Numbers 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.
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.
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 auto is not defined in the coverage form.
However, according to ISO rules, pickups, panel trucks and vans are considered
private passenger for rating purposes as long as they are not used in business.
This lack of definition could result in disputes.
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.
Note: The term private passenger auto is not defined in the coverage form.
However, according to ISO rules, pickups, panel trucks and vans are considered
private passenger for rating purposes as long as they are not used in business.
This lack of definition could result in disputes.
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. First-Up’s declarations
has symbols 2, 8 and 9 for liability and physical damage coverages. 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 to Perry’s wife’s
car because, although it was borrowed, the car was owned by a member of
Perry’s household.
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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 Perry had 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.
Note: In some cases, more than one symbol may be used.
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: Great
One, Inc. wants covered autos liability coverage for all owned vehicles
and physical damage coverage on all owned vehicles except one because it owns
a high-valued antique automobile. Physical damage coverage on the antique
automobile is written on a separate policy in a specialty market. Symbol 2 is
used for liability coverage. However, Symbol 10 is used for comprehensive and
collision coverages. Symbol 10 is defined on CA 99 54 as All Owned Autos
except the 1959 Classic Rolls Royce.
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Note: There is no reference to symbol 10 in this item. Because of this,
Paragraph B. below does not apply to any coverage that has only symbol 10. This
means that when symbol 10 is used, no coverage applies for any newly acquired
vehicle that would match the symbol 10 criteria.
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.
