Summary: There are a multitude of ISO commercial auto endorsements, and year by year, the list keeps growing. Rather than attempt a discussion of all of the endorsements in one commentary, we will provide a listing, brief discussion and explanation of each of the endorsements by the way they are categorized by ISO – Amendatory endorsements (Categories 01 and 05), Cancellation and Suspension endorsements (Category 02), Deductible endorsements (Category 03), Additional Coverage endorsements (Category 04), Specialized Types endorsements (Category 20), Uninsured Motorists endorsements (Category 21), No-Fault endorsements (Category 22), Commercial Auto endorsements (Category 23), Public Transportation endorsements (Category 24), Garage endorsements (Category 25), Single Interest endorsements (Category 26), Additional Garage endorsements (Category 27), Special Types endorsements (Category 28), and Common Coverages and Rating Procedures endorsements (Category 99).

This is the first of these discussions, which will address Categories 01, 02, 03 and 05.

Subsequent articles will discuss:

Here is a list of all approved forms for commercial auto.

Topics covered:

Limited Mexico coverage CA 01 21

Reinstatement of insurance CA 02 38

Suspension of insurance CA 02 40

Deductible liability coverage CA 03 01

Non-Ownership liability coverage for volunteers CA 05 24

Partners or members as Insureds CA 05 25

Limited Mexico Coverage CA 01 21

CA 01 21 10 13 extends the coverage territory to include Mexico, but only for accidents or losses occurring within 25 miles of the U.S. border, and for trips into Mexico of ten days or less. So, for example, if the insured businessman drives his covered auto into Mexico to sign a contract and has an accident there, CA 01 21 can provide him with some insurance coverage. Of course, there are limitations.

The insurance provided by CA 01 21 is excess over any other collectible insurance. If a loss to a covered auto occurs in Mexico, the insurer will pay for the loss in the U.S.; the insurer is trying to make sure the repair work is done in the United States. And, the insurance does not apply if the covered auto is not principally garaged and principally used in the United States, or to any insured who is not a resident of the United States.

The endorsement points out that auto accidents in Mexico are subject to the laws of Mexico and that Mexico considers any auto accident a criminal offense as well as a civil matter. Furthermore, the coverage provided under CA 01 21 may not be recognized by Mexican authorities. The insurer notes that the insured should consider purchasing auto coverage from a licensed Mexican insurance company before driving into Mexico.

Reinstatement of Insurance CA 02 38

Endorsement CA 02 38 10 13 is used to reinstate coverage when coverage has been suspended at the insured's request.

Suspension of Insurance CA 02 40

The insured may request suspensions of coverage for periods of 30 or more consecutive days by attaching CA 02 40 10 13. The suspension is not available if a certificate has been filed to meet a state financial responsibility law, or in states where prohibited by state law or federal regulatory authority.

Unless the insured's request specifies a later date, reinstatement must become effective on the  day the company or any of its authorized agents receives the insured's request. The date of reinstatement may be indicated on the endorsement's schedule at the time coverage is suspended. If no reinstatement date is shown, or if the insured subsequently requests an earlier reinstatement date, endorsement CA 02 38 may be used to reinstate the coverage.

Deductible Liability Coverage CA 03 01

Endorsement CA 03 01 10 13 allows for owned and non-owned liability coverage to be written on a deductible basis. The deductible amount will apply to the loss portion of the claim, but not to expenses incurred by the company.  In certain states, endorsement CA 03 02 10 13 by the same title is used in lieu of CA 03 01, to meet specific state requirements.

Non-Ownership Liability Coverage for Volunteers CA 05 24

Endorsement CA 05 24 11 20 was newly introduced in 2020. The endorsement extends liability  coverage to individual volunteers while using their personal autos or other non-owned autos in connection with the named insured's business. Coverage can also extend to anyone who provides the volunteer with the auto used in the business activity, but only to the extent of liability arising out of that activity. "Volunteer" is a defined term, to mean:

… a person, who is not your "employee", and who donates his or her work and acts at the direction of and within the scope of duties determined by you, and is not paid a fee, salary or other compensation by you or anyone else for their work performed for you.

The endorsement contains a schedule so if desired, the coverage can be restricted to only that specified activity(ies) described in the schedule.

While the endorsement provides coverage for the volunteer's liability, it does not cover any injury to the volunteer or the spouse, child, parent, brother or sister of that volunteer arising as a consequence of the activity.

So for example, a volunteer is driving their own car to pick up some supplies for the insured's event, at the direction of the insured. The volunteer runs a red light, crashing into another vehicle, and sustains paralyzing injury. In this case, the volunteer's liability to the other vehicle and its occupants will be covered, but the injury to the volunteer will not be covered. Even if a spouse files suit against the insured, there will be no coverage for such a suit.

Partners or Members as Insureds CA 05 25

Endorsement CA 05 25 11 20 was newly introduced in 2020. The endorsement extends liability coverage to partners or LLC members while using autos owned by them or members of their household in connection with the named insured's business operations, including auto dealerships.

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