CA DS 21–MOTOR CARRIER DECLARATIONS

(October 2022)

INTRODUCTION

The Insurance Services Office (ISO) advisory CA DS 21–Motor Carrier Declarations is made up of seven different items or sections. Each insurance company develops its own declarations based on this one because the coverage provided in the coverage form is based on entries made on the declarations.

This review is based on the 10 13 edition. Changes from the prior edition are in bold print.

ITEM ONE

General Information

This section identifies and provides basic information about the named insured and other general information, such as:

The insurance company name
The producer’s name
The named insured
The address where policy related information is to be mailed.

The policy period, including inception and expiration dates, commencing at 12:01 Standard Time at the above mailing address.

Example: The Trucking R Us policy address is in Chicago. It has trucks on the road throughout the United States and Canada. Its policy period is 4/1/2021 – 4/1/2022. When a rig has an accident at 11:00 PM on 3/31/2023 in California, coverage is not in effect because it is 1:00 AM on 4/1/2022 in Chicago.

· The previous policy number

The named insured(s) form(s) of business
Note: The form of business is used to determine who is an insured. When there are multiple named insureds, there may be multiple forms of business.

The insuring agreement stating that, in exchange for payment of the premium and subject to the policy's terms, the insurance company agrees to provide the insurance included in the coverage form
The total premium due at inception
The premium audit period, if subject to audit
Endorsements attached to and making up part of the policy at inception

Note: Two endorsements are listed in this section, but there are spaces for more:

IL 00 17–Common Policy Conditions
IL 00 21–Broad Form Nuclear Exclusion

Countersignature block for the authorized representative, including name, title, signature and date signed
A space for the facsimile signatures of officers of the insurance company, if not indicated elsewhere

ITEM TWO

Schedule of Coverages and Covered Autos (10 13 change)

This is the staging point for all coverage. A mistake in this area could result in coverage denial.

A premium entered in the far right column of a coverage row shows that coverage applies. The word Included may be used instead of an actual premium amount. No entry in that column means that no coverage applies, even if entries are made in other columns for that coverage.

Once that premium selection is made, an entry is required in the limits column. A limit of insurance must be entered if Covered Autos Liability, Auto Medical Payments, Uninsured Motorists, and Underinsured Motorists coverages are selected. A limit of insurance and a per-trailer deductible must be entered if Trailer Interchange Comprehensive, Trailer Interchange Specified Causes of Loss Coverage or Trailer Interchange Collision coverage is selected.

Deductibles must be entered if Comprehensive, Specified Causes of Loss, and Collision coverages were selected. An amount for each disablement of a private passenger auto is required when Physical Damage Towing and Labor coverage is selected. No entry is required when Personal Injury Protection (PIP) is selected; instead, there is a reference to the specific PIP forms.

The final entry is the Covered Auto symbol. This symbol is explained in the Motor Carrier Auto Coverage Form. The symbol is used to describe the autos/vehicles that are considered covered autos.

One or more of these symbols must be entered for coverage that has been selected:

61–Any Auto

62–Owned Autos Only

63–Owned Private Passenger Type Autos Only

64–Owned Commercial Autos Only

65–Owned Autos Subject To No-Fault

66–Owned Autos Subject To a Compulsory Uninsured Motorists Law

67–Specifically Described Autos

68–Hired Autos Only

69–Trailers In Your Possession Under A Written Trailer Or Equipment Interchange Agreement

70–Your Trailers In The Possession Of Anyone Else Under A Written Trailer Interchange Agreement

71–Non-Owned Autos Only

79–Mobile Equipment Subject To Compulsory Or Financial Responsibility Or Other Motor Vehicle Insurance Law Only

Useless Trucking, Inc. purchases a motor carrier coverage form and completes Item Two as follows:

Coverage	Covered Auto	Limit	Premium
Covered Autos Liability	1	$1,000,000	Included
Auto Medical Payments	1	$ 10,000	Included
Uninsured Motorists	1	$1,000,000	Included
Underinsured Motorists	1	$1,000,000	Included
Trailer Interchange Comprehensive coverage	69,70	$25,000/$1,000	Included
Trailer Interchange Collision Coverage	69,70	$25,000/$1,000	Included
Physical Damage Comprehensive Coverage	7	$500	Included
Physical Damage Specified Causes of Loss Coverage	7	$500	Included
Physical Damage Collision Coverage	7	$1,000	Included

These entries mean that Useless has covered auto liability, auto medical payments, uninsured motorists and underinsured motorist coverage for any vehicle – owned, hired, borrowed, leased, nonowned, commercial and private passenger. Useless has trailer interchange coverage for trailers it owns and leases out and also for any trailers of others it might lease. The physical damage coverages are restricted to only those autos that are scheduled in Item three below.

ITEM THREE

Schedule of Covered Autos You Own

This item is completed only if symbol 67 is entered in the covered auto column in Item 2. Coverage applies only to the vehicles entered and only when a particular coverage has a premium charge.

This item consists of four (see note below) types of information.

Covered Auto Number
Principal Garaging Town and State of the Vehicle

Note: This is NOT the mailing address. If vehicles are taken home by employees, it would be that employee’s town and state. If vehicles are kept at a central location, it is the town and state of that central location. The garaging location is used in determining premium, so mistakes will result in premium discrepancies. Intentional misrepresentation of the garaging location could result in voidance of coverage.

Covered Auto Description identifies the characteristics of the vehicle, including its Vehicle Identification Number (VIN), make, model and year.
Classification provides original cost new, radius, use, size, age, code and secondary rating.
Loss payee is needed because any loss settlement must include the loss payee
Coverages–Premiums, Limits and Deductibles are displayed for each covered item. Deductibles and limits can be entered. Any entries made apply instead of the entries in Item Two but only for the designated vehicle.

Note: There’s no longer a request for purchase information beyond the applicable auto’s Original Cost New. Change in 10 13 edition.

Example: Useless schedules three vehicles in Item three. He describes each vehicle by providing the garaging location, a description of the vehicle and its classification information. However, no entries are made in the Coverages- Premiums and Deductibles because Useless does not want any changes from what was scheduled in Item two.

ITEM FOUR

Schedule of Hired or Borrowed Auto Coverage And Premiums

Note: This Item is changed significantly in the 10 13 edition.

This section is used only when either Symbol 61 or Symbol 68 is entered for any coverage in Item two. Item four does not provide coverage but instead provides only rating and premium information. The declarations introduced with the 10 13 edition rephrases the titles, adding phrase “Cost of Hire Rating Basis,” and using modifiers of “Covered Auto,” and “Your” in order to make the language more specific to a given named insured.

There are a number of schedule options that must be selected based on the use of the hired autos and the coverage. This item is used when either Symbol 61 or Symbol 68 is used. These are the rating schedules for the coverage provided.

This Item has six schedules.

Covered Autos Liability Coverage–Cost Of Hire Rating Basis For Autos Used In Your Motor Carrier Operations (Other Than Mobile Or Farm Equipment)
Covered Autos Liability Coverage–Cost of Hire Rating Basis For Autos Not Used In Your Motor Carrier Operations–(Other Than Mobile Or Farm Equipment)
Physical Damage Coverage–Cost Of Hire Rating Basis For All Autos–Other Than Mobile Or Farm Equipment
Cost Of Hire Rating Basis For Mobile Or Farm Equipment–Physical Damage Coverages
Cost Of Hire Rating Basis For Mobile Or Farm Equipment (Other Than Physical Damage Coverages)
Rental Period Rating Basis For Mobile Or Farm Equipment

The cost of hire must be entered in all schedules except for Rental Period Rating Basis for Mobile or Farm Equipment. There are two different definitions of “cost of hire”:

The cost of hire for motor carrier operations liability coverage is defined as the costs for the automobile hire plus the remuneration of the operator and any helper. Operator and helper pay is included even when they are the lessee's employees. All other costs making up part of operating the vehicle must also be included, regardless of who pays or absorbs the cost.
The cost of hire for all other vehicles and coverages is the amount the named insured incurs to hire vehicles not owned by the named insured, a partner, an employee or an employee’s family members. There are no additional charges.

All schedules use state-based rates. As a result, the entry must be by state and by coverage. However, this does not apply to liability coverage for hired autos used in motor carrier operations. This coverage is subject to one rate for all states.

Hired farm or mobile equipment can be rated based on either cost of hire or the rental period. When equipment is rented, the rental period schedule requires the name of the city or town and state where a job is located.

ITEM FIVE

Schedule for Non-Ownership Liability

This item is the schedule for Non-Ownership Liability. It is completed if symbol 61 or 71 is used for liability coverage. It uses the number of employees and/or number of partners as the rating basis.

ITEM SIX

Trailer Interchange Coverage

This item is almost identical to the information provided in Item two. The only difference is that the premium is called estimated premium while the premium in Item two is called premium. The only entry required is the estimated premium.

ITEM SEVEN

Schedule for Gross Receipts or Mileage Rating Basis

Coverage can be schedule rated or rated on a gross receipts or mileage basis. The gross receipts or mileage bases allows risks to more easily incorporate their costs into the rate structure for their customers. The calculation and eligibility are explained in Rule 42 for Public Autos and Rule 75 for Leasing and Rental Concerns.

Once the decision is made to use a gross receipts or mileage basis, the appropriate information is entered in this section by checking whether the risk uses gross receipts or mileage and then entering the estimated gross receipts or mileage in the spaces provided. The last spaces provided are for the premiums. The insurance company may determine a minimum premium and enter it in the space provided. All premiums are estimated.

Note: There are three separate per location schedules, but each requires a business headquarters location.

The type of business defines gross receipts.

Motor carrier gross receipts are the named insured's earnings from transporting or shipping property. The named insured may or may not originate the shipment. It includes money from equipment rental (as long as the renter is not a carrier for hire) plus 15% of the equipment rental amount for equipment rented to carriers for hire. Advertising revenue, taxes collected separately and sent to a governmental division, and Cash On Delivery (C.O.D.) collections for the cost of mail or merchandise, including collection fees and warehouse storage fees, are subtracted.
Public auto gross receipts are amounts the named insured earns by transporting persons or property. It does not include amounts the named insured must pay to railroads, steamship lines, airlines and other motor carriers that operate under their own permits. Advertising revenue, taxes collected separately and sent to a governmental division and Cash on Delivery (C.O.D.) collections for the cost of mail or merchandise, including collection fees, are subtracted.
Rental or leasing concerns gross receipts are amounts the named insured earns by leasing or renting autos to other. The named insured must not include drivers.

The type of business defines mileage. It is not an option for motor carriers.

Public autos mileage includes the total mileage on revenue producing autos during the policy period. It includes both chargeable mileage and non-revenue producing mileage.
Rental or leasing concern mileage is the total mileage on autos the named insured rents or leases to others without drivers. It includes both chargeable mileage and non-revenue producing mileage.