AAIS Filing New Forms, Loss Costs for Personal Inland Marine

New policy forms and loss costs will be available early next year to insurers writing inland marine property coverage for certain types of vehicles, and for boats and motors.

The American Association of Insurance Services (AAIS) said it has initiated a countrywide filing of five new classes of coverage under its Personal Inland Marine (PIM) Program: Golf Carts, Grounds Care Vehicles, Mobility Assistance Vehicles, Snowmobiles, and Boats and Outboard Motors.

The filings will have a proposed effective date of Feb. 1, 2010 in most states.

The base forms for each class provide open perils coverage for covered property indicated on the policy declarations, plus trailers for hauling the property. Coverage extensions are provided for insuring loss to detachable equipment related to the operation of the covered property, as well as for newly acquired and non-owned property.

The open perils coverage is subject to standard exclusions. In addition, there is an exclusion for loss or damage to tires, tubes, or wheels in three of the vehicle classes, and for runners, skis, or belt treads on snowmobiles. "Marine life" is explicitly added to the standard animal exclusion as an excluded cause of loss under the Boats and Outboard Motors base form.

Collision is an excluded cause of loss in the base forms for golf carts, grounds care vehicles, mobility assistance vehicles, and snowmobiles; but, under each of their respective base forms, collision coverage is available as an option by selecting it on the declarations. Collision coverage is built into the base form for boats and motors, as is customary in the marine market.

For four of the five classes (excepting mobility assistance vehicles) endorsements are available for adding coverage for medical payments and property damage liability.

The medical payments coverage is a strictly first party coverage, payable to insureds and permitted users of insured property. The property damage liability coverage option covers the insured's legal liability for damage to property of others caused by or resulting from the insured property; defense costs are included under the limit.
In addition, the Boat and Outboard Motors class includes an endorsement for providing emergency service coverage.

"These classes expand the coverage for certain types of vehicles beyond what is provided in homeowners policies and other coverage forms," says Pam Nykaza, AAIS senior product development specialist for inland marine and the principal developer of the new PIM classes. "Also, the coverages and exclusions under the new forms are tailored to the risks associated with these vehicles and boating risks."

AAIS develops standardized policy forms and rating information used by more than 600 property/casualty insurers throughout the U.S.