Q: Is commercial auto coverage Symbol 1, “Any Auto," designed to automatically extend coverage to any owned, non-owned or hired vehicle not specifically itemized at the onset? And does Symbol 1 cover vehicles that might not immediately be listed due to system glitches, human errors or other oversights?

Response 1: You should check each carrier's forms to see what the form states, but typically, Symbol 1 provides liability coverage for any auto: owned, rented, hired or borrowed. It even provides coverage for unknown liability situations that arise. Autos acquired during the policy period are automatically covered, whether reported or not. It may provide coverage extending beyond the policy period. All autos owned or leased at policy inception should be listed, but technically autos would be covered even if not listed. 

Regarding how the vehicle is being used, that depends on the auto policy. The ISO auto policy doesn't require the auto be used for business purposes; some other policies might. Also, state laws or insurance department regulations vary from state to state.

Response 2: BAP Symbol 1 does cover "any" auto. Of course, the coverage is subject to policy exclusions, such as the named insured not being able to use any auto to run over a competitor intentionally because of the intentional injury exclusion.

Because it is so broad, Symbol 1 is only used for the auto liability coverage, not for any other coverage under the BAP. You are right that Symbol 1 covers the mistakes of not listing all autos to be insured, as required by Symbol 7, or only covering specific types of vehicles, such as Symbol 3, 4, 5 or 6. Symbol 1 is the best liability symbol to get for your insured under the BAP and is therefore highly recommended. But because many carriers won't offer it, deeming it too broad for their liking, the insured may not be able to get Symbol 1 or may have to pay more premium. 

Response 3: Symbol 1 means any auto regardless of the named insured's relationship to the auto. An issue can arise if the insured has violated the concealment, misrepresentation or fraud condition in the policy—for example, an insured reports 50 autos at inception but actually has 100. Whether an insurer would consider an oversight to be a violation of that condition would likely depend upon the extent of the oversight.

Given that there is no broader symbol than Symbol 1, there isn't much more to be done to protect the insured other than to stress the importance of accurately reporting information at the time of application or submission of renewal information. 

Response 4: You must list all vehicles if they are owned or licensed in your state. I sense that your client may be attempting to skirt the rules to avoid the premium expense. Should there be an accident and the carrier discovers it was owned and not insured properly, it may open an investigation of fraud against the policyholder—and you, the agent, for facilitating the action.

Response 5: See a previous response from Big “I" Virtual University faculty on Symbol 1 and potential system glitches, human errors or other oversights. 

An additional issue is electronic reporting to the state department of motor vehicles. The insurance company can only report coverage on a vehicle VIN that they know about if it is scheduled on the policy. If your insured has a vehicle that does not match up to an insurance policy in this reporting process, they can be fined, experience registration or license renewal issues, and encounter problems with authorities if the vehicle is pulled over or inspected. 

Response 6: This has been a highly contested issue for many years. While it is clear an acquired auto is automatically covered during the policy term, I am of the opinion that Symbol 1 provides coverage if an auto has been left off the policy, even if it was acquired prior to the renewal of the auto policy. This has happened a few times in my 40 years as an agent, and every time the carrier paid the claim.

Carriers have the right to audit the policy, which should identify every owned auto, although often they do not. I think a problem could arise if the insured leaves off an auto when audited or when asked to provide the carrier with an auto schedule when a new policy is issued or upon renewal. In that case, if the insured failed to list an owned auto, I believe it would be up to the carrier to prove it was left off intentionally, and thus was misrepresentation leading to a legitimate denial of a claim. 

This question was originally submitted by an agent through the Big “I" Virtual University's (VU) Ask an Expert service, with responses curated from multiple VU faculty members. Answers to other coverage questions are available on the VU website. If you need help accessing the website, request login information.

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