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Property & Casualty Insurance/CA2027 Registration Plates Not Issued For A Specific Auto

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Question
Good morning Jay, I have a question in regards to the above form.
I have an auto repair shop in Illinois that as repairer plates or transporter plates. When they move vehicles from their location to be serviced by others or other reasons they place the repairer plate on the vehicle.
I have always been under the impression that the plate was providing primary coverage and a premium charge for CA 2027.
The Other Insurance Provision of form CA0001 10 13 a. For any covered "auto" you own, this Coverage Form provides primary insurance. For any covered "auto" you don't own, the insurance provided by this Coverage Form is excess over any other collectible insurance.
The repairer plates are being attached to an auto they do not own. Form CA2027 B. Any "Auto" while used with plates described in the Schedule is a covered "auto".
It seems to me that coverage is on an excess basis.
Do you agree:
Are you aware of a form when attached to the Commercial Auto Coverage part provides coverage on a primary basis for liability BI/PD, Med, PIP, UM/UIM when using a repairer or transporter plate?
Appreciate your expert opinion on this.

Answer
Hi Shirley,

I apologize for the delay.  I've been tied up for the last two days and didn't get a chance to review the forms.  I always try to do that just to make sure I don't miss anything.  

So here's what you need to remember: most auto policies (personal and commercial) cover permissive use of an insured vehicle.  However, they also contain a caveat: unless the permissive user is in the business of selling, servicing, or repairing autos.  So...in your case, the customer's auto policy would not respond to cover the repair shop while it's being operated by your insured.  Therefore, the Other Insurance Provision does not apply since there is no other coverage due to the exclusion.  Remember, there has to be other coverage that applies in order for the Other Insurance Provision to apply.  That makes your insured's policy primary.  

The CA 20 27 and the CA 00 01 would work in tandem to give your insured the coverage he needs when transporting a customer's vehicle.

I hope that helps a little.  Let me know if you have additional questions.  

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Jay K. Williams, AAI, AIP, CIC, CRM

Expertise

I can answer questions relating to the following coverages: personal auto; homeowners; commercial auto; commercial liability; commercial property; business income and all other property and casualty coverages.

Experience

I have been in the insurance industry in Florida since 1979. I am currently the president of a Florida domestic insurance company subsidiary. I've taught continuing education classes in Florida and across the country. I am quite familiar with all coverages including Florida Condominium master policies and unit owner policies. I also specialize in agent professional liability. I have been a professional educator since 2001.

Organizations
I am a member of the Florida Associaion of Insurance Agents, the state affiliate of the Independent Insurance Agents and Brokers of America.

Education/Credentials
I currently carry the following professional designations: Accredited Advisor in Insurance (AAI) Associate in Insurance Production (AIP) Certified Insurance Counselor (CIC) Certified Risk Manager (CRM)

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