General Information
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A named driver exclusion (NDE) is an endorsement that is used to exclude a driver from coverage under a policy. The exclusion specifies that the driver named is not covered under the policy.
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All Regions: Two NDE forms are sent by underwriting to the customer to obtain signature agreement. One copy is to be signed and returned to underwriting. (The original signed copy should be obtained whenever possible. If the original is unavailable, a faxed copy is acceptable.) The other copy may be kept by the customer.
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If one of the drivers on the application is to be excluded, the system will automatically send the UE119 or related form based on the application state.
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Excluded driver driving history should be added to the sales and service applications.
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If the excluded driver is a spouse or child key driver's license number into the sales and service applications. If the excluded driver is another resident of the household driver's license # is not needed.
Remember to instruct the policyholder to complete and sign the Named Driver Exclusion form and return it immediately. Failure to return the signed form can result in a premium increase or policy cancellation.
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In states that do not have Named Driver Exclusions, the excluded driver option will not be available on the Driver View.
The selection of Excluded Driver status will also be unavailable for Oregon because it needs special handling for Named Driver Exclusions. This state will continue to be manually processed because there are extra selections needed on the UE119 form.
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For GC, we should exclude, where permitted, all drivers in the household who are not listed on the policy or insured elsewhere. Spouses can be excluded as long as they are not the registered owner or co-registered owner of the vehicle and it is allowed by the state. It is also recommended, that any residents of the household that are of driving age and are unlicensed be excluded.
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For GM, Named Driver Exclusion must be received prior to handling, only with Supervisor approval.
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If the driver to be excluded has any usage of a vehicle located in a state where the NDE is available, either deny the NDE (if requested voluntarily for rating purposes) or take adverse action (if the driving record is the issue). If the driver has no usage whatsoever of the vehicle in the state where the NDE is available, apply the NDE where available and continue the other policy.
Region I does not accept NDEs at New Business unless it is approved by a Sales/Underwriting Manager or Underwriting Supervisor.
Region II does not accept NDEs at New Business unless it is approved by the RVP or AVP.
