Podcast
Questions and Answers
What method of payment is most common for exports?
What method of payment is most common for exports?
- Open Account
- Letter of Credit (correct)
- Cash in Advance
- Draft
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 _____ .
Which of the following best describes a Straight Bill of Lading?
Which of the following best describes a Straight Bill of Lading?
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?
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.
What does a Bill of Lading represent in relation to the carrier?
What does a Bill of Lading represent in relation to the carrier?
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.
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?
Section A of the S.P.F.No. 4 covers __________ Liability.
Section A of the S.P.F.No. 4 covers __________ Liability.
Which INCOTERM aspect does NOT relate to the ownership of goods?
Which INCOTERM aspect does NOT relate to the ownership of goods?
Financial institutions may have insurable interest in goods bought on credit.
Financial institutions may have insurable interest in goods bought on credit.
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?
When is an Order Bill of Lading typically used?
When is an Order Bill of Lading typically used?
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.
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?
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.
Which of the following is NOT a type of Bill of Lading?
Which of the following is NOT a type of Bill of Lading?
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.
What is the main purpose of a Bill of Lading?
What is the main purpose of a Bill of Lading?
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?
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.
What must insurers provide to the insured before canceling an aviation policy?
What must insurers provide to the insured before canceling an aviation policy?
Liability for cargo as an air carrier is limited by ______.
Liability for cargo as an air carrier is limited by ______.
Which statement correctly describes the pilot's eligibility under aviation liability insurance?
Which statement correctly describes the pilot's eligibility under aviation liability insurance?
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.
What type of coverage is offered for aviation cargo insurance?
What type of coverage is offered for aviation cargo insurance?
What defines an aircraft as being 'in flight'?
What defines an aircraft as being 'in flight'?
Coverage 'C' includes loss or damage while an aircraft is taxiing.
Coverage 'C' includes loss or damage while an aircraft is taxiing.
What type of deductible applies when the aircraft is operated on floats?
What type of deductible applies when the aircraft is operated on floats?
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.
Which liability insurance coverage includes damaged to a leased hangar?
Which liability insurance coverage includes damaged to a leased hangar?
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.
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?
Flashcards
Third Party Liability
Third Party Liability
Protection against damage claims by others in an automobile accident.
Accident Benefits
Accident Benefits
Compensation for injuries in a car accident (S.P.F.No. 4).
Loss or Damage to Owned Automobile
Loss or Damage to Owned Automobile
Coverage for damage to your own car (S.P.F.No. 4).
Uninsured Motorist Coverage
Uninsured Motorist Coverage
Signup and view all the flashcards
Legal Liability for Customer's Vehicle (Garage)
Legal Liability for Customer's Vehicle (Garage)
Signup and view all the flashcards
Ocean Marine Cargo Insurance
Ocean Marine Cargo Insurance
Signup and view all the flashcards
Insurable Interest
Insurable Interest
Signup and view all the flashcards
Terms of Sale/Contract
Terms of Sale/Contract
Signup and view all the flashcards
INCOTERMS
INCOTERMS
Signup and view all the flashcards
Bills of Lading - Contract of Carriage
Bills of Lading - Contract of Carriage
Signup and view all the flashcards
Bills of Lading - Receipt for Goods
Bills of Lading - Receipt for Goods
Signup and view all the flashcards
Bills of Lading - Document of Title
Bills of Lading - Document of Title
Signup and view all the flashcards
Straight Bill of Lading
Straight Bill of Lading
Signup and view all the flashcards
Order Bill of Lading
Order Bill of Lading
Signup and view all the flashcards
Released/Valued Bill of Lading
Released/Valued Bill of Lading
Signup and view all the flashcards
Carrier's Responsibilities (Exclusions)
Carrier's Responsibilities (Exclusions)
Signup and view all the flashcards
Individual Policy/Certificate (Cargo)
Individual Policy/Certificate (Cargo)
Signup and view all the flashcards
Hull Coverage B
Hull Coverage B
Signup and view all the flashcards
Hull Coverage C
Hull Coverage C
Signup and view all the flashcards
Aviation Liability Insurance (Public Liability/Prop Damage)
Aviation Liability Insurance (Public Liability/Prop Damage)
Signup and view all the flashcards
Aviation Liability Insurance (Coverage F)
Aviation Liability Insurance (Coverage F)
Signup and view all the flashcards
Aviation Liability Insurance (Coverage G)
Aviation Liability Insurance (Coverage G)
Signup and view all the flashcards
Exclusions and Conditions (Aviation)
Exclusions and Conditions (Aviation)
Signup and view all the flashcards
Underwriting Aviation Insurance
Underwriting Aviation Insurance
Signup and view all the flashcards
Aviation Cargo Insurance
Aviation Cargo Insurance
Signup and view all the flashcards
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.
