CMI CMI Marine Insurance & Casualty Assessment

Question 1

In the context of marine insurance, a 'particular average' refers to:

Accepted Answer

A partial loss that affects only specific interests, not shared by all parties to the voyage

Answer

A loss shared proportionally among all cargo owners and the shipowner

Answer

The average daily operating cost of a vessel during an investigation

Answer

A USCG penalty assessment applied to a specific vessel owner

Question 2

Which document formally declares a vessel to be a constructive total loss in US marine insurance practice?

Accepted Answer

A Notice of Abandonment submitted by the shipowner to the insurer

Answer

A USCG Marine Casualty Report (CG-2692)

Answer

A Certificate of Seaworthiness issued by the classification society

Answer

A Protest of Sea recorded before a notary public

Question 3

A CMI investigator assisting with a marine insurance claim would most likely be asked to determine:

Accepted Answer

Whether the loss arose from a covered peril and the proximate cause of the casualty

Answer

The market value of the vessel at the time of its original purchase

Answer

Whether the vessel's crew holds current STCW certification

Answer

The insurance company's financial solvency rating

Question 4

Under the principle of subrogation in marine insurance, after paying a claim the insurer:

Accepted Answer

Acquires the right to pursue recovery from the party legally responsible for the loss

Answer

Transfers the policy to a secondary insurer for future claims

Answer

Relinquishes all further interest in the vessel and its operations

Answer

Is required to notify USCG of the claim settlement within 30 days

Question 5

The term 'sue and labor' clause in a marine insurance policy requires the insured to:

Accepted Answer

Take reasonable steps to minimize or prevent further loss after a casualty occurs

Answer

File suit against the responsible party within 12 months of the incident

Answer

Labor aboard the vessel during any salvage operation directed by the insurer

Answer

Sue any third party identified in the CMI investigation report

Question 6

A 'P&I Club' in the maritime industry primarily provides insurance coverage for:

Accepted Answer

Third-party liabilities such as crew injury, cargo damage, and pollution claims

Answer

Hull and machinery damage to the vessel itself

Answer

Loss of freight revenue during a vessel's off-hire period

Answer

Port authority fees and pilotage expenses