ISO's I.D. Theft Coverage Gets Regulators' Okay

NU Online News Service, Oct. 25, 9:54 a.m.EST?Insurance Services Office, Inc., Jersey City, N.J.said its newly- introduced policy language for insurers to use inoffering identity theft and fraud protection has so far beenapproved by regulators in 30 jurisdictions.

The endorsement, filed with insurance regulators in August thisyear, would be effective March 2003.

ISO said it developed the optional endorsement under itsHomeowners 2000 program that insurers can offer homeowners andother consumers.

The new ISO endorsement for identity-fraud expense coverage willhelp homeowners, condominium unit owners and renters defraynecessary costs for rectifying their credit-history reports.

The optional endorsement provides up to $15,000 of coverage foran insured's expenses directly resulting from an identity frauddiscovered or known during the policy period.

These expenses include:

? Costs for notarizing fraud affidavits or similar documentsattesting to fraud.

? Costs for certified mail to law-enforcement agencies,financial institutions and credit agencies.

? Lost income ? up to a maximum of $200 a day and total paymentsnot to exceed $5,000 ? from time taken off from work to meet withlaw-enforcement personnel or credit agencies.

? Fees for reapplying for a loan when the application isrejected solely because of incorrect credit information received bythe lender; and

? Reasonable attorney's fees to defend the insured againstlawsuits and remove criminal or civil judgments.

"Identity theft is one of the fastest-growing white-collarcrimes in America. Our new optional endorsement provides insurersthe standardized policy language on coverage that consumers canconsider to protect themselves against this serious personalexposure," said Kevin B. Thompson, ISO's vice president of personaland standard commercial lines.

ISO provides information, products and services related toproperty and liability risk for a spectrum of commercial andpersonal lines of insurance.