Though I’m now not a workers member of the Huge “I”, I proceed as a volunteer school member of the Digital College. About three weeks in the past, an company member submitted a query about main and noncontributory protection on umbrella insurance policies. It was his impression that you could possibly not add AI standing on a main and noncontributory foundation to umbrella and extra insurance policies, however an underwriter instructed him that, if such standing is offered on the underlying insurance policies, it extends to umbrella/extra insurance policies. His concern was that the underwriter had instructed him issues previously that later had been decided to be incorrect.
On this query, how an umbrella or extra coverage responds is determined by the language within the kind in query. By no means assume or generalize. Whereas umbrella and extra insurance policies typically lengthen AI standing, whether or not such standing is prolonged on a main and noncontributory foundation might rely upon the coverage language or statutory or case legislation coping with points similar to horizontal vs. vertical exhaustion of limits.
That being stated, in 2016 ISO launched main and noncontributory endorsements for each their umbrella and extra insurance policies (and their BAP):
- CA 04 49 11 16 – Main And Noncontributory – Different Insurance coverage Situation
- CU 24 78 11 16 – Noncontributory – Different Insurance coverage Situation
- CX 24 33 11 16 – Noncontributory – Different Insurance coverage Situation
These modifications had been launched on the request of the Huge “I” Technical Affairs Committee and/or the Huge “I” Mid-American Insurance coverage Convention (www.matcinsurance.com) to deal with the vertical vs. horizontal exhaustion requirement in an growing variety of development contracts. ISO has already performed this in 2013 for the CGL program with their new CG 20 01 endorsement.
So, absent any overriding extra-contractual legislation on the contrary, these endorsements can now be utilized by ISO subscribing carriers to adjust to contract necessities to supply main and noncontributory protection on CGL, BAP, and CUP/extra insurance policies.
Picture by Carlo Mirante