Inland Marine Insurance and Its Importance Flashcards

AKA: Nationwide Definition and Interpretation of the insuring powers of marine and transportation underwriters. A uniform definition of marine insurance

(Or "controlled classes") are those classes of business for which rates or forms or both must be filed with the insurance commissioner of a state for the insurer to write that class of business in that state.

(Or "non-controlled" classes) are those classes of business that are not subject to rate and/or form filing regulations.

Without having to take time to obtain regulatory approval, an underwriter can modify the policy form to fit an insured's precise coverage needs and can then charge a rate that reflects the characteristics of the particular risk. This approach to rating, because it ultimately relies on the underwriter's individual assessment of the loss exposures, is called judgement rating.

Under these procedures, the underwriter obtains the insured's written consent to a rate change and files the consent statement with the state insurance department. Consent-to-Rate procedures vary by state and should be ascertained before being used.

An alternative to using conventional commercial property forms is the output policy, which combines most or all of the property and inland marine coverages that an organization might need.

Many small to medium-sized business are insured under business owners policies instead of under CPP's. Like CPP's, a business owners policy includes both commercial property and liability coverages. However, business owners policies offer a limited number of coverage options. Commonly needed inland marine coverages can be added to the policy, but the choices are fewer than those under a CPP.

An endorsement that is often attached to a homeowners policy that provides Inland Marine coverages. This endorsement is virtually identical to a traditional monoline inland marine form called the Personal Articles Floater. This endorsement can be used to cover specifically described jewelry, furs, cameras, musical instruments, silverware, golf equipment, fine arts, stamp collections and coin collections.

An inland marine form that can be placed mono-line. This endorsement can be used to cover specifically described jewelry, furs, cameras, musical instruments, silverware, golf equipment, fine arts, stamp collections and coin collections.

A fire insurer could write fire insurance but not theft insurance, and a casualty insurer could write theft insurance but not fire insurance. Hence neither type of insurer could write a single policy covering property against both fire and theft. And fire insurance was mainly limited to covering property situated at a specific location. In contrast, a marine insurer could write policies covering property anywhere in the world against fire, theft and virtually any other peril. Because marine underwriters faced intense competition from overseas insurers, state regulators generally allowed marine insurers to use whatever forms and rates were mutually agreeable to them and their policyholders. Fire and casualty insurers were limited to using standardized forms and rates that had to be approved by the regulators or by associations of insurance companies

Marine insurers were free of the regulatory constraints that applied to fire and casualty insurers. Moreover, marine insurers already had experience insuring against the risks of transportation by land.

1) It covers property of a "floating" nature.2) It covers described property while situated anywhere within the policy territory.3) It provides "all-risks" coverage, subject to relatively few exclusions.

1) Bridges and Tunnels.2) Property of Customers in the custody of cleaners and repairers.3) Property sold under an installment sales plan (in which the buyer and seller both have an interest in the covered property).4) Building materials while being transported to and installed in a building.5) Mobile equipment, such as that used by contractors.

1) To provide educational programs on inland marine insurance and related issues.2) To advise members with respect to legislation affecting the inland marine insurance business.3) To promote cooperation with state insurance departments and other organizations.

That property must be in transit or bear some relation to transportation or communication to qualify for coverage under a marine or an inland marine policy.