What it does
CA 03 01 lets the insured choose either a Liability Deductible or a "Property Damage" Only Liability Deductible per accident, shown in its schedule:
ISO's 2026 multistate forms revision (CA-2026-OFR26) introduces a 09 27 edition of this form, approved for policies effective on or after September 1, 2027 in states where it has been adopted; the prior edition remains in use until then and in states that have not adopted the revision.
- With a liability deductible, damages from any one accident that would otherwise be payable are reduced by the deductible before the limit of insurance applies.
- With a property damage only deductible, only property damage from any one accident is reduced by the deductible.
In the 10 13 edition the deductible also applies to bodily injury and property damage liability under the general liability section of the Auto Dealers Coverage Form. To settle a claim or suit the insurer may pay all or part of the deductible, and the insured must then reimburse it.
Which states
ISO publishes two versions: CA 03 01 for the states listed here and CA 03 02 for the other states.
Quoting notes
Underwriters review the insured's financial strength and loss frequency before offering a liability deductible, and may ask for collateral. Explain that the injured party is paid in full and the insured repays the deductible.
