Standard Commercial Auto Program
Introduction
March 17, 2010
Summary: Insurance Services Office (ISO) files on behalf of its member companies four standardized policies for insuring commercial automobiles: the business auto coverage form, the truckers coverage form (this form is being withdrawn from use by ISO), the garage coverage form, and the motor carrier coverage form. The four coverage forms are the focus of the Auto pages that follow this introduction. A complete listing of the various articles in these pages is on the Auto Contents page at the front of this tab.
Topics covered:
Commercial Auto Eligibility
The business auto coverage form is the most widely used policy in the commercial auto program. It is used for commercial auto risks that do not meet eligibility requirements for the other three policies. The truckers form (to be withdrawn from use) is issued to a person, firm, or corporation in the business of transporting property for hire for another. The garage form is issued to franchised and nonfranchised automobile dealers, repair shops, service stations, storage garages, public parking places, and franchised and nonfranchised trailer dealers. The motor carrier form is for a person or organization providing transportation by auto in the furtherance of a commercial enterprise.
Commercial Lines Manual Information
The automobile division, division one, of the commercial lines manual (CLM) contains general rules, loss costs, and common rating procedures that may apply to any of the four coverage forms of the commercial auto program. There are also specific sections for dealing with autos used for public transportation, special types of autos and operations not classified in the other sections of the division (e.g. ambulance services, antique autos, drive-away contractors), and rating procedures for certain types of coverage (e.g. rental reimbursement; tapes, records, and discs coverage; deductible insurance).
Private Passenger Type Autos
With respect to private passenger types, it should be noted that private passenger autos owned by an individual or by a husband and wife who are residents in the same household may be insured under the personal auto policy. A personal auto policy can also be used to insure private passenger autos that are owned jointly by two or more resident relatives, resident individuals, or non-resident relatives. (The personal auto policy is discussed in the Personal Lines volume of the FC&S Bulletins.) However, when it comes to a private passenger type auto owned by corporations, partnerships, unincorporated associations, or government agencies, a commercial auto coverage form should be used to provide the appropriate coverage. Also, it is common for a sole proprietorship that has both private passenger and other types of vehicles to insure all vehicles under one commercial auto policy.