Domestic shipments (non-filed).
  (1) Inland marine policies may cover domestic shipments on consignment while in transit.
    (A) Domestic shipments on consignment for sale or distribution for account of the consignor may be covered with no restriction as to time in storage or deposit. The shipments may be covered while in the custody of others. Coverage may also include return shipments. Coverage may not extend to premises owned, leased, or controlled by the consignor.
    (B) Domestic shipments on consignment for sale or distribution for account of the consignee may be covered while in the custody of others and may include return shipments. Coverage may extend to premises owned, leased, or controlled by the consignee for no more than 120 days. If coverage is issued jointly to consignee and consignor, the same 120-day limitation applies to the consignee's interest.
    (C) Domestic shipments on consignment for account of the consignor or consignee for exhibition, trial, approval, or auction may be covered with no restriction as to time in storage or deposit or on exhibition. The shipments may be covered while in the custody of others. Coverage may also include return shipments.
  (2) Inland marine policies may cover domestic shipments not on consignment while in transit.
    (A) Domestic shipments not on consignment may be covered without restriction as to time in storage or deposit while at premises of transportation companies or freight forwarders. A "freight forwarder" is a warehouse or transportation business that takes custody of the property of others for storage and transport either by schedule or upon call.
    (B) Domestic shipments limited to used furniture and fixtures or used household furniture may be covered without restriction as to time in storage or deposit while in transit and awaiting determination or availability of the final destination. These policies may not cover the property after delivery to the final destination and may not include merchandise held for sale.
    (C) In all other situations, domestic shipments not on consignment may be covered for not more than 120 days at any place of storage or deposit operated by the insured. Coverage at points of sales distribution or at the manufacturing premises of the insured may be written without restriction of time in storage. Policies may not include fire and extended coverage at points of sales distribution or manufacturing premises.

Source Note: The provisions of this §5.5004 adopted to be effective June 4, 2023, 48 TexReg 2723