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
In the context of marine insurance, a 'particular average' refers to:
Answer: A partial loss that affects only specific interests, not shared by all parties to the voyage
Particular average is a partial, accidental loss or damage borne solely by the affected interest, contrasted with general average, which is shared by all parties.
Which document formally declares a vessel to be a constructive total loss in US marine insurance practice?
Answer: A Notice of Abandonment submitted by the shipowner to the insurer
A Notice of Abandonment is the formal tender by which a shipowner transfers ownership of a damaged vessel to the insurer in exchange for a total loss payment.
A CMI investigator assisting with a marine insurance claim would most likely be asked to determine:
Answer: Whether the loss arose from a covered peril and the proximate cause of the casualty
Marine investigators assist insurers by establishing causation and whether the loss falls within the policy's covered perils, which is central to claim evaluation.
Under the principle of subrogation in marine insurance, after paying a claim the insurer:
Answer: Acquires the right to pursue recovery from the party legally responsible for the loss
Subrogation allows the insurer, having compensated the insured, to step into the insured's shoes and seek recovery from the negligent third party.
The term 'sue and labor' clause in a marine insurance policy requires the insured to:
Answer: Take reasonable steps to minimize or prevent further loss after a casualty occurs
The sue and labor clause obligates the insured to act to minimize loss, and costs incurred in doing so are typically recoverable under the policy.
A 'P&I Club' in the maritime industry primarily provides insurance coverage for:
Answer: Third-party liabilities such as crew injury, cargo damage, and pollution claims
Protection and Indemnity (P&I) Clubs are mutual insurers covering shipowners' liabilities to third parties, including personal injury, cargo damage, and oil pollution.