commercial inland marine insurance

  1. Nationwide marine Definition
    • wet insurance and dry insurance - uses in specifying risks
    • National Association of Insurance Commissioners adopted 6 classes
    • 1. Imports
    • 2. Exports
    • 3. Domestic Shipments
    • 4. Instrumentalities of Transportation or Communication
    • 5. Personal Property Floater Risks
    • 6. Commercial Property Floater Risks
  2. Inland Marine Policies
    • insure porperty that is only covered on land
    • portect against losses to property that is mobile in nature
    • property away from owner's premises
    • coverage - open peril basis , can be named peril
    • not cover - furnitiure and fixtures at fixed locations
    • valuation - agreed value or stated amt
    • some - ACV basis
    • Occasionally - replacement cost basis
  3. Controlled or Standardized Forms (C)
    • filed with Department of Insurance by insurers
    • governed by rules contained in Commercial Lines Manual
  4. Uncontrolled or Non-Standardized Forms (U)
    • developed by individual insurers
    • forms generally differ from insurer to insurer
  5. Commercial Inland Marine Coverage Part
    • 1. Common Policy Declarations
    • 2. Common Pollicy Conditions
    • 3. Commercial Inland Marine Declarations
    • 4. Commerical Inland Marine Conditions
    • 5. One or more commercial inland marine coverage forms
    • 6. endorsements
  6. Loss conditions under commercial inland marine conditions
    • 1. Abandonment
    • 2. Assignment
    • 3. Duties in the event of loss
    • 4. Insurance under two or more coverages
    • 5. Loss Payment
    • 6. Other insurance
    • 7. Pair, sets or parts
    • 8. Privilege to adjust with owner
    • 9. Recoveries
    • 10. Reinstatements after a loss
    • 11. Transfer of Rights of recovery against others to the insurer
  7. General Conditions
    • concealment
    • legal action against the insurer
    • no benefit to bailee
    • policy period
    • valuation
  8. Accounts receivable coverage form (C)
    covers amt due the insured, uncollectible from customers due to direct physical loss from a covered peril
  9. Bailees' Customers Form (U)
    • covers all lawful goods that are property of others and accepted by insured
    • does not cover insured's property
    • coverage - open or named peril basis
    • excludes misdelivery or other unaccountable losses
  10. commercial articles coverage form (C)
    covers cameras, projection machines, films and related equipment and accessories, muscial instruments and similar property of others that is in insured's care
  11. Contractor equipment Floater (U)
    • covers moblie equipment, tools and construction machinery owned by contractor
    • open peril basis with specified exclusions
    • valuation - ACV unless replacement cost is indicated
    • newly acquired equip must be reported within 60 days
    • terriotrial limits - US and its possessions like Canada and Puerto Rico
  12. Equipment Data Procession Floater (U)
    • to insure computers and other electronic data processing equipment and media like hardware, software
    • cover exteral risks of physical loss
    • excluded for intentional or faulty damage
    • hardware and software must be stated in Declarations
    • value - ACV unless replacement is stated
  13. Equipment Dealer Coverage Form (C)
    covers the insured's stock in trade principally of mobile agriculture and construction equipment in insured's care
  14. Installation Floater (U)
    • for contractors
    • to insure against risk of loss to equipments such as AC that must be installed in the buidings
    • cover during transportation, unloading, installation until control of equipment is given to the owner of the building
  15. Jeweler's Block Coverage Form (C)
    • cover insured's stock in trade principally jewelry
    • coverage written with stated limit or on a reporting form
    • not include property being worn by a salesperson or in showcases away from premises
  16. Signs Coverage Form (C)
    • covers insured's neon, fluorescent, automatic and mechanical signs in insured's care
    • does not cover electirc disturbance or short circuit by artificial generated electrical current
  17. valuable papers and records coverage form (C)
    covers the cost of replacing or reconstructing valuable paper and records, important to continuation of business following a loss
  18. Common Carrier Cargo Liability
    • absolute for loss or damage to property in their custody from any cause, except from 5 sources
    • 1. acts of god
    • 2. acts of a public enemy
    • 3. exercise of a public authority
    • 4. fault or neglect of a shipper
    • 5. inherent vice
  19. Bill of lading
    • a receipt for the goods, and sets forth the agreement between the carrier and the shipper
    • 2 types
    • 1. straight - carreir is responsible for the invoice cost of the goods
    • 2. Released - the carrier is only responsible for the value of the goods declared in Bill of Lading which lowers the shipper's cost
  20. Motor Truck Cargo Forms (U)
    Trucker's Form
    • insure public truckers for their legal liability arising out of loss or damage to cargo belonging to others in their possession
    • cover only if the carrier is legally liable for the loss
    • the loss must be covered peril
  21. Shipper's Form
    • uses the same basic policy as Trucker's Form
    • coverage different because it covers the shipper's own goods
    • provides property coverage, protect the owner of goods for loss of those goods
  22. Owner's Form
    • provide transportation coverage for a business firm that own trucks with which it transports its own goods
    • trucks - scheduled on the form
    • excludes losses caused by dishonesty of insured's employees
  23. Annual Transit
    • for business firms that want to protect all kinds of property that is either shipped or received from any common carrier
    • 2 applicable limits of liablity:
    • first limit - most that can be collected for loss in any one place
    • second limit - most that can be collected for all losses in any one disaster
    • does not cover improper packing, inherent vice and leakage
    • may be written on open cargo basis - cover all shipper's goods in transit
    • usually provided on a named peril basis
  24. Trip Transit
    • used by those who do not make regular shipments
    • cover property in temporary storage
    • often used by individuals who send their furniture and household goods to a storage location when relocating
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commercial inland marine insurance
Commercial inland marine insurance