Topics covered:

Introduction Insuring agreement Property not covered Causes of loss Collapse Exclusions Limits of insurance and deductible Conditions

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.

Rules governing eligibility are in the commercial lines manual (CLM). 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.