What it does
CM 00 60 insures property the insured records for insurance before shipping and sends by First Class, Certified, USPS Express or Registered Mail, for each type of mail with a limit in the declarations. Covered property includes bonds and other securities, detached coupons, stamps, money orders, checks, drafts, bills of lading and other commercial papers; bullion and precious metals, currency, travelers checks, jewelry and gems are covered only by Registered Mail. Coverage runs from the post office (including messenger or carrier transit to or from it) until delivery to the addressee or return to the sender.
Who needs it
Financial institutions and securities firms that mail securities and negotiable items, and businesses that ship valuables by registered mail.
Key provisions
- Exclusions are narrow: government seizure, atomic weapons, mines and torpedoes, and war and insurrection (with marine-style exceptions for fire, stranding, heavy weather and collision).
- Errors and oversight: unrecorded or misrecorded mailings are covered at actual value up to the limit; packages over the limit are paid proportionally.
- Valuation: actual value but not less than market value on the mailing date; the insurer provides indemnity bonds to reissue lost securities and pays for replacement purchases, postage and lost interest, capped at 125% of the recorded value for securities.
- Other insurance: excess over other insurance for theft by employees of senders or addressees; primary over blanket bonds for other losses.
- Records and reports: every mailing must be recorded before loss; values are reported each period and premium computed at the declared rates, with a minimum premium.
Quoting and selling notes
Ask for annual and maximum per-package values by mail type and the logging system. Transfer agents use CM 60 08; flat per-package premium plans use CM 60 02 or CM 60 03.
