by employees, partners in the case of a
partnership, members in the case of limited liability companies or members of
the preceding group’s households. However, they are covered only while they are
being used in either the named insured’s business or personal affairs.
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Example: In the example above, First
Up's insurance company would have responded if Symbol 9 applied on the
policy and Perry used his wife’s car to drive to his first appointment
instead of just to work.
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19–Mobile Equipment Subject To Compulsory or Financial
Responsibility or Other Motor Vehicle Insurance Law Only
This symbol means that land vehicles that meet the
definition of mobile equipment except that they are subject
to state-mandated registration and/or licensing are covered. This
symbol is needed because of recent state laws that are mandating that certain types
of mobile equipment be registered and/or licensed. The symbol applies only in
those states where the mobile equipment must comply with motor vehicle laws.
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Example: Best Kept Secrets,
Inc. provides security services to an exclusive gated beachfront property.
It uses an ATV to patrol the beachfront areas and to keep unauthorized boats
from landing. Because ATVs must be registered in the state, using Symbol 19
on its auto policy provides coverage on the ATV.
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Note: In some
cases, more than one symbol may be used.
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Example: Mega Lumber
Supply insures its vehicles using the Business Auto Coverage Form.
Mega wants to have liability insurance for all of its private passenger
vehicles, as well as for any hired or non-owned vehicles. For this reason,
Symbols 3, 8 and 9 appear in the space next to covered autos liability
coverage on Mega's declarations.
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Manuscript Symbol
An additional manuscript symbol not mentioned in the
Business Auto Coverage Form is available by adding endorsement CA 99 54–Covered
Auto Designation Symbol. Symbol 10 is available for the Business Auto Coverage
Form and applies based on what is listed and described on the endorsement.
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Example: The insured wants
covered autos liability coverage for all owned vehicles and physical damage
coverage on all owned vehicles except one. It also owns a high-value antique
automobile. Physical damage coverage on the antique automobile is written on
a separate policy in a specialty market. Symbol 2 designates the covered
autos for covered autos liability coverage. Symbol 10 designates the covered
autos for comprehensive and collision coverages. The definition for symbol
10 is: All Owned Autos except the 1959 Classic Rolls Royce.
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Note: There is
no reference to symbol 72 in this item. This means that newly acquired autos
are not covered unless mentioned in CA 99 54 when the symbol is added.
Insurers and brokers that are looking for a market to
provide coverage on difficult business auto or trucking situations, such as
racing activities, should refer to the Automobiles, Trucks, or Recreational
Vehicles section in The Insurance Marketplace, a publication of The
Rough Notes Company, Inc.
B. Owned Autos You Acquire After the Policy Begins
1. If Symbols 1–Any Auto, 2–Owned Autos Only, 3–Owned
Private Passenger Autos Only, 4–Owned Autos Other Than Private Passenger Autos
Only, 5–Owned Autos Subject to No-Fault, 6–Owned Autos Subject to a Compulsory
Uninsured Motorists Law or 19–Mobile Equipment Subject to Compulsory or Financial
Responsibility or Other Motor Vehicle Insurance Law Only are entered on the
declarations, autos of the type described by such symbols that the named
insured acquires during the policy period are also covered.
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Example: If Symbol 3–Owned Private Passenger Autos Only is used, coverage
automatically applies to a new private passenger vehicle the named insured
acquires to use to make sales calls during the policy period. However, there
is no automatic coverage if symbol 4–Owned Autos Other Than Private Passenger
Autos Only is used and the insured purchases the same private passenger
vehicle for sales purposes. The insured must specifically request that
coverage for this vehicle be added and change the symbol.
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2. When symbol
7–Specifically Described Autos is used, new autos acquired during the policy
period are covered either if the insurance company covers all vehicles the
named insured already owns or if the new vehicle replaces a vehicle already
scheduled. In either case, the named insured must inform the insurance company
of the acquisition within 30 days of the date it was acquired.
C. Certain Trailers, Mobile Equipment and Temporary
Substitute Autos
When covered autos liability coverage is selected based
upon entries on the declarations, several additional categories of
vehicles are added as covered vehicles.
1. Utility trailers having a load
capacity of 2,000 pounds or less and designed for travel on public roads are
covered but only while being pulled by a covered auto.
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Example: A marketing rep for Gr8teHealth Supplements Inc.
is traveling to a convention, towing a small trailer that is used
to store and transport the company’s convention booth. Symbols 3, 8 and 9 are
entered for liability. The rep switches lanes too aggressively and the
trailer slams into the front of a car that the rep attempted to pass.
Scenario 1: The marketing rep is using her
personal pickup truck to pull the trailer because her company vehicle is too
small. The loss is covered by Gr8teHealth’s BAP because the towing vehicle in
a nonowned vehicle (9) which is a covered auto.
Scenario 2: The marketing rep is using her
personal pickup truck to pull the trailer in order to use the company’s
convention booth to assist her son on his science fair project. The loss is
not covered by Gr8teHealth’s BAP. Because the towing vehicle was not being
used on company business at the time of the loss, it would not qualify as
covered under symbol 9.
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Note: A semi-trailer is not covered.
2. Mobile Equipment is covered while
being carried or pulled by a covered auto.
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Example: A bulldozer Real Landscaping owns is transported
on a flatbed towed by a pickup Real Landscaping owns. The driver turns
suddenly and the bulldozer overturns onto another vehicle. Real Landscaping’s
Business Auto Coverage Form responds to the damage caused by the bulldozer.
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3. If the named insured's covered, owned
auto is temporarily out of service for repair or service or due to breakdown,
loss or destruction, a non-owned, temporary substitute for it is covered but
only if the named insured uses it with the owner's permission.
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Example: Refer to the Symbol 8 example above. Instead of
Perry using his wife’s car out of convenience, he uses it because his car
would not start and he needed to get to work. In that case, First-Up’s
Business Auto Coverage Form responds to the accident because the vehicle was
used as a temporary substitute vehicle.
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