Virtual University | Endorsements

“Leaseback” of a Personally-Owned Auto Done Right

Personally-owned autos belong on a personal auto policy (PAP), but occasionally a commercial insured intentionally or unintentionally includes one or several personally-owned auto(s) on its business auto policy (BAP). Commercial clients may do this for one of many reasons; but when a commercial client intentionally or unintentionally includes a personally-owned auto on the BAP, the agent must ascertain the legitimacy of the vehicle’s inclusion on the BAP. The primary goal of this article is to allow agents to answer the question, “When is the inclusion of a personally-owned auto on the BAP legitimate and proper?”

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2 Overtly Useless BAP Endorsements

Lawyers make life interesting for the insurance industry. Often we outsmart them by creating endorsements to satisfy a request that, in effect, really do nothing other than make the lawyers feel good. That’s the effect of these two endorsements.

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Business-Use Auto Titled in Business and Individual’s Name

Small businesses are facing problems when buying a commercial auto for business use – banks often require the business and the business owner’s name be on the title. This has the appearance of creating coverage problems, but none really exist. However, to avoid any question or appearance of a coverage gap, the agent can take specific steps to avoid improper denials.

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Does a Sole Proprietor Need Symbols 8 & 9 AND Drive Other Car Coverage?

BAP Symbols 8 and 9, Drive Other Car coverage, and the Individual Named Insured endorsement…which is appropriate under what circumstances? Confusion abounds!

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Care, Custody & Control in the BAP

The issue of 'care, custody and control' in insurance policy exclusions will probably be debated until the end of time. In this article, we'll explore the issue of 'CCC' with regard to auto exposures. Our analysis considers the exclusion in the context of an actual claim and presents some possible alternatives for handling such exposures for 'non-garage' types of businesses via several policy forms and endorsements.

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Individual Named Insured vs. Drive Other Car Endorsements

One of the most frequently asked questions about the Business Auto Policy (BAP) is when and why do you use the Individual Named Insured endorsement (CA 99 17) as opposed to the Drive Other Car - Broadened Coverage for Named Individuals (CA 99 10) endorsement. Also, how do these endorsements affect a Personal Umbrella Policy?

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Triggering Coverage Under the Individual Named Insured Endorsement

For coverage, individuals must be named on the Drive Other Car (DOC) endorsement. Is the same true for the Individual Named Insured (INI) endorsement? Does the individual's name or names need to be listed on the actual INI endorsement or is it all right if they are just listed individually as named insureds on the declarations page for the business auto policy?

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What's the Difference Between a Leased and Rented Auto?

The insured has had exclusive use of a moving van for over six months. It is in their possession every day and is never returned except for required routine maintenance provided by the owner. The insured pays for the truck on a month-to-month rental basis...there is no long-term lease. How can this be covered under their commercial auto policy?

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