Category Archives: ADCF Policy

The Liability Insurer’s “Hidden” Duty to Defend– the Obligation to Pay for its Insured’s Affirmative Claims.

Posted on March 9, 2016 by Gregory Johnson

By Greg Johnson. The typical liability insurance policy requires the insurer to “defend” the insured (i.e., dealership) if it is sued by a third-party on a claim covered by the policy. Often, the “defense” feature of a liability policy is … Continue reading →

Posted in ADCF Policy, Auto Dealer, CGL, Coverage, Duty to Defend | Tagged | Leave a comment

Auto Coverage: Are Household (Family Member) Step-Down Exclusions Void Under Minnesota Law?

Posted on February 29, 2016 by Gregory Johnson

By Greg Johnson. A 2014 decision of the South Carolina Supreme Court decision invalidating a household (a/k/a “family” or “intra-family”) “step-down” (a/k/a “drop-down”) to a personal auto policy caused me to dust off my research from over a decade ago … Continue reading →

Posted in ADCF Policy, BAP, Coverage, PAP | Tagged , , , , , , | Leave a comment

Why do Auto Dealers Purchase Limited Truth in Lending Coverage?

Posted on December 9, 2015 by Gregory Johnson

By Greg Johnson. Why do dealerships keep purchasing statutory errors and omissions coverage that is not likely to protect the dealership if it is sued by a customer for truth in lending violations? I’ve been handling dealership insurance coverage disputes … Continue reading →

Posted in ADCF Policy, Auto Dealer, Truth in Lending Act, Truth in Lending Coverage | Tagged , , , , | Leave a comment

Protecting the Dealership’s “Front-End” and “Back-End”: What Does that Mean?

Posted on November 5, 2015 by Gregory Johnson

By Greg Johnson. Everyone in the retail automobile industry is familiar with the terms “front-end” and “back-end.” They represent two sources of potential revenue (and, hopefully, profit) for auto dealerships: The “front-end” refers to revenue realized on the sale of … Continue reading →

Posted in ADCF Policy, Auto Dealer, Coverage, Duty to Defend, Duty to Indemnify, Truth in Lending Coverage | Tagged , , , , , , , | Leave a comment

Auto Dealer Risk Management: Negotiating Dealer-Lender Agreement Terms

Posted on April 23, 2015 by Gregory Johnson

By Greg Johnson. Car sales are booming and lenders are clamoring for indirect financing business.  Now is a great time for dealers to dust off and review their Dealer Agreement (a/k/a lender master financing agreements) with lenders, particularly the warranty, … Continue reading →

Posted in ADCF Policy, Auto Dealer, Indirect Financing, Regulatory Compliance | Tagged , , , , , | Leave a comment

Hey Dealer, Can I Get a Loaner?

Posted on March 8, 2015 by Gregory Johnson

By Greg Johnson. I recently wrote an article for the Minnesota Automobile Dealer Association’s MN Dealer Outlook Magazine (Winter 2015).  If your Minnesota dealership provides dealer-owned loaner vehicles to customers while the customer’s vehicle is being repaired, you’ll want to … Continue reading →

Posted in ADCF Policy, Auto Dealer, Coverage, Rentals | Tagged , , , , , | Leave a comment

Speaking at Automotive Dealer Subprime Sales Success Workshop on April 7-8th in Atlanta, Georgia.

Posted on March 7, 2015 by Gregory Johnson

I will be a speaker at the Automotive Dealer Subprime Sales Success workshop on April 7-8th in Atlanta, Georgia. I will be speaking on two related topics.  First, about F&I compliance and class action litigation issues (spot delivery, acquisition fees, … Continue reading →

Posted in ADCF Policy, Auto Dealer, Coverage, Indirect Financing, Regulatory Compliance, Truth in Lending Act, Truth in Lending Coverage | Tagged , , , , , , , , | Leave a comment

The Auto Dealer’s Coverage Form (ADCF) Policy: No Coverage for Violations of Prior Damage Disclosure Statutes.

Posted on October 20, 2014 by Gregory Johnson

In 2013, Insurance Services Office (ISO) rolled out its new Auto Dealers Coverage Form (ADCF) Policy. The ADCF Policy replaces the Garage Liability (GL) Policy which had been available for decades. One of the most major differences between the GL … Continue reading →

Posted in ADCF Policy, Auto Dealer, CGL, Coverage, Errors & Omissions | Tagged , , , , | Leave a comment

Sonic Dealerships Lose Class Action Insurance Coverage Dispute with Chrysler Insurance: Statutory Errors or Omissions Coverage did not apply to Dealers’ Failure to Disclose Price of Etch in Retail Installment Sales Contracts.

Posted on October 8, 2014 by Gregory Johnson

By Greg Johnson. I recently posted an article providing a general overview of the insuring clause to the “Acts, Errors or Omissions” of the new Auto Dealers Coverage Form (“ADCF”) Policy.  (See the article here).  This optional coverage is primarily … Continue reading →

Posted in ADCF Policy, Auto Dealer, Consumer Leasing Act | Tagged , , , , | Leave a comment

The Auto Dealer Liability Policy: Analyzing Coverage for Statutory Acts, Errors or Omissions Claims (TILA, CLA, FCRA, ECOA, FTC, GLB, CFA & UDTPA)

Posted on October 7, 2014 by Gregory Johnson

By Greg Johnson. In previous posts, I’ve discussed the new Auto Dealers Coverage Form (“ADCF”) policy which ISO developed to replace the Garage Liability Policy in late 2013. Prior blog articles include: The Comprehensive Guide to the 2013 Auto Dealer’s … Continue reading →

Posted in ADCF Policy, Auto Dealer, Consumer Leasing Act, Errors & Omissions, Truth in Lending Coverage | Tagged , , | Leave a comment