{"data":{"id":"us-ky/krs-304.5-080","jurisdiction":"us-ky","citation":"KRS 304.5-080","heading":"\"Inland marine insurance,\" \"wet marine and transportation insurance,\"","body":"and \"marine protection and indemnity insurance\" defined.\n(1) As used in this chapter, \"inland marine insurance\" means marine and transportation\ninsurance that may cover or include:\n(a) 1. Imports, wherever the property may be and without restriction as to\ntime, if the coverage includes hazards of transportation.\n2. An import, as a proper subject of marine and transportation insurance,\nshall be deemed to:\na. Maintain its character if the property:\ni. Remains segregated in such a way that it can be identified;\nand\nii. Has not become incorporated and mixed with the general\nmass of property in the United States; and\nb. Have been completed when the property has been:\ni. Sold and delivered by the importer, factor, or consignee;\nii. Removed from place of storage and placed on sale as part of\nan importer's stock in trade at a point of sale or distribution;\nor\niii.  Delivered for manufacture, processing, or change in form to\npremises of the importer or of another used for any such\npurposes;\n(b) 1. Exports, wherever the property may be and without restriction as to\ntime, if the coverage includes hazards of transportation.\n2. An export, as a proper subject of marine and transpor tation insurance,\nshall be deemed to acquire its character as such when designated or\nwhile being prepared for export and retain that character unless diverted\nfor domestic trade, and when so diverted, the provisions of paragraph (c)\nof this subsection shall apply.\n3. This paragraph shall not apply to long -established methods of insuring\ncertain commodities;\n(c) 1. Domestic shipments on consignment, for sale or distribution, exhibit,\ntrial, approval, or auction, while in transit, while in the custody of\nothers, and while being returned, except in no event shall the insurance\ncover on premises owned, leased, or operated by the consignor; and\n2. Domestic shipments not on consignment, if the coverage includes\nhazards of transportation, beginning and ending with in the United\nStates, but the shipments shall not be covered:\na. At the manufacturing premises; or\nb. After arrival at premises owned, leased, or operated by an insured\nor purchaser;\n(d) Bridges, tunnels, and other instrumentalities of transportation and\ncommunication, which:\n1. Include:\na. Bridges, tunnels, and other similar instrumentalities, including\nauxiliary facilities and equipment attendant thereto;\nb. Piers, wharves, docks, slips, dry docks, and marine railways;\nc. Pipelines, including on -line prop ulsion, regulating, and other\nequipment appurtenant to the pipelines, but excluding all property\nat the manufacturing, producing, refining, converting, treating, or\nconditioning plant;\nd. Power transmission, telephone, and telegraph lines, but excluding\nall property at generating, converting, or transforming stations,\nsubstations, or exchanges;\ne. Radio and television communication equipment in use, as such,\nincluding towers, antennae with auxiliary equipment, and\nappurtenant electrical operating and control apparatus; and\nf. Outdoor cranes, loading bridges, and similar equipment used to\nload, unload, or transport; and\n2. Exclude buildings, improvements and betterments to buildings, furniture\nand furnishings, fixed contents, and supplies held in storage;\n(e) Personal property floater risks covering an individual, or generally, including:\n1. Personal effects floaters;\n2. Personal property floaters;\n3. Government service floaters;\n4.  Personal fur floaters;\n5. Personal jewelry floaters;\n6. Wedding present floaters that do not exceed ninety (90) days after the\ndate of the ceremony;\n7. Silverware floaters;\n8. Fine art floaters that cover paintings, etchings, pictures, tapestries, art\nglass windows, and other bona fide works of art that are of rarity,\nhistorical value, or artistic merit;\n9. Stamp and coin floaters;\n10. a. Musical instrument floaters.\nb. As used in this subparagraph, \"musical instrument\" does not\ninclude radios, televisions, record players, or a combination\nthereof;\n11. Mobile article, machinery, and equipment floaters that:\na. Cover identified property of a mobile or floating nature pertaining\nto or usual to a household; and\nb. Exclude:\ni. Motor vehicles designed for highway use;\nii. Auto homes, trailers, and semi -trailers, except when hauled\nby a tractor not designed for highway use; and\niii. Furniture and fixtures not customarily used away from\npremises where the property is usually kept;\n12. a. Installment sales and leased property insurance that:\ni. Covers property pertaining to a household and sold under a\nconditional contract of sale, partial payment contract,\ninstallment sales contract, or lease; and\nii. Excludes motor vehicles designed for highway use.\nb. Installment sales and leased property insurance shall cover in\ntransit, but shall not extend beyond the termination of the seller's\nor lessor's interest; and\n13. Live animal floaters; and\n(f) Commercial property floater risks that cover property pertaining to a business,\nprofession, or occupation, including:\n1. Radium floaters;\n2. Physician's and surgeons' instrument floaters, which may include\ncoverage of furniture, fixtures, and a tenant insured's interest in\nimprovements and betterments of buildings located in that portion of the\npremises occupied by the insured in the practice of his or her profession;\n3. Pattern and die floaters;\n4. Theatrical floaters that exclude:\na. Buildings;\nb. Improvements and betterments to buildings; and\nc. Furniture and fixtures that do not travel about with theatrical\ntroupes;\n5. Film floaters, including:\na. Builders' risk during the production; and\nb. Coverage on the completed negatives and positives and sound\nrecords;\n6. Salesmen's samples floaters;\n7. Exhibition insurance on property while on exhibition and in transit to or\nfrom an exhibition;\n8. Live animal floaters;\n9. Builders risks or installation risks insurance that:\na. Covers the interest of an owner, seller, or contractor against loss or\ndamage to machinery, equipment, or building materials or supplies\nbeing used with and  during the course of installation, testing,\nbuilding, renovating, or repairing;\nb. May cover:\ni. At points or places where work is being performed;\nii. While in transit; and\niii. During temporary storage or deposit of property designated\nfor and awaiting specific installation, building, renovating, or\nrepairing;\nc. Is limited to builders risks or installation risks where perils in\naddition to fire and extended coverage are to be insured; and\nd. i. If written for an owner, ceases upon completion and\nacceptance thereof; or\nii. If written for a seller or contractor, terminates when the\ninterest of the seller or contractor ceases;\n10. Mobile article, machinery, and equipment floaters that:\na. Cover identified property of a mobile or floating nature, not on\nsale or consignment, or in the course of manufacture, which has\ncome into the custody or control of parties who intend to use the\nproperty for which it was manufactured or created; and\nb. Exclude:\ni. Motor vehicles designed for highway use;\nii. Auto homes, tra ilers, and semi -trailers except when hauled\nby a tractor not designed for highway use;\niii. Snow plows constructed exclusively for highway use; and\niv. Furniture and fixtures not customarily used away from\npremises where the property is usually kept;\n11. Insurance that:\na. Covers property:\ni. In transit to, or from and in, the custody of a bailee; and\nii. That is not owned, controlled, or operated by the bailor; and\nb. Excludes the property of the bailee at his or her premises;\n12. a. Installment sales and leased property insurance that:\ni. Covers property sold under a conditional contract of sale,\npartial payment contract, installment sales contract, or lease;\nand\nii. Excludes motor vehicles designed for highway use and\nmachinery and equipment under a certain \"lease -back\"\ncontract.\nb. Installment sales and leased property insurance shall cover in\ntransit, but shall not extend beyond the termination of the seller's\nor lessor's interest;\n13. Garment contractor floaters;\n14. Furriers or fur storer customer insurance:\na. Under which certificates or receipts are issued by furriers or fur\nstorers; and\nb. That covers specified articles of a customer's property;\n15. Accounts receivable insurance;\n16. Valuable papers and records insurance;\n17. Floor plan insurance that:\na. Covers property for sale while in possession of a dealer under a\nfloor plan or any similar plan under which the dealer may borrow\nmoney from a bank or lending in stitution with which to pay the\nmanufacturer, if:\ni. The merchandise is specifically identifiable as encumbered\nto the bank or lending institution;\nii. The dealer's right to sell or otherwise dispose of the\nmerchandise is conditioned upon the merchandise b eing\nreleased from encumbrance by the bank or lending\ninstitution; and\niii. The insurance covers in transit and does not extend beyond\nthe termination of the dealer's interest; and\nb. Excludes:\ni. Automobiles or motor vehicles; and\nii. Merchandise for whic h the dealer's collateral is the stock or\ninventory as distinguished from merchandise specifically\nidentifiable as encumbered to the lending institution;\n18. Sign and street clock insurance, which includes coverage for neon signs,\nautomatic or mechanical signs, and street clocks, while is use as such;\n19. Fine arts insurance that covers paintings, etchings, pictures, tapestries,\nart glass windows, and other bona fide works of art of rarity, historical\nvalue, or artistic merit for a museum, gallery, universi ty, business,\nmunicipality, or other similar interest;\n20. a. Insurance that covers personal property which, when sold to the\nultimate purchaser, may be covered specifically by the owner\nunder an inland marine policy, certificate, or contract, including:\ni. Musical instrument dealers insurance that covers property\nconsisting principally of musical instruments and their\naccessories. As used in this subpart, \"musical instrument\"\ndoes not include radios, televisions, record players, or a\ncombination thereof;\nii. Camera dealers insurance that covers property consisting\nprincipally of cameras and their accessories;\niii. Furrier dealers insurance that covers property consisting\nprincipally of furs and fur garments;\niv. Equipment dealers insurance that covers mobil e equipment\nconsisting of binders, reapers, tractors, harvesters, harrows,\ntedders, and other similar agricultural equipment and\naccessories and construction equipment consisting of\nbulldozers, road scrapers, tractors, compressors, pneumatic\ntools, and oth er similar equipment and accessories.\nEquipment dealers insurance shall exclude motor vehicles\ndesigned for highway use;\nv. Stamp and coin dealers insurance that covers property of\nphilatelic and numismatic nature;\nvi. Jewelers block insurance; and\nvii. Fine art dealers insurance.\nb. For any insurance referenced in subdivision a. of this\nsubparagraph, the insurance may include coverage of:\ni. Money in locked safes or vaults on the insured's premises;\nand\nii. Furniture, fixtures, tools, machinery, patterns, molds, dies,\nand tenant insureds' interests in building improvements;\n21. Wool growers floaters;\n22. Domestic bulk liquid in surance that covers tanks and domestic bulk\nliquids stored therein;\n23. Difference in condition coverage that excludes fire and extended\ncoverage perils; and\n24. Electronic data processing insurance.\n(2) Subsection (1) of this section shall not be construe d to permit coverage under an\ninland marine policy, certificate, or contract for the following, unless the coverage\nis otherwise permitted under that subsection or this chapter:\n(a) Storage of the insured's merchandise;\n(b) Merchandise in the course of man ufacture, including the property of, and on\nthe premises of, the manufacturer;\n(c) Furniture and fixtures;\n(d) Improvements and betterments to buildings; or\n(e) Moneys or securities held in safes, vaults, safety deposit vaults, or banks, or\non the premises of an insured, except while in the course of transportation.\n(3) (a) As used in this chapter, \"wet marine and transportation insurance\" means\nmarine and transportation insurance that may cover or include:\n1. Vessels, crafts, hulls, and of interests therein or with relation thereto;\n2. Marine builders' risks, marine war risks, and contracts of marine\nprotection and indemnity insurance;\n3. Freights and disbursements pertaining to a subject of insurance coming\nwithin this definition; and\n4. Personal property and interests therein, in course of exportation from or\nimportation into any country, or in course of transportation coastwise or\non inland waters, including transportation by land, water, or air from\npoint of origin to final destination, in respect to, ap pertaining to, or in\nconnection with, any and all risks or perils of navigation, transit, or\ntransportation, and while being prepared for and while awaiting\nshipment, and during any delays, storage, transshipment, or reshipment\nincident thereto.\n(b) As used in this subsection, \"marine protection and indemnity insurance\":\n1. Means insurance against, or against legal liability of the insured for,\nloss, damage, or expense arising out of, or incident to, the ownership,\noperation, chartering, maintenance, use, r epair, or construction of any\nvessel, craft, or instrumentality in use in ocean or inland waterways; and\n2. Includes liability of the insured for personal injury, illness, or death or\nloss of or damage to the property of another person.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=57323","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:38Z","sha256":"2064a8b5a5467007fe33915c73947cbae937e47f78088e92b34cc49aa66edceb","source_id":"us-ky","stale":false,"prev":"us-ky/krs-304.5-070","next":"us-ky/krs-304.5-090"},"notice":"GroundRules: Original legal text. Not legal advice."}