TRIP Claims Management and Loss Control 2

Question 1

In a cargo claim scenario where goods are damaged due to improper stowage, which party typically bears primary liability under a bill of lading?

Accepted Answer

The carrier responsible for stowage

Answer

Under a bill of lading, the carrier assumes responsibility for proper stowage of cargo unless the shipper stowed the goods and the bill of lading indicates 'shipper's load and count.'

Question 2

What is the primary purpose of a 'reservation of rights' letter in the claims process?

Accepted Answer

To allow the insurer to investigate while preserving the right to deny coverage later

Answer

A reservation of rights letter allows the insurer to investigate and even defend a claim without waiving its right to later deny coverage if a policy exclusion applies.

Question 3

Which loss control measure is most effective at reducing frequency of rear-end collisions in a commercial trucking fleet?

Accepted Answer

Installing automatic emergency braking (AEB) systems

Answer

Automatic emergency braking systems detect imminent collisions and apply brakes automatically, directly reducing rear-end collision frequency in commercial fleets.

Question 4

Under the Carmack Amendment, what is the maximum liability of a motor carrier for lost or damaged interstate cargo?

Accepted Answer

Actual loss or damage sustained by the shipper

Answer

The Carmack Amendment limits motor carrier liability to the actual loss or damage sustained, not replacement cost, unless a higher value is declared and agreed upon.

Question 5

A transportation company implements a driver safety incentive program that rewards zero-incident months. This is an example of which loss control strategy?

Accepted Answer

Behavioral modification through positive reinforcement

Answer

Driver incentive programs use positive reinforcement to modify behavior and reduce unsafe driving practices, a core behavioral loss control strategy.

(TRIP) Transportation Risk and Insurance Professional Practice Test

(TRIP) Transportation Risk and Insurance Professional Practice Test

TRIP Claims Management and Loss Control 2