Inland Marine Insurance
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Nationwide Marine Definition
specifies the types of property that may be insured on inland marine and ocean marine insurance forms. Qualifying property must generally be moveable, be in transit, or bear some other relationship to transportation or communication. Adopted by the National Association of Insurance Commissioners (NAIC) in 1953 and revised in 1976.
Inland Marine Floaters
insurance coverage on valuable items that accompanies the insured when they left home. Inland marine floaters provide coverage much broader than the coverage of fire and casualty policies. Generally covers loss from "all risks" of direct physical loss, except for some specific excluded perils, such as gradual deterioration, moths, vermin, and inherent vice.
Personal Inland Marine Policy
- Many people buy a personal inland marine policy, commonly referred to as a floater policy, to obtain broader coverage on property that frequently moves (“floats”) from one location to another.
- Although policies vary, they generally provide coverage that
- is tailored to a specific type of covered property;
- provides the amount of insurance desired;
- is broader than other types of coverage;
- covers insured property anywhere in the world; and
- in many cases, has no deductible.
Personal Articles Floater
a separate policy or an endorsement to a homeowners policy.
Personal Articles Agreed Value Loss Settlement Form (PM 00 10)
pays the full agreed amount specified in the schedule, regardless of what an appraisal might show.
Personal Articles Standard Loss Settlement Form (PM 00 09)
- the insurer agrees to pay the lowest of
- the cost of repairing the item,
- the item’s actual cash value,
- the item’s replacement cost, or
- the applicable policy limit.
Jewelry & Furs Personal Article Floater
homeowners sublimit $1,500 by theft
Silverware Personal Article Floater
homeowners sublimit $2,500 by theft
Cameras & Musical Instruments Personal Article Floater
no homeowners sublimit but homeowners is not covered by breakage or other common causes of loss
Golf Equipment Personal Article Floater
can either be scheduled or blanket; Golf balls are only covered for loss by fire or burglary.
Fine Arts Personal Floater
open perils worldwide; blanket coverage= standard loss; scheduled coverage= agreed loss settlement.
Stamp & Coin Collections Personal Floater
can either be scheduled or blanket; blanket= $250/item and $1,000/collection; does not cover handling or aging damages.
Components of a Commercial Inland Marine Policy
- A complete freestanding inland marine policy is composed of:
- a declarations page(s)
- a common policy conditions form
- a commercial inland marine conditions form
- one or more inland marine coverage forms
Accounts Receivable Commercial Floater
- Accounts receivable insurance pays the increased costs of collecting accounts, the cost to reestablish the accounts receivable records to the extent possible, and any amounts that remain uncollectible as a result of the destruction of accounts receivable records due to a covered cause of loss.
- Coverage applies on an open perils basis subject to some excluded loss causes, such as dishonesty and bookkeeping errors.
- An 80 percent coinsurance condition requires that the limit of insurance be equal to at least 80 percent of the amount of accounts receivable outstanding at time of loss.
- Once the amount of accounts receivable outstanding at the time of loss has been determined, a deduction is made for collected accounts, the amounts for which records can be reconstructed, unearned interest and service charges, and a normal bad debt allowance.
Bailees' Customers Commercial Floater
A bailees’ customers floater covers customers’ property for damage by a covered peril while it is in the insured bailee’s custody, regardless of whether the bailee is legally liable for the loss. Coverage is available on a named perils or open perils basis.
Commercial Articles Commercial Floater
designed to insure either camera equipment or musical instruments used commercially or by nonprofit organizations. Open perils; coinsurance on not listed items.
Contractors' Equipment Commercial Floater
- largest class of inland marine insurance;
- coverage on small and large tools and equipment;
- scheduled or blanket;
- open or named perils;
- typically actual cash basis;
- high physical depreciation;
- usually requires 80, 90, or 100% coinsurance
Electronic Data Processing (EDP) Commercial Floater
can cover computer equipment, software, and data.
Equipment Dealers Commercial Floater
- designed to insure the inventory of mobile agricultural and construction equipment dealers;
- open perils with some exclusions;
- actual cash value basis;
- protective safeguards endorsement
Installation Commercial Floater
- usually open perils basis;
- property is usually covered while it is in transit, being installed, and tested;
- coverage ends when installation is complete and accepted by the purchaser.
Jewelers Block Commercial Floater
- covers a jeweler's stock
- very detailed;
- open perils with exclusions
Valuable Papers & Records Commercial Floater
- pays costs to reconstruct
- no coinsurance provision
Motor Truck Cargo Forms
designed to cover the interest of a trucking firm in property of others that it is transporting for a fee.
Transit Coverage Forms
- designed to protect the cargo owner.
- Annual policy covers all goods shipped during a one-year period.
- A trip transit policy covers one specific shipment.
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