Commercial Marine Insurance Flashcards
The _______ is a guideline that classifies Inland Marine, Ocean Marine, and transportation exposures into categories of insurance, comprised of six classifications.
Nationwide Marine Definition
Imports and exports are covered by _______ insurance, which insures the transportation of goods and merchandise by vessels crossing domestic and foreign waters.
Ocean Marine
Ocean Marine policies are _______.
not standardized
However, Ocean Marine policies are subject to ______ that, if breached, may void the policy.
implied warranties
Ocean Marine The _______ warranty requires the shipped goods to be legal.
Legality
Ocean Marine The _______ warranty requires competent crews and compliance with safety requirements.
seaworthiness
Ocean Marine The _______ warranty requires the ship to sail a previously specified course, except in emergency circumstances.
no deviation from voyage
Ocean Marine Any cargo must be _______ and packed properly.
In good condition
Ocean Marine insurance offers four coverages. _______ insurance insures the ship itself against physical damage losses.
Hull
Ocean Marine Insurance is usually written on a _______ basis, covering fire and lightning, explosion, heavy weather, piracy, and jettison.
named perils
Ocean Marine: The _______ adds legal liability coverage for collision damage to other vessels.
Running Down Clause
Ocean Marine: The _______ expands coverage to cover the bursting of boilers and the breaking of propeller shafts.
Incmaree Clause
Ocean Marine: Hull coverage is typically written as an annual contract on an _______ basis.
agreed value
_______ insurance covers physical damage losses to merchandise in transit.
Cargo
_______ losses refer to partial losses to cargo.
Average
_______ losses are sustained from voluntary sacrifice of cargo and other expenses that benefit everyone.
General Average
Under the _______, captain and crew are legally allowed to jettison cargo when it is necessary to save people or cargo.
Sue and Labor Clause
_______ losses are accidental partial losses that benefit one party’s interest.
Particular Average
_______ insurance offers indirect loss coverage for freight charges or import duties that cannot be recovered after a loss to cargo.
Freight
_______ insurance is Ocean Marine liability protection.
Protection and Indemnity
Protection and Indemnity Insurance It covers the insured’s liability for bodily injury or death to passengers or people onshore and work-related injuries to _______ and non-crew workers other than those covered by Workers’ Compensation.
crew members
Property in transit, _______, personal property floaters, and commercial property floaters are all covered by Inland Marine insurance, which covers property moving over land.
instrumentalities of transportation and communication
_______, or filed, lines of coverage are forms and rates that must be filed by insurers with state insurance departments.
controlled
Most forms are _______, or nonfiled, lines of coverage, meaning the forms and rates are not filed with an insurance department
uncontrolled
Nonfiled Lines are also known as _______.
manuscripted lines
Nonfiled Lines Coverage is typically written on an _______ basis.
open peril
Common exclusions include governmental action, war, nuclear hazard, consequential loss, and _______.
criminal acts
_______ is protected by various transportation coverage forms. Common and contract carriers have two forms available to them to insure property in their care, custody, and control.
Property in transit
The _______ Coverage Form is used when a carrier owns the motor truck and uses it to transport property owned by others.
Motor Truck Cargo Truckers
The _______ Coverage Form is used when the named insured owns both the motor truck and the cargo being insured.
Motor Truck Cargo Owners
When a common carrier accepts property for transport, they issue a _______, which is a contract and receipt for goods in the carrier’s care.
bill of landing
Even though carriers insure property in their care, the owners of the cargo may also want insurance coverage. The _______ Coverage Form is useful for insureds who ship or receive cargo throughout the year.
Annual Transit
The _______ Coverage Form is useful for insureds who want to insure one shipment.
Trip Transit
A number of commercial property floaters are available for various insureds. Businesses like dry cleaners and repair shops can protect their liability for customer’s property in their care by purchasing a _______.
Bailees Customers Coverage Form
Cameras, projection machines, musical instruments, and similar items can be insured on the _______.
Commercial Articles Coverage Form
Computers (other than laptops), data, media, and software is insurable under the _______.
Electronic Data Process Coverage Form
Billboards and street clocks are insurable under the _______.
Signs Coverage Form
Certain floaters are available for business who sell certain items. Jewelry retailers and manufacturers can purchase _______ coverage to protect their stock of watches, gold, pearls, and similar articles of property.
Jewelers Block
Businesses that sell mobile equipment should purchase the _______.
Equipment Dealers Floater
If a business uses mobile equipment, hand tools, or similar equipment in contracted work, that property is insurable under the _______.
Contractors Equipment Floater
Electrical, plumbing, or heating equipment that is being installed can be insured under an _______.
Installation Floater
Losses to important abstracts, books, deeds, maps, and similar documents can be protected by the _______.
Valuable Papers and Records Floater
If business records are destroyed and that loss keeps the business from collecting money owed to them from customers, the _______ would pay those uncollected sums.
Accounts Receivable Coverage Form
