Inland Marine and Ocean Marine Insurance Flashcards

Valuable Papers and Records inland marine coverage typically pays for:

Answer: The cost to reconstruct or reproduce documents that have been destroyed

Valuable Papers and Records coverage pays the cost to reconstruct or reproduce documents destroyed by a covered peril; it does not pay intrinsic or sentimental value for items that cannot be reproduced.

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

Answer: Bailee's Customer coverage under an inland marine policy

Bailee's Customer coverage specifically protects a business from financial loss when customers' property entrusted to the business for service, repair, or storage is damaged or lost.

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

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

An Installation Floater covers equipment and materials from the time they leave the vendor's or contractor's premises through transit and installation until the project is completed and accepted by the customer.

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

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

Motor Truck Cargo (Cargo Liability) insurance covers the shipper's goods while they are in the trucker's possession, protecting against loss or damage to those goods during transport.

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

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

EDP policies are specifically tailored to cover the unique exposures of computer systems, including hardware, software, data media, and the extra expenses a business incurs when computer systems are damaged or unavailable.

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

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

A scheduled policy specifically lists each covered item with its individual insured value, while a blanket policy covers all eligible property under one total limit without identifying each item separately.

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

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

General Average is an ancient maritime law principle requiring all parties with a financial interest in a voyage — shipowner and all cargo owners — to share proportionally in losses resulting from a deliberate sacrifice made to save the ship and remaining cargo.