DL 98 14–PERSONAL UMBRELLA LIABILITY POLICY EXCLUSION—DESIGNATED RECREATIONAL MOTOR VEHICLE ENDORSEMENT

(July 2019)

This form permits an insurer to specifically designate and exclude coverage under the Personal Umbrella Liability Policy for one or more recreational vehicles.

The Schedule

The form includes a schedule for describing the vehicle(s) that is/are disqualified from excess liability protection.

Coverage Analysis

This endorsement gives both a potential umbrella customer and the insurer some flexibility in providing umbrella coverage. The form works by adding an additional exclusion to the DL 98 01–Personal Umbrella Liability Policy. The exclusion makes both the “bodily injury” and “property damage” liability coverage inapplicable to any loss created by the incidences of ownership, use, maintenance or entrustment of any recreational vehicle that appears on the exclusion’s schedule.

Example: Paul is insured under a Personal Umbrella Liability Policy. His son is a member of the Young Woodsfolks Troop (YWT) 300. The YWT Troop Leader’s van is in the shop for repairs, so he asks Paul for help in arranging transportation for their weekend camping trip. Paul, who is the general manager for a RV dealership, lets the YWT Leader use his “demo” RV, which Paul is allowed to use too. This RV is listed on Paul’s umbrella policy endorsement DL 98 14, since it is available for his regular use; but it is insured by the dealership’s commercial auto policy. Should the YWT Leader cause an accident with the RV, Paul’s umbrella policy would not be liable for coverage.

Note: The bar to coverage applies on a specific, rather than a blanket basis. Therefore, a policy that has the DL 98 14 form attached may exclude a certain recreational vehicle, while providing full coverage to another.

Example: Let’s look at Paul and the YWT Leader again. Again, Paul is asked to save the Woodsfolks Troop 300 camping trip. Paul has access to his dealership’s “demo” RV and he also owns an older RV. Paul is unmoved by the YWT Leader’s request for the newer, larger, “demo” RV; however, he does let the leader use his personal RV. While the “demo” RV is shown on endorsement DL 98 14, Paul’s “owned” RV is documented as a covered vehicle in his underlying RV policy. The weekend of the camping trip, the YWT Leader causes a serious auto accident while using Paul’s personal RV. In this instance, Paul’s umbrella policy is available to respond to the loss.