Kansas Insurance Department
K.A.R. 40-3-22. Marine, inland marine, and
transportation insurance. (a) Risks and coverage that may be
classified under
(b) Unless
otherwise permitted, marine, inland marine, and transportation insurance shall
not insure any of the following:
(1) Storage
of insured's merchandise, unless specially permitted by this regulation;
(2) merchandise
during manufacture that is the property of the manufacturer and is on the manufacturer's
premises;
(3) furniture
and fixtures, or other improvements to buildings; or
(4) money
and securities stored in safes, vaults, and safety deposit vaults at any bank,
or on the insured's premises, except while being transported.
(c) Any
marine, inland marine, or transportation policy may insure the following:
(1) Imported
property wherever located, if the coverage includes risks of transportation.
Property shall qualify for coverage as an import if the property maintains its
separate identity and has not become mixed with other property in general
commerce until one of the following occurs:
(A) The
property is sold or delivered by the importer;
(B) the
property is taken from its place of storage and put on sale as part of the
importer's stock in trade at any sale or distribution point; or
(C) the
property is delivered for manufacture, processing, or change in form;
(2) exported
property wherever located, if the coverage includes risks of transportation.
Property shall qualify for coverage as an export if it meets the following
conditions:
(A) Is
designated for export or is being prepared for export; and
(B) has
not been diverted for domestic trade;
(3) a
domestic shipment that begins and ends within the
(A) Property
on consignment while it is:
for
sale or distribution;
for
exhibit, trial, approval, or auction;
in
transit; in the custody of others; or being returned. Coverage shall not apply to property while on
any premises owned, leased, or operated by the consignor;
(B) property
that is not on consignment, except under either of the following conditions:
(i) The
property is on any manufacturing premises; or
(ii) the
property has arrived at any premises owned, leased, or operated by the insured
or purchaser;
(4) an
instrumentality of transportation or communication, excluding buildings and
their improvements, furniture, furnishings, ordinary contents, and stored
supplies. Instrumentalities of transportation or communication shall include the
following:
(A) Bridges,
tunnels, and similar transportation facilities, including their auxiliary
structures and equipment;
(B) piers,
wharves, docks, slips, dry docks, and marine railways;
(C) pipelines,
including on-line propulsion, regulating, and other related appurtenant
equipment and excluding property at manufacturing, producing, refining,
converting, treating, or conditioning plants;
(D) power
transmission lines or telephone and telegraph lines, excluding all property at
generating, converting, or transforming stations, substations, and exchanges;
(E) radio
and television communication equipment, including towers and antennae with
their auxiliary equipment and appurtenant electrical operating and control
apparatus; and
(F) outdoor
cranes, loading bridges, or similar equipment used for loading, unloading, and
transport;
(5) a
policy for an individual, including the following:
(A) A
personal effects policy;
(B) a
personal property policy;
(C) a
government service policy;
(D) a
personal fur policy;
(E) a
personal jewelry policy;
(F) a
wedding present policy, for up to 90 days after the wedding day;
(G) a
silverware policy;
(H) a
fine art policy, insuring paintings, etchings, pictures, tapestries, art glass
windows, and other works of art that are rare or that have historical value or
artistic merit;
(I) a
stamp and coin policy;
(J) a
musical instrument policy. “Musical instrument” shall not include a radio,
television, or record player, or any combination of these items;
(K) a
mobile articles policy covering identified property of a mobile nature common
to a household. A floater shall not cover furniture and fixtures that are
customarily used on the premises where the property is usually kept;
(L) a
machinery and equipment policy, except for policies covering motor vehicles,
auto homes, trailers, or semitrailers designed for highway use. Trailers or semitrailers
hauled by a tractor not designed for highway use may be covered under this
policy, however;
(M) an
installment sales and leased property policy covering property, except for
motor vehicles designed for highway use, that is in transit and meets either of
the following conditions:
(i) Is
sold under a conditional contract of sale, partial payment contract, or
installment sales contract; or
(ii) is
leased. This policy shall not cover beyond the termination of seller's or
lessor's interest in the property; or
(N) a
live animal policy; or
(6) a
commercial property policy for business or professions, including the following:
(A) A
radium policy;
(B) a
physicians' and surgeons' instrument policy. The policy may also cover
furniture, fixtures, and the insured's interest in improvements to buildings
located in those portions of the premises occupied by the insured for
professional purposes;
(C) a
pattern and die policy;
(D) a
theatrical policy. However, the policy
shall not cover buildings and their improvements and furniture and fixtures
that do not travel with theatrical troupes;
(E) a
film policy covering either of the following:
(i) A
film during production; or
(ii) a
completed negative, positive, and sound recording;
(F) a
salesmen's samples policy;
(G) an
exhibition policy covering property while on exhibition and while in transit to
or from an exhibition;
(H) a
live animal policy;
(I) a
builders' risk or installation risk policy, covering machinery, equipment,
building materials, or supplies being used with and during installation, testing,
building, renovating, or repairing. A policy may cover property designated for
and awaiting specific installation, building, renovating, or repairing under
any of the following conditions:
(i) While
at a point or place where work is being performed;
(ii) while
in transit; or
(iii) during
temporary storage or deposit. The policy shall cover against perils in addition
to fire and extended coverage perils. Coverage shall cease when an insured
owner completes and accepts the building or installation and the insured seller’s
or contractor's interest ceases;
(J) a
mobile articles policy covering identified property of a mobile nature that is
in the custody or control of a party who intends to use the property for its
manufactured or created purpose. The policy shall not cover furniture and
fixtures that are not customarily used away from the premises where the
property is usually kept;
(K) a
machinery and equipment policy, except for a motor vehicle or snow plow
designed for highway use, an auto home, or a trailer or semitrailer unless
hauled by a tractor not designed for highway use;
(L) a
bailment policy covering property in the custody of any bailee and while in
transit to or from the bailee. Any
bailment policy may include coverage that will indemnify the owner of the
property for loss from specific perils subject to approval by the commissioner
of insurance pursuant to K.S.A. 40-216(a) and amendments thereto. The
application of an additional or separate charge for the indemnity coverage
shall not constitute the transaction of the business of insurance if the charge
does not exceed the premium approved by the commissioner and the bailee and if
the bailee's employees or other organizations receive no compensation or other
valuable consideration for performing the administrative tasks associated with
the insurance coverage. The policy
shall not insure property if either of the following conditions is met:
(i) The
property is owned by the bailee at the bailee's premises; or
(ii) the
property is in the custody of any bailee owned, controlled, or operated by the
bailor;
(M) an installment sales and leased property
policy covering property, except a motor vehicle designed for highway use, that
is in transit and meets either of the following conditions:
(i) Is
sold under a conditional contract of sale, partial payment contract, or
installment sales contract; or
(ii) is
leased. The policy shall not cover any point beyond the termination of the
seller's or lessor's interest in the property and shall not cover machinery and
equipment subject to certain “lease-back” contracts. A “lease-back” contract shall mean a contract,
expressed or implied, under which the property is purchased by the lessor for
the benefit and use of the lessor. This provision shall not apply to
“lease-back” contracts involving machinery and equipment for which marine or
inland marine coverage is otherwise permitted by this definition while the
machinery and equipment are in the custody of the lessee;
(N) a
garment contractors policy;
(O) a
furrier or fur storer policy covering specified articles belonging to a
customer for which the furrier or fur storer issues a certificate or receipt to
the customer;
(P) an
accounts receivable policy and valuable papers and records policy;
(Q) a
floor plan policy covering property for sale, except for an automobile or other
motor vehicle designed for highway use, while in transit and while in
possession of any dealer under a plan by which the dealer borrows money from a
bank or lending institution with which to pay the manufacturer. In addition, the
following requirements shall be met:
(i) The
property shall be specifically identifiable as encumbered to the bank or
lending institution;
(ii) the
dealer's right to sell or otherwise dispose of the property shall be
conditioned upon its being released from encumbrance by the bank or lending
institution; and
(iii) the
policy shall not cover any point beyond the termination of the dealer's
interest in the property;
(R) a sign
and street clock policy. The policy may include insurance of a neon sign, an
automatic or mechanical sign, and a street clock while in use.;
(S) a
fine art policy for the account of a museum, gallery, university, business,
municipality, or other similar interest, covering paintings, etchings,
pictures, tapestries, art glass windows, and other works of art that are rare
or have historical value or artistic merit;
(T) a
dealers policy insuring a dealer in personal property that may be covered
specifically under an inland marine policy by the ultimate purchaser. A policy
under this paragraph may cover money stored in locked safes or vaults on the
insured's premises, furniture, fixtures, tools, machinery, patterns, molds,
dies, and the insured's interest as a
tenant in improvements to buildings. This policy may include the following:
(i) Any
musical instrument dealer covering property consisting principally of musical
instruments and their accessories. Musical instruments shall not include
radios, televisions, record players, and any combinations of these items;
(ii) any
camera dealer covering property consisting principally of cameras and their
accessories;
(iii) any
fur dealer covering property consisting principally of furs and fur garments;
(iv) any
equipment dealer covering mobile agricultural and construction equipment and
accessories, except for motor vehicles designed for highway use;
(v) any
stamp or coin dealer covering property of a philatelic or numismatic nature;
(vi) any
jeweler's block; and
(vii) any
fine art dealer;
(U) a woolgrower’s policy;
(V) a
domestic bulk liquid policy, covering tanks and domestic bulk liquids stored in
them;
(W) a
difference-in-conditions policy. The policy shall not insure against fire and
extended coverage perils; and
(X) any
electronic data processing policy. (Authorized by K.S.A. 40-103; implementing
K.S.A. 40-901; effective Jan. 1, 1966; amended Jan. 1, 1967; amended May 1,
1986; amended Jan. 6, 1992; amended March 17, 2006.)