1. Inland Marine Insurance Considerations for Compliance New England AICP E-Day May 9, 2008 ● Durham, N.H. Joseph S. Harrington, CPCU, ARP Director, Corporate Communications American Association of Insurance Services
1745 So. Naperville Road | Wheaton, IL
Phone: AAIS ●

2. AAIS and Inland Marine A long history Filed inland marine programs
Mutual Marine Conference
Transportation Insurance Rating Bureau
1975: American Association of Insurance Services
Multi-line advisory organization
23 personal, commercial, farm, and inland marine programs
Filed inland marine programs
Commercial Inland Marine
Personal Inland Marine
Farm Inland Marine
Inland Marine Guide for nonfiled classes
Forms, rating procedures, underwriting guidelines
Used by 200 insurers, inc. major national carriers

3. The nature of the line “Inland Marine”: A contradiction in terms?
Departure from ocean (“wet”) marine
Custody of insured property
Competition with “fire” insurance
Less regulated rates
More “all risk” policies
The Nationwide Definition, 1933; last updated 1976
Imports and exports
Domestic shipments
Instrumentalities of transportation and communication
Specified household property (jewelry, furs, etc.)
Specified business property (mobile equipment, property under bailment, etc.)

4. The nature of the line, cont.
Risks where change is constant
Transportation from region to region
Use of equipment under different conditions
Buildings in the process of being constructed
Portable property that moves about, or “floats”
Electronic data in constant flux
Liability insured as property
Bailees, motor truck cargo, warehouse operators
Property owner gives custody to the insured
Insurer often has a right, not an obligation, to assist defense of claim

5. Inland marine “classes”
A line of many lines, called “classes”
What makes a “class”?
A distinct policy form
A distinct procedure for rating
Fields for data capture in stat plans
Filed vs. “nonfiled” classes
An evolution in practice and expectation
How many homogenous exposures?
How many unique exposures?

6. Why file the ‘nonfiled’ classes?
AAIS advocates nonfiled status
Many states do not exempt inland marine
Companies required to file
Companies asked AAIS to file
States asked AAIS to file

7. The Inland Marine Guide filing
Forms in 24 states
Filed on behalf of companies that grant AAIS filing authorization
Rating procedures in five states
Filed on an advisory basis
Companies must take additional filing action
Only in states that expressly require filing
Only classes expressly required to be filed

8. joeh@AAISonline.com 800-564-AAIS www.AAISonline.com
Thank You
AAIS