CMC Claims Handling & Conflict Resolution 2 — Questions and Answers
Question 1: Under the Carmack Amendment, what is the standard carrier liability for loss or damage to household goods in interstate moves?
- Full replacement value of the item
- Actual loss or damage, limited by the declared value
- 60 cents per pound per article (Correct answer)
- The depreciated market value of the item
Correct answer: 60 cents per pound per article
The default Carmack Amendment liability is 60 cents per pound per article unless the shipper selects full value protection.
Question 2: A customer files a claim 10 months after delivery for furniture damaged during a move. Under FMCSA regulations, the carrier must acknowledge the claim within how many days?
- 15 days
- 30 days (Correct answer)
- 45 days
- 60 days
Correct answer: 30 days
FMCSA regulations require carriers to acknowledge receipt of a written claim within 30 days.
Question 3: What is the primary purpose of requiring a customer to note exceptions on the inventory sheet at delivery?
- To increase the carrier's liability exposure
- To establish proof of pre-existing damage versus transit damage (Correct answer)
- To void the customer's rights under full value protection
- To automatically trigger an insurance payout
Correct answer: To establish proof of pre-existing damage versus transit damage
Notations on delivery inventory distinguish items damaged before the move from those damaged during transit, which is critical for claim validity.
Question 4: A shipper purchased Full Value Protection. Their antique lamp worth $2,000 is destroyed during the move. The carrier's BEST option under Full Value Protection is to:
- Pay 60 cents per pound
- Repair, replace with a like item, or pay the current market value (Correct answer)
- Reimburse only the depreciated value
- Deny the claim if the item was not on the high-value inventory
Correct answer: Repair, replace with a like item, or pay the current market value
Under Full Value Protection, the carrier must repair, replace with a like item of equal value, or pay the current market replacement value.
Question 5: During conflict resolution, a customer insists their claim settlement is too low and demands arbitration. What is the CMC's recommended first step before proceeding to formal arbitration?
- File a complaint with the FMCSA immediately
- Attempt direct negotiation and offer mediation (Correct answer)
- Escalate to the carrier's legal department
- Require the customer to submit a written demand letter
Correct answer: Attempt direct negotiation and offer mediation
Best practice is to first attempt direct negotiation and offer mediation before escalating to formal arbitration, saving time and cost for both parties.
Question 6: Which document must a carrier provide to all interstate household goods shippers BEFORE the move?
- Bill of Lading only
- Your Rights and Responsibilities When You Move booklet (Correct answer)
- A signed arbitration agreement
- A certificate of insurance
Correct answer: Your Rights and Responsibilities When You Move booklet
FMCSA requires carriers to provide the 'Your Rights and Responsibilities When You Move' booklet to all interstate household goods shippers prior to the move.
Question 7: A customer files a damage claim but the carrier believes the damage was caused by the customer's improper packing. What is the carrier's correct course of action?
- Deny the claim without investigation
- Accept full liability regardless of cause
- Investigate, document findings, and deny or partially pay with written explanation citing owner-packed exceptions (Correct answer)
- Offer a 50% settlement automatically
Correct answer: Investigate, document findings, and deny or partially pay with written explanation citing owner-packed exceptions
Carriers must investigate all claims thoroughly and, if denying based on owner-packed exceptions, provide a written explanation citing the specific exception.
CMC Claims Handling & Conflict Resolution 2
Under the Carmack Amendment, what is the standard carrier liability for loss or damage to household goods in interstate moves?