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News

RLI PUP Policy Form Changes

Bulletin – Wednesday, June 16, 2010

 

PUP Policy Changes 

RLI rates and policy forms will change effective 7-1-2010 for new and renewal business in all states except CT where it is effective 9-1-10. 


The Personal Umbrella Policy Provisions will undergo a significant revision for the first time in many years. This new policy form will be uniform countrywide. State amendatory endorsements will now be used. Several of the changes are designed to clarify RLI’s intent – not to change it. All of RLI’s new policy forms are available through the Portal. Here are highlights of the policy provisions changes – a policy provisions document with the changes in red is available online. RLI is sending a Policyholder Notice with all renewal policies. Please make sure your clients are aware of the changes that may affect them.
 
Please familiarize yourself with the changes.  RLI’s intent is not changing but they are clarifying that intent to avoid confusion. Share this information with all of the producers in your office. When underwriting or coverage intent is in doubt, ask Tuscano!  Old communications with guidance  or interpretation may no longer be accurate. 
 

Policy Provision Changes 

 
PART I – DEFINITIONS (pages 1-2)
 
The following definitions were revised:
A. Automobile
B. Basic Policy or Policies
M. Recreational Vehicle
N. Relative
O. Self Insured Retention
 
The following definitions were added:
J. Private Passenger Motor Vehicle
L. Punitive or Exemplary damages 
 
PART II – WHO IS COVERED – INSUREDS (pages 2-3)
 
The following changes were made to this section:
  • States that a person or organization caring for your or a relative’s animal is covered only if the occurrence arise out of their custody of such animal.
  • States that the owner of an automobile, recreational vehicle or watercraft borrowed or rented by you or your relative is not covered.
 
PART III – WHAT WE WILL DO (pages 3-4)
 
The following changes were made to PART III regarding:
  • Our right and duty to defend.
  • Our intent regarding payment of premiums for appeal bonds.
  • Our responsibilities should the insurance company providing an underlying policy become insolvent. 
 
PART IV - WHAT IS NOT COVERED – EXCLUSIONS (pages 4-6)
 
Changes were made to the following exclusions regarding:
A. Business use of an automobile.
G. Your activities as a board member or officer of a not for profit corporation or organization.
I. Intentional, purposeful, or criminal Act.
K. Uninsured/underinsured motorists coverage and no-fault or other first-party benefits.
O. Injury arising out of speed contests or racing of an automobile, recreational vehicle or watercraft.
Q. Discrimination.
R. Lead.
T. Coverage for rental properties.
U.1. Entrustment of real property, automobile, recreational vehicle or watercraft to others.
U.2. & U.5. Coverage for injury caused by animals.
V. Speed and length criteria for watercraft exclusion.
W. Fungi
 
These additional exclusions were added:
Z.  Punitive and exemplary damages exclusion
AA.  Prior personal injury exclusion
  • Moved the pollution exclusion from a mandatory policy endorsement into the policy provisions (exclusion BB.)
 
PART VI – CONDITIONS (pages 6-8)
 
  • We have combined PART V – YOUR CONDITIONS UNDER THIS POLICY and PART VII - OTHER CONDITIONS from the previous version of the Policy Provisions into PART VI – CONDITIONS
  • The Primary Insurance Requirements (condition A.) was incorporated from the Declarations to the Policy Provisions
  • Exemplary Damages (condition K.) was added

Changes were made to the following sections of Conditions:

B. Duties in the Event of an Occurrence Offense, Claim or Suit
D. Legal Action Against Us
E. Our Right to Recover Payment
J. Other Insurance
N. Concealment - Misrepresentation 
 
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