CA 00 20–MOTOR CARRIER COVERAGE FORM ANALYSIS

(October 2019)

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INTRODUCTION

CA 00 20–Motor Carrier Coverage Form is designed for the motor carrier industry and can be used by any person or organization that is transporting anything for commercial purposes. The transporting may be for others, but it is not a requirement. With the elimination of CA 00 12–Truckers Coverage Form, this is the only ISO auto form specifically designed for the trucking industry. However, it is important to remember that motor carriers and trucking operations can also be written using CA 00 01–Business Auto Coverage Form.

This analysis is based the 10 13 edition of this coverage form. Changes from the previous edition are in bold print.

CA 00 20 opens by defining the terms you or your as the named insured and we, us and our as the insurance company that is providing the coverage. Named insured is not defined so it means only the entities on the declarations. All other definitions are found in Section V–Definitions.

SECTION I–COVERED AUTOS

Numbers are used to describe which autos are covered and for what coverages. These symbols are defined in the Description of Covered Auto Designation Symbols.

The Motor Carrier Declarations contains spaces next to each of the coverages in which symbols can be entered. The entry of a symbol means that the coverage applies. The entered symbol explains what types of vehicle have that specific coverage.

A. Description of Covered Auto Designation Symbols

61–Any Auto

This is the broadest symbol designation and has no limitations or restrictions. Vehicles defined as autos in this coverage form are covered, subject to certain exclusions and conditions. Because of the broad scope of the coverage provided, many insurance companies are reluctant to use this symbol. Even if a company uses it for liability, it may not do so for physical damage. No other symbol should appear in the same box when Symbol 61 is used.

62–Owned Autos Only

This symbol means that any auto the named insured owns is covered, including those acquired after the inception date. In addition, any owned or non-owned trailer pulled by an owned vehicle is covered when this symbol is used with covered autos liability coverage.

Note: The definition of trailer includes semitrailers and dollies that convert a semitrailer into a trailer.

63–Owned Private Passenger Type Autos Only

This symbol means only the named insured's owned private passenger type autos, including those acquired after the inception date.

Note: The term private passenger auto is not defined in the coverage form. However, according to ISO rules pickups, panel trucks and vans are considered private passenger for rating purposes as long as they are not used in business. This lack of definition could result in disputes.

64–Owned Commercial Autos Only

This symbol means any truck, tractor or trailer the named insured owns, including those acquired after the inception date. For covered autos liability coverage, it also means any non-owned trailer attached to an owned power unit.

65–Owned Autos Subject To No-Fault

This symbol applies to vehicles licensed or garaged in a state where no fault coverage is available but applies only to those autos that are required to have such coverage. Coverage also extends to such autos acquired after the inception date in addition to those the named insured owned on the inception date.

66–Owned Autos Subject To a Compulsory Uninsured Motorists Law

This symbol applies to any auto the named insured owns that is garaged or licensed in a state that requires the named insured to carry uninsured motorists coverage. It also applies to any auto acquired after the inception date.

Note: This symbol does not apply to vehicles licensed or operated in states that allow the named insured to formally reject Uninsured Motorists coverage.

67–Specifically Described Autos

Only autos specifically scheduled and for which a premium charge is made are covered. Similar to Symbol 62 above, the covered autos liability coverage provided extends to any non-owned trailer pulled by this type of owned vehicle.

68–Hired Autos Only

This symbol means that only autos the named insured leases, hires, rents or borrows are covered. This symbol has a significant limitation. It does not include leased, hired, rented, or borrowed vehicles that are owned by an employee, partner, member of a limited liability company, or members of any of the preceding groups’ households.

69–Trailers in Your Possession under a Written Trailer or Equipment Interchange Agreement

This symbol applies only to trailers and related equipment that the named insured does not own. Furthermore, these trailers must be in the named insured’s possession and the named insured must be legally responsible for that trailer based on a written trailer or equipment interchange agreement.

70–Your Trailers in the Possession of Anyone Else Under a Written Trailer Interchange Agreement

This symbol applies to owned or hired trailers that the named insured leases, loans, or rents to others, but only when those trailers are subject to a written trailer interchange agreement between the named insured and that other party.

Section IV-Physical Damage Coverage Exclusion B.2.a, Trailer Interchange does not apply when this symbol is entered on the declarations.

71–Nonowned Autos Only

This symbol applies only to autos the named insured uses in its business but that it does not own, lease, hire, rent, or borrow. Private passenger type autos owned by employees, partners in the case of a partnership, members in the case of limited liability companies, or members of the preceding group’s households are included. Coverage applies only when such vehicles are being used in the named insured's business or its personal affairs.

79–Mobile Equipment Subject to Compulsory or Financial Responsibility or Other Motor Vehicle Insurance Law Only

This symbol means that land vehicles that meet the definition of mobile equipment except that they are subject to state mandated registration and/or licensing are covered. This symbol is needed because of recent state laws that are mandating that certain types of mobile equipment be registered and/or licensed. The symbol applies only in those states where the mobile equipment must comply with motor vehicle laws.

Note: Several issues arise concerning symbol use such as instances when more than one symbol is needed.

Example: Hurryup Transport wants all of its commercial vehicles covered, as well as any hired or non-owned vehicles. Hurryup's insurance agent requests symbol 61 but the insurance company offers symbols 64, 68, and 71 in order to limit coverage to the exposure presented on the application.

Manuscript Symbol

An additional manuscript symbol not mentioned in the Motor Carrier Coverage Form is available by adding endorsement CA 99 54–Covered Auto Designation Symbol. Symbol 72 is available for the Motor Carrier Coverage Form and applies based on what is listed and described on the endorsement.

Example: Hurryup Transport wants covered autos liability coverage for all of its owned vehicles and physical damage coverage on all owned vehicles except the concrete mixer it owns and leases to Good Deeds, LLC, a local not-for-profit masonry contractor, for $1.00 a year. Good Deeds provides all liability and physical damage coverage. As a result, symbol 72 is used for Hurryup’s liability and physical damage coverage. The description/definition for symbol 72 is: "All owned autos, except the concrete mixer."

B. Owned Autos You Acquire After the Policy Begins

1. If Symbols 61–Any Auto, 62–Owned Autos Only, 63–Owned Private Passenger Type Autos Only, 64–Owned Commercial Autos Only, 65–Owned Autos Subject To No-Fault, 66–Owned Autos Subject To A Compulsory Uninsured Motorists Law or 79–Mobile Equipment Subject To Compulsory Or Financial Responsibility Or Other Motor Vehicle Insurance Law Only are used for coverages indicated on the declarations, autos of the type described by such symbols that the named insured acquires during the policy period are also covered.

2. When symbol 67–Specifically Described Autos is used, new autos acquired during the policy period are covered only if one of the following applies:

· The insurance company covers all vehicles the named insured already owns

· The new vehicle replaces a scheduled vehicle.

In either case, the named insured must inform the insurance company of the acquisition within 30 days of the acquisition date.

Example: Hurryup Transport has a fleet of tractor-trailer rigs, two pickup trucks and one private passenger vehicle. Symbol 67 is entered for all coverages provided but only the tractor-trailer units and pickup trucks are scheduled. The private passenger vehicle is insured elsewhere. There is no coverage for another pickup Hurryup purchases because it does not replace a scheduled vehicle and coverage is not provided for all owned vehicles.

Note: There is no reference to symbol 72 in this item. This means that newly acquired autos are not covered unless mentioned in CA 99 54 when the symbol is added.

C. Certain Trailers, Mobile Equipment and Temporary Substitute Autos

When covered autos liability coverage is selected based on entries on the declarations, additional categories of vehicles are added as covered vehicles.

1. Utility trailers having a load capacity of 2,000 pounds or less that are designed for travel on public roads are covered but only while they are being pulled by a covered auto.

Example: Hurryup Transport rents a trailer with a 2,000-pound load capacity to transport a 1,500-pound machine. The trailer qualifies as a covered auto as long as the named insured's covered vehicle pulls it.

2. Mobile equipment being carried or towed by a covered auto is covered.

Example: Hurryup Transport is towing a generator that is not secured properly and becomes uncoupled. It strikes and damages a Volkswagen. Hurryup Transport’s covered autos liability coverage responds to the damage to the Volkswagen.

3. If the named insured's covered, owned auto is temporarily out of service for repair or service or due to breakdown, repair, servicing, loss or destruction, a non-owned, temporary substitute is covered but only if the named insured uses it with the owner's permission.

Example: Bill, Hurryup’s owner, must drive to another state on business. He decides to rent a car for the trip. The rental is not automatically covered because symbol 67 is on the declarations. However, if Bill had put one of the scheduled pickups in for service and then rented a car for the trip, Hurryup would have auto liability coverage if Bill was involved in an accident.

SECTION II–COVERED AUTOS LIABILITY COVERAGE (10 13 Change)

A. Coverage

The insurance company pays amounts an insured is legally obligated to pay as damages because of bodily injury or property damage and certain types of pollution events (see definition of covered pollution cost or expense). However, the obligation to pay is triggered only by accidental occurrences involving vehicles covered under the Motor Carrier Coverage Form. An eligible pollution event is covered only if it is connected to a covered bodily injury or property damage loss.

Besides responding to valid claims, the insurance company has an obligation and a right to provide a legal defense related to a claim. The insurance company has sole responsibility as to which claims are denied, settled, investigated, or defended. All defense-related obligations end once an action is resolved by a settlement, a court award, or when the limit of insurance that applies is exhausted. This is true even if additional claims, losses, or suits are filed against the insured.

Example: Hurryup Transport does not properly maintain its oldest, large tractor-trailer unit. During its latest trip, the brakes failed, causing an accident that involved four vehicles and multiple claimants. The insurance company realized that Hurryup was at fault in the accident and settled out of court with as many of the claimants as the limits allowed. Once the limits were exhausted, the company no longer provided Hurryup with a legal defense against the remaining claimants and Hurryup was left to bear the entire cost of the remaining legal expenses by itself.

Related Court Cases:

Accident Caused By Driver Not Reported To Insurer Not Covered

Automobile Liability Insurance, Not General Liability, Covered Loading Accident

Ordinary Negligence in Ambulance Maintenance Resulting In Breakdown and Delay Did Not Establish Coverage for Claim

Note: These court cases do not specifically involve the Motor Carrier Coverage Form, but the coverage arguments still apply.

1. Who Is an Insured

a. The named insured is an insured for any covered auto.

b. Anyone else who has permission from the named insured to use a covered auto that the named insured owns, hires or borrows is an insured but there are some exceptions. The following persons are not insureds.

(1) The owner of the covered auto and any of the owner’s employees, drivers or agents are not insureds. Any other party from whom the insured hired or borrowed a covered auto is also not an insured.

(2) The named insured's employees or agents are not insureds if the employees, agents or members of their households own the auto.

Note: If an employee borrows her son’s car to pick a client up at the airport, that employee is not an insured.

(3) When the covered auto is being worked on, the individual doing the work is not an insured if he or she is in the business of selling, servicing, repairing, parking, or storing autos. However, those individuals are insureds if the named insured owns the business.

(4) Anyone moving property to or from a covered auto is not an insured but there are exceptions. The named insured’s partners, employees, and members of a limited liability company are covered, as well as lessees and borrowers of autos, including their employees.

Example: Bill allows Jack, one of his friends, to use one of Hurryup’s trucks to move his household property. Jack is not an insured when he loses control of his piano and it strikes his new neighbor.

(5) The named insured's partners or members are not insureds for a covered private passenger auto. However, this applies only when the owner of the covered private passenger auto is the partner or member or is a member of that partner or member’s household.

c. The owner of a trailer that the named insured hires or borrow is an insured. Others from whom the named insured hires or borrows trailers are also insureds. However, this status for the owner and for the others applies only while such trailers are attached to a covered power unit or, if not attached, are used exclusively in the named insured's business.

d. Any party that is leasing a non-trailer covered auto to the named insured is an insured only if all of the following apply:

There is a written agreement
The written agreement does not require the lessor to hold the named insured harmless
The leased auto is used in the named insured carrier-for-hire business

Employees, agents or drivers of the lessor are insured if the party leasing the auto to the named insured is considered an insured.

e. Parties that are liable for the conduct of any insured described above are insureds to the extent of their liability subject to the following exceptions not being insureds.

(1) A party that is a carrier-for-hire. That party’s agents and employee are also not insureds. This exception applies if either of the following applies:

The party is subject to motor carrier insurance requirements and does not use auto liability insurance to meet them
The party is not covered for primary hired autos liability that insures the parties that own the autos and their employees and agents while the hired autos are used exclusively in that party’s business.

This (1) does not apply when either of the following applies:

· The named insured and/or its employees is that party that is a carrier-for-hire

· The named insured uses a written agreement to lease an auto to the carrier-for-hire but only if that lease holds that carrier harmless.

(2) When a trailer is detached from a covered auto and is being transported, the rail, water, or air carriers providing the transport are not insureds. This applies only when the covered auto is being loaded, transported, or unloaded by the carrier.

Related Court Case: Told You So: Insurer Disclaims Coverage

Note: One of the important differences in Who Is an Insured in this coverage form compared to the old Truckers Coverage Form is the section related to the named insured’s business operations. The Truckers Coverage Form specifically referred to the named insured’s business as a trucker and to the operating rights granted by a public authority. The Motor Carrier Coverage Form does not make any such references.

2. Coverage Extensions

a. Supplementary Payments

The Motor Carrier Coverage Form provides six supplementary payments.

Payments made under this section do not reduce the limits available to pay for any loss.

These payments apply to any claim or suit the insurance company defends:

(1) All expenses the insurance company incurs.

(2) If a bail bond related to a covered accident is required, up to $2,000 is available to pay its cost. The bond could be for a traffic law violation but only if it is related to the covered accident.

The insurance company is not required to furnish the bond.

(3) The cost of bonds needed to release attachments in a suit filed against the insured are covered if the insurance company defends the suit. However, only the costs of bonds that are within the limit of insurance are covered.

The insurance company is not required to furnish such bonds.

(4) The insurance company pays reasonable expenses the insured incurs while participating in any loss-related investigation or defense. However, the amount of lost earnings is no more than the actual loss of earnings capped at $250 a day. Expenses are paid only when the insurance company requests the insured to assist.

(5) All costs taxed against the insured in a suit filed against it that the insurance company defends. This item does not include any attorney’s fees or expenses taxed against the insured.

(6) Interest on the full amount of any judgment that accrues after the judgment is entered. This applies only if the insurance company defended the action. Once the insurance company pays, offers to pay or provides the court with its share of a judgment, the insurance company no longer pays any interest.

b. Out-Of-State Coverage Extensions

This section provides two important coverage extensions when an insured is away from the state where the auto is licensed or garaged. They essentially make the insurance provided comply with any state financial responsibility law, no-fault, or other compulsory coverage. The two extensions are:

(1) The limit of insurance provided is automatically increased as needed to meet the limits required by a compulsory or financial responsibility law in the jurisdiction where the covered auto is being operated. An important note to this extension is that it does not apply to any law governing motor carriers, passengers or property.

Example: Hurryup Transport's Motor Carrier Coverage Form has a $50,000 limit of insurance that complies with the financial responsibility laws of the state where the vehicles are licensed and garaged. The federal requirements are $750,000. This extension does not increase this limit to meet the federal requirement.

(2) The Motor Carrier Coverage Form provides the minimum amounts and types of other coverages required of out-of-state autos by the jurisdiction where the covered auto is being operated. One such coverage is no-fault.

Example: Hurryup Transport is transporting honeybees from Gary, Indiana to Fort Myers, Florida. Henrietta, Hurryup's driver, has an accident in Gainesville, Florida. She has the required no-fault coverage but at a minimum limit because of this extension.

The insurance company does not pay anyone more than once for the same elements of loss because of these extensions. In other words, they do not duplicate any coverage or allow damages to be collected more than once.

Note: This section refers to Covered Auto Liability Coverage instead of just Liability Coverage. (10 13 change)

B. Exclusions

The insurance provided by this coverage form does not apply to the following:

1. Expected or Intended Injury

Any bodily injury or property damage the insured expects or intends to cause is excluded.

Note: This exclusion is intended to protect insurance companies from responding to damages or injuries the insured intentionally causes. It is in the public interest to prevent the insurance coverage from being used for gain, to injure competitors, as an instrument of revenge, or to cause any other deliberate harm. There is no ISO endorsement available to buy coverage for intentional acts or to delete this exclusion at the present time.

Example: Suburban Shippers is insured under a Motor Carrier Coverage Form and submitted a serious claim involving one of its drivers named Joe. He was driving his delivery route and was upset that he had been boxed in by someone who double-parked. While he attempted to nudge the other vehicle out of his way, he accelerated too hard and seriously damaged the other vehicle. Suburban's loss notice indicated that the damage was unintentional, but the insurance company denied the claim because it resulted from Joe's deliberate decision to try to move the other vehicle.

2. Contractual

Damages for bodily injury or property damage that result from liability the insured assumed in a contract or agreement are excluded with two exceptions. Coverage applies if the liability would have existed without the contract. Coverage also applies if the contract meets the definition of an insured contract. When a contract is an insured contract, coverage exists only if the loss occurred after the agreement had been made.

3. Workers Compensation

Coverage does not apply to any requirement or obligation the insured or its insurance company must assume due to any workers compensation, disability benefits, unemployment compensation, or similar law.

Note: This exclusion and the one that follows are intended to prevent double indemnification for an injury that should be covered under workers compensation or employers liability policies.

4. Employee Indemnification and Employers Liability

Any bodily injury to the insured's employee or the spouse, child, parent, brother or sister of that employee due to the employment of that employee or while the employee is performing duties of the insured’s business operations is excluded. This exclusion applies whether the insured is liable as an employer or in any other capacity, or whether the insured is obligated to share damages with or repay someone else who must pay damages because of the injury. This clarification is important because of the widespread use of contractors, subcontractors, independent contractors, or leased employees, and much of the uncertainty with respect to who is responsible.

This exclusion has two exceptions. Coverage applies to bodily injury to domestic employees who are not entitled to workers compensation benefits. Domestic employees are persons who perform household or domestic work primarily for a residence premises.

The second exception is for liability the insured assumes in an insured contract. The insured contract must be entered into prior to the loss.

5. Fellow Employee

It is important to remember that employees are considered insureds. As a result, exclusions 3. and 4. above could be circumvented if the injured employee could sue the fellow employee who actually caused the accident. This exclusion prevents that workaround. Bodily injury to a fellow employee of the insured that occurs as a result of or in the course of that employee’s employment is excluded. There is also no coverage for any relative of a fellow employee for consequential damages that arise from such an injury.

There are two ways to modify this exclusion. The fellow employee exclusion is deleted for all employees when CA 20 55–Fellow Employee Coverage is attached. CA 20 56—Fellow Employee Exclusions for Designated Employees/Positions is a modified version of the CA 20 55 that deletes the exclusion for only specific employees or specific positions.

6. Care, Custody, or Control

Property damage to, or covered pollution cost or expense to property the insured owns or transports or that is in its care, custody or control, is excluded unless such liability was assumed in a sidetrack agreement.

Example: Suburban Shippers has a heavy mess in one of its truck lots. Its driver, who is carrying a shipment of cement blocks did not make sure his rig’s wheels were level with the wheels of the trailer. When he pulled the rig out, the trailer lurched down a couple of inches, causing a quarter of the load to crack and crumble. There is no coverage for the damaged blocks under its Motor Carrier policy.

Notes:

The Motor Carrier Coverage Form protects the insured for its negligence and tort liability to others and does not apply to damages or injury to the insured.
A sidetrack agreement involves the owners of a premises and a railroad with respect to a railroad sidetrack (transfer or access track) on the insured's premises. The railroad allows the premises owner to use the sidetrack as long as it guarantees the railroad access to the sidetrack and agrees to certain conditions of property maintenance. It may also contain specified conditions of hold-harmless between the owner and the railroad.
The Business Auto Program does not supply any endorsements to cover property that is in the insured’s care, custody, control, or transported by the insured. However, varieties of inland marine coverages are available to address these exposures.

AAIS Motor Truck Cargo Legal Liability Forms

ISO Motor Truck Cargo Carriers Coverage Forms

7. Handling of Property

This exclusion works in conjunction with the ISO Commercial General Liability (CGL) Coverage Form so that no duplication of coverage applies. This exclusion states that no coverage is in place for bodily injury or property damage resulting from the handling of property until that property has been physically moved to the point or place where the insured accepts it to be moved into or on the covered auto. The CGL Coverage Form provides coverage until the property is moved to that point and after the property has been delivered. This exclusion states that Motor Carrier coverage ends once the property is moved from the covered auto at the point where the insured makes the final delivery.

8. Movement of Property by Mechanical Device

Exclusion 7. above and the ISO CGL definition of loading and unloading work in conjunction with this exclusion. It excludes bodily injury or property damage caused by the movement of any property by any mechanical device if it is not attached to the covered auto. Hand trucks are not considered mechanical devices. In other words, loading or unloading by conveyors, mobile carts, forklifts or any other mechanical device other than a handcart is excluded but may be covered by the CGL Coverage Form.

Related Court Case: Use of "Levalator" Is Not "Use Of Truck"

9. Operations

Any bodily injury or property damage that results from the operation of mobile equipment listed in paragraphs 6.b. and 6.c. of the definition of mobile equipment is excluded. Cherry pickers, air compressors, pumps, generators, sprayers, welding equipment, building-cleaning equipment, geophysical exploration devices, lighting or well servicing equipment are examples of such excluded equipment.

Bodily injury and property damage losses that are due to the operation of mobile equipment that is attached to equipment considered a Symbol 79 type vehicle are also excluded.

Note: Coverage for this exclusion is available in the ISO CGL Coverage Form.

10. Completed Operations

Coverage does not apply to any bodily injury or property damage due to the insured’s work after it is completed or abandoned. Work is defined as any work or operations the insured performs or has performed for it by others and includes materials, parts, or equipment furnished in connection with the work or operations. Work also includes any warranty or representation made with respect to the fitness, quality, durability, or performance of any item defined in the work.

The insured's work is considered completed whenever the first of any one of the following occurs:

All work called for in the named insured’s contract is completed
All work to be done at a job site is completed if the contract calls for work at more than one job site
When the work performed at a job site is put to its intended use by any party. There is an exception to this item. Work that is being used only by other contractors or subcontractors working on the same project is not to be considered completed.

If the insured's work requires service, maintenance, correction, repair, or replacement but is otherwise complete, it is considered complete.

Note: Coverage for this exclusion is available in the ISO Commercial General Liability Coverage Form.

11. Pollution

The term “pollutants” is defined later in this coverage form and is very important to this exclusion.

There is no coverage for any bodily injury or property damage that is due to pollutant discharge, dispersal, seepage, migration, release, or escape. This exclusion applies if the event actually happens but also applies if the bodily injury or property damage is because of a threat of an event or an allegation that the event happened.

This paragraph would exclude any and all auto-related pollutant events. However, the following three paragraphs modify this exclusion considerably and must be carefully reviewed.

a. This paragraph explains that this exclusion applies when the pollutants are in between the place they were and the place they are going to be. The pollutants or the property that contains the pollutants must be in one of the following circumstances:

The handling or movement into, onto or out of the covered auto
The actual transport by a covered auto
The towing of the covered auto
In the course or transit. The insured may be providing the transit, or the transit may be provided by others on behalf of the insured
In or upon the covered auto while being treated, processed, stored, or disposed of

This portion of the exclusion has an exception. The exclusion does not apply if the pollutants are fuels, lubricants, fluids, exhaust gases, etc., that are part of the normal electrical, hydraulic or chemical function of the covered auto. In order for the exception to apply, the pollutants must have been within the part of the auto which is designed by the manufacturer to hold, store, receive, or dispose of the pollutants prior to the accident.

Example: Justin drives a refrigerated tractor-trailer unit. Justin’s rig flips and the fuel and refrigerant create a pollution event. The loss due to the pollution generated by both is covered.

Mobile equipment that is considered auto because of paragraphs 6.b. or 6.c. in the definition of mobile equipment does not qualify for this exception if the event occurs during that equipment’s operations.

b. This paragraph explains that the pollution exclusion applies prior to the pollutant generating property being moved to where the insured will move it either into or onto a covered auto. This paragraph does not have the same exceptions that apply to paragraph a.

c. This paragraph explains that the pollution exclusion applies after the pollutant generating property has moved from the covered auto to its final delivery. This paragraph does not have the same exceptions that apply to paragraph a.

Paragraphs b. and c. of this exclusion do contain an important exception. The pollution exclusion does not apply if an accident occurs away from any owned or rented premises and the pollutants are not in or on a covered auto. This applies only if the property that generates the pollutant is upset, overturned, or damaged as a result of maintenance or use of a covered auto and the polluting event is caused directly by an upset, overturn, or damage.

Example: Oliver completes the pickup of the used grease. Unfortunately, instead of moving away from the tank, he crashes into the tank, releasing the residual grease in that tank. This is covered because the pollution event occurred off premises, after the pickup was complete and the use of the auto caused the accident.

Note: It is important to point out that this exclusion DOES NOT apply when a covered auto strikes another vehicle and the damages to that other vehicle result in a pollutant event.

CA 99 48–Pollution Liability–Broadened Coverage for Covered Autos–Business Auto and Motor Carrier Coverage Forms is available to provide a buyback for pollution coverage under a business auto policy. It changes the pollution exclusion in the Business Auto Coverage Form by excluding only liability the insured assumes under a contract or agreement.

Insurers and brokers that provide coverage on a variety of difficult, unusual or specialty pollution situations should refer to the Environmental Risks section in The Insurance Marketplace, a publication of The Rough Notes Company, Inc.

12. War

This exclusion unequivocally bars coverage for bodily injury or property damage related to war and similar military events. It is not affected by circumstances such as a formal declaration of war, that the war is a civil uprising, whether it involves government or civilian participants. The bottom line is that there is no coverage for loss related either directly or indirectly to war or warlike activity.

Note: There is no ISO endorsement available to buy back or delete this exclusion at the present time.

13. Racing

There is no coverage for any auto while being used in, practicing, or being prepared for any professional or organized racing, demolition contest, or stunts.

Note: Simply stated, vehicles are troublesome, even under regular operating conditions. They're heavy, difficult to control and can cause an incredible amount of damage. For these reasons, insurance companies are not interested in providing coverage in cases where vehicle owners deliberately operate their property in a reckless or dangerous manner.

C. Limit of Insurance

The most the insurance company pays for the total of all damages, including any covered pollution cost or expense resulting from any one covered accident, is the covered auto liability limit of insurance on the declarations. This limit applies regardless of the number of insureds, autos covered, vehicles involved in an accident, premium paid, or number of claims made.

Bodily injury, property damage and covered pollution cost or expense that arises from exposure to or continuation of similar conditions is considered to be resulting from a single accident and therefore subject to a single limit of insurance.

Example: The two named insureds on the Motor Carrier Coverage Form are Harris, Inc. and Jim Harris, the owner. Harris, Inc. owns several private passenger vehicles that Jim uses for both business and pleasure. One evening while using a vehicle on a personal errand, Jim crashes into another automobile. The injured party sues Jim as an individual for $500,000 and Smith, Inc. as the vehicle owner, also for $500,000. The Motor Carrier Coverage Form limit of insurance is $500,000. However, even though the claimant is awarded $1,000,000 or $500,000 from each of the named insureds, the $500,000 limit of insurance is all that is paid.

The final paragraph of this section applying to the limit of insurance states that no one is entitled to receive duplicate payments for the same elements of loss under this coverage form, any coverage endorsement, or any other endorsement attached to it.

CA 99 27–Split Liability Limits is available to amend the Liability Limit of Insurance. It changes the liability limit of insurance from a single limit to a split limit for bodily injury liability each person, bodily injury each accident, and property damage each accident.

Note: This section refers to Covered Auto Liability Coverage instead of just Liability Coverage. (10 13 change)