CFB Claims and Risk Management

Question 1

What federal law governs carrier liability for freight loss and damage in interstate commerce?

Accepted Answer

Carmack Amendment

Answer

The Carmack Amendment (49 U.S.C. § 14706) establishes the liability framework for motor carriers and freight forwarders for loss or damage to goods in interstate commerce.

Question 2

Under the Carmack Amendment, what is the standard time limit for a shipper to file a written freight claim with a carrier?

Accepted Answer

9 months from delivery or scheduled delivery

Answer

The Carmack Amendment allows carriers to set a minimum claim filing window of 9 months from delivery (or scheduled delivery for lost freight), and most carrier tariffs adopt this standard.

Question 3

What type of insurance protects a freight broker when a carrier's cargo insurance fails to pay a valid claim?

Accepted Answer

Contingent cargo insurance

Answer

Contingent cargo insurance (also called contingent liability insurance) steps in to cover cargo losses when the responsible motor carrier's insurance is insufficient or denies the claim.

Question 4

Which document is most critical when filing a freight damage claim to establish that damage occurred during transit?

Accepted Answer

Bill of lading with damage notations signed at delivery

Answer

A bill of lading with damage exceptions noted and signed by the driver at delivery creates a contemporaneous record proving the damage occurred during the carrier's custody.

Question 5

What does 'released value' mean when applied to a freight shipment?

Accepted Answer

The shipper declares a lower value to obtain a reduced rate, limiting carrier liability to that declared amount

Answer

Released value is a declared value lower than the actual commodity value that qualifies the shipper for a reduced freight rate while capping the carrier's maximum liability per pound or per shipment.

(CFB) Certified Freight Broker Practice Test

(CFB) Certified Freight Broker Practice Test

CFB Claims and Risk Management