1. Forms
2. PM
3. PM-00-01

What the form is

The PM 00 01 Common Policy Provisions form is a foundational document within the Insurance Services Office (ISO) Personal Inland Marine program. It does not provide insurance coverage on its own but rather sets forth the standard terms, conditions, definitions, and obligations that apply universally to any specific coverage forms attached to the Personal Inland Marine policy. Think of it as the rulebook that governs the relationship between the insured and the insurance company for the covered property.

Classes of business it applies to

This form is used in Personal Inland Marine insurance. This line of insurance typically covers valuable personal articles that may have limited coverage under a standard homeowners policy. Examples of property classes where this form would be a component of the overall policy include:

• Jewelry
• Furs
• Fine Arts
• Musical Instruments
• Cameras
• Silverware
• Stamp and Coin Collections

For instance, if an individual insures a valuable diamond ring using a specific Jewelry form (like PM 00 11), the PM 00 01 Common Policy Provisions would also be part of that policy, dictating overarching conditions like how losses are settled or what the insured's duties are in case of a loss.

Special considerations

• Not a standalone policy: The PM 00 01 must be attached to a declarations page and one or more specific coverage forms (e.g., for jewelry, fine arts, etc.) to create a complete policy.
• Amendments: The provisions within PM 00 01 can be modified by endorsements. For example, the PM 02 10 Estates Endorsement specifically amends the Death Condition found in PM 00 01.
• Importance of review: Both insureds and insurance professionals should carefully review this form as its terms are critical in understanding policy operations, especially concerning loss conditions, valuation, and duties after a loss.

Key information for agents and underwriters

• Baseline Conditions: This form establishes a consistent set of underlying rules for all Personal Inland Marine policies written on ISO-based forms, simplifying the understanding of general policy operations.
• Loss Settlement: The PM 00 01 contains crucial provisions regarding loss settlement. For example, it may detail standard loss settlement terms, while specific forms like the PM 00 09 or endorsements might introduce agreed value settlements for scheduled property, referencing back to or modifying the PM 00 01. The "Loss To A Pair, Sets Or Parts" clause is another key provision within this form that agents should be aware of.
• Insured's Duties: It clearly outlines the insured's responsibilities in the event of a loss, such as providing prompt notice, protecting property from further damage, and cooperating with the insurer's investigation.
• Cancellation and Nonrenewal: The form will contain the conditions under which the policy can be canceled or nonrenewed by either the insurer or the insured.
• Concealment or Fraud: Provisions regarding concealment, misrepresentation, or fraud by the insured and the impact on coverage are typically included.
• Underwriting Consistency: For underwriters, the PM 00 01 provides a standardized framework, allowing them to focus on the specific risks associated with the items being insured via the attached coverage forms and endorsements.