1. Forms
2. DL
3. DL-01-XX

What the Form Is

The DL 01 XX is a state-specific endorsement used in conjunction with dwelling insurance policies. Its primary purpose is to amend the cancellation and nonrenewal provisions outlined in the Personal Liability Supplement form (DL 24 01) to ensure compliance with the specific statutory requirements of the state where the policy is issued. The "XX" in the form number typically represents a state-specific identifier or code.

Classes of Business It Applies To

This endorsement applies to personal lines, specifically for dwelling policies where personal liability coverage is included via the DL 24 01 supplement. This can include:

• Owner-occupied dwellings not eligible for a standard homeowners policy.
• Tenant-occupied dwellings (landlord insurance).
• Dwellings occupied for only a portion of the year (e.g., seasonal or secondary homes).

Real-world example: If an insurance company is providing a dwelling policy with personal liability coverage in a state that has specific rules about how many days' notice must be given for cancellation due to non-payment of premium, the DL 01 XX for that state would modify the standard DL 24 01 cancellation clause to reflect those state-mandated notice periods.

Special Considerations

• State-Specific Variations: The exact content and numbering (the "XX" part and edition dates) of this endorsement will vary significantly from one state to another. It is not a nationally uniform endorsement.
• Mandatory Attachment: In states where specific cancellation or nonrenewal laws differ from the standard language in the DL 24 01, attachment of the relevant DL 01 XX endorsement is typically mandatory to ensure the policy is compliant with state law.
• Impact on Policy Language: This endorsement supersedes any conflicting cancellation or nonrenewal language found in the base DL 24 01 or other policy forms.

Real-world example: A state might have unique regulations regarding policy cancellation if the insured property is deemed to have an increased hazard not contemplated by the standard form. The state's DL 01 XX would incorporate these specific grounds and procedures for cancellation.

Key Information for Agents and Underwriters

• Compliance is Key: Agents must ensure they are using the correct and most current version of the DL 01 XX for the specific state in which the dwelling policy is being written. Failure to do so can lead to regulatory non-compliance and potential issues at the time of a claim or cancellation.
• Understanding State Nuances: Underwriters need to be aware of the varying cancellation and nonrenewal provisions imposed by different states through these endorsements, as this can affect the insurer's rights and obligations under the policy.
• System Updates: Insurers should ensure their policy issuance systems are correctly programmed to attach the appropriate state-specific DL 01 XX when the DL 24 01 is part of a dwelling policy.
• Procedural Focus: While critical for procedural compliance, the DL 01 XX typically amends procedural aspects like notice periods, permissible reasons for cancellation/nonrenewal, and the method of delivering such notices, rather than altering the scope of liability coverage provided by the DL 24 01.