What it does
CM 00 01 is the conditions form for the ISO Commercial Inland Marine Coverage Part. Each inland marine coverage form (CM or IH series) contains its own covered property, exclusions and additional conditions, but the claim-handling and policy-wide rules sit in this one form. Coverage forms often replace one of these conditions, most commonly valuation, so read the two together.
Key provisions
- Loss conditions: no abandonment of property to the insurer; appraisal on demand of either party, with the insurer keeping the right to deny the claim; duties after loss (notify police when a law may have been broken, prompt notice, protect property, permit inspection and examination under oath, sworn proof of loss within 60 days after the insurer asks for it).
- Loss payment: the insurer states its intentions within 30 days after the sworn proof of loss and pays within 30 days once the amount is agreed or an appraisal award is made. It may adjust directly with owners of property of others and may defend the insured against owners' suits.
- Other insurance: shares pro rata with insurance written on the same plan, otherwise pays only excess of other insurance.
- Pair, sets or parts, recovered property, and reinstatement of limit: the limit is not reduced by paying a claim, except a total loss of a scheduled item, where the unearned premium on that item is refunded.
- Transfer of rights of recovery: the insured may waive recovery rights in writing before a loss, and after a loss only against another insured or an affiliated business.
- General conditions: concealment or fraud voids the coverage part; breach at one location does not affect others; suit must be filed within 2 years after the insured first knows of the loss; no benefit to bailee; coverage applies to loss commencing during the policy period within the coverage territory.
- Valuation: the least of actual cash value, cost to restore, or cost to replace with substantially identical property, unless the coverage form says otherwise.
Quoting and selling notes
The default valuation is actual cash value. Insureds who expect replacement cost on equipment need a coverage form or endorsement that provides it (for example the replacement cost option in IH 00 68). Contract waivers of subrogation are allowed if signed before the loss, which matters for contractors and equipment lessors. The 2-year suit limitation and the no-benefit-to-bailee clause are frequent points in carrier and shipper disputes.
Related forms
Used with CM DS 02 declarations and with coverage forms such as CM 00 66, CM 00 67, CM 00 59 and the IH series (IH 00 68 and others).
