Assignment 5 Flash Cards

Front 1

Marine insurance

Back 1

Insurance that, in the U.S., includes both ocean and inland marine coverage and in the rest of the world is limited to insurance for vessels and cargo.

Front 2

Nationwide Marine Definition

Back 2

A statement used mainly to determine whether a particular coverage is marine insurance (inland on ocean)

Front 3

What qualifies as Marine?

Back 3

That which is under the Nationwide Marine Definition:

A. Imports
B. Exports
C. Domestic shipments
D. Instrumentalities of transportation and communication (bridges, tunnels, piers, wharves, docks, pipelines, power and telephone lines, radio and television towers and communication equipment, and outdoor cranes and loading equipment)
E. Various types of property owned or used by individuals, such as jewelry, furs, musical instruments, silverware, coin collections and stamp collections
F. Various types of property pertaining to a business, a profession, or an occupation. Examples of such property include mobile equipment, builders risks, property in the custody of bailees, live animals, property at exhibitions, and electronic data processing equipment

Front 4

Inland marine insurance

Back 4

Insurance that covers many different classes of property that typically involve an element of transportation

Front 5

Common carriers

Back 5

Airlines, railroads, trucking companies, and other entities that furnish transportation services to the public.

Front 6

Contract carriers

Back 6

Carriers that furnish transportation services to shippers with whom they have contracts

Front 7

Private carriers

Back 7

Organizations that transport their own goods.

Front 8

Bill of lading

Back 8

The contract between the shipper and the carrier, which may limit the shipper's recovery for cargo loss

Front 9

Common carriers are not liable for loss caused by:

Back 9

- Acts of God (meaning natural phenomena such as floods, hurricanes, tornadoes, or earthquakes)
- Acts of public enemies (meaning war risks)
- Acts of public authority
- Neglect or fault on the part of the shipper
- Inherent vice in the cargo itself

Front 10

Straight bill of lading

Back 10

Fixes no limit on the amount of recovery

Front 11

Released value bill of lading

Back 11

Limits recovery to a specified amount

Front 12

F.O.B.

Back 12

"Free on Board" - indicates that the shipper (seller) is responsible for arranging to have the cargo delivered on board the vessel; used more loosely to indicate the point at which ownership and exposure to loss shift from the seller to the buyer

Front 13

Bailment

Back 13

The temporary possession by one party (the bailee) of personal property owned by another party (the bailor) for a specific purpose, such as cleaning or repair

Front 14

Bailee

Back 14

The part temporarily possessing the personal property in a bailment

Front 15

Bailor

Back 15

The owner of the personal property in a bailment

Front 16

Examples of movable equipment and Unusual property (eligible for inland marine insurance)

Back 16

Agricultural equipment, such as tractors and cultivators; mobile equipment used by contractors, such as cranes and backhoes; physicians' and surgeons' equipment; computer equipment; farm animals; fine arts; buildings under construction (builders risks); patterns, molds and dies; partially completed products while at another location for processing; property on exhibition; sales samples while in the custody of sales representatives; valuable papers and records; records of accounts receivable; theatrical property; signs; cameras; musical instruments

Front 17

Filed class

Back 17

The classes of inland marine business for which policy forms and/or rates must be filed w/ the state insurance dept.

Front 18

Nonfiled class

Back 18

The classes of inland marine business for which neither policy forms nor rates must be filed with the state insurance dept.

Front 19

Some examples of nonfiled inland marine coverages:

Back 19

Contractors equipment, builders risk, transit, motor truck cargo liability, difference in conditions, electronic data processing equipment, bailees, instrumentalities of transportation and communication

Front 20

Contractors equipment floater

Back 20

Policy that covers mobile equipment or tools while anywhere in the coverage territory. (Nonfiled)

Front 21

Builders risk policy

Back 21

Policy that covers a building in the course of construction, including building materials and supplies while on or away from the building site. (Nonfiled)

Front 22

Soft costs coverage

Back 22

Coverage for various incidental expenses that might result from a physical loss to a building project, such as additional interest, advertising expenses, or real estate taxes; can be added to a builders risk policy (Nonfiled)

Front 23

Installation floater

Back 23

Policy that covers a contractor's interest in building supplies or fixtures that the contractor has been hired to install. (Nonfiled)

Front 24

Trip transit policy

Back 24

Policy that covers a particular shipment of goods specified in the policy. (Nonfiled)

Front 25

Annual transit policy

Back 25

Policy that covers all shipments made or received by the insured throughout a one-year policy period. (Nonfiled)

Front 26

Motor truck cargo liability policy

Back 26

Policy that covers a trucker's liability for damage to cargo of others being transported by the trucker. (Nonfiled)

Front 27

Difference in conditions (DIC) policy

Back 27

Policy that covers on an "all-risks" basis to fill gaps in the insured's commercial property coverage, especially gaps in flood and earthquake coverage. (Nonfiled)

Front 28

Electronic data processing (EDP) equipment floater

Back 28

Policy that covers computer equipment, software, and electronic data

Front 29

Warehouse operators legal liability policy

Back 29

Policy that covers warehouse operators against liability for damage to the property of others being stored in operators' warehouses. (Nonfiled)

Front 30

Bailees' customers policy

Back 30

Policy that covers damage to customers' goods while in the possession of the insured, regardless of whether the insured is legally liable for the damage. (Nonfiled)

Front 31

Commercial Articles Coverage Form

Back 31

Form that covers photographic equipment and musical instruments used commercially by photographers, motion picture producers, professional musicians and others. (Filed)

Front 32

Camera and Musical Instrument Dealers Coverage Form

Back 32

Form that covers the stock in trade (inventory) of camera dealers or musical instrument dealers; also covers similar property of others in the insured's care, custody or control. (Filed)

Front 33

Equipment Dealers Coverage Form

Back 33

Form that covers the stock in trade of dealers that sell agricultural or construction equipment; also covers customers' equipment in the insured's care, custody, or control. (Filed)

Front 34

Physicians and Surgeons Equipment Coverage Form

Back 34

Form that covers the professional equipment, materials, supplies, and books of physicians, surgeons, and dentists; also covers the insured's office equipment and (if the insured is a tenant) improvements and betterments that the insured has made to the building. (Filed)

Front 35

Signs Coverage Form

Back 35

Form that covers neon, flourescent, automatic, or mechanical signs. (Filed)

Front 36

Theatrical Property Coverage Form

Back 36

Form that covers stage scenery, costumes, and similar property used in theatrical productions. (Filed)

Front 37

Film coverage form

Back 37

Form that covers exposed motion picture film and magnetic tapes or videotapes, including related soundtracks or sound records. (Filed)

Front 38

Floor Plan Coverage Form

Back 38

Form that covers merchandise being held for sale and that the dealer has financed under a floor plan. (Filed)

Front 39

Jewelers Block Coverage Form

Back 39

Form that covers the merchandise of retail jewelers, including similar property of others in the insured's care, custody, or control. (Filed)

Front 40

Mail Coverage Form

Back 40

Form that covers a financial institution against loss of securities and other negotiable instruments while in transit through specified types of mail. (Filed)

Front 41

Accounts Receivable Coverage Form

Back 41

Form that covers losses (including uncollectible accounts) due to destruction of the insured's records of accounts receivable. (Filed)

Front 42

Nonfiled jewerlers block policies are used to insure:

Back 42

1) Retailers w/ average inventories exceeding $250,000; 2) jewelery wholesalers; 3) jewelry manufacturers

Front 43

Valuable papers and records coverage form

Back 43

Form that covers valuable papers and records, such as an architect's blueprints and plans (Filed)

Front 44

Judgment rating

Back 44

Rating used by underwriters to rate one-of-a-kind risks

Front 45

Freight

Back 45

The compensation a carrier receives for transporting cargo

Front 46

Ocean marine insurance

Back 46

Insurance that covers vessels and their cargos, including various vessel-related liability exposures

Front 47

Voyage policy (cargo)

Back 47

Policy that covers cargo for a single trip specified in the policy; comparable to an inland marine trip transit policy.

Front 48

Open cargo policy

Back 48

Policy (ocean marine) that covers all goods shipped or received by the insured during the policy's term; comparable to an inland marine annual trip transit policy

Front 49

Typical valuation of an ocean shipment:

Back 49

Amount of invoice + Freight + 10%

Front 50

Warehouse to warehouse clause

Back 50

Clause in open cargo policies that covers the insured cargo during the ordinary course of transit (including land transit) from the time the cargo leaves the point of shipment until it is delivered to its final destination

Front 51

Sue and labor clause

Back 51

Clause that covers the cost of reasonable measures that the insured is required to take to protect property from damage at the time of loss.

Front 52

General average

Back 52

Partial loss that must, according to maritime law, be shared by all parties to a voyage (cargo owners and vessel owner).

Front 53

Particular average

Back 53

Partial loss that is borne by only one party to a voyage (such as a cargo owner)

Front 54

Hull insurance

Back 54

Insurance that covers physical damage to vessels, including their machinery and fuel but not their cargo

Front 55

Salvage (ocean marine)

Back 55

Refers to situations in which owners of cargo aboard a ship that falls in distress become liable to pay awards to those who put themselves at risk to rescue the ship

Front 56

Covered causes of loss for hull insurance:

Back 56

Perils of the seas, fire, lightning, earthquake, barratry, all other like perils.

Front 57

Perils of the seas

Back 57

Accidental causes of loss that are peculiar to the sea and other bodies of water

Front 58

Barratry

Back 58

Serious misconduct by the vessel's master or crew that is contrary to the owner's interest, such as fraudulent or criminal act that causes damage to the vessel.

Front 59

Collision liability clause

Back 59

Clause that covers the insured's liability for collision damage to other ships and their cargoes

Front 60

Time policy (ocean marine)

Back 60

Covers the insured vessel(s) for a specified period of time (usually a year)

Front 61

Protection and indemnity (P&I) insurance

Back 61

Insurance that covers shipowners against various liability claims due to operating the insured vessel.

i.e., - damage to bridges, piers, wharves, and other structures along waterways; injury to passengers, crew, and other persons on the ship; injury to persons on other ships; damage to cargo of others aboard the insured vessel