1. Forms
2. IH
3. IH-99-11

What the form is

The IH 99 11 Gross Receipts Reporting Form is an endorsement used with non-filed Inland Marine insurance policies. Its primary function is to convert the coverage from a standard, often flat-premium basis, to a reporting basis. Under this endorsement, the insured is required to periodically report their gross receipts to the insurer. These reported gross receipts then serve as the basis for calculating the premium for the coverage period. This method allows the premium to align more closely with the actual exposure experienced by the insured, which can fluctuate over time.

Classes of business it applies to

This endorsement is typically used for businesses where gross receipts provide a reasonable and measurable proxy for their Inland Marine exposure. A primary example includes:

• Motor Truck Cargo Carriers: Businesses engaged in transporting goods for others (common or contract carriers) can use this endorsement with their Motor Truck Cargo Carriers Coverage Form. For instance, a trucking company whose volume of hauled goods (and thus revenue) varies significantly throughout the year would benefit from a premium based on actual gross receipts from their hauling operations. This reporting typically applies to the goods being shipped and not to terminal coverage.

It can also be attached to other non-filed inland marine coverage forms such as those covering Bailee customers' goods, or other situations where revenue correlates with the value or amount of property at risk under an inland marine policy.

Special considerations

• Cumulative Values: It's important to note that gross receipts are treated as cumulative values rather than an average of periodic values. Consequently, the rates applied for this reporting arrangement are typically the annual rates, not a percentage of annual rates.
• Reporting Frequency: The endorsement itself doesn't dictate the reporting frequency (e.g., daily, weekly, monthly, quarterly, or policy year). This is determined by the terms of the underlying coverage form to which IH 99 11 is attached.
• Definition of Gross Receipts: The policy should clearly define what constitutes "gross receipts" to avoid ambiguity in reporting and premium calculation.
• Non-Filed Form: As a non-filed form, its availability and specific terms can vary by insurer and jurisdiction.

Key information for agents and underwriters

• Pricing and Risk Assessment: This endorsement allows for more flexible and accurate premium calculation for businesses with fluctuating exposures. Underwriters should assess if gross receipts are a suitable and reliable measure of the insured's exposure for the specific coverage provided. The use of annual rates reflects the cumulative nature of the reported values.
• Underwriting Guidelines: Ensure the insured has adequate accounting systems to accurately track and report gross receipts as required. The underlying coverage form's terms for reporting (frequency, deadlines) must be clearly communicated and adhered to.
• Coverage Gaps: Failure to report accurately or on time could potentially lead to issues at the time of a claim or with premium adjustments. Agents should counsel insureds on the importance of timely and accurate reporting.
• Alternative to Value Reporting: This form provides an alternative to traditional value reporting (e.g., IH 99 08 Value Reporting Form or IH 99 09 Values Shipped Reporting Form) where the basis is gross revenue rather than specific property values at a point in time or values shipped.