Free Other Property Insurance Study Guide
Missouri Property exam — Other Property Insurance.
The national guide covers other property coverages: inland marine, floaters, flood and residual markets. This guide covers the Missouri rules in this area. The main ones are the basic property insurance inspection and placement program (FAIR plan) and Missouri's inland marine definition.
The Missouri FAIR plan (RSMo 379.810–379.855)
- Purpose: basic property insurance for people in good faith entitled to it who can't get it through ordinary methods. The program is run by an all-industry placement facility (379.810, 379.815).
- Basic property insurance is the standard fire policy and extended coverage endorsement, with certain endorsements. Auto and excluded manufacturing risks are left out.
- Limits: $200,000 habitational and $1,000,000 commercial per location. The facility tries to help place larger amounts.
Inspections and decisions
| Step | Missouri rule |
|---|---|
| Inspection request | By the owner, insurer or agent. Need not be in writing. A tenant can get one without the owner present. |
| Inspector's report to the facility | Within 5 business days |
| Facility's action report | Within 5 business days: acceptable, surcharged, conditionally acceptable, or not acceptable. Copies go to the owner and Director with appeal rights. |
| Policy issue | Within 3 business days, effective noon on the day premium is received |
| Appeal | To the Director within 30 days |
- Valid reasons to decline: physical condition and present use or housekeeping, such as vacancy, overcrowding or rubbish.
- Invalid reasons: neighborhood, area location, or environmental hazards beyond the owner's control.
- When improvements are completed, the facility must reinspect promptly.
- Surcharges for substandard conditions must follow approved filings.
Policies and commissions
- One-year term on approved forms and rates.
- Cancellation without committee approval is limited to incendiarism, nonpayment, fraud and uninsurable changed conditions. Notice is at least 30 days.
- Commission: 12% new, 10% renewal. If no producer is designated, the commission goes into a fund held by the Director.
- Insurers share liability and expenses through assessments.
Inland marine definition (20 CSR 500-1.200)
Missouri adopts the 1976 NAIC Nationwide Marine Definition, with changes.
- Personal floaters: personal effects, jewelry, furs, fine arts, stamps and coins, musical instruments, and wedding presents for up to 90 days after the wedding.
- Musical instruments: pianos and organs that usually stay on the premises are excluded. Radios and TVs aren't musical instruments.
- Commercial floaters: physicians' instruments, patterns and dies, theatrical property, salesmen's samples, exhibitions and builders' risks.
- Consignment coverage never applies on premises owned, leased or operated by the consignor.
- Instrumentalities of transportation and communication, such as bridges and tunnels, may be covered. Buildings may not.
Common exam traps
- FAIR plan inspection requests may be oral. The report and action report each take 5 business days. The policy issues in 3.
- Location is not a valid reason to decline.
- FAIR plan commission: 12% / 10%.
- Wedding present floaters last 90 days. TVs aren't musical instruments.
Practice Other Property Insurance questions All Property topics
Practice questions are study aids generated for exam preparation and are not actual exam questions. Content is provided for educational purposes and is not legal advice. Verify current statutes, rules, and exam specifications with the Insurance Department and the exam administrator before relying on it.
