1. Forms
2. MM
3. MM-99-18

What the form is

The MM 99 18 Split Liability Limits - Massachusetts endorsement is designed to alter the way liability limits are applied under a commercial automobile insurance policy in Massachusetts. Instead of a single limit that applies to any one accident (Combined Single Limit - CSL), this endorsement specifies separate, distinct limits for:

• Bodily Injury Liability per person
• Bodily Injury Liability per accident (for all persons injured)
• Property Damage Liability per accident

This endorsement modifies the standard provisions of coverage forms like the Business Auto Coverage Form (CA 00 01) or the Auto Dealers Coverage Form (CA 00 25) to implement these split limits.

Classes of business it applies to

This endorsement is applicable to any commercial insured in Massachusetts that has a Business Auto Policy or Auto Dealers Coverage Form and elects or is required to have split liability limits. This can include a wide range of businesses, such as:

• Contractors (plumbers, electricians, builders)
• Delivery services
• Retail businesses with delivery vehicles
• Service businesses whose employees drive for work purposes
• Auto dealerships

For example, a local bakery in Springfield, MA, that uses a van for deliveries might have this endorsement on their commercial auto policy, stipulating specific limits like $100,000 for bodily injury per person, $300,000 for total bodily injury per accident, and $50,000 for property damage per accident.

Special considerations

The primary consideration is that this form is specific to Massachusetts and reflects how auto liability can be structured in that state. When this endorsement is used, it's crucial to understand that the limits shown are the maximum the insurer will pay for each respective category, regardless of the total damages. If an accident results in high damages in one category (e.g., property damage) but lower in another (e.g., bodily injury), the unused portion of one limit cannot typically be applied to cover the excess in another. This differs from a Combined Single Limit (CSL) policy, where one aggregate limit applies to both bodily injury and property damage arising from a single accident.

Key information for agents and underwriters

For Agents:

• It is essential to clearly explain the concept of split liability limits versus a Combined Single Limit (CSL) to clients, ensuring they understand how coverage responds under each structure.
• Advise clients on selecting appropriate limits for each category based on their risk exposure and financial capacity.
• Ensure this endorsement is correctly added to the policy when split limits are requested or required in Massachusetts.

For Underwriters:

• Verify that the requested split limits meet any Massachusetts statutory requirements or company-specific underwriting guidelines.
• Assess the adequacy of the chosen limits in relation to the insured's operations, vehicle types, and driving exposures.
• Pricing will be based on the specific limits selected for each of the three categories.
• This endorsement must be used in conjunction with the applicable base coverage form (e.g., CA 00 01) and other Massachusetts-specific endorsements, such as the MA Mandatory Endorsement (e.g., MM 99 11).