Chapter 4

Question 1

Bill of Lading

Answer 1

A document issued by the carrier responsible
for transporting or forwarding the goods

Question 2

Agreed Value

Answer 2

A fair value of the shipment agreed to in advance
by the insured and insurer

Question 3

Freight

Answer 3

The money payable either for the hire of a vessel
or for the conveyance of cargo from one port to
another

Question 4

Actual Total Loss

Answer 4

A loss in which the subject property is totally lost
or is so badly damaged that it has no value left

Question 5

Constructive Total Loss

Answer 5

Occurs when the cost of salvaging the cargo is
too high relative to the value saved

Question 6

Particular Average

Answer 6

Involves a partial loss to a specific shipment,
other than a General Average

Question 7

General Average

Answer 7

Deals with payment for marine losses voluntarily
incurred for the safety of the entire venture.
The parties whose property was saved shall
contribute to the losses of the parties whose
property was sacrificed