Central Insurance Leads the Way on the “Where You Reside” Issue
From the Big “I” Virtual University VUpoint newsletter, Vol. 17, No. 1 - Issue #387 - Friday, January 8, 2016
Author: Bill Wilson
In an article
in the July 24, 2015 issue of this newsletter, we announced a negotiated resolution to the “Where You Reside
” issue. In an article
in the October 16 issue, we provided more detail on the changes filed by ISO. That was followed in the October 30 issue by another “next steps” article
. Since that time, we have attempted to find carriers who have adopted the mandatory ISO endorsement(s) but were unable to accomplish much. Recently, however, we learned of a carrier that has done that one better…they have decided to forego the mandatory endorsement(s) and incorporate ISO’s optional broadening approach into their HO forms.
Below is a copy of an announcement sent by Central Insurance Companies to their independent agency force where they state, “At Central, we feel occupancy should be an underwriting eligibility issue and not a coverage determination issue at the time of a claim.” As a result, Central has filed their own endorsements to completely remove the “where you reside” language. This is the solution that IIABA has been seeking with ISO for the past decade. Our consensus resolution with ISO was their introduction of a mandatory endorsement set that mitigates the exposure but does not completely eliminate it unless their broadening endorsement is used with the same inception and expiration dates as the HO policy it’s attached to.
If you are an agent for Central, we encourage you to contact them and express your appreciation for their initiative in leading the way to protecting insurance consumers. In several of the states where Central operates, courts have upheld claim denials that cited the “where you reside” language, an “exclusion” that consists of three words, buried in a definition, referenced from an insuring agreement. Thanks to Central, their insureds will not have to face the possibility of losing their homes due to this onerous policy language.
In addition to extending your appreciation to Central, we hope that you will bring this to the attention of other HO carriers you represent. Again, THANK YOU Central Insurance.