Chapter 14 - Oncean And Inland Marine Insurance
Those of you unaware of marine insurance may think it covers any damage to property that is caused by water, such as a flood – but actually, marine insurance covers the damage and loss of ships or cargo while it is on the route from the point of origin and the destination. What do you know about it?
- 1.
A voluntary action to rid the ship of cargo to prevent further damage is called what?
- A.
Jettison
- B.
Particular average
- C.
Barratry
- D.
General average
Correct Answer
A. JettisonExplanation
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.Rate this question:
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- 2.
The Motor Truck Cargo policy does which of the following?
- A.
Insures a truck carrier for liability arising out of the transportation of cargo
- B.
Covers any loss to cargo in transit, regardless of whether the carrier is liable for damage
- C.
Insures the shipper for all incoming or outgoing shipments during the policy term
- D.
Provides coverage for a shipper on a single shipment of goods
Correct Answer
A. Insures a truck carrier for liability arising out of the transportation of cargoExplanation
This form protects the carrier, instead of the shipper, for liability for loss to domestic shipments in transit.Rate this question:
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- 3.
Which of these statements about the Mail coverage form are correct? Select all that apply.
- A.
It covers bonds, securities, and checks when they are sent by first class or certified mail.
- B.
Food stamps and money are always excluded under the policy.
- C.
Property is covered on a named peril basis.
- D.
Losses are valued on the basis of the property's actual value, but not less than its market value, on the date of mailing.
Correct Answer(s)
A. It covers bonds, securities, and checks when they are sent by first class or certified mail.
D. Losses are valued on the basis of the property's actual value, but not less than its market value, on the date of mailing.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.Rate this question:
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- 4.
Which of the following can be covered under the Physicians and Surgeons Equipment coverage form? Select all that apply.
- A.
Medical instruments that are on the premises
- B.
Dental instruments that are off the premises
- C.
Radium
- D.
All of the above
Correct Answer(s)
A. Medical instruments that are on the premises
B. Dental instruments that are off the premisesExplanation
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.Rate this question:
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- 5.
Which of the following losses could be covered under the Theatrical Property coverage form?
- A.
Theft of costumes from an unlocked vehicle
- B.
Damage to a vehicle used as a prop in the production
- C.
Destruction of admission tickets for the production in a fire
- D.
All of the above
Correct Answer
B. Damage to a vehicle used as a prop in the productionExplanation
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.Rate this question:
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- 6.
Which of the following properties can be covered under the Film coverage form? Select all that apply.
- A.
Positive prints
- B.
Motion picture film
- C.
Soundtrack
- D.
Unused footage
Correct Answer(s)
B. Motion picture film
C. SoundtrackExplanation
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.Rate this question:
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- 7.
Which of these losses is covered under the Signs coverage form? Select all that apply.
- A.
The electric sign above the insured's business is destroyed when it is blown down in a thunderstorm.
- B.
The insured's neon sign is damaged when vandals throw rocks at it.
- C.
A power surge blows out several tubes in the insured's fluorescent sign.
- D.
All of the above.
Correct Answer(s)
A. The electric sign above the insured's business is destroyed when it is blown down in a thunderstorm.
B. The insured's neon sign is damaged when vandals throw rocks at it.Explanation
Loss caused by artificially generated current that creates a short circuit or other electrical disturbance within a covered item is not covered.Rate this question:
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- 8.
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.
- A.
Theft of money from a locked vault on the insured's premises
- B.
Theft of money from an unlocked vault on the insured's premises
- C.
Theft of covered property from an unattended auto
- D.
Theft of items on display in a show window when the window is smashed
Correct Answer(s)
A. Theft of money from a locked vault on the insured's premises
D. Theft of items on display in a show window when the window is smashedExplanation
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.Rate this question:
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- 9.
How often is the insured required to submit reports of values under the Floor Plan coverage form?
- A.
Quarterly
- B.
Monthly
- C.
Annually
- D.
Weekly
Correct Answer
B. MonthlyExplanation
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.Rate this question:
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- 10.
Which of these losses would be covered under the Camera and Musical Instrument Dealers coverage form?
- A.
When the insured plugs in an electric guitar to demonstrate it for a customer, there is a short circuit that damages the guitar's wiring.
- B.
A clerk drops a camera when arranging digital cameras in a show window. The lens shatters.
- C.
Both A and B.
- D.
Neither A nor B.
Correct Answer
B. A clerk drops a camera when arranging digital cameras in a show window. The lens shatters.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.Rate this question:
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- 11.
The Electronic Data Processing Equipment floater covers what? Select all that apply.
- A.
Computer hardware, but not software or data.
- B.
Property in transit.
- C.
It does not cover computer equipment that is in the insured's care, custody, or control.
- D.
It can contain breakdown coverage.
Correct Answer(s)
B. Property in transit.
D. It can contain breakdown coverage.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.Rate this question:
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