1. Forms
2. CM
3. CM-60-10

What the Form Is

The CM 60 10, titled "SECURITIES SENT BY THE UNITED STATES TREASURY DEPARTMENT - REGISTERED MAIL," is an endorsement to the standard Mail Coverage Form (CM 00 60). Its primary function is to extend the coverage provided under the Mail Coverage Form to specifically include securities that are shipped by the United States Treasury Department via registered mail. Without this endorsement, such specific shipments might not be covered or might be subject to limitations under the base Mail Coverage Form.

Classes of Business It Applies To

This endorsement is relevant for financial and fiduciary organizations that would typically use the Mail Coverage Form for insuring valuable papers and securities in transit. Specific entities include:

• Banks and bankers
• Trust companies
• Insurance companies
• Security brokers
• Investment corporations whose business is primarily fiduciary in nature
• Corporations acting as their own security transfer agents or registrars

Real-world example: A commercial bank that regularly receives shipments of U.S. Treasury bonds or notes directly from the Treasury Department via registered mail would utilize this endorsement in conjunction with their Mail Coverage Form to ensure these specific assets are protected against loss during transit.

Special Considerations

• Specific Scope: Coverage under this endorsement is narrowly defined. It applies exclusively to securities, sent by the U.S. Treasury Department, and transported via registered mail. Other types of valuable property, senders, or methods of shipment would require different endorsements or policy terms.
• Attachment to Mail Coverage Form: The CM 60 10 is not a standalone policy; it must be attached to and forms part of the Mail Coverage Form (CM 00 60).
• Reporting Basis: The underlying Mail Coverage Form is often written on a reporting basis, meaning the insured must report shipment values to the insurer regularly. This reporting would need to include values of securities shipped by the Treasury Department if this endorsement is active.
• Registered Mail Requirement: The method of shipment is critical; coverage applies only if the securities are sent via registered mail.

Key Information for Agents and Underwriters

• Risk Assessment: The primary risk involves the potential loss or damage of high-value government securities while in transit with the postal service. Underwriters should evaluate the insured's procedures for receiving and handling such shipments, the frequency of these shipments, and the typical values involved.
• Verify Eligibility: Ensure the insured is a financial or fiduciary organization as contemplated by the Mail Coverage Program.
• Confirm Shipment Parameters: It's crucial to confirm that the securities are indeed sent by the U.S. Treasury Department and via registered mail for this endorsement to apply.
• Limit Adequacy: Agents should work with insureds to ensure that the limits of liability stated in the Mail Coverage Form declarations are sufficient to cover the maximum expected value of securities that might be shipped by the Treasury Department in any one transit.
• Underwriting Guidelines: Review the insured's history of losses related to mail shipments. The security measures in place at the point of receipt should also be considered.
• Filed Form: This form is generally a filed form, meaning its language has been submitted to and approved by state insurance departments.