liberty mutual rate filings

7/26/2019 Liberty Mutual rate filings

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Created by SERFF on 08/25/2008 01:19 PM

SERFF Tracking Number: HCAS-125144697 State: New Jersey

First Filing Company: American Fire and Casualty Company, ... State Tracking Number: 07-0746

Company Tracking Number: CL20070052

TOI: 17.0 Other Liability-Occ/Claims Made Sub-TOI: 17.0001 Commercial General Liability

Product Name: General Liability Form & Rule Revision

Project Name/Number: General Liability Form & Rule Revision/CL20070052

Filing at a Glance

Companies: American Fire and Casualty Company, The Ohio Casualty Insurance Company, West American Insurance

Company

Product Name: General Liability Form & Rule

Revision

SERFF Tr Num: HCAS-125144697 State: New Jersey

TOI: 17.0 Other Liability-Occ/Claims Made SERFF Status: Closed State Tr Num: 07-0746

Sub-TOI: 17.0001 Commercial General Liability Co Tr Num: CL20070052 State Status:Filing Type: Form/Rule Co Status: Reviewer(s): Harvey Grossman

Author: Debbie May Disposition Date: 04/18/2007

Date Submitted: 04/03/2007 Disposition Status: Approved

Effective Date Requested (New): 07/01/2007 Effective Date (New): 04/18/2007

Effective Date Requested (Renewal): 07/01/2007 Effective Date (Renewal):

General Information

Project Name: General Liability Form & Rule Revision Status of Filing in Domicile:

Project Number: CL20070052 Domicile Status Comments:

Reference Organization: Reference Number:

Reference Title: Advisory Org. Circular:

Filing Status Changed: 04/18/2007

State Status Changed: Deemer Date:

Corresponding Filing Tracking Number:

Filing Description:

In accordance with the filing requirements of your state, we submit a revision to our General Liability program

incorporating a revised company rule and 2 new and 1 revised company forms as outlined in the enclosed Explanatory

Memorandums

Company and Contact

Filing Contact Information

Debbie May, Product Staff Underwriter [email protected]

9450 Seward Road (800) 843-6446 [Phone]










Fairfield, OH 45014-5456 (513) 603-3121[FAX]

Filing Company Information

American Fire and Casualty Company CoCode: 24066 State of Domicile: Ohio

9450 Seward Road Group Code: 148 Company Type:

Fairfield, OH 45014-5456 Group Name: State ID Number:

(800) 843-6446 ext. [Phone] FEIN Number: 59-0141790

---------

The Ohio Casualty Insurance Company CoCode: 24074 State of Domicile: Ohio




---------

West American Insurance Company CoCode: 44393 State of Domicile: Indiana




---------










Filing Fees

Fee Required? No

Retaliatory? No

Fee Explanation:

Per Company: No










Correspondence Summary

Dispositions

Status Created By Created On Date Submitted

Approved Harvey Grossman 04/18/2007 04/18/2007

Closed Harvey Grossman 04/04/2007 04/04/2007

Amendments

Item Schedule Created By Created On Date Submitted

Manufacturer

s or

Distributors

Extension

Amendment

of Limits of

Ins$50,000/100,

000

Form Debbie May 04/11/2007 04/11/2007

Manufacturer

s or

Distributors

Extension

Amendment

of Limits of

Ins

$100,000/200,000

Form Debbie May 04/11/2007 04/11/2007

Description of

Addl Optional

Endt -

Manufacturer

s or

Rate Debbie May 04/11/2007 04/11/2007










DistributorsExtension










Disposition

Disposition Date: 04/18/2007

Effective Date (New): 04/18/2007

Effective Date (Renewal):

Status: Approved

Comment: correction to the endorsement filed

Rate data does NOT apply to filing.










Item Type Item Name Item Status Public AccessSupporting Document P&C Cover Letter Yes

Supporting Document NAIC Uniform Property and Casualty

Transmittal Document - Read Long Desc

Yes

Supporting Document Explanatory Memorandum Yes

Supporting Document MARS002 - Final Printed Pages Yes

Supporting Document Side by Side Comparison for Forms Yes

Form Manufacturer or Distributors Extension Yes

Form (revised) Manufacturers or Distributors Extension

Amendment of Limits of Ins

$50,000/100,000

Yes

Form Manufacturers or Distributors Extension


$50,000/100,000

Yes



$100,000/200,000

Yes



$100,000/200,000

Yes

Rate (revised) Description of Addl Optional Endt -

Manufacturers or Distributors Extension

Yes

Rate Description of Addl Optional Endt -


Yes










Disposition

Disposition Date: 04/04/2007

Effective Date (New): 04/04/2007

Effective Date (Renewal): 04/04/2007

Status: Closed

Comment: This filing is not regulated for the following reasons: this filing covers product withdrawal expense coverage

and product recall expense coverage which appears on the "Exportable List" as item 21 - Products Liability or Products

Recall Coverage. Therefore, this is deregulated in accordance with the Commercial Insurance Deregulation Act of

1982, N.J.S.A. 17:29AA-1 et seq.

Rate data does NOT apply to filing.










Item Type Item Name Item Status Public AccessSupporting Document P&C Cover Letter Yes

Supporting Document NAIC Uniform Property and Casualty

Transmittal Document - Read Long Desc

Yes

Supporting Document Explanatory Memorandum Yes

Supporting Document MARS002 - Final Printed Pages Yes

Supporting Document Side by Side Comparison for Forms Yes

Form Manufacturer or Distributors Extension Yes



$50,000/100,000

Yes



$50,000/100,000

Yes



$100,000/200,000

Yes



$100,000/200,000

Yes

Rate (revised) Description of Addl Optional Endt -


Yes

Rate Description of Addl Optional Endt -


Yes










Amendment Letter

Amendment Date:

Submitted Date: 04/11/2007

Comments:

We need to make a correction to the endorsement numbers for the two Product Recall Expense Limit endorsements

that are used to increase the product recall coverage which is a part of the Manufacturers or Distributors Extension

Endorsement. We incorrectly used CG 85 04 05 07 instead of CG 86 04 05 07 for the Manufacturers Or Distributors

Extension Amendment Of Limits Of Insurance$50,000/$100,000 Endorsement and CG 85 05 05 07 instead of CG 86 05

05 07 for the Manufacturers Or Distributors Extension Amendment Of Limits Of Insurance$100,000/$200,000

Endorsement.

We have also revised the Rule 36 Exception to reflect the correct endorsement numbers.

Sorry for any problems this may have caused.

Changed Items:

Form Schedule Item Changes:

Form Form Edition Form Action Replaced Previous Readability Attachments

Name Number Date Type Form # Filing # Score

Manufacture

rs or

Distributors

Extension

Amendment

of Limits of

Ins

$50,000/100,

000

CG 86 04 05 07 Endorse

ment/Am

endment

/Conditio

ns

New 0 CG 86 04 05

07.pdf

Form Form Edition Form Action Replaced Previous Readability Attachments

Name Number Date Type Form # Filing # Score

Manufacture

rs or

Distributors

Extension

Amendment

of Limits of

CG 86 05 05 07 Endorse

ment/Am

endment

/Conditio

ns

New 0 CG 86 05 05

07.pdf










Ins$100,000/20

0,000










Rate/Rule Schedule Item Changes:

Exhibit Name: Rule # or Rate Previous State Attach

Page #: Action: Filing Numbers: Document:

Description of

Addl Optional

Endt -

Manufacturers or

Distributors

Extension

Rule 36 5-07 Replacement Rule 36 NJ.pdf










Form Schedule

Review

Status

Form Name Form # Edition

Date

Form Type Action Action Specific

Data

Readability Attachment

Manufacturer or

Distributors

Extension

CG 83 37 05 07 Endorseme

nt/Amendm

ent/Conditi

ons

Replaced Replaced Form #:

CG 83 37 05 04

Previous Filing #:

0.00 CG 83 37 05

07.pdf

Manufacturers or

Distributors

Extension

Amendment of

Limits of Ins

$50,000/100,000


nt/Amendm

ent/Conditi

ons

New 0.00 CG 86 04 05

07.pdf

Manufacturers or

Distributors

Extension

Amendment of

Limits of Ins

$100,000/200,00

0


nt/Amendm

ent/Conditi

ons

New 0.00 CG 86 05 05

07.pdf



COMMERCIAL GENERAL LIABILITYCG 83 37 05 07

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

MANUFACTURERS OR DISTRIBUTORS EXTENSION

This endorsement modifies insurance provided under the following:

COMMERCIAL GENERAL LIABILITY COVERAGE PART

Schedule

Limited Product Recall Expense Limit $25,000

Product Recall Aggregate Limit $50,000

I. Limited Product Recall Expense

A. The following is added to Section I - Coverages:

1. Insuring Agreement

a. We will reimburse you for "product withdrawal expenses" incurred because of a "product

withdrawal" to which this insurance applies.

The amount of such reimbursement is limited as described in Section III - Limits Of

Insurance. No other obligation or liability to pay sums or perform acts or services is

covered.

b. This insurance applies to a "product withdrawal" only if the "product withdrawal" isinitiated in the "coverage territory" during the policy period because:

(1) You determine that the "product withdrawal" is necessary; or

(2) An authorized government entity has ordered you to conduct a "product

withdrawal".

c. We will reimburse only those "product withdrawal expenses":

Which are incurred and reported to us within one year of the date the "product

withdrawal" was initiated.

d. The initiation of a "product withdrawal" will be deemed to have been made only at the

earliest of the following times:

(1) When you have announced, in any manner, to the general public, your vendors

or to your employees (other than those employees directly involved in making the

determination) your decision to conduct a "product withdrawal". This applies

regardless of whether the determination to conduct a "product withdrawal" is

made by you or is requested by a third party;

CG 83 37 05 07 Includes Copyrighted Material of ISO Properties, Inc., with its permission. Page 1 of 5



(2) When you received, either orally or in writing, notification of an order from an

authorized government entity to conduct a "product withdrawal"; or

(3) When a third party has initiated a "product withdrawal" and you communicate

agreement with the "product withdrawal", or you announce to the general public,

your vendors or to your employees (other than those employees directly involved

in making the determination) your decision to participate in the "productwithdrawal", whichever comes first.

e. "Product withdrawal expenses" incurred to withdraw "your products" which contain:

(1) The same "defect" will be deemed to have arisen out of the same "product

withdrawal"; or

(2) A different "defect" will be deemed to have arisen out of a separate "product

withdrawal" if

newly determined or ordered in accordance with Paragraph 1.b. of this endorsement.

2. Exclusions

This insurance does not apply to "product withdrawal expenses" arising out of:

a. Any "product withdrawal" initiated due to:

(1) The failure of "your products" to accomplish their intended purpose, including any

breach of warranty of fitness, whether written or implied. This exclusion does not

apply if such failure has caused or is reasonably expected to cause "bodily

injury" or physical damage to tangible property.

(2) Copyright, patent, trade secret or trademark infringements;

(3) Transformation of a chemical nature, deterioration or decomposition of "your

product", except if it is caused by:

(a) An error in manufacturing, design, processing or transportation of "your

product"; or

(b) "Product tampering".

(4) Expiration of the designated shelf life of "your product".

b. A "product withdrawal", initiated because of a "defect in "your product" known to exist by

the Named Insured or the Named Insured's "executive officers", prior to the inception

date of this Coverage Part or prior to the time "your product" leaves your control or

possession.

c. Recall of any specific products for which "bodily injury" or "property damage" is excluded

under Coverage A - Bodily Injury And Property Damage Liability by endorsement.

d. Recall of "your products" which have been banned from the market by an authorized

government entity prior to the policy period.

e. The defense of a claim or "suit" against you for "product withdrawal expenses".

B. For the purposes of this endorsement, Section III - Limits Of Insurance is replaced by the following:CG 83 37 05 07 Includes Copyrighted Material of ISO Properties, Inc., with its permission. Page 2 of 5



SECTION III – LIMITS OF INSURANCE

1. The Product Recall Aggregate Limit of Insurance shown in the Schedule and the rules below fix

the most we will reimburse regardless of the number of:

a. Insureds;

b. "Product withdrawals" initiated;c. Number of "your products" withdrawn;

d. Claims made or “suits brought; or

e. Persons or organizations making claims or bringing "suits".

2. The Product Recall Aggregate Limit is the most we will reimburse you for the sum of all "product

withdrawal expenses" incurred for all "product withdrawals" initiated during the policy period.

The Limits of Insurance of Product Withdrawal Expense Coverage apply separately to each consecutive

annual period and to any remaining period of less than 12 months, starting with the beginning of the

policy period shown in the Declarations, unless the policy period is extended after issuance for an

additional period of less than 12 months. In that case, the additional period will be deemed part of the

last preceding period for purposes of determining the Limits of Insurance.

C. For the purposes of this endorsement, the Duties In The Event Of Occurrence, Claim Or SuitCondition under Section IV - Conditions is replaced by the following:

2. Duties In The Event Of A "Defect" Or A "Product Withdrawal"

a. You must see to it that we are notified as soon as practicable of any actual, suspected or

threatened "defect" in "your products", or any governmental investigation, that may result

in a "product withdrawal". To the extent possible, notice should include:

(1) How, when and where the "defect" was discovered;

(2) The names and addresses of any injured persons and witnesses; and

(3) The nature, location and circumstances of any injury or damage arising out of

use or consumption of "your product".

b. If a "product withdrawal" is initiated, you must:

(1) Immediately record the specifics of the "product "withdrawal" and the date it was

initiated; and

(2) Notify us as soon as practicable.

You must see to it that we receive written notice of the "product withdrawal" as soon as

practicable.

c. You and any other involved insured must:

(1) Immediately send us copies of pertinent correspondence received in connection

with the "product withdrawal";

(2) Authorize us to obtain records and other information; and

(3) Cooperate with us in our investigation of the "product withdrawal".




D. The following definitions are added to the Definitions Section:

1. "Defect" means a defect, deficiency or inadequacy that creates a dangerous condition.

2. "Product tampering" is an act of intentional alteration of "your product" which may cause or has

caused "bodily injury" or physical injury to tangible property.

When "product tampering" is known, suspected or threatened, a "product withdrawal" will not be

limited to those batches of "your product" which are known or suspected to have been tampered

with.

3. "Product withdrawal" means the recall or withdrawal of "your products", or products which contain

"your products", from the market or from use, by any other person or organization, because of a

known or suspected "defect" in "your product", or a known or suspected "product tampering",

which has caused or is reasonably expected to cause "bodily injury" or physical injury to tangible

property.

4. "Product withdrawal expenses" means those reasonable and necessary extra expenses, listed

below paid and directly related to a "product withdrawal":

a. Costs of notification;

b. Costs of stationery, envelopes, production of announcements and postage or facsimiles;

c. Costs of overtime paid to your regular non-salaried employees and costs incurred by

your employees, including costs of transportation and accommodations;

d. Costs of computer time;

e. Costs of hiring independent contractors and other temporary employees;

f. Costs of transportation, shipping or packaging;

g. Costs of warehouse or storage space; or

h. Costs or proper disposal of "your products", or products that contain "your products", that

can not be reused, not exceeding your purchase price or your cost to produce the

products;

but "product withdrawal expenses" does not include costs of the replacement, repair or redesign

of "your product", or the costs of regaining your market share, goodwill, revenue or profit.

II. Additional Insured – Vendors (Blanket Coverage)

A. Section II - Who Is An Insured is amended to include as an additional insured any person(s) or

organization(s) whom you have agreed to add as an additional insured, but only with respect to "bodily

injury" or "property damage" arising out of "your products" which are distributed or sold in the regular

course of the vendor's business, subject to the following additional exclusions:

1. The insurance afforded the vendor does not apply to:

a. "Bodily injury" or "property damage" for which the vendor is obligated to pay damages by

reason of the assumption of liability in a contract or agreement. This exclusion does not

apply to liability for damages that the vendor would have in the absence of the contract or

agreement;




b. Any express warranty unauthorized by you;

c. Any physical or chemical change in the product made intentionally by the vendor;

d. Repackaging, except when unpacked solely for the purpose of inspection,

demonstration, testing or the substitution of parts under instructions from the

manufacturer, and then repackaged in the original container;

e. Any failure to make such inspections, adjustments, tests or servicing as the vendor has

agreed to make or normally undertakes to make in the usual course of business, in

connection with the distribution or sale of the products;

f. Demonstration, installation, servicing or repair operations, except such operations

performed at the vendor's premises in connection with the sale of the product;

g. Products which, after distribution or sale by you, have been labeled or relabeled or used

as a container, part or ingredient of any other thing or substance by or for the vendor; or

h. “Bodily injury” or “property damage” arising out of the sole negligence of the vendor for its

own acts or omissions or those of its employees or anyone else acting on its behalf.However, this exclusion does not apply to:

(1) The exceptions contained in Subparagraphs d. or f.; or

(2) Such inspections, adjustments, tests or servicing as the vendor has agreed to

make or normally undertakes to make in the usual course of business, in

connection with the distribution or sale of the products.

2. This insurance does not apply to any insured person or organization, from whom you have

acquired such products, or any ingredient, part or container, entering into, accompanying or

containing such products.







AMENDMENT OF LIMITS OF INSURANCE$50,000/$100,000


MANUFACTURERS OR DISTRIBUTORS EXTENSION ENDORSEMENT CG 83 37

MANUFACTURERS OR DISTRIBUTORS EXTENSION ENDORSEMENT TEXAS CG 84 93

Schedule



The limits of insurance shown in the Schedule of the Manufacturers Or Distributors Extension Endorsement

CG 83 37 or the Manufacturers Or Distributors Extension Endorsement Texas CG 84 93 are replaced by the

limits designated in the Schedule entered above. These limits are inclusive of and are not in addition to the limits

being replaced.











Schedule






being replaced.











Rate/Rule Schedule

Review Status: Exhibit Name: Rule # or Page

#:

Rate Action Previous State Filing

Number:

Attachments

Description of Addl

Optional Endt -

Manufacturers or

Distributors Extension

Rule 36 5-07 Replacement Rule 36 NJ.pdf



NEW JERSEY 5-07

COMMERCIAL LINES MANUAL

DIVISION SIX

GENERAL LIABILITY

EXCEPTION PAGES

SECTION IICOVERAGE RULES

Rule 36. Description of Additional Optional Endorsements – Manufacturers or Distributors Extension

The following is added to Rule 36 E.:

To provide Product Recall Expense and Additional Insured - Vendors coverage for amanufacturer, distributor or other similar operations attach Manufacturers or DistributorsExtension Endorsement CG 83 37.

To provide additional Product Recall Expense limits attached Manufacturers Or DistributorsExtension Amendment Of Limits Of Insurance $50,000/$100,000 Endorsement CG 86 04 orManufacturers Or Distributors Extension Amendment Of Limits Of Insurance $100,000/$200,000Endorsement CG 86 05.

Premium Determination:

For retail goods manufacturers and distributors

The premium is determined by applying the rate for the limit selected times the total policy grosssales.

Product Recall Expense Limit Retail Goods 50,000/100,000 00910


Product Recall Expense Limit Classification Rate Internal Code50,000/100,000 00910 .46 311373

100,000/200,000 00911 .63 311381

For food products manufacturers and distributors

The premium is determined by applying the rate for the limit selected times the total policy gross

sales.

in airtight containers

Product Recall Expense Limit Food products in airtight containers 50,000/100,000 00912





100,000/200,000 00913 .66 311407

Not in airtight containers

Product Recall Expense Limit Food products not in airtight containers 50,000/100,000 00914



100,000/200,000 00915 .45 311423

Other then food or retail products manufacturers and distributors


Product Recall Expense Limit Other than food or retail products 50,000/100,000 00916



100,000/200,000 00917 .32 311449

The Ohio Casualty Insurance CompanyWest American Insurance Company

American Fire and Casualty Company










Supporting Document Schedules

Review Status:

Satisfied -Name: P&C Cover Letter 04/03/2007

Comments:

Attachment:

Cover Letter.cw.pdf

Review Status:

Satisfied -Name: NAIC Uniform Property andCasualty Transmittal Document -

Read Long Desc

04/03/2007

Comments:

Attachments:

PCTD-1(2006).pdf

PCRRFS-1(2006).pdf

PCFFS-1(2006).pdf

Review Status:

Satisfied -Name: Explanatory Memorandum 04/03/2007

Comments:

Attachments:

Filing Memorandum.forms.pdf

Product recall rate development mEMORANDUM.pdf

Review Status:

Satisfied -Name: MARS002 - Final Printed Pages 04/03/2007

Comments:

Pages attached are in final print.

Attachment:

NJmars002.pdf

Review Status:

Satisfied -Name: Side by Side Comparison for Forms 04/03/2007

Comments:










Attachment:

CG 83 37 05 07 Compare.pdf



9450 Seward Road, Fairfield, Ohio 45014 Telephone 513.867.3000 Fax 513.603-3123 www.ocas.com

April 4, 2007

RE: THE OHIO CASUALTY INSURANCE COMPANY - NAIC # 148-24074WEST AMERICAN INSURANCE COMPANY - NAIC # 148-44393

AMERICAN FIRE AND CASUALTY COMPANY - NAIC #148-24066DIVISION SIX - GENERAL LIABILITY

RULE 36. MANUFACTURERS OR DISTRIBUTORS EXTENSION

FORMS REVISION

OUR FILE NO.: CL20070052

In accordance with the filing requirements of your state, we submit a revision to our General Liability

program incorporating a revised company rule and 2 new and 1 revised company forms as outlined in the

enclosed Explanatory Memorandums.

We are submitting this filing to be applicable to all policies written on and after July 1, 2007.

To the best of our knowledge, information and belief, this filing is in compliance with the provisions of the

insurance statutes, rules and regulations of your state.

Debbie May, ACS, AIS

Product Staff Underwriter

Property and Casualty Operations1-800-843-6446 Ext. 2884

Fax # (513) 603-3121

E-mail address: [email protected]

Debbie May Digitally signed by Debbie May

DN: cn=Debbie May, c=US Date: 2007.04.02 14:56:54 -04'00'



2. Insurance Department Use only

a. Date the filing is received:

b. Analyst:

c. Disposition:

d. Date of disposition of the filing:

e. Effective date of filing:New Business

Renewal Business

f. State Filing #:

g. SERFF Filing #:

h. Subject Codes

3. Group Name Group NAIC #

4. Company Name(s) Domicil e NAIC # FEIN #

1 . Reserved for Insurance

5. Company Tracking Number

Contact Info of Filer(s) or Corporate Officer(s) [include toll-free number]

6. Name and address Title Telephone #s FAX # e-mail

7. Signature of authorized filer

8. Please print name of authorized filer

Filing information (see General Instructions for descriptions of these fields)

9. Type of Insurance (TOI) 10. Sub-Type of Insurance (Sub-TOI)

11. State Specific Product code(s)(ifapplicable)[See State Specific Requirements ]

12. Company Program Title (Marketing title) 13. Filing Type [ ] Rate/Loss Cost [ ] Rules [ ] Rates/Rules

[ ] Forms [ ] Combination Rates/Rules/Forms[ ] Withdrawal [ ] Other :

14. Effect ive Date(s) Requested New: Renewal:

15. Reference Filing? [ ] Yes [ ] No

16. Reference Organization (if applicable)

17. Reference Organization # & Title

18. Company’s Date of Filing

19. Status of filing in domicile [ ] Not Filed [ ] Pending [ ] Authorized [ ] Disapproved

Effective January 1, 2006

Property & Casualty Transmittal Document (Revised 1/1 /06)

PC TD-1 pg 1 of 2

Dept. Use Only

Reset Fo

Ohio Casualty Group 148

The Ohio Casualty Insurance Company Ohio 148-24074 31-0396250

West American Insurance Company Indiana 148-44393 31-0624491

American Fire and Casualty Company Ohio 148-24066 59-0141790

CL 20070052

3121 [email protected]

Debbie MayDigitally signed by Debbie MayDN: cn=Debbie May, c=USDate: 2007.04.02 08:06:20 -04'00'

9450 Seward RoadFairfield, Ohio 45014

1-800-843-6446 513-603-

17.0 Other Liabilit -Occ/Claims Made

17.0001 Commercial General Liability

7-1-2007 7-1-2007

© 2006 National Association of Insurance Commissioners

4-4-07

sm

Debbie May

Debbie May

Prod Staff UndExt. 2884



20. This filing transmittal is part of Company Tracking #

21. Filing Description [This area can be used in lieu of a cover letter or filing memorandum and is free-form text]

22.Filing Fees (Filer must provide check # and fee amount if applicable)[If a state requires you to show how you calculated your filing fees, place that calculation below]

Check #: Amount:

Refer to each state’s checklist for additional state specific requirements or instruct ions oncalculating fees.

***Refer to the each state’s checklist fo r additional state specific requirements (i.e. # of additional copiesrequired, other state specific forms, etc.)

PC TD-1 pg 2 of 2


Property & Casualty Transmittal Document---

CL20070052

2006 National Association of Insurance Commissioners

View Complete Filing Description

In accordance with the filing requirements of your state, we submit a revision to our General

Liability program incorporating a revised company rule and 2 new and 1 revised company

forms as outlined in the enclosed Explanatory Memorandums.



RATE/RULE FILING SCHEDULE

(This form must be provided ONLY when making a filing that includes rate-related items such as Rate; Rule; Rate &Rule; Reference; Loss Cost; Loss Cost & Rule or Rate, etc.)

(Do not refer to the body of the filing for the component/exhibit li sting, unless allowed by state.) 1. This filing transmittal is part of Company Tracking #

2.This filing corresponds to form filing number(Company tracking number of form filing, if applicable)

Rate Increase Rate Decrease Rate Neutral (0%)

3. Filing Method (Prior Approval, File & Use, Flex Band, etc.)4a. Rate Change by Company (As Proposed)

CompanyName

Overall %Rate

Impact

Writtenpremium

change forthis

program

# ofpolicyholders

affectedfor this

program

Writtenpremiumfor this

program

Maximum% Change

(whererequired)

Minimum% Change

(whererequired)

4b. Rate Change by Company (As Accepted) For State Use Only

CompanyName

Overall %Rate

Impact

Writtenpremium

change forthis

program

# ofpolicyholders

affectedfor this

program

Writtenpremiumfor this

program

Maximum% Change

Minimum% Change

Overall Rate Information (Complete for Multiple Company Filings only)

COMPANY USE STATE USE

5a. Overall percentage rate impact for this filing

5b. Effect of Rate Filing – Writ ten premium change forthis program

5c. Effect of Rate Filing – Number of policyholders

affected6. Overall percentage of last rate revision

7. Effective Date of last rate revision

8.Filing Method of Last fi ling(Prior Approval, File & Use, Flex Band, etc.)

9.

Rule # or Page # Submi ttedfor Review

Replacementor Withdrawn?

Previous statefiling number,if required by state

01[ ] New[ ] Replacement[ ] Withdrawn

02[ ] New

[ ] Withdrawn[ ] Replacement

[ ] New


[ ] New


[ ] New

[ ] Withdrawn

[ ] Replacement

03

04

05

Effective Januar y 1, 2006

CL20070052

See Page 5 for Additional Rate Changes

The Ohio Cas. Ins. Co. NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

Rule 36. Desc. of Addl Optional Endt -Manufacturers or Dist Ext 5-07




Company Name Overall %

Rate Impact

Written premium

change for this

program

4a.# of policyholders affected

for this program

Written

premium for

this program

Maximum %

Change (where

required)

© 2006 National Association of Insurance Commissioners

Minimum %

Change

(where

NA

Continue Completing the Form at Item #4b

American Fire and Cas. Co.

PC RRFS-1



FORM FILING SCHEDULE(This form must be provided ONLY when making a filing that includes forms)(Do not refer to the body of the filing for the forms l isting, unless allowed by state.)

1. This filing transmittal is part of Company Tracking #

2. This filing corresponds to rate/rule filing number(Company tracking number of rate/rule filing, if applicable)

3.Form Name/Description/Synopsis

Form #Include edition date

ReplacementOrwithdrawn?

If replacement,give form #it replaces

Previous statefiling number,if required by state

01

[ ] New[ ] Replacement[ ] Withdrawn

02


03


04


05


06

[ ] New[ ] Replacement

[ ] Withdrawn

07


08


09


10


PC FFS-1


CL20070052

Manufacturers Or Distributor

Extension

CG 83 37 05 07


CG 83 37 05 04

Manufacturers Or Distributors

Ext Amendment of Limits Of

Insurance $50,000/100,000

CG 85 04 05 07

Manufacturers Or Distributors

Ext Amendment of Limits Of

Insurance $100,000/200,000

CG 85 05 05 07



Filing Memorandum

We have revised CG 83 37 to expand our limits for Product Recall Expenses by now

including a Product Recall Aggregate Limit in order to handle multiple Product RecallExpenses during the policy term. Our previous edition of this form limited the coverageto only $25,000 Product Recall Expenses for all product withdrawals initiated or thenumber of your products withdrawn during the policy term.

We have also added to the Limits of Insurance section to correspond with the ISOProduct Withdrawal Coverage Form.

CG 85 04 05 07 and CG 85 05 05 07 were created to provide increase limits for ProductRecall Expenses.



1

We developed an independent product withdrawal expense reimbursement form, but provided a $25,000 per product recall limit only. Our form is a very simplistic form that provides Product Recall Expense Reimbursement. Unlike other forms we have seen inthe market, our form is an endorsement that is attached to a Commercial General

Liability Coverage Part. This was designed intentionally so as to avoid charging aseparate policy writing minimum premium (our competitive information indicates thatcompanies charge $500., $1,000. or higher Min. Premium).

We target small to medium size risks and our underwriting eliminates high hazard risksfrom acceptability.

Larger risks and risks with higher hazard products require higher limits of coverage thatwe do not offer. They therefore place their coverage in another market that actively pursues this type of coverage. By not offering high limits, those risks with severeexposures have found coverage in other specialty markets.

However, in order to address policy holder requests for higher limits, we are going toincrease our offering with options up to $100,000 per recall limit. This increase will notattract those larger insured’s that need high limits, but is being done to allow some slightincreases primarily due to inflationary factors to our smaller insureds.

We believe there is a correlation between products general liability losses and totalexposure to products recall reimbursement expenses, and unlike most forms in themarket, our endorsement does not:

1) Require a “cut-off date”,2) exclude “shelf life” limitation,3) exclude third party damages, fines and penalties, and4)

exclude pollution,5) require a deductible, and6) require insured percentage participation.

Because our proprietary form is an endorsement, we feel our coverage is broader thatmost or all forms we have seen in the market.

We are filing rates and rating logic for per product recall/ product recall aggregate limitsof $50,000/$100,000.and for $100/000/$200,000. Our rating logic is more simplistic thanothers we have seen, but that is partly because we do not write large complex productsexposures. Also, because this will be an endorsement rather than a separate policy, itwill be further modified by any schedule, IRPM, or experience factors applicable to theGeneral Liability Policy.

Our rate selection was determined as follows:1)

We identified four general groupings of products that in our underwriting judgment will have different level or potential for products recall.



2

2) Selected a sampling of classifications reflective of risks we have in our book,

3) Developed an average products loss cost for each of the four generalgroupings by applying the ISO basic limits subline 336 general liabilityloss costs to the classifications selected.

4)

Applied a market average LCM of 1.60 to average rate by grouping,5) Based on the rate selected we applied judgmental rate increases for the twosets of limits desired.

i. Because products recall is a voluntary first party reimbursement,and

ii. Because we are expanding coverage well beyond negligence toalso include all reasonable reasons for recall, even external producttampering, and

iii. Because products recall does not require that injury has alreadyoccurred, but provides a payment made without the traditional“injury or damage, and

iv.

Because in our underwriting opinion there is not believed to be arelationship between GL increased limit factors and first partyreimbursement without injury being required, and

We did consult with several of our agents and marketing representatives. There are fewcompanies writing this coverage. We identified one carrier in our market and found theydid offer with similar rates but applied a special minimum premium of $500. Ourcoverage and structure is intended to be attractive to the smaller regional manufactureswith under $2,000,000 in gross sales. Underwriting eligibility will follow our GLunderwriting appetite. Application of our experience and judgment rating programs willgenerally cause a downward movement to these rates and we anticipate the simplicity ofthe form and rate structure to give us a sight expense savings.We will assign internal coding for these limits and monitor the results for possibleadjustment in the future.

50/100 limits rate selection

Group I Group I I Group I I I Group IV

Description of assumption Food

Products

in Ai rtight

containers

Food

Products not

in airtight

containers

Retail Goods Other- N

retail

distribut

We believe there is a correlation between product general liability products losscosts / rates between damage or injury GLlosses and the need to conduct a productsrecall, we randomly selected a number ofaverage classes in each group and basedon those class, developed an average products rate.

1.027 .714 .992 .992*



3

Applied market typical average1.60LCM

1.643 1.142 1.587 1.587

Adjusted with ISO table B (average)decreased limit factor ( .73)

1.199 .834 1.159 1.159

Applied average adjustment factor of .20 .240 .167 .232 .232Retail factor ( applied 2.00 to Groups Ithru III**

.480 .334 .464 N/A

Selected rate .48 .33 .46 .23

* rate for group IV was selected same as Group III, but will not get retail charge below** We obtained the retail factor used by reviewing another carriers independent filing.The other carrier is also a regional carrier who is similar to us as regards marketing andappetite.

Sample pricing RISKS WITH $1,000,000 TOTAL SALES:

Group I $480

Group II $330

Group III $460

Group IV $230.

Conclusion Notes-

• Rates appear to be reasonable.

• Without minimum premium we will be less expensive than other carriers we haveseen

•

Rates and premiums may vary based on judgment and/or experience creditsapplied to the CGL (we have not seen any other carrier apply these credits to thiscoverage).



4-3-07 7-1-07

17.0

The Ohio Casualty Insurance Company

Rule 36. 5-07 CG 8337 05 07 CG 8337 05 04

CG 8504 05 07

CG 8505 05 07


Rule 36. 9-97







COMMERCIAL GENERAL LIABILITY COVERAGE PART

Schedule



I. Limited Product Recall Expense

A. The following is added to Section I - Coverages:

1. Insuring Agreement

a. We will reimburse you for "product withdrawal expenses" incurred because of a "productwithdrawal" to which this insurance applies.

The amount of such reimbursement is limited as described in Section III - Limits Of

Insurance. No other obligation or liability to pay sums or perform acts or services is

covered.

b. This insurance applies to a "product withdrawal" only if the "product withdrawal" is

initiated in the "coverage territory" during the policy period because:

(1) You determine that the "product withdrawal" is necessary; or

(2) An authorized government entity has ordered you to conduct a "product

withdrawal".

c. We will reimburse only those "product withdrawal expenses":

Which are incurred and reported to us within one year of the date the "productwithdrawal" was initiated.

d. The initiation of a "product withdrawal" will be deemed to have been made only at the

earliest of the following times:

(1) When you have announced, in any manner, to the general public, your vendors

or to your employees (other than those employees directly involved in making the

determination) your decision to conduct a "product withdrawal". This applies

regardless of whether the determination to conduct a "product withdrawal" is

made by you or is requested by a third party;


Deleted: 04

Deleted: 04



(2) When you received, either orally or in writing, notification of an order from an

authorized government entity to conduct a "product withdrawal"; or

(3) When a third party has initiated a "product withdrawal" and you communicate

agreement with the "product withdrawal", or you announce to the general public,

your vendors or to your employees (other than those employees directly involved

in making the determination) your decision to participate in the "product

withdrawal", whichever comes first.

e. "Product withdrawal expenses" incurred to withdraw "your products" which contain:

(1) The same "defect" will be deemed to have arisen out of the same "product

withdrawal"; or

(2) A different "defect" will be deemed to have arisen out of a separate "product

withdrawal" if

newly determined or ordered in accordance with Paragraph 1.b. of this endorsement.

2. Exclusions

This insurance does not apply to "product withdrawal expenses" arising out of:

a. Any "product withdrawal" initiated due to:

(1) The failure of "your products" to accomplish their intended purpose, including any

breach of warranty of fitness, whether written or implied. This exclusion does not

apply if such failure has caused or is reasonably expected to cause "bodily

injury" or physical damage to tangible property.

(2) Copyright, patent, trade secret or trademark infringements;

(3) Transformation of a chemical nature, deterioration or decomposition of "your

product", except if it is caused by:

(a) An error in manufacturing, design, processing or transportation of "your

product"; or

(b) "Product tampering".

(4) Expiration of the designated shelf life of "your product".

b. A "product withdrawal", initiated because of a "defect in "your product" known to exist bythe Named Insured or the Named Insured's "executive officers", prior to the inception

date of this Coverage Part or prior to the time "your product" leaves your control or

possession.

c. Recall of any specific products for which "bodily injury" or "property damage" is excluded

under Coverage A - Bodily Injury And Property Damage Liability by endorsement.

d. Recall of "your products" which have been banned from the market by an authorized

government entity prior to the policy period.

e. The defense of a claim or "suit" against you for "product withdrawal expenses".

B. For the purposes of this endorsement, Section III - Limits Of Insurance is replaced by the following:

Formatted: Font: 10 pt

Formatted: Body Text, Inden 1", First line: 0", Line spacingsingle

Deleted: ¶CG 83 37 07 04



CG 83 37 05 07 Includes Copyrighted Material of ISO Properties, Inc., with its permission. Page 3 of 5SECTION III – LIMITS OF INSURANCE

1. The Product Recall Aggregate Limit of Insurance shown in the Schedule and the rules below fix

the most we will reimburse regardless of the number of:

a. Insureds;

b. "Product withdrawals" initiated;

c. Number of "your products" withdrawn;

d. Claims made or “suits brought; ore. Persons or organizations making claims or bringing "suits".

2. The Product Recall Aggregate Limit is the most we will reimburse you for the sum of all "product

withdrawal expenses" incurred for all "product withdrawals" initiated during the policy period.

The Limits of Insurance of Product Withdrawal Expense Coverage apply separately to each consecutive

annual period and to any remaining period of less than 12 months, starting with the beginning of the

policy period shown in the Declarations, unless the policy period is extended after issuance for an

additional period of less than 12 months. In that case, the additional period will be deemed part of the

last preceding period for purposes of determining the Limits of Insurance.

C. For the purposes of this endorsement, the Duties In The Event Of Occurrence, Claim Or SuitCondition under Section IV - Conditions is replaced by the following:

2. Duties In The Event Of A "Defect" Or A "Product Withdrawal"

a. You must see to it that we are notified as soon as practicable of any actual, suspected or

threatened "defect" in "your products", or any governmental investigation, that may result

in a "product withdrawal". To the extent possible, notice should include:

(1) How, when and where the "defect" was discovered;

(2) The names and addresses of any injured persons and witnesses; and

(3) The nature, location and circumstances of any injury or damage arising out of

use or consumption of "your product".

b. If a "product withdrawal" is initiated, you must:

(1) Immediately record the specifics of the "product "withdrawal" and the date it was

initiated; and

(2) Notify us as soon as practicable.

You must see to it that we receive written notice of the "product withdrawal" as soon as

practicable.

c. You and any other involved insured must:

(1) Immediately send us copies of pertinent correspondence received in connection

with the "product withdrawal";

(2) Authorize us to obtain records and other information; and

(3) Cooperate with us in our investigation of the "product withdrawal".

Formatted: Body Text IndentIndent: Left: 0", First line: 0"

Deleted: Limits

Deleted: pay

Deleted: or



CG 83 37 05 07 Includes Copyrighted Material of ISO Properties, Inc., with its permission. Page 3 of 5D. The following definitions are added to the Definitions Section:

1. "Defect" means a defect, deficiency or inadequacy that creates a dangerous condition.

2. "Product tampering" is an act of intentional alteration of "your product" which may cause or has

caused "bodily injury" or physical injury to tangible property.

When "product tampering" is known, suspected or threatened, a "product withdrawal" will not be

limited to those batches of "your product" which are known or suspected to have been tamperedwith.

3. "Product withdrawal" means the recall or withdrawal of "your products", or products which contain

"your products", from the market or from use, by any other person or organization, because of a

known or suspected "defect" in "your product", or a known or suspected "product tampering",

which has caused or is reasonably expected to cause "bodily injury" or physical injury to tangible

property.

4. "Product withdrawal expenses" means those reasonable and necessary extra expenses, listed

below paid and directly related to a "product withdrawal":

a. Costs of notification;

b. Costs of stationery, envelopes, production of announcements and postage or facsimiles;

c. Costs of overtime paid to your regular non-salaried employees and costs incurred by

your employees, including costs of transportation and accommodations;

d. Costs of computer time;e. Costs of hiring independent contractors and other temporary employees;

f. Costs of transportation, shipping or packaging;

g. Costs of warehouse or storage space; or

h. Costs or proper disposal of "your products", or products that contain "your products", that

can not be reused, not exceeding your purchase price or your cost to produce the

products;

but "product withdrawal expenses" does not include costs of the replacement, repair or redesign

of "your product", or the costs of regaining your market share, goodwill, revenue or profit.

II. Additional Insured – Vendors (Blanket Coverage)

A. Section II - Who Is An Insured is amended to include as an additional insured any person(s) or

organization(s) whom you have agreed to add as an additional insured, but only with respect to "bodilyinjury" or "property damage" arising out of "your products" which are distributed or sold in the regular

course of the vendor's business, subject to the following additional exclusions:

1. The insurance afforded the vendor does not apply to:

a. "Bodily injury" or "property damage" for which the vendor is obligated to pay damages by

reason of the assumption of liability in a contract or agreement. This exclusion does not

apply to liability for damages that the vendor would have in the absence of the contract or

agreement;

Deleted: 04



CG 83 37 05 07 Includes Copyrighted Material of ISO Properties, Inc., with its permission. Page 4 of 5b. Any express warranty unauthorized by you;

c. Any physical or chemical change in the product made intentionally by the vendor;

d. Repackaging, except when unpacked solely for the purpose of inspection,

demonstration, testing or the substitution of parts under instructions from the

manufacturer, and then repackaged in the original container;

e. Any failure to make such inspections, adjustments, tests or servicing as the vendor hasagreed to make or normally undertakes to make in the usual course of business, in

connection with the distribution or sale of the products;

f. Demonstration, installation, servicing or repair operations, except such operations

performed at the vendor's premises in connection with the sale of the product;

g. Products which, after distribution or sale by you, have been labeled or relabeled or used

as a container, part or ingredient of any other thing or substance by or for the vendor; or

h. “Bodily injury” or “property damage” arising out of the sole negligence of the vendor for its

own acts or omissions or those of its employees or anyone else acting on its behalf.

However, this exclusion does not apply to:

(1) The exceptions contained in Subparagraphs d. or f.; or

(2) Such inspections, adjustments, tests or servicing as the vendor has agreed tomake or normally undertakes to make in the usual course of business, in

connection with the distribution or sale of the products.

2. This insurance does not apply to any insured person or organization, from whom you have

acquired such products, or any ingredient, part or container, entering into, accompanying or

containing such products.


Deleted: 04

Deleted: 04



Page 2: [1] Deleted Author











Superseded Attachments

Please note that all items on the following pages are items, which have been replaced by a newer version. The newest

version is located with the appropriate schedule on previous pages. These items are in date order with most recent first.

Original Date: Schedule Document Name Replaced Date Attach

Document

No original date Form Manufacturers or Distributors

Extension Amendment of Limits of

Ins $50,000/100,000

04/03/2007 CG 85 04 05

07.pdf

No original date Form Manufacturers or Distributors

Extension Amendment of Limits of

Ins $100,000/200,000

04/03/2007 CG 85 05 05

07.pdf

No original date Rate and Rule Description of Addl Optional Endt -

Manufacturers or Distributors

Extension

04/03/2007 Rule 36 NJ.pdf



NEW JERSEY 5-07

COMMERCIAL LINES MANUAL

DIVISION SIX

GENERAL LIABILITY

EXCEPTION PAGES

SECTION IICOVERAGE RULES

Rule 36. Description of Additional Optional Endorsements – Manufacturers or Distributors Extension

The following is added to Rule 36 E.:

To provide Product Recall Expense and Additional Insured - Vendors coverage for amanufacturer, distributor or other similar operations attach Manufacturers or DistributorsExtension Endorsement CG 83 37.

To provide additional Product Recall Expense limits attached Manufacturers Or DistributorsExtension Amendment Of Limits Of Insurance $50,000/$100,000 Endorsement CG 85 04 orManufacturers Or Distributors Extension Amendment Of Limits Of Insurance $100,000/$200,000Endorsement CG 85 05

Premium Determination:

For retail goods manufacturers and distributors





100,000/200,000 00911 .63 311381

For food products manufacturers and distributors

The premium is determined by applying the rate for the limit selected times the total policy gross

sales.

in airtight containers






100,000/200,000 00913 .66 311407

Not in airtight containers




100,000/200,000 00915 .45 311423

Other then food or retail products manufacturers and distributors





100,000/200,000 00917 .32 311449

The Ohio Casualty Insurance CompanyWest American Insurance Company











Schedule






being replaced.


liberty mutual rate filings

Documents