1. Forms
2. IH
3. IH-DS-71

What the form is

The IH DS 71 – ANNUAL TRANSIT DECLARATIONS is an insurance form that serves as the declarations page specifically for an Annual Transit Coverage policy. It is not a standalone policy document but rather a component that personalizes the broader Annual Transit Coverage Form (IH 00 71) and the Common Policy Declarations (IL DS 00). While the Common Policy Declarations contains general information like the named insured, mailing address, policy period, and business description, the IH DS 71 details the specifics of the transit coverage itself. This includes identifying the insurance company and producer, describing the property being covered during transit, outlining the various limits of insurance, stating deductible amounts, and noting applicable rates and premiums (which can be on a reporting or non-reporting basis).

Classes of business it applies to

This form is used for businesses and individuals that regularly ship or receive goods and require continuous coverage for these transits. It applies to various modes of transportation, including:

• Shipments by contract or common carriers (truck, rail)
• Goods transported on the insured's own vehicles
• Shipments via air carriers
• Property carried by messengers
• Property transported by vehicles of others

Real-world examples:

• A manufacturer shipping finished products to distributors nationwide.
• A wholesaler receiving goods from multiple suppliers.
• A construction company moving tools and equipment to various job sites.
• An art gallery shipping valuable pieces to exhibitions or buyers.

Special considerations

Key considerations for the IH DS 71 include:

• Policy Structure: It is crucial to understand that this form is part of a larger policy package. The Annual Transit Coverage typically requires the IL DS 00 (Common Policy Declarations), IL 00 17 (Common Policy Conditions), CM DS 02 (Commercial Inland Marine Declarations), CM 00 01 (Commercial Inland Marine Conditions), IH 00 71 (Annual Transit Coverage Form), and this IH DS 71.
• Specificity of Limits: Coverage for different modes of transportation (e.g., by contract carrier, by your vehicles) only applies if a limit of insurance is specifically entered for that mode on this declarations page.
• Reporting vs. Non-Reporting: The form accommodates both reporting and non-reporting premium bases. For reporting forms, details like deposit premium, minimum premium, reporting period, and premium adjustment period will be specified.
• Information Hierarchy: General policyholder information (name, address, policy term) is found on the Common Policy Declarations, not on the IH DS 71.

Key information for agents and underwriters

For agents and underwriters, the IH DS 71 is a critical document for defining the precise scope and terms of the annual transit coverage:

• Risk Assessment: The description of property, modes of transit used, and geographical scope (implied by transit operations) are vital for assessing risk. Underwriters will scrutinize the limits requested for each transit type and for property at named or unnamed locations.
• Accurate Limits: Ensuring adequate limits for each specified mode of transit and for any one occurrence is paramount to prevent underinsurance.
• Deductibles: The form specifies the deductible amounts, which can vary by type of conveyance or cause of loss.
• Premium Calculation: Whether the policy is on a reporting or non-reporting basis significantly impacts premium calculation and administration. This must be clearly indicated.
• Special Provisions: Any unique terms, conditions, or modifications to the standard coverage will be noted in the 'Special Provisions' section, requiring careful review.
• Clarity for Insured: Agents should clearly explain to the insured how the IH DS 71 works in conjunction with other policy forms and what information is specifically detailed on this declarations page.