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CPCU 551 Chapter 8
Chapter 8 Notes
| Question | Answer |
|---|---|
| What does inland marine insurance cover? (general) | A wide range of usually land based risks that have some link to transportation or communication. |
| What are four general areas covered in an inland marine policy? | 1) Property in Transit 2) Loss Exposures Covered 3) Broad Coverage of Perils 4) Valuation Provisions |
| Outside of the standard valuations used (acv, replacement cost, selling price) what two other methods can be used for inland marine coverage? | 1) Invoice Value 2) Agreed Value |
| What three factors come into play when dealing with transportation loss exposures? | 1) What parties are involved 2) Who has ownership of goods 3) What carrier is responsible for loss |
| What two terms are used to describe the selling terms of goods being shipped in the United States? | FOB Point of Origin and FOB Shipping Point |
| When does FOB Point of Origin risk of loss pass? | When goods are accepted by carrier for transit. |
| When does FOB Point of Destination risk of loss pass? | When delivered to buyers premises. |
| Define difference between a common carrier and a contract carrier? | Common carriers offer transportation services to the public. Contract carriers only carries the goods of certain contracted carriers. |
| What are the standard common carriers liability relative to losses? | Generally they are liable regardless of negligence with exception of acts of god, or shippers fault. |
| What are the standard contract carriers liabilities relative to losses? | Depends on what is written in the contract. |
| What Act Defines rules for goods shipped in foreign trade? | COGSA (Carriage of Goods Sea Act) |
| What act covers domestic water shipments? | Harter Act |
| What is the package limit applied by COGSA | $500 |
| What rule governs liability for air carriers engaged in international service? | Warsaw Convention |
| List the types of insurance available for transportation exposures? | Annual Transit, Open Cargo, Trip Transit, Motor Truck Cargo, Mail Insurance |
| Define Annual Transit Insurance? | Often purchased by frequent shippers to cover all shipments made over the course of an annual policy period. |
| List of a few of the rules that apply to transit insurance? | Most cover all perils, property is valued at invoice. |
| Define Open Cargo Insurance? | Purchased by frequent shippers to cover all shipments made overseas either by plane or boat. |
| General rules of Open Cargo Insurance? | Cancellation is 30 days all shipments in transit are covered, most apply to all risks, most cover to a set limit per trip, paid at invoice rate. |
| Define Trip Transit Insurance? | Purchased by infrequent shippers for a particular shipment. |
| Define Motor Truck Cargo Insurance? | Covers the insureds legal liability as a motor carrier for loss to a customers property. |
| General Rules of Motor Truck Cargo Insurance? | Description of covered property is broad, usually certain types of valuable property targeted by thieves is excluded. |
| What are the instrumentalities of transportation and communication? | Bridges, tunnels, piers, docks, railways, pipelines, power transmission lines, cranes used to load boats and trucks. |
| What is an Equipment Floater? | Policy used to cover any type of mobile article, machinery or equipment. Usually covers equipment used off premise. |
| List the 2 types of Equipment Floaters? | Contractors Equipment and Computer Equipment |
| List the 3 miscellaneous Inland Marine Coverages? | Sign Coverage, Accounts Receivable Coverage, Valuable Papers and Records Coverage |
Created by:
GARYSCHILD
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