1. Forms
2. DL
3. DL-24-02

What the form is

The DL 24 02, titled "Personal Liability Additional Policy Conditions," is an endorsement used in the ISO Dwelling Program. Its primary purpose is to add a set of standard policy conditions to a Personal Liability supplement (typically form DL 24 01) when that supplement is issued as a monoline (standalone) policy. These conditions are essential for the proper functioning and administration of the policy and include provisions such as:

• Liberalization Clause: If the insurer revises the policy to broaden coverage without additional premium, the insured automatically receives the benefit of the broadened coverage.
• Waiver or Change of Policy Provisions: States that the policy's terms can only be changed by written endorsement issued by the insurer, and that the insurer's waiver of a right does not affect its future rights.
• Assignment: Restricts the insured's ability to transfer the policy to someone else without the insurer's written consent.
• Death: Specifies what happens to policy coverage if the named insured dies.
• Cancellation: Outlines the conditions and procedures for policy cancellation by either the insured or the insurer, subject to state regulations.

This endorsement is critical because the Personal Liability supplement (DL 24 01) itself primarily contains the insuring agreements, exclusions, and definitions for liability coverage. The DL 24 02 provides the overarching contractual conditions needed to make it a complete, self-contained policy when not attached to a property coverage form.

Classes of business it applies to

The DL 24 02 is used in personal lines insurance scenarios where an individual requires standalone personal liability coverage. This situation might arise for:

• Renters: Individuals who rent their homes or apartments and do not have a homeowners policy (which typically includes personal liability). They might purchase a standalone personal liability policy for protection.
• Individuals with unique housing situations: People whose dwelling insurance doesn't include personal liability or offers insufficient liability coverage for their needs. For example, someone insuring a dwelling they own but do not occupy under a basic Dwelling Fire policy might need separate personal liability coverage.
• Specific Coverage Needs: Insureds who, for various reasons, need to separate their personal liability coverage from their property insurance.

Real-world example: Sarah rents an apartment. Her landlord has insurance on the building, but this does not cover Sarah's personal liability for accidents that might occur (e.g., a guest slips and falls in her apartment, or she accidentally injures someone away from her premises). Sarah purchases a standalone Personal Liability policy. This policy would likely be built using the DL 24 01 (Personal Liability supplement) and would require the DL 24 02 (Personal Liability Additional Policy Conditions) to add the necessary contractual terms, along with a declarations page and any state-specific endorsements.

Special considerations

• Monoline Policies Only: This endorsement is specifically for when the Personal Liability supplement is written as a standalone policy. It is generally not needed if personal liability coverage is added as part of a package policy (e.g., combined with a Dwelling Property form like DP 00 01, DP 00 02, or DP 00 03, and a Personal Liability Schedule DL 24 03).
• State Variations: While the DL 24 02 provides a standard set of conditions, state laws (especially regarding cancellation and nonrenewal) can vary. Therefore, state-specific mandatory endorsements (often in the DL 01 XX series, where XX is the state number) may be required to amend the conditions in DL 24 02 to comply with local regulations.
• Essential for Contract Validity: Without the conditions provided by DL 24 02 or similar provisions, a standalone personal liability supplement might be considered an incomplete contract.

Real-world example: An insurance company is issuing a monoline Personal Liability policy in California. They would use the DL 24 01 for the coverage, the DL 24 02 to add the standard policy conditions, a company declarations page, and would also need to attach any California-specific mandatory endorsements (e.g., DL 01 04 Special Provisions - California) to ensure the policy complies with California law.

Key information for agents and underwriters

• Underwriting Monoline Liability: When encountering this form, underwriters should recognize it signifies a monoline personal liability policy. The underwriting focus will be on the individual's personal exposures, as there isn't an associated property policy with the same carrier to provide context.
• Policy Construction: Agents and underwriters must ensure that when DL 24 01 is sold as a standalone policy, DL 24 02 is always included, along with a declarations page and all applicable state-specific endorsements, to form a complete and valid contract.
• Avoiding Gaps: Failing to attach DL 24 02 in a monoline setting could lead to ambiguities or disputes regarding fundamental policy operations like cancellation or changes to the policy.
• No Separate Premium: DL 24 02 itself does not typically carry a separate premium; its 'cost' is incorporated into the overall premium for the standalone personal liability policy. The primary rating consideration comes from the exposures covered under DL 24 01.
• Regulatory Compliance: It's crucial to stay updated on state-specific requirements that might modify or supplement the conditions within DL 24 02.