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15 Cards in this Set

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Bailee for Hire

Is one who has TEMPORARY custody of the personal property of another OTHER than the purpose of sale & who is COMPENSATED as a condition of such custody


1. Jeweler

2. Dry Cleaner

3. Garage


What is the LEVEL of care required to be exercised by Bailee's of Customers Property?

The law defines the obligation owed by bailees of Customers good to be that of ORDINARY.

(take care of the goods of others as would be taken by a prudent & diligent owner of such goods)


Bailees exposures can often be insured as part of the Owners STOCK under most Commercial Property Policies.

Identify 2 other types of POLICIES which might be used to INSURE this exposure

1. Legal Liability policy insures the legal liability of the bailee for loss

2. Specialized bailess customers policies will INSURE direct loss or damage to property regardless of the fault. (furriers, dyers, cleaners & launderers)

Inland Transportation Insurance

What are the 2 coverages of inland transportation

1. In Transit

2. During the delay incidental to transit

What 2 factors should be considered in determining who should purchase insurance coverage on a paticular shipment

1. Whether the owner or the carrier would be responsible for loss to the property

2. to what extent

What is a common carrier?

Common carriers include, airlines, railroads, trucking companies others that furnish transportation to any member of the public seeking their services

What responsibility is owed to the owners of the property by Common Carriers?

common carrier are liable to the owners for the safe delivery of goods entrusted to them.

State 3 general rules to this?

1. Acts of god or natural phenomena not reasonably foreseeable

2. Acts of public enemies

3. Neglect or default of the shipper

Identify 3 types of bills of lading used by Common carriers

Standard or Ordinary Bill of lading- used when the owner feels the the tariff value is reasonable and does not wish to purchase extra insurance for the goods being shipped

Valued bill of Lading- when the owner feels the tariff value is too low and wants to pay an extra premium to increase the insured value

Released Bill of Lading- used when the value of the stock is less than the tariff and the owner wishes to reduce their transportation rate through bills of lading/ or when the value is higher than the ordinary bill of lading

Transportation Floater

Broad Form

Used to insure incoming & outcoming shipments.

Designed to insure

1. Property owned by the insured

2. Property owned by others which the insured is responsible for

3. Sold but not delivered

Other forms of transportation that can be added are as follows:

1. Railroad

2. public or private truckman

3. Vehicles hired or leased by insured

4. Airlines

Trip Transit

A business wishing to insure the transit exposure of a single shipment of property

The truckmans legal liability Cargo Rider is used to insure the liability of the carrier for the loss to property of others:


when coverage applies: from the time the goods have been loaded for shipment until they reach their destination

how are limits selected: Insured is required to select an amount of insurance for each vehicle stated on the policy

Can coverage be endorsed on for temporary locations? Yes for property temporarily at the insureds terminal or loading station

100% Co-Insurance applies

Premium is charged on a provisional basis and insured must follow reporting requirements to determine actual premiums at the end of the policy

State 3 reasons why an owner of property might not rely on a Carriers Insurance?

1. May not have adequate amounts of insurance

2. May not have Broad enough coverage

3. May have been cancelled or lapsed

3 Advantages available to owners having transportation insurance

1. Prompt recovery of losses directly from the insurer

2. Amount of Insurance payable is generally greater than that provided by carriers policy(carriers usually limited by bill of lading contract)

3. Broader Perils insured against