SECTION 5.5002. Inland Marine Insurance -- Imports

Imports (non-filed). Imports may be insured under inland marine policies when the property is not subject to import risk covered under marine (ocean) policies.

(1) Imports on consignment may be covered without restriction as to time or location of the property, provided the coverage includes transportation hazards. "On consignment" refers to property consigned and entrusted to factors or agents to be held in their care, or under their control:

(A) for sale; for account of another; or for exhibit, trial, approval, or auction; and

(B) for return, if not disposed of.

(2) Imports not on consignment may be covered in places of storage that are typically used by importers, provided the coverage includes transportation hazards. These policies may also include the same coverage for property purchased on cost-insurance-freight terms or spot purchases included with or substituted for bona fide importations. An import can remain covered under an inland marine policy as long as the property remains segregated in the original form or package in a way that it can be identified and has not become incorporated and mixed with the general mass of property in the United States. An import can no longer be covered under the inland marine policy when the property has been:

(A) sold and delivered by the importer, factor, or consignee;

(B) removed from its place of storage and placed on sale as part of the importer's stock in trade at a point of sales distribution; or

(C) delivered and accepted for manufacture, processing, or change in form at the premises used for any of those purposes.

Source Note: The provisions of this §5.5002 adopted to be effective June 4, 2023, 48 TexReg 2723