Lesson 3 - Inland/Ocean Marine Flashcards
Form of insurance protection provides coverage for goods being transported from 1 site to another on inland waterways
Inland Marine Insurance
Nationwide Marine definition
Risk must include element of transportation to be eligible for inland marine contract
Coverage forms available under Commercial Inland Marine Coverage
1) Valuable Papers & Records
2) Equipment Dealers
3) Jewelers Block Policy
4) Signs Coverage Form
5) Accounts Receivable
6) Commercial Articles
Coverage available for single shipments while in transit by any mode of transportation
Trip Transit
Coverage for all shipments in a given year during transportation
Transportation Policy-Annual Form
Protection provided for truckman’s legal liability as a carrier of goods
Motor Truck Cargo
Liability where maximum amount for which the carrier will be held liable is stipulated
Released Bill of Lading
Watercraft Coverage Endorsement provides liability coverage for
1) Outboard Motors over 25 horsepower
2) Inboard Motors over 50 horsepower
3) Sailboats over 26ft in length
Known as Outboard policy that provides coverage for physical damage on smaller boats
Boat Owners Insurance
Laws which apply to Ocean Marine insurance and shipping
Admiralty Law
Covers physical damage to the ship & is always written with a deductible
Hull Insurance
Covers owner’s liability if ship collides with other vessel or damages cargo
Running Down Clause
Covers shipper of cargo if goods are damaged or lost
Cargo Insurance
Open-Cargo Policy
Automatically insures cargo when shipment is made
Protection & Indemnity Insurance
Provides comprehensive liability insurance for property damage and bodily injury to 3rd parties
Indemnifies ship owners for loss of earnings
Freight Insurance
Act of voluntarily throwing cargo of a ship overboard to save vessel
Jettison
When act of fraud/criminal acts are committed by ship master/crew that results in loss
Barratry
When cargo is thrown overboard to save other property, loss must be distributed among owners of property saved
General Average Losses
Loss that does not require contributions from other parties & covers partial loss
Particular Average Losses
Targets various types of cargo upon which insurer will be relieved of partial losses
Memorandum clause
Relieves insurer of any loss if it amounts to less than certain percentage of cargo
Free of Particular Average clause
In event of loss, insured is permitted to take action to prevent/limit loss
Sue & Labor clause
Common types of ocean marine insurance warrantied
1) Ship is seaworthy
2) Voyage is legal
3) Course will not deviate
Allows insurer to take title to damaged property after payment of loss
Salvage Provision
