Unit 12: Commercial Inland Marine Insurance

In the commercial articles coverage form, additional acquired property is automatically covered if it is a type of property already covered by the form for up to

30 days

Under the commercial articles coverage form, additional acquired property is automatically covered for up to

30 days if it is a type of property already covered by the form.

If the insurance company requests a proof of loss on a commercial inland marine claim, the insured must submit it within

60 days

Which of the following is covered in the equipment dealers coverage form? A) Construction equipment B) Motorcycles C) Furniture D) Automobiles

A) Construction equipment

Which of the following is NOT an example of a category of risk in commercial inland marine insurance? A) Personal inland marine insurance B) Commercial floater risks C) Domestic shipments D) Instrumentalities

A) Personal inland marine insurance

All of the following are examples of instrumentalities of communication EXCEPT A) bailment B) cell phone towers C) tunnels D) bridges

A) bailment

Which of the following commercial inland marine coverage forms CANNOT be included in the commercial package policy? A) Accounts receivable B) Physician's and surgeon's equipment C) Bailee's customer D) Film

C) Bailee's customer

Which of the following statements about commercial inland marine insurance coverages is NOT correct? A) They are usually written open peril instead of named peril. B) They usually do not require the property to be at a specific location when a loss occurs. C) They are often called floaters because the insurance moves with the property as it moves. D) They are never included in a commercial package policy.

D) They are never included in a commercial package policy.

Which of the following is NOT a category that represents eligible risks for commercial inland marine insurance? A) Instrumentalities of transportation or communication B) Domestic shipments C) Commercial floater risk D) Exports

Exports

Which of the following types of insurance covers exposures that involve property and merchandise while in transit or "floating"?

Inland marine insurance.

Commercial property insurance covers outdoor signs attached to the building and has a per sign payout limit. Which form would a business purchase if it wanted to less restriction on coverage?

Sign coverage form

Sally left her fur coat at a dry cleaner to have it cleaned and returned to her. This is an example of bailment. In this example, which of the following is the bailee?

The dry cleaner

Which marine policy would an owner of goods most likely purchase to insure a single shipment of property from Chicago to Los Angeles?

Trip transit insurance

Bailee's customers insurance is purchased by businesses that

have customer's property in their possession. A bailee is one who has legal possession of property belonging to another.

A loss is covered under a commercial inland marine form and another policy. Both policies are written on the same basis. The commercial inland marine form will

pay on a pro rata basis

The bailee policy pays

the bailor.

The bailee policy pays

the customer

A bailee's customer policy covers

the customer for loss to customers' property, regardless of liability.

The insured has an accounts receivable coverage form added to the commercial inland marine coverage form. When a fire destroys the insured's records, coverage is provided for all of the following EXCEPT A) bad debts B) reconstruction of records C) uncollectible sums D) extra collection fees

A) bad debts

The insured's accounting records are destroyed in a fire. Which of the following losses would NOT be covered under the insured's accounts receivables coverage form? A) Bill payments the insured cannot collect from customers because of the damage to the records B) Fees charged by the collection agency the insured hired to collect payments C) A loss that required an audit of records to prove its existence D) Interest on a short-term loan the insured obtains to stay in business while collections are impaired.

C) A loss that required an audit of records to prove its existence

Which of these losses would NOT be covered under the signs coverage form? A) The electric sign above the insured's business is destroyed in a thunderstorm. B) The insured's neon sign is damaged when vandals throw rocks at it. C) During installation, several tubes in the insured's fluorescent sign are damaged. D) A sign attached to a building is damaged when a tree falls during a thunderstorm.

C) During installation, several tubes in the insured's fluorescent sign are damaged.

Which of the following categories is covered by ocean marine insurance? A) Domestic shipments B) Commercial floater risks C) Imports and exports D) Instrumentalities of transportation or communication

C) Imports and exports

Which of the following is covered by ocean marine insurance? A) Commercial property floater risks B) Personal floaters C) Imports D) Domestic shipments

C) Imports. Imports and exports are covered by ocean marine insurance. Personal floaters, domestic shipments, instrumentalities of transportation or communication, and commercial property floater risks are covered by inland marine insurance.

Which of the following policies became known as a "floater" since the property to which coverage was originally extended was literally "floating"? A) Ocean marine insurance B) Marine insurance C) Inland marine insurance D) Floater insurance

C) Inland marine insurance

Which inland marine transportation form protects the truck carrier for liability arising out of the transportation of cargo? A) Motor truck cargo- shipper's policy B) Trip transit policy C) Motor truck cargo policy D) Annual transit policy

C) Motor truck cargo policy

Which of the following categories is NOT covered by inland marine insurance? A) Domestic shipments B) Stationary property C) Commercial floater risks D) Instrumentalities of transportation

B) Stationary property

Domestic shipments inland marine transportation forms cover shipments traveling by all of the following EXCEPT A) train B) car C) air D) mail

B) car

An inland marine coverage that insures against loss to machinery, equipment, building materials, and supplies in transit to or being used with or during the course of installation, testing, building, renovating, or repair is also known as

an installation policy

The nationwide marine definition provides insurance underwriters with

definitions for which type of property were eligible for inland marine insurance coverage. The nationwide marine definition is a guideline for classifying marine, inland marine, or transportation insurance. - Imports - Exports - Personal floaters - Domestic shipments - Instrumentalities of transportation or communication - Commercial property floater risks

What is the inland marine transportation form that protect all of the insured's incoming or outgoing shipments during the year against loss while in transit?

Annual transit policy

Which of the following transit policies protect the shipper or receiver of goods against loss of goods in transit incoming and outgoing all year long?

Annual transit policy

All of the following are considered bailees EXCEPT A) a dry cleaner B) a barber shop C) a tailor and alterations business D) a shoe repair shop

B) a barber shop

Which of the following is covered by the jewelers block coverage form? A) Property in transit by mail (unless registered mail) B) Property exhibited in a showcase away from the premises C) Property that is sold but not delivered D) Property being worn by the insured

C) Property that is sold but not delivered The jewelers block coverage form covers: the insured's stock in trade, which includes jewelry, precious and semiprecious stones, precious metals and alloys, and other stock used in the business; and property that is sold but not delivered.

Which of the following is NOT covered in the jewelers block coverage form? A) Property sold but not delivered B) Stock in trade C) Property worn by the insured D) Precious metals and alloys

C) Property worn by the insured