Additional insureds and the moral hazard.
Publication Date: January 21, 2006
Advisen -- Insurance Market
Source: Risk Management
"Recent court decisions broadly construing the 1993 Insurance Services Office (ISO) Additional Insured Endorsement--which extends coverage to an additional insured in situations where he or she was solely negligent--have prompted ISO to revise this endorsement to require at least partial fault on the part of the named insured. But how much has this revision really helped to control moral hazard? In the case of the construction industry, where moral hazard has contributed to an unusually high incidence of worker injuries, amending anti-indemnification statutes to close the additional insured loophole is the only viable way to control moral hazard..."
Advisen -- Insurance Market
Source: Risk Management
"Recent court decisions broadly construing the 1993 Insurance Services Office (ISO) Additional Insured Endorsement--which extends coverage to an additional insured in situations where he or she was solely negligent--have prompted ISO to revise this endorsement to require at least partial fault on the part of the named insured. But how much has this revision really helped to control moral hazard? In the case of the construction industry, where moral hazard has contributed to an unusually high incidence of worker injuries, amending anti-indemnification statutes to close the additional insured loophole is the only viable way to control moral hazard..."
posted by AVRECO at 8:53 AM
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