1. Forms
2. CA
3. CA-99-10

Form CA 99 10: Drive Other Car Coverage - Broadened Coverage For Named Individuals

1. What the form is

The CA 99 10, "Drive Other Car Coverage - Broadened Coverage For Named Individuals," is an endorsement to a Commercial Auto Policy (CAP). Its primary purpose is to provide liability coverage, and optionally other coverages like medical payments, uninsured/underinsured motorists, and physical damage, to specific individuals named in the endorsement when they are driving autos they do not own and that are not otherwise covered by the business's auto policy. This situation often arises when an employee, such as an executive, is furnished with a company car for both business and personal use and, as a result, does not have their own personal auto policy (PAP). The endorsement aims to fill potential coverage gaps that exist between a commercial auto policy and what a personal auto policy would typically provide. It essentially extends coverage similar to a PAP to the named individual (and often their resident spouse) for the use of non-owned autos.

2. Classes of business it applies to

This endorsement is particularly relevant for businesses that provide company vehicles to executives or employees for their regular use, including personal use. Examples include:

• Companies providing vehicles to salespersons, managers, or executives who may not own personal vehicles or have a PAP.
• Businesses where an employee might need to occasionally drive a vehicle not owned, hired, or borrowed by the company (e.g., renting a car for personal use during a business trip, borrowing a friend's car).
• Organizations where the owner or key employees rely solely on company-provided vehicles and lack personal auto insurance. For instance, a consultant who is given a company car as their primary vehicle and doesn't own another car would benefit from this endorsement if they rent a car for a weekend getaway or borrow a neighbor's vehicle.

It's important to note that not all businesses require this endorsement. If employees have their own personal auto policies, those policies would typically provide coverage for driving non-owned autos, potentially making the CA 99 10 redundant for those individuals.

3. Special considerations

• Named Individuals Only: Coverage applies only to the individuals specifically named in the endorsement's schedule and, typically, their resident spouse. It does not automatically extend to other family members unless they are also scheduled, though some coverages like medical payments and UM/UIM may extend to family members if purchased.
• No Coverage for Owned Autos: The endorsement does not provide coverage for any auto owned by the named individual or a member of their household. Its focus is strictly on non-owned vehicles.
• Business Use of Non-Owned Autos: Coverage generally applies to the personal use of non-owned autos. It typically excludes using a non-owned auto in the business of selling, servicing, repairing, or parking autos.
• Interaction with Personal Auto Policy: If the named individual does have a PAP, the CA 99 10 might provide duplicate coverage, leading to unnecessary premiums. It's crucial to assess the individual's existing insurance.
• Coverage Gaps without the Endorsement: Without this endorsement (or a PAP), an individual furnished with a company car might have no coverage if they, for example, rent a car on vacation or borrow a car from someone whose insurance is inadequate or non-existent.
• Spouse's Use of Furnished Auto: While the CA 99 10 protects the spouse when driving other cars, their coverage while driving the company-furnished auto depends on the employer's permission and the main policy terms, not this endorsement.
• Alternative: Named Non-Owner Policy: If the employer is unwilling to add the CA 99 10, the employee might need to purchase a named non-owner policy.
• Relation to CA 00 01: The CA 99 10 modifies the standard Business Auto Coverage Form (CA 00 01).

4. Key information for agents and underwriters

• Risk Assessment: If only the individual already evaluated as a driver of a company auto is named, little additional underwriting may be needed. However, if the endorsement extends to a spouse or other family members, their driving records should also be reviewed.
• Pricing: An additional premium is charged for this endorsement, and specific premiums apply for each coverage (liability, medical payments, physical damage, etc.) selected for each named individual.
• Coverage Selection: The endorsement allows for the selection of various coverages (e.g., liability, medical payments, comprehensive, collision, UM/UIM). Coverage only applies if a premium is shown for that specific coverage and individual on the schedule. The limits and deductibles for these coverages often mirror those on the main commercial auto policy. For example, if underinsured motorists coverage is desired and uninsured motorists coverage is purchased with limits higher than basic, UIM coverage is often included; otherwise, it needs to be specifically scheduled and premium paid.
• Avoiding Redundancy: Agents should verify if the individuals to be named truly lack personal auto insurance to avoid selling unnecessary coverage.
• Clarity on "Non-Owned": It's crucial to explain that "non-owned" in this context means autos not owned by the named individual or their household members, and not autos owned by the named insured (the business) unless specifically stated for a particular coverage extension (which is generally not the primary intent of this form for liability).
• Distinction from CA 99 17 (Individual Named Insured): The CA 99 10 is typically for employees (often executives) furnished with company cars who don't have a PAP. The CA 99 17 (Individual Named Insured) is generally used when the named insured is a sole proprietor and all their vehicles (personal and commercial) are on the BAP, to provide PAP-like coverage to family members. Using the correct endorsement for the specific situation is vital.