P&C Inland Marine and Ocean Marine Insurance

Question 1

What is inland marine insurance primarily designed to cover?

Accepted Answer

Property in transit over land and other types of movable or specialty property

Answer

Ocean-going vessels and their cargo

Answer

Real property permanently attached to a fixed location

Answer

Workers injured during transportation of goods

Question 2

Which organization publishes the Nationwide Marine Definition that establishes what qualifies as inland marine insurance?

Accepted Answer

NAIC (National Association of Insurance Commissioners)

Answer

ISO (Insurance Services Office)

Answer

FEMA (Federal Emergency Management Agency)

Answer

NIMA (National Inland Marine Association)

Question 3

A 'floater' policy in inland marine insurance is best described as:

Accepted Answer

A policy that covers property wherever it may be located

Answer

A policy that covers property stored on navigable waterways

Answer

A policy that transfers between different insurers based on risk

Answer

A policy that covers floating structures such as docks

Question 4

Which of the following is a classic example of coverage provided by a commercial inland marine policy?

Accepted Answer

A contractor's tools and equipment while being used at various job sites

Answer

A retail store's building and attached structures

Answer

A fleet of company-owned automobiles on scheduled routes

Answer

Employee group health and disability benefits

Question 5

The Jewelers Block policy is a specialized inland marine form that covers jewelry:

Accepted Answer

While on display in the store, in transit, or secured in a vault

Answer

Only while being shipped by a licensed common carrier

Answer

Only when stored in an approved safe or vault overnight

Answer

Only against theft by outside parties, not employee dishonesty

Question 6

Which coverage form would be most appropriate for insuring a valuable fine arts collection on a scheduled basis?

Accepted Answer

Scheduled Personal Property inland marine form (Fine Arts floater)

Answer

Commercial General Liability broadening endorsement

Answer

Standard Commercial Property Building and Personal Property form

Answer

Business Owners Policy personal property extension

Question 7

Ocean marine insurance differs from inland marine insurance primarily because it covers:

Accepted Answer

Ships, cargo, and perils specifically associated with ocean voyages

Answer

Property transported by rail across coastal states

Answer

Property stored in warehouses located near coastal ports

Answer

Wind and water damage to property within a mile of the ocean