1. Forms
2. CA
3. CA-22-64

What the Form Is

The CA 22 64 is an endorsement specifically designed to add Personal Injury Protection (PIP) coverage to a commercial automobile insurance policy in the state of Texas. Personal Injury Protection, often referred to as no-fault coverage, provides benefits for reasonable and necessary medical expenses, loss of income, and potentially other related costs (like funeral expenses or loss of services) incurred by the named insured, their employees, and any passengers occupying a covered auto as a result of an auto accident. A key feature of PIP is that it pays these benefits regardless of who was legally at fault for the accident.

Classes of Business It Applies To

This endorsement is applicable to virtually any business entity that owns, leases, or hires autos for commercial purposes and requires or desires PIP coverage for vehicles operated in Texas. Examples include:

• Businesses providing company cars to sales staff or executives.
• Contracting businesses (e.g., plumbers, electricians, HVAC technicians, construction companies) that utilize trucks, vans, or other vehicles in their operations.
• Local delivery services, such as florists, restaurants offering delivery, or courier services.
• Service industry businesses that travel to client locations.
• Any commercial operation with vehicles registered or principally garaged in Texas where PIP coverage is desired or mandated to be offered.

Special Considerations

• Mandatory Offering in Texas: Texas law generally requires insurers to offer PIP coverage to auto insurance policyholders. Insureds have the option to reject this coverage, but such rejection must typically be in writing.
• Limits of Liability: The endorsement will specify the limit of PIP coverage purchased. This limit is the maximum amount payable per person, per accident for covered expenses. Common limits might be $2,500, $5,000, or higher.
• State-Specific: The CA 22 64 is tailored to Texas PIP laws and regulations. It modifies the standard Business Auto Coverage Form (like the CA 00 01) to incorporate this state-specific coverage.
• Coordination of Benefits: It's important to understand how PIP benefits coordinate with other potential sources of recovery, such as health insurance, workers' compensation (if the injured person is an employee injured in the course and scope of employment), or medical payments coverage. In Texas, PIP is generally primary for auto accident injuries, meaning it pays before other coverages like health insurance for those injuries.
• Named Driver Exclusion: If the policy includes a named driver exclusion endorsement, PIP coverage might still apply to the excluded driver as Texas law may limit the extent to which PIP can be excluded.

Key Information for Agents and Underwriters

• Risk Assessment: The primary risk associated with this endorsement is the potential for bodily injury to occupants of the insured's vehicles. Underwriters should consider the types of vehicles insured, their typical use, average number of occupants, territories of operation (primarily within Texas for this form), and the driving records of employees.
• Pricing: The premium for this endorsement will be influenced by the selected PIP limit, the number and types of covered autos, and the overall risk profile of the insured.
• Coverage Confirmation: Agents must ensure that Texas commercial auto clients are offered PIP coverage and that their decision (acceptance or rejection) is clearly documented to avoid potential errors and omissions claims.
• Underwriting Guidelines: Underwriters should verify that the selected PIP limits are consistent with the insured's needs and the insurer's guidelines. They should also ensure that the underlying commercial auto policy is correctly written and that all other necessary Texas-specific endorsements are included. The presence of this endorsement confirms that PIP coverage is being provided as per Texas regulations.
• Claims Handling: Adjusters handling claims under this endorsement must be familiar with Texas PIP law regarding eligible expenses, timeframes for payment, and dispute resolution processes.