Inland Marine and Ocean Marine Insurance Flashcards
7 cards from real P&C practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Inland Marine and Ocean Marine Insurance flashcards as text
What is inland marine insurance primarily designed to cover?
Answer: Property in transit over land and other types of movable or specialty property
Inland marine insurance was originally designed to cover goods in transit over land and has expanded to include various types of movable and specialty property that standard commercial property policies do not adequately address.
Which organization publishes the Nationwide Marine Definition that establishes what qualifies as inland marine insurance?
Answer: NAIC (National Association of Insurance Commissioners)
The NAIC publishes the Nationwide Marine Definition, which defines the scope of what can be written under inland marine insurance forms and distinguishes marine from other property lines.
A 'floater' policy in inland marine insurance is best described as:
Answer: A policy that covers property wherever it may be located
A floater policy covers property wherever it may be located, meaning coverage travels with the insured item rather than being restricted to a specific location.
Which of the following is a classic example of coverage provided by a commercial inland marine policy?
Answer: A contractor's tools and equipment while being used at various job sites
Contractors' tools and equipment are a classic inland marine risk because they are mobile, moved to different job sites, and not adequately covered by standard commercial property policies tied to a fixed location.
The Jewelers Block policy is a specialized inland marine form that covers jewelry:
Answer: While on display in the store, in transit, or secured in a vault
The Jewelers Block policy provides broad all-risk coverage for a jeweler's merchandise whether on display for sale, in transit between locations, or stored in a vault.
Which coverage form would be most appropriate for insuring a valuable fine arts collection on a scheduled basis?
Answer: Scheduled Personal Property inland marine form (Fine Arts floater)
A Scheduled Personal Property inland marine form, often called a Fine Arts floater, provides specialized coverage for fine arts on an agreed or appraised value basis, which standard property forms do not adequately provide.
Ocean marine insurance differs from inland marine insurance primarily because it covers:
Answer: Ships, cargo, and perils specifically associated with ocean voyages
Ocean marine insurance covers the hull (the vessel itself), cargo, freight, and maritime liability specifically associated with ocean navigation and the unique perils of sea voyages.