INTRODUCTION
The Personal Effects Floater (PEF) was designed for use by tourists who wish coverage on their personal articles while traveling. The Personal Effects Floater provides AAll Risks@ Coverage on the Personal Property of tourists and travelers anywhere in the world, but only while the covered property is not on the residence premises. Coverage will apply to the named insured, his/her spouse and any unmarried children who permanently reside with the named insured.
COVERAGE OF PERSONAL EFFECTS
Personal Effects refer to Personal Property normally worn or carried by an individual. The Personal Effects Floater is designed to cover the insured's Personal Effects, such as cameras, sports equipment, luggage and clothes, while the insured is traveling or on vacation.
PROPERTY NOT COVERED
The PEF will exclude coverage for certain types of property even though the article may be carried or used by travelers. The following property is excluded:
» contact lenses and artificial teeth or limbs
» merchandise for sale or exhibition, theatrical property, and property specifically insured
» automobiles, motorcycles, bicycles, boats, other conveyances and their accessories
» accounts, bills, currency, deeds, evidences of debt and letters of credit
» passports, documents, money, notes, securities and transportation of other tickets
» household furniture and animals
» automobile equipment, salesperson's samples, physician's and surgeon's equipment
In addition to the requirement that the property must be worn or used by the insured, the article must belong to the insured. If the insured rents or borrows property, the coverage does not apply.
AALL‑RISKS@ COVERAGE
Personal Effects are covered on an AAll‑Risks@ Basis. Therefore, all Direct Physical Losses are
covered except for certain losses that are specifically excluded. The following losses are excluded:
» breakage of brittle articles unless caused by a theft, fire, or accident to a conveyance
» damage to Personal Effects from wear and tear, gradual deterioration, insects, vermin, inherent vice, or any damage while the property is being worked on.
OTHER EXCLUSIONS
The Personal Effects Floater has the following limitations on coverage:
» Personal Effects in the custody of students while at school are not covered except for loss by fire.
» Property storage is not covered. There is coverage of the property at points and places enroute during travel. If the insured stores his/her luggage in a locker at an airport, train stations or bus terminal while out on a sightseeing tour, the exclusion would not apply.
» Personal Effects are not covered while on the named insured's residence premises.
LIMITATIONS ON CERTAIN PERSONAL EFFECTS
Furs, watches and jewelry are subject to certain special limits. Coverage on any single article is limited to 10% of the total amount of insurance with a maximum of $100.
Theft of Personal Effects from an unattended automobile is also excluded. There would be coverage, however, if the automobile is locked and there are visible marks of forcible entry. The amount paid is limited to a maximum of 10% of the total amount of insurance or $250, whichever is lower.
CHAPTER 5 ‑ QUESTIONS
1. The Personal Effects Floater (PEF) was basically designed for:
a. business
b. restaurants
c. taxi cab companies
d. tourists
2. Personal Effects refer to Personal Property ...
a. Apurchased by an individual@
b. Aowned by a business@
c. Aworn by an individual@
d. none of the above
3. What property would be excluded under the PEF?
a. contact lenses
b. automobiles
c. passports
d. all of the above
4. Personal Effects are covered on a _____ Basis.
a. Named Peril
b. AAll‑Risk@
c. Unscheduled
d. Scheduled
5. Which Personal Effects are subject to Special Limits?
a. furs
b. watches
c. jewelry
d. all of the above
answers
1. d
2. c
3. d
4. b
5. d