Chapter 2 | Business Auto Coverage Form

Educational Objectives
Upon completion of this section, you should be able to: Identify a Commercial Automobile policy and its contents.

  1. List the three sections of the Commercial Lines Auto Manual.
  2. Specify the types of vehicles covered by the Business Auto Form.
  3. Explain the purpose of the primary and secondary classifications.
  4. Explain the difference between the business use classifications: service, retail and commercial.
  5. Determine the proper primary and secondary classifications for autos covered by the Business Auto Form.
  6. Identify and explain the provisions in the Business Auto Coverage Form.
Introduction
The Insurance Services Office, Inc. (ISO) Commercial Lines Manual - Division One - Automobile is being used by most insurance companies and is in effect in all but a few states. This manual is divided into the following sections:
  • Section I or General Rules (Rules 1-20)
  • Section II or Classes and Types Rules
    • Trucks, Tractors and Trailers (Rules 21-30)
    • Private Passenger Types (Rules 31-37)
    • Public Transportation (Rules 38-47)
    • Garages (Rules 48-61)
    • Special Types (Rules 62-87)
  • Section III or Common Coverages and Rating Procedures Among other rules, this section includes:
    • Non-Owned Autos (Rule 89)
    • Hired Autos (Rule 90)
Automobiles are classified by 5- and 4-digit code numbers. Except for garage operations, all of these classification codes apply similarly to liability as well as to physical damage coverages, even though the respective modifying factors may be different. All covered automobiles which appear on a policy, including the ones added or deleted in mid-term, are to be classified by the underwriter, agent, or premium auditor on the basis of their actual use classifications.

The 5-Digit Class Coded Commercial Autos
Automobiles falling under this category are (Rule 21):
  • Trucks, including pickup, panel and van types
  • Truck-tractors and
  • Semi-trailers
This category does not include the following:
  • Autos used for public transportation (Rules 38-47)
  • Autos leased or rented to others by leasing or rental concerns (Rule 75)
  • Pickups, panel trucks, or vans owned by an individual, husband and wife or family farm partnership or corporation and used for farming or ranching and not customarily used for other business (Refer to Rule 33).
  • Mobile equipment units which are self-propelled and have the following permanent attachments (Refer to Rule 81)
  • Snow removal attachments
  • Road maintenance, but not construction or resurfacing attachments
  • Street cleaning attachments
  • Cherry pickers and similar devices mounted on auto or truck chassis and used to raise or lower workers
  • Air compressors, pumps and generators, including spraying, welding, building cleaning, geophysical exploration, lighting and well-servicing equipment
Note: This exclusion only applies to vehicles with "permanently attached" equipment. It does not apply to vehicles which have similar equipment attached "temporarily." Such vehicles are to be classified using a 5-digit class code.

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PRIMARY CLASSIFICATIONS


The 5-digit code number is comprised of a 3-digit primary classification and a 2-digit secondary classification.
The primary classification is comprised of 3-digits; these 3-digits are:
1. Size - 1st digit
2. Use - 2nd digit
3. Radius - 3rd digit

Size
This digit is determined by Gross Vehicle Weight (GVW) or by Gross Combination Weight (GCW).
  • The GVW is defined as the maximum loaded weight for which a single auto is designed, as specified by the manufacturer.
  • The GCW is defined as the maximum loaded weight for a combination truck-tractor and semi-trailer or trailer for which the truck-tractor is designed, as specified by the manufacturer.
Both GVW and GCW may be obtained from any of the following sources:
  • A rating plate affixed to the doorframe on the driver's side of the vehicle.
  • The Certificate of Origin, which comes with the vehicle when new.
  • Bill of Sale prepared by the dealer.
  • "Makes & Models" journal where these weights can be matched to the model name or number if the model designation is the only information available.
  • "The Truck Blue Book" provides these weights by the Vehicle Identification Number (VIN). A complete VIN number is an absolute necessity here. (Note: the serial number is usually the last six numbers of the Vehicle Identification Number.)


A large part of the GVW vs GCW confusion comes from not understanding the fifth wheel coupling device. The Truck Blue Book offers the following: "FIFTH WHEEL - A coupling device mounted on a tractor over and forward of the rear axles and used to connect a semi-trailer. It acts as a hinge point to allow changes in direction of travel between tractor and semi-trailer."

On a truck-tractor, the fifth wheel is a large, circular, heavy metal plate, usually covered with black grease. The plate contains a slot, cut from the rear to the center of the plate. The slot is equipped with a heavy locking latch. On a semi-trailer, the fifth wheel coupling device is a heavy metal plate mounted at the front of the semi-trailer, with a large round pin (the kingpin) protruding down from the center of the plate.

When getting ready to hit the road, the driver of the truck-tractor aligns the slot with the pin and backs the truck-tractor towards the semi-trailer so that the pin proceeds into the slot and is caught by the latch and is then securely locked.

The size class code is assigned in the following manner:

Vehicle Size Vehicle Weight Size Class
Light Truck 0-10,000 GVW 0
Medium Truck 10,001-20,000 GVW 2
Heavy Truck 20,001-45,000 GVW 3
Extra-Heavy Truck over 45,000 GVW 4
Heavy Truck-Tractors 0-45,000 GCW 3
Extra-Heavy Truck-Tractors over 45,000 GCW 5
Semi-Trailers, or any Trailer over 2,000 lbs Load Capacity 6
Service or Utility Trailer 0-2,000 lbs Load Capacity 6

Use
This digit is determined by the use of the vehicle.

If a truck, tractor, or trailer has more than one use, use the highest-rated classification unless 80% of the use is in a lower-rated activity, then use the lower-rated classification.

There are three use classifications - Service, Retail, and Commercial.

  1. Service use is defined as the transporting of the Insured's personnel, tools, equipment and incidental supplies to or from a job location. This classification is confined to autos principally parked at job locations for the majority of the working day or used to transport supervisory personnel between job locations. The Service use class is basically limited to contractors, and to business concerns providing installation, since these uses present reduced over the road exposure. Any incidental delivery does not disqualify a vehicle from the Service use class; however, vehicles used primarily for delivery should be classified as either Retail or Commercial.
  2. Retail use involves the pick up of property from, or the delivery of property to individual households. A few examples of this type of operation are milk trucks used to deliver milk door to door, garbage trucks collecting from individual homes, furniture trucks delivering to individual households.
  3. Commercial use is the catchall class and is defined as the transporting of property other than those autos defined as service or retail.
The Use class codes are assigned as follows:
Business Use Vehicle Size Use Class
Service Light, Medium and Heavy Trucks
Heavy Truck-Tractors
1
4
Retail Light, Medium and Heavy Trucks
Heavy Truck-Tractors
2
5
Commercial Light, Medium and Heavy Trucks
Heavy Truck-Tractors
3
6

Note: The Extra-Heavy Trucks and the Extra-Heavy Truck-Tractors take a use class code of "0", Semi-Trailers take a use class of "7", Trailers take a use class code of "8" and Service or Utility Trailers take a use class code of "9".



Radius
This is the distance traveled in miles as measured on a straight-line basis, or as the "crow flies," from the street address of principal garaging to final destination.

The street address instead of the city or town limits is required here, since many large cities or rural towns have far reaching boundaries in which a considerable distance can be driven before these boundary lines are exceeded.
  1. The Local radius means that a vehicle is not regularly operated beyond a distance of 50 miles from the street address where such auto is principally garaged.
  2. The Intermediate radius means that a vehicle is operated beyond a radius of 50 miles but not regularly beyond a radius of 200 miles from the street address where such vehicle is principally garaged.
  3. Long Distance means that a vehicle is operated regularly beyond a 200-mile radius from the street address where such vehicle is principally garaged. Under this radius all vehicles other than light trucks are to be zone rated.
As a rule of thumb, regularly and frequently to mean "at least once a week for 52 weeks."

The Radius class codes are different for Fleet and Non-Fleet vehicles. A Fleet is defined as having five or more self-propelled vehicles of any type under one ownership. This count does not include mobile equipment covered on a general liability policy or any kind of trailers or semi-trailers.

The Radius class codes are assigned as follows:
Radius of Operation Fleet & Non-Fleet Radius Code
Local Non-Fleet
Fleet
1
4
Intermediate Non-Fleet
Fleet
2
5
Long Distance Non-Fleet
Fleet
3
6

By determining proper size, use, and radius classes, a Primary Classification factor can be obtained which when combined with the factor form the Secondary Classification modifies the Basic Rate.

Example:

Let us assume that a truck with 14,000 pounds GVW is used to deliver furniture to individual homes. It also is a part of a fleet of 20 trucks and travels within a 35-mile radius. The Primary Class is then:

2 2 4
Size Use Radius

Since the vehicles' weight is under 20,000 pounds (yet over 10,000 pounds), the size class of "2" was used. "2" is selected for the use class since the vehicle is being used to deliver property to individual homes and finally the radius class code "4" is used since this vehicle is part of a fleet and is traveling a local radius (less than 50 miles).

The exhibit shown on the next pages are the Non-Fleet Primary and Fleet Primary Classification Tables respectively from the "all states" manual. To obtain Primary Classification rates for your State, refer to your state exception pages in ISO Commercial Lines Auto Manual.



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RULE 23
TRUCKS, TRACTORS AND TRAILERS CLASSIFICATIONS


Non-Fleet Primary Classifications - Rating Factors and Statistical Codes
a. Non-Fleet Primary Classifications — Local Radius

  Size
Class

Business
Use
Class

 

Radius Class
Local
Up to 50 Miles
Liability Phys. Dam.
Light
Trucks
(0-10,000 Lbs.
G.V.W.)
Service Factor
Code
1.00
011--
1.00
011--
Retail Factor
Code
1.60
021--
1.20
021--
Commercial Factor
Code
1.30
031--
1.15
031--
Medium
Trucks
(10,001-
20,000
Lbs. G.V.W.)
Service Factor
Code
1.05
211--
.85
211--
Retail Factor
Code
1.65
221--
1.00
221--
Commercial Factor
Code
1.35
231--
.95
231--
Heavy
Trucks
(20,001-
45,000
Lbs. G.V.W.)
Service Factor
Code
1.10
311--
.75
311--
Retail Factor
Code
1.70
321--
1.15
321--
Commercial Factor
Code
1.80
331--
1.00
331–
Extra-Heavy Trucks
(Over 45,000 Lbs. G.V.W.)
Factor
Code
2.50
401--
1.15
401--
Heavy
Truck-Tractors
(0-45,000
Lbs. G.C.W.)
Service Factor
Code
1.50
341--
1.05
341--
Retail Factor
Code
2.40
351--
1.45
351--
Commercial Factor
Code
2.10
361--
1.25
361--
Extra-Heavy
Truck-Tractors
(Over 45,000 Lbs. G.C.W.)
Factor
Code
2.60
501--
1.25
501--
Trailer Types

 

Semitrailers Factor
Code
.25
671--
.85
671--
Trailers Factor
Code
.15
681--
.65
681--
Service or Utility Trailer
(0-2,000 Lbs. Load Capacity)
Factor
Code
0
691--
.40
691--



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RULE 23
TRUCKS, TRACTORS AND TRAILERS CLASSIFICATIONS

Non-Fleet Primary Classifications — Rating Factors and Statistical Codes
b. Non-Fleet Primary Classifications — Intermediate Radius

  Size
Class

Business
Use
Class

 

Radius Class
Intermediate
51 to 200 Miles
Liability Phys. Dam.
Light
Trucks
(0-10,000 Lbs.
G.V.W.)
Service Factor
Code
1.10
012--
1.05
012--
Retail Factor
Code
1.65
022--
1.50
022--
Commercial Factor
Code
1.55
032--
1.40
032--
Medium
Trucks
(10,001-
20,000
Lbs. G.V.W.)
Service Factor
Code
1.20
212--
1.00
212--
Retail Factor
Code
1.70
222--
1.25
222--
Commercial Factor
Code
1.60
232--
1.20
232--
Heavy
Trucks
(20,001-
45,000
Lbs. G.V.W.)
Service Factor
Code
1.35
312--
.85
312--
Retail Factor
Code
1.75
322--
1.35
322--
Commercial Factor
Code
2.25
332--
1.20
332--
Extra-Heavy Trucks
(Over 45,000 Lbs. G.V.W.)
Factor
Code
3.00
402--
1.35
402--
Heavy
Truck-Tractors
(0-45,000
Lbs. G.C.W.)
Service Factor
Code
1.55
342--
1.15
342--
Retail Factor
Code
2.45
352--
1.65
352--
Commercial Factor
Code
2.60
362--
1.45
362--
Extra-Heavy
Truck-Tractors
(Over 45,000 Lbs. G.C.W.)
Factor
Code
3.75
502--
1.45
502--
Trailer Types

 

Semitrailers Factor
Code
.30
672--
1.05
672--
Trailers Factor
Code
.30
682--
.85
682--
Service or Utility Trailer
(0-2,000 Lbs. Load Capacity)
Factor
Code
0
692--
.60
692--



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RULE 23
TRUCKS, TRACTORS AND TRAILERS CLASSIFICATIONS


Non-Fleet Primary Classifications — Rating Factors and Statistical Codes
c. Non-Fleet Primary Classifications — Long Distance Radius

  Size
Class

Business
Use
Class

 

Radius Class
Long Distance
Over 200 Miles
Liability Phys. Dam.
Light
Trucks
(0-10,000 Lbs.
G.V.W.)
Service Factor
Code
1.15
013--
1.10
013--
Retail Factor
Code
1.70
023--
1.65
023--
Commercial Factor
Code
1.60
033--
1.70
033--
Medium
Trucks
(10,001-
20,000
Lbs. G.V.W.)
Service Factor
Code
.90
213--
1.00
213--
Retail Factor
Code
.90
223--
1.00
223--
Commercial Factor
Code
.90
233--
1.00
233--
Heavy
Trucks
(20,001-
45,000
Lbs. G.V.W.)
Service Factor
Code
1.00
313--
1.00
313--
Retail Factor
Code
1.00
323--
1.00
323--
Commercial Factor
Code
1.00
333--
1.00
333--
Extra-Heavy Trucks
(Over 45,000 Lbs. G.V.W.)
Factor
Code
1.25
403--
1.20
403--
Heavy
Truck-Tractors
(0-45,000
Lbs. G.C.W.)
Service Factor
Code
1.00
343--
1.00
343--
Retail Factor
Code
1.00
353--
1.00
353--
Commercial Factor
Code
1.00
363--
1.00
363--
Extra-Heavy
Truck-Tractors
(Over 45,000 Lbs. G.C.W.)
Factor
Code
1.25
503--
1.20
503--
Trailer Types

 

Semitrailers Factor
Code
.20
673--
.75
673--
Trailers Factor
Code
.20
683--
.75
683--
Service or Utility Trailer
(0-2,000 Lbs. Load Capacity)
Factor
Code
0
693--
.75
693--



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RULE 23
TRUCKS, TRACTORS AND TRAILERS CLASSIFICATIONS


Fleet Primary Classifications — Rating Factors and Statistical Codes
a. Fleet Primary Classifications — Local Radius

  Size
Class

Business
Use
Class

 

Radius Class
Local
Up to 50 Miles
Liability Phys. Dam.
Light
Trucks
(0-10,000 Lbs.
G.V.W.)
Service Factor
Code
1.00
014--
1.00
014--
Retail Factor
Code
1.60
024--
1.20
024--
Commercial Factor
Code
1.30
034--
1.15
034--
Medium
Trucks
(10,001-
20,000
Lbs. G.V.W.)
Service Factor
Code
1.05
214--
.85
214--
Retail Factor
Code
1.65
224--
1.00
224--
Commercial Factor
Code
1.35
234--
.95
234--
Heavy
Trucks
(20,001-
45,000
Lbs. G.V.W.)
Service Factor
Code
1.10
314--
.75
314--
Retail Factor Code 1.70 324-- 1.15 324--
Commercial Factor
Code
1.80
334--
1.00
334–
Extra-Heavy Trucks
(Over 45,000 Lbs. G.V.W.)
Factor
Code
2.50
404--
1.15
404--
Heavy
Truck-Tractors
(0-45,000
Lbs. G.C.W.)
Service Factor
Code
1.50
344--
1.05
344--
Retail Factor
Code
2.40
354--
1.45
354--
Commercial Factor
Code
2.10
364--
1.25
364--
Extra-Heavy
Truck-Tractors
(Over 45,000 Lbs. G.C.W.)
Factor
Code
2.60
504--
1.25
504--
Trailer Types

 

Semitrailers Factor
Code
.25
674--
.85
674--
Trailers Factor
Code
.15
684--
.65
684--
Service or Utility Trailer
(0-2,000 Lbs. Load Capacity)
Factor
Code
0
694--
.40
694--



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RULE 23
TRUCKS, TRACTORS AND TRAILERS CLASSIFICATIONS


Fleet Primary Classifications — Rating Factors and Statistical Codes
b. Fleet Primary Classifications — Intermediate Radius

  Size
Class

Business
Use
Class

 

Radius Class
Intermediate
51 to 200 Miles
Liability Phys. Dam.
Light
Trucks
(0-10,000 Lbs.
G.V.W.)
Service Factor
Code
1.10
015--
1.05
015--
Retail Factor
Code
1.65
025--
1.50
025--
Commercial Factor
Code
1.55
035--
1.40
035--
Medium
Trucks
(10,001-
20,000
Lbs. G.V.W.)
Service Factor
Code
1.20
215--
1.00
215--
Retail Factor
Code
1.70
225--
1.25
225--
Commercial Factor
Code
1.60
235--
1.20
235--
Heavy
Trucks
(20,001-
45,000
Lbs. G.V.W.)
Service Factor
Code
1.35
315--
.85
315--
Retail Factor
Code
1.75
325--
1.35
325--
Commercial Factor
Code
2.25
335--
1.20
335--
Extra-Heavy Trucks
(Over 45,000 Lbs. G.V.W.)
Factor
Code
3.00
405--
1.35
405--
Heavy
Truck-Tractors
(0-45,000
Lbs. G.C.W.)
Service Factor
Code
1.55
345--
1.15
345--
Retail Factor
Code
2.45
355--
1.65
355--
Commercial Factor
Code
2.60
365--
1.45
365--
Extra-Heavy
Truck-Tractors
(Over 45,000 Lbs. G.C.W.)
Factor
Code
3.75
505--
1.45
505--
Trailer Types

 

Semitrailers Factor
Code
.30
675--
1.05
675--
Trailers Factor
Code
.30
685--
.85
685--
Service or Utility Trailer
(0-2,000 Lbs. Load Capacity)
Factor
Code
0
695--
.60
695--



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RULE 23
TRUCKS, TRACTORS AND TRAILERS CLASSIFICATIONS

Fleet Primary Classifications — Rating Factors and Statistical Codes
c. Fleet Primary Classifications — Long Distance Radius

  Size
Class

Business
Use
Class

 

Radius Class
Long Distance
Over 200 Miles
Liability Phys. Dam.
Light
Trucks
(0-10,000 Lbs.
G.V.W.)
Service Factor
Code
1.15
016--
1.10
016--
Retail Factor
Code
1.70
026--
1.65
026--
Commercial Factor
Code
1.60
036--
1.70
036--
Medium
Trucks
(10,001-
20,000
Lbs. G.V.W.)
Service Factor
Code
.90
216--
1.00
216--
Retail Factor
Code
.90
226--
1.00
226--
Commercial Factor
Code
.90
236--
1.00
236--
Heavy
Trucks
(20,001-
45,000
Lbs. G.V.W.)
Service Factor
Code
1.00
316--
1.00
316--
Retail Factor
Code
1.00
326--
1.00
326--
Commercial Factor
Code
1.00
336--
1.00
336--
Extra-Heavy Trucks
(Over 45,000 Lbs. G.V.W.)
Factor
Code
1.25
406--
1.20
406--
Heavy
Truck-Tractors
(0-45,000
Lbs. G.C.W.)
Service Factor
Code
1.00
346--
1.00
346--
Retail Factor
Code
1.00
356--
1.00
356--
Commercial Factor
Code
1.00
366--
1.00
366--
Extra-Heavy
Truck-Tractors
(Over 45,000 Lbs. G.C.W.)
Factor
Code
1.25
506--
1.20
506--
Trailer Types

 

Semitrailers Factor
Code
.20
676--
.75
676--
Trailers Factor
Code
.20
686--
.75
686--
Service or Utility Trailer
(0-2,000 Lbs. Load Capacity)
Factor
Code
0
696--
.75
696--



SECONDARY CLASSIFICATIONS


Since primary classification rating factors do not fully reflect the exposures created by certain vehicle usage, secondary rating factors are used. The secondary classifications, like the primary classification factors, apply per vehicle based on each vehicle's use and not the owner's type of business.

The secondary classification is composed of a 2-digit code number, which indicates a special industry or business group.
1. Truckers
2. Food Delivery
3. Specialized Delivery
4. Waste Delivery
5. Farmers
6. Dump and Transit Mix Trucks & Trailers
7. Contractors
8. Not Otherwise Specified

Each main category (industry group) is divided into various sub-categories, and each sub-category has its own unique 2-digit class code and factor. Refer to your state exception pages for classifications and factors applicable in your state.

Where more than one secondary classification applies, use the highest-rated classification unless 80% of the use is in a lower-rated activity. In that case, use the lower-rated classification.

On the following pages are the tables for secondary classifications and factors.


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RULE 23
TRUCKS, TRACTORS AND TRAILERS CLASSIFICATIONS


C. Secondary Classification - Special Industry Class
1. Application - These classifications and codes, but not the rating factors, apply to zone-rated autos.

2. Autos Having More Than One Use - Where more than one secondary rating factor applies, use the highest-rated classification unless 80% of the use is in a lower-rated activity. In that case, use the lower-rated class.

3. Truckers - Autos used to haul or transport goods, materials or commodities for another, other than autos used in moving operations.



Secondary Factor to Be Combined with Primary Factor
Trailer Types and Zone-Rated Classification Autos Code to Be Inserted in 4th & 5th Digit of All Other Autos Classification Code
a. Common Carriers Local
Intermediate
Long Distance
0.00
0.00
0.00
+0.85
+0.95
+0.95
21
21
21
b. Contract Carriers
(Other than Chemical or Iron and Steel Haulers)
Local
Intermediate
Long Distance
0.00
0.00
0.00
+0.85
+0.95
+0.95
22
22
22
c. Contract Carriers
Hauling Chemicals
Local
Intermediate
Long Distance
0.00
0.00
0.00
+0.85
+0.95
+0.95
23
23
23
d. Contract Carriers
Hauling Iron and Steel
Local
Intermediate
Long Distance
0.00
0.00
0.00
+0.85
+0.95
+0.95
24
24
24
e. Exempt Carriers (Other than Livestock) Local
Intermediate
Long Distance
0.00
0.00
0.00
+0.85
+0.95
+0.95
25
25
25
f. Exempt Carriers
Hauling Livestock
Local
Intermediate
Long Distance
0.00
0.00
0.00
+0.85
+0.95
+0.95
26
26
26
g. Carriers Engaged in Both Private Carriage and Transporting Goods, Materials or Commodities for Others Local
Intermediate
Long Distance
0.00
0.00
0.00
+0.85
+0.95
+0.95
02
02
02
h. Tow Trucks For Hire Local
Intermediate
Long Distance
0.00
0.00
0.00
+0.85
+0.95
+0.95
03
03
03
i. All Others Local
Intermediate
Long Distance
0.00
0.00
0.00
+0.85
+0.95
+0.95
29
29
29



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RULE 23
TRUCKS, TRACTORS AND TRAILERS CLASSIFICATIONS


4. Food Delivery

Autos used by food manufacturers to transport raw and finished products or used in wholesale distribution of food.

Secondary Factor to Be Combined with Primary Factor
Trailer Types and Related Classification Autos Code to Be Inserted in 4th & 5th Digit of All Other Autos Classification Code
a. Canneries and Packing Plants
b. Fish and Seafood
c. Frozen Food
d. Fruit and Vegetable
e. Meat or Poultry
f. All Other
0.00
0.00
0.00
0.00
0.00
0.00
+0.35
+0.35
+0.35
+0.35
+0.35
+0.35
31
32
33
34
35
39

5. Specialized Delivery
Autos used in deliveries subject to time and similar constraints.

Secondary Factor to Be Combined with Primary Factor
Trailer Types and Related Classification Autos Code to Be Inserted in 4th & 5th Digit of All Other Autos Classification Code
a. Armored Cars
b. Film Delivery
c. Magazines or Newspapers
d. Mail and Parcel Post
e. All Other
0.00
0.00
0.00
0.00
0.00
+0.40
+0.40
+0.40
+0.40
+0.40
41
42
43
44
49



COMMERCIAL LINES MANUAL
DIVISION ONE - AUTOMOBILE



RULE 23
TRUCKS, TRACTORS AND TRAILERS CLASSIFICATIONS

6. Waste Disposal

Autos transporting salvage and waste material for disposal or resale.

Secondary Factor to Be Combined with Primary Factor
Trailer Types and Related Classification Autos Code to Be Inserted in 4th & 5th Digit of All Other Autos Classification Code
a. Auto Dismantlers
b. Building Wrecking Operators
c. Garbage
d. Junk Dealers
e. All Other
0.00
0.00
0.00
0.00
0.00
+0.50
+0.50
+0.50
+0.50
+0.50
51
52
53
54
59

7. Farmers
Autos owned by a farmer, used in connection with the operation of his own farm and occasionally used to haul commodities for other farmers.

Secondary Factor to Be Combined with Primary Factor
Trailer Types and Related Classification Autos Code to Be Inserted in 4th & 5th Digit of All Other Autos Classification Code
a. Individually Owned or Family Corp.
(Other than Livestock Hauling)
b. Livestock Hauling
c. All Other

0.00

0.00
0.00

-.50

-.50
-.50
61

62
69



COMMERCIAL LINES MANUAL
DIVISION ONE - AUTOMOBILE



RULE 23
TRUCKS, TRACTORS AND TRAILERS CLASSIFICATIONS

8. Dump and Transit Mix Trucks & Trailers


Secondary Factor to Be Combined with Primary Factor
Trailer Types and Related Classification Autos Code to Be Inserted in 4th & 5th Digit of All Other Autos Classification Code
a. Excavating
b. Sand and Gravel (Other than Quarrying)
c. Mining
d. Quarrying
e. All Other

0.00
0.00

0.00
0.00
0.00

-0.15
-0.15

-0.15
-0.15
-0.15
71
72

73
74
79

9. Contractors

(Other than dump trucks)
Secondary Factor to Be Combined with Primary Factor
Trailer Types and Related Classification Autos Code to Be Inserted in 4th & 5th Digit of All Other Autos Classification Code
a. Building - Commercial
b. Building - Private Dwellings
c. Electrical, Plumbing, Masonry, and Other Repair or Service
d. Excavating
e. Street and Road
f. All Other

0.00
0.00
0.00

0.00
0.00
0.00

81
82
83

84
85
89

COMMERCIAL LINES MANUAL DIVISION ONE -
AUTOMOBILE RULE 23 TRUCKS, TRACTORS AND TRAILERS CLASSIFICATIONS



10. Not Otherwise Specified


Secondary Factor to Be Combined with Primary Factor
Trailer Types and Zone-Rated Classification Autos Code to be Inserted in 4th & 5th Digit of All Other Autos Classification Code

a. Logging and Lumbering
b. All Other

0.00
0.00
91
99

Secondary Factor to Be Combined with Primary Factor
Trailer Types and Related Classification Autos Code to Be Inserted in 4th & 5th Digit of All Other Autos Classification Code
a. Logging and Lumbering
b. All Other

0.00
0.00

91
99



Example:
Continuing with the earlier example where the primary classification was 2 2 4, we can now determine the secondary classification.

Assuming once again that we have a retail furniture store delivering to individual homes, the proper secondary classification would be 9 9. Code 9 9 comes from the "not otherwise specified" - all other category. Therefore, the complete primary and secondary classification is 2 2 4 9 9.

ZONE CLASSIFICATIONS


All autos other than light trucks (GVW 0-10,000 lbs) or trailers used with light trucks, and private-passenger types traveling beyond a 200-mile radius are to be Zone classified.

Zone Classification means that in addition to the primary and secondary classifications, you must determine the 2-digit zone for the point of principal garaging, and the 3-digit zone for the farthest terminal. A terminal is any location at which an auto regularly loads or unloads. The zone for the farthest terminal can be obtained from the state rate pages for each state.

The Zone definitions and codes for the point of principal garaging are available either from the Metropolitan Zones table (see following exhibits) or from the Regional Zone table if point of garaging is not listed on the Metropolitan Zones table).

COMMERCIAL LINES MANUAL
DIVISION ONE - AUTOMOBILE

D. Long Distance Zone Definitions

1. Metropolitan Zones

  1. Atlanta Zone — 01   Includes Clayton and Cobb Counties and Atlanta, Georgia territories
  2. Baltimore/Washington Zone — 02   Includes Baltimore, Baltimore Suburban and Outer Suburban, Montgomery County Suburban and Other Suburban, and Prince Georges County Suburban and Other Suburban, Maryland territories; the entire District of Columbia; and Alexandria City, Arlington, Falls Church City and Arlington — Alexandria Suburban, Virginia territories.
  3. Boston Zone — 03   Includes all of Essex, Middlesex, Norfolk and Suffolk, Massachusetts Counties.
  4. Buffalo Zone — 04   Includes Erie County (Balance), Buffalo, Buffalo Semi-Suburban, Buffalo Suburban, Niagara Falls and Niagara Falls Suburban, New York territories.
  5. Charlotte Zone — 05   Includes Charlotte and all of Mecklenburg County, North Carolina territories.
  6. Chicago Zone — 06   Includes all of Cook and Du Page County territories, Lake County (Balance), Waukegan — North Chicago and all Chicago, Illinois territories; and East Chicago, Indiana territories.
  7. Cincinnati Zone — 07   Includes Cincinnati, Dayton and Hamilton — Middletown, Ohio; and Covington — Newport, Kentucky territories.
  8. Cleveland Zone — 08   Includes all of Geauga, Lorain and Medina County territories, Portage County (excluding the village of Mogadore), all Cleveland and Painesville, Ohio territories.
  9. Dallas/Fort Worth Zone — 09   Includes all of Dallas and Tarrant, Texas Counties.
  10. Denver Zone — 10   Includes Denver and North Central Colorado territories.
  11. Detroit Zone — 11   Includes all Detroit, Dearborn and Pontiac, Michigan territories.
  12. Hartford Zone — 12   Includes all of Hartford and New Haven Counties, and Bridgeport and Fairfield — Stratford, Connecticut territories.
  13. Houston Zone — 13   Includes all of Chambers, Galveston, and Harris, Texas Counties
  14. Indianapolis Zone — 14   Includes all of Marion County, Indiana territory.
  15. Jacksonville Zone — 15   Includes all of Jacksonville, Florida territory.
  16. Kansas City Zone — 16   Includes all of Kansas City, Kansas; and Independence and all Kansas City, Missouri territories.
  17. Little Rock Zone — 17   Includes all of Pulaski County, Arkansas territory.
  18. Los Angeles Zone — 18   Includes all of Los Angeles and Orange Counties and also Riverside and San Bernardino, California territories.
  19. Louisville Zone — 19   Includes all of Jefferson County, Kentucky and New Albany and Jeffersonville, Indiana territories.
  20. Memphis Zone — 20   Includes all of Shelby County, Tennessee territory.
  21. Miami Zone — 21   Includes Miami and Miami Beach, Florida territories.
  22. Milwaukee Zone — 22   Includes Kenosha, Milwaukee Metropolitan, Semi-Suburban and Suburban and Racine, Wisconsin territories.
  23. Minneapolis/St. Paul Zone — 23   Includes Minneapolis Metropolitan and Suburban; and St. Paul Metropolitan and Suburban, Minnesota territories.
  24. Nashville Zone — 24   Includes all of Davidson County, Tennessee territory.
  25. New Orleans Zone — 25   Includes all of New Orleans, Louisiana territory.
  26. New York City Zone — 26   Includes all of New York City, Nassau and Westchester, New York Counties; all of Bergen, Essex and Hudson Counties, Elizabeth, New Brunswick, Perth Amboy and Plainfield, New Jersey territories; and Darien — Greenwich and Stamford, Connecticut territories.
  27. Oklahoma City Zone — 27   Includes all of Oklahoma County, Oklahoma territory.
  28. Omaha Zone — 28   Includes all of Douglas and Sarpy, Nebraska Counties and Council Bluffs, Iowa territory.
  29. Phoenix Zone — 29   Includes Mesa-Tempe and Phoenix, Arizona territories.
  30. Philadelphia Zone — 30   Includes Bucks County (Balance), Chester County (Balance), Montgomery County (Balance), Allentown — Bethlehem and all Philadelphia, Pennsylvania territories; Wilmington, Delaware and Camden, Camden Suburban and Trenton, New Jersey territories.
  31. Pittsburgh Zone — 31   Includes all of Allegheny and Beaver Counties, Pennsylvania territories.
  32. Portland Zone — 32   Includes all of Portland, Portland Semi-Suburban and Portland Suburban, Oregon and Vancouver, Washington territories.
  33. Richmond Zone — 33   Includes all of Richmond, Virginia territory.
  34. St. Louis Zone — 54   Includes all of St. Louis County, Missouri, and East St. Louis, Illinois territories.
  35. Salt Lake City Zone — 35   Includes all of Salt Lake City County, Utah territory.
  36. San Francisco Zone — 36   Includes all of Alameda, Contra Costa, Marin, San Francisco, San Mateo and Santa Clara, California Counties.
  37. Tulsa Zone — 37   Includes all of Tulsa, Oklahoma territory.

 

2. Regional Zones

  1. Pacific Coast Zone — 40   Includes the States of California (excl. Los Angeles and San Francisco Zones), Oregon (excl. Portland Zone) and Washington (excl. Portland Zone).
  2. Mountain Zone — 41   Includes the States of Arizona (excl. Phoenix Zone), Colorado (excl. Denver Zone), Idaho, Montana, Nevada, New Mexico, Utah (excl. Salt Lake City Zone) and Wyoming.
  3. Midwest Zone — 42   Includes the States of Iowa (excl. Omaha Zone), Kansas (excl. Kansas City Zone), Missouri (excl. Kansas City and St. Louis Zones), Minnesota (excl. Minneapolis/St. Paul Zone), Nebraska (excl. Omaha Zone), North Dakota, South Dakota and Wisconsin (excl. Milwaukee Zone).
  4. Southwest Zone — 43    Includes the States of Arkansas (excl. Little Rock Zone), Oklahoma (excl. Oklahoma City and Tulsa Zones), and Texas (excluding Dallas/Ft. Worth and Houston Zones).
  5. North Central Zone — 44   Includes the States of Illinois (excluding Chicago and St. Louis Zones), Indiana (excluding Chicago, Indianapolis, and Louisville Zones), Ohio (excluding Cincinnati and Cleveland Zones) and Michigan (excluding Detroit area).
  6. Mideast Zone — 45   Includes the States of Kentucky (excluding Cincinnati and Louisville Zones), Tennessee (excluding Memphis and Nashville Zones) and West Virginia.
  7. Gulf Zone — 46   Includes the States of Alabama, Louisiana (excluding New Orleans Zone) and Mississippi.
  8. Southeast Zone — 47   Includes the States of Florida (excl. Jacksonville and Miami Zones), Georgia (excluding Atlanta Zone), North Carolina (excluding Charlotte Zone), South Carolina and Virginia (excluding Baltimore/Washington and Richmond Zones).
  9. Eastern Zone — 48   Includes the States of Delaware (excl. Philadelphia Zone), Maryland (excluding Baltimore/Washington Zone), New York (excluding Buffalo and New York City Zones), New Jersey (excluding New York City and Philadelphia Zones) and Pennsylvania (excl. Philadelphia and Pittsburgh Zones).
  10. New England Zone — 49   Incl. The States of Connecticut (excl. Hartford and NYC Zones), Maine, Mass (excl. Boston Zone, NH, RI and VT.
  11. Alaska Zone — 50 — All of Alaska

E. Zone-Rating Tables For liability the zone-rating tables include the zone or combination zone base premiums for autos; and for physical damage they include the zone or combination zone factors to be applied to the physical damage base premium table.


THE COMMERCIAL AUTO COVERAGE FORMS



Coverage Forms Provisions
The provisions are designed to restrict or clarify the intent of the insurance coverage. This is where the company representative can locate the rights, duties and responsibilities of parties to the insurance contract as well as the coverage inclusions and exclusions. This section will also define some of the terms used in the policy, i.e., "auto", "mobile equipment", etc.

Business Auto - Liability and Physical Damage
Section I - Covered Autos - describes the Symbols used on the Business Auto Coverage Form to activate coverage. This is a key feature of the provisions since each symbol represents the legal relationship between the insured, the insured auto, and the type of coverage provided to the insured auto. Here is the list of symbols with a brief explanation for each:

SYMBOL 1 = ANY "AUTO."
SYMBOL 2 = OWNED "AUTOS" ONLY. Only those "autos" you own (and for liability coverage any "trailers" you do not own while attached to power units you own). This includes those "autos" you acquire ownership of after the policy begins.

SYMBOL 3 = OWNED PRIVATE-PASSENGER "AUTOS" ONLY. Only the private-passenger "autos" you own. This includes those private-passenger "autos" you acquire ownership of after the policy begins.

SYMBOL 4 = OWNED "AUTOS" OTHER THAN PRIVATE-PASSENGER "AUTOS" ONLY. Only those "autos" you own that are not of the private passenger-type (and for liability coverage any "trailers" you do not own while attached to power units you own). This includes those "autos" not of the private passenger type you acquire ownership of after the policy begins.

SYMBOL 5 = OWNED "AUTOS" SUBJECT TO NO-FAULT. Only those "autos" you own that are required to have no-fault benefits in the state where they are licensed or principally garaged. This includes those "autos" you acquire ownership of after the policy begins provided they are required to have no-fault benefits in the state where they are licensed or principally garaged.

SYMBOL 6 = OWNED "AUTOS" SUBJECT TO A COMPULSORY UNINSURED MOTORISTS LAW. Only those "autos" you own that because of the law in state where they are licensed or principally garaged are required to have and cannot reject uninsured motorist coverage. This includes those "autos" you acquired ownership of after the policy begins provided they are subject to the same uninsured motorists requirements.

SYMBOL 7 = SPECIFICALLY DESCRIBED "AUTOS." Only those "autos" described in Item Three of the Declarations for which a premium charge is shown (and for liability coverage any "trailer" you do not own while attached to any power unit described in Item Three).

SYMBOL 8 = HIRED "AUTOS" ONLY. Only those "autos" you lease, hire, rent or borrow. This does not include any "autos" you lease, hire, rent or borrow from any of your employees or partners or members of their households.

SYMBOL 9 = NONOWNED "AUTOS" ONLY. Only those "autos" you do not own, lease, hire, rent or borrow that are used in connection with your business. This includes "autos" owned by your employees or partners or members of their households but only while used in your business or your personal affairs.

Section II - Liability. This section defines the insured, indicates amounts paid in case of a claim, and lists exclusions the policy will not cover for Liability.

Section III - Physical Damage Coverage. This section lists the conditions and exclusions when physical damage is provided for owned autos.

Section IV - Business Auto Conditions. This section lists the rights of the insured, the insurance company, and various special stipulations for the Business Auto Coverage Form.

Section V - Definitions. This section defines and classifies various words and phrases used in the policy.

Business Auto - Physical Damage
Section I - Covered Autos. This section describes the Symbols used on this policy to activate certain physical damage coverages only. Below is a list of symbols explain these coverages.

SYMBOL 1 = OWNED "AUTOS" ONLY - Only those "autos" you own. This includes those "autos" you acquire ownership of after the policy begins.

SYMBOL 2= OWNED PRIVATE-PASSENGER "AUTOS" ONLY - Only the private-passenger "autos" you own. This includes those private-passenger "autos" you acquire ownership of after the policy begins.

SYMBOL 3 = OWNED "AUTOS" OTHER THAN PRIVATE-PASSENGER "AUTOS" ONLY - Only those "autos" you own that are not of the private-passenger type. This includes those "autos" not of the private-passenger type you acquire ownership of after the policy begins.

SYMBOL 4 = SPECIFICALLY DESCRIBED "AUTOS" - Only those "autos" described in Item Three of the Declarations for which a premium charge is shown.

SYMBOL 5 = HIRED "AUTOS" ONLY - Only those "autos" you lease, hire, rent or borrow. This does not include any "auto" you lease, hire, rent or borrow from any of your "employees", partners (if you are a partnership), members (if you are a limited liability company), or members of their households.

Section II - Physical Damage Coverage. This section lists the conditions and exclusions when physical damage is provided for owned autos. When physical damage coverage is provided, the company representative must determine the original cost new and the age group of the vehicle.

Section III - Business Auto Conditions.
Refer to Business Auto - Liability and Physical Damage Section IV.

Section IV - Definitions. This section defines "auto" and "loss." "Auto" being defined as a land motor vehicle, trailer or semi-trailer designed for travel on public roads. "Loss" being defined as direct and accidental loss or damage.