Jane Dotson
The Insurance Services Office (ISO) is a research organization that provides statistical, reporting, policy writing, and other services to insurers. ISO forms are generally considered the industry standard and are used as benchmarks for analyzing and comparing policies. However, not all insurance policies use ISO forms, and non-ISO insurance forms may be referred to as equivalent forms or proprietary forms. These non-ISO forms may be modified versions of ISO forms or entirely custom-drafted policies. Determining whether a policy form is a pure ISO form or not can be challenging, and there are tests to help distinguish between the two.
| Characteristics | Values |
|---|---|
| What are non-ISO insurance forms called? | Non-ISO insurance forms are called "equivalent" forms or "coverage forms/parts". |
| How to distinguish between ISO and non-ISO forms | There are at least three tests to distinguish between ISO and non-ISO forms. |
| ISO form characteristics | ISO forms are standardized, pre-printed, and have been analyzed by courts, reducing risks for insurers. |
| Non-ISO form characteristics | Non-ISO forms may include additional provisions not in ISO forms, such as written contract requirements, professional liability exclusions, or waiver of subrogation. |
| ISO form usage | ISO forms are used as industry standards and benchmarks for insurers to avoid the costly and time-consuming task of creating new policy forms. |
| Non-ISO form usage | Non-ISO forms are used when custom drafting is required, such as for contractors' professional liability or pollution policies. |
| ISO definition | ISO, or Insurance Services Office, is a research organization that provides statistical, actuarial, and other services to insurers. |
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What You'll Learn
- Non-ISO insurance forms are called 'equivalent' forms
- They are developed by insurance advisory organisations
- Non-ISO forms are often custom-drafted with varying terms and conditions
- They are also used to avoid the costly and time-consuming task of creating new policy forms
- Non-ISO forms can be identified through three tests
Non-ISO insurance forms are called 'equivalent' forms
The Insurance Services Office (ISO) is a research organisation that provides statistical, actuarial, underwriting, and claims information and analytics, as well as policy language, to insurers, reinsurers, agents, brokers, and other participants in the property/casualty insurance marketplace. ISO forms are used as industry standards, serving as benchmarks for analysing and comparing policies developed by individual insurers.
However, not all insurance forms are ISO forms. Some insurers use modified versions of ISO forms, while others draft their own forms. These non-ISO insurance forms are often referred to as "equivalent forms" or "equivalent to ISO forms".
Determining whether a policy form is a pure ISO form or an equivalent form can be challenging, and even insurance agents can struggle to tell the difference. There are at least three tests that can be used to distinguish between ISO and non-ISO forms, although these tests are not perfect.
While ISO forms are standardised and widely used, non-ISO forms can offer more flexibility and allow insurers to customise their policies to meet specific needs. For example, contractors' professional liability and pollution policies are often custom-drafted with varying terms, conditions, and approaches to claims handling.
In conclusion, non-ISO insurance forms are often referred to as "equivalent forms" and offer insurers the ability to customise their policies beyond the standardised language and terms of ISO forms. While ISO forms have the advantage of being widely recognised and analysed by courts, non-ISO forms provide insurers with more flexibility to meet the specific needs of their customers.
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They are developed by insurance advisory organisations
Insurance policies are typically standardised, with boilerplate language that is similar across a wide range of insurance policies. The Insurance Services Office, Inc. (ISO), a subsidiary of Verisk Analytics, is a provider of statistical, actuarial, underwriting, and claims information and analytics, as well as policy language. ISO forms are used as industry standards and serve as benchmarks for comparing policies developed by individual insurers.
However, not all insurance forms are ISO forms. Some insurers use modified versions of ISO forms, while others draft their own non-ISO forms. Non-ISO forms are developed by insurance advisory organisations, such as the American Association of Insurance Services (AAIS), the Surety Association of America (SAA), and the National Council on Compensation Insurance, Inc. These organisations create standard policy forms that are used by insurers to offer coverage for specific risks.
The process of creating new policy forms can be costly and time-consuming for insurers. By using pre-printed ISO forms, insurers can save time and resources, as well as avoid some of the risks associated with policy writing. ISO forms have been analysed by courts, reducing the risk of misinterpretation. However, insurers may also choose to draft their own non-ISO forms to provide coverage for unique or specialised risks that are not adequately addressed by ISO forms.
Non-ISO forms may be developed by insurance advisory organisations in collaboration with insurers to meet specific needs or fill gaps in coverage. These forms can be customised to include additional provisions or exclusions that are not present in ISO forms. For example, a non-ISO form might include a written contract requirement, professional liability exclusion, or a waiver of subrogation. By using non-ISO forms, insurers can offer tailored coverage options to their customers, providing a more flexible approach to risk management.
In conclusion, while ISO forms are widely used and trusted in the insurance industry, non-ISO forms play a crucial role in addressing unique risks and providing specialised coverage options. Insurance advisory organisations develop these non-ISO forms, ensuring that insurers have the tools and resources necessary to meet the diverse and evolving needs of their customers.
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Non-ISO forms are often custom-drafted with varying terms and conditions
Non-ISO insurance forms are those that are not created by the Insurance Services Office (ISO). ISO is a research organisation that provides statistical, actuarial, underwriting, and claims information and analytics, as well as policy language, to insurers, reinsurers, agents, brokers, and other participants in the property/casualty insurance marketplace.
ISO forms are often used as industry standards, with many insurers using these pre-printed forms to avoid the costly and time-consuming task of creating their own. However, some insurers choose to draft their own versions of ISO forms or create entirely new forms. These non-ISO forms may include additional provisions not found in ISO forms, such as written contract requirements, professional liability exclusions, or waiver of subrogation.
Non-ISO forms are typically custom-drafted to meet specific needs and can vary significantly in their terms and conditions. For example, contractors' professional liability (CPL) and pollution policies are often custom-drafted with varying approaches to claims handling. This customisation allows insurers to tailor their policies to the unique needs of their customers.
While non-ISO forms offer more flexibility, they also carry certain risks. Policies drafted by insurers may be interpreted differently by courts than intended. ISO forms, on the other hand, have policy language that has already been analysed by courts, reducing potential ambiguities. Nonetheless, non-ISO forms are an essential tool for insurers to provide coverage for unique or specialised risks that may not be adequately addressed by standard ISO forms.
Determining whether a policy form is an ISO form or not can be challenging. While some insurers use unaltered ISO forms, others modify these forms or create their own. To distinguish between ISO and non-ISO forms, specific tests can be applied, though these are not always perfect. Ultimately, understanding the differences between ISO and non-ISO forms is crucial for agents and insured individuals alike.
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They are also used to avoid the costly and time-consuming task of creating new policy forms
The Insurance Services Office (ISO) is a research organisation that provides statistical, reporting, policy writing, and other services to insurers. It was formed in 1971 as an advisory and rating organisation for the property/casualty insurance industry. ISO forms are used as the industry standard and serve as benchmarks for analysing and comparing policies developed by individual insurers.
Creating new policy forms is a costly and time-consuming task. Insurers can avoid this by using pre-printed ISO forms, which also helps them to sidestep some of the risks associated with policy writing. Policies drafted by insurers may be interpreted differently by the courts than intended. On the other hand, ISO forms present fewer risks since the language has often already been analysed by the courts.
The Commercial Lines Manual, for example, is used by insurance underwriters, agents, and brokers. It explains how the various ISO forms are to be used and outlines when specific endorsements should be attached to a policy to add, remove, or modify coverage.
While most insurance policies have standard forms, some types of insurance, like media insurance, are written as manuscript policies. These are either custom-drafted from scratch or written using a mix of standard and non-standard forms.
It is important to note that distinguishing between ISO and non-ISO forms can be challenging for agents. While some insurers use unaltered ISO forms, others may use modified versions or draft their own.
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Non-ISO forms can be identified through three tests
Insurance Services Office, Inc. (ISO) is a provider of statistical, actuarial, underwriting, and claims information and analytics; compliance and fraud identification tools; policy language; information about specific locations; and technical services. It serves insurers, reinsurers, agents and brokers, insurance regulators, risk managers, and other participants in the property/casualty insurance marketplace.
Since its inception in 1971, ISO has been the national insurance industry standard setter for policy forms. Some insurers use ISO forms exactly as they are published, while others use forms that combine ISO wording with their own variations or create their own wording.
- The first test is the format of the policy form number. ISO uses a 10-digit numbering system for its coverage forms. The first two digits are letters that indicate the line of insurance. For example, "CG" stands for Commercial General Liability, "HO" for HomeOwners, "CA" for Commercial Auto, and "PP" for Private Passenger Auto. The next two digits indicate the broad type of form, with "00" representing a primary coverage form and "70" being reserved for insurer proprietary forms.
- The second test involves the final four digits of the coverage form, which represent the edition date of the form in the "MM YY" format. For instance, "13" in "CG 00 01 04 13" indicates the year 2013.
- The third test relates to the language used in the form. If the language in a non-ISO form is not identical to the corresponding ISO form, there is a reasonable chance that the form is not equivalent to the ISO version.
While these tests provide a good indication, it is important to note that they are not perfect, and there may be exceptions or variations that require further investigation.
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Frequently asked questions
Non-ISO insurance forms are simply called non-ISO forms. Insurance Services Office (ISO) is a research organization that provides statistical, reporting, policy writing, and other services to insurers.
There are at least three tests to determine if a policy form is an ISO form, something "equivalent" to an ISO form, or something else. ISO forms are generally used as industry standards and serve as benchmarks for analyzing and comparing policies.
Contractors' professional liability (CPL) and pollution policies are examples of non-ISO insurance forms. CPL policies are custom-drafted and self-regulated with varying terms, conditions, and approaches to claims handling.
