Amim 121 Ocean Marine Insurance Chapter 1

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Ocean Marine Insurance

Back 1

Insurance that is principally associate with vessels and their cargos; also includes air shipments as well as ransportation by land or air that connects with an ocean shipment or international air shipment.

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Cargo Insurance

Back 2

Insurance that covers loss or damage to property shipped primarily by water or if in foreign trade, by air

Front 3

Hull Insurance

Back 3

Covers partial or total loss of vessels caused by a covered peril; may also cover the insured's liability for damage to another vessel and its cargo resulting from collision w/ another vessel

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Protection and indemnity

Back 4

Insurance that covers the policyholder against 1. liability for bidily insury and property damage arising out of specified accidents and 2. certain unexpected vessel-related expenditures arising out of the ownership of the vessel.

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Admiralty Law

Back 5

A specialized branch of federal law pertaining to to claims that take place on navigable waters and are connected with maritime activity

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Voyage Policy

Back 6

covers the duration of a particular voage specified in the policy

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Time Policy

Back 7

Covers the duration of a particular time period, usually one year

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Open Cargo Policy

Back 8

continues in effect until the insure or insured cancels it

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Contract of utmost good faith

Back 9

based on the assumption that the insured has revealed to the insurer all information pertinent to the risk being insured.

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Misrepresentation

Back 10

a false statement of the insured to divulge information material to the risk

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concealment

Back 11

a failure of the insured to divulge informaation material to the risk

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Exceptive warranty

Back 12

A policy provision that excludes certain types of loss or certain loss causes

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Promissory Warranty

Back 13

A policy provision that exclueds certain types of loss or certain loss causes.

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Implied Warranty

Back 14

A warranty that is understood to apply even though it does not appear in the policy

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Implied warranty of seaworthiness

Back 15

An implied warranty requiring that the vessel be seaworth; the captain and crew are competent, the stores are adequeate, and the vessel is in condition to make the voyage.

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Implied warranty of no deviation

Back 16

Implied warranty, applicable in voyage policies only, that the vessl will not deviate from its proper course except for permitted reasons

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Implied warranty of legality

Back 17

implied warranty that the venture in which the vessel is engaged is legal

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"All-risks" Policy

Back 18

An insurance policy that covers any risk of physical loss unless the policy specifically excludes it.

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Total Loss

Back 19

A loss for which the assured is entitled to collect the full amount of insurance under a marine insurance policy; may be either an actual total loss or constructive total loss

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Actual total loss

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A total loss of a vessel or cargo that occurs when the property undergoes physical destruction, loss of specie, or irretrievable deprivement

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Constructive total loss

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A total loss that occurs when the cost of recovering and repairing the insued vessel would exceed its agreed value, or when the insured cargo is reasonably abandoned in expectation of its becoming an actual total loss or because the property cannot be saved from actual total loss without expending more than the value of the property.

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Agreed value

Back 22

the value of insured property (such as a vessel) agreed to by the insured and the insurer before policy inception.

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Average

Back 23

A partal loss ove vessel or cargo

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Particular average

Back 24

a partial loss that is to be borne by only a particular interest.

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General average

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A partial loss that must be borne proportionally by all interests in a maritime venture ( such as the vessl owner and all owners of cargo aboard the vessel).

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Total loss only policy

Back 26

A marine insurance policy that excludes particluar average.

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York-Antwerp Rules

Back 27

International provisions that govern the adjustment of general average.

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General average sacrifice

Back 28

the deliberate and reasonable sacrifice of part of a vessel or cargo for the purpose of achieving safety when the voyage is imperiled

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General average expenditure

Back 29

Expense incurred, usually by the shiponwer, for the joint benefit of the vessel and cargo interests as the consequesnce of a general average act.

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Port of refuge expenses

Back 30

general average expenditures that result from the vessel's entering a port of refuge.

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Substituted expenses

Back 31

Expenses that are incurred instead of general average expenditures and are therefore allowable in general average settlements up to the amount of the general average expenditure avoided.

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Contributory value

Back 32

the value of the vessel and of each cargo interest hat is used in apportioning the general average among the varius parties to a maritme venture.

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Sue and labor charges

Back 33

Costs or expenses incurred by the insured in complying with the sue and labor clause in the insurance policy which requires the insured to take reasonable measures to protect the insured property from impending or further loss by an insured peril.