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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
Intangible Property
Property with no physical substance (i.e. legal rights like trademarks)
26
Libel
Written defamation
27
License
Ensures businesses operate in accordance with regulations. Licenses serve as a way to regulate license-holders and generate revenue for government
28
Loss Exposure
A chance of financial loss resulting from a peril that damages something valuable
29
Malicious Prosecution
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
Negligence
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
Net Worth
Amount of money remaining after all assets have been liquidated and liabilities paid
32
Nominal Damages
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
Non-statutory Bond
A bond not required by law but rather as part of a contract or agreement
34
Nuisance
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
Obligee
The party to whom someone else is obligated
36
Occupier
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
Particular Average
A partial loss to a specific shipment
38
Penalty
The bond “limit”. The amount of credit given to the principal by the surety.
39
Permit
Serve the same purpose as licenses but are required before doing certain things
40
Principal
The person primarily liable for performing the contract
41
Retention
Using funds from within the business to pay for losses
42
Risk Control
Steps taken to reduce the frequency & severity of losses (using the resources available)
43
Risk Financing
Methods of paying for losses that occur
44
Risk Management
Application of a rational process to minimize the negative effects of losses
45
Rule of Precedent
Court decisions made following rulings made in similar past cases
46
Segregation
Arranging business activities/resources so that one loss can’t cause a loss to all
47
Separation
Dividing assets or operations into many separate units
48
Slander
Spoken defamation
49
Special Damages
Out of pocket expenses, damages that can be quantified (i.e. medical bills, travel expenses, lost earnings)
50
Statute Law
Written law created by federal or provincial legislation
51
Statutory Bond
Bond required by municipal ordinance
52
Strict Liability
When doing a dangerous activity, the person is presumed legally liable for any injury or damage
53
Surety
The state of being sure OR the party that pays money or does some other act if the principal fails his duty
54
Surety Bond
An undertaking by one party to become accountable to another party for the performance of an obligation by a 3rd party
55
Suretyship
A guarantee of performance made by one party for another
56
Tangible Property
Property that is real, has substance, and can be touched
57
Tort
Wrong or injury other than breach of contract
58
Total Loss of a Part
A total loss to one shipper’s cargo or to 1 shipment Note: (i.e. the loss of 1 shipping container)
59
Trespass
Unlawful interference with someone’s rights, person or property
60
Working Capital
Funds available to pay continuing business expenses until payment is received for current work

CAIB 3 (7 decks)

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