What it does
CA 05 34 adds a Litigation Funding Mutual Disclosure Condition to ISO commercial auto policies. As its title indicates, it deals with disclosure, between the insured and the insurer, of third-party litigation funding arrangements connected with claims or suits under the policy. ISO introduced it in its 2025 multistate forms revision (CA-2025-OFR25), effective September 1, 2026 in most states (later in a few, such as October 1, 2026 in Connecticut and Kentucky and December 1, 2026 in Michigan and Rhode Island).
Why it matters
Third-party funding arrangements can affect how claims and suits are pursued, defended and settled. A mutual disclosure condition is intended to give the insured and the insurer information about such arrangements.
Selling notes
- Read the condition for what each party must disclose, when, and what happens if a disclosure obligation is not met.
- Insureds involved in litigation (for example, a fleet pursuing a recovery claim or defending a suit) should tell their agent and insurer about any funding arrangements they enter into.
- Expect the condition on renewals after the insurer adopts the revision; it does not add or remove coverage by itself.
