What it does
CP 99 14 adds a Litigation Funding Mutual Disclosure condition to the Commercial Property Coverage Part or Standard Property Policy. If the insurer and the insured disagree whether, or to what extent, a claim or suit is covered, either party may make a written demand for mutual disclosure of any "third-party litigation funding agreement" about that claim or suit. Each party must then disclose in writing within 30 days whether it or its attorneys have signed one. If one exists, the disclosure must include:
- A copy of the agreement.
- The names of each person or organization that entered into it.
- Whether the funder must approve, or be consulted on, litigation or settlement decisions, and on what terms.
- A brief description of the funder's financial interest.
Updates are due within 30 days of any change, or of any new agreement signed after the demand.
Definition
A "third-party litigation funding agreement" is funding provided to a party or its attorneys for a legal matter or portfolio of matters, in exchange for repayment or other consideration contingent on the outcome.
Background
Verisk's 2025 year-in-review lists a new "Third-Party Litigation Funding Endorsement" as part of the ISO Commercial Property 2025 multistate filing. Circular LI-CF-2026-003 announced the four new 06 26 multistate endorsements. The condition is "mutual": both the insurer and the insured have the same disclosure duty. In Arizona, ISO's forms filing CF-2025-OFR25 (SERFF ISOF-134728874, approved February 3, 2026) makes the 06 26 endorsements effective June 1, 2026 for new and renewal policies. Effective dates in other states depend on each state filing and on carrier adoption.
Quoting and selling notes
- This mostly affects disputed property claims involving public adjusters, assignment-of-benefits arrangements or litigation financed by third parties.
- Tell insureds who pursue a disputed claim with outside funding that they may have to disclose the arrangement.
