CMC CMC Valuation Coverage & Liability Options 2 — Questions and Answers
Question 1: What document must the carrier provide to the customer explaining valuation options before the move?
- Your Rights and Responsibilities When You Move booklet (Correct answer)
- Tariff schedule
- Bill of lading only
- FMCSA safety rating
Correct answer: Your Rights and Responsibilities When You Move booklet
Federal law requires carriers to provide the 'Your Rights and Responsibilities When You Move' booklet, which explains all valuation and liability options.
Question 2: If high-value items (e.g., jewelry, antiques) are included in a shipment, what must the customer do to ensure full carrier liability?
- List them on a high-value inventory form (Correct answer)
- Declare them verbally to the driver
- Pack them separately in labeled boxes
- Purchase third-party insurance only
Correct answer: List them on a high-value inventory form
High-value items must be specifically listed on a high-value inventory form; without this documentation, carrier liability for these items may be limited.
Question 3: What is the per-article threshold above which an item is considered 'high value' and requires special declaration?
- $100 per pound of weight (Correct answer)
- $500 per item
- $1,000 per item
- $250 per pound of weight
Correct answer: $100 per pound of weight
Items valued at more than $100 per pound are classified as extraordinary value items requiring declaration on a high-value inventory form.
Question 4: Which valuation option is NOT the same as insurance and does not transfer risk to a third-party insurer?
- Carrier-provided released rate valuation (Correct answer)
- Third-party transit insurance
- Full Value Protection through an insurer
- Separate liability insurance
Correct answer: Carrier-provided released rate valuation
Released rate valuation is purely a contractual limitation on carrier liability—it is not insurance and does not involve any insurer paying claims.
Question 5: A customer packs their own boxes (PBO). How does this typically affect the carrier's liability for contents?
- Carrier liability for PBO contents is reduced or excluded for concealed damage (Correct answer)
- Carrier assumes full liability regardless
- PBO boxes are covered under released rate only
- Customer must purchase separate insurance for PBO
Correct answer: Carrier liability for PBO contents is reduced or excluded for concealed damage
When customers pack their own boxes, carriers typically limit or exclude liability for concealed damage to those contents since they did not supervise the packing.
Question 6: Under Full Value Protection, what is the minimum declared value a carrier must allow a customer to set on an interstate move?
- $6.00 per pound times the shipment weight (Correct answer)
- $10,000 flat
- $1.25 per pound times the shipment weight
- $5,000 flat
Correct answer: $6.00 per pound times the shipment weight
The minimum declared value under FVP must be no less than $6.00 per pound multiplied by the actual weight of the shipment.
CMC CMC Valuation Coverage & Liability Options 2
What document must the carrier provide to the customer explaining valuation options before the move?