AAIS has acted to respond to a recent change
in North Carolina regarding personal property coverage under
homeowners policies.
On Nov. 30, the North
Carolina Rate Bureau (NCRB)
notified companies that replacement cost coverage on personal
property can be made available under most owner-occupied homeowners
forms if the Coverage C (personal property) limit is 40% or more of
the Coverage A (dwelling property) limit.
Previously, the NCRB required the Cov. C limit
to be 70% of the Cov. A limit to convert from actual cash value loss
settlement to replacement cost settlement.
The
new rule is effective immediately, but does not
apply to tenants, unit-owners, or limited perils (HO 0008) policies.
The NCRB has jurisdiction over homeowners insurance in North
Carolina, and AAIS forms, endorsements, rules, and rating
information are required to be equivalent to those developed by the
NCRB. In light of that, AAIS has revised its Homeowners manual rules
to comply with the new directive, and will be asking the NCRB to file the
manual revision with the state's insurance department.
On Friday, Dec. 4, users of the AAIS
Inland Marine Guide will
receive a review and analysis of a ruling by the Kansas Court of Appeals
that addresses potential exposure under a contractors' equipment policy.
In the case, the appeals court overturned a summary
judgment by a lower court that had found no theft coverage under a
contractors' equipment policy for stolen air conditioners.
While the insurer argued that the air conditioners
were inventory rather than equipment, the appeals court ruled that those
categories are not exclusive of each other, and that the air
conditioners otherwise qualified as "equipment" used in the insured's
operations.
The appeals court opinion is unpublished, meaning
that it cannot be used as a precedent. In light of that, AAIS does not
plan immediate changes to its Contractors' Equipment forms to respond to
the ruling, but the implications of the case will be considered during
the next round of general revisions to those forms.
The South Dakota Division of Insurance recently
announced that the deadline for complying with bulletins 09-05 and
09-06 has been extended until Jan. 15, 2010.
Bulletin
09-05 requires that certificates or memoranda of insurance must
include statements that they do not alter the terms of coverage under
the referenced policies.
Bulletin
09-06 addresses cancellation provisions in certificates.
