1. Forms
2. PM
3. PM-02-10

What the Form Is

The PM 02 10, titled "Estates Endorsement," is an endorsement to a Personal Inland Marine policy. Its primary function is to amend the "E.13 Death Condition" of the PM 00 01 - Common Policy Provisions. This modification ensures that the insurance coverage provided under the policy continues to apply to the property of an insured individual even after their death. The coverage also extends to eligible property that is acquired by the deceased insured's estate.

Classes of Business It Applies To

This endorsement is used in Personal Inland Marine insurance. It is relevant for individuals who have personal property, such as valuable articles (jewelry, fine arts, collectibles, etc.), insured under a personal inland marine policy or personal articles floater.

• Real-world example: If a client with a scheduled collection of rare stamps passes away, this endorsement would help ensure that the insurance coverage for those stamps continues while they are part of the estate and before being distributed to beneficiaries. This also applies if the estate acquires additional eligible items before settlement.

Special Considerations

Key considerations for the PM 02 10 endorsement include:

• Continuity of Coverage: It provides crucial continuity of coverage during the often complex and lengthy period of estate settlement, preventing potential gaps in protection for valuable assets.
• Modification of Standard Terms: It specifically alters the standard "Death Condition" in the policy, so understanding the original condition and how this endorsement changes it is vital.
• Property Acquired by Estate: The phrase "eligible property acquired by the applicable estate" is important. It implies that items the estate obtains post-death might also be covered, but the specifics of "eligible" would be defined in the policy or by interpretation.
• Attachment to Policy: This endorsement must be attached to a policy that includes or references the PM 00 01 - Common Policy Provisions for it to be effective.

Key Information for Agents and Underwriters

• For Agents:
  • Proactively discuss this endorsement with clients who have significant scheduled personal property or valuable collections to address their estate planning needs regarding these assets.
  • Explain how this endorsement helps protect their legacy by ensuring insured items remain covered during probate or estate administration.
• For Underwriters:
  • Recognize that this endorsement extends the period of risk beyond the insured's lifetime, potentially covering property for the duration of the estate settlement process.
  • Assess if any additional risk factors arise from property being managed by an estate rather than the original insured.
  • Ensure clarity on what constitutes "eligible property" acquired by the estate to avoid ambiguity in claim situations.
  • Verify that the underlying policy correctly incorporates the PM 00 01, which this endorsement modifies.