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62 Cards in this Set

  • Front
  • Back

nationwide marine definition

statemetn of types of property that may be insured on inland marine and ocean marine insurance forms

nonfiled classes - uncontrolled classes

classes of inland marine business for which neither policy forms nor rates must be filed with the state department

file classes - controlled classes

classes of inland marine business for which policy forms and/or notes must be filed with the state department

nonfiled inland marine insurance offer more flexibility than filed

because the form can contain whatever provisions the insured and insurer agree upon and not filed with the state


policy designed to cover property that floats or move from location to location

invoice value

valuation basis that values covered property at invoice value including freight

agreed value method

method of valuing property in which the insurer and insured agree at the time the policy is written on the maximum amount that will be paid if loss occurs. best used when item is hard to value such as art.

business income and electronic data processing equipment policies

sometimes business income extend to cover time element of losses resulting from damage to or destruction of the insured computer system

business income and inland marine builders risk policy

business income extended to cover time element losses resulting from damage to or destruction of building during course of construction


person shipping goods


person that receives the property being transported by the carrier

common carriers

airline, railroads, or trucking company that furnish transportation to any number of public seeking their services

contract carriers

carriers that furnish transportation services to shipper with whom they have contracts

act of God

natural and unavoidable catastrophe that interupts the expected course of events

inherent vice

condition within the propety that make it destroy itself

bill of lading

document acknowledging receipts of goods from the shipper, given by the carrier which includes terms of the contract for carriage for goods


travel contract in which transportation is temporarily hired for a specific trip

5 exceptions to cargo liability for common carrier

1. act of God

2. acts of public enemy - country at war

3. excercise of public authority - government

4. shippers fault or neglect

5/ inherent vice

annual transit policy

policy that covers all shipments made or received by insured throughout a 1 year policy period

open cargo policy

policy that covers all goods shipped/received by the insured during the policy term; comparable to annual but without expiration date


in ocean marien, the party names as the insured

general average

partial loss that must be shared by all parties to a voyage

sue and labor clasuse

clause that covers the cost of resonable measures tha the insured is required to take to protect the property from damage at the time of loss

warehouse-to-warehouse coverage

clause in open cargo policy that covers the insured cargo during the ordinary course of transit from time cargo leaves the point of shipment until delivered to its final destination

free of capture and seizure warranty

warranty that excludes loss caused by war, piracy, virtually any lawful or unlawful taking of the vessel

strikes, riots, and civil commotion warranty

warranty that excludes loss caused by strikes, labor, disturbances, riots, vandalism, or malicious acts

delay clause

clause that excludes coverage for loss cause by delay, such as loss of market, spoilage, and business interruption

inchmaree clause

clause that adds coverage to an ocean marine policy for loss resulting from bursting of boilers, breakage of shafts, latent defects in the vessel or faults of errors in the navigation or management of the vessel

free of particular average/american condition warranty - fpa/ac

exceptive warranty that excludes particular average unless the loss is actually caused by the stranding, sinking, or burning of the vessel or it collison with another vessel

particular average

partial loss that is borne by only one party to a voyage

accumulation clause

clause in open cargo policies that doubles the policy limit when, shipments accumulate at some point in transit

trip transit policy

policy that covers a particular shipment of goods specified in the policy

mail coverage form

form that covers a financial institution against loss of securities and other negotiable instruments while in transit through specified types of mail

parcel post policy

inland marine policy that provides broad coverage on parcel post shipments

motor truck cargo liability polity

policy that covers a trucker's liabiltiy for damage to carge of others being transported by the trucker

owners' goods on owners' trucks policy

type of motor truck cargo policy that covers any type of organization for damage to its own cargo while being transported

bmc32 - endorsement for motor common carrier polcies of insurance for cargo liability

endorsement that insurers must attach to motor truck cargo liability polices of inerstate carriers stateing that the insurer will pay cargo claims for which the insured is liable up to the limits required by the us department of transportation

equipment floaters

catergory of inland marine policies covering various types of equipment wherever it may be located in the policy period

contractors equipment floater

policy that covers mobile equipment or tools while located anywhere in the coverage territory

upgraded value

cost to replace covered equpment with the latest comparable state-of-the-art equipment available can be used as a valuation basis in an edp floater

breakdown coverage

coverage in an edp equipment floater for perils such as mechanical failure electrical disturbances, and damage to electronic data when covered equipment breaks down

installation floater

policy that covers a contractor's interest n builidng supplies or fixtures tha the contractor has been hired to install


party temprarily posses the personal property in a bialment


owner of property in a bailment

warehouse operators legal liability policy

policy that covers warehouse operators against liability for damage to the property of others being stored in operators' warehouse

bailees' customers policy

a policy that covers damage to customers' goods while in the possession of the insured, regardless whether the insured is legally liable for the damges

pattern and die floater

policy that covers the insured's patterns and dies while located at the premises of others and also while in transit

processing floater

policy that covers the insured's goods while being worked on at a subcontractor's or processor's premises and while in transit

dealers policy

policy that covers inventory an other property of any of the types of dealers that qualify for inland marine coverage

block policy

dealers policy, particular one written for jeweler or furrier

signs coverage form

form that covers neon, fluorescent, automatic, or mechanical signs

accounts receivable insurance

insurance that covers the sum the insured is unable to collect when records of accounts receivable are destroyed by covered cause of loss

valuable papers and records insurance

insurance that covers direct physical loss to valuable papers and records such as blueprints

or order phrase

permits the assured to direct the insurer to pay a loss to the consignee, bank or other party with insurable interest

in additon to assured's insterest, open cargo policy cover

general average and sue and labor charges

principal warranties of an ocean cargo polciy

1. fcs warranty - excludes loss caused by taking of vessel by another party

2. srcc - excludes losses caused by riots strikes, etc

3. delay clause - excludes coverage for financial and property loss when shipment is delayed

named perils on ocean cargo policy

perils of the sea, fire, jettison, assailing thieves, barratry and all other similar perils

how covered shipments are valued under ocean cargo policy

invoice value and freight plus advance equal to 10 percent of the invoice value and freight

edp equipment policy vs commercial property policy

1. edp policies cover perils not covered under cpp

2. edp policy covers property in transit which cpp excludes

loss of goodwill exposure

can result if the bailee does not pay the customers for losses to their property while in bailee's custody.

type of property insured under dealers policy


equipment dealers

fine arts


camera dealers

musical eqipment dealers

account receivables insurance covers

- uncollectible accounts receivable

- interest charged

- collection expenses

- other reasonable expenses