28 Tex. Admin. Code § 5.5008

Current through Reg. 49, No. 49; December 6, 2024

Section 5.5008 - Inland Marine Insurance - Other Inland Marine Risks

Other inland marine risk definitions and classifications follow.

(1) Accounts receivable (non-filed).

(2) Agricultural machinery and equipment. These risks include:

(A) personal risks (filed); and

(B) dealers and other commercial risks (non-filed).

(3) Bailee customers policies (non-filed). These policies cover property in the custody of bleacheries, throwsters, fumigatories, dyers, cleaners, laundries, needle workers, and other bailees for the purpose of storage or performing work on the property. The policies may include coverage while in transit but may not cover the bailee's property at the bailee's premises.

(4) Block policies. These risks include:

(A) camera dealers (non-filed);

(B) equipment dealers (non-filed);

(C) furrier's block (non-filed);

(D) jeweler's block (non-filed); and

(E) musical instrument dealers (non-filed).

(5) Builders' risks or installation risks (non-filed). These policies cover loss to the owner, seller, or contractor due to 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.

(A) Policies may cover property designated for and awaiting specific installation, building, renovating, or repairing while the property is at points or places where work is being performed, in transit, or in temporary storage or deposit.

(B) Policies may not cover property while it is part of merchandise held by dealers for public sale.

(C) Coverage must be limited to builders' risks or installation risks if a policy insures perils in addition to fire and extended coverage.

(D) If a policy is written for an owner, coverage must end when the work is completed and accepted.

(E) If a policy is written for a seller or contractor, coverage must end when the interest of the seller or contractor ends.

(6) Cold storage locker plant policies (non-filed). These policies cover merchandise of customers such as meats, game, fish, poultry, fruit, vegetables, and similar property.

(7) Cotton buyers transit policies (non-filed).

(8) Domestic bulk liquids policies (non-filed). These policies cover domestic bulk liquids stored in tanks, but do not include fire and extended coverage.

(9) Electronic Equipment Protection Policy (filed for personal risks; non-filed for commercial risks).

(A) These policies can cover:

(i) electronic equipment, including data processing equipment and components, connections, extensions, and systems;

(ii) electronic media, including converted data; and

(iii) extra expense incurred to continue normal operations that are interrupted as a result of an insured loss.

(B) A policy must cover the property while in transit.

(C) Insurance for "portable electronic devices," as described in Insurance Code § 4055.251, concerning Definitions, is also subject to the provisions of Insurance Code Chapter 551, Subchapter E, concerning Portable Electronics Insurance, and Chapter 4055, Subchapter F, concerning Portable Electronic Vendor License.

(10) Exhibition policies covering property while on exhibition and in transit to or from an exhibition (non-filed).

(11) Film floaters, including builders' risk during the production and coverage of completed negatives and positives and sound records:

(A) personal risks (filed); and

(B) commercial risks (non-filed).

(12) Fine arts policies covering objects of art such as pictures, bronzes, antiques, rare manuscripts and books, and articles of virtu:

(A) private collections (filed); and

(B) dealers and other commercial risks (non-filed).

(13) Floor plan policies (non-filed). These policies cover property for sale while in possession of dealers under a floor plan or any similar plan under which the dealer borrows money from a lending institution to pay the manufacturer.

(A) The merchandise must be specifically identifiable as encumbered to the lending institution.

(B) The dealer's right to sell or otherwise dispose of the merchandise must be conditioned upon the lending institution releasing the merchandise from encumbrance.

(C) These policies must cover the merchandise in transit and not extend beyond termination of the dealer's interest.

(D) These policies may not cover merchandise for which the collateral is the dealer's stock or inventory, as distinguished from merchandise specifically identifiable as encumbered to the lending institution.

(14) Furriers' customers policies (non-filed). These policies cover specified articles of customers' property for which furriers or fur storers issue certificates or receipts.

(15) Garment contractors floaters (non-filed).

(16) Government service floaters (non-filed).

(17) Home freezers and freezer contents (non-filed). These policies cover against loss resulting from power failure or mechanical breakdown.

(18) Live animal floaters. These risks include:

(A) cattle kept for feeding, dairy, breeding, or show purposes; sheep; swine; and horses and mules (except horses and mules used exclusively for racing, show, or breeding for racing or show):

(i) personal risks (filed); and

(ii) commercial risks (non-filed);

(B) range cattle and range sheep while on ranges (non-filed);

(C) horses or mules used exclusively for racing, show, or breeding for racing or show (non-filed);

(D) livestock while being transported to or from stockyards or while at stockyards (non-filed);

(E) policies issued to insureds conducting sales or auctions, covering others' livestock for public sale (non-filed);

(F) livestock insured under mortality policies that cover, among other perils, death or destruction due to natural causes (non-filed);

(G) livestock of circus, carnival, or theatrical enterprises (non-filed); and

(H) policies issued to veterinarians and humane societies to cover others' livestock in their custody or control for professional purposes (non-filed).

(19) Mobile equipment and miscellaneous movable property (non-filed).

(A) These policies cover contractors' equipment, industrial and other special equipment not primarily designed for highway use, mechanical sales devices, storage batteries, stevedores' equipment, divers' equipment, undertakers' equipment, outboard boats and motors, parachutes, balloons, scientific and surveyors' instruments, articles for sport and recreation, musical scores and orchestrations, or all other similar movable and identified property.

(B) These polices do not cover any equipment or property:

(i) on sale or consignment; or

(ii) that, in the course of manufacture, has come into the custody or control of parties who intend to use the equipment or property for the purpose for which it was manufactured or created.

(C) These policies may not cover storage at the insured's premises, except where storage is incidental to the regular use of the equipment or property away from the premises.

(20) Musical instrument floaters. For purposes of this section, "musical instrument" does not include music-playing equipment like radios, televisions, CD or record players, MP3 players, and streaming devices:

(A) personal risks (filed); and

(B) commercial risks (non-filed).

(21) Nuclear insurance (non-filed). These policies cover loss resulting from physical damage (including risks in the course of construction) to:

(A) designated nuclear facilities, including property associated with the facilities and subject to radiation damage from them;

(B) other property directly related to the nuclear facilities; and

(C) other facilities involving substantial quantities of radiation.

(22) Oil and gas lease property (non-filed).

(23) Pattern and die floaters, excluding coverage on the owner's premises (non-filed).

(24) Personal property floaters (filed). These policies include floaters for personal effects, personal fur, personal jewelry, and other personal property.

(25) Pet insurance (non-filed). Individual or group insurance policies covering veterinary expenses for pet illness or injury.

(26) Physicians' and surgeons' equipment floaters (non-filed).

(27) Radium floaters (non-filed).

(28) Rolling stock used on a railway system (non-filed). Coverage may be provided on an all-risk basis or named peril basis. Coverage must include fire, collision, derailment, overturn, strikes, and riots.

(29) Salespersons' samples floaters (non-filed).

(30) Sign and street clock policies (non-filed). These policies cover neon signs, automatic or mechanical signs, and street clocks, while in use.

(31) Silverware floaters:

(A) personal risks (filed); and

(B) commercial risks (non-filed).

(32) Stamp and coin floaters:

(A) private collections (filed); and

(B) commercial risks (non-filed).

(33) Self-service storage customer floaters (filed for policy forms and endorsements; non-filed for rates). These policies may be issued to a tenant of a self-service storage facility to cover property stored at the facility.

(A) For purposes of this paragraph, the terms "self-service storage facility" and "tenant" have the meanings prescribed by Property Code § 59.001, concerning Definitions.

(B) Coverage is limited to property in storage for the perils listed in the policies, which must include coverage for property while in transit.

(C) Coverage may not be provided for any motor vehicles subject to motor vehicle registration and inspection.

(D) Policies may not cover property stored in:

(i) any facility where the lessor issues a warehouse receipt, bill of lading, or other document of title relating to the stored property; or

(ii) facilities other than storage facilities that have multiple storage units.

(34) Theatrical floaters (non-filed). These policies may not include coverage for buildings, improvements, betterments, and furniture and fixtures that do not travel with theatrical troupes.

(35) Travel insurance (filed), as described in Insurance Code Chapter 3504, concerning Travel Insurance.

(36) Valuable papers and records. These risks include:

(A) personal risks (filed); and

(B) commercial risks (non-filed).

(37) Wedding present floaters (non-filed).

(38) Wool growers and wool buyers floaters (non-filed). These policies cover property usual to the insured's business while in transit and all other situations customary and incidental to transit.

28 Tex. Admin. Code § 5.5008

Adopted by Texas Register, Volume 48, Number 21, May 26, 2023, TexReg 2725, eff. 6/4/2023