Actual Cash Value BM 99 59

 

When an insured or the insurer, for underwriting reasons on older equipment, wishes to insure property loss by covered accidents on an actual cash value (ACV) basis rather at full replacement cost, endorsement BM 99 59 07 01 is used. The endorsement contains a schedule of locations and covered equipment to be insured for ACV. Under this endorsement, the insurer agrees to pay the amount spent by the named insured to repair or replace covered property that is directly damaged by a breakdown. But this payment will be the lesser of: the cost to repair or replace the damaged property with property of same kind, capacity, size or quality; or, actual cash value of the damaged property.

 

The valuation of covered property will be as of the time of breakdown. And, the insurer will not pay for damaged property that is obsolete and useless to the named insured.

 

Amendment of Declarations BM 99 51

 

This endorsement simply modifies the declarations page that accompanies BM 00 20 07 01, the equipment breakdown protection coverage form. The insured uses this endorsement to change the amounts, limits, and days for specific coverages. For example, if the insured originally chose a $100,000 limit of insurance for property damage coverage and then, in the middle of the policy period, wants that limit changed to $200,000, BM 99 51 07 01 can accomplish this task.

 

Pressure or Vacuum Equipment BM 99 55

 

This endorsement deletes the definition of covered equipment on BM 00 20 in its entirety. BM 99 55 07 01 then defines covered equipment as any equipment built to operate under internal pressure or vacuum. The equipment must be subject to mandatory state or municipal jurisdictional inspection, and must be located where the inspection requirements can be conducted by an authorized insurance company inspector.

 

Production Machinery Exclusion BM 99 57

 

BM 99 57 07 01 also changes the definition of covered equipment on BM 00 20. The definition is amended to include the following: covered equipment does not mean production or process machines or apparatus that processes, forms, cuts, shapes, grinds, or conveys raw materials, materials in process or finished products.

 

Refrigeration Interruption Coverage BM 15 39

 

Through the use of this endorsement, the insurer agrees to pay for the spoilage damage to the named insured's owned refrigerated covered property described in the endorsement's schedule. The property has to be in storage at the premises indicated on BM 15 39 07 01, and the damage has to be caused by or result from: the lack or excess of refrigeration due to a breakdown to covered equipment; or, the contact with or the permeation by a primary or secondary refrigerant due to a breakdown to covered equipment.

 

BM 15 39 is meant to be used on a reporting basis, so BM 15 40 07 01, refrigeration interruption—report of values, accompanies BM 15 39.

 

Report of Total Insurable Value BM 99 53

 

This endorsement is used when the equipment breakdown protection rating program requires the use of total insurable value. BM 99 53 07 01allows the insured to list the total insurable value for property at the premises scheduled on the endorsement. The value to be used is the current replacement value of all property at the premises, excluding stock.

 

Turbine Units Explosion Coverage BM 99 52

 

Endorsement BM 99 52 07 01 deletes the definitions of breakdown and covered equipment on BM 00 20 in their entirety. These terms are then defined as follows.

 

Breakdown means a sudden and accidental explosion of any casing, combustor, duct, piping, precooler, intercooler, regenerator, or heat exchanger, forming a part of a gas turbine. The explosion must be caused by pressure of gas, liquid or vapor within these items. BM 99 52 goes on to list eight things that breakdown does not mean, such as wear and tear, loosening of any assembled parts, and depletion, deterioration, corrosion or erosion of material.

 

Covered equipment is defined as any turbine unit, including auxiliary steam turbine; combustor, duct, piping, or heat exchanger forming a part of a gas turbine; or a compressor or pump on any shaft of the driving turbine.