CMI Marine Insurance & Casualty Assessment Flashcards
6 cards from real CMI practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 CMI Marine Insurance & Casualty Assessment flashcards as text
The 'inchmaree clause' in a marine hull policy extends coverage to include:
Answer: Losses caused by the negligence of the master or crew, and by latent defects in machinery or hull
The Inchmaree Clause, derived from a famous 19th-century English case, broadens hull coverage to include accidental crew negligence and latent defects not detectable by due diligence.
What is the role of a 'loss adjuster' in a marine insurance casualty claim?
Answer: An independent specialist appointed to investigate the claim and recommend a settlement amount to the insurer
A loss adjuster conducts an independent investigation of the claim, assesses liability and quantum, and advises the insurer on an appropriate settlement.
Under the Oil Pollution Act of 1990 (OPA 90), a responsible party for a vessel oil spill is required to:
Answer: Establish financial responsibility up to the applicable liability limit and pay removal costs and damages
OPA 90 requires vessel owners and operators to demonstrate financial responsibility (via COFR) and makes them strictly liable for removal costs and specified damages up to statutory limits.
When a CMI investigator identifies salvage costs as part of a casualty assessment, those costs are typically classified under marine insurance as:
Answer: Particular charges recoverable under the policy if incurred to avert or minimize an insured loss
Salvage costs incurred to avoid or reduce an insured loss are recoverable as particular charges under the hull policy, separate from general average adjustments.
Which organization publishes the York-Antwerp Rules that govern general average adjustments in international marine practice?
Answer: The Comité Maritime International (CMI)
The Comité Maritime International (CMI) is the private international law organization responsible for drafting and periodically revising the York-Antwerp Rules on general average.
A CMI investigator reviewing a vessel's insurance policy finds a 'warranted free from particular average' (WFPA) clause. This means the insurer:
Answer: Will not pay for partial losses unless caused by specific named perils such as sinking or stranding
A WFPA clause restricts partial loss coverage, requiring the insured to prove the loss arose from a named peril (stranding, sinking, burning, collision) to recover for a particular average.