CAIB - Chapter 5 Flashcards
Catastrophe limit
The maximum amount the Insurer will in only one disaster or occurence
Mysterious disappearance
disappearance under circumstances that can’t be explained
Ordinary Care
The level of care a bailee should take. They are required to take care of the goods the same way a prudent and diligent owner would.
Bailee for Hire
Someone who has temporary custody of the property for purposes other than sale and they are being compensated for it.
Common carrier
Includes airlines, railroads, trucking companies and others that provide services to the public.
Standard (Ordinary) Bill of Lading
One of the three bills of lading used to reflect the amount for which the common carrier will be held legally liable under the tariff.
valued bill of lading
this serves to increases the carrier liability - this is usually requested by the owner of the goods when they are shipping something that exceed the value stated in the Standard bill of lading
released bill of lading
this releases the carrier form any liability for the goods being transported
contract carrier
Carriers that carry the goods of certain customers who they have a contract with
private carrier
They carry their owns with their own vehicles.
Three examples of businesses which have a bailee exposure
Dry cleaners
Shoe shop repair
Laundries
The two areas that Inland transportation insurance covers
In transit and during delays incidental to transit
Two factors that should be considered when determining who should purchase transportation Insurance coverage for a particular shipment
It needs to be determined who would be held responsible in case the goods are damaged and to what extent
what is a common carrier
airlines, railroads, trucking companies that deliver goods to the general public seeking their servicees
What responsibility is owned to owner by the common carriers
They are liable to safe delivery the goods entrusted to them.
Factors considered by the Insurer when determining the premium to be charged
Distance travelled, method of transportation, nature of the property
Why owner of property might not rely on carrier’s insurance
Because the coverage might not be broad enough. Also the coverage might not have adequate amount of insurance. The policy could also have been lapsed or cancelled
Advantages of purchasing own transportation insurance
Faster claim service
They might save money on the premium
It provides broader perils insured against
prospects for the Tool Floater Rider
Contractors
mechanics
Carpenters
Two exclusions under the tool floater Rider
Mysterious disappearance
loss or damage to electrical apparatus
