What it does
CA 99 16 lets the insured schedule specific hired autos and have them treated as covered autos it owns, not autos it hires, borrows or leases. That moves those autos to owned-auto symbols and primary other-insurance treatment. The 10 13 edition also adds to Who Is An Insured: while a scheduled auto is rented or leased to and used by or for the named insured, its owner or anyone from whom the insured rents or leases it is an insured, but only for that auto. (The 10 13 edition replaced earlier wording that limited the lessor's coverage to acts of the named insured.)
Who needs it
Businesses leasing a few vehicles from individuals or small lessors who do not require the full lessor package in CA 20 01, or that want specific rentals rated as owned.
Key points
- For leasing companies that require loss payee status and notice of cancellation, use CA 20 01.
- For autos leased from the insured's employees, use CA 99 47.
Quoting and selling notes
Describe each auto in the schedule and rate it as owned. Ask whether the lease requires the lessee to provide primary insurance; if so, the owned treatment matches the lease.
