Topics covered:

Introduction

Insuring agreement

Property not covered

Causes of loss

Collapse

Exclusions

Limits of insurance and deductible

Conditions

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Introduction

 A monoline floor plan coverage policy is formed by combining a Floor Plan Declarations, a Floor Plan Coverage Form, a Common Policy Conditions Form, IL 00 17 11 98, and a Commercial Inland Marine Conditions Form, CM 00 01 09 04. As with the other forms of the commercial inland marine program, the floor plan declarations and coverage form may be included with forms and endorsements of the other commercial lines programs to form a commercial package policy. The form is designed to cover merchandise for sale that has been financed.

 Rules governing eligibility are in the ISO Commercial Lines Manual. The covered property must be specifically identifiable as encumbered to the lending institution. Further, the covered property may not be sold or otherwise disposed of unless the lending institution has relinquished its claim. Generally, the items thus covered will be expensive and individually identifiable. Although once primarily used for items such as autos, with the advent of the garage policy for automobiles, use of the floor plan form spread to other expensive items such as watercraft, furnaces, and other household appliances.

 Coverage may be at specified or unspecified locations and is written on a monthly reporting basis with payments due monthly.

 Insuring Agreement

 A.Coverage

We will pay for direct physical loss of or damage to Covered Property from any of the Covered Causes of Loss.

1.Covered Property, as used in this Coverage Form, means:

a.Property at your risk specified in the Declarations; and

b.Property at your risk specifically encumbered to a secured lender named in the Declarations.

 Analysis

 At first reading, this language may cause confusion. "Property at your risk" might be understood to mean "property located at your risk" when, in reality, it means property "in which the insured retains a financial interest"—in other words, the insured's risk of financial loss. Such property may be on the insured premises, at another premises, or in transit. Separate limits may be designated for each of these, as well as for all covered property per occurrence.

 Property Not Covered

 2.Property Not Covered