CMI CMI Marine Insurance & Casualty Assessment 2

Question 1

What is the primary function of a marine surveyor retained by an insurer after a casualty?

Accepted Answer

To assess the nature and extent of damage and determine the cause for insurance purposes

Answer

To serve as the vessel's classification society representative during repairs

Answer

To negotiate the salvage award on behalf of the insurer

Answer

To re-flag the vessel under a more favorable jurisdiction

Question 2

In marine casualty assessment, 'proximate cause' is best defined as:

Accepted Answer

The dominant, effective cause of a loss without which the loss would not have occurred

Answer

The most geographically nearby contributing factor to a casualty

Answer

The first event in a chain of causation regardless of its relative importance

Answer

A term used exclusively in US admiralty court proceedings

Question 3

Under US maritime law, the concept of 'seaworthiness' for insurance purposes means that:

Accepted Answer

The vessel must be reasonably fit for the intended voyage at the time it commences

Answer

The vessel must hold a current Coast Guard Certificate of Inspection at all times

Answer

The vessel must be able to survive any foreseeable weather condition during the policy period

Answer

The vessel must pass an annual dry-dock survey with no deficiencies noted

Question 4

A CMI investigator finds that a vessel owner deliberately scuttled the vessel to collect insurance proceeds. This act is classified as:

Accepted Answer

Marine insurance fraud, which voids the policy and may result in criminal prosecution

Answer

A constructive total loss eligible for full policy settlement under US law

Answer

An acceptable business decision if the vessel's market value exceeded the insured value

Answer

A general average act shared proportionally among all interested parties

Question 5

Which of the following best describes a 'general average' contribution in maritime law?

Accepted Answer

A voluntary sacrifice or expenditure made for the common safety of the ship and cargo, shared by all interests

Answer

The total average cost of vessel repairs following any accidental casualty

Answer

A penalty assessed equally against all crew members after a major casualty

Answer

A standard depreciation formula applied to vessel hull value after a loss

Question 6

In evaluating a marine casualty for insurance purposes, a CMI investigator should review the vessel's class survey records primarily to:

Accepted Answer

Identify pre-existing deficiencies or deferred maintenance that may have contributed to the loss

Answer

Confirm that the vessel's flag state registration was current at the time of the incident

Answer

Verify that all crew members completed mandatory safety drills before departure

Answer

Determine the vessel's maximum cargo capacity under load line regulations