Domestic shipments (non-filed).
(1) Inland marine policies may cover domestic shipments
on consignment while in transit.
(A) Domestic shipments on consignment for sale or distribution
for account of the consignor may be covered with no restriction as
to time in storage or deposit. The shipments may be covered while
in the custody of others. Coverage may also include return shipments.
Coverage may not extend to premises owned, leased, or controlled by
the consignor.
(B) Domestic shipments on consignment for sale or distribution
for account of the consignee may be covered while in the custody of
others and may include return shipments. Coverage may extend to premises
owned, leased, or controlled by the consignee for no more than 120
days. If coverage is issued jointly to consignee and consignor, the
same 120-day limitation applies to the consignee's interest.
(C) Domestic shipments on consignment for account of
the consignor or consignee for exhibition, trial, approval, or auction
may be covered with no restriction as to time in storage or deposit
or on exhibition. The shipments may be covered while in the custody
of others. Coverage may also include return shipments.
(2) Inland marine policies may cover domestic shipments
not on consignment while in transit.
(A) Domestic shipments not on consignment may be covered
without restriction as to time in storage or deposit while at premises
of transportation companies or freight forwarders. A "freight forwarder"
is a warehouse or transportation business that takes custody of the
property of others for storage and transport either by schedule or
upon call.
(B) Domestic shipments limited to used furniture and
fixtures or used household furniture may be covered without restriction
as to time in storage or deposit while in transit and awaiting determination
or availability of the final destination. These policies may not cover
the property after delivery to the final destination and may not include
merchandise held for sale.
(C) In all other situations, domestic shipments not
on consignment may be covered for not more than 120 days at any place
of storage or deposit operated by the insured. Coverage at points
of sales distribution or at the manufacturing premises of the insured
may be written without restriction of time in storage. Policies may
not include fire and extended coverage at points of sales distribution
or manufacturing premises.
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