10 Questions
Which term refers to the estimated value of goods that will be transported during the period of insurance?
Annual carry
What does the load limit indicate?
The size of a potential single loss
Why is a farmer who does only 6 trips a year less of a risk compared to a farmer who does 104 trips a year?
Because the former is less exposed to road risk
What are the rates based on in this context?
Both the annual carry and the load limit
Why is there a magnitude discount factor applied to the rates?
To reduce the rate charged on the exposure
Which term refers to the total exposure of goods being transported during the period of insurance?
Annual carry
What does the load limit indicate?
The maximum value a vehicle will carry in a single trip
Why is a farmer who does only 6 trips a year less of a risk compared to a farmer who does 104 trips a year?
The farmer with 6 trips is less exposed to road risk
What are the rates based on in this context?
Both the annual carry and the load limit
Why is there a magnitude discount factor applied to the rates?
To effectively reduce the rate charged on the exposure
Test your knowledge on annual carry and load limits in transportation insurance. Learn about the importance of understanding the size of potential losses and the total exposure of goods being transported.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
