454.6-1

WT 04 01–ISO UNINSURED WATERCRAFT COVERAGE

(January 2023)

The WT 00 01–Watercraft Policy lists Part C as reserved for future use. This endorsement fills that gap and provides Uninsured Watercraft Coverage which is similar to uninsured motorists coverage. It is subject to all provisions and conditions within the WT 00 01 except as noted.

Schedule

An Each Accident Limit of Liability must be entered along with the policy premium. In some cases, the Watercraft Policy Declarations may have this coverage listed and then this schedule would not need to be completed.

Part C - Uninsured Watercraft Coverage

A. Insuring Agreement

1. The insuring agreement agrees to protect an “insured” against “bodily injury” damages caused by an accident with an uninsured watercraft. In other words, an insured boater can rely on his own policy to take care of injuries resulting from an accident where the person who caused the injuries lacks the coverage to take care of his or her legal obligation. However, this coverage is not bound by any judgment for damages that are determined by a lawsuit that’s filed without the company’s written consent.

2. The uninsured watercraft coverage insuring agreement defines who is considered an insured. An insured includes the named insured and resident spouse, any “family member,” and any other person “occupying” the covered watercraft. In addition, any person eligible for payment because of bodily injury damages suffered by an insured is an insured. Another such person is the executor of the insured’s who pays for the funeral expenses of an insured that dies from bodily injury in an accident with a watercraft that is not insured.

3. An “uninsured watercraft” is either of the following:

a. Any craft that is not subject to the financial protection of either a bodily injury liability policy or a bond.

Note: A craft could qualify as an “uninsured watercraft” if a bond or policy does apply but the writer of the coverage denies coverage or becomes insolvent.

b. A hit-and-run watercraft is also an “uninsured watercraft” when it hits the named insured (includes resident spouse) or a family member, any craft occupied by these classes of people, “covered watercraft” or a person being towed by a covered watercraft.

The definition of an uninsured watercraft doesn’t include any craft (including related equipment) that either belongs to or is regularly available to the named insured or any family member. Crafts used as a residence also are disqualified as uninsured watercraft. A craft that is protected under a lawful self-insurance arrangement is NOT considered uninsured, unless the self-insurer is insolvent at the time of a loss. Finally, craft owned by a government unit or agency is not considered uninsured.

B. Exclusions

1. The following situations are ineligible for protection against bodily injury:

a. No coverage exists for any insured if he or she is hit by or hit while occupying an owned watercraft or its trailer that isn’t protected under the Watercraft policy to which this endorsement is attached.

b. No family member is covered if they are hit by or occupying a watercraft that is owned by the named insured, but that is covered by any other policy.

c. No insured qualifies for uninsured watercraft coverage if a bodily injury claim is settled without the company’s consent.

d. No coverage exists if the insured is in a watercraft that’s transporting people or property for pay, or if the craft has been made available for charter.

Example: Sidney’s operating her mom’s outboard engine and boat that is substantially damaged when Sidney strikes a dock on the lake located at a large campground where she is vacationing. In order to make some spending money, Sidney’s been regularly using the boat to take other campers to and from fishing areas.

Scenario 1: At the time of the loss, Sidney was using the boat for her own pleasure – the loss is eligible for coverage.

Scenario 2: At the time of the loss, Sidney was returning a camper from a fishing area – the loss is ineligible for coverage.

e. No coverage exists for a loss involving watercraft operated or used without permission by the insured. However, the question of permission does not apply to a “family member” who is operating a “covered watercraft.”

2. No coverage exists under this form if coverage should be handled by workers compensation, Federal Longshore and Harbor Workers Compensation benefit, similar disability benefits law, or under The Jones Act.

3. No payments are made for amounts owed as either punitive or exemplary damages.

C. Limit of Liability

1. The monetary limit that appears on the endorsement schedule or on the policy declarations page is the maximum amount of coverage that is possibly available for all injuries to parties involved in a single, eligible incident. This maximum is not affected by the number of crafts, insureds, or claims involved, or the number of crafts or premiums appearing on the declarations page. The particulars of a given loss may well affect how payments may be distributed, but the maximum remains the maximum.

2. No duplicate coverage is available for a single element of loss that is also eligible for coverage by any other parts of the Watercraft Policy.

3. This coverage won’t pay for a single element of loss that already has been paid by any party responsible for that loss.

Example: Carla Applecheek and her son were on their way back home from a leisurely sail when they’re hit by Jonni, who was speeding around in his dilapidated power boat; he is not insured. The Applecheeks were injured, so they applied for coverage under the $25,000 uninsured boaters coverage part of their own policy Their company pays them $3,700 for their injuries but later, after finding out that Jonni paid them $1,250 that he was saving for a new boat, the insurer requires the Applecheeks to return an equal portion of the payment it made.

4. No coverage will be paid under this form if coverage should be handled by workers compensation, Federal Longshore and Harbor Workers Compensation benefit, similar disability benefits law, or under The Jones Act.

D. Other Insurance

If other sources of insurance or other policy provisions apply to an uninsured watercraft loss, this provision intends to make sure that such sources are contemplated when compensating an insured for a loss. This part takes financial consideration of the total amount of coverage available to pay for losses involving uninsured watercraft to ensure that any amount paid for a given loss is no higher than the greatest amount provided for a single craft.

Further, the total amount that may be paid on the loss may not exceed the total amount of primary and excess coverage available for any single watercraft. If the loss involves a non-owned watercraft, the uninsured watercraft coverage part responds on an excess basis, paying only after the other available coverage has paid its limit.

Regardless whether this part provides coverage on a primary or on an excess basis; it will only pay its proportionate share with other sources providing coverage on the same basis.

E. Arbitration

If the company and their insured aren’t on the same wavelength regarding whether an insured qualifies for loss payment or how much is due in an uninsured watercraft loss, the argument may go to arbitration. However, both the company and the insured must want the disagreement to be handled by representatives of their own choosing. A judge may be called upon to select a third arbitrator if this person isn’t selected by the first two arbitrators within 30 days.

Each party will handle their own out-of-pocket expenses, as well as share in the cost of the third arbitrator. The arbitrators must follow the local rules of law in their discussions.

Binding Agreement - The insurance company and the insured must accept the decisions agreed on by any two arbitrators as legally binding in the areas of determining a valid claim and the amount to be paid.

The process will be held in and controlled by the laws of the county of the insured’s residence.

F. Part E - Duties after an Accident or Loss

The following provision is added to this Part of the Watercraft Policy but only as regards the coverage granted under this endorsement.

A person who seeks coverage under this coverage has the obligation to quickly report a loss of any hit-and run incident and must send the insurance company copies of any legal papers related to a lawsuit.