Nationwide Marine Definition

IMUA has prepared this digest showing the status of definitions of marine, inland marine, or transportation insurance in the various jurisdictions to assist companies in determining those classes of business which may be so classified. Except for Texas, it does not show what classes are filed or non-filed.

The digest contains an historical introduction, the NAIC Resolution, a listing of the jurisdictions showing the applicable Definition including reference to the statutory source of Inland Marine, amendments made to the 1976 NAIC Nationwide Marine Definition by several states, and the three Definitions currently in force.

IMUA will notify you of any further adoptions of the 1976 Nationwide Marine Definition by those states which have not yet taken action.

Questions or comments concerning the Nationwide Marine Definition may be directed to: Inland Marine Underwriters Association, 111 Broadway New York, New York 10006.

The Nationwide Marine Definition

It's History and Purpose

The myriad of risks within the Inland Marine classification do not lend themselves to be adequately embraced within the statutes that govern the more "traditional" forms of insurance such as Fire, Casualty, Boiler and Machinery and similar lines of insurance. The very nature of Inland Marine insurance requires that this line of insurance be defined by a document capable of embracing a wide variety of risk situations with limited homogeneity. This very diversity of exposure is one of the primary reasons for the need of the Nationwide Marine Definition.

Another principle reason for the existence of a Nationwide Marine Definition is that state insurance supervisory authorities have long recognized the impossibility and impracticability of a precise statutory definition of insurance for the Inland Marine classifications. They readily recognize that for the purposes of administering the insurance laws, there had to be a line of demarcation between Marine, including Inland Marine, and other existing classes of insurance.

The first attempt to set forth a Countrywide Marine Definition was made in 1933 when the then National Convention of Insurance Commissioners adopted a resolution recommending the preparation and adoption of a proposed definition and interpretation of Marine underwriting powers that could be generally accepted within the United States. Thereafter, most of the states adopted and promulgated the Marine Definition by ruling of their Insurance Commissioners.

Since that time the Definition has been revised on two different occasions, the first revision coming in December 1953 and the most recent revision being made in December 1976. The majority of states have adopted the 1976 Nationwide Marine Definition; although there are some states wherein the 1953 Definition remains applicable and a few which have not adopted either version.

In addition to recommending and promulgating a Nationwide Definition, the National Association of Insurance Commissioners also formulated a Committee known as the
Committee on Interpretation of the Nationwide Marine Definition. One of the basic functions of this Committee was to examine inquiries submitted to it from time to time as to whether or not a certain type of exposure could be classified as Inland Marine insurance. When the Committee made its decision the various states would then either adopt or not adopt the interpretation for use in their jurisdiction.

In 1981, the Committee structure of the NAIC was completely revised and at that time the Committee of Interpretation was eliminated and ceased to exist. Recognizing the importance of the Definition and the need for its continuance, the Inland Marine Underwriters Association established a standing committee within the Association whose function and responsibility is to monitor, on an industry wide basis, all matters that affect or are otherwise related to the Definition. These would include the following services:

The Committee maintains communication with those states which have not adopted the 1976 Definition and encourages them to do so by pointing out the advantages of having the latest Definition in force in their jurisdiction;

The Committee issues periodic updated digests showing the applicable Definition that is in force in a given jurisdiction, including the date of adoption and any amendments that may be applicable in any one state;

Upon request the Committee will provide "opinions" to any inquirer on all matters dealing with the Definition. These "opinions" merely serve as advisory guides to the inquirer and;

The Committee will continue to be alert to conditions within the Inland Marine industry which would necessitate a further change in the Nationwide Marine Definition in the future and at that time would make recommendations for revision to the appropriate authorities.

One final concluding comment: It must be remembered that the Definition purpose is to categorize Marine or Inland Marine insurance and does not in any way purport to conclude what classifications are recognized as "filed" classifications and what classifications are recognized as "non-filed" classifications. This determination rests solely with the insurance departments within the various jurisdictions of the United States.

Resolution

WHEREAS the National Convention of Insurance Commissioners of the United States did in December 1922, approve a Definition of Marine Underwriting Powers; and

WHEREAS the National Convention of Insurance Commissioners of the United States, in session at Chicago, Illinois, on the 2nd day of June 1933, unanimously adopted a resolution recommending the approval and adoption by the Convention of a proposed Definition and Interpretation of Marine Underwriting Powers for general acceptance in the United States and approving in principle an arrangement for carrying out said Definition and Interpretation under which an Industry Committee on Interpretation was constituted and functioned; and

WHEREAS at the mid-winter meeting of the National Association of Insurance Commissioners held in New York in December 1952, the Committee on Definition and Interpretation of Underwriting Powers of the Association did submit a report to the Association which recommended:

"1.) Reaffirmation by the National Association of Insurance Commissioners of the necessity for a Nationwide Marine Definition.

2.) That the Association authorize the Committee to prepare and submit at the June 1953, meeting a proposed amended Marine Definition which will a.) conform to the amendments in force in the majority of individual States, b.) further clarify the said Definition so as to eliminate doubts which may arise as to the classification of certain
types of policies, and c.) bring about such other changes in the definition as, after study and review, seem appropriate."

and

WHEREAS the report aforesaid was approved and adopted by the Association;
and

WHEREAS the said Committee has now reported recommending the approval and
adoption by this Association of an amended Nationwide Marine Definition and
interpretation for general acceptance in the United States; and

WHEREAS the said Committee by its report proposes the appointment by the
National Association of Insurance Commissioners of an Industry Committee which shall be organized for the purpose of recommending to the National Association of Insurance Commissioners and to the Commissioners, Superintendents and Directors of Insurance of the States, Territories and the District of Columbia, interpretations of the amended Nation-wide Marine Definition;

NOW THEREFORE be it RESOLVED that the National Association of Insurance Commissioners of the United States accept and approve the report of the Committee on Definition and Interpretation of Underwriting Powers; and be it further

RESOLVED that this Association accept and recommend that insurance supervisory authorities of the various jurisdictions accept and promulgate the amended Nationwide Marine Definition reported by the Committee on Definition and Interpretation of Underwriting Powers of this Association; and be it further

RESOLVED that the Association, through its duly authorized officer, with the advice of the industry, appoint a representative Industry Committee to be known as the Committee on Interpretation of the Nationwide Marine Definition pursuant to the following Plan

PLAN FOR A COMMITTEE ON INTERPRETATION OF THE NATIONWIDE MARINE DEFINITION

To the extent now or hereafter permitted by and consistent with law, to bring about and maintain uniformity in the definition and classification of Marine and Inland Marine insurance, in cooperation with the National Association of Insurance Commissioners and the Commissioners, Superintendents and Directors of Insurance of the several States, Territories and the District of Columbia:

A representative committee, to be known as the Committee on Interpretation of the Nationwide Marine Definition, consisting of fifteen persons, shall be appointed by the National Association of insurance Commissioners with the advice of the industry - five of whom shall be Marine and Inland Marine insurance representatives, five Fire insurance representatives and five Casualty and Surety insurance representatives. All the members of said Committee shall be senior executives of insurers or senior officers of insurers' organizations or senior executives of managerial insurance underwriters.

The members of said Committee shall be appointed for a period of three years but shall continue as members until their successors are appointed. Members may be represented at meetings by designated substitutes empowered with full authority to act. Nine members shall constitute a quorum provided such number shall include at least three Fire, three Marine and three Casualty members (or their alternates).

Said Committee shall recommend to the National Association of Insurance Commissioners and to the Commissioners, Superintendents and Directors of Insurance of the States, Territories and the District of Columbia, interpretations of the Nationwide Marine Definition; assume such duties as may be assigned to the Committee by the National Association of Insurance Commissioners and the Commissioners, Superintendents and Directors of Insurance of the States, Territories and the District of Columbia; elect a Chairman and Vice-Chairman; appoint an Executive Secretary and Treasurer and such other employees as may be necessary and fix their salaries and terms of office; incur such expenses as may be deemed necessary by the Committee and devise means for defraying same by the insurance industry; and take such other action as may be deemed
appropriate to carry out the purpose of the Plan.

1976 REVISION

The National Association of Insurance Commissioners In session In Phoenix, Arizona on December 9, 1976, accepted and approved the recommendation of its Property and Liability (D) Committee Nationwide Marine Definition Task Force that the Association adopt the newly revised Nationwide Marine Definition set forth below; and

RESOLVED, that this Association accept and recommend that insurance supervisory authorities of the various jurisdictions accept and promulgate, the revised Nationwide Marine Definition.

State Digest of Applicable Nationwide Marine Definition

State, Applicable Definition, Statutory Source of Inland Marine, Comments

Alabama, 1976, §27-5-8

Alaska, 1976, §21.12.090

Arizona, 1953, §20-255

Arkansas, 1976, §66-2407

California, 1953, Ins. Code §103

Colorado, 1976, §10-3-102

Connecticut, 1976, §38-100

Delaware, 1976, Tit. 18 §907

District of Columbia, --, §35-1401, See Note 1.)

Florida, 1976, §624.607, See Note 3.)

Georgia, 1976, §33-7-5, See Note 2.)

Hawaii, --, §431-9, See Note 1.)

Idaho, 1976, §41-505

Illinois, 1953, Ch. 73, §616

Indiana, 1976, §27-1-5-1

Iowa, --, §515.48, See Note 1.)

Kansas, 1953, §40-901

Kentucky, 1976, §304.5-080

Louisiana, 1976, §22:6

Maine, 1976, Title §24-a 708

Maryland, 1953, Art. 48A §70A

Massachusetts, 1976, Ch. 175 §47

Michigan, 1976, §500.614

Minnesota, 1976, §60A.06

Mississippi, 1976, §83-19-1, See Notes 2.) and 4.)

Missouri, 1976, §379.010, See Note 5.)

Montana, 1976, §§33-1-221 to 229

Nebraska, 1976, §44-201, See Note 2.)

Nevada, 1976, §681A.050, See Note 2.)

New Hampshire, 1976, §401:1

New Jersey, 1976, §17:17-1

New Mexico, --, §59-27-30, See Note 1.)

New York, 1953, Ins. Law §46 (20)

North Carolina, 1976, §58-72

North Dakota, 1976, §26-08-02

Ohio, 1976, §3941.02

Oklahoma, 1976, Tit. 36 §705

Oregon, 1953, §731.174

Pennsylvania, 1976, Stat. Ann. Tit. 40 §382, See Note 6.)

Puerto Rico, 1976, Tit. 26 §405, See Note 7.)

Rhode Island, 1976, §27-8-1

South Carolina, 1976, §38-5-20

South Dakota, 1953, §§58-9-6 to 10

Tennessee, --, §56-2-201

Texas, 1963, Art. 6.03

Utah, 1953, §31-11-5

Vermont, 1976, Tit. 8 §3301

Virginia, 1976, §38.1-22, See Note 2.)

Washington, 1976, §48-11.050

West Virginia, 1953, §33-1-10

Wisconsin, --, §627.05, See Note 1.)

Wyoming, 1976, §26-5-107

AMENDMENTS TO THE 1976 NATIONWIDE MARINE DEFINITION

NOTE NO. 1): - These States did not adopt a Definition and revert to Statutory Descriptions. As a general underwriting guide many companies utilize the 1976 Definition.

NOTE NO. 2): - These States utilize the 1976 Definition for Advisory Purposes only.

NOTE NO. 3): - FLORIDA'S adoption excluded MAIC sections E. 13 and F. 8, Live Animal Floaters, as animal mortality under the Florida Code is a casualty class.

NOTE NO. 4): - In MISSISSIPPI it is not permissible to underwrite Builders Risk on real property on an Inland Marine form (NAIC section F.9). Installation policies are permitted as Inland Marine.

NOTE NO. 5): - In its adoption the MISSOURI Division of Insurance added the following:

Section D. - BRIDGES, TUNNELS etc. "Outdoor theater equipment, except buildings." was added as item 7.

Section E. 10 - MUSICAL INSTRUMENT FLOATERS. "Such policies shall not be written on pianos and organs not customarily moved from the assured's premises." was added as a second sentence.

Section F. 14 - FURRIERS OR FUR STORERS' CUSTOMER'S POLICIES. The following refinements were added to the existing item:

"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 contract between the insurer and furriers and/or fur storer shall specifically provide:

(I) that certificates shall be issued only to individuals covering personal furs or garments trimmed with furs being the property of storage customers; and

(II) the rate at which the customers certificates shall be issued; and that

(III) the furrier and/or fur storer 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 such customers, certificates and amounts of insurance under such customers certificates shall not be deducted from reports of storage values otherwise required of the furriers."

Section F. 22 and F. 23 DIC and EDP - The words, "except buildings." were added at the end of each item.

Chapters III. and IV - Two additional chapters were added at the conclusion of the MAIC instrument, as follows:

"III. Non-recording or Chattel Mortgage Non-filing Insurance

(A) The following types of coverage may not be written as inland marine: Loss sustained by the assured named herein in retail finance transactions and direct retail loans secured by conditional sales contracts or chattel mortgage or certificates of title (either or both hereinafter referred to as security instruments) when caused by the inability of the assured to realize upon the security thereof, or to repossess or recover property described in any such security instrument covered hereunder 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 of execution of any additional lien or encumbrance upon the same property, due solely to the fact that any such security instrument has not been filed or recorded with the proper public authorities to give constructive notice thereof to all persons.

"IV. Combination Coverages

(A) 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 Division of Insurance."

NOTE NO. 6: - Pennsylvania's adoption did not include section E.12 -- personal Installment Sales and Leased Property policies.

NOTE NO. 7: - In its adoption the PUERTO RICO Insurance Commission added the following:

Section A. IMPORTS.

The words, "on consignment" were added to the first sentence following the opening word 'Imports'.

These three paragraphs were inserted between the two paragraphs existing in the NAIC version:

A shipment "on consignment" shall mean property consigned and intrusted to a factor or agent to be held in his care, or under his control for sale for account of another or for exhibit or trial or approval or auction, and if not disposed of, to be returned.

Imports not on consignment in such places of storage as are usually employed by importers, provided the coverage of the issuing companies includes hazards of transportation.

Such policies may also include the same coverage in respect to the property purchased on C.I. F. terms or "spot" purchases for inclusion with or in substitution for bona fide importations.

Section C. DOMESTIC SHIPMENTS.

These paragraphs were substituted for those in the NAIC version:

(1) Domestic shipments of consignment, provided the coverage of the issuing companies includes hazards of transportation.

(a) Property shipped on consignment for sale or distribution, while in transit and not exceeding 120 days after arrival at consignee's premises or other place of storage or deposit; and

(b) Property shipped on consignment for exhibit, or trial or approval or auction, while in transit, while in the custody of others and while being returned.

(2) Domestic shipments not on consignment, provided the coverage of the issuing companies includes hazards of transportation, beginning and ending with Puerto Rico, provided that such shipments shall not be covered at manufacturing premises nor after arrival at premises owned, leased or operated by insured or purchaser, nor for more than 90 days at other place of storage or deposit, except in premises on transportation companies or freight forwarders, when such storage in incident to transportation.

Section G. MARINE COMPREHENSIVE POLICY.

This new item was added as Section G., at the end of the NAIC version:

A Marine comprehensive policy may cover, under the long established methods of insuring such commodities which are produced in Puerto Rico and exported to the extent of not less than seventy-five percent (75%) of the total output of the particular industry, provided such policy shall cover the hazards of ocean marine transportation and the Assured shall pay premium thereon and provided further, that any marine comprehensive policy covering sugar or tobacco shall be subject to the same requirement.

Chapter II. EXCLUDED COVERAGES.

Item "D" was relettered as item "E", and these two new items were added:

D. Merchandise in permanent location, sold under partial payment, contract of sale, or installment sales contract, which involves protection of the purchaser's interest after seller's interest ceases.

F. Risks of fire, windstorm, sprinkler leakage, earthquake, hail, explosion, riot, and civil commotion on buildings, structures, wharves, piers, docks, bulkheads and sheds and other fixed real property on land and over water, except as hereinbefore provided.

1976 Revision

NATIONWIDE MARINE DEFINITION

The National Association of Insurance Commissioners in session in Phoenix, Arizona on December 9, 1976, accepted and approved the recommendation of its Property and Liability (D) Committee Nationwide Marine Definition Task Force that the Association adopt the newly revised Nationwide Marine Definition set forth below; an

RESOLVED, that this Association accept and recommend that insurance supervisory authorities of the various jurisdictions accept and promulgate the revised Nationwide Marine Definition.

NATIONAL ASSOCIATION OF INSURANCE COMMISSIONERS NATIONWIDE MARINE DEFINITION

The purpose of this instrument is to describe the kinds of risks and coverages which may be classified or identified under State Insurance Laws as Marine, Inland Marine or Transportation insurance, but does not include all of the kinds of risks and coverages which may be written, classified or identified under Marine, Inland Marine or Transportation insuring powers, nor shall it be construed to mean that the kinds of risks and coverages are solely Marine, Inland Marine or Transportation insurance in all instances. This instrument 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.

1. Marine and/or transportation policies may cover under the following conditions:

A. IMPORT

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.

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 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:

(a) sold and delivered by the importer, factor or consignee; or

(b) removed from place of storage and placed on sale as part of importer's stock in trade at a point of sale-distribution; or

(c) delivered for manufacture, processing or change in form to premises of the importer or of another used for any purposes.

B. EXPORTS

Exports may be covered wherever the property may be 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 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 Ruling respecting domestic shipments shall apply, provided, however, that this provision shall not apply to long established methods of insuring certain commodities, e.g., 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 such 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 foregoing includes:

1. Bridges, tunnels, other similar instrumentalities, including auxiliary facilities and equipment attendant thereto.

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

3. Pipelines, including on-line propulsion, regulating and other equipment appurtenant. to such 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 use as such including towers and 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.

E. PERSONAL PROPERTY FLOATER RISKS covering individuals and/or 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 90 (ninety) 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 thereof are not deemed musical instruments.

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. Such policies shall not cover furniture and fixtures not customarily used away from premises where such 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. Such policies must cover in transit but shall not extend beyond the termination of the seller's or lessor's interest.

13. Live Animal Floaters.

F. COMMERCIAL PROPERTY FLOATER RISKS covering property pertaining to a business, profession or occupation.

1. Radium Floaters.

2. Physicians' and Surgeons' Instrument Floaters. Such policies may include coverage of such furniture fixtures and tenant Assured's interest in such improvements and betterments of buildings as are located in that portion of the premises occupied by the assured in the practice of his 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 exhibition and in transit to or from such exhibitions.

8. Live Animal Floaters.

9. 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 repairing. 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.

Such 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 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.

10. 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 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 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.

11. Property in transit to or from and in custody of bailees (not owned, controlled or operated by the bailor). Such policies shall not cover bailee's property at his 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. 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 "leaseback" contracts.

13. Garment Contractors Floaters.

14. Furriers or Fur Storer's Customer's Policies (i.e., policies under which certificates or receipts are issued by furriers or fur storers) covering specified articles the property of customers.

15. Accounts Receivable Policies, Valuable Papers and Records 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:

Provided 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 institution.

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

18. Fine Arts 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 thereof 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 therefore; construction equipment consisting of bulldozers, road scrapers, tractors, compressors, pneumatic tools and similar equipment and accessories therefore; but excluding motor vehicles designed for highway use.

(e) Stamp and Coin Dealers covering property of philatelic and numismatic nature.

(f) Jewelers' Block Policies.

(g) Fine Arts Dealers.

Such policies may include coverage of money in locked safes or vaults on the Assured's premises. Such 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 therein.

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

23. Electronic Data Processing Policies.

II. 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 hereinbefore 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.

D. Monies and/or securities in safes, vaults, safety deposit vaults, bank or Assured's premises, except while in the course of transportation.

1953

National Association of Insurance Commissioners Nationwide Marine Division

The purpose of this instrument is to describe the kinds of risks and coverages which may be classified or identified under State Insurance Laws as Marine, Inland Marine or Transportation insurance, but does not include all of the kinds of risks and coverages which may be written, classified or identified under Marine, Inland Marine or Transportation insuring powers, nor shall it be construed to mean that the kinds of risks and coverages are solely Marine, Inland Marine or Transportation insurance in all instances.

This instrument 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.

1. Marine and/or transportation policies may cover under the following conditions:

A. Imports

1. Imports on consignment 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.

A shipment "on consignment" shall mean property consigned and intrusted to a factor or agent to be held in his care, or under his control for sale for account of another or for exhibit or trial or approval or auction, and if not disposed of, to be returned.

2. Imports not on consignment in such places of storage as are usually employed by importers, provided the coverage of the issuing companies includes hazards of transportation.

Such policies may also include the same coverage in respect to property purchased on CIF terms or "spot" purchases for inclusion with or in substitution for bona fide importations.

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 the original form or package 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:

(a) sold and delivered by the importer, factor or consignee; or

(b) removed from place of storage as described in paragraph "2" above and placed on sale as part of importer's stock in trade at a point of sale-distribution; or

(c) delivered for manufacture, processing or change in form to premises of the importer or of another used for any such purposes.

B. Exports

1. Exports may be covered wherever the property may be 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 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 Ruling respecting domestic shipments shall apply, provided, however, that this provision shall not apply to long established methods of insuring certain commodities, e.g., cotton.

C. Domestic Shipments

1. Domestic shipments on consignment, provided the coverage of the issuing companies includes hazards of transportation.

(a) Property shipped on consignment for sale or distribution, while in transit and not exceeding one hundred and twenty (120) days after arrival at consignee's premises or other place of storage or deposit; and

(b) Property shipped on consignment for exhibit, or trail, or approval or auction, while in transit, while in the custody of others and while being returned.

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 such shipments shall not be covered at manufacturing premises nor after arrival at premises owned, leased or operated by Assured or purchaser, nor for more than ninety (90) days at other place of storage or deposit, except in premises of transportation companies or freight forwarders, when such storage is incident to transportation.

D. Bridges, tunnels and other instrumentalities of transportation and communication (excluding buildings, their furniture and furnishings, fixed contents and supplies held in storage) unless fire, tornado, sprinkler leakage, hail, explosion, earthquake, riot and/or civil commotion. Other aids to navigation and transportation, including dry docks and marine railways, against all risks.

The foregoing includes:

1. Bridges, tunnels, other similar instrumentalities, unless fire, lightning, windstorm, sprinkler leakage, hail, explosion, earthquake, riot or civil commotion are the only perils to be covered.

2. Piers, wharves, docks and slips, but excluding the risks of fire, lightning, windstorm, sprinkler leakage, hail, explosion, earthquake, riot or civil commotion.

3. (a) Pipelines, including on-line propulsion, regulating and other equipment appurtenant. to such pipelines, but excluding all property at manufacturing, producing, refining, converting, treating or conditioning plants.

(b) Power transmission and Telephone and Telegraph lines, excluding all property at generating, converting or transforming stations, substations and exchanges.

4. Radio and Television Communication Equipment in commercial use as such including towers and antennae with auxiliary equipment, and appurtenant electrical operating and control apparatus but excluding buildings, their improvements and betterments, furniture and furnishings and supplies held in storage therein.

5. Outdoor cranes, loading bridges and similar equipment used to load, unload and transport.

E. PERSONAL PROPERTY FLOATER RISKS

1. Covering Individuals.

(a) Tourists Floater, Personal Effects Floater Policies.

(b) The Personal Property Floater.

(c) Government Service Floaters.

(d) Personal Fur Floaters.

(e) Personal Jewelry Floaters.

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

(g) Silverware Floaters.

2. Covering Individuals and/or Generally.

(a) Fine Arts Floaters, Stamp and Coin Floaters. To cover objects of art such as pictures, statuary, bronzes and antiques, rare manuscripts and books, articles of virtu, etc.

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

(c) Radium Floaters.

(d) Physicians' and Surgeons' Instrument Floaters. Such policies may include coverage of such furniture, fixtures and tenant Assured's interest in such improvements and betterments of buildings as are located in that portion of the premises occupied by the assured in the practice of his profession.

(e) Pattern and Die Floaters, excluding coverage on the owner's premises.

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

(g) Film Floaters, including builders' risk during the production and coverage on completed negatives and positives and sound records.

(h) Salesmen's Samples Floaters.

(i) Jewelers' Block Policies, including tenant Assured's interest in improvements and betterments of buildings, furniture, fixtures, tools, machinery, patterns, molds and dies.

(j) Exhibition Policies on property while on exhibition and in transit to or from such exhibitions.

(k) Live Animal Floaters, covering wherever animals, wagons and mobile equipment may be.

(l) Installation Risks, covering machinery and equipment including plumbing, heating, cooling and electrical systems (as distinguished from building materials) while in transit to place of installation and during the period of installation and testing. Coverage must cease: (1) where such property is insured for the account of the seller or installer, when the interest of such insured ceases; or, (2) in no case later than when such property has been accepted as satisfactory; whichever first occurs, as to (1) or (2).

Building materials (e.g., structural steel, lumber, bricks and mortar), while in transit to place of installation and after arrival thereat but such coverage must terminate when the materials are installed and have become a physical part of the realty or when the seller's interest ceases, whichever first occurs.

(m) 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 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 manufacturer, 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.

(n) Property in transit to or from and in the custody of

(1) bleacheries, throwsters, fumigatories, dyers, cleaners, laundries and similar bailees;

(2) needleworkers;

(3) other bailees (not owned, controlled or operated by the bailor) for the purpose of performing work thereon (as distinguished from the making of a complete article) including the treatment of, or assemblage of property on the premises of bailees.

Such policies shall not cover bailee's property at his premises.

(o) 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. 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.

(p) Garment Contractors Floaters.

(q) Furriers or Fur Storer's Customer's Policies (i.e., policies under which certificates or receipts are issued by furriers or fur storers) covering specified articles the property of customers.

(r) Accounts Receivable Policies. Valuable Papers and Records Policies.

(s) Cold Storage Locker Plant Policies, covering merchandise of customers consisting principally of meats, game, fish, poultry, fruit, vegetables and property of a similar nature.

(t) 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:

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

2. 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.

3. That such policies cover in transit and do not extend beyond the termination of the dealer's interest. Provided 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 institution.

(u) Sign and Street Clock Policies, covering neon signs, automatic or mechanical signs, street clocks, while in use as such.

(v) The following policies covering property which, when sold to the ultimate purchaser, may be covered specifically, by the owner, under Inland Marine Policies:

(1) Musical Instrument Dealers Policies, covering property consisting principally of musical instruments and their accessories. Radios, televisions, record players and combinations thereof are not deemed musical instruments.

(2) Camera Dealers Policies, covering property consisting principally of cameras and their accessories.

(3) Furrier's Dealers Policies, covering property consisting principally of furs and fur garments.

(4) Equipment Dealers Policies, covering mobile equipment consisting of binders, reapers, tractors, harvesters, harrows, tedders and other similar agricultural equipment and accessories therefore; construction equipment consisting of bulldozers, road scrapers, tractors, compressors, pneumatic tools and similar equipment and accessories therefore; but excluding motor vehicles designed for highway use.

All such policies shall exclude coverage of monies and securities. Such policies may include coverage of tenant Assured's interest in improvements and betterments of building and of furniture, fixtures, tools, machinery, patterns, molds and dies.

(w) Wool Growers Floaters.

(x) Domestic Bulk Liquids Policies, covering domestic bulk liquids stored in tanks provided the risks of fire and inherent explosion, windstorm, sprinkler leakage, earthquake, hail, explosion, riot or civil commotion are excluded therefrom.

(y) Furniture Shipment Policies, covering furniture, fixtures and equipment in bona fide course of shipment from one location to another location of the owner including in place of deposit incident to such transportation while awaiting determination or availability of final destination, in which event they must cover at time of issuance transportation to or from such place of deposit but may not cover after delivery at destination.

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 hereinbefore 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.

D. Merchandise in permanent location, sold under partial payment, contract of sale, or installment sales contract, which involves protection of the purchaser's interest after seller's interest ceases.

E. Monies and/or securities in safes, vaults, safety deposit vaults, bank or Assured's premises, except while in the course of transportation.

F. Risks of fire, windstorm, sprinkler leakage, earthquake, hail, explosion, riot, and/or civil commotion on buildings, structures, wharves, piers, docks, bulkheads and sheds and other fixed real property on land and/or over water, except as hereinbefore provided.

TEXAS

DEFINITION OF INLAND MARINE INSURANCE

The State Board of Insurance has adopted the following Texas Definition of Inland Marine Insurance to become effective on and after September 1, 1963.

The purpose of this Definition is to identify the various classifications of risks defined by the State Board of Insurance as Inland Marine Insurance subject to such standards of qualification as may be herein applied to any class or sub-class of risk.

The regulatory status of each class (or sub-class where indicated) is noted by the language "Filed," "Non-Regulated," or "Fire and E.C." as specifically applied to each class or sub-class and which shall be interpreted as follows:

(a) "Filed" indicates those classes or sub-classes for which rules, rates, and forms must be filed with the State Board of Insurance for approval.

(b) "Non-Regulated" indicated those classes or sub-classes for which rules, rates, and forms are not subject to filing requirements or uniform standards of application.

(c) "Fire and E.C." indicates those classes or sub-classes for which rules, rates, and forms are not subject to filing requirements but for which the premium for the Inland Marine policy must be in excess of the premium which would be otherwise produced by the application of approved Fire and Extended Coverage rates if the Inland Marine policy insures against the perils of Fire and Extended Coverage. "Approved rates" as used in this paragraph (c) shall be deemed to mean the maximum Fire and Extended Coverage rates published by the State Board of Insurance.

The exclusion of Fire and Extended Coverage shall not be deemed to make any risk automatically eligible for Inland Marine Insurance in the absence of proper authority herein granted to qualify such risk as a proper subject for Inland Marine Insurance.

Inland Marine Insurance is classified as follows:

A. IMPORTS (Non-Regulated)

Imports may be insured under Inland Marine policies, when such property is not subject to import risk under Marine (Ocean) policies, as follows:

1. Imports on consignment 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.

A shipment "on consignment" shall mean property consigned and entrusted to a factor or agent to be held in his care, or under his control for sale, for account of another, or for exhibit or trial or approval or auction, and if not disposed of, to be returned.

2. Imports not on consignment in such places of storage as are usually employed by importers, provided the coverage of the issuing companies includes hazards of transportation.

Such policies may also include the same coverage in respect to property purchased on "Cost-Insurance-Freight" terms or "spot" purchases for inclusion with or in substitution for bona fide importations.

An Import, as a proper subject for Inland Marine Insurance shall be deemed to maintain its character as such so long as the property remains segregated in the original form or package 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:

(a) Sold and delivered by the importer, factor or consignee; or

(b) Removed from place of storage as described in paragraph "2" above and placed on sale as part of importer's stock in trade at a point of sales distribution; or

(c) Delivered and accepted for manufacture, processing or change in form to premises of the importer or of another used for any such purposes.

B. EXPORTS (Non-Regulated)

Inland Marine policies may cover property for export, when such property is not subject to export risk under Marine (Ocean) policies, as follows:

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

Export property shall be deemed to acquire its character as such when designated as such or while being prepared for export and retain that character unless diverted for domestic trade, and when so diverted, the provisions of this Definition respecting domestic shipments shall apply, provided, however, that these provisions shall not apply to long established methods of insuring certain commodities, e.g., cotton.

C. DOMESTIC SHIPMENTS (Non-Regulated)

1. Domestic shipments on consignment for consignor and/or consignee may be written as follows provided that in all events the policy shall cover while in transit:

(a) On consignment for sale or distribution for account of consignor, with no restriction as to time in storage or deposit, while in the custody of others and including return shipments provided that in no event shall the policy cover on premises owned, leased or controlled by the consignor.

(b) On consignment for sale or distribution for account of consignee while in the custody of others and including return shipments provided that in no event shall coverage be granted in excess of one hundred twenty (120) days at premises owned, leased or controlled by consignee; further provided that if coverage be issued jointly to consignee and consignor the same limitation of one hundred twenty (120) days for coverage at premises owned, leased or controlled by consignee shall be applicable only with respect to the interest of the consignee.

(c) On consignment for account of consignor and/or consignee for exhibition, trial, approval, or auction, without restriction as to time in storage or deposit or on exhibition and while in the custody of others and including return shipments.

2. Domestic shipments not on consignment may be written as follows provided that in all events the policy shall cover while in transit:

(a) At premises of transportation companies or freight forwarders pending transportation without restriction as to time in storage or deposit. NOTE: For purposes of insurance under paragraph (a) a freight forwarder shall be defined as a warehouse or transportation concern who takes custody of the property of others for storage and transport either by schedule or upon call.

(b) Furniture shipment policies without restriction as to time in storage or deposit to cover only used household furniture and used furniture and fixtures in course of transit while awaiting determination or availability of final destination. Such policies shall not cover after delivery to final destination and shall not include merchandise held for sale.

(c) In all other situations provided the coverage shall not exceed one hundred twenty (120) days at any place of storage or deposit operated by the assured except coverage at points of sales distribution or at manufacturing premises of the assured which may be written without regard to such restriction of time in storage provided, however, that in no event shall any policy cover the perils of Fire and Extended Coverage at such points of sales distribution or such manufacturing premises.

D. BRIDGES, TUNNELS AND OTHER INSTRUMENTALITIES OF TRANSPORTATION AND COMMUNICATION (Bridges and Tunnels "Filed;" all other risks hereunder "Non-Regulated").

No policy shall be issued hereunder where the perils of Fire and Extended Coverage are the only hazards to be covered; provided further that in all cases policies shall exclude buildings, office furniture, and supplies held in storage therein. Policies covering piers, wharves, docks and slips shall exclude the hazards of Fire and Extended Coverage. Other aids to navigation and transportation, including dry docks and marine railways may be covered against any and all risks. Property insured hereunder may include, but is not necessarily limited to:

1. (a) Pipelines, including on-line propulsion, regulating and other equipment appurtenant to such pipelines, but excluding all property at manufacturing, producing, refining, converting, treating or conditioning plants.

(b) Power transmission and telephone and telegraph lines, excluding all property at generating, converting or transforming station, sub-stations and exchanges.

2. Radio and Television Communication Equipment in commercial use as such, including towers and antennae, auxiliary equipment, electrical operating and control apparatus and other property directly used for transmitting and/or receiving.

3. Outdoor cranes, loading bridges and similar equipment used to load, unload and transport.

E. OTHER INLAND MARINE RISKS

1. Accounts Receivable. (Filed)

2. Agricultural Machinery and Equipment (Excluding Dealers). (Filed)

3. Bailee Customers Policies (Fire and E.C.) Covering property in the custody of bleacheries, throwsters, fumigatories, dyers, cleaners, laundries, needle-workers and other bailees for the purpose of storage or performing work thereon. Such policies shall include coverage while in transit but shall not cover bailee's property at his premises.

4. Block Policies (Filed)

Block Policies presently approved under this section are:

(1) Camera Dealers, (2) Commercial Property Policy, (3) Commercial Block Policy, (4) Equipment Dealers, (5) Furriers Block, (6) Heating and Air Conditioning Equipment, (7) Household Appliance Dealers, (8) Jewelers Block, (9) Marine Supplies, (10) Merchants Property Policy, (11) Musical Instruments Dealers, (12) Office Machinery and Supplies, (13) Professional and Scientific Instruments Dealers, and (14) Sporting Goods Dealers.

5. Cold Storage Locker Plant Policies (Fire and E.C.) Covering merchandise of customers such as meats, game, fish, poultry, fruit, vegetables, and property of a similar nature.

6. Cotton Buyers Transit Policies. (Filed)

7. Domestic Bulk Liquids Policies. (Non-Regulated) Covering domestic bulk liquids stored in tanks provided the risks of Fire and Extended Coverage are excluded therefrom.

8. Exhibition Policies covering property while on exhibition and in transit to or from such exhibition. (Non-Regulated)

9. Film Floaters, including builders' risk during the production and coverage on completed negatives and positives and sound records. (Filed)

10. Fine Arts Policies covering objects of art such as pictures, statuary, bronzes, and antiques, rare manuscripts and books, articles of virtu, etc.

(a) Private Collection. (Filed)

(b) Dealers. (Fire and E.C.)

11. Floor Plan Policies. (Filed) 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) Such merchandise is specifically identifiable as encumbered to the bank or lending institution.

(b) 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.

(c) That such policies cover in transit and do not extend beyond the termination of the dealer's interest provided 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 institution.

12. Furriers' Customers Policies. (Filed) Policies under which certificates or receipts are issued by furriers or fur storers covering specified articles, the property of customers.

13. Garment Contractors Floaters. (Filed)

14. Government Service Floaters. (Non-Regulated)

15. Home Freezers and contents against loss resulting from power failure and/or mechanical breakdown. (Non-Regulated)

16. Horse and Wagon Floaters. (Filed)

17. Installation Risks or Builders' Risks. (Fire and E.C.) Covering loss to owner, seller or contractor on account of physical damage to machinery, equipment, building materials or building supplies being used with and during the course of installation, testing, building, renovating or repairing of dwelling, commercial, or industrial construction. 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. In no event shall any policy cover such properties while contained in stock of merchandise held for sale to the public by dealers and such coverage shall be limited to Installation Risks or Extended Coverage are to be insured. If written for account of the 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.

18. Installment Sales, Leased Property, and Deferred Payment Policies (Non-Regulated) Covering the interest of vendor, mortgagee, and leasor in property sold under Installment Sales, Contract, Partial or Deferred Payment Contract, or leased. Such policies must include coverage while in transit and may be extended to include the interest of the vendee, mortgagor, or leasee but in no event shall the policy cover beyond termination of the vendor's, mortgagee's or lessor's interest.

19. Live Animal Floaters as follows:

(a) Cattle kept for feeding, dairy, breeding or show purposes. Sheep, Swine, Horses and Mules, except horses and mules used exclusively for racing or show including breeding therefor. (Filed)

(b) Range cattle and range sheep while on ranges; Horses or mules used exclusively for racing or show including breeding therefor; Livestock while being transported to or from or while at stockyards; Policies issued to Assureds conducting sales or auction, covering livestock of others for public sale; Livestock insured under "Mortality Policies" covering, among other perils, against death or destruction due to natural causes. Livestock of circus, carnival or theatrical enterprises; Policies issued to veterinarians and humane societies to cover livestock of others in their custody or control for professional purposes. (Non-Regulated)

20. Mobile Equipment and Miscellaneous Movable Property (Non-Regulated) e.g. contractors' equipment, industrial and other special equipment not primarily designed for highway use, mechanical sales devices, storage batteries, stevedores, divers' equipment, undertakers' equipment, outboard boats and motors, parachutes, and balloons. Scientific and surveyors' instruments, articles for sport and recreation, musical scores and orchestrations and all other similar movable and identified property not on sale or consignment, or in the course of manufacture, which has come into the custody and/or control of parties who intend to use such property for the purpose for which it was manufactured or created.

Such policies shall not include coverage of storage risks at premises of the assured, except where incidental to the regular use of the equipment or property away from the premises.

21. Musical Instrument Floaters. (Radios, televisions, record players, and combinations thereof are not deemed musical instruments.) (Filed)

22. Nuclear Insurance. (Non-Regulated) Insurance against loss resulting from physical damage (including risks in course of construction) to:

(a) Designated nuclear facilities, including property associated therewith and subject to radiation damage therefrom;

(b) Other property directly related to such nuclear facilities; and

(c) Other facilities involving substantial quantities of radiation.

23. Oil and Gas Lease Property. (Filed)

24. Pattern and Die Floaters, excluding coverage on the owner's premises. (Non-Regulated)

25. Personal Effects Floaters. (Filed)

26. Personal Fur Floaters. (Filed)

27. Personal Jewelry Floaters. (Filed)

28. Personal Property Floaters. (Filed)

29. Physicians' and Surgeons' Equipment Floaters (excluding dealers). (Filed)

30. Radium Floaters. (Filed)

31. Rolling Stock. (Filed)

32. Salesmen's Samples Floaters. (Non-Regulated)

33. Sign and Street Clock Policies, covering neon signs, automatic or mechanical signs, street clocks, while in use as such. (Filed)

34. Silverware Floaters. (Filed)

35. Stamp and Coin Floaters.

(a) Private Collection. (Filed)

(b) Commercial Risks. (Fire and E.C.)

36. Theatrical Floaters, excluding building and their improvements and betterments and furniture and fixtures that do not travel about with theatrical troupes. (Filed)

37. Tourists' Floaters. (Filed)

38. Travel Baggage. (Non-Regulated)

39. Valuable Papers and Records. (Filed)

40. Wedding Present Floaters for not exceeding ninety (90) days after the date of the wedding. (Filed)

41. Wool Growers and Wool Buyers Floater Policies, covering property usual to the conduct of the assured's business while in transit and all other situations customary and incidental thereto: (Non-Regulated)

April 20, 1954

INLAND MARINE BULLETIN #109

BOAT TRAILERS

TO ALL INSURANCE COMPANIES WRITING INLAND MARINE INSURANCE:

Gentlemen:

On September 30, 1950, an Inland Marine Bulletin was issued to all companies stating that insurance on Boat Trailers should not be written as an Inland Marine coverage in this state. This Bulletin gave notice that this type of insurance was subject to the Automobile Rating Law, Article 4682b, Revised Civil Statutes, (present Article 5.01, Texas Insurance Code).

We again call this to your attention and request that Inland Marine policies covering Boat Trailers be canceled, not later than fifteen days from the date of this Bulletin. All companies are urged to exercise due care in the writing of this type of insurance in future cases. This is applicable only to Boat Trailers and shall not interfere with the present custom of insuring outboard boats or motors under an Inland Marine policy.

We ask your cooperation.

September 16, 1959

INLAND MARINE BULLETIN #1959-12

GRAIN POLICIES (INCLUDING RICE

TO ALL INSURANCE COMPANIES LICENSED TO WRITE INLAND MARINE INSURANCE

Gentlemen:

Apparently some confusion exists with respect to Inland Marine grain storage policies written under Section 3. 3 (Bailee Customers) of the Texas Inland Marine Definition.

First, a bona fide transit exposure must actually exist for any such risk to qualify as Inland Marine insurance, therefore, any risk which is not in fact subject to such exposure is ineligible, and any Inland Marine policy insuring any such ineligible risk shall be canceled immediately.

Secondly, policies written to cover risks which may be eligible by virtue of an actual transit exposure shall, in all instances, be subject to a premium charge in excess of the premium which would be produced by the application of published Fire and Extended Coverage rates over the same period of time for which the Inland Marine policy is written. If the Fire and Extended Coverage is not eligible for term discount, then such term discount may not be used in computing the Inland Marine premium below the combined Fire and Extended Coverage premium. As an example, if a risk may not be written for longer then one year under a Fire and Extended Coverage policy, and a three-year Inland Marine policy is to be written, then the premium for such Inland Marine policy must be in excess of three combined annual Fire and Extended Coverage premiums. Any Inland Marine policy written in conflict with this provision must be amended immediately.

Third, the property of the insured may not be covered at his premises under any such form of Inland Marine coverage.

All companies will be held responsible for strict compliance with this Bulletin.

December 8, 1959

INLAND MARINE BULLETIN #1959-19

GRAIN POLICIES (Including Rice)

TO COMPANIES, GENERAL AGENTS, et al:

Gentlemen:

Pursuant to a public hearing of November 10, 1959, before the State Board of Insurance, please accept notice that the following directives are applicable immediately with respect to Inland Marine policies insuring grain and rice storage risks:

1. A bona fide transit exposure must actually exist for any such risk to qualify as Inland Marine insurance; therefore, any risk which is not in fact subject to such exposure is ineligible, and any Inland Marine policy insuring any such ineligible risk shall be canceled immediately.

2. The premium charge must in excess of Fire and Extended Coverage premiums in all cases. Term privileges for the Fire and Extended Coverage portion of the policy are not applicable to policies attaching prior to December 10, 1959, with the exception of Fireproof, Semi-Fireproof, or Sprinklered risks; therefore, term privileges are prohibited in computing the Inland Marine premium for all other risks if the use of such term privileges reduces the Inland Marine premium below the Fire and Extended Coverage premium for the same policy period. Any Inland Marine policy in conflict with this provision shall be canceled immediately by the company in accordance with the cancellation provisions of the policy.

All Inland Marine policies insuring grain and rice storage risks and attaching on and after December 10, 1959, will be eligible for the customary three-year or five-year Fire and Extended Coverage term privileges regardless of building construction; however, this shall not be deemed to waive any requirement that the Inland Marine premium must continue to be in excess of applicable Fire and Extended Coverage premiums for the same policy period in all cases.

3. The property of the insured may not be covered at his premises under this form of Inland Marine policy.

All companies will be held responsible for strict compliance with this Bulletin.

August 5, 1963

INLAND MARINE BULLETIN #63-2

COTTON TRAILERS

TO COMPANIES, GENERAL AGENTS, et al:

Gentlemen:

During the past several years, companies have customarily written Inland Marine policies for the account of cotton ginners to insure against loss of, or damage to, cotton while in the actual or constructive custody of the ginner. In connection therewith, the matter of insuring seed cotton trailers under the same policies has been presented for consideration.

In the interests of uniformity of interpretation and insuring practices, please be advised that seed cotton trailers (which are the property of others and are in the care, custody, or control of the ginner) may also be insured as of this date for account of the ginner as an optional Inland Marine coverage, either by inclusion in the Inland Marine cotton policy or by endorsement thereon.

This shall not in any manner act to prohibit the insuring of such trailers under Automobile policies as in the past, when deemed appropriate in accordance with company underwriting procedure.

February 6, 1968

INLAND MARINE BULLETIN #68-3

INSTALLMENT SALES, DEFERRED PAYMENT OR LEASE

AGRICULTURAL MACHINERY, IMPLEMENTS & EQUIPMENT

TO COMPANIES, GENERAL AGENTS, et al:

Gentlemen:

Henceforth, all Agricultural Machinery, Implements, and other Agricultural Equipment may be insured under Inland Marine policies covering lawful and insurable interests after sale of such property under Installment Sales Contract, Partial or Deferred Payment Contract, or after lease or rental to others.

These policies shall in all respects be subject to the provisions of Section E. 18 of the Texas Definition of Inland Marine Insurance to the same extent as other policies covering various other properties customarily insured subject to these provisions of the Definition; provided, however, that stocks of Agricultural Machinery, Implements, and Equipment presently insured under Automobile Form 7 "MACHINERY DEALERS' ENDORSEMENT" may not be insured under the Inland Marine policies herein referred to on a dual interest basis, or otherwise, to cover the interest of dealers of lessors in such properties until after sale, lease, or rental to others.

This shall not prohibit the issuance of other Inland Marine policies insuring property of dealers or lessors only in transit away from their respective premises.

STATE BOARD OF INSURANCE

Paul D. Connor, Chief Clerk to the Board

January 15, 1976

INLAND MARINE BULLETIN #76-1

TEXAS DEFINITION OF INLAND MARINE INSURANCE

TO COMPANIES, GENERAL AGENTS, et al:

Gentlemen:

Effective February 16, 1976, Section E. 4 of the Texas Definition of Inland Marine Insurance will be amended as follows:

4. Block Policies (Filed)

Block Policies presently approved under this section are:

(1) Camera Dealers, (2) Equipment Dealers, (3) Furriers Block, (4) Jewelers Block, (5) Musical Instruments Dealers.

Approval of all other policies will be withdrawn as of February 16, 1976.

Page 6 of the Definition listing Section E. 4, as amended, is enclosed.

COMMISSIONER OF INSURANCE BY:

Kenneth Bidgood, Director, Inland Marine Property Division