Section R20-6-602. Nationwide Inland Marine Definition

A.      Applicability. This rule applies to risks and coverages which may be classified or identified as Marine, Inland Marine or Transportation insurance but shall not be construed to mean that the kinds of risks and coverages are solely Marine, Inland Marine or Transportation insurance in all instances.

This rule shall not be construed to restrict or limit in any way the exercise of any insuring powers granted under charters and license whether used separately, in combination or otherwise.

B.       Marine and/or transportation policies may cover under the fol- lowing conditions:

1.        Imports.

a.         Imports may be covered wherever the property may be and without restriction as to time, provided the coverage of the issuing companies includes hazards of transportation.

b.        An import, as a proper subject of marine or transpor- tation insurance, shall be deemed to maintain its character as such so long as the property remains segregated in such a way that it can be identified and has not become incorporated and mixed with the general mass of property in the United States, and shall be deemed to have been completed when such property has been:

i.         Sold and delivered by the importer, factor or consignee; or

ii.        Removed from place of storage and placed on sale as part of the importer’s stock in trade at a point of sale or distribution; or

iii.      Delivered for manufacture, processing or change in form to premises of the importer or of another for any such purposes.

2.        Exports.

a.         Exports may be covered wherever the property may be located without restriction as to time, provided the coverage of each issuing company includes haz- ards of transportation.

b.        An export, as a proper subject of marine or transpor- tation insurance, shall be deemed to acquire its char- acter as such when designated or while being prepared for export and retain that character unless diverted for domestic trade, and when so diverted, the provisions of this rule respecting domestic ship- ments shall apply, provided, however, that this pro- vision shall not apply to long established methods of insuring certain commodities, e.g., cotton.

3.        Domestic shipments.

a.         Domestic shipments on consignment, for sale or dis- tribution, exhibit, or trial, or approval or auction, while in transit, while in the custody of others and while being returned, provided the coverage of each issuing company includes hazards of transportation, and further provided that in no event shall the policy cover domestic shipments on consignment on prem- ises owned, leased or operated by the consignor.

b.        Domestic shipments not on consignment, provided the coverage of the issuing companies includes haz- ards of transportation, beginning and ending within the United States, and further provided that such shipments shall not be covered at manufacturing premises nor after arrival at premises owned, leased or operated by assured or purchaser.

4.        Bridges, tunnels and other instrumentalities of transporta- tion and communication excluding buildings, their improvements and betterments, their furniture and fur- nishings, fixed contents and supplies held in storage. The foregoing includes:

a.         Bridges, tunnels, other similar instrumentalities, including auxiliary facilities and equipment atten- dant thereto.

b.        Piers, wharves, docks, slips, dry docks and marine railways.

c.         Pipelines, including on-line propulsion, regulating and other equipment appurtenant to such pipelines, but excluding all property at manufacturing, produc- ing, refining, converting, treating or conditioning plants.

d.        Power transmission and telephone and telegraph lines, excluding all property at generating, convert- ing or transforming stations, substations and exchanges.

e.         Radio and television communication equipment in use as such including towers and antennae with aux- iliary equipment, and appurtenant electrical operat- ing and control apparatus.

f.         Outdoor cranes, loading bridges and similar equip- ment used to load, unload and transport.

5.        Personal Property Floater Risks covering individuals and/ or generally

a.         Personal Effects Floater Policies

b.        The Personal Property Floater

c.         Government Service Floater

d.        Personal Fur Floaters

e.         Personal Jewelry Floaters

f.         Wedding Present Floaters for not exceeding 90 days after the date of the wedding.

g.        Silverware Floaters.

h.        Fine Arts Floaters, covering paintings, etchings, pic- tures, tapestries, art glass windows, and other bona fide works of art of rarity, historical value or artistic merit.

i.         Stamp and Coin Floaters.

j.         Musical Instrument Floaters. Radios, televisions, record players and combinations thereof are not deemed musical instruments.

k.        Mobile Articles, Machinery and Equipment Float- ers, excluding vehicles designed for highway use and auto  homes,  trailers  and semi-trailers  except when hauled by tractors not designed for highway use, covering identified property of a mobile or floating nature pertaining to or usual to a household. Such policies shall not cover furniture and fixtures not customarily used away from premises where such property is usually kept.

l.         Installment Sales and Leased Property Policies cov- ering property pertaining to a household and sold under conditional contract of sale, partial payment contract or installment sales contract or leased, but excluding motor vehicles designed for highway use. Such policies must cover in transit but shall not extend beyond the termination of the seller’s or les- sor’s interest.

m.       Live Animal Floaters.

6.        Commercial  Property  Floater Risks  covering property pertaining to a business, profession or occupation.

a.         Radium Floaters.

b.        Physicians’ and Surgeons Instrument Floaters. Such policies may include coverage of such furniture, fix- tures and tenant assured’s interest in such improve- ments and betterments of buildings as are located in that portion of the premises occupied by the assured in the practice of his profession.

c.         Pattern and Die Floaters.

d.        Theatrical Floaters, excluding buildings and their improvements and betterments, and furniture and fixtures that do not travel about with theatrical troupes.

e.         Film Floaters, including builders’ risk during the production and coverage on completed  negatives and positives and sound records.

f.         Salesmen’s Samples Floaters.

g.        Exhibition Policies on property while on exhibition and in transit to or from such exhibitions.

h.        Live Animal Floaters.

i.         Builders Risks  and/or Installation Risks covering interest of owner, seller or contractor, against loss or damage to machinery, equipment, building materials or supplies, being used with and during the course of installation, testing, building, renovating or repair- ing. Such policies may cover at points or places where work is being performed, while in transit and during temporary storage or deposit, of property designated for and awaiting specific installation, building, renovating or repairing.

i.         Such  coverage  shall  be  limited  to  Builders Risks or Installation Risks where Perils in addi-

tion to Fire and Extended Coverage are to be insured.

ii.        If written for account of owner, the coverage shall cease upon completion and acceptance thereof; or if written for account of a seller or contractor the coverage shall terminate when the interest of the seller or contractor ceases.

j.         Mobile Articles, Machinery and Equipment Float- ers, excluding motor vehicles designed for highway use and auto homes, trailers and semi-trailers except when hauled by tractors not designed for highway use and snow plows constructed exclusively for highway use covering identified property of a mobile or floating nature, not on sale or consign- ment, or in course of manufacture, which has come into the custody or control of parties who intend to use such property for the purpose for which it was manufactured or created. Such policies shall not cover furniture and fixtures not customarily used away from premises where such property is usually kept.

k.        Property in transit to and from and in custody of bailees not owned, controlled or operated by the bailor. Such policies shall not cover bailee’s prop- erty at his premises.

l.         Installment sales and leased property. Policies cov- ering property sold under conditional contract of sale, partial payment contract, installment sales con- tract, or leased but excluding motor vehicles designed for highway use. Such policies must cover in transit but shall not extend beyond the termination of the seller’s or lessor’s interest. This Section is not intended to include machinery and equipment under certain “lease-back” contracts.

m.       Garment Contractors Floaters.

n.        Furriers or Fur Storer’s Customer’s Policies, i.e., policies under which certificates or receipt are issued by furriers or fur storers covering specified articles the property of customers.

o.        Accounts Receivable Policies, Valuable Papers and Records Policies.

p.        Floor Plan Policies, covering property for sale while in possession of dealers under a Floor Plan or any similar plan under which the dealer borrows money from a bank or lending institution with which to pay the manufacturer, provided:

i.         Such merchandise is specifically identifiable as encumbered to the bank or lending institution.

ii.        The dealer’s right to sell or otherwise dispose of such merchandise is conditioned upon its being released from encumbrance by the bank or lending institution.

iii.      That such policies cover in transit and do not extend beyond the termination of the dealer’s interest.

iv.       That such policies shall not cover automobiles or motor vehicles; merchandise for which the dealer’s collateral is the stock or inventory as distinguished from merchandise specifically identifiable as encumbered to the lending insti- tution.

q.        Sign and Street Clock Policies, including neon signs, automatic or mechanical signs, street clocks, while in use as such.

r.         Fine Arts Policies covering paintings, etchings, pic- tures, tapestries, art glass windows, and other bona

fide works of art of rarity, historical value or artistic merit, for account of museums, galleries, universi- ties, businesses, municipalities and other similar interests.

s.         Policies covering personal property which, when sold to the ultimate purchaser, may be covered spe- cifically, by the owner, under Inland Marine Policies including:

i.         Musical Instrument Dealers Policies, covering property consisting principally of musical instruments and their accessories. Radios, tele- visions, record players and combinations thereof are not deemed musical instruments.

ii.        Camera Dealers Policies, covering property consisting principally of cameras and their accessories.

iii.      Furrier’s Dealers Policies, covering property consisting principally of furs and fur garments.

iv.       Equipment Dealers Policies, covering mobile equipment consisting of binders, reapers, trac- tors, harvesters, harrows, tedders and other similar agricultural equipment and accessories therefor; construction equipment consisting of bulldozers, road scrapers, tractors, compres- sors, pneumatic tools, and similar equipment and accessories therefor; but excluding motor vehicles designed for highway use.

v.        Stamp and Coin Dealers covering property of philatelic and numismatic nature.

vi.       Jewelers’ Block Policies.

vii.     Fine Arts Dealers.

Such policies may include coverage of money in locked safes or vaults on the Assured’s prem- ises. Such policies also may include coverage of furniture, fixtures, tools, machinery, pat- terns, molds, dies and tenant insureds interest in improvements of buildings.

t.         Wool Growers Floaters.

u.        Domestic Bulk Liquids Policies, covering tanks and domestic bulk liquids stored therein.

v.        Difference in Conditions Coverage excluding fire and extended coverage perils.

w.       Electronic Data Processing Policies.

C.      Unless otherwise permitted, nothing in the foregoing shall be construed to permit MARINE OR TRANSPORTATION POL- ICIES TO COVER:

1.        Storage of assured’s merchandise, except as hereinbefore provided.

2.        Merchandise in course of manufacture, the property of and on the premises of the manufacturer.

3.        Furniture and fixtures and improvements and betterments to buildings.

4.        Monies and/or securities in safes, vaults, safety deposit vaults, bank or assured’s premises, except while in course of transportation.

Historical Note

Former General Rule 59-4; Amended effective August 30, 1985 (Supp. 85-4). R20-6-602 recodified from R4-

14-602 (Supp. 95-1).