quiz 12
The Valuation condition on Commercial Inland Marine policies states that property losses are valued on which loss settlement basis?
Actual cash value
Commercial Inland Marine coverages may be written in which of the following ways?
As a stand-alone policy or as a coverage part in a Commercial Package policy
An equipment dealer owns multiple store locations. At one location, required safeguards are not in operation while the location is closed. Coverage provided by the dealer's Equipment Dealers Floater will be:
Automatically suspended at that location Failure to maintain protective safeguards will result in coverage being suspended at that location. Once safeguards are back in place, coverage will resume.
The uniform document that common carriers are required to issue to the shipper of the goods being transported is called a:
Bill of lading
The Annual Transit Coverage Form is designed for which of the following?
Businesses that want to protect property being shipped to others or being received from others on multiple occasions throughout the year
Which of the following is not covered under the Installation Floater?
Construction equipment The Installation Floater covers property that is being installed, including electrical equipment, plumbing equipment, heating equipment, carpeting or tile, glass, elevators, machinery, and similar property. Equipment that is used by a contractor for installation, construction, etc. would require a separate form.
Liability insurance for aircraft allows the insured to select any of the following coverages, except:
Coverage for bodily injury or death sustained by employees
With respect to Marine policies, the term uncontrolled means:
Forms that are not standardized by any rating bureau Uncontrolled (nonfiled) forms are developed by individual companies to meet the needs of the company and its target market, meaning they are not filed with or standardized by any rating bureau.
Which of the following is not an implied warranty in Ocean Marine insurance contracts?
Full Value The three implied warranties are Legality, Seaworthiness, and No Deviation in Voyage. Property protected by an Ocean Marine policy is written to the property's full value, but this is not an implied warranty.
Aviation insurance offers which of the following coverages?
Hull and liability coverages
Damage to a vessel caused by a bursting boiler would be covered by which type of Ocean Marine coverage?
Inchmaree Clause
Goods being transported would be covered by which of the following types of insurance?
Inland Marine insurance protects goods in transit over land.
Which of the following statements regarding the Trip Transit Coverage Form is correct?
It is used to insure single shipments. The Trip Transit Coverage Form is written for persons or firms that do not make regular shipments but need coverage for a single shipment. Named perils and open perils coverage is available.
A common carrier would need to purchase insurance for its common carrier cargo liability to protect against:
Legal liability for loss or damage to property in their custody
Which of the following is covered under Aviation Liability insurance?
Liability claims arising from the ownership, maintenance, or use of an aircraft. Aviation Liability insurance covers claims arising from the ownership, maintenance, or use of an aircraft.
A commercial shipowner's Protection and Indemnity Policy will cover all of the following, except:
Loss of import duties after cargo is lost
Which type of cargo policy would cover a person who owns their own truck and hauls their own goods?
Motor Truck Cargo Owners Coverage Form
Under an Ocean Marine policy, hull coverage written on a named perils basis typically covers all of the following perils, except:
Normal wear and tear Wear and tear is a common property insurance exclusion, and it would apply to hull coverage. Heavy weather, piracy, jettison, and other sea-related perils are typically listed as named perils.
Under Commercial Inland Marine policies, the insurer may do which of the following in the event of loss or damage to a pair or set?
Pay the difference between the value of the pair or set before and after the loss
Under the Valuable Papers and Records Floater, all of the following types of papers or records would be covered, except:
Property held as samples Property held as samples, money and securities, and data are not covered under the Valuable Papers and Records Floater. Insurable papers and records include deeds, drawings, films, abstracts, books, maps, and mortgages.
Which of the following is not covered under the Valuable Papers and Records Floater?
Securities Money and securities are not covered under the Valuable Papers and Records Floater.
The implied warranty of seaworthiness is understood to mean which of the following?
The ship must be seaworthy and have a competent crew
The Motor Truck Cargo Carriers Coverage Form provides coverage for cargo in the carrier's care in all of the following circumstances, except:
While in transit over water
Protection and Indemnity coverage provides liability protection for the insured shipowner in the event of any of the following losses, except:
Work-related injury to an office employee
Under the Jewelers Block Floater, which of the following losses can be covered by a Coverage Option when indicated in the Declarations?
heft of jewels stored in an on-premises show window that was smashed by burglars
A value limitation for a shipment is not included in which type of bill of lading issued by a common carrier?
straight A straight bill of lading does not contain a value limitation for the cargo being shipped, meaning the carrier is legally responsible for the full value of transported goods while it is in the carrier's care. A released bill of lading states a particular value to limit the carrier's liability.
