Chapter 14 - Oncean And Inland Marine Insurance

1. A voluntary action to rid the ship of cargo to prevent further damage is called what?

Jettison

Particular average

Barratry

General average

Jettison is permitted if the action is taken to save the remaining property. The loss incurred by sacrificing a portion of the cargo will be reimbursed.

Explanation

Jettison is permitted if the action is taken to save the remaining property. The loss incurred by sacrificing a portion of the cargo will be reimbursed.

2. How often is the insured required to submit reports of values under the Floor Plan coverage form?

Quarterly

Monthly

Annually

Weekly

Coverage under the Floor Plan form is written on a reporting basis. The insured must file reports of values within 30 days after the end of each month.

Explanation

Coverage under the Floor Plan form is written on a reporting basis. The insured must file reports of values within 30 days after the end of each month.

3. The Motor Truck Cargo policy does which of the following?

Insures a truck carrier for liability arising out of the transportation of cargo

Covers any loss to cargo in transit, regardless of whether the carrier is liable for damage

Insures the shipper for all incoming or outgoing shipments during the policy term

Provides coverage for a shipper on a single shipment of goods

This form protects the carrier, instead of the shipper, for liability for loss to domestic shipments in transit.

Explanation

This form protects the carrier, instead of the shipper, for liability for loss to domestic shipments in transit.

4. Which of the following can be covered under the Physicians and Surgeons Equipment coverage form? Select all that apply.

Medical instruments that are on the premises

Dental instruments that are off the premises

Radium

All of the above

This form covers medical and dental instruments on and off the premises, furniture and fixtures at the office, and the insured's interest in improvements and betterments. Radium is not covered.

Explanation

This form covers medical and dental instruments on and off the premises, furniture and fixtures at the office, and the insured's interest in improvements and betterments. Radium is not covered.

Submit

5. Which of these losses would be covered under the Camera and Musical Instrument Dealers coverage form?

A clerk drops a camera when arranging digital cameras in a show window. The lens shatters.

Both A and B.

Neither A nor B.

This form excludes loss arising out of artificially generated current that creates a short circuit or other electrical disturbance within an item covered under the policy.

Explanation

This form excludes loss arising out of artificially generated current that creates a short circuit or other electrical disturbance within an item covered under the policy.

6. Which of the following losses could be covered under the Theatrical Property coverage form?

Theft of costumes from an unlocked vehicle

Damage to a vehicle used as a prop in the production

Destruction of admission tickets for the production in a fire

All of the above

Vehicles are covered if they are actually used on the stage in the covered production. Admission tickets are not covered property. Loss by theft from an unlocked, unattended vehicle is excluded.

Explanation

Vehicles are covered if they are actually used on the stage in the covered production. Admission tickets are not covered property. Loss by theft from an unlocked, unattended vehicle is excluded.

7. Which of these losses is covered under the Jewelers Block coverage form, assuming that the insured has purchased all available optional coverages? Select all that apply.

Theft of money from a locked vault on the insured's premises

Theft of money from an unlocked vault on the insured's premises

Theft of covered property from an unattended auto

Theft of items on display in a show window when the window is smashed

The Show Windows optional coverage covers theft of stock from a show window when the window is cut or smashed. Money coverage covers theft of money from locked safes or vaults on the insured's premises. Theft from any vehicle is excluded unless the insured, an employee, or other person whose only duty is to attend the vehicle is actually in or on the vehicle when the theft occurs.

Explanation

The Show Windows optional coverage covers theft of stock from a show window when the window is cut or smashed. Money coverage covers theft of money from locked safes or vaults on the insured's premises. Theft from any vehicle is excluded unless the insured, an employee, or other person whose only duty is to attend the vehicle is actually in or on the vehicle when the theft occurs.

Submit

8. Which of the following properties can be covered under the Film coverage form? Select all that apply.

Positive prints

Motion picture film

Soundtrack

Unused footage

The Film coverage form covers exposed motion picture film, soundtracks, videotapes, and magnetic tapes used in the production scheduled in the declarations and that the insured owns or has in his or her custody or control. It does not cover cutouts, unused footage, positive prints or films, or library stock.

Explanation

The Film coverage form covers exposed motion picture film, soundtracks, videotapes, and magnetic tapes used in the production scheduled in the declarations and that the insured owns or has in his or her custody or control. It does not cover cutouts, unused footage, positive prints or films, or library stock.

Submit

9. Which of these losses is covered under the Signs coverage form? Select all that apply.

The electric sign above the insured's business is destroyed when it is blown down in a thunderstorm.

The insured's neon sign is damaged when vandals throw rocks at it.

A power surge blows out several tubes in the insured's fluorescent sign.

All of the above.

Loss caused by artificially generated current that creates a short circuit or other electrical disturbance within a covered item is not covered.

Explanation

Loss caused by artificially generated current that creates a short circuit or other electrical disturbance within a covered item is not covered.

Submit

10. Which of these statements about the Mail coverage form are correct? Select all that apply.

It covers bonds, securities, and checks when they are sent by first class or certified mail.

Food stamps and money are always excluded under the policy.

Property is covered on a named peril basis.

The Mail coverage form provides open peril coverage against loss to property in transit by registered, first class, certified, or express mail. Food stamps and money can be covered when sent by registered mail.

Explanation

The Mail coverage form provides open peril coverage against loss to property in transit by registered, first class, certified, or express mail. Food stamps and money can be covered when sent by registered mail.

Submit

11. The Electronic Data Processing Equipment floater covers what? Select all that apply.

Computer hardware, but not software or data.

Property in transit.

It does not cover computer equipment that is in the insured's care, custody, or control.

It can contain breakdown coverage.

The Electronic Data Processing Equipment floater provides open peril coverage for computer hardware, software, and data that is owned by the insured or in the insured's care, custody, or control. Property in transit is covered. Optional breakdown coverage insures against damage to the equipment caused by mechanical breakdown, electrical disturbances, and temperature changes.

Explanation

The Electronic Data Processing Equipment floater provides open peril coverage for computer hardware, software, and data that is owned by the insured or in the insured's care, custody, or control. Property in transit is covered. Optional breakdown coverage insures against damage to the equipment caused by mechanical breakdown, electrical disturbances, and temperature changes.

Submit