ISO AGRICULTURAL CAPITAL ASSETS (OUTPUT POLICY) COVERAGE FORM AVAILABLE ENDORSEMENTS AND THEIR USES

(December 2022)

INTRODUCTION

This list identifies endorsements by form number and title available to modify or include with the Insurance Services Office (ISO) Agricultural Capital Assets (Output Policy) Coverage Form. It is arranged by form number and title and includes a brief explanation of the use of each endorsement. It does not include any state-specific endorsements.

Note: New endorsements with the 04 13 edition and changes to existing endorsements are in bold type. Minor editorial changes in the latest edition that do not affect coverage are not included.

FORM NUMBERING

The ten-digit numbering sequence of ISO forms and endorsements has a very specific meaning.

CATEGORIES

Endorsements are grouped in categories according to their purpose, as follows:

Category AG DS–Declarations and Schedules

Category AG IN–Index

Category AG 01–Water Exclusion Endorsement

Category AG 03–Deductible Endorsements

Category AG 04–Additional Coverage Endorsements

Category AG 09–Terrorism Endorsements

Category AG 10–Causes of Loss Endorsements

Category AG 12–Loss Payable Provisions

Category AG 13–Value Reporting Endorsements

Category AG 14–Additional Property Coverages/Miscellaneous Endorsements

Category AG 15–Time Element Forms and Endorsements

Category AG 99–Special Provisions

Category IL 00–Interline Forms And Endorsements

CATEGORY AG DS–DECLARATIONS AND SCHEDULES

AG DS 01–Agricultural Capital Assets (Output Policy) Declarations

This declarations is used with AG 00 01–Agricultural Capital Assets (Output Policy) Coverage Form.

Related Article: ISO Agricultural Capital Assets (Output Policy) Declarations and Schedules

AG DS 02–Supplemental Declarations (04 13 changes)

This supplemental declarations amends the limits that the ISO Agricultural Capital Assets (Output Policy) Coverage Form provides. It is used with AG DS 01–Agricultural Capital Assets (Output Policy) Declarations.

Related Article: AG DS 01–Agricultural Capital Assets (Output Policy) Declarations and Schedules

AG DS 03–Flood Coverage Schedule

This schedule is used when flood coverage is provided.

Related Article: AG 10 04–Flood Coverage

AG DS 04–Earthquake–Volcanic Eruption Coverage Schedule

This schedule is used when earthquake and volcanic eruption coverage is provided.

Related Article: AG 10 01–Earthquake–Volcanic Eruption

CATEGORY AG IN–INDEX

AG IN 01–Agricultural Capital Assets (Output Policy) Coverage Form Index

This alphabetical index identifies various items and their page-number location in AG 00 01–Agricultural Capital Assets (Output Policy) Coverage Form.

CATEGORY AG 03–DEDUCTIBLES

AG 03 01–Multiple Deductibles

This endorsement allows the named insured to customize deductibles. They can be modified by location, building, property covered, and cause of loss. The maximum deductible in a single occurrence is the highest deductible that applies, even if multiple locations and different causes of loss are involved. This endorsement is not used to modify percentage deductible arrangements for earthquake, flood, windstorm, hail, theft, or vandalism.

Related Article: AG 03 01–Multiple Deductibles

AG 03 03–Windstorm or Hail Percentage Deductible

This endorsement adds a windstorm or hail percentage deductible. The schedule explains the properties it applies to, and the rest of the endorsement explains how the deductible is calculated.

CATEGORY AG 04–ADDITIONAL COVERAGE ENDORSEMENTS

AG 04 01–Below Ground Water and Backup of Sewer and Drain Coverage (04 13 change)

AG 00 01 specifically excludes loss or damage due to water that backs up from a sewer or drain, sump pump system failure, and from water that seeps or flows through underground structures such as foundations and basements. This endorsement modifies the exclusion and covers loss or damage to covered property due to water or waterborne material for a $50,000 limit per occurrence. Higher limits are available. When a sump pump fails because of a power failure, coverage is provided, but only if AG 04 04–Utility Services–Direct Damage is attached, and power failure coverage is provided.

AG 04 02–Transit Backhaul

AG 00 01 excludes property of others the named insured transports or hauls as a carrier for hire. This endorsement deletes that exclusion on the property for which the named insured is legally liable as a carrier for hire as long as the property is in the named insured’s care, custody, and control and in or on vehicles it operates. This is an extension of Property In Transit Additional Coverage.

AG 04 03–Vehicle Physical Damage Coverage

AG 00 01 excludes most vehicles as covered property. This endorsement amends the coverage form and provides limited coverage for certain listed and described vehicles, subject to specific limits and deductibles.

Related Article: AG 04 03–Vehicle Physical Damage Coverage

AG 04 04–Utility Services–Direct Damage (04 13 changes)

This endorsement eliminates the utility service exclusion by providing coverage for loss or damage caused when off-site utility services fail. The services that can be covered are water, communications (with or without overhead lines), and power supply (with or without overhead lines). Any combination of services may be covered. The limit is part of, and not in addition to, the limit of insurance and is an extension of coverage, not an additional coverage. The term “transmission lines” is expanded to include distribution lines.

AG 04 05–Electronic Commerce (E-Commerce)

This endorsement covers the named insured's actual loss of business income and/or extra expense incurred related to its electronic commerce described on the endorsement schedule with respect to its electronic data.

Related Article: AG 04 05–Electronic Commerce (E-Commerce)

AG 04 06–Railroad Rolling Stock Coverage

This endorsement covers the named insured's railroad rolling stock as well as similar property of others in its care, custody, or control. It has its own coinsurance provisions, and a different deductible usually applies to collision and derailment. It has an option to value covered property using Association of American Railroads (AAR) rules.

AG 04 07–Spoilage Coverage

This endorsement covers the named insured's perishable property and similar property of others in its care, custody, or control against loss or damage due to breakdown, contamination, mechanical failure, and/or power interruption. The limit of insurance, deductible, and covered causes of loss are scheduled on the endorsement. Other entries on the endorsement schedule state whether or not a refrigeration maintenance contract is in place and if coverage is subject to a refrigeration back-up system warranty.

AG 04 08–Livestock Coverage

This endorsement covers loss to livestock for the limits of insurance on the endorsement schedule caused by, that result from, or that arise out of the covered causes of loss in the endorsement.

Related Article: AG 04 08–Livestock Coverage

AG 04 09–Poultry Coverage

This endorsement covers loss or damage to poultry for the limits of insurance on the endorsement schedule caused by that result from or that arise out of the covered causes of loss in the endorsement.

Related Article: AG 04 09–Poultry Coverage

AG 04 10–Increase in Rebuilding Expenses Following Disaster (Additional Expense Coverage on Annual Aggregate Basis) (04 13 addition)

This is an anticipatory endorsement. It applies only if a loss occurs as part of an event where a state of disaster is declared. The limit of insurance is increased for the scheduled building by the percentage entered to pay for the rebuilding surcharge that often accompanies such disasters because labor and materials are in high demand. An unusual part of this endorsement is that it is an annual aggregate. This means that if two or more disasters occur in the same year, the maximum paid is one additional expense percentage limit.

AG 04 11–Warehouse Operators Legal Liability Coverage

Warehouse operators can purchase this coverage that covers only the personal property of others. The coverage is limited to only the named insured’s legal liability for direct physical damage to the covered property. That is further limited to only loss due to a covered cause of loss.

Related Article: AG 04 11–Warehouse Operators Legal Liability Coverage

AG 04 12–Leasehold Interest Coverage

This endorsement covers the named insured's loss of covered leasehold interest when its lease is cancelled.

Related Article: AG 04 12–Leasehold Interest Coverage

AG 04 14–Grain under Government Loan

Grain pledged as collateral for a loan from the Commodity Credit Corporation of the United States Department of Agriculture (USDA) creates unique requirements and agreements. This endorsement is designed to satisfy those requirements and agreements.

AG 04 15–Scheduled Household Personal Property

This endorsement allows the named insured to increase the limits for certain types of household personal property that are subject to special limits in the coverage form. It also adds coverage for camera and musical instruments.

AG 04 16–Functional Business Personal Property, Machinery, and Equipment Valuation

When the named insured plans to replace its business personal property, machinery or equipment with items of significantly lower value, this endorsement should be used. The named insured must describe the items subject to this endorsement and provide a limit of insurance for the item. If a loss occurs, the item will be replaced with a closely equivalent item instead of one of like kind and quality. When used with a named insured who has a clear plan of replacing existing items, the endorsement can be a very practical solution in rightsizing insurance values.

AG 04 17–Vacancy and Unoccupancy Changes

This endorsement changes the requirement that a building must be at least 31% occupied to not be considered vacant or unoccupied for only the building scheduled on this endorsement. The percentage at the scheduled building can be reduced to as little as 10%.

AG 04 18–Vacancy and Unoccupancy Permit

The Vacancy and Unoccupancy Condition in the policy suspends coverage for loss due to certain causes of loss and applies a 15% loss payment penalty to all other losses when buildings are vacant or unoccupied for more than 60 days. This endorsement eliminates that condition for the scheduled locations but only during the listed time period.

AG 04 20–Protective Safeguards (04 13 change)

When a premium is based partly on certain properly operating protective safeguards, the insurance company usually requires or warrants that they remain in proper operating condition for the full policy term. This endorsement is used to warrant that sprinkler systems, fire alarm systems, burglar alarm systems, security systems, security services, or others listed and described on the endorsement schedule remain in working order. Loss or damage due to fire and theft is excluded if the specified protective device or devices are not operating properly at the time of loss. The 04 13 edition adds Automatic Commercial Cooking Exhaust and Extinguishing Systems to the list of protective safeguards and describes them.

AG 04 21–Functional Building Valuation

When the named insured plans to replace its building with a building that more closely matches its needs, this endorsement should be used. The named insured must describe the buildings subject to this endorsement and provide a limit of insurance. If a loss occurs, the building will be replaced with a functional equivalent item instead of one of like kind and quality. When used with a named insured who has a clear plan of replacing existing items, the endorsement can be a very practical solution in rightsizing insurance values.

Related Article: CP 04 38–Functional Building Valuation

AG 04 22–Identity Fraud Expense Coverage

This endorsement is available only if the named insured is an individual. It provides a $25,000 limit of insurance and covers identity theft for the named insured and his or her family members.

AG 04 31–Calculation of Premium

This endorsement adds a provision that states the insurance company calculates premiums at renewal, anniversary date, or continuation of the policy term based on rules and rates in effect on the effective date of such transactions.

AG 04 34–Equipment Breakdown Protection Coverage

This endorsement covers direct physical loss or damage to covered property at covered locations due to the breakdown of covered equipment.

Related Article: AG 04 34–Equipment Breakdown Protection Coverage

AG 04 35–Suspension/Reinstatement of Coverage

When AG 04 34–Equipment Breakdown Protection Coverage is on the policy, this endorsement can be used to suspend coverage on one or more pieces of covered equipment. It is also used to reinstate coverage on the same equipment.

Note: If a company inspector suspends coverage on a piece of equipment, it is immediate and applies whether or not this endorsement has been attached.

AG 04 36–Limited Coverage for Specified Equipment

This is a limitation of the AG 04 34–Equipment Breakdown Protection Coverage endorsement.

Related Article: AG 04 34–Equipment Breakdown Protection Coverage

AG 04 37–Production Machinery Exclusion

This endorsement is used with AG 04 34–Equipment Breakdown Protection Coverage. It excludes production or process machinery and apparatus. It also includes its related equipment.

AG 04 38–Diagnostic Equipment Coverage

This endorsement is used with AG 04 34–Equipment Breakdown Protection Coverage. It deletes the exclusion of diagnostic and related equipment. It also covers such equipment.

AG 04 46–Increased Cost of Loss and Related Expenses for Green Upgrades (04 13 changes)

This endorsement provides a percentage increase to be used to upgrade the building to green standards following a loss. It also extends the period of restoration for business income and extra expense because of the extra time needed to implement the changes.

Related Article: AG 04 46–Increased Cost of Loss and Related Expenses for Green Upgrades

AG 04 54–Limited Coverage for Unmanned Aircraft (Scheduled and/or Blanket Coverage) (12 16 addition)

Coverage applies for unmanned aircraft (commonly called drones). Coverage does not apply while the aircraft is being used for delivery purposes or in any type of contest or race. Coverage can be blanket or scheduled and can include business income coverage. The schedule is a part of the endorsement.

CATEGORY AG 09–TERRORISM ENDORSEMENTS

AG 09 01–Cap on Losses from Certified Acts of Terrorism

Related Article: Terrorism–Insurance Services Office (ISO) Forms

AG 09 02–Exclusion of Certified Acts of Terrorism

Related Article: Terrorism–Insurance Services Office (ISO) Forms

AG 09 07–Conditional Exclusion of Terrorism (Relating to Disposition of Federal Terrorism Risk Insurance Act)

Related Article: Terrorism–Insurance Services Office (ISO) Forms

AG 09 08–Conditional Exclusion of Terrorism Involving Nuclear, Biological, or Chemical Terrorism (Relating to Disposition of Federal Terrorism Risk Insurance Act)

Related Article: Terrorism–Insurance Services Office (ISO) Forms

AG 09 09–Exclusion of Terrorism

Related Article: Terrorism–Insurance Services Office (ISO) Forms

AG 09 10–Exclusion of Terrorism Involving Nuclear, Biological, or Chemical Terrorism

Related Article: Terrorism–Insurance Services Office (ISO) Forms

AG 09 19–Conditional Limitation of Coverage for Terrorism–Sub-Limit on Annual Aggregate Basis (Relating to Disposition of Federal Terrorism Risk Insurance Act)

Related Article: Terrorism–Insurance Services Office (ISO) Forms

AG 09 20–Limitation of Coverage for Terrorism–Sub-Limit on Annual Aggregate Basis

Related Article: Terrorism–Insurance Services Office (ISO) Forms

CATEGORY AG 10–CAUSES OF LOSS ENDORSEMENTS

AG 10 01–Earthquake–Volcanic Eruption (04 13 changes)

This endorsement is used only with AG DS 04–Earthquake–Volcanic Eruption Coverage Schedule. The location, coverage that applies, and deductible are on that schedule. This endorsement covers loss or damage caused by or that results from earthquake and volcanic eruption.

Related article: AG 10 01–Earthquake–Volcanic Eruption

AG 10 02–Earthquake Inception Extension

Loss or damage in the current policy year is covered even if the earthquake or volcanic eruption that causes the loss or damage began up to 72 hours prior to the policy inception. This applies only to coverage provided by AG 10 01–Earthquake-Volcanic Eruption.

Related article: AG 10 01–Earthquake–Volcanic Eruption

AG 10 03–False Pretense Coverage

Loss caused by an insured or employee being misled or tricked into giving up possession of covered property is excluded in the unendorsed policy. Coverage for such false pretense loss is provided up to the limit of insurance on the schedule when this endorsement is attached.

AG 10 04–Flood Coverage (04 13 changes)

This endorsement is used with only AG DS 03–Flood Coverage Schedule. The description of the location and the limits that apply must be on the Flood Coverage Schedule.

Related Article: AG 10 04–Flood Coverage

AG 10 05–Theft Exclusion (04 13 change)

Theft can be a difficult cause of loss to insure on a risk that is otherwise acceptable. This endorsement solves that problem by excluding loss due to theft while still covering loss or damage caused by or that results from riot-related looting and building damage caused by burglars entering or exiting the premises. This exclusion applies to only the locations listed on the endorsement schedule.

AG 10 06–Windstorm or Hail Exclusion

This endorsement excludes windstorm or hail as covered causes of loss at the location(s) and for the covered property described on the endorsement schedule. However, if either result in a covered cause of loss other than rain, snow, sleet, sand, or dust, coverage applies to the loss or damage caused. Windstorm or hail is deleted from the definition of Specified Causes of Loss when this endorsement is used.

AG 10 07–Vandalism Exclusion

This endorsement excludes vandalism as a covered cause of loss at the location(s) and for the covered property described on the endorsement schedule. However, if vandalism results in a covered cause of loss, coverage applies to the loss or damage it causes. Vandalism is deleted from the definition of Specified Causes of Loss when this endorsement is used.

AG 10 08–Coverage for Damage Sustained Only by Tires in Collisions, Upsets, or Overturns of Mobile Equipment

This endorsement pays for mobile equipment tire damage when caused by collision, upset, or overturn. It is not subject to a deductible.

AG 10 12–Radioactive Contamination

This endorsement covers losses caused by accidental and sudden radioactive contamination at the location(s) on the endorsement schedule. It also covers subsequent radiation damage that results from material stored or used at such locations. However, there is no coverage if the location has a nuclear reactor or any nuclear fuel.

Note: Hospitals and manufacturing plants are some classes of business that may need this coverage.

AG 10 16–Watercraft Exclusion

This endorsement excludes loss or damage when a watercraft makes contact with retaining walls, piers, wharves, docks, pilings, and bulkheads.

AG 10 17–Exclusion of Loss due to By-products of Production or Processing Operations (Rental Properties) (04 13 addition)

A tenant’s operations may produce vapor, gas, smoke, or other substances as a regular part of production. This endorsement excludes any damage to the named insured’s property as a result of such tenant releases. This applies to meth-house situations, grease residue, and other substances. This applies to the buildings and locations on the endorsement schedule.

AG 10 18–Limitations on Coverage for Roof Surfacing (04 13 addition)

This is a restriction of coverage. It contains two potential limitations. The first changes valuation on roofs from replacement cost to actual cash value. The second excludes loss or damage by wind or hail to the roof when the loss or damage is considered to be only superficial or cosmetic. The premises must be scheduled along with the limitation selection(s).

CATEGORY AG 12–LOSS PAYABLE PROVISIONS

AG 12 01–Loss Payable Provisions

The named insured is not allowed to gain financially from any loss. Correspondingly, when it does not own certain property outright, either because it is leased or is collateral on a loan, it does not have the right to its full value if it is damaged or destroyed. Other parties that have a financial interest in this property usually require that the named insured provide coverage for their interests as well as its own. This endorsement lists those other interests and explains how losses are adjusted with and paid to them.

AG 12 22–Additional Insured–Building Owner

This endorsement identifies and includes the building owner as a named insured under a tenant's building coverage.

AG 12 23–Joint or Disputed Loss Agreement

This endorsement states the procedures to be followed and the payments to be made that involve losses where one insurance company writes the property coverage and a different one writes Equipment Breakdown Coverage.

CATEGORY AG 13–VALUE REPORTING FORMS AND ENDORSEMENTS

AG 13 01–Value Reporting Form

Value reporting ensures that the insured never pays for higher limits on covered business personal property than it has to but is still adequately insured to value. An unusual feature of this endorsement is that buildings are also eligible for reporting.

Related Article: Value Reporting Form

AG 13 02–Report of Values

This report is used with AG 13 01–Value Reporting Form to submit the periodic reports of value as of the dates on the endorsement schedule.

AG 13 03–Supplemental Report of Values

This supplemental report of values form is used with AG 13 02 when additional space is needed to report values.

CATEGORY AG 14–ADDITIONAL PROPERTY COVERAGES/MISCELLANEOUS ENDORSEMENTS

AG 14 01–Scheduled Location

This endorsement changes coverage from applying on a blanket basis to applying on the traditional scheduled basis but only for locations on the endorsement schedule. This allows the named insured to retain the flexibility of blanket coverage for some locations and have the more rigid scheduled basis apply to others. Provisions for newly acquired or constructed property are added because such property is covered automatically when blanket coverage applies; this automatic coverage does not occur for scheduled property. It also introduces coinsurance provisions and penalties for direct damage coverage. Automatic increase, agreed value, and other valuation options can also be selected for the designated locations. Preservation of Property is part of this endorsement. It insures covered property that must be moved from a covered location to keep it from loss or damage by a covered cause of loss. This coverage pays for any loss or damage to such property during and following the move.

AG 14 02–Property and Additional Coverage Exclusion

This endorsement enables the named insured and the insurance company to exclude certain covered property or additional coverages. It is used to tailor AG 00 01 to respond to different situations and for different reasons.

AG 14 03–Blanket Coverage per Schedule on File

This endorsement permits scheduling specific items of mobile equipment along with their limits. The limit entered is the only one that applies to that particular item. However, this endorsement does not mention revising the valuation section. This means any loss payment is still subject to the valuation section.

AG 14 05–Scheduled Mobile Equipment

The blanket coverage for mobile equipment is restricted to only the scheduled specific items of mobile equipment and their limits. The limit entered is the only one that applies to that particular equipment item. However, the endorsement does not revise the Valuation Loss Condition, and any loss payment is still subject to it.

CATEGORY AG 15–TIME ELEMENT FORMS AND ENDORSEMENTS

AG 15 01–Business Income and Extra Expense caused by Dependent Properties–Broad Form (04 13 changes)

This endorsement replaces the dependent property additional coverage in the coverage form. Only losses due to the described dependent locations are covered, whether contributing, recipient, manufacturing, or leader locations. If a loss occurs at any listed location due to a covered cause of loss, the full Business Income and Extra Expense limit that applies at the named insured's locations that are dependent on that scheduled location. Coverage can be extended to include loss due to direct damage at a secondary dependent property.

The following commercial property article is helpful in understanding dependent property coverage.

Related Article: CP 15 08, CP 15 09, CP 15 01, CP 15 34, AND CP 15 02–Time Element Dependent Properties Coverage Forms

AG 15 02–Business Income and Extra Expense caused by Dependent Properties–Limited Form (04 13 changes)

This endorsement is similar to AG 15 01 except that it requires a separate and specific limit of insurance for business income and extra expense for each listed dependent property location. That limit is a separate Business Income limit of insurance. The 04 13 edition adds certain provisions to provide coverage for designated Secondary Contributing Locations and Secondary Recipient Locations. It also adds a reference to complying with ordinances or laws.

The following commercial property article is helpful in understanding dependent property coverage.

Related Article: CP 15 08, CP 15 09, CP 15 01, CP 15 34, AND CP 15 02–Time Element Dependent Properties Coverage Forms

AG 15 03–Business Income Report/Worksheet (04 13 change)

This worksheet helps the named insured determine the appropriate limit of insurance to carry and also to satisfy the coverage forms reporting requirement. It is mandatory when business income is written on an agreed value basis and must be resubmitted at each anniversary.

Note: The 04 13 change is a minor change in wording that does not affect coverage.

The following commercial property article is helpful in understanding how to complete this worksheet.

Related Article: CP 15 15–Business Income Report/Worksheet

AG 15 04–Utility Services–Time Element (04 13 changes)

Business Income and Extra Expense Coverage can be extended to cover losses caused by or that result from failure of off-site utility services. The services that can be covered are water, wastewater removal, communications (with or without overhead lines), and power supply (with or without overhead lines). Any combination of services may be covered. The limit is part of the limit of insurance, not in addition to it, and is an extension of coverage, not an additional coverage.

AG 15 05–Payroll Limitation or Exclusion (04 13 title and other changes)

This endorsement allows the insured to completely exclude payroll expenses for selected groups of employees. The expenses may be totally excluded or be limited to only a certain number of days. The 04 13 edition eliminates the term “ordinary payroll” and increases flexibility by introducing scheduling options. This approach means that the insured can carry a lower limit of insurance in return for a premium surcharge. Coverage applies to payroll expense incurred during the period of restoration or any extensions of it. The number of days of payroll coverage is not required to be consecutive.

AG 15 06–Power, Heat, and Refrigeration Deduction

This endorsement enables the insured to deduct from the time element limit the costs of power, heat, and refrigeration consumed in production operations that do not continue under contract after a loss occurs. This permits the insured to purchase lower limits without incurring a coinsurance penalty.

AG 15 07–Limited Worldwide Business Income and Extra Expense Coverages

This endorsement extends the Business Income and Extra Expense/Dwelling Loss of Use coverage territory to any place in the world. It does not include property in transit or at locations the named insured owns, leases, or operates. The limit is $50,000. Coverage can be restricted to the countries or jurisdictions listed on the endorsement schedule. Coverage disputes must be filed in courts of law in the United States, including its territories and possessions, Puerto Rico, or Canada.

AG 15 10–Discretionary Payroll Expense

This endorsement provides coverage for job classifications or specific employees described and for the number of days on the endorsement schedule without requiring that they be necessary to resume operations.

AG 15 12– Off Covered Location Interruption of Business - Vehicles and Mobile Equipment (02 14 addition)

The loss of income due to interruption of the named insured’s operations because a scheduled vehicle or mobile equipment is covered when the loss is due to covered causes of loss. Collision and/or overturn can be added as a cause of loss by scheduling it on the endorsement.

CATEGORY AG 99–SPECIAL PROVISIONS

AG 99 01–Amendment of Coverage Territory–Business Personal Property off Covered Location

This restrictive endorsement excludes Business Personal Property Off Covered Location Additional Coverage when such property is in the countries or jurisdictions listed on the endorsement schedule.

AG 99 02–Tentative Rate

This endorsement is a hedge that should be used only when sufficient time is not available to adequately evaluate new construction. A rate is developed based on available knowledge. After the needed additional information is developed, the actual rate is determined, and because of this endorsement, that amended rate is applied retroactively to the coverage inception date.

AG 99 03–Alcoholic Beverages Tax Exclusion

Alcoholic beverages are subject to significant federal and state taxes that are paid in advance. These taxes are refunded if a loss prevents the beverages from entering the marketplace. As a result, the limit of insurance for any alcoholic beverage entity should exclude the taxes. The problem with this is that these taxes are not refunded if the loss is due to theft. This endorsement recognizes the problem and allows these taxes to be excluded for everything except theft losses.

The following commercial property article is helpful in understanding this endorsement.

Related Article: CP 99 10–Alcoholic Beverages Tax Exclusion

AG 99 04–Distilled Spirits and Wines Market Value

This endorsement recognizes that alcoholic beverages are unique. It values distilled spirits and wines at their current market value but goes even further and recognizes the difference between more aged and less aged bulk distilled spirits and irreplaceable bulk distilled spirits. Anyone who works with wineries or any business involved with alcoholic beverages should review this endorsement carefully.

The following commercial property article is helpful in understanding this endorsement.

Related Article: CP 99 05–Distilled Spirits and Wines Market Value

AG 99 05–Agricultural Selling Price–Finished Stock Only

The stock already sold but not delivered is valued at its selling price. Other finished stock is valued at its replacement cost. This endorsement extends the selling price option to all finished stock, not just stock already sold.

AG 99 07–Cannabis Exclusion (12 19 addition)

Related Article: Cannabis Exclusion Endorsements

AG 99 08–Cannabis Exclusion with Hemp Exception (12 19 addition)

Related Article: Cannabis Exclusion Endorsements

CATEGORY IL–INTERLINE ENDORSEMENTS

IL 00 03–Calculation of Premium

This endorsement is used on multi-year or continuous policies to inform the insured that the premiums are subject to annual review, re-rating, and adjustment.

IL 00 17–Common Policy Conditions

Related Article: IL 00 17–Common Policy Conditions Analysis