Chapter 4 Definitions

Question 1

Bill of lading

Answer 1

A detailed list of shipment of goods in the form of a receipt given by the carrier to the person consigning the goods

Question 2

Agreed value

Answer 2

The amount the insurer will reimburse when the insured item is damaged or lost

Question 3

Freight

Answer 3

Transport goods in bulk by truck train ship or aircraft

Question 4

Actual total loss

Answer 4

Occurs when an insured property is destroyed or damaged to such an extent that it can be neither recovered nor repaired for further use

Question 5

Constructive total loss

Answer 5

The damage is so expensive the repairs would equal or surpassed the cost of the property or it’s insurance limit

Question 6

Particular average

Answer 6

One that is borne by the owner of the lost or damaged property

Question 7

General average

Answer 7

All sea cargo stakeholders evenly share damage or losses that may occur as a result of voluntary sacrifice in an emgergency