AAIS BOATOWNER PROGRAM OPTIONAL ENDORSEMENTS AND THEIR USES

(July 2018)

INTRODUCTION

The AAIS Boatowner program consists of a variety of optional endorsements to address different insurance needs that are not completely met by a base contract. The following listing identifies endorsements available to modify the American Association of Insurance Services Boatowner Coverage Form. It is arranged by form number and title and includes a brief explanation of the use of each form. This section does not include any state specific endorsements, changes or amendments. These forms and endorsements were updated to work with the 05 08 edition of the coverage form.

FORM NUMBERING

They consist of two letters (BT for this line of business), followed by a four-digit form number.

Optional Forms

BT 2000–Lay-Up Period Limitation

This endorsement documents the insured’s agreement that the covered boat (or boats) will be properly stored during the time period stated in the policy declarations. A boat may be placed in either dry-dock or ashore during the period of non-use as long as the storage method is a proper one for the particular watercraft. Except for granting permission to move a covered craft among different storage locations, an insured has no coverage for a loss that occurs while loading/unloading or otherwise using the boat during the stated lay-up period. A coverage exception exists for a covered boat that is being moved among storage locations.

BT 2001–Personal Watercraft Exclusion

This form modifies the boatowner special form policy by substituting a different definition of both “boat” and “business.” While the change does not affect the policy’s uninsured boater protection, it does have the significant result of removing coverage for property considered to be personal watercraft. It achieves this by deleting personal watercraft from the boat definition while adding a reference to the term to the business definition.

BT 2500–Expanded Emergency Service

This form may be used to increase the amount of emergency service (breakdown) protection from the $500 available under the unendorsed policy to the limit that appears on the declarations. Coverage is further expanded to add boat trailers to the covered item adding delivery costs and the changing of boat trailer tires to the coverage.

BT 3000–Personal Effects Coverage

This is another optional form that creates coverage under the boatowners policy for certain classes of non-boating personal property.

Related Article: BT 3000 –Personal Effects Coverage

BT 4500–Named Storm Deductible

When this form is attached to the boatowners policy, the deductible that applies to covered property is modified for a loss involving any storm that receives an official name from the National Oceanic and Atmospheric Administration. The deductible applies both to partial and total losses. The deductible that applies to such storms is:

$1,000
The deductible that appears on the declarations page
Five percent of the policy’s applicable covered property limit

whichever is the highest amount

BT 4800–Agreed Value Settlement Provision

This form is to accommodate boats that have an appreciating value that may only be acceptable for an insurer to protect according to an agreed value.

BT 6000–Additional Interests

This form permits an entity that has an insurable interest in property covered by an applicable boatowner policy to be formally added. Both the identity of the party holding the interest and the affected covered property appear in the form.

BT 6001–Additional Insured

This form is used to allow persons or organizations to be added to the boatowner policy as additional insureds. This is liability coverage and applies only to third party losses involving the named insured’s ownership or use of property covered by the boatowner policy. The additional insured must be notified of policy termination.

BT 6002–Loss Payee Provision

This form is used to recognize a loss payee interest on property that is covered on the boatowner form on an actual cash value basis. The affected property and the loss payee appear on the form. The form also explains the loss payee has limited rights to payment that are separate from the policyholder, exclusions affecting the loss payee and how the property’s insurance limit applies when a loss occurs. The actual cash value acts as the maximum possible amount recoverable. The loss payee must be notified of policy termination.

BT 6003–Agreed Value Loss Payee Provision

This form is used to recognize a loss payee interest on property that is covered on the boatowner form on an agreed value basis. The affected property and the loss payee appear on the form. The form also explains the loss payee has limited rights to payment that are separate from the policyholder, exclusions affecting the loss payee and how the property’s insurance limit applies when a total or partial loss occurs. The agreed value acts as the maximum possible amount recoverable, subject to salvage considerations. The loss payee must be notified of policy termination.

BT 6500–Change Endorsement

This form facilitates increasing limits and adding items to the boatowners policy. It includes all necessary identifying information on the applicable insured and policy and has liberal space for identifying the affected property (boat, motor, trailer, equipment, liability) and the effect on policy premium.

BT 6501 –Installment Premium Payments

This form is used on stand alone, multi-year policies and states that applicable premiums are due on a yearly basis on the inception and annual anniversary dates of that policy.

BT 6502 –Renewal Plan

This endorsement changes the policy from an annual policy with a set expiration date to a continuous policy that ends only if the named insured does not pay the required premium prior to the end of a current policy period.