With a proposed effective date of January 1, 2024, ISO is making a revision to the Insuring Agreement of endorsement CA 04 65 Auto Hacking Expense Coverage to reflect that no only must the "auto hacking incident" have occurred/be occurring to a covered "auto" located within the coverage territory; but that the incident must also  be "discovered" during the policy period or within 30 days after the end of the policy period if there is no other insurance available to cover such incident.

  1. This insurance applies only if the "auto hacking incident":
  1. Has occurred or is occurring to a covered "auto" located within the coverage territory; and
  2. Is "discovered":

(1)  During the policy period shown in the Declarations; or

(2)  Within 30 days after the end of the policy period if no subsequent insurance is available to cover "auto hacking expenses" associated with such "auto hacking incident".

The newly added term "discovered" is defined to apply the reasonable person standard to an "auto hacking incident", meaning that the incident will be discovered when the insured first becomes aware of facts which would cause a reasonable person to assume that a hacking incident has occurred, rather than when the incident actually occurred. There will be no need to know the full details of the incident, nor the exact amount of the auto hacking expenses at the time of discovery.

For example, an insured notices that his company car's key fob works only sporadically, after having a new battery installed. During one incident, it would not work when he was on the job, and he had to rent a vehicle to complete the job.  He suspects that his car or the key fob itself has been hacked and notifies his employer of his suspicions. However, not having express knowledge of how a hacking incident occurs, he is  not able to explain the incident in full detail to his employer or the insurer. In this example, the time the auto hacking incident is discovered is the time when the employee notifies his employer of the stalled car incident and the employee's suspicions of a hacking incident.

  1. "Discovered" means the time when you first become aware of facts which would cause a reasonable person to assume that an "auto hacking incident" has occurred, regardless of when the "auto hacking incident" occurred, even though the exact amount of the "auto hacking expenses" or details of the "auto hacking incident" may not then be known.

These revisions are intended to provide clarification and as such are not a change in coverage.

Refer also to:

Includes copyrighted material of Insurance Services Office, Inc., with its permission.