Questions and Answers
Which type of carrier is responsible for transporting goods for the general public?
Common carriers are not liable for the safe delivery of goods under any circumstances.
False
What are the exceptions to liability for common carriers?
Acts of God, neglect of the shipper, public enemy actions, inherent vice in goods.
Common carriers must file proof of ________ insurance with provincial or municipal authorities.
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Match the following types of carriers with their descriptions:
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Who has insurable interest in goods transported?
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Private carriers typically transport goods they own or those owned by affiliated companies.
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What is the primary purpose of a bill of lading?
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Which item is explicitly excluded from coverage unless specifically endorsed?
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Losses due to moths and rodents are covered under standard property insurance.
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What is a provisional premium?
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Insured is entitled to the actual ________ cost at the time of loss.
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Match the following types of cargo insurance with their descriptions:
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What factor is NOT mentioned as influencing the cost of insurance?
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Dampness and dryness are considered covered losses under property insurance.
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What is the unique exclusion for the Transportation Floater Rider (Limited Form)?
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What is the typical co-insurance requirement for Contractors Equipment Floater?
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The broad form coverage under Builders' Risk Insurance only covers specified risks.
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What is the duration after which automatic coverage for newly acquired equipment ceases if not added to the schedule?
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The __________ form of coverage provides comprehensive coverage against a broader range of risks.
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Match the following types of equipment with their descriptions:
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Which of the following items is specifically excluded from coverage?
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Operational limits cover losses from wear and tear.
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Who can purchase a Builders' Risk Insurance policy?
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What must coverage limits reflect according to the guidelines provided?
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The Jewellers' Block Policy does not cover property of others held for sale.
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What type of policy is tailored for businesses with specialized merchandise that standard policies do not adequately cover?
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The ___________ Policy provides all risks coverage for fur merchants and dealers.
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Match the following specialized dealer forms with their primary focus:
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Which of the following is not covered under Contractor’s Tools?
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Temporary work includes scaffolding, forms, and hoardings.
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What is the purpose of the Installation Floater Rider?
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Coverage ceases when the building is __________.
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Match the following coverage options with their descriptions:
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Which of the following natural disasters is excluded from Builders' Risk coverage?
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Floods are covered under the Builders' Risk insurance.
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What are Premium Adjustments based on?
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Study Notes
Potential Candidates for Insurance
- Defined by Canadian and British Insurance Companies Act and Foreign Insurance Companies Act.
- Candidates include existing clients with shipping needs, moving and storage companies, freight forwarders, consolidation companies, and trucking/delivery firms.
Determining Insurable Interest
- Insurable interest is held by property owners, carriers, and businesses delivering goods.
- Responsibility lies with the owner or carrier, with liability determined by the carrier type.
Types of Carriers and Their Legal Liability
- Common Carriers: Transport goods for the public, with broad liability.
- Contract Carriers: Transport goods for specific clients with limited liability.
- Private Carriers: Transport their own goods, with liability based on ownership.
Overview of Common Carrier Liability
- Includes airlines, railroads, trucking firms, providing transportation services to the public.
- Liable for safe delivery, with exceptions for acts of God, public enemies, shipper negligence, and inherent defects.
Filing Certificates of Insurance
- Common carriers must file proof of liability insurance with government authorities.
- Large corporations may self-insure, avoiding filing requirements that apply to smaller carriers.
Bills of Lading
- Governed by government tariffs, establishing shipping rates and carrier liability.
- Exclusions include items like jewellery, furs, manuscripts, and movable livestock.
- Additional exclusions for inadequate packing, inherent goods vice, and natural deterioration.
Provisional Premiums
- Charged at policy inception based on estimated shipment values.
- Adjustments are made post-shipment based on actual values reported.
Valuation of Property at Time of Loss
- Insured entitled to actual invoice cost, cash value if no invoice exists, and prepaid freight costs.
Transportation Floater
- Designed for businesses shipping goods using various transportation methods or handling internal transfers.
Motor Cargo Riders
- Owners Broad Form: Covers all risks for property in the insured's vehicles.
- Named Perils Form: Provides coverage for specific, listed risks.
Trip Transit Policy
- Insures a single shipment, applicable for one-time movements.
- Coverage can be on named perils or all risks basis, influenced by property type, distance, and transportation method.
Truckman’s Liability Cargo Rider
- Covers legal liabilities for property loss while in transit.
- Features a co-insurance clause, generally at 100%.
Contractors Equipment Floater
- Covers moveable equipment owned, rented, or leased by contractors, including various tools and machinery.
- Coverage options include limited form and all risks form, with requirements for scheduled or blanket basis policies.
Builders' Risk Insurance Overview
- Provides coverage for buildings under construction with specific policy requirements.
- Can purchase by project owners or general contractors, with exclusions for contractor’s tools and natural disasters.
Builders' Risk — Broad Form (IBC 4042)
- Offers all risks coverage for property in construction, including materials and temporary structures.
- Coverage terminates when the building is occupied.
Installation Floater Rider
- Designed for contractors involved in machinery and equipment installation.
- Covers property in transit, awaiting installation, and during installation.
Specialized Dealer’s Policies
- Tailored for businesses with high-value items that standard policies do not cover, including jewellers and furriers.
- Jewellers' Block Policy: Covers goods customary to jewellers, repair property, and items in transit.
- Furriers' Block Policy: Comprehensive coverage for all risks associated with fur merchants.
Importance of Coverage Limits
- Adequate limits prevent under-indemnification, ensuring sufficient coverage for potential liabilities and losses.
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Description
This quiz covers the various exclusions in insurance policies, particularly focusing on property and perils that are not typically covered unless endorsed. Topics such as specific items excluded from coverage and additional factors leading to loss will be explored. Test your knowledge on what to watch out for when dealing with insurance claims.
