CMI CMI Marine Insurance & Casualty Assessment 1

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

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.

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 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.

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

Marine investigators assist insurers by establishing causation and whether the loss falls within the policy's covered perils, which is central to claim evaluation.

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

Subrogation allows the insurer, having compensated the insured, to step into the insured's shoes and seek recovery from the negligent third party.

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

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.

(CMI) Certified Marine Investigator Practice Test

(CMI) Certified Marine Investigator Practice Test

CMI CMI Marine Insurance & Casualty Assessment 1