Section 2321 - 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 entrusted to a factor or agent to be held in the care of the factor or agent, or under the control of the factor or agent 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 C.I.F. 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 article 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 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 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, not 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 are the only hazards to be covered. Piers, wharves, docks and slips, excluding the risks of 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 ninety (90) days after the date of the wedding.(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.(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 the assured's 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 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 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;(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 the bailee's 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 for 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, Telephones, recordplayers 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 therefor; construction equipment consisting of bulldozers, roadscrapers, tractors, compressors, pneumatic tools and similar equipment and accessories thereof; but excluding motor vehicles designed for highway use. All such policies shall exclude coverage of moneys and securities. Such policies may include coverage of tenant assured's interest in improvements and betterments of buildings,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.Cal. Code Regs. Tit. 10, § 2321
1. Amendment filed 5-31-66; effective thirtieth day thereafter (Register 66, No. 16). For prior history, see Register 61, No. 11.
2. Change without regulatory effect amending subsections (a)(1), (e)(2)(D) and (e)(2)(N)(3) filed 7-14-2021 pursuant to section 100, title 1, California Code of Regulations (Register 2021, No. 29). Filing deadline specified in Government Code section 11349.3(a) extended 60 calendar days pursuant to Executive Order N-40-20.1. Amendment filed 5-31-66; effective thirtieth day thereafter (Register 66, No. 16). For prior history, see Register 61, No. 11.
2. Change without regulatory effect amending subsections (a)(1), (e)(2)(D) and (e)(2)(N)(3) filed 7-14-2021 pursuant to section 100, title 1, California Code of Regulations (Register 2021, No. 29). Filing deadline specified in Government Code section 11349.3(a) extended 60 calendar days pursuant to Executive Order N-40-20.