1. Forms
2. CM
3. CM-60-08

What the Form Is

The Transfer Agents Mail endorsement (CM 60 08) is an endorsement to the standard Mail Coverage Form (CM 00 60) within a Commercial Inland Marine policy. Its primary function is to broaden the scope of the Mail Coverage Form to specifically address the risks faced by entities acting as transfer agents, trustees, registrars, or in other corporate agency capacities when they mail important documents. The endorsement insures against the risk of non-delivery of covered property. Notably, it often modifies the definition of covered property to include items such as nonnegotiable securities and fractional shares.

Classes of Business It Applies To

This endorsement is designed for financial and fiduciary organizations that handle and mail securities and other valuable documents on behalf of corporations. Specific examples include:

• Transfer agents
• Trustees under indentures governing debt securities (for securities not issued by the insured themselves)
• Registrars
• Corporations acting as their own security transfer agents or registrars
• Other entities performing similar corporate agency functions for issuers of covered property

For instance, a company that manages shareholder records and facilitates the transfer of stock ownership for publicly traded companies would use this endorsement to protect mailed stock certificates (if nonnegotiable) or related documents against loss due to non-delivery.

Special Considerations

• Modification of Mail Coverage Form: It's crucial to understand that this is not a standalone policy but an endorsement that alters the underlying Mail Coverage Form. The terms and conditions of the Mail Coverage Form (CM 00 60) will still apply unless specifically modified by this endorsement.
• Covered Property Definition: The definition of 'covered property' is a key aspect of this endorsement. It is often tailored to nonnegotiable securities and fractional shares. This specificity is important because the standard Mail Coverage Form might have different definitions or limitations.
• Covered Mail Types: Coverage typically applies to property sent by First Class Mail, Certified Mail, or Registered Mail.
• Risk Covered: The primary risk addressed is the non-delivery of the mailed items.

Key Information for Agents and Underwriters

• Client Eligibility: Verify that the insured's operations align with the intended users of this endorsement (e.g., acting as a transfer agent, registrar).
• Nature of Property Mailed: Understand the type and value of the property being mailed. The endorsement's focus on nonnegotiable securities and fractional shares should be a key point of discussion.
• Mailing Procedures: Assess the insured's mailing practices, including volume, frequency, destinations, and the types of mail services used (first class, certified, registered).
• Interaction with Mail Coverage Form: Ensure both the agent and the insured understand how this endorsement interacts with and modifies the base Mail Coverage Form (CM 00 60).
• Limits of Liability: Appropriate limits of liability need to be established based on the maximum value of property that could be lost in a single mailing or a series of mailings.
• Exclusions: Review any exclusions present in the Mail Coverage Form and this endorsement to identify potential coverage gaps.