P&C Inland Marine and Ocean Marine Insurance 3

Question 1

Valuable Papers and Records inland marine coverage typically pays for:

Accepted Answer

The cost to reconstruct or reproduce documents that have been destroyed

Answer

The face value of negotiable instruments such as bonds or checks

Answer

The sentimental or historical value of truly irreplaceable original documents

Answer

Electronic data and software stored on computer systems

Question 2

Which inland marine form is specifically designed to protect a business when a customer's property entrusted to it is damaged or lost?

Accepted Answer

Bailee's Customer coverage under an inland marine policy

Answer

Commercial General Liability policy with a care, custody, and control endorsement

Answer

Business Owner's Policy personal property extension endorsement

Answer

Employee Theft coverage under a commercial crime policy

Question 3

An Installation Floater inland marine form is designed to cover machinery and equipment:

Accepted Answer

From the time it leaves the vendor until it is installed and accepted at the job site

Answer

Only after it has been permanently installed and accepted at a customer's site

Answer

Only while it is in transit from the manufacturer to a warehouse

Answer

Only for damage caused by the installation contractor's negligence

Question 4

Motor Truck Cargo insurance, as a type of inland marine coverage, primarily protects:

Accepted Answer

Goods owned by shippers while in the trucking carrier's possession during transport

Answer

The physical truck and trailer against collision and comprehensive losses

Answer

The trucking company's liability for bodily injury caused by its drivers

Answer

The cargo owned by the trucking company itself during transport

Question 5

An EDP (Electronic Data Processing) floater provides coverage that standard commercial property policies may not fully address, specifically including:

Accepted Answer

Computer hardware, software, data media, and extra expenses from equipment breakdown

Answer

The building and physical structure housing the computer servers

Answer

Liability arising from data breaches or unauthorized access to stored data

Answer

Employee theft of laptop computers and mobile devices

Question 6

What is the key difference between a 'scheduled' inland marine policy and a 'blanket' inland marine policy?

Accepted Answer

Scheduled policies list specific items with individual values; blanket policies cover all eligible items up to a single aggregate limit

Answer

Scheduled policies provide broader covered perils; blanket policies are more restrictive

Answer

Scheduled policies are only available for commercial risks; blanket policies are for personal risks

Answer

Scheduled policies always use agreed value; blanket policies always use actual cash value

Question 7

Under ocean marine law, 'General Average' requires that:

Accepted Answer

All parties to a voyage proportionally share losses from a voluntary sacrifice made to save the ship and cargo

Answer

All cargo on a vessel be insured to at least its average market value

Answer

The ship owner bear all losses that are greater than the average claim for similar voyages

Answer

Insurance companies average claims from multiple voyages to determine marine rates