Unit 12 - Inland Marine Insurance

The commercial inland marine coverage part requires the following forms:

-Commercial Inland Marine declarations form -Commercial inland marine conditions form -One or more of the 12 filed coverage forms we listed earlier

Nationwide Definition (expanded)

-Imports and Exports are covered by ocean Marine Insurance -Personal Property Floater Risks are covered by personal inland marine insurance The three remaining categories represent risk eligible for commercial inland marine insurance: -domestic shipments -Instrumentalities of transportation or communication -Commercial property floater risks

Dealers Policy subcategory of commercial property floater risks include:

-Jewelers block coverage form -Floor plan coverage form -Equipment Dealers coverage form -Camera and Musical Instrument Dealers Coverage Form

Filed (controlled) classes of inland marine insurance can be written under the commercial inland marine coverage part of the Commercial package policy. They include these coverage forms:

-Mail -Physicians and Surgeons Equipment -Theatrical Property -Film -Commercial Articles -Accounts Receivables -Valuable Papers and Records -Signs -Jewelers Block -Floor Plan -Equipment Dealers -Camera and Musical Instruments

Filed coverage forms provide: Nonfiled forms may be written on:

-Open-peril coverage that is typical of inland marine coverages -a named-peril or open-peril basis.

Jewelers block coverage form contains two optional coverages:

-Show windows coverage -Money coverage

There are three business floaters that fall within the commercial property floater risk category of the nationwide definition.

-accounts receivable coverage form -Valuable papers and records coverage form -Signs coverage form

Domestic Shipments

Are covered through a variety of inland marine Transportation forms that cover property being transported.

The remaining filed forms all fall within the final category of the nationwide definition:

Commercial property floater risks

Motor Truck Cargo Policy

Covers cargo while it is being transportation in a truck. It protects the carrier, instead of the shipper, for liability for loss to domestic shipments in transit.

Physicians and Surgeons Equipment coverage form

Covers medical and dental instruments on and off the premises, as well as furniture and fixtures at the office and the insured's interest in improvement and betterments. Medical and Dental Equipment of others used by the insured is also covered at the insured's option. Radium is not covered. Form provides open peril coverage.

Theatrical Property Coverage Form

Covers scenery, props, and costumes used by a theater group in a specific production identified I the declarations.

Floor Plan coverage form

Covers stock that is subject to a floor plan arrangement, in which a dealer borrows money from a lender with which to pay for merchandise.

Contractors Equipment Floater

Covers the heavy machinery, equipment, and tools a customers needs to conduct business.

Camera and Musical Instrument Dealers Coverage form

Covers the insured's stock in trade as well as customer property in the insured's care, custody, or control, such as an instrument or camera that is being replaced, cleaned, or adjusted.

Commercial Articles Coverage Form

Covers the interest of the owner of commercial cameras, musical instruments, and related equipment and similar property of others that is in the insured's care, custody, or control. The form provides open-peril coverage, with essentially the same exclusions as in other commercial inland marine forms.

Money coverage

Covers theft of money from locked safes or vaults on the insured's premises.

Show windows coverage

Covers theft of stock from a show window when the window is cut or smashed.

Jewelers Block coverage form

Covers: -the insured's stock in trade, which includes jewelry, precious and semiprecious stone, precious metals and alloys, and other stock used in the business. -property that is sold but not delivered -similar property of others who are not in the jewelry trade in the insured's care, custody, or control -similar property of others in the jewelry trade in the insured's care, custody, or control, but only to the extent of the insured's legal liability for the property or the amount of money actually advanced by the insured.

Commercial Property Floater Risks

Embrace a number of subcategories of inland marine forms, including bailee's customer forms, business floaters, and dealers policies.

Inland Marine Insurance

First developed as an extension of ocean marine insurance to provide coverage for cargo that travels over land instead of by sea. From there, however, inland marine insurance branched out to provide very broad coverage on a wide variety of portable property in addition to the coverage it continues to provide for cargo in transit.

Instrumentalities of Transportation or Communication

Include forms that cover property related to transportation or communication, such as bridges, pipelines, and television towers.

Signs coverage form

Insures the businesses against loss to neon, fluorescent, automatic, or mechanical electric signs and lights. The form covers the insured's signs and similar property of others in the insured's care, custody or control.

Equipment Dealers coverage form

Is used to cover dealers of mobile equipment and construction equipment. It covers the dealer's stock in trade, consisting primarily of mobile agricultural equipment and construction equipment. It also covers property of others in the dealer's care, custody, or control.

Trip Transit Policy

It is used to insure single shipments of goods for companies that have only occasional shipments to insure.

Are there any filed forms that fall under the instrumentalities of transportation an communication category of the nationwide definition?

No

Nonfiled Forms

Non-standardized forms for other inland marine coverages not specifically listed are known as nonfiled classes or nonfiled forms.

Other insurance

Pro rata basis ..... unless the other coverage is not written on the same basis, then the commercial inland marine coverage is paid on an excess basis

Mail Coverage (ctnd)

Property is covered until it is delivered to the address shown on the package or returned to the sender in the event of nondelivery. In the event of loss, the value of covered property is its actual value, but not less than its market value, on the date of mailing. Coverage is always written on a reporting basis, with reports required within 30 days after the end of each reporting day.

Annual Transit Policy

Protects the shipper or receiver of goods against loss to goods in transit.

Motor Truck Cargo - Shipper's Policy

Provides direct damage coverage for a company's goods while transported on the company's trucks.

Mail Coverage Form (falls into the domestic shipment category)

Provides open-peril coverage against loss to property in transit by registered mail, first class mail, certified mail, or express mail. Covered: bonds, stock certificates, certificates of deposit and other securities, stamps, money orders, checks, and other documents and papers of value. Not covered: food stamps, unsold travelers checks, and money When sent by registered mail, covered property also includes bullion, platinum and other precious metals, jewelry, watches, precious and semiprecious stones, unsold travelers checks, food stamps, and money.

Film Coverage Form

Provides open-peril coverage for exposed motion picture film, soundtracks, video tapes, and magnetic tapes that are used in the production scheduled in the declarations and that insured owns or has in his custody or control. It does not include cut-outs, unused footage, positive prints or films, or library stock.

Reinstatement of Limit after loss Condition

Provides that the limit of insurance will not be reduced by payment of any claim, except for a total loss of a scheduled item. When this occurs, the insurer will refund the unearned premium on that item. Losses are valued on an actual cash-value basis or the cost to restore or replace the property, whichever is less (property value determined at the time of loss).

Accounts Receivable Coverage Form

Reimburses the insured for amounts that can't be collected from customers because of damage to the company's accounts receivable records. It also covers extra collection expenses and interest on any loans the insured must obtain to stay in business while collections are impaired.

Valuable Papers and Records coverage form

Reimburses the insured for the cost of replacing damaged items, such as manuscripts, films, maps, drawings, deeds, and books that belong to the insured or are in the insured's care, custody, or control. Money and securities are not covered.

Marine Insurance (Nationwide Definition)

The definition lists six categories of eligible marine (ocean and inland) risks: -Imports -Exports -Domestic Shipments -Instrumentalities of transportation or communication -Personal property floater risks -Commercial property floater risks

Nonfiled forms (2)

Those that cannot be included in the commercial package policy.

As a general rule, inland marine insurance does not cover:

stationary property, such as real estate, furniture, fixtures, or merchandise while it is being manufactured.

The Accounts Receivable coverage form covers loss of records when removed from the premises to protect them from imminent loss. This is only done if...

the insured gives written notice of the removal within 10 days.