Unit 12 Commercial Inland Marine Insurance

Question 1

Name the 6 categories of eligible marine risks:

Answer 1

1. Imports
2. Exports
3. Personal floaters
4. Domestic shipments
5. Instrumentalities of transportation and communication
6. Commerical property floater risks

Question 2

Which two of the six eligible marine risks are covered by Ocean Marine Insurance?

Answer 2

Imports and Exports

Question 3

Which one of the six eligible marine risks are covered by Personal Inland Marine Insurance?

Answer 3

Personal floaters

Question 4

Name the three categories of eligible marine risks that ARE covered by Commercial Inland Marine Insurance?

Answer 4

1. Domestic Shipments
2. Instrumentalities of transportation or communication
3. Commercial floater risks

Question 5

____ include forms that cover property such as bridges, pipelines, and television towers.

Answer 5

Instrumentalities of Transportation or Communication

Question 6

____ embrace a number of subcategories of inland marine forms, including bailee’s customer forms, equipment forms, and business floaters.

Answer 6

Commercial Property Floater Risks

Question 7

Can Commerical Inland Marine Insurance be included in a Commercial Package Policy?

Answer 7

Yes

Question 8

Is CIMI open or named?

Answer 8

Open Peril

Question 9

Insured must send a worn statement of loss within ____ days after loss payment request.

Answer 9

60 Days

Question 10

The ____ coverage form defines covered property as cameras, projection machines, films, musical instruments, and related equipment, and accessories that are in the insured’s care, custody, or control. This coverage provides insurance for professional photographers and musicians.

Answer 10

Commercial Articles Coverage Form

Question 11

Commercial Articles Coverage Form: Additional acquired property is automatically covered for up to ____ days if it a type of property already covered by the form. In the event of loss, the insurer will pay the lesser amount of 25% of the policy limit or $____.

Answer 11

30 days, $10k

Question 12

Accounts Receivable Coverage Form: are accounts receivable records in storage away from the premises covered?

Answer 12

No

Question 13

Accounts Receivable Coverage Form - True or False: Any loss that requires an audit of records or inventory computation to prove its existence is not covered.

Answer 13

True

Question 14

The ____ coverage form reimburses the insured for the cost of replacing damaged items, such as manuscripts, films, maps, drawings, deeds, and books that belong to the insured or are in the insured’s care, custody, or control. Architects, engineering businesses, or movie production companies may need this coverage.

Answer 14

Valuable Papers and Records Coverage Form

Question 15

Commercial property insurance only covers outdoor signs attached to the building and is subject to a $____ per sign limit. Damage during shipping or installation is ____. Attached and detached signs are covered.

Answer 15

$2500, Not Covered

Question 16

The ____ coverage form covers the insured’s trade stock, which includes jewelry, precious and semiprecious stones, precious metals and alloys, and other stock used in the business. Contains two optional coverages.
1. ____ coverage covers theft of stock from a show window when the window is cut or smashed.
2. ____ coverage covers theft of money from locked safes or vaults on the insured’s premises

Answer 16

Jewelers Block Coverage Form
1. Show Window Coverage
2. Money Coverage

Question 17

Jewelers Form Block Coverage does not automatically cover the property when…(3)

Answer 17

1. Being exhibited in showcases or show windows away from the premises
2. While being worn by the insured, employee, or family member. (does not apply to watches worn solely for purposes of adjustment.
3. In transit by mail (unless by registered mail)

Question 18

Jewelers Block Coverage Form: The insured must take a physical inventory at least once every ____ months and maintain detailed records of inventory, purchases, sales, property of others, and property off premises. These records must be retained for ____ years after the policy ends.

Answer 18

12 Months

Question 19

Jewelers Block Form Coverage - the insured must maintain any protective safeguards that we in effect at the beginning of the policy period. If the insured fails to keep these safeguards in working condition and in operation when the business is closed, coverage at that location is ____ until the protective safeguards are back in operation.

Answer 19

Suspended

Question 20

Jewelers Block Form Coverage - is water damage covered?

Answer 20

No

Question 21

Jewelers Block Form Coverage - is theft of the property from a vehicle covered?

Answer 21

Only if the insured, an employee, or another person whose only duty is to attend the vehicle is actually in or on the vehicle when the theft occurs.

Question 22

Jewelers Block Form Coverage - is unexplained disappearance covered?

Answer 22

No

Question 23

Jewelers Block Form Coverage - is shortage found upon taking inventory covered?

Answer 23

No

Question 24

Jewelers Block Form Coverage - is breakage of fragile articles covered?

Answer 24

No

Question 25

The ____ coverage form is used to cover dealers of mobile equipment and construction equipment. It covers the dealer’s stock in trade, consisting primarily of mobile agricultural equipment and construction equipment. It also covers the property of others in the dealer’s care, custody, or control.

Answer 25

Equipment Dealers Coverage Form

Question 26

Equipment Dealers Coverage Form - are machinery, tools, molds, or models covered?

Answer 26

No

Question 27

Equipment Dealers Coverage Form - is collapse, theft, or attempted theft from the building covered?

Answer 27

Yes

Question 28

Businesses that ship or receive merchandise need coverage against loss to their cargoes while they are in transit. Common carriers must accept a certain amount of liability for losses to cargo. (These obligations are set forth in the ____, which must be issued to each business for whom the carrier ships goods.)

Answer 28

Bill of Lading

Question 29

The ____ policy protects the shipper or receiver of goods against loss to goods in transit. Coverage is available on a named-peril basis, protection against such losses as fire, windstorm, collision, and theft, or on an open-peril basis.

Answer 29

Annual Transit Policy

Question 30

The ____ policy is similar to the annual transit policy. However, it is used to insure single shipments of goods for companies with only occasional shipments. Coverage extends from the time and point of origination to the time and point of destination.

Answer 30

Trip Transit Policy

Question 31

The ____ coverage is liability insurance that covers cargo up to a set monetary limit that the trucker determines when he buys a policy. In addition to paying for the cost of the lost or damaged cargo itself, some policies also pay costs to remove debris or pollutants caused by the debris, if a load accidentally lands on a roadway or waterway.

Answer 31

Motor Truck Cargo Coverage

Question 32

Motor Truck Cargo Coverage - the carrier has a responsibility to deliver goods entrusted to it unharmed. There are only a few things, such as acts of God (____ and ____) or the shipper’s own neglect (____) for which the carrier is not liable. This form is sometimes called the motor truck cargo - truckers form.

Answer 32

Floods, Tornadoes, Poor Packing

Question 33

A variation of motor truck cargo insurance provides coverage known as owner’s goods on owner’s trucks to companies that transport their own goods. It provides direct damage coverage instead of liability coverage. This form may also be called the ____ or ____

Answer 33

Motor Truck Cargo - Shippers Form

Motor Truck Cargo - Owner’s Form

Question 34

Instrumentalities of Transportaion and Communication Coverage covers things like (3)

Answer 34

Bridges, Tunnels, Cell Towers

Question 35

____ is the delivery of property by the owner to someone else to be held for a special purpose, and then to be returned to the owner. The ____ is the one who receives the property; the one who owns the property is the ____.

Answer 35

Bailment, Bailee, Bailor

Question 36

The ____ policy pays the insured’s customer for damage to a customer’s property that is in the insured’s care, regardless of whether the insured is liable for the damage, as long as the damage resulted from a covered peril. This policy does not pay the insured, it pays the customer.

Answer 36

Bailee’s Customer Policy

Question 37

The ____ policy is an inland marine coverage that insures against loss to machinery, equipment, building materials, and supplies to transit to, being used with, or during the course of installation, testing, building, renovating, or repair.

Answer 37

The ____ floater provides open-peril coverage for computer hardware, software, and data that is owned by the insured or in the insured’s care, custody, or control. Property in transit is covered. Extra expense and business interruption coverage is also included.