ISO Personal Auto Policy Endorsements

ISO PERSONAL MOTORCYCLE POLICY AVAILABLE ENDORSEMENTS AND THEIR USES

(November 2024)

Protection under the base (unendorsed) Personal Motorcycle Policy (PMP) is designed for the “typical” personal motorcycle exposure. This approach achieves several goals. A base policy can be used to handle many customers, create uniformity of coverage, and help to control the cost of coverage for the greatest number of consumers. How are costs controlled? By making additional or broader coverages optional, those insureds whose needs are met by a base policy don’t have to subsidize those who need or desire special coverage.

ISO has a variety of endorsements. Most of these optional forms are designed for consumers whose coverage needs are not met by the basic PMP contract; the forms typically require additional premium. ISO uses a common system to number its forms: two letters followed by a four-digit form number, then the form’s edition month and year.

Note: The various endorsements are presented in order of Insurance Services Office’s form numbers.

MT 02 01–Suspension of Insurance

This form allows an insured to suspend protection under their PMP for any (or all) vehicles that are listed on the policy (or policy declarations) or described on this form as covered vehicles. Suspension may be in toto or specific coverages may be selected. This is often used with vehicles that are used seasonally.

MT 02 02–Reinstatement of Insurance

This form reverses the action initiated by form MT 02 01, restoring coverage that had been suspended policy. The restoration is effective per the date stated on the form.

MT 03 01–Federal Employees Using Motorcycles in Government Business

This form allows an insured who is a federal employee to be covered under a PMP, with the important exception of when an auto is used on behalf of his or her government employer or during activities related directly with his or her duties.

MT 03 02–Coverage for Damage to Your Motorcycle (Maximum Limit of Liability)

Endorsement MT 03 02 amends Part D of a Personal Motorcycle Policy in order to provide coverage to a described vehicle on a stated amount basis. The company's maximum payment obligation for a given loss is the least of the stated amount shown, actual cash value or the repair or replacement cost; subject to the applicable deductible.

Only one deductible applies should a given loss involve more than one covered motorcycle.

MT 03 03–Single Liability Limit

Endorsement MT 03 03 is available to convert the split limits liability coverage of a Personal Motorcycle Policy to a combined single limit basis.

MT 03 04–Underinsured Motorists

This form adds protection for accidental loss caused by a driver who carries insufficient protection.

MT 03 05–Increased Limits Rider Safety Apparel Coverage

This form replaces the Personal Motorcycle Policy’s Coverage D section, Additional Coverage, Rider Safety Apparel. The result is to increase the available coverage for property such as motorcycle helmets, protective coverings, eyewear, etc. from the $1,000 provided under the policy to the limit that appears on the endorsement.

A separate, increased amount applies according to the selected amount and described vehicle.

Note: This approach may be unfair to an insured. While owning more than one motorcycle is one thing, requiring separate apparel protection per each vehicle stretches logic as the same set of protective apparel is likely to be used with more than one motorcycle.

MT 03 06–Additional Insured–Lessor

This endorsement allows you to add the insurable interest for a lessor onto a PMP that is insuring a leased motorcycle. Coverage may be added on either a single or split liability limit basis and actual cash value minus the deductible for Collision and Other Than Collision losses.

MT 03 07–Limited Mexico Coverage

This form extends all Liability, Medical Payments, Uninsured Motorists, Damage to Your Motorcycle, and any no-fault coverage, to accidents occurring in Mexico. The coverage, which is excess over valid Mexican primary insurance, only applies for incidents that occur within 25 miles of the United States border, while the covered person is on a trip of 10 days or less.

MT 03 08–Recreational Vehicle Endorsement

This endorsement is used to provide PMP coverage for ATVs, dirt bikes, dune buggies, golf carts, mopeds, motor scooters, motorbikes or go-karts. Coverage only applies to such vehicles scheduled on the declarations. Several definitions are modified within the forms so that coverage can apply appropriately.

The form includes protection for rider safety apparel and adds the option of using a passenger hazard exclusion.

MT 03 09–Liability Coverage Exclusion Endorsement

Use of this endorsement amends the PMP to exclude coverage for bodily injury suffered by a named insured or any family member when injured by an insured.

MT 03 10–Loan/Lease Coverage

Endorsement MT 03 10 is a coverage that should be discussed with all insureds who finance or lease a motorcycle. Because of the rapid manner in which vehicle values deteriorate, such value may fall below the amount remaining on a loan. Thus, in a total loss, the insured may receive an actual cash value payment that is less than the loan amount. This gap can be covered by endorsement MT 03 10. The coverage will not pay any excessive use payments for leased vehicles, or costs for warranties and other loan add-ons, or any late fees or overdue lease or loan payments.

MT 03 11–Passenger Hazard Exclusion Endorsement

Endorsement MT 03 11 is available under the Personal Motorcycle Policy to exclude bodily injury protection for passengers on the vehicle described on the form.

MT 03 12–Agreed Value Endorsement

Endorsement MT 03 12 is available under the Personal Motorcycle Policy to provide collision and other than collsion coverage on a basis that includes a maximum value per a described covered motorcycle. This option tends to be used on vehicles that, due to certain characteristics, appreciate in value, so regular rating rules are inadequate. Losses are adjusted according to the lesser of the payment of the listed value or the cost to repair or replace the covered vehicle using property of similar kind and quality.

MT 03 13–Snowmobile Endorsement

Endorsement MT 03 13 is available under the Personal Motorcycle Policy to schedule coverage for snowmobiles, and it includes an option to exclude the Passenger Hazard.

Related Article: Snowmobile Policy Coverage Form Analysis – While the analysis consists of discussing an ISO Personal Auto Policy modified to provide snowmobile coverage, the application of coverage is very similar to modification of PMP to accomplish the same objective.

Note: The biggest differences are the lack of reference to a passenger hazard exclusion and additional coverage, rider safety apparel.

MT 03 14–Trip Interruption Coverage

This form provides coverage for certain additional expenses an insured has to pay because of the breakdown and, subsequent, loss of use of a covered motorcycle. Coverage is capped at $600 per covered incident and the covered vehicle must be unavailable for more than 24 hours. Further, the loss has to take place at least 100 miles away from the insured's home. Covered expenses include the cost of hotels/motels and meals.

MT 03 15–Increased Limits Custom Equipment Coverage

This form allows up to three vehicles to be specifically described in order to receive the benefit of coverage for equipment that adds value to a covered motorcycle but which does not qualify for coverage under an unendorsed PMP. The form amends a PMP, replacing policy language that allows the application of a custom equipment limit that appears on the form.

MT 03 16–Transportation Expenses Coverage

This form allows an increase in the amount of coverage for transportation expenses. Coverage may be triggered by a collision or other than collision loss to an owned vehicle. This endorsement increases the daily and maximum limit available under Coverage Part D, Damage to Your Motorcycle, Transportation Expenses. Instead of merely raising the limit to a specified higher amount, the form allows an insured to select their preferred limits for covering the expense of a covered motorcycle that is unavailable for regular use.

MT 03 17–Electronic Equipment Coverage

This form allows additional coverage for electronic equipment that is normally unprotected when it is a part of a motorcycle covered under a PMP. The endorsement includes space for describing up to three covered motorcycles along with space for entering liability and premium information on the preferred amount of electronic equipment protection. No deductible applies to this option and it covers electronic items such as radios, CD systems, phones, navigation and other items that are permanently attached to a covered motorcycle. It also contains an option of selecting limited protection for media that is used with electronic equipment. Protection for the latter is capped at $200 per applicable vehicle.

MT 03 18–Coverage for Motorcycles Used in Business

With the exception of activities that are voluntary or charitable, an unendorsed PMP bars coverage for any business use of a covered motorcycle. The MT 03 18 amends the PMP to allow liability coverage for the business that is described in the endorsement’s schedule. When used, it extends the applicable PMP’s liability, medical payments, collision and other than collision protection if a loss occurs during the permitted business use of a covered motorcycle.

Note: The form preserves the PMP’s business use exception granted for farming and ranching.

MT 03 19–Towing and Labor Costs Coverage

This endorsement pays up to the amount shown in its schedule or in the policy declarations for towing and labor costs when a covered motorcycle is disabled. Covered labor costs just include those incurred at the point of disablement. In other words, no coverage is provided for work performed at a garage or any other location.

MT 03 20–Coverage for Damage to Your Motorcycle Exclusion Endorsement

This form specifically eliminates coverage for any claims indicating that a covered loss reduced a covered motorcycle’s market or resale value.

Note: Although this article focuses on an option provided under the ISO Personal Auto Policy, it still provides relevant information concerning diminished value.

MT 03 21–Trust Endorsement

This form applies in situations where a trust owns a vehicle. It includes a schedule for listing the applicable trust and its trustees and it alters the PMP so that the named trust is given status as a covered person. It also changes the notification provision so that a notice of either a policy cancellation or non-renewal is sent to the trustee.

MT 03 22–Loss Payable Clause

This form is used to attach any vehicle financial interests for the covered motorcycles to the policy.

MT 03 61–Mexican Collision Coverage

This form extends the base PMP form’s collision protection while a covered motorcycle is operated in Mexico. Of course, collision coverage must be written on the PMP to apply. However, any reimbursement for repairs are based on such being performed in the U.S. When a cycle must be repaired in Mexico because an accident has rendered it undriveable, the reimbursement provided will be based on the cycle’s U.S. ACV value and NOT upon costs in Mexico.

MT 04 01–Single Uninsured Motorists Limits

This form allows an insured to convert the limits of insurance that is provided for uninsured motorists coverage from the (default) split limit of liability to a single limit basis.

MT 04 02–Single Underinsured Motorists Limits

This form allows an insured to convert the limits of insurance that is provided for underinsured motorists coverage from the (default) split limit of liability to a single limit basis.

MT 05 09–Named Individuals – Broadened Personal Injury Protection Coverage

This form allows individuals to be added to the PMP as a named insured, qualifying for PIP coverage when such persons appear in the form’s schedule. The given state where PIP is provided along with a mandated premium must also be entered on the schedule for coverage to apply.