1. Forms
2. IL
3. IL-DS-00

Common Policy Declarations (IL DS 00)

The IL DS 00 Common Policy Declarations is a foundational document in a Commercial Package Policy (CPP). It serves as the cover page or "master" declarations page that provides a summary of information applicable to the entire policy and all its coverage parts. Think of it as the table of contents and introduction to the insured's unique policy, consolidating key details in one place. Its primary purpose is to present the "who, what, when, where, and how much" of the insurance contract at a high level before delving into the specifics of each coverage line.

This form identifies essential information such as:

• The Named Insured and their mailing address.
• The policy period (inception and expiration dates).
• A description of the business.
• A listing of all coverage parts included in the CPP (e.g., Commercial Property, General Liability, Commercial Auto, etc.) and the premium for each.
• The total policy premium.
• The insurance company providing the coverage.
• The producer (agent or broker) involved.
• A schedule of all forms and endorsements that apply to the overall policy.

Classes of Business It Applies To

The IL DS 00 is an "interline" form, meaning it's designed to be used with policies that combine multiple lines of insurance (a Commercial Package Policy). Therefore, it applies to a vast array of commercial enterprises that opt for a CPP to bundle their coverages. It's not specific to one industry but rather to the structure of the insurance policy. You'll find the IL DS 00 used for:

• Small to Medium-Sized Businesses (SMBs): Many SMBs across various sectors like retail stores, restaurants, professional offices (e.g., accountants, law firms), and light manufacturing operations utilize CPPs for their property and liability needs. The IL DS 00 would be the first page of their policy.
• Larger Commercial Accounts: While very large or complex risks might have highly customized manuscript policies, many larger businesses also utilize CPPs, making the IL DS 00 relevant.
• Specific Industry Programs: Insurers often have specialized CPP programs tailored to certain niches like healthcare providers, schools, churches, or manufacturing firms. The IL DS 00 would still be the common declarations page for these tailored packages.
• Real-World Example: A local bakery purchases a Commercial Package Policy that includes Commercial Property coverage for its building and equipment, General Liability for customer slip-and-falls, and Commercial Auto for its delivery van. The IL DS 00 would be attached, listing these coverage parts, the named insured (the bakery), the policy term, and the total premium.

Special Considerations

There are several important points to keep in mind regarding the IL DS 00:

• Accuracy is Paramount: All information on the IL DS 00 must be meticulously accurate. Errors in the Named Insured, policy period, or listed coverage parts can lead to significant coverage disputes or E&O issues. For instance, a misspelled named insured could cause problems during a claim, or failing to list an agreed-upon coverage part means that coverage likely doesn't exist.
• First Named Insured: The IL DS 00 prominently displays the "First Named Insured." This entity has specific rights and responsibilities under the policy that other named insureds may not, such as the right to cancel the policy, make changes (with insurer consent), and receive return premiums.
• Not a Standalone Document: The IL DS 00 does not provide coverage on its own. It introduces and summarizes the policy; the actual terms, conditions, exclusions, and limits of coverage are found within the individual coverage parts (e.g., Commercial Property Declarations, Commercial General Liability Declarations, and their respective coverage forms and endorsements) that are listed on the IL DS 00.
• Order of Information: It typically precedes other declarations pages specific to individual coverage lines (e.g., Commercial Property Declarations, Commercial General Liability Declarations).
• Regulatory Requirement: While the summary states "All States," specific state requirements might necessitate additional state-specific declarations or endorsements that supplement or amend the common declarations.
• Real-World Example: If a business owner reviews their new CPP and notices the IL DS 00 lists only Commercial Property and General Liability, but they had also requested and expected Commercial Auto coverage, this is a critical discrepancy that must be addressed immediately with their agent. The absence of Commercial Auto on the IL DS 00 (and corresponding coverage part declarations) likely means it's not part of the policy.

Key Information for Agents and Underwriters

The IL DS 00 is a crucial reference point for both agents and underwriters:

• Risk Overview: For underwriters, the IL DS 00 provides an immediate snapshot of the overall risk – the nature of the insured's business, the types and breadth of coverages being provided, and the total premium, which can be an initial indicator of the risk's scale.
• Policy Structure Checklist: Agents use it to ensure all requested and agreed-upon coverages are correctly included in the CPP. It's a final check before policy issuance or delivery to the client.
• Premium Breakdown: The form clearly shows the premium allocated to each coverage part, which is important for accounting, client understanding, and sometimes for premium financing purposes.
• Identifying Potential Gaps (High Level): While not detailing specific exclusions, an underwriter or experienced agent might look at the business description and the listed coverage parts on the IL DS 00 to identify potential, obvious gaps. For example, if a business described as a "Contractor" does not have Commercial Auto or Inland Marine listed, it might prompt further questions.
• Underwriting Consistency: Underwriters will compare the information on the IL DS 00 with the application and other supporting documentation to ensure consistency and to verify that the policy is structured correctly according to underwriting guidelines for the types of coverages provided.
• Endorsement Reference: The IL DS 00 often lists key interline endorsements that apply to the entire policy, which is critical for understanding the overall scope of coverage.
• Real-World Example for Underwriters: An underwriter receives a CPP application for a new restaurant. The IL DS 00 lists Commercial Property, General Liability, and Liquor Liability. The underwriter will verify the business description, confirm these are appropriate coverages, and then delve into the specifics of each coverage part's declarations and forms to assess the individual exposures (e.g., building construction for property, sales volume for liquor liability). The total premium on the IL DS 00 will also be checked against the expected premium for a risk of this nature and coverage combination.