What the form is
The CA 01 96 "Texas Changes" endorsement is a mandatory form used with the Commercial Auto Coverage Part in Texas. Its primary purpose is to amend the policy provisions to comply with specific Texas statutes, regulations, or common insurance practices that differ from the standard, countrywide ISO (Insurance Services Office) policy language. This can include modifications to definitions, conditions, exclusions, or coverage grants within the policy. For example, it might address Texas-specific requirements for policy cancellation, nonrenewal, uninsured/underinsured motorists coverage, or other auto liability and physical damage provisions.
Classes of business it applies to
This endorsement applies to any business or organization that has commercial auto exposures in the state of Texas and is insured under a policy using the standard ISO Commercial Auto Coverage Part or a similar form. This includes a wide range of industries, such as:
- Contractors (plumbers, electricians, construction)
- Delivery and transportation services
- Retail businesses with delivery vehicles
- Service industries (landscaping, repair services)
- Any company that owns, leases, or uses vehicles for business purposes in Texas.
Real-world example: A plumbing company based in Dallas, Texas, that owns a fleet of vans used by its technicians would have the CA 01 96 endorsement attached to its commercial auto policy to ensure the coverage complies with Texas insurance laws.
Special considerations
There are several important points to consider regarding the CA 01 96 endorsement:
- Mandatory Attachment: For policies providing commercial auto coverage in Texas, this endorsement (or an equivalent carrier-specific form) is typically required to ensure legal and regulatory compliance.
- Supersedes Standard Policy Language: The provisions within the CA 01 96 endorsement will supersede any conflicting language in the base Commercial Auto Coverage Form for operations or vehicles in Texas.
- Edition Dates: Insurance forms are periodically updated. It's crucial to use the correct and current edition of the CA 01 96 as required by the insurer and regulatory filings. The listed edition dates (e.g., 03 06, 10 13, 11 20) indicate revisions to the form over time.
- Carrier Variations: While ISO develops standard forms like the CA 01 96, some insurance carriers may have their own proprietary Texas commercial auto endorsements that serve a similar purpose. These would also aim to bring the policy into compliance with Texas requirements.
Real-world example: If a standard ISO commercial auto policy has a provision for policy cancellation that differs from Texas law, the CA 01 96 would amend that provision to match the Texas requirement, such as specifying the number of days' notice required for cancellation.
Key information for agents and underwriters
Agents and underwriters must be familiar with the CA 01 96 for several reasons:
- Ensuring Compliance: It is the responsibility of agents and underwriters to ensure that commercial auto policies issued for Texas exposures include this endorsement or its equivalent to avoid regulatory issues and ensure the policy is enforceable as intended in Texas.
- Risk Assessment and Pricing: While this form primarily addresses compliance, the specific changes it introduces could subtly affect the scope of coverage, which is a factor in overall risk assessment and potentially pricing.
- Explaining Coverage to Insureds: Agents should be able to explain to Texas-based clients how this endorsement modifies their commercial auto coverage and why it is necessary.
- Coverage Interpretations: In the event of a claim, the language in the CA 01 96 will be critical in interpreting how coverage applies under Texas law. Underwriters should understand how these state-specific changes interact with the rest of the policy.
It is important to note that one specific version, CA 01 96 03 10, has been identified with the title "TX COMM AUTO TOWING AND LABOR COVERAGE", suggesting that specific Texas changes related to towing and labor may be addressed by this particular form or edition. However, the more general title "Texas Changes" is associated with multiple editions of CA 01 96.