CMC CMC Valuation Coverage & Liability Options

Question 1

What is the minimum valuation level that a mover must offer on an interstate household goods shipment under federal law?

Accepted Answer

Released rate at 60 cents per pound per article

Answer

Full replacement value at no charge

Answer

$1.25 per pound per article

Answer

Actual cash value coverage

Question 2

Under Full Value Protection (FVP), what is the carrier's liability if an item is lost or destroyed?

Accepted Answer

Repair, replace with like item, or pay current market replacement value

Answer

Pay 60 cents per pound of the item

Answer

Pay actual cash value minus depreciation

Answer

Return a like-for-like item only

Question 3

What term describes the customer's declaration of a higher value for the entire shipment to increase carrier liability beyond the standard rate?

Accepted Answer

Declared value

Answer

Lump-sum value

Answer

Released value

Answer

Assessed value

Question 4

If a customer selects released rate valuation and an item worth $800 weighing 10 lbs is destroyed, what does the carrier owe?

Accepted Answer

$6.00

Answer

$800.00

Answer

$48.00

Answer

$100.00

Question 5

What deductible option can a customer choose under Full Value Protection to reduce the premium cost?

Accepted Answer

A higher deductible amount

Answer

A lower declared value

Answer

A partial release waiver

Answer

A binding estimate adjustment

Question 6

Which federal regulation establishes the valuation and liability rules for interstate household goods carriers?

Accepted Answer

49 CFR Part 375

Answer

49 CFR Part 387

Answer

49 CFR Part 376

Answer

49 CFR Part 392