Flashcards in Inland Marine Insurance Deck (7)
Floater: Inland marine floaters generally covered loss from “all risks” of direct physical loss, except for some specific excluded perils, such as...
gradual deterioration, moths, vermin, and inherent vice.
Personal Inland Marine Insurance: Although policies vary, they generally provide coverage that... (5)
•is tailored to a specific type of covered property;
•provides the amount of insurance desired;
•is broader than other types of coverage;
•covers insured property anywhere in the world; and
•in many cases, has no deductible.
The personal articles floater provides coverage that is available in a separate policy or in an endorsement to a homeowners insurance policy. ISO provides two forms. Which are:
The Personal Articles Agreed Value Loss Settlement Form (PM 00 10)
and the Personal Articles Standard Loss Settlement Form (PM 00 09)
Personal Articles Agreed Value Loss Settlement Form (PM 00 10) provides agreed value loss settlement provisions for any articles of personal property insured in the floater. In other words:
it pays the full agreed amount specified in the schedule, regardless of what an appraisal might show.
Personal Articles Standard Loss Settlement Form (PM 00 09) form does not provide agreed value loss settlement. Rather, for most types of property, the insurer agrees to pay the lowest of
•the cost of repairing the item,
•the item’s actual cash value,
•the item’s replacement cost, or
•the applicable policy limit.
As is true of property insurance in general, payment of a claim will not reduce the limit of insurance. The only exception is when
there is a total loss to a scheduled item of property.