American Institutes Hull Clauses

Front 1

(AIHC) American Institute Hull Clauses

Back 1

Hull insurance form commonly used in the US. Covers particular average or total loss, sue & labor, GA and Salvage,

Front 2

What is the liner negligence clause?

Back 2

Replaces the additional perils clause with broader "All-risk" not named perils. This provides coverage for negligence as well as condemned parts.

Front 3

What is the liner repair clause ?

Back 3

Provides coverage for the cost of reasonable temporary repairs and overtime incurred by the assured in order to maintain the vessel's advertised sailing schedule.

Front 4

What is lay-up return on a hull policy?

Back 4

A return of premium for each period of 30 consecutive days that the insured vessel is laid up in port for.

Front 5

Limitation of shipowner's liability act

Back 5

a US statue enacted in 1851 that allows shipowners being sued under american admiralty law to seek a limitation of liability from US district court.

Front 6

Trading warranty (navigation warranty)

Back 6

Express warranty that restricts the navigation of the vessel to certain waters or restricting the types of cargo the vessel may carry.

Front 7

American Institute trade warranties

Back 7

Warranties that are commonly added to AIHC policies covering oceangoing vessels that have been classified for full ocean operation.

Front 8

P.P.I

Back 8

Policy Proof of Interest- a hull policy that does not require proof of interest when they are issued

Front 9

F.I.A

Back 9

Full interest admitted - a hull policy that doesn't require proof of insurable interest.

Front 10

Under an AIHC policy what situations does the insurer waive it's rights to subrogation?

Back 10

Against affiliated, subsidiary, or interrelated companies of the assured.

Front 11

What types of property are specifically excluded from coverage under AIHC?

Back 11

Cargo containers, barges, lighters.

Front 12

What are three examples of perils of the sea?

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1. Mishaps during navigation (Stranding,grounding)

2. Collision or Alission

3. Abnormally strong winds and or rough seas.

Front 13

What is the difference between piracy and assailing thieves?

Back 13

Piracy is restricted to the "high seas" or in a place outside the jurisdiction of a nation. The forceful theft that occurs while the vessel is in a harbor or other territorial water is likely to be covered under assailing thieves.

Front 14

What causes of loss are specifically excluded by the AIHC?

Back 14

- SR&CC

- Ware risks

- Nuclear

Front 15

Why and when would a loss caused by negligence of a charter or repairer be covered?

Back 15

This is provided by the negligence of charters and repairers clause. It could also be provided if the loss or damage to the vessel is caused by one of the many other insured perils.

Front 16

What two types of deductibles that might be included in an AIHC policy?

Back 16

- An annual aggregate

- Conveyance (claim) deductible

Front 17

What does the AIHC allow the insurer to control the cost of repairs?

Back 17

1. appoint it's own surveyor to asses the damage

2. veto any repairer proposed by the assured

3. require bids to be taken for the job

Front 18

How does the AIHC GA and Salvage clause encourage the assured to insure the vessel to full value?

Back 18

If the contributory value of the vessel is greater than the insured value, the insurers will pay only a portion of the amount of the vessel's contribution to GA.

Front 19

How is the policy limit utilized in an AIHC claim that involves both damage to the insured vessel and collision liability?

Back 19

They will be treated as separate contracts on insurance and the policy limit could be paid twice by the insurer.

Front 20

What liability losses are excluded under the Collision Liability clause?

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- Wreck removal expenses

- property damage other than damage to the other vessel & it's cargo

- clean up of oil spills or pollutants

- damage to cargo on the insured vessel

- bodily injury, illness, or death

Front 21

What is provided by the AIHC Pilotage and Towage clause?

Back 21

Covers the assureds contractual agreements with a tower and pilots liability.

Front 22

When does the duration of risk clause hold the vessel covered past expiration?

Back 22

When at sea, in distress, or in a port of refuge.

Front 23

What four situations will automatically terminate an AIHC policy based on the change of ownership clause?

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1- Change in ownership or flag of the vessel

2- Placing the vessel under new management

3- Chartering or requisition of the vessel (bare-boat)

4- change / cancellation of vessels classification society.

Front 24

Why is a return of premium under AIHC calculated on the basis of "Net Premium"

Back 24

Net premium is used because a brokers commission is considered earned when the policy is issued.

Front 25

What are two instances that the automatic termination temporarily get postponed under the change of ownership clause?

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1- If the vessel is at sea

2- If the change of ownership was involuntary.

Front 26

Under the AIHC adventure clause, what three things must the assured do to be "held covered" for a breach of conditions as to trade?

Back 26

1- Notify asap

2- Accept any changes of coverage

3- Pay any additional premium

Front 27

What is the restriction on Increased Value insurance by the AIHC?

Back 27

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