The filed classes of inland marine business are characterized by a
Select one:
A. Large number of potential insureds and reasonably homogenous loss exposures.
B. Small number of potential insureds and reasonably diverse loss exposures.
C. Large number of
A. Large number of potential insureds and reasonably homogenous loss exposures.
The Nationwide Marine Definition was no longer needed following the enactment of legislation in the 1950s that
Select one:
A. Permitted a single insurer to offer fire, casualty, and marine coverages.
B. Clearly defined the distinction between property ins
A. Permitted a single insurer to offer fire, casualty, and marine coverages.
Which one of the following best describes how forms and rates for filed classes of inland marine insurance are filed?
Select one:
A. The Insurance Services Office (ISO) and the American Association of Insurance Services (AAIS) file forms and rates for man
A. The Insurance Services Office (ISO) and the American Association of Insurance Services (AAIS) file forms and rates for many of these classes on behalf of their member companies.
In the early 1900s, the inventories of jewelry stores, property while in the course of inland transit, tourists' baggage, and even bridges were typical inland properties insured by which one of the following types of insurer?
Select one:
A. Marine insurer
A. Marine insurers
Which one of the following best describes the bailees' customers policy?
Select one:
A. It is purchased by property owners to cover damage to their property while in the care, custody, or control of a bailee and for which the bailee is not liable.
B. It i
B. It is purchased by bailees to cover damage to customers' goods while in the possession of the bailee, regardless of whether the bailee is legally liable for the damage.
Which one of the following statements is correct with respect to electronic data processing equipment floaters?
Select one:
A. The policy definition of "equipment" is usually limited to mainframe computers, servers, printers, disk drives and laptops.
B. M
B. Many cover special perils such as mechanical or electrical breakdown, and they may also insure covered property while it is in transit or at unlisted locations.
Which one of the following best describes nonfiled inland marine builders risk insurance?
Select one:
A. It covers the structure under construction, temporary structures at the building site, and building materials that have not yet become part of the bui
A. It covers the structure under construction, temporary structures at the building site, and building materials that have not yet become part of the building.
Which one of the following statements is correct with respect to motor truck cargo liability insurance?
Select one:
A. It provides coverage for cargo losses resulting from an "act of God", such as a hurricane.
B. Some policies limit coverage to losses cau
B. Some policies limit coverage to losses caused by specified perils.
Which one of the following best describes a reason why insureds purchase the filed inland marine Accounts Receivable Coverage Form?
Select one:
A. Irreplaceable records can be scheduled on the form with an agreed value for each item.
B. The accounts recei
C. An insured can use the inland marine form to obtain a higher coverage limit than the insurer is willing to include in a package policy.
Which one of the following best describes the property covered by the filed inland marine Equipment Dealers Coverage Form?
Select one:
A. The stock in trade of dealers in "computer equipment" including medical equipment, robotics, and computerized gaming
D. The stock in trade of dealers that sell agricultural or construction equipment and customers' equipment in the insured's care, custody, or control
Which one of the following filed inland marine policies covers merchandise that is being held for sale and can be used to cover the dealer's interest and/or a lender's interest?
Select one:
A. Equipment Dealers Coverage Form
B. Floor Plan Coverage Form
C.
B. Floor Plan Coverage Form
Which one of the following inland marine forms is designed to cover photographic equipment and musical instruments used commercially by photographers, motion picture producers, professional musicians, and others?
Select one:
A. Theatrical Property Coverag
C. Commercial Articles Coverage Form
Which one of the following statements is correct with respect to ocean marine loss exposures?
Select one:
A. Vessel owners cannot be held legally liable for bodily injury to crewmembers or passengers.
B. For cargo owners, the possibility of loss to the ca
B. For cargo owners, the possibility of loss to the cargo exists either on board a vessel or on land between the vessel and the cargo's point of origin or destination.
Which one of the following statements is true regarding the rating of ocean marine insurance?
Select one:
A. Judgment rating for ocean marine insurance is influenced by many factors, including the product being shipped and the type of packing.
B. Ocean ma
A. Judgment rating for ocean marine insurance is influenced by many factors, including the product being shipped and the type of packing.
When freight is guaranteed, the party primarily exposed to the loss of freight is the
Select one:
A. Shipper.
B. Consignee.
C. Insurer.
D. Carrier.
A. Shipper.
When an ocean marine policy is judgment rated, the judgment used is that of the
Select one:
A. State insurance commissioner.
B. Insured.
C. Underwriter.
D. Producer.
C. Underwriter.
The basic types of ocean marine insurance include which one of the following?
Select one:
A. Fleet insurance
B. Seaworthiness insurance
C. Protection and indemnity (P&I) insurance
D. Ocean carrier insurance
C. Protection and indemnity (P&I) insurance
Ocean marine hull insurance policies usually cover on a specified perils basis rather than an "all-risks" basis. One of the specified causes of loss is "barratry." Which one of the following best describes the meaning of the term "barratry"?
Select one:
A
B. Serious misconduct by the vessel's master or crew that is contrary to the owner's interest, such as a fraudulent or criminal act that causes damage to the vessel
An importer needs protection for its cargo not only while on board an oceangoing vessel, but also while it's being shipped by truck both to the vessel from the point of origin and from the vessel to the final destination. Which one of the following ocean
B. Warehouse to warehouse clause
Which one of the following statements about the collision liability clause of an ocean marine hull insurance policy is true?
Select one:
A. It is a separate amount of insurance ordinarily equal to the amount of insurance on the hull.
B. It covers liabilit
A. It is a separate amount of insurance ordinarily equal to the amount of insurance on the hull.
Rating methods for the filed ISO commercial inland marine forms are based on procedures established by which one of the following?
Select one:
A. The National Marine Definition
B. State insurance regulators
C. Other standard commercial property coverages
D. The ISO Commercial Lines Manual (CLM)
Which one of the following best explains why, in the 1900s, marine insurers were willing to provide broad perils or "all-risks" coverage on the types of property that fire insurers avoided covering?
Select one:
A. While fire insures were restricted to pro
C. They were accustomed to covering ocean cargoes of all types against many different causes of loss, including theft, while the property was either at sea or ashore.
Inland marine insurance is insurance that covers
Select one:
A. Companies that ship goods by commercial vessel on inland waterways.
B. Miscellaneous lines such as burglary, glass, and steam boilers.
C. Many different classes of property that typically inv
C. Many different classes of property that typically involve an element of transportation.
Rates for the traditionally nonfiled classes of inland marine insurance
Select one:
A. Have become standardized to an extent for policies that are widely written.
B. Are published in the ISO Commercial Lines Manual (CLM).
C. Are typically unaffected by ma
A. Have become standardized to an extent for policies that are widely written.
Which one of the following statements is correct with respect to contractors equipment floaters?
Select one:
A. The covered causes of loss are limited to fire, lightning, explosion, windstorm, hail, collision, overturn, and collapse of bridges and culvert
B. A large contractor may obtain blanket coverage applying to all equipment, whether owned, rented, or borrowed by the contractor.
Which one of the following is a purpose for buying difference in conditions (DIC) insurance?
Select one:
A. It converts nonfiled policies to filed policies in most states.
B. It provides coverage for flood and earthquake exposures not covered by basic pol
B. It provides coverage for flood and earthquake exposures not covered by basic policies.
Which one of the following can be added to a builders risk policy to cover various incidental expenses that might result from a physical loss to a building project, such as additional interest, advertising expenses, or real estate taxes?
Select one:
A. So
A. Soft costs coverage
Which one of the following best describes the purpose served by transit insurance?
Select one:
A. It extends the coverage territory for shipments beyond the continental U.S., Alaska, and Canada, to include air or water shipments to or from overseas locati
C. Shippers use it because their property may be damaged in circumstances under which a carrier has no legal obligation to pay the shipper's loss.
A filed jewelers block coverage form is designed to meet the needs of
Select one:
A. Small retail jewelers.
B. Jewelry manufacturers.
C. Individuals with a large jewelry collection.
D. Jewelry wholesalers.
A. Small retail jewelers.
Which one of the following describes property that can be covered under the filed inland marine Theatrical Property Coverage Form?
Select one:
A. Photographic equipment and musical instruments used commercially by photographers, motion picture producers,
C. Stage scenery, costumes, and other similar personal property, including property of others in the insured's care, that insured has used or intends to use in a production stated in the declarations
For which one of the following must coverage be added by endorsement to the filed inland marine Physicians and Surgeons Equipment Coverage Form?
Select one:
A. Improvements and betterments that the insured has made to the building if the insured is a tena
D. Personal effects of the insured or others while on premises
Which one of the following would be covered under the filed inland marine Valuable Papers and Records Coverage Form?
Select one:
A. The cost to reconstruct accounts receivable records
B. Books of physicians, surgeons, and dentists
C. An architect's bluepr
C. An architect's blueprints and plans
Which one of the following statements is true about judgment rating in ocean marine insurance?
Select one:
A. Ocean marine insurers generally only use judgment rates when they believe the filed rates to be either inadequate or not reflective of the partic
D. Each insurer writing ocean marine insurance develops its own ocean marine rates, guided by the judgment of its underwriters.
For the owners of oceangoing cargo, the possibility of loss to the cargo while it is in the course of transit exists
Select one:
A. While in possession of the cargo owner.
B. Only while aboard the vessel.
C. Either aboard the vessel or on land between the
C. Either aboard the vessel or on land between the vessel and the cargo's point of origin or destination.
A carrier that is prevented by an accident from delivering the cargo aboard its ship may face an exposure called loss of freight, which is
Select one:
A. A penalty the carrier pays the shipper for nondelivery.
B. The liability for loss or damage to the ca
D. The compensation the carrier receives for transporting cargo.
Which one of the following statements is correct with respect to ocean marine loss exposures?
Select one:
A. A vessel owner is financially responsible for damage to cargo regardless of whether the vessel owner is legally liable for the damage.
B. Typicall
C. For cargo owners, the possibility of loss to the cargo exists either on board a vessel or on land between the vessel and the cargo's point of origin or destination.
What ocean marine insurance policy or clause covers the damage to an insured's ship if the insured ship collides with an object in the harbor?
Select one:
A. Collision liability clause
B. Hull insurance policy
C. Open cargo policy
D. Protection and indemn
B. Hull insurance policy
A clause included in ocean marine cargo insurance that covers the cost of reasonable measures that the insured is required to take to protect property from damage at the time of loss is referred to as the
Select one:
A. Sue and labor clause.
B. General av
...
An ocean marine insurance policy that covers all goods shipped or received by the insured during the policy's term, that is comparable to an inland marine annual trip transit policy but without a set policy expiration date, is referred to as
Select one:
A
A. Sue and labor clause.
Which one of the following statements is correct with respect to ocean marine hull insurance?
Select one:
A. Hull policies generally provide coverage for any cargo on board the vessel, as well as personal effects of passengers and crew.
B. Hull policies u
C. Hull policies typically include earthquake coverage for the possibility that a vessel might be damaged by earthquake while docked.