Commercial Marine Insurance

Question 1

The _______ is a guideline that classifies Inland Marine, Ocean Marine, and transportation exposures into categories of insurance, comprised of six classifications.

Answer 1

Nationwide Marine Definition

Question 2

Imports and exports are covered by _______ insurance, which insures the transportation of goods and merchandise by vessels crossing domestic and foreign waters.

Answer 2

Ocean Marine

Question 3

Ocean Marine policies are _______.

Answer 3

not standardized

Question 3

However, Ocean Marine policies are subject to ______ that, if breached, may void the policy.

Answer 3

implied warranties

Question 4

Ocean Marine The _______ warranty requires the shipped goods to be legal.

Answer 4

Legality

Question 5

Ocean Marine The _______ warranty requires competent crews and compliance with safety requirements.

Answer 5

seaworthiness

Question 6

Ocean Marine The _______ warranty requires the ship to sail a previously specified course, except in emergency circumstances.

Answer 6

no deviation from voyage

Question 7

Ocean Marine Any cargo must be _______ and packed properly.

Answer 7

In good condition

Question 8

Ocean Marine insurance offers four coverages. _______ insurance insures the ship itself against physical damage losses.

Answer 8

Hull

Question 9

Ocean Marine Insurance is usually written on a _______ basis, covering fire and lightning, explosion, heavy weather, piracy, and jettison.

Answer 9

named perils

Question 10

Ocean Marine: The _______ adds legal liability coverage for collision damage to other vessels.

Answer 10

Running Down Clause

Question 11

Ocean Marine: The _______ expands coverage to cover the bursting of boilers and the breaking of propeller shafts.

Answer 11

Incmaree Clause

Question 12

Ocean Marine: Hull coverage is typically written as an annual contract on an _______ basis.

Answer 12

agreed value

Question 13

_______ insurance covers physical damage losses to merchandise in transit.

Answer 13

Cargo

Question 14

_______ losses refer to partial losses to cargo.

Answer 14

Average

Question 15

_______ losses are sustained from voluntary sacrifice of cargo and other expenses that benefit everyone.

Answer 15

General Average

Question 16

Under the _______, captain and crew are legally allowed to jettison cargo when it is necessary to save people or cargo.

Answer 16

Sue and Labor Clause

Question 17

_______ losses are accidental partial losses that benefit one party’s interest.

Answer 17

Particular Average

Question 18

_______ insurance offers indirect loss coverage for freight charges or import duties that cannot be recovered after a loss to cargo.

Answer 18

Freight

Question 19

_______ insurance is Ocean Marine liability protection.

Answer 19

Protection and Indemnity

Question 20

Protection and Indemnity Insurance It covers the insured’s liability for bodily injury or death to passengers or people onshore and work-related injuries to _______ and non-crew workers other than those covered by Workers’ Compensation.

Answer 20

crew members

Question 21

Property in transit, _______, personal property floaters, and commercial property floaters are all covered by Inland Marine insurance, which covers property moving over land.

Answer 21

instrumentalities of transportation and communication

Question 22

_______, or filed, lines of coverage are forms and rates that must be filed by insurers with state insurance departments.

Answer 22

controlled

Question 23

Most forms are _______, or nonfiled, lines of coverage, meaning the forms and rates are not filed with an insurance department

Answer 23

uncontrolled

Question 24

Nonfiled Lines are also known as _______.

Answer 24

manuscripted lines

Question 25

Nonfiled Lines Coverage is typically written on an _______ basis.

Answer 25

open peril

Question 26

Common exclusions include governmental action, war, nuclear hazard, consequential loss, and _______.

Answer 26

criminal acts

Question 27

_______ is protected by various transportation coverage forms. Common and contract carriers have two forms available to them to insure property in their care, custody, and control.

Answer 27

Property in transit

Question 28

The _______ Coverage Form is used when a carrier owns the motor truck and uses it to transport property owned by others.

Answer 28

Motor Truck Cargo Truckers

Question 29

The _______ Coverage Form is used when the named insured owns both the motor truck and the cargo being insured.

Answer 29

Motor Truck Cargo Owners

Question 30

When a common carrier accepts property for transport, they issue a _______, which is a contract and receipt for goods in the carrier’s care.

Answer 30

bill of landing

Question 31

Even though carriers insure property in their care, the owners of the cargo may also want insurance coverage. The _______ Coverage Form is useful for insureds who ship or receive cargo throughout the year.

Answer 31

Annual Transit

Question 32

The _______ Coverage Form is useful for insureds who want to insure one shipment.

Answer 32

Trip Transit

Question 33

A number of commercial property floaters are available for various insureds. Businesses like dry cleaners and repair shops can protect their liability for customer’s property in their care by purchasing a _______.

Answer 33

Bailees Customers Coverage Form

Question 34

Cameras, projection machines, musical instruments, and similar items can be insured on the _______.

Answer 34

Commercial Articles Coverage Form

Question 35

Computers (other than laptops), data, media, and software is insurable under the _______.

Answer 35

Electronic Data Process Coverage Form

Question 36

Billboards and street clocks are insurable under the _______.

Answer 36

Signs Coverage Form

Question 37

Certain floaters are available for business who sell certain items. Jewelry retailers and manufacturers can purchase _______ coverage to protect their stock of watches, gold, pearls, and similar articles of property.

Answer 37

Jewelers Block

Question 38

Businesses that sell mobile equipment should purchase the _______.

Answer 38

Equipment Dealers Floater

Question 39

If a business uses mobile equipment, hand tools, or similar equipment in contracted work, that property is insurable under the _______.

Answer 39

Contractors Equipment Floater

Question 40

Electrical, plumbing, or heating equipment that is being installed can be insured under an _______.

Answer 40

Installation Floater

Question 41

Losses to important abstracts, books, deeds, maps, and similar documents can be protected by the _______.

Answer 41

Valuable Papers and Records Floater

Question 42

If business records are destroyed and that loss keeps the business from collecting money owed to them from customers, the _______ would pay those uncollected sums.

Answer 42

Accounts Receivable Coverage Form