Podcast
Questions and Answers
What method of payment is most common for exports?
What method of payment is most common for exports?
Once payment is made in cash in advance, the seller retains insurable interest in the goods.
Once payment is made in cash in advance, the seller retains insurable interest in the goods.
False (B)
What is the primary function of a Bill of Lading?
What is the primary function of a Bill of Lading?
To serve as a contract of carriage between the ship-owner and the shipper.
In an Open Account, the seller has insurable interest until the goods are fully _____ .
In an Open Account, the seller has insurable interest until the goods are fully _____ .
Signup and view all the answers
Which of the following best describes a Straight Bill of Lading?
Which of the following best describes a Straight Bill of Lading?
Signup and view all the answers
Which of the following is NOT one of the 5 insuring agreements under the S.P.F.No. 4 Standard Garage Automobile Policy?
Which of the following is NOT one of the 5 insuring agreements under the S.P.F.No. 4 Standard Garage Automobile Policy?
Signup and view all the answers
Once a draft is issued, the seller has no further interest in the goods.
Once a draft is issued, the seller has no further interest in the goods.
Signup and view all the answers
What does a Bill of Lading represent in relation to the carrier?
What does a Bill of Lading represent in relation to the carrier?
Signup and view all the answers
The terms of sale or contract play a key role in determining insurable interest for cargo.
The terms of sale or contract play a key role in determining insurable interest for cargo.
Signup and view all the answers
What is one of the main documents that shows insurable interest in property shipped?
What is one of the main documents that shows insurable interest in property shipped?
Signup and view all the answers
Section A of the S.P.F.No. 4 covers __________ Liability.
Section A of the S.P.F.No. 4 covers __________ Liability.
Signup and view all the answers
Which INCOTERM aspect does NOT relate to the ownership of goods?
Which INCOTERM aspect does NOT relate to the ownership of goods?
Signup and view all the answers
Financial institutions may have insurable interest in goods bought on credit.
Financial institutions may have insurable interest in goods bought on credit.
Signup and view all the answers
What type of insurance policy is required for goods transported over the ocean?
What type of insurance policy is required for goods transported over the ocean?
Signup and view all the answers
When is an Order Bill of Lading typically used?
When is an Order Bill of Lading typically used?
Signup and view all the answers
A Clean Bill of Lading indicates that there are no issues with the condition of the cargo.
A Clean Bill of Lading indicates that there are no issues with the condition of the cargo.
Signup and view all the answers
What document is issued to show that goods were received by the carrier for shipment?
What document is issued to show that goods were received by the carrier for shipment?
Signup and view all the answers
The carrier's responsibility for loss to cargo of others is limited by _____ law.
The carrier's responsibility for loss to cargo of others is limited by _____ law.
Signup and view all the answers
Which of the following is NOT a type of Bill of Lading?
Which of the following is NOT a type of Bill of Lading?
Signup and view all the answers
The shipper is liable for loss of cargo due to acts of God.
The shipper is liable for loss of cargo due to acts of God.
Signup and view all the answers
What is the main purpose of a Bill of Lading?
What is the main purpose of a Bill of Lading?
Signup and view all the answers
Which of the following are included in Liability Coverage “G” for bodily injury to passengers?
Which of the following are included in Liability Coverage “G” for bodily injury to passengers?
Signup and view all the answers
Coverage under aviation liability insurance is applicable in Alaska and the Bahama Islands.
Coverage under aviation liability insurance is applicable in Alaska and the Bahama Islands.
Signup and view all the answers
What must insurers provide to the insured before canceling an aviation policy?
What must insurers provide to the insured before canceling an aviation policy?
Signup and view all the answers
Liability for cargo as an air carrier is limited by ______.
Liability for cargo as an air carrier is limited by ______.
Signup and view all the answers
Which statement correctly describes the pilot's eligibility under aviation liability insurance?
Which statement correctly describes the pilot's eligibility under aviation liability insurance?
Signup and view all the answers
Aviation cargo insurance provides all risks coverage for 60 days after unloading cargo.
Aviation cargo insurance provides all risks coverage for 60 days after unloading cargo.
Signup and view all the answers
What type of coverage is offered for aviation cargo insurance?
What type of coverage is offered for aviation cargo insurance?
Signup and view all the answers
What defines an aircraft as being 'in flight'?
What defines an aircraft as being 'in flight'?
Signup and view all the answers
Coverage 'C' includes loss or damage while an aircraft is taxiing.
Coverage 'C' includes loss or damage while an aircraft is taxiing.
Signup and view all the answers
What type of deductible applies when the aircraft is operated on floats?
What type of deductible applies when the aircraft is operated on floats?
Signup and view all the answers
The lay-up endorsement provides a refund when the aircraft is not used for __________ periods of time.
The lay-up endorsement provides a refund when the aircraft is not used for __________ periods of time.
Signup and view all the answers
Which liability insurance coverage includes damaged to a leased hangar?
Which liability insurance coverage includes damaged to a leased hangar?
Signup and view all the answers
A refund will be issued if the insurer paid a claim in excess of the policy premium.
A refund will be issued if the insurer paid a claim in excess of the policy premium.
Signup and view all the answers
What is the minimum liability coverage limit when an aircraft's maximum weight exceeds 2,268 kg?
What is the minimum liability coverage limit when an aircraft's maximum weight exceeds 2,268 kg?
Signup and view all the answers
Study Notes
S.P.F.No. 4 Standard Garage Automobile Policy
- Section A: Covers Third Party Liability, protecting against damage claims by others.
- Section B: Provides Accident Benefits, ensuring compensation for injuries sustained in an accident.
- Section C: Offers coverage for Loss or Damage to Owned Automobile, safeguarding the policyholder's vehicle.
- Section D: Includes Uninsured Motorist Coverage, protecting against damages caused by an uninsured driver.
- Section E: Covers Legal Liability for Damage to a Customer's Vehicle, addressing potential claims related to vehicles serviced by the garage.
Ocean Marine Cargo Insurance
- Excludes property while waterborne unless on a regular ferry or railway transfer; an ocean marine cargo policy is essential for sea transport.
- Insurable interest allows sellers, buyers, carriers, and financial institutions to insure shipped property; evidenced by Terms of Sale / Contract and Bill of Lading.
Terms of Sale / Contract
- Determines ownership of damaged cargo; review for who holds insurable interest.
- INCOTERM identifies ownership transfer points, responsibilities for transport and insurance.
- Payment methods impact insurable interest:
- Cash in Advance: Seller's interest ceases upon payment.
- Open Account: Seller retains interest until goods are fully paid.
- Draft: Seller retains interest until payment is made.
- Letter of Credit: Seller's interest lasts until the bank processes the payment.
Bills of Lading
- Functions as:
- Contract of carriage: Establishes terms between shipper and carrier, detailing route and consignee.
- Receipt for goods: Indicates receipt of cargo and condition.
- Document of title: Confers entitlement to the cargo.
- Types of Bills of Lading:
- Straight Bill: Goods delivered to named consignee; used in paid arrangements.
- Order Bill: Usual for overseas shipments; allows delivery to authorized persons.
- Released/Valued Bill: Specifies value declarations while shipped.
Carrier's Responsibilities
- Carriers are not liable for loss or damage caused by:
- Fire (unless due to carrier's fault)
- Perils of the sea, acts of God, war, public enemies, strikes, and civil commotion.
Types of Cargo Policies
- Individual Policy/Certificate: Confirms specific coverage for cargo.
-
Hull Coverage:
- Coverage B: Protects against loss while on the ground and taxiing.
- Coverage C: Coverage only when the aircraft is stationary.
Insuring Exposures to Loss in Aviation
- Aircraft is considered “in flight” once it starts taking off until it lands.
- Defined deductibles include specific amounts for:
- In motion
- Moored conditions
- Not in motion scenarios.
Aviation Liability Insurance
- Public Liability/Property Damage: Limits based on aircraft type and weight; minimum liability varies.
- Coverage F: Covers injuries to third parties from aircraft use.
- Coverage G: Provides for passenger bodily injury, including emergency care.
Exclusions and Conditions
- Exclusions include war, unapproved pilots unless testing qualifies, and conditions for policy cancellation.
- Claims exceeding policy premiums can lead to pro-rata cancellation without claim adjustments.
Underwriting Aviation Insurance
- Underwriters seek detailed pilot information, including license class, flight experience, and accident history.
Aviation Cargo Insurance
- Liability of the air carrier is limited; carriers may incur obligations for negligent cargo damage.
- Coverage is generally on an all-risks basis and limited to 30 days after unloading.
- Exclusions apply for war-related damages, with optional coverage available at additional premiums.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Related Documents
Description
Test your knowledge on the five insuring agreements under the S.P.F.No. 4 Standard Garage Automobile Policy. This quiz covers essential coverages such as Third Party Liability, Accident Benefits, and more. Perfect for students and professionals in the insurance field.
