Exam 2: Inland Marine Part B

Question 1

Inland Marine?

Answer 1

Domestic shipments by rail, truck, aircraft or in custody of US Postal Service while in transit

Question 2

Originator

Answer 2

Shipper

Question 3

Trasnporter

Answer 3

Carrier

Question 4

Common Carrier

Answer 4

Postal Service, Fedex

Question 5

Contract Carrier

Answer 5

Carrier for specific purposes; can refuse some clients

Question 6

Private Carrier

Answer 6

Haul their own goods liability not as much of an issue

Question 7

Liability of Common Carriers

Answer 7

can be held liable for safe delivery of cargo entrusted to them

Question 8

Liability Exceptions for Common Carriers

Answer 8

• Acts of god
• Acts of public enemies
• Fault of the shipper

Question 9

Bill of Lading (Common Carrier)

Answer 9

contract may limit the liability of the insurer (contract usually)

Question 10

Straight Bill (Common Carrier)

Answer 10

No limit on recovery

Question 11

Released Value Bill (Common Carrier)

Answer 11

Limits recovery to a certain amount

Question 12

Liability of Contract Carriers

Answer 12

• often specified by a contract

- FOB point - Freight on board

Question 13

Bailment

Answer 13

Temporary possession of personal property of another’s property for a specific purpose

Question 14

Bailor

Answer 14

Owner of personal property

Question 15

Bailee

Answer 15

party, possessing the property in bailment

Question 16

Causes of Loss

Answer 16

• Most Inland Marine Policies have all risk

- exposures not always similar to normal property policies

Question 17

Key Risks in Inland Marine

Answer 17

• Theft
• Breakage
• Damage: Water

Question 18

Filed Classes

Answer 18

Rates and forms are filed within the state

Question 19

Who needs protection in filed classes?

Answer 19

small and medium sized businesses

• don’t have risk managers or brkoers
• many use agents; works for insurance company
• Large number of potential insureds; pool risk and bulk

Question 20

Non-Filed Classes

Answer 20

• Large Companies
• Small number of insureds
• Diverse Exposures’
• Flexibility for coverages

Question 21

Warehouse Operators Legal Liability Policy

Answer 21

• covers liabilityt while stored in your warehouse
• only if you are legally liable
• only pays if you are liable

Question 22

Bailee’s Customer’s Policy

Answer 22

• Covers goods of customers while in your possession regardless of whether you are legally liable
• Preserves customers good will

Question 23

Transit Coverage

Answer 23

covers owner’s property that they ship with a carrier or property being shipped in their own vehicles

Question 24

Trip -Transit

Answer 24

Very specific shipments for occasional shippers

Question 25

Annual Transit

Answer 25

• year round policy

- need for frequent shippers

Question 26

How is Annual Transit Valued?

Answer 26

Invoice price if available; if not then ACV

Question 27

Where does Annual Transit Cover Shipments?

Answer 27

Within the Continental United States