California Commercial Auto Rate Filing Memorandum

By: Jason Fletcher, Topa Insurance Company
Posted on: September 25, 2019

Dear Valued Business Partner,

Our proposed effective dates for the Commercial Auto Product Revision are October 1, 2019 for new business and November 9, 2019 for renewals. Changes to the Commercial Auto Program with this filing include the following:

  • The following forms have been changed from Stated Amount Insurance to Cost New Insurance on Physical Damage Coverage:
    • Commercial Automobile Liability and Physical Damage Policy
    • Commercial Auto Declarations
    • Schedule of Covered Autos
    • Commercial Auto Towing Storage
  • Physical Damage Coverages are now based on Cost New and claims will be handled based on an Actual Cash Value basis.
  • Collision, Comprehensive & Specified Perils coverages have been updated to replace Stated Amount rules and factors with ISO’s Original Cost New rules.
  • Business Entity discount for all Corporations and a Personal Use factor for private passenger type vehicles have been introduced.
  • Occupation rules have been introduced in GWIN and new rating factors have been added.
  • New Venture Surcharge rating rules and factors have been expanded to four years in business and tapers off by 10% each year.
  • Preferred Trucking, Extra Heavy and Personal Use classes have been removed. Heavy, Commercial and Service remain.
  • Liability, Collision, Comprehensive and Specified Perils base rates have been modified.
  • Underwriting Guidelines have been structurally reformatted.

Updated underwriting guidelines containing these changes will be distributed to our General Agents.

Please be advised that we will continue the moratorium for Towing, Sand & Gravel and Building Material haulers until further notice.

As has been communicated in the past, we are counting on you to uphold our underwriting standards and practices. Our reliance on your diligent underwriting judgment has never been greater. Please review each account with a heightened attention to detail and adherence to our underwriting guidelines. Our underwriting staff are available for any questions you may have.


Jason Fletcher
Commercial Auto Underwriting Manager
(818) 466-5932

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