What it does
CA 99 40 schedules the designation or description of covered autos the named insured owns, and for those autos the policy either excludes coverage or applies only as excess for hazards that are otherwise insured. It is used when another policy is intended to be primary for certain owned vehicles or exposures, so the two policies do not overlap. It modifies the auto dealers, business auto and motor carrier forms.
Who sees it
Organizations with vehicles insured under a separate program (for example, a specialty program for certain units, or vehicles covered under an affiliate's or contractor's policy) and accounts transitioning between carriers mid-term.
Key points
- Check the schedule and which option (exclusion or excess) is selected; the two have very different results if the other insurance fails.
- Keep evidence of the other insurance on file; if it lapses, the excess option may leave only excess coverage over nothing.
Quoting notes
When you see CA 99 40 on a renewal, confirm the "otherwise insured" policy still exists and still covers the scheduled autos.
