Marine, Inland Marine, Definition With Scope of Coverage

PURPOSE: This regulation adopts and sets forth the 1976 Revision of the National Association of Insurance Commissioners' Nationwide Marine Definition with certain changes for Missouri use. Future interpretations will be made public by order or other notice. This regulation was adopted pursuant to the provisions of section 374.045, RSMo and implements section 379.316.2, RSMo. (1) Marine, transportation policies, or both may cover under the following conditions: (A) Imports may be covered wherever the property exists and without restriction as to time, provided the coverage of the issuing companies includes hazards of transportation. An import as a proper subject of marine or transportation insurance shall be deemed to maintain its character as such, so long as the property remains segregated in 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 that property has been— 1. Sold and delivered by the importer, factor or consignee; 2. Removed from place of storage and placed on sale as part of importer’s stock in trade at a point of sale-distribution; or 3. Delivered for manufacture, processing, or change in form to premises of the importer or of another used for any of these purposes; (B) Exports may be covered wherever the property exists without restriction as to time, provided the coverage of the issuing companies includes hazards of transportation. An export, as a proper subject of marine or transportation insurance, shall be deemed to acquire its character as an export 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 ruling respecting domestic shipments shall apply, provided, however, that this provision shall not apply to long established methods of insuring certain commodities, for example, cotton; (C) Domestic Shipments. 1. Domestic shipments on consignment, (provided the coverage of the issuing companies includes hazards of transportation) for sale or distribution, exhibit or trial or approval or auction, while in transit, while in the custody of others and while being returned, provided that in no event shall the policy cover on premises owned, leased, or operated by the consignor. 2. Domestic shipments not on consignment, provided the coverage of the issuing companies includes hazards of transportation, beginning and ending within the United States, provided that these shipments shall not be covered at manufacturing premises nor after arrival at premises owned, leased, or operated by assured or purchaser; (D) Bridges, tunnels, and other instrumentalities of transportation and communication (excluding buildings, their improvements and betterments, furniture and furnishings, fixed contents and supplies held in storage). The previously mentioned include: 1. Bridges, tunnels, other similar instrumentalities, including auxiliary facilities and equipment attendants; 2. Piers, wharves, docks, slips, dry docks, and marine railways; 3. Pipelines, including on-line propulsion, regulating and other equipment appurtenant to those pipelines, but excluding all property at manufacturing, producing, refining, converting, treating, or conditioning plants; 4. Power transmission and telephone and telegraph lines, excluding all property at generating, converting, or transforming stations, substations and exchanges; 5. Radio and television communication equipment in commercial use as such including towers and an antennae with auxiliary equipment and appurtenant electrical operating and control apparatus; 6. Outdoor cranes, loading bridges and similar equipment used to load, unload, and transport; and 7. Outdoor theatre equipment, except buildings; (E) Personal property floater risks covering individuals generally— 1. Personal effects floater policies; 2. The personal property floater; 3. Government service floaters; 4. Personal fur floaters; 5. Personal jewelry floaters; 6. Wedding present floaters for not exceeding ninety (90) days after the day of the wedding; 7. Silverware floaters; 8. Fine arts floaters covering paintings, etchings, pictures, tapestries, art glass windows, and other bona fide works of art of rarity, historical value or artistic merit; 9. Stamp and coin floaters; 10. Musical instrument floaters. Radios, televisions, record players, and combinations are not deemed musical instruments. These policies shall not be written on pianos and organs not customarily moved from the assured’s premises; 11. Mobile articles, machinery, and equipment floaters (excluding motor 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. These policies shall not cover furniture and fixtures not customarily used away from premises where that property is usually kept; 12. Installment sales and leased property policies covering 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. These policies must cover in transit but shall not extend beyond the termination of the seller’s or lessor’s interest; and 13. Live animal floaters; and (F) Commercial property floater risks covering property pertaining to a business, profession, or occupation. 1. Radium floaters. 2. Physicians’ and surgeons’ instrument floaters. These policies may include coverage of furniture, fixtures, and tenant assured’s interest in the improvements and betterments of buildings as are located in that portion of the premises occupied by the assured in the practice of his/her profession. 3. Pattern and die floaters. 4. Theatrical floaters, excluding buildings and their improvements and betterments and furniture and fixtures that do not travel about with theatrical troupes. 5. Film floaters, including builders’ risk during the production and coverage on completed negatives and positives and sound records. 6. Salesmen’s samples floaters. 7. Exhibition policies on property while on exhibitions and in transit to or from the exhibitions. 8. Live animal floaters. 9. Builders’ risks, installation risks, or both, covering interest of owner, seller, or contractor, against loss or damage to machinery, equipment, building material, or supplies, being used with and during the course of installation, testing, building, renovating, or repairing. These 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. Coverage shall be limited to builders’ risks or installation risks where perils in addition to fire and extended coverage are to be insured. If written for account of an owner, the coverage shall cease upon completion and acceptance by the owner; if written for account of a seller or contractor, the coverage shall terminate when the interest of the seller or contractor ceases. 10. Mobile articles, machinery, and equipment floaters (excluding motor vehicles designed for highway use and auto homes, trailers and semitrailers 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 consignment or in course of manufacture, which has come into custody or control of parties who intend to use that property for the purpose of which it was manufactured or created. These policies shall not cover furniture and fixtures not customarily used away from premises where that property is usually kept. 11. Property in transit to or from and in the custody of bailees (not owned, controlled or operated by the bailor). These policies shall not cover bailee’s property at his/her premises. 12. Installment sales and leased property. Policies covering property sold under conditional contract of sale, partial payment contract, installment sales contract, or leased but excluding motor vehicles designed for highway use. These 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 contract. 13. Garment contractors floaters. 14. Furrier’s or fur storers’ customers’ policies (that is, policies under which certificates or receipts are issued by furriers or fur storers) covering specified articles the property of customers. A. Certificates must contain all of the provisions under which the coverage is accepted without reference to the underlying policy; and show the rate and premium charges and the amount of insurance. B. The basic policy contracts between the insurer and furrier, the fur storer or both, shall specifically provide— (I) That certificates shall be issued only to individuals covering personal furs or garments trimmed with furs being AND INSURANCE the property of storage customers; (II) The rate at which the customers’ certificates shall be issued; and (III) The furrier, the fur storer, or both, shall not receive any money or commission or brokerage or anything of value for services rendered in connection with the placing of or furnishing insurance for customers and amounts of insurance under the customers’ certificates shall not be deducted from reports of storage values otherwise required of the furrier. 15. Accounts receivable policies, valuable papers and record’s policies. 16. 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— A. The merchandise is specifically identifiable as encumbered to the bank or lending institution; B. The dealer’s right to sell or otherwise dispose of the merchandise is conditioned upon its being released from encumbrance by the bank or lending institution; and C. That the policies cover in transit and do not extend beyond the termination of the dealer’s interest. Provided that the 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 institution. 17. Sign and street clock policies, including neon signs, automatic or mechanical signs, street clocks, while in use as such. 18. Fine art policies covering paintings, etchings, pictures, tapestries, art glass windows and other bona fide works of art of rarity, historical value or artistic merit, for account of museums, galleries, universities, businesses, municipalities, and other similar interests. 19. Policies covering personal property which, when sold to the ultimate purchaser, may be covered specifically, by the owner, under inland marine policies including: A. Musical instrument dealers’ policies, covering property consisting principally of musical instruments and their accessories. Radios, televisions, record players, and combinations are not deemed musical instruments; B. Camera dealers’ policies, covering property consisting principally of cameras and their accessories; C. Furrier’s dealers’ policies, covering property consisting principally of furs and fur garments; D. Equipment dealers’ policies, covering mobile equipment consisting of binders, reapers, tractors, harvesters, harrows, tedders, and other similar agricultural equipment and accessories; construction equipment, consisting of bulldozers, road scrapers, tractors, compressors, pneumatic tools and similar equipment and accessories, but excluding motor vehicles designed for highway use; E. Stamp and coin dealers covering property of philatelic and numismatic nature; F. Jewelers’ block policies; and G. Fine arts dealers. These policies may include coverage of money in locked safes or vaults on the assured’s premises. These policies also may include coverage of furniture, fixtures, tools, machinery, patterns, molds, dies, and tenant insureds’ interest in improvements of buildings. 20. Wool growers’ floaters. 21. Domestic bulk liquids policies, covering tanks and domestic bulk liquids stored in them. 22. Difference in conditions coverage excluding fire and extended coverage perils, except buildings. 23. Electronic data processing policies, except buildings. (2) Unless otherwise permitted, nothing in the foregoing shall be construed to permit marine or transportation policies to cover— (A) Storage of assured’s merchandise, except as provided; (B) Merchandise in course of manufacture, the property of and on the premises of the manufacturer; (C) Furniture and fixtures and improvements and betterments to buildings; and (D) Monies, securities, or both, in safes, vaults, safety deposit vaults, bank or assured’s premises, except while in the course of transportation. (3) Nonrecording or Chattel Mortgage Non-filing Insurance. The following types of coverage may not be written as inland marine: Loss sustained by the assured named in this regulation in retail finance transactions and direct retail loans secured by conditional sales contracts, or chattel mortgages, or certificates of title (either or both referred to in the following as security instruments) when caused by the inability of the assured to realize upon the security of them or to repossess or recover personal property described in the security instruments covered in this regulation—which has been traded, sold, removed, or otherwise disposed of and subsequently located by the assured or because of the institution of bankruptcy, receivership, or attachment proceedings, levy or execution, death of mortgagor or conditional vendee, or the creation or execution of any additional lien or encumbrance upon the same property due solely to the fact that the security instrument has not been filed or recorded with the proper public authorities to give constructive notice of it to all persons. (4) Combination Coverages. Inland marine coverage may be combined with fire casualty, fidelity, and surety coverages as a combination policy, provided the insurer is properly licensed for all the multiple lines and the combination or package has been approved by the Department of Commerce and Insurance. AUTHORITY: sections 374.045 and 379.316.2, RSMo 2016.* This rule was previously filed as 4 CSR 190-16.020. Original rule filed July 27, 1964, effective Aug. 7, 1964. Amended: Filed Dec. 5, 1969, effective Dec. 15, 1969. Amended: Filed Dec. 20, 1974, effective Dec. 30, 1974. Rescinded and readopted: Filed Feb. 13, 1978, effective June 11, 1978. Amended: Filed Jan. 15, 1979, effective June 11, 1979. Amended: Filed Dec. 13, 2018, effective July 30, 2019. Nonsubstantive change filed Sept. 11, 2019, published Oct. 31, 2019. *Original authority: 374.045, RSMo 1967, amended 1993, 1995, 2008 and 379.316.2., RSMo 1972, amended 1999, 2001.