Inland Marine Part 1

Question 1

What are the three types of bailment?

Answer 1

Gratuitous bailment for the benefit of the bailor
Gratuitous bailment for the benefit of the Bailee
Bailment for the mutual benefit of the bailor and Bailee

Question 2

What’s the difference between Bailee coverage on legal liability basis or direct damage basis?

Answer 2

Legal Liability only pays if the Bailee is legally liable for a loss
Direct Damage pays regardless of who is at fault for damages

Question 3

What property is not covered by the miscellaneous Bailee processor floater

Answer 3

Aircraft or watercraft
Jewelry
Money and Securities
Self propelled vehicles for highway use

Question 4

What are some exclusions to the miscellaneous Bailee processor floater

Answer 4

Civil Authority
Earth Movement
Flood
Nuclear Hazard
Sewer Backup
War

Question 5

How do you value the loss of a pair or set?

Answer 5

The loss payment is proportional to the value of the pair, not the total value.