P&C Commercial General Liability

 

Filing Review Requirements Regulatory Reference
or Source
Comments
FORMS
Applications
No filing requirement for applications (unless made part of the policy) Title 8, §3541 and §4205 Incorrect statements on the application shall not bar the right to recovery unless it was meant to deceive or unless it materially affected either the acceptance of the risk or the hazard assumed by the insurer.
Abuse
Sexual abuse exclusion permitted Department requirement We do not allow the exclusion of "physical" abuse or molestation.  Please see that the exclusion is limited to sexual abuse and/or molestation.
Alcohol
Exclusion not permitted Department requirement Acts committed under the influence may not be excluded.
Appeals
Limit of liability may be waived Title 8, §4203 The Company has unlimited liability should they appeal a case without the insured's consent.
Arbitration
Cannot be both binding and mandatory Department requirement Binding arbitration is not permitted if the process can be demanded unilaterally, since it may deprive the insured of access to the court system.
Asbestos
May not be excluded Department requirement May be approved by submitting a Individual Risk "Consent to Rate Application" if a known hazard exists. See Bulletin 111..
Bankruptcy Provision
Bankruptcy of the Insured cannot relieve the company of their liability Title 8, §4203  
Cancellation & Non-renewal
Days' Notice and Cancellation/Nonrenewal Reasons Title 8, §4711 - 4715 15 days' notice for cancellation for non-pay.
Policy can be cancelled for any reason within first 59 days - specific reasons required if in force 60 days or more.
45 days' notice of non-renewal required.
Claims Made Requirements
See comments Department requirement Claims made not permitted for basic CGL policy; with respect to claims made endorsements, please see the "Professional Liability" section of this document
Defense Costs
Defense Within Limits not allowed Department requirement Department will consider separate defense limit equal to the limit of liability.
Disclosure
Notice Requirements Regulation 78-1 (1) Insured must be given written notice when coverage has been modified or eliminated.
Drugs
Exclusion permitted subject to limitations Department requirement Exclusion must be limited to illegal drugs or legal drugs illegally used.
Electromagnetic Radiation
May not be excluded Department requirement No exceptions.
Filing Standards
Prior Approval Regulation I-2010-03 Forms must be submitted at least 30 calendar days prior to their proposed effective date.
Fraud
Guidelines Title 8, §4205 and §4711

If a policy is obtained through fraud or material misrepresentation, that policy may be voided.

Indemnity
Indemnity not generally permitted Title 8, §4203 Must be "Pay on Behalf of" in Coverage Grant (Indemnity may be permitted on certain specialized coverages.)
Lead
May not be excluded Department requirement May be approved by submitting an Individual Risk "Consent to Rate Application" if a known hazard exists. See Bulletin 111.
Liberalization Clause
Not required    
Loss Settlement
Loss Settlement and Payment Conditions Regulation 79-2; S6 (G)

After settlement has been agreed upon, insurer shall mail payment in amount agreed to claimant and/or loss payee within ten (10) working days, unless a further delay is mandated under an order by a court of competent jurisdiction or required by law. 

Pollution
May not be excluded except as noted. Bulliten 111

All insurers must provide coverage for pollution by endorsement, with limited exceptions. We will consider a "Consent to Rate" application for companies seeking to attach a pollution exclusion to liability coverage claim. We will approve the use of the exclusion only where there is an identifiable pollution exposure. 

Punitive Damages
May be excluded Bulletin 139  
Readability
Guidelines Regulation I-2010-03
 

Flesh score minimum is 40, not less than 10 point type, one point leaded. 

Tobacco
May not be excluded Department requirement No exceptions.
RATING
Open Competition, Use and File

Title 8, §4688

Loss Costs -Bulletin 99

Filing must be received within 15 days of effective date. Rate filing must include verifying material and actuarial backup. Rating guidelines and methodology need to be furnished for (a) rates. Simply stating that (a) rating applies is not acceptable.
Rating Plan Requirements
None specified