Exam 2: Inland Marine Part B Flashcards
Inland Marine?
Domestic shipments by rail, truck, aircraft or in custody of US Postal Service while in transit
Originator
Shipper
Trasnporter
Carrier
Common Carrier
Postal Service, Fedex
Contract Carrier
Carrier for specific purposes; can refuse some clients
Private Carrier
Haul their own goods liability not as much of an issue
Liability of Common Carriers
can be held liable for safe delivery of cargo entrusted to them
Liability Exceptions for Common Carriers
- Acts of god
- Acts of public enemies
- Fault of the shipper
Bill of Lading (Common Carrier)
contract may limit the liability of the insurer (contract usually)
Straight Bill (Common Carrier)
No limit on recovery
Released Value Bill (Common Carrier)
Limits recovery to a certain amount
Liability of Contract Carriers
- often specified by a contract
- FOB point - Freight on board
Bailment
Temporary possession of personal property of another’s property for a specific purpose
Bailor
Owner of personal property
Bailee
party, possessing the property in bailment
Causes of Loss
- Most Inland Marine Policies have all risk
- exposures not always similar to normal property policies
Key Risks in Inland Marine
- Theft
- Breakage
- Damage: Water
Filed Classes
Rates and forms are filed within the state
Who needs protection in filed classes?
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
Non-Filed Classes
- Large Companies
- Small number of insureds
- Diverse Exposures’
- Flexibility for coverages
Warehouse Operators Legal Liability Policy
- covers liabilityt while stored in your warehouse
- only if you are legally liable
- only pays if you are liable
Bailee’s Customer’s Policy
- Covers goods of customers while in your possession regardless of whether you are legally liable
- Preserves customers good will
Transit Coverage
covers owner’s property that they ship with a carrier or property being shipped in their own vehicles
Trip -Transit
Very specific shipments for occasional shippers
Annual Transit
- year round policy
- need for frequent shippers
How is Annual Transit Valued?
Invoice price if available; if not then ACV
Where does Annual Transit Cover Shipments?
Within the Continental United States
