Kinds of insurance authorized

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  • The following kinds or lines of insurance that may be underwritten by a licensed International Insurance Company subject to the provisions of this chapter shall be as follows:
    • (1) “Life insurance” means every insurance upon the lives of human beings, and every insurance pertaining thereto, including the granting of endowment benefits, additional benefits in the event of death by accident, additional benefits to safeguard the contract from lapse, or the providing of a special surrender value, upon total and permanent disability of the insured, and optional modes of settlement of proceeds.

    • (2) “Annuities” means all agreements to make periodic payments for a period certain or depending upon the continuance of human life or a combination of the two, except payments made under the authority of paragraph one hereof.

    • (3) “Accidents and Health insurance” means (i) insurance against death or personal injury by accident or by any specified kind or kinds of accident and insurance against sickness, ailment or bodily injury, including insurance providing disability benefits except as specified in item (ii) hereof; and (ii) non-cancelable disability insurance, meaning insurance against disability resulting from sickness, ailment or bodily injury, but excluding insurance solely against accidental injury under any contract which does not give the insurer the option to cancel or otherwise terminate the contract at or after one year from its effective date or renewal date.

    • (4) “Fire insurance” means insurance against loss of, or damage to, any property resulting from fire, including loss or damage incident to the extinguishment of a fire or to the salvaging of property in connection therewith.

    • (5) “Miscellaneous property insurance” means insurance against loss of, or damage to, property resulting from:

      • (A) lightning, smoke or smudge, windstorm, tornado, cyclone, earthquake, volcanic eruption, rain, hail, frost and freeze, weather or climatic conditions, excess or deficiency of moisture, flood, the rising of the waters of the ocean or its tributaries;

      • (B) insects, or blights, or disease of such property except animals;

      • (C) electrical disturbance causing or concomitant with a fire or an explosion in public service or public utility property;

      • (D) bombardment, invasion, insurrection, riot, civil war, or commotion, military or usurped power, any order of a civil authority made to prevent the spread of a conflagration, epidemic or catastrophe, vandalism, or malicious mischief, strike or lockout, collapse from any cause, or explosion; but excluding any kind of insurance specified in paragraph nine hereof, except insurance against loss of, or damage to, property resulting from:

        • (i) explosion of pressure vessels except steam boilers of more than fifteen pounds pressure) in buildings designed and used solely for residential purposes by not more than four families;

        • (ii) explosion of any kind originating outside of the insured building or outside of the building containing the property insured;

        • (iii) explosion of pressure vessels which do not contain steam or which are not operated with steam coils or steam jackets; or

        • (iv) electrical disturbance causing or concomitant with an explosion in public service or public utility property;

      • (E) lateral or vertical subsidence of the earth caused by past or present mining operations.

    • (6) “Water damage insurance” means insurance against loss or damage, by water or other fluid or substance, to any property resulting from the breakage or leakage of sprinklers, pumps, or other apparatus erected for extinguishing fires or of water pipes or other conduits or containers, or resulting from casual water entering through leaks or openings in buildings or by seepage through building walls, but excluding loss or damage resulting from flood or the rising of the water of the ocean or its tributaries; and including insurance against accidental injury of such sprinklers, pumps, fire apparatus, conduits or containers.

    • (7) “Burglary and theft insurance” means:

      • (A) Insurance against loss of, or damage to, any property resulting from burglary, theft, larceny, robbery, forgery, fraud, vandalism malicious mischief, confiscation or wrongful conversion, disposal or concealment by any person, or from any attempt thereof;

      • (B) Insurance against loss of, or damage to, moneys, coins, bullion, securities, notes, drafts, acceptances or any other valuable papers or documents, resulting from any cause, except while in the custody or possession of and being transported by any carrier for hire, or in the mail; and

      • (C) Insurance of individuals by means of an all-risk type of policy commonly known as the “Personal Property Floater” against any kind and all kinds of loss of, or damage to, or loss of use of, any personal property other than merchandise.

    • (8) “Glass insurance” means insurance against loss, of or damage to, glass and its appurtenances resulting from any cause.

    • (9) “Boiler and machinery insurance” means insurance against loss of, or damage to, any property of the insured, resulting from explosion of or injury to:

      • (A) any boiler, heater, or other fired pressure vessel;

      • (B) any unfired pressure vessel;

      • (C) pipes or containers connected with any such boilers or vessels;

      • (D) any engine, turbine, compressor, pump, or wheel;

      • (E) any apparatus generating, transmitting or using electricity; and

      • (F) any other machinery or apparatus connected with, or operated by, any such boilers, vessels, or machines; including the incidental power to make inspections of and issue certificates of inspection upon, any such boilers, apparatus, and machinery, whether insured or otherwise.

    • (10) “Elevator insurance” means insurance against loss of, or damage to, any property of the insured, resulting from ownership, maintenance, or use of elevators, except loss or damage by fire.

    • (11) “Animal insurance” means insurance against loss of, or damage to, any domesticated or wild animal resulting from any cause.

    • (12) “Collision insurance” means insurance against loss of, or damage to, any property of the insured resulting from collision of any other object with such property, but excluding collision to or by elevators, or to or by vessels, craft, piers or other instrumentalities of ocean or inland navigation.

    • (13) “Personal injury liability insurance” means insurance against legal liability of the insured, and against loss, damage or expense incident to a claim of such liability including the insurer’s obligation to pay medical, hospital, surgical, and disability benefits to injured persons, and funeral and death benefits to dependents, beneficiaries or personal representatives of persons who are killed, irrespective of legal liability of the insured, arising out of death or injury of any person, or arising out of injury to the economic interests of any person, as the result of negligence in rendering expert, fiduciary or professional service, but excluding any kind of insurance specified in paragraph (15) of this section, except insurance to protect an insured against liability for indemnification or contribution to a third party held responsible for injury to the insured’s employee arising out of and in the course of employment when such insurance is written pursuant to this paragraph and not written pursuant to paragraph (15) of this section.

    • (14) “Property damage liability insurance” means insurance against legal liability of the insured, and against loss, damage or expense incident to a claim of such liability, arising out of the loss or destruction of, or damage to, the property of any other person, but not including any kind of insurance specified in paragraph (13) or (15) of this section.

    • (15) “Workers” compensation and employers” liability insurance” means insurance against the legal liability, under common law or statute or assumed by contract, or any employer for the death or disablement of, or injury to, his employee.

    • (16) “Fidelity and surety insurance” means:

      • (A) Guaranteeing the fidelity of persons holding positions of public or private trust; and indemnifying banks, thrifts, brokers and other financial institutions against loss of money, securities, negotiable instruments, other specified valuable papers and tangible items of personal property caused by larceny, misplacement, destruction or other stated perils including loss while being transported in an armored motor vehicle or by messenger; and insurance for loss caused by the forgery of signatures on, or alteration of, specified documents and valuable papers;

      • (B) Insurance against losses that financial institutions become legally obligated to pay by reason of loss of customers” property from safe deposit boxes;

      • (C) Any contract bond, including a bid, payment or maintenance bond or a performance bond where the bond is guaranteeing the execution of any contract other than a contract of indebtedness or other monetary obligation;

      • (D) An indemnity bond for the benefit of a public body, railroad, or charitable organization; a lost security or utility payment bond;

      • (E) Becoming surety on, or guaranteeing the performance of, any lawful contract, not specifically provided for in this paragraph, except (i) mortgage guaranty insurance as defined in paragraph (23) of this section, or (ii) a contract that falls within the definition of financial guaranty insurance as defined in paragraph (25) of this section; and

      • (F) Becoming surety on, or guaranteeing the performance of, bonds and undertakings required or permitted in all judicial proceedings or otherwise by law allowed, including surety bonds accepted by states and municipal authorities in lieu of deposits as security for the performance of insurance contracts.

    • (17) “Credit insurance” means:

      • (A) Indemnifying merchants or other persons extending credit against loss or damage resulting from nonpayment of debts owed to them for goods and services provided in the normal course of their business, including the incidental power to acquire and dispose of debts so insured, and to collect any debts owed to such insurer or to the insured, but no insurance may be written as credit insurance if it falls within the definition of financial guaranty insurance as defined in paragraph (25) of this section;

      • (B) Indemnifying any person for expenses disbursed or to be disbursed under a contract in connection with the cancellation of a catered affair; or

      • (C) Indemnifying any person for tuition expense disbursed or to be disbursed under a contract in connection with his dismissal or withdrawal from an educational institution; or indemnifying elementary or secondary schools, whether public, private, profit or nonprofit, providing education in consideration of a tuition charge or fee, against loss or damage in the event of nonpayment of the tuition charges or fees of a student or pupil dismissed, withdrawn, or leaving before the end of the school year for which the insurance is written.

    • (18) “Title insurance” means insuring owners of, and other persons lawfully interested in, real property and chattels real against loss by reason of defective titles and encumbrances, and insuring the correctness of searches for all instruments, liens, or charges affecting the title to such property, including power to procure and furnish information relative thereto, and such other incidental powers as are specifically granted in this chapter.

    • (19) “Motor vehicle and aircraft physical damage insurance” means insurance against loss of or damage to motor vehicles or aircraft and their equipment resulting from any cause; and insurance reimbursing a driver for costs including replacement car rental, commercial transportation and accommodations resulting from an automobile accident or mechanical breakdown occurring fifty miles or more from the driver’s principal place of residence or garaging.

    • (20) “Marine and inland marine insurance” means insurance against any and all kinds of loss of, or damage to:

      • (A) Vessels, hulls, crafts, aircrafts, cars, automobiles, trailers, and vehicles of every kind, and all goods, freights, cargoes, merchandise, effects, disbursements, profits, moneys, bullion, precious stones, securities, choses in action, evidences of debt, valuable papers, bottomry and respondentia interests and all other kinds of property and interests therein, in respect to, appertaining to or in connection with any and all risks or perils of navigation, transit, or transportation, including war risks, on or under any seas or other waters, on land or in the air, or while being assembled, packed, crated, baled, compressed, or similarly prepared for reshipment or while awaiting the same or during any delays, storage, transshipment, or reshipment incident thereto, including marine builder’s risks and all personal property floater risks;

      • (B) Person or property in connection with or appertaining to marine, inland marine, transit or transportation insurance, including liability for loss of, or damage to either, arising out of, or in connection with the construction, repair, operation, maintenance or use of the subject matter of such insurance, but not including life insurance or surety bonds nor insurance against loss by reason of bodily injury to the person arising out of ownership, maintenance or use of automobiles;

      • (C) Precious stones, jewels, gold, silver, and other precious metals, whether used in business or trade or otherwise and whether the same be in course of transportation or otherwise; and

      • (D) Bridges, tunnels and other instrumentalities of transportation and communication excluding buildings, their improvements and betterments, furniture and furnishings, fixed contents and supplies held in storage, including auxiliary facilities and equipment attendant thereto; piers; wharves, docks and slips; other aids to navigation and transportation, including dry docks and marine railways.

      For purposes of this chapter, “inland marine” insurance shall not include insurance of vessels, craft, their cargoes, marine builders” risks, commonly insured only under ocean marine insurance policies.
    • (21) “Marine protection and indemnity insurance” means insurance against, or against legal liability of the insured for loss, damage, or expense arising out of or incident to, the ownership, operation, chartering, maintenance, use, repair, or construction of any vessel, craft, or instrumentality in use in ocean or inland waterways, including liability of the insured for personal injury, illness or death, or for loss of, or damage to, the property of another person.

    • (22) “Residual value insurance” means insurance issued in connection with a lease or contract which sets forth a specific termination value at the end of the term of the lease or contract for the property covered by such lease or contract, and which insures against loss of economic value of tangible personal property or improvements thereto except loss due to physical damage to property.

    • (23) “Mortgage guaranty insurance” means insurance against financial loss by reason of nonpayment of any sum required to be paid under the terms of any instrument of indebtedness secured by a lien on real estate.

    • (24) “Credit unemployment insurance” means insurance on a debtor in connection with a specified loan or other credit transaction outside this Territory to provide payments to a creditor in the event of unemployment of the debtor for the installments or other periodic payments becoming due while a debtor is unemployed.

    • (25) “Financial guaranty insurance” means a surety bond, insurance policy or indemnity contract, and any guaranty similar to the foregoing, under which loss is payable, upon proof of occurrence of financial loss, to an insured claimant, obligee or indemnitee as a result of any of the following events:

      • (A) failure of any obligor on any debt instrument or other monetary obligation including common or preferred stock guaranteed under a surety bond, insurance policy or indemnity contract to pay when due, principal, interest, premium, dividend, or purchase price of or on, or other amounts due with respect to such instrument or obligation when such failure is the result of a financial default or insolvency, regardless of whether such obligation is incurred directly or as guarantor by or on behalf of another obligor that has also defaulted;

      • (B) changes in the levels of interest rates, whether short or long term or the differential in interest rates between various markets or products;

      • (C) changes in the rate of exchange of currency;

      • (D) changes in the value of specific assets or commodities, financial, or commodity indices, or price levels in general; or

      • (E) other events which the Commissioner determines are substantially similar to any of the foregoing.

    • (26) “Other or Substantially similar kind of insurance” means such insurance as the Commissioner determines to be substantially similar to one of the foregoing kinds of insurance and which, upon such determination, shall be deemed to be included in that kind of insurance or such other lines of insurance as the Commissioner deems appropriate for licensing.


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