In the BAC 2+8+9 Do NOT Equal Symbol 1

Insurance Services Office’s (ISO’s) Business Auto Coverage (BAC) Form (CA 00 01) protects the named insured (“you”) against the financial consequences of its legal liability for bodily injury or property damaged not excluded by the policy and arising out of the ownership, maintenance or use of a “covered auto.” This makes the covered auto symbols the key to the Business Auto Coverage Form. Each symbol grants insured auto status to a different class of vehicle.

Nine predefined coverage symbols (1 – 9) trigger protection to a progressively narrowing definition of insured vehicles. For example, Symbol 1 extends protection to “Any Auto,” while Symbol 7 provides coverage for only “Specifically Described Autos.” The ability to add “special instruction” symbols (10, 11, etc) exist beyond the nine specifically defined symbols. A relatively recent edition to the list of covered auto symbols is Symbol 19, which extends coverage for “mobile equipment” that, for whatever reason, must be registered for use on public roads.

Agents and underwriters may have competing goals in regard to the Symbols used. The agents’ goal is (or should be) to use the broadest symbol allowed to extend coverage to the greatest number of vehicle classes (owned, non-owned, hired or borrowed). The underwriter’s goal is to extend the appropriate amount of protection without extending too much protection; this decision may differ based on the entity type.

The 10 coverage symbols agents and underwriters often choose from are:

• Symbol 1 – Any Auto (the “King” of Symbols)
• Symbol 2 – Owned “Autos” Only
• Symbol 3 – Owned Private Passenger “Autos” Only
• Symbol 4 – Owned “Autos” Other than Private Passenger “Autos” Only
• Symbol 5 – Owned “Autos” Subject to No-Fault
• Symbol 6 – Owned “Autos” Subject to Compulsory Uninsured Motorists Laws
• Symbol 7 – Specifically Described “Autos”
• Symbol 8 – Hired “Autos” Only
• Symbol 9 – Nonowned “Autos” Only
• Symbol 19 – Mobile Equipment Subject To Compulsory Or Financial Responsibility Or Other Motor Vehicle Insurance Law Only

On Thursday, September 15, the Academy of Insurance leads you in a session discussing and detailing these 10 defined BAP coverage symbols. In addition, this session addresses some gaps created when certain symbols, or combination of symbols are used.

BUT what agents and underwriters may find most important is this session’s discussion and focus on entity type and why coverage symbols need to be different. For example, should you use the same symbols for a partnership, an LLC and a corporation?

Participants in this session learn:

• Why Symbols 2+8+9 do NOT equal Symbol 1
• The gaps in coverage created by underwriter’s “innocent” requests
• Why the “You” of the policy matters in relation to coverage symbols
• Which endorsements can be used to extend coverage to “unique” autos

Register now, space is limited.

Topics Auto