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CAIB 3 > Key Terms > Flashcards

Key Terms Flashcards

1
Q

Actual Total Loss

A

Property is totally lost or so badly damaged that there is no value left

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2
Q

Aggregate Limit

A

The maximum amount the policy will pay during the policy period

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3
Q

Agreed Value

A

A fair value agreed upon by the insurer and insured in advance of the shipment

Note: Ocean Marine cargo provides coverage on an Agreed Value basis

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4
Q

Bill of Lading

A

A document issued by the carrier that serves as a receipt for goods, document of title, or a contract of carriage

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5
Q

Breach of Contract

A

A failure to perform any contractual promise either in whole or in part without a legal excuse

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6
Q

Civil Law

A

Law concerning private rights and remedies

Note: consists of tort & contract law

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7
Q

Compensatory Damages

A

Damages awarded to compensate the injured party for bodily injury or property damage

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8
Q

Consent of Surety

A

A promise that if the bidder was successful, the surety will issue further bonds as required to ensure contract performance

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9
Q

Constructive Total Loss

A

When the cost of salvaging the cargo is higher than the value saved

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10
Q

Contract Bond

A

Bond intended to guarantee the fulfilment of contractual obligations

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11
Q

Contractual Transfer

A

Using funds from outside the business to pay for losses

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12
Q

Damages

A

Awards determined by courts, monetary compensation for damages suffered

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13
Q

Defamation

A

Publicized statements, either written or verbal, that caused unjustified injury to someone’s reputation

Note: causing loss of esteem, confidence, respect or good will

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14
Q

Doctrine of Negligence

A

The duty of all persons to exercise due care in their conduct towards others where injury may result

Note: basically, if you’re doing something that may result in injury towards others (i.e. driving), you are required to exercise due care

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15
Q

Duplication

A

Duplicating stand-by assets kept in reserve to be used when the primary asset is destroyed (i.e. have backup servers)

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16
Q

Easement

A

The right to use another person’s land

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17
Q

Exemplary or Punitive Damages

A

Damages awarded as a way to punish or make an example of the defendant

Note: they’re rarely used in Canada but most often appear when violence, fraud, malice, wanton or callous conduct, or other aggravating factors are involved

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18
Q

Expediting Costs

A

Costs incurred to speed up business recovery after a loss

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19
Q

False Arrest

A

False imprisonment with the intention of turning that person into police

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20
Q

False Imprisonment

A

To hold someone without lawful justification

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21
Q

Freight

A

The cost of hiring a vessel or delivering goods from 1 port to another

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22
Q

General Average

A

A partial loss voluntarily incurred for the safety of the entire voyage

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23
Q

General Damages

A

Damages that cannot be exactly quantified but rather is based on what the court deems necessary to fairly compensate the wronged party

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24
Q

Going Concern Value

A

Value of an object based on the revenue it produces had the business continued

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25
Q

Intangible Property

A

Property with no physical substance (i.e. legal rights like trademarks)

26
Q

Libel

A

Written defamation

27
Q

License

A

Ensures businesses operate in accordance with regulations. Licenses serve as a way to regulate license-holders and generate revenue for government

28
Q

Loss Exposure

A

A chance of financial loss resulting from a peril that damages something valuable

29
Q

Malicious Prosecution

A

A person was arrested and later released and it was shown that the person making the criminal complaint had no honest belief that a crime has been committed and the motivation for making the complaint was malicious (i.e. to see the person harassed or humiliated)

Note: basically, the person was arrested & released, there was no honest belief of a crime, and the criminal complaint was motivated by improper reasons

30
Q

Negligence

A

Failure to exercise reasonable care, acts or omissions that don’t measure up to the standard of a reasonable and prudent person given the circumstances

a. Note: basically, you were careless

31
Q

Net Worth

A

Amount of money remaining after all assets have been liquidated and liabilities paid

32
Q

Nominal Damages

A

The awarding of minimal amounts to establish the validity of a plaintiff’s claim where no substantial loss has occurred

Note: used to discourage litigation when legal fees exceed the potential award

33
Q

Non-statutory Bond

A

A bond not required by law but rather as part of a contract or agreement

34
Q

Nuisance

A

Anything that endangers life or health, offends the senses, violates the laws of decency, or interferes with the reasonable and comfortable use of property

35
Q

Obligee

A

The party to whom someone else is obligated

36
Q

Occupier

A

Someone who has immediate supervision and control of the premises

Note: if you can admit or bar people from entering, you are the occupier

37
Q

Particular Average

A

A partial loss to a specific shipment

38
Q

Penalty

A

The bond “limit”. The amount of credit given to the principal by the surety.

39
Q

Permit

A

Serve the same purpose as licenses but are required before doing certain things

40
Q

Principal

A

The person primarily liable for performing the contract

41
Q

Retention

A

Using funds from within the business to pay for losses

42
Q

Risk Control

A

Steps taken to reduce the frequency & severity of losses (using the resources available)

43
Q

Risk Financing

A

Methods of paying for losses that occur

44
Q

Risk Management

A

Application of a rational process to minimize the negative effects of losses

45
Q

Rule of Precedent

A

Court decisions made following rulings made in similar past cases

46
Q

Segregation

A

Arranging business activities/resources so that one loss can’t cause a loss to all

47
Q

Separation

A

Dividing assets or operations into many separate units

48
Q

Slander

A

Spoken defamation

49
Q

Special Damages

A

Out of pocket expenses, damages that can be quantified (i.e. medical bills, travel expenses, lost earnings)

50
Q

Statute Law

A

Written law created by federal or provincial legislation

51
Q

Statutory Bond

A

Bond required by municipal ordinance

52
Q

Strict Liability

A

When doing a dangerous activity, the person is presumed legally liable for any injury or damage

53
Q

Surety

A

The state of being sure OR the party that pays money or does some other act if the principal fails his duty

54
Q

Surety Bond

A

An undertaking by one party to become accountable to another party for the performance of an obligation by a 3rd party

55
Q

Suretyship

A

A guarantee of performance made by one party for another

56
Q

Tangible Property

A

Property that is real, has substance, and can be touched

57
Q

Tort

A

Wrong or injury other than breach of contract

58
Q

Total Loss of a Part

A

A total loss to one shipper’s cargo or to 1 shipment

Note: (i.e. the loss of 1 shipping container)

59
Q

Trespass

A

Unlawful interference with someone’s rights, person or property

60
Q

Working Capital

A

Funds available to pay continuing business expenses until payment is received for current work

CAIB 3 (7 decks)

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