(Ins. C. 112.) "Form G" burglary policy issued by Lloyds, London, has been submitted. The questions raised are under two heads:
(1) rate and co-insurance;(2) extension of coverage to premises" instead of "within the residence" as appearing in forms of admitted insurers, and to personal effects in hotels.(a) As to question (1), rate and co-insurance: Until admitted insurers recognize the apparent reasonableness of a substantial reduction in rate per unit of coverage upon application of the 100% co-insurance clause, it is hereby ruled that refusal of a majority of admitted insurers to accept upon the basis of 100% co-insurance, with reasonable rate allowance therefor, may be considered a refusal to write, and permits the surplus line broker to place coverage with a nonadmitted insurer.(b) As to question (2) extension of coverage to "premises" instead of "within the residence," it is ruled that the insured is entitled to procure coverage on property located on the "premises" and if such coverage is not procurable from a majority of admitted insurers, an offering upon the basis of inclusion of such coverage win be considered sufficient to comply with the submission rules. As to coverage in hotels or away from the premises, this ruling will not apply; inasmuch as a majority of admitted insurers are writing tourist floater or traveller's policies.Cal. Code Regs. Tit. 10, § 2161