used to insure financed merchandise held for sale until the merchandise has been sold.
Coverage may be written to insure the insterest of the merchant, the lender, or both,
Prop in transit my also be covered
- Prop not covered
- -prop after insured's interest ends
- -Prop after sold and delievered
- -contraband, prop in illegal tade or transport
- Coverage is written on a reporting form basis that requires the insured to file reports w/ the insuer w/ in 30 days after the end of each month
- If nsured hasa not filed a report at time of loss, insurer will only be liable for only 90% of limit written.
If insured fails to make a report when required, insurer will only be liable for amount of last report .
If insured under reports valuse, the insurer wil reduce the amount payable proportionately.