Problems viewing this email? Click Here

December 11, 2014  

 Q&A of the Week

Symbol 1 Coverage under the BAP

An Iowa subscriber recently asked the following question:

We have a major discussion going on about the coverage with a commercial client. The commercial client purchased a new vehicle three months into his policy period. He has symbol 1 on the BAP for coverage. We understand that during that policy period the client has automatic liability coverage for a newly acquired vehicle.

Symbol 1 says coverage exists until the end of the policy period. When that policy renews, and the insured does not place that vehicle onto the policy at renewal, is there then coverage for that vehicle if there is an accident for liability? It is no longer a newly acquired vehicle, but an owned vehicle that is in regular daily use.

ANSWER:Symbol 1 makes any auto a covered auto, so even if the insured does not place the vehicle onto the policy he has liability coverage. It is up to the insurer to attach the proper premium for that vehicle at the end of the policy period while conducting the audit. There are no exclusions to prevent coverage, and the insuring agreement and symbol 1 are the primary considerations. Read More

 What's New This Week in FC&S
Jewelers Block Coverage Form
The Jewelers Block Coverage Form, written subject to commercial inland marine rules and forms promulgated by Insurance Services Office (ISO), provides open perils coverage specifically tailored for the needs of insureds in the retail jewelry trade. Coverage is written on a nonreporting basis using form CM 00 59 01 13 and is available at standard rates to retailers with average inventories no larger than $250,000. This article offers an analysis of the changes in the CM 00 59 01 13 from the earlier CM 00 59 03 10 form. Read More
 Litigation Watch
Conflicting State Policies on Stacking

The insured brought an action against the auto insurer to recover stacked uninsured motorists (UM) benefits under policies issued in California. This case is Wilkeson v. State Farm Mut. Auto. Ins. Co., 329 P.3d 749 (N.M App. 2014)..

Wilkeson and Baca were involved in an auto accident in New Mexico. Baca was uninsured, and Wilkeson had two separate auto policies written by State Farm (separate premiums were paid for these two policies). Both policies provided UM coverage subject to limits of liability of $50,000 per person and $100,000 per accident.

The claims against Baca were settled and he was dismissed from the case. State Farm paid the $50,000 UM benefit and filed a motion for summary judgment, arguing that its auto policy did not permit the stacking of UM benefits. Wilkeson responded with a cross-motion for summary judgment. The district court sided with State Farm and this appeal followed.

The Court of Appeals of New Mexico noted that generally, in determining the appropriate law to apply when an accident occurs in one state (New Mexico, in this instance) and an insurance contract has been entered in another (California, in this instance), the law of the place of the accident applies to determine the plaintiff's right to recover from the negligent party, and the law of the place of the contract applies to interpret the terms of the contract. Thus, in this case, New Mexico law applies concerning issues of negligence and damages, and California law governs as to issues pertaining to the insurance policies, including the scope of the language limiting plaintiff's ability to stack UM coverages. Read More

 FC&S Ask the Experts
Did you realize that the Q&A section of FC&S is made up of questions submitted by subscribers like you?

Paid subscribers to FC&S Online or print FC&S Bulletins are invited to submit insurance coverage questions to the editors. We'll provide a personalized opinion within five business days. (We'll let you know if it will be longer than that. Sometimes we have to gather research or other supporting materials).

Who knows? Your question may be featured (anonymously) in the online Q&A of the Week or as an FC&S update.

Submit your coverage interpretation question right to the editors of FC&S for quick and reliable information. Ask our expert staff a question by clicking here.
 Maximize Your FC&S
 Online Subscription!
FC&S editors regularly conduct web-based demos of the service. Feel free to contact Christine Barlow, cbarlow@, to set one up! They only take 30 minutes, a small investment of time that will help you learn all that FC&S Online has to offer.
 Contact Us
As always, your comments and questions are welcome.

Contact us at:
FC&S Department
Phone: 800-543-0874
Fax: 859-692-2293
The Zalma Insurance Claims Library
Insurance Claims: A Comprehensive Guide
The only source you'll need to successfully handle insurance claims from start to finish. More Info
Construction Defects Coverage Guide
Your single-source for identifying, insuring, investigating, prosecuting, and defending cases that result from construction defect claims. More Info
Mold Claims Coverage Guide
This guide will allow you to handle mold insurance claims and litigation resulting from mold or fungi related disputes with confidence. More Info
For more information about these titles Click Here
FC&S Team
Kelly Maheu, J.D.
  Diane W. Richardson, CPCU
Consulting Editor
Christine G. Barlow, CPCU
Managing Editor, FC&S
  Diana B. Reitz, CPCU, AAI
Consulting Editor
David D. Thamann, J.D., CPCU, ARM
Managing Editor, FC&S Bulletins
  Katherine S. Caudill, J.D.
Manager of Product Development
Susan L. Massmann, CPCU
Managing Editor, Electronic Publications
  Emily Brunner
Online Print/Production Editor
Donald S. Malecki, CPCU
Contributing Editor
  Tosha Brinkman
Marketing Manager
Barry Zalma, Esq., CFE
Contributing Editor
  Donna Cozatchy
Creative Director
This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is sold with the understanding that the publisher is not engaged in rendering legal, accounting or other professional service. If legal advice is required, the services of a competent professional person should be sought.

To ensure future delivery of email, please add
to your address book, contacts or safe sender list.

You have received this email at %%merge members_.emailaddr_%%.
Click here to unsubscribe from %%merge list.descshort%%.
©2014 Summit Professional Networks, All rights reserved. Privacy Policy
4157 Olympic Blvd., Suite 225
Erlanger, KY 41018