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Scopes Manual

Posted 01 Jun 2010 12:00:01

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8018 u

PHRASEOLOGY  STORE: WHOLESALE NOC

Description:

Store: Wholesale NOC applies to stores that are engaged in the wholesale selling of merchandise not described by a specialty wholesale store classification in the Basic Manual. Stores assigned to this classification sell items such as art supplies, books, candy, carpets and linoleum, cigars and cigarettes, computers—personal or home-type, cosmetic and toilet items, fur skins, giftware, greeting cards, hotel supplies, household appliances—small housewares, lamps and lighting fixtures, musical instruments, paint and related supplies, phonograph records, photographic supplies and equipment, pocketbooks, radios, televisions, stereophonic or high-fidelity equipment, sheet music, soft drinks, stationery and related items, tires (no installation), toys, pets, wines, and liquors.

Stores engaged principally in the wholesale or retail mail order sales of merchandise such as described above are also included in this classification. Since Code 8018 is an NOC classification, mail order sales of merchandise otherwise classified such as the mail order sales of drugs (Code 8047) are not included in Code 8018. Wholesale operations generally include the maintenance of warehouse inventories; the physical assembling, sorting, and grading of goods; the breaking of bulk quantities and repackaging into smaller lots; and the promoting of sales through utilization of an outside sales force. Other types of operations assigned to this classification are:

Fruit or Vegetable Stores—Wholesale applies to dealers engaged principally in the wholesale distribution of fresh fruits or vegetables. Such dealers, as a part of their wholesale operations, may also perform incidental repackaging of the merchandise into retail size bunches, boxes, bags, or similar containers. In addition, these dealers may also sell a minor amount of groceries, dairy products, and frozen foods. This classification also applies to the freezing of fresh fruits and vegetables.

Dealers engaged principally in the wholesale distribution of groceries, dairy products, and frozen foods with a minor amount of fresh fruits or vegetables shall be assigned to Code 8018—Grocery Stores—Wholesale.

Grocery Stores—Wholesale applies to dealers engaged principally in wholesale selling of groceries, frozen foods, or eggs including incidental sorting, candling, and grading—which are received and sold in cartons, cases, and boxes. Such dealers may also sell at wholesale a minor amount of dairy products, fresh fruit, vegetables, or other merchandise such as beer, soda, household cleaning supplies, or paper products.

In addition, this classification applies to wholesale egg dealers and includes incidental egg handling operations such as sorting, candling, grading, washing, and packing in cartons and crates for shipment.

Wholesale dealers principally engaged in selling fresh fruits or vegetables must be assigned to Code 8018—Fruit or Vegetable Stores—Wholesale.

Wholesale dealers principally engaged in selling soda, household cleaning supplies, or paper products must be assigned to Code 8018—Wholesale Stores NOC.

Code 8235 is applied to insureds engaged exclusively in buying, selling, and distributing kitchen cabinets and other assembled millwork products. If an insured does not deal exclusively in kitchen cabinets and other assembled millwork products, Code 8017—Store: Retail, Code 8018—Store: Wholesale, or Code 8044—Store: Furniture may be applicable to the risk. Code 8017 or Code 8018 is applicable if a store principally (not exclusively) sells kitchen cabinets and other assembled millwork products. Code 8044 is applicable if a minor amount of these products are sold by a furniture store.

Special Conditions:

Note: General Guide for Assignment of Classifications to Stores: Classifications that are considered stores have a ♦ next to their code numbers.

For the purpose of the application of workers compensation mercantile classifications, a mercantile business is defined as any store or dealer engaged in the sale of goods or merchandise. For mercantile businesses, the classification is determined separately for each location.

The assignment of a classification to a store is based upon the principal type of merchandise sold and whether the operations are wholesale or retail. The following definitions and instructions are to be observed in determining the appropriate store classification:

Exception: If it is determined that a store’s sales are clearly retail in nature, the appropriate retail store classification may be assigned regardless of the above definition of retail. Examples of this type of situation would be stores selling artwork or art supplies in a shopping mall when the majority of sales are to artists who use the materials in their business, or artwork purchased by businesses. In these cases, the stores would clearly be classified as retail except for the ultimate use or purchaser of the products.

Related Operations Not Classified to Code 8018:

Certain Code 8018 operations are designated as “not otherwise classified” (NOC). These NOC operations shall apply to an insured only when no other classification more specifically describes the insured’s operations. In addition to the above references, the following is a representative list of retail or combined wholesale and retail store operations that are not assigned to Code 8018:

In addition to this representative list, one should review sources such as the alphabetical index in this manual to determine whether a classification other than Code 8018 or a classification other than a classification on the above list is applicable to the operations being reviewed for classification purposes.

CROSS-REF.  BARBER OR BEAUTY PARLOR SUPPLY HOUSES

(N/A MA)

CROSS-REF.  EGG DEALERS—INCLUDING GRADING, CANDLING, PACKING—WHOLESALE

(N/A MA)

CROSS-REF.  FLOOR COVERINGS—WHOLESALE

CROSS-REF.  MILL SUPPLY DEALERS

(N/A MA)

CROSS-REF.  PACKAGING—CONTRACT

(N/A MA)

CROSS-REF.  PAINT STORES—WHOLESALE

CROSS-REF.  SOFT DRINK DISTRIBUTORS—WHOLESALE—NO BOTTLING

CROSS-REF.  STORE: PET AND PET SUPPLY—WHOLESALE

(N/A MA)

CROSS-REF.  STORE: FRUIT OR VEGETABLE—WHOLESALE

(N/A MA)

CROSS-REF.  STORE: GROCERY—WHOLESALE

(N/A MA)

CROSS-REF.  STORE: VEGETABLE OR FRUIT—WHOLESALE

(N/A MA)

CROSS-REF.  WALLPAPER STORES—WHOLESALE

CROSS-REF.  WELDING SUPPLY DEALERS

©  Copyright 1990–2010  National Council on Compensation Insurance, Inc. All Rights Reserved.

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