Educational Track - University CE Webinar Information

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  Upcoming University Webinar - Qualifies For CE in States Listed Below

CE Webinar Instructor Bio Description

Date: April 28, 2015
Topic: Workers Comp Deductible

Frank Pennachio

Time: 9:00am-10:00am PT /10am-11am MT/11am-12pm CT/12pm - 1pm ET
States Approved in:

CE Approved States CA, WA
  ALL Webinars can be attended for educational purposes in all states



CE Webinar Instructor Bio Description

Date: April 29, 2015
Topic: Hidden Language & Hideous Endorsement in Commercial Lines

Al Parizo

Time: 9:00am-11:00am PT /10am-12pm MT/11am-1pm CT/12pm - 2pm ET
States Approved in:

CE Approved States CA, CO, FL, ID, NV, NY, TX, UT, WA
ALL Webinars can be attended for educational purposes in all states

ALL WEBINARS ARE FREE TO UNIVERSITY MEMBERS! Non-Members of the University can Register for CE for $60 for classes with 2CE.

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Questions & Answers

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Newest Question

Question 1 -  Client has two manufacturing plants 150 miles apart. Both produce the same product. When setting the BI/Extra Exp limit the insured points out if one plant had a loss he would simply shift production to the other plant.  He would incur an extra expense of shipping his product from the other plant and possibly some labor increase, but he would have only a small percentage of actual loss of business. 

Problem:  If one uses a normal business interruption worksheet he would be forced through coinsurance to purchase a huge limit which makes no economic sense. I posed this question to several seminar speakers over the year and pretty much was told there is no real solution. One could strictly purchase Extra Expense, but that leaves him bare for the actual BI which though small could still hit half mil.  

What would you as the Agent suggest to the client?


Answer by Laurie Infantino AFIS, CISC, CIC, CRIS, ACSR, CISR
President of Insurance Community Center

I would suggest you consider the Maximum Period of Indemnity option which provide 120 days coverage with no monthly maximum applicable.  Do it on the combo form so they get the EE.  There is no coinsurance on this option. No penalty for not having the right amount…it is a more expense form from a rate factor standpoint but you are writing a lot less limit.

Question 2 -

Hi Laurie, I have a coverage scenario to run by you.  I have an answer but wanted to get your feedback.

A patriarch (Mr K) of a business who no longer has ownership in the business continues to work for the business.  Mr K leases his vehicle (that he owns and is registered to him) to the company and it is put on the business auto policy for coverage.  Mr K drives the leased vehicle for the business use and his own personal use.

Is Mr K not covered when he drives the leased vehicle (for the business use AND his personal use) due to the exceptions in A.1.b.(1) & (2) of the Business Auto Coverage Form?  And if not covered, what is the best approach to get him coverage?

I feel that there is no coverage for Mr K when he drives the leased vehicle that he owns due to A.1.b.(1) & (2) and the best way to get coverage for him driving the vehicle is to; 1) add him as a Named Insured so he becomes a "you" and not an "anyone else" or 2) put the vehicle ownership & registration in the company name.

Thoughts?  I appreciate any feedback you can provide.  Some have said to add the Lessor AI endorsement but that doesn't seem to work cause some versions have the lessor as owner exception in them.

Answer by Al Parizo, AFIS

This commercial auto endorsement (CA 99 47) may be used to afford coverage on a primary basis on an auto that is owned by an employee of the named insured and is described on the endorsement. The described auto will be considered a covered auto the named insured owns and not a covered auto the named insured hires, borrows, or leases. The difference is important because, under the CA 99 47 endorsement, the policy would provide primary coverage for those vehicles. An unendorsed commercial auto policy would only provide excess coverage" (IRMI article, available on line).

I am attaching a copy of CA 99 47 for your review. This appears to be a viable solution to the scenario described.


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