Personal Liability Update

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Liability exclusion solutions

Unintentional consequences of intentional acts
Are "intentional acts" covered? How are they defined? What is the difference between the old and new policy language?

Expected or intended - prior to 2000
Coverage E - Personal Liability and Coverage F - Medical Payments to Others do not apply to "bodily injury" or "property damage":
a. Which is expected or intended by the "insured"

Expected or intended - 2000 language
"Bodily injury" or "property damage" is consider expected or intended by an "insured" even if the resulting "bodily injury" or "property damage":
a. Is of a different kind, quality or degree than initially expected or intended; or
b. Is sustained by a different person, entity, real or personal property, than initially expected or intended

As you see, the language in the 2000 form takes into account the unintentional consequences of intentional acts.

Coverage for motorized golf carts--2000 form
Coverage for motorized golf carts has been broadened and now includes golf carts:

Parked at a golf course

In use at a golf course

Traveling to and from the course

Crossing roads in the course of play

In use in a private residential community

In response to the growing use of motorized golf carts on golf courses and in residential communities, the exclusion has been revised and the coverage has been broadened.
The intent of the policy is to cover the insured for their liability while golfing or on their own property. They have increased the verbiage in the policy to be specific about that.
Since our society is aging, these golf carts have become a mode of transportation in some areas. They are not eligible for "auto" coverage, so the H0 steps in to cover them in certain circumstances. This is a broadening of the coverage to answer a need.
This broadening only applies to owned carts. Specifically, they are covered if:

On a golfing facility when used for a permitted recreational or leisure activity, such as sight seeing or bird watching. This includes the activity of driving along with the golfers, but the driver is not golfing.

On a golfing facility when traveling to or from the parking area or cart storage area.

Within a private residential community:

If it is legal to drive them on public roads

Subject to the authority of the owners association instead of the municipal authorities.

Exclusions for Coverage E only
Personal Liability does not apply to liability for the insured's share in any loss assessment as a member of an association, corporation, or community of property owners.

Loss Assessment as an additional coverage pays up to $1,000 for a share of any loss assessment that is charged by a corporation or association of property owners to which the insured belongs, for loss at the residence premises that is a result of a covered occurrence, or acts of volunteer officers and directors of the association.

So how do you cover loss assessment? Consider these possible solutions for coverage:

Increasing Loss Assessment coverage to $50,000

Checking umbrella or excess liability to see if coverage may apply

Important note: Coverage will still only apply if the loss involves a liability "peril" such as bodily injury. THIS IS NOT DIRECTORS AND OFFICERS LIABILITY!!!

If your insured is on a board of a condo or homeowners association, the board needs to buy Directors and Officers insurance.

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Not only are policy forms, clauses, rules and court decisions constantly changing, but forms vary from company to company and state to state. This material is intended as a general guideline and might not apply to a specific situation. The authors, LunchTimeCE, Inc., CEfreedom, and Insurance Skills Center, and any organization for whom this course is administered will have neither liability nor responsibility to any person or entity with respect to any loss or damage alleged to be caused directly or indirectly as a result of information contained in this course.