1. Forms
2. FP
3. FP-01-63

What the form is

FP 01 63 is an insurance policy endorsement, specifically identified as an Amendatory Endorsement. It is a mandatory attachment to farm insurance policies when certain farm property coverage forms, such as FP 10 60 (Causes of Loss Form – Farm Property), FP 00 30 (Mobile Agricultural Machinery and Equipment Coverage Form), or FP 00 40 (Livestock Coverage Form), are included. The primary purpose of this endorsement is to introduce an 'absolute exclusion' into the policy, thereby restricting coverage for unspecified risks. It is automatically part of the policy under these conditions unless explicitly replaced by alternative endorsements like FP 05 30 or FP 05 31.

Classes of business it applies to

This endorsement is relevant for agricultural businesses and farming operations. Specifically, it applies when coverage is written using:

• FP 10 60 – Causes of Loss Form – Farm Property
• FP 00 30 – Mobile Agricultural Machinery and Equipment Coverage Form
• FP 00 40 – Livestock Coverage Form

Real-world example: A commercial grain farm that has its harvesting equipment insured under FP 00 30 and its barns under a policy using FP 10 60 would likely have the FP 01 63 endorsement attached, which would exclude certain losses as defined in the endorsement.

Special considerations

The key characteristic of FP 01 63 is its function as an 'absolute exclusion'. While the provided information does not detail the specific perils or circumstances excluded by this form, its mandatory nature means that the exclusion it imposes is standard unless specific alternatives (FP 05 30, FP 05 31) are utilized. One source suggests that an endorsement providing limited pollution liability (FL 04 30) can be used in place of FP 01 63, which might imply that FP 01 63 could be related to excluding broad pollution or chemical-related incidents, but this is not explicitly stated for the farm *property* context of FP 01 63. Policyholders must be made aware of the specific exclusions introduced by this endorsement to understand the full scope of their coverage limitations.

Key information for agents and underwriters

For Agents:

• It is crucial to explain to the insured that the FP 01 63 is an 'absolute exclusion' and clearly communicate what specific risks are no longer covered due to this endorsement.
• If alternative endorsements like FP 05 30 or FP 05 31 are available and more suitable for the client's needs, these options should be discussed.
• Document that the implications of this mandatory exclusion have been explained to the client.

For Underwriters:

• Verify that FP 01 63 is attached to any policy that includes FP 10 60, FP 00 30, or FP 00 40, unless FP 05 30 or FP 05 31 is present.
• The specific nature of the 'absolute exclusion' within FP 01 63 is critical for risk assessment. The actual form wording is needed to determine the extent of the exclusion.
• While the form is mandatory, understanding the perils it excludes helps in assessing the remaining covered risks and ensuring the policy is rated appropriately for the exposures covered.

Note: The exact content of the 'absolute exclusion' in FP 01 63 is not detailed in the available search results. Access to the specific ISO form language is necessary for a complete understanding.