What it does
CA 20 11 lets a lessor price its own policy as excess or contingent to lessees' insurance. Covered Autos Liability and any required no-fault coverage for a "leased auto" do not apply to bodily injury or property damage resulting from the acts or omissions of:
- the lessee or rentee;
- any of the lessee's or rentee's employees or agents; or
- any person, other than the lessor or its own employees or agents, operating the leased auto with the permission of any of them.
If the lessee's or rentee's policy is cancelled, the exclusion stops applying to the lessor and its employees or agents 30 days after that cancellation. A "leased auto" is an auto leased or rented to a lessee or rentee (including substitutes and extra autos for seasonal needs) under an agreement requiring the lessee or rentee to provide primary insurance for the lessor.
Who needs it
Leasing and rental companies whose contracts require customers to insure the vehicles, typically with the customer's carrier issuing CA 20 01 to the lessor.
Quoting notes
Combine with CA 20 09 for contingent protection if the lessee's insurance is not collectible. Confirm the leases actually require primary insurance from the lessee; autos rented without that requirement fall outside the definition.
