Which statement about inland marine floaters is true?

Which statement about inland marine floaters is true?

• A. They are property insurance policies whose coverage floats with the insured property
• B. They can be issued only by life insurers
• C. They never cover jewelry or fine arts
• D. They always require coinsurance

Answer: (A)

Inland marine floaters are designed for movable property, with coverage that follows the item wherever it goes. The idea is that the insured item isn’t tied to one location, so the policy provides protection as the property moves, travels, or is stored in different places, within the terms of the policy. These floaters are generally issued by property and casualty insurers, not life insurers. They do cover valuable items like jewelry and fine arts under specialized forms or schedules, unlike the statement that they never cover such items. And coinsurance isn’t a universal requirement; some inland marine floaters use agreed value or other valuation methods that don’t hinge on coinsurance. So the best description is that these are property insurance policies whose coverage floats with the insured property.

Inland marine floaters are designed for movable property, with coverage that follows the item wherever it goes. The idea is that the insured item isn’t tied to one location, so the policy provides protection as the property moves, travels, or is stored in different places, within the terms of the policy. These floaters are generally issued by property and casualty insurers, not life insurers. They do cover valuable items like jewelry and fine arts under specialized forms or schedules, unlike the statement that they never cover such items. And coinsurance isn’t a universal requirement; some inland marine floaters use agreed value or other valuation methods that don’t hinge on coinsurance. So the best description is that these are property insurance policies whose coverage floats with the insured property.