Inland Marine Flashcards
Bailee’s Customer Floater
A bailee’s commercial property floater protects the bailee from damages that may occur to someone else’s property while in possession of the bailee.
Dry cleaner and laundry policies, furrier policies, and warehouse / storage policies are examples of bailee policies.
Contractors Equipment Floater
Contractors equipment floaters provide coverage to the very expensive machinery used in construction while it is being transported, while it is on-site, or while it is in storage.
Contractors equipment floaters can be used to insure tractors, backhoes, pavers and other expensive items used by contractors.
Commercial Articles Floater
Commercial articles floaters cover a variety of unrelated specialty items, including musical instruments, photography equipment, and film equipment.
Floor Plan Floater
Floor plan policies covers financed merchandise in the possession of a dealer.
Cold Storage Locker Floater
Protects perishable items held in cold storage.
“Block” Policies
Block policies are used by furriers and jewelers to protect inventories.
Inland Marine Insurance
is designed to indemnify an insured party for losses to property in transport, and for insuring items involved in the transportation of goods.
instrumentalities of transportation and communication
bridges tunnels antennas and towers for radio and TV dams piers and docks pipelines power transmission lines
Domestic Shipments
Domestic shipment policies protect the business from losses that occur during shipment or transport of goods. This can include travel by truck, train, ship, mail, or plane.
Annual Transit Policies
The coverage protects all of a company’s incoming and outgoing shipments usually over the course of a year.
Trip Transit Policies
Trip transit policies insure a single shipment of goods from the time they are received to the time they are released.
Trip transit policies are frequently used for rare or valuable shipments.
Motor Truck Cargo Policies
Motor truck cargo policies protect the carrier from damages to goods in their care and custody while in transport. A motor truck cargo policy expires once the goods have reached their final destination and have been inspected by the receiver of property.
Mail Coverage Policies
Businesses and individuals often use mail coverage policies when shipping jewelry, valuable papers and documents, or other important items through the mail.
Personal Property Floaters
These insurance policies are written on a single policy form called a Personal Articles Floater, or PAF.
PAFrs all share the same characteristics:
cover property on an open-peril basis (not named-peril policies!)
there is no deductible
coverage is worldwide
valuation is determined by the lesser of the following: actual cash value; the cost to repair or replace; coverage limits.
subject to “pair and set” provision.
pair and set provision
The pair and set provision of a inland marine policy dictates that if part of a set, or an instrumental part of a whole is lost or destroyed, the policy can pay to replace, restore or repair the set or pay the difference of the actual cash value before and after the loss.
Hull Coverage
Hull policies provide insurance coverage to indemnify the policyholder for damages to, and loss of, a marine vessel. Subject to AVG Deductible or Franchise deductible.
franchise deductible
A franchise deductible provides no insurance coverage to a policyholder until a certain level of financial damage or loss is met, at which point the policy would pay the full costs damage.
Cargo Coverage
Cargo is defined as the actual goods or property being shipped.
Cargo coverage provides insurance protection to the goods and property in transport.
Freight Insurance
Freight insurance protects the vessel owner in the event the freight costs are not paid. freight is defined as the charge made for shipping cargo.
Actual Total Loss
An actual total loss refers to insured items that have either completely disappeared or are not salvageable. A hull or cargo that has sunk to the bottom of the ocean would be considered an actual total loss.
Constructive Total Loss
A constructive total loss refers to insured items that have been damaged beyond repair, or to items where the cost to salvage and repair would exceed the value of the item.
General Average Clause
The general average clause obligates the insurers of various interests to share the cost of losses associated with a captain’s decision to voluntarily sacrifice a part of the ship or its cargo in order to save the ship or all its cargo from certain destruction.
Free of Particular Average Clause
Essentially the FPA clause serves as a deductible for cargo, as it limits the liability of the insurer to losses that exceed a specific percentage (usually 10%) of the value of the insured items.
Free on Board
When cargo is shipped free on board (F.O.B), the seller of goods assumes responsibility for the transportation costs of cargo up until it reaches the established destination point.
