Unit 8.1 8.2, inland Marine Insurance, Ocean Marine Insurance,

General Average Clause-

"average" means loss. general average divides the loss equally among all insured if the loss is made voluntarily by the ship's captain to avoid a common peril, which could destroy the entire ship

Ocean Marine insurance is often called _________. it covers perils that are associated with ______________. It is the __________ form of insurance known.

"wet marine", water transport, oldest

Marine Insurance may be categorized by one of two coverage forms available. They are:

-controlled form: use standard forms that have been prepared as part of a commercial property policy -uncontrolled form: inland marine forms that are not standardized

Total Losses

Actual- sink that sinks in deep water and cannot be salvaged Constructive- ship that runs aground, with the cost to salvage and repair exceeding the value after the repair is complete

Domestic Shipments include:

Annual Transit Policy Trip Transit Policy Motor Truck Cargo Policy Mail Coverage Form

Which of the following perils are included in Ocean Marine policies?

Both are includes in Ocean Marine Policies

Cargo Coverage covers the owner of the ship. True or False?

False- for loss or damage to goods shipped.

Freight Coverage-

Freight coverage protects the vessel's owner in case the cargo is lost or destroyed, and freight charges are not paid. Freight is sometimes included in Hull Coverage.

The __________ Clause requires all interested parties to share equally in the loss.

General Average Clause

Marine insurance is classified as _____, _______, ________, and _________.

Hull Cargo Freight Liability

What are teh six risks that are eligible for Inland or Ocean Marine insurance:

Imports, Exports, Domestic Shipments, Instrumentalities of Transportation or Communication, Personal Property Floaters, Commercial Property Floaters

When cargo is thrown overboard to save the ship, this is known as __________.

Jettison

Commercial inland Marine insurance developed as an extension of __________.

Ocean Marine insurance to provide coverage for cargo traveling over land, instead of by sea.

Free of Particular Average Clause

Particular Average losses are partial, losses that do not require other insured parties to contribute to the loss

Liability Coverage

Protection and Indemnity insurance. Can cover injury to passengers, crew, and other ships as well as damage to cargo, docks, or property. A collision, or "running-down" clause is part of liability coverage.

Mail Coverage Form-

This is a controlled form that provides coverage against loss to property sent by registered, first-class, certified, or express mail.

Trip Transit Policy-

This uncontrolled form covers a single shipment of goods. It also covers either the shipper or the receiver.

Motor Truck Cargo Policy-

This uncontrolled form covers goods being shipped and protects only the carrier.

Freight Coverage indemnifies the ship's owner for loss of income. True or False?

True

Hull Coverage usually has a deductible. True or False?

True- it is usually the subject of an average or franchise deductible.

A shipper who sends 10-12 loads of produce to Georgia over the course of a year should purchase _______________.

annual transit policy

Commercial Property Floaters

are grouped into several categories. they are Bailees, Equipment Floaters, Business Floater, and Dealers Policies.

Cargo Coverage

cargo policies cover the shipper for loss or damage to goods shipped. An open form covers all shipments throughout the year. a single risk form is also available to cover an individual shipment.

A contractor needs coverage for equipment and machinery he will leave on the job site. He should purchase ________________.

contractors equipment floater

Inland Marine coverage that uses a standardized form is called ____________.

controlled form

Communication

covers both direct loss and loss of revenue caused by damage. provides a direct connection to transportation and goods being transported. an uncontrolled form that covers bridges, tunnels, pipeline, dams, docks, radio and TV towers.

Perils ON the Sea-

fire, war, enemies, jettison (throwing cargo overboard to save the ship), Barratry (fraud by the ship's captain or crew with the intention of gaining profit,)

Dealer Floaters

provide occasional coverage for dealers when their property is away from the premises.

Sue and Labor-

the insured must take all reasonable steps that are necessary to save the cargo from a loss that has occurred or to minimize a loss that has occurred

Equipment Floaters

uncontrolled form covers heavy equipment and tools that can be rented, owned, or borrowed. Coves on the job site, to and from the job site, as well as being stored

Annual Transit Policy-

uncontrolled form covers multiple shipments of goods over the period of one year. It protects either the shipper or the receiver.

Business Floaters

uncontrolled inland marine floater insures against the loss of building materials, equipment, and machinery. This cover can be used to cover the owner, the contractor, or the seller

Hull Coverage

usually the subject to an average or a franchise deductible. Should the loss exceed a certain limit, the loss is paid in full. Policy period is generally for one year and is usually limited to a specific geographical area.

Perils OF the Sea-

waves, wind, sinking, stranding, and wind