Commercial Chp 5

Question 1

Inland Marine Insurance

Answer 1

insurance that covers many different classes of property that typically involve an element of transportation

Question 2

Marine Insurance

Answer 2

insurance that, in the united states includes both ocean and inland marine coverage and in the rest of the world is limited to insurance ro vessels and cargo

Question 3

Nationwide Marine Definition

Answer 3

statement of the types of property that may be insured on inland marine and ocean marine insurance forms

Question 4

Contractors equipment floater

Answer 4

a policy that covers mobile equipment or tolls while located anywhere in the coverage territory

Question 5

Builders Risk Policy

Answer 5

policy that covers a building in the course of construction including building materials and supplies while on or away from the building site

Question 6

Motor truck cargo liability policy

Answer 6

policy that covers a truckers liability for damage to cargo of others being transported by the trucker

Question 7

Difference in conditions (DIC) policy or DIC insurance

Answer 7

policy that covers on an “all risk” basis to fill gaps in the insured commercial property coverage, especially gaps in flood and earthquake coverage

Question 8

Cargo Insurance

Answer 8

insurance that covers loss of or damage to property shipped primarily by water or if in foreign trade, by air

Question 9

Hull Insurance

Answer 9

insurance that covers physical damage to vessels, including their machinery and fuel but not their cargo

Question 10

Protection and indemnity (P&I) insurance

Answer 10

insurance that covers shipowners against various liability claims due to operations the insured vessels

Question 11

General average

Answer 11

partial loss that must according to maritime law, be shared by all parties to a voyage ( cargo owners and vessel owner)

Question 12

Retention

Answer 12

a risk financing technique by which losses are retained by generating funds within the organization to pay for the losses