FEATURES COMMON TO ALL COMMERCIAL INSURANCE FORMS (Excerpted)

Most ISO coverage forms are designed to be a part of a package policy. In order to prevent confusion, ISO developed common declarations and conditions that could be attached only once and apply to the entire policy, instead of incorporating the common elements into each coverage form.

A policy is built in the following manner:

• Common declarations
• Coverage form specific declarations (one for each coverage form on the policy)
• Common conditions
• Coverage form (which includes the coverage specific conditions)
• Common endorsements
• Coverage specific endorsements

Variations and additional layers may be added. Policies that are designed to never be packaged will incorporate the common aspects into their specific coverage forms.

Declarations

The Common Policy Declarations contains the name of the insured or insureds and the mailing address for the risk. There may be many named insureds but there can be only one mailing address. The mailing address is where all official correspondence will be sent such as cancellations and nonrenewal notices. A brief description of the insured’s business, the policy period and premium for every coverage that is part of the policy must be entered. A listing of endorsements that apply to every coverage part is provided. If an endorsement applies to all but one coverage, it must be listed on those coverage form declarations. The endorsements listed on this declarations apply to every coverage part.

CONDITIONS

Cancellation

Cancellation by the Insured

Cancellation by Company

Flat Cancellation

Changes

The first named insured has the authority to request policy changes, but the changes are not effective unless the insurance company issues an endorsement to the policy.