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

An insurance surveyor evaluates the damage, establishes the circumstances and cause of loss, and provides the insurer with a technical basis for evaluating the claim.

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

Proximate cause is the legally operative cause — the efficient cause that sets other events in motion and directly produces the loss.

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

Seaworthiness requires that the vessel, crew, equipment, and cargo preparation be reasonably adequate for the particular voyage undertaken at its start.

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

Scuttling to collect insurance is a criminal act of fraud that voids coverage and can result in federal charges under the US Mail Fraud and insurance fraud statutes.

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

Under the York-Antwerp Rules, general average requires all parties whose property was saved by a voluntary sacrifice to share proportionally in that loss.

(CMI) Certified Marine Investigator Practice Test

(CMI) Certified Marine Investigator Practice Test

CMI CMI Marine Insurance & Casualty Assessment 2