Cpcu 551 Chapter 8

Front 1

nationwide marine definition

Back 1

statemetn of types of property that may be insured on inland marine and ocean marine insurance forms

Front 2

nonfiled classes - uncontrolled classes

Back 2

classes of inland marine business for which neither policy forms nor rates must be filed with the state department

Front 3

file classes - controlled classes

Back 3

classes of inland marine business for which policy forms and/or notes must be filed with the state department

Front 4

nonfiled inland marine insurance offer more flexibility than filed

Back 4

because the form can contain whatever provisions the insured and insurer agree upon and not filed with the state

Front 5

floater

Back 5

policy designed to cover property that floats or move from location to location

Front 6

invoice value

Back 6

valuation basis that values covered property at invoice value including freight

Front 7

agreed value method

Back 7

method of valuing property in which the insurer and insured agree at the time the policy is written on the maximum amount that will be paid if loss occurs. best used when item is hard to value such as art.

Front 8

business income and electronic data processing equipment policies

Back 8

sometimes business income extend to cover time element of losses resulting from damage to or destruction of the insured computer system

Front 9

business income and inland marine builders risk policy

Back 9

business income extended to cover time element losses resulting from damage to or destruction of building during course of construction

Front 10

shipper

Back 10

person shipping goods

Front 11

consignee

Back 11

person that receives the property being transported by the carrier

Front 12

common carriers

Back 12

airline, railroads, or trucking company that furnish transportation to any number of public seeking their services

Front 13

contract carriers

Back 13

carriers that furnish transportation services to shipper with whom they have contracts

Front 14

act of God

Back 14

natural and unavoidable catastrophe that interupts the expected course of events

Front 15

inherent vice

Back 15

condition within the propety that make it destroy itself

Front 16

bill of lading

Back 16

document acknowledging receipts of goods from the shipper, given by the carrier which includes terms of the contract for carriage for goods

Front 17

charter

Back 17

travel contract in which transportation is temporarily hired for a specific trip

Front 18

5 exceptions to cargo liability for common carrier

Back 18

1. act of God

2. acts of public enemy - country at war

3. excercise of public authority - government

4. shippers fault or neglect

5/ inherent vice

Front 19

annual transit policy

Back 19

policy that covers all shipments made or received by insured throughout a 1 year policy period

Front 20

open cargo policy

Back 20

policy that covers all goods shipped/received by the insured during the policy term; comparable to annual but without expiration date

Front 21

assured

Back 21

in ocean marien, the party names as the insured

Front 22

general average

Back 22

partial loss that must be shared by all parties to a voyage

Front 23

sue and labor clasuse

Back 23

clause that covers the cost of resonable measures tha the insured is required to take to protect the property from damage at the time of loss

Front 24

warehouse-to-warehouse coverage

Back 24

clause in open cargo policy that covers the insured cargo during the ordinary course of transit from time cargo leaves the point of shipment until delivered to its final destination

Front 25

free of capture and seizure warranty

Back 25

warranty that excludes loss caused by war, piracy, virtually any lawful or unlawful taking of the vessel

Front 26

strikes, riots, and civil commotion warranty

Back 26

warranty that excludes loss caused by strikes, labor, disturbances, riots, vandalism, or malicious acts

Front 27

delay clause

Back 27

clause that excludes coverage for loss cause by delay, such as loss of market, spoilage, and business interruption

Front 28

inchmaree clause

Back 28

clause that adds coverage to an ocean marine policy for loss resulting from bursting of boilers, breakage of shafts, latent defects in the vessel or faults of errors in the navigation or management of the vessel

Front 29

free of particular average/american condition warranty - fpa/ac

Back 29

exceptive warranty that excludes particular average unless the loss is actually caused by the stranding, sinking, or burning of the vessel or it collison with another vessel

Front 30

particular average

Back 30

partial loss that is borne by only one party to a voyage

Front 31

accumulation clause

Back 31

clause in open cargo policies that doubles the policy limit when, shipments accumulate at some point in transit

Front 32

trip transit policy

Back 32

policy that covers a particular shipment of goods specified in the policy

Front 33

mail coverage form

Back 33

form that covers a financial institution against loss of securities and other negotiable instruments while in transit through specified types of mail

Front 34

parcel post policy

Back 34

inland marine policy that provides broad coverage on parcel post shipments

Front 35

motor truck cargo liability polity

Back 35

policy that covers a trucker's liabiltiy for damage to carge of others being transported by the trucker

Front 36

owners' goods on owners' trucks policy

Back 36

type of motor truck cargo policy that covers any type of organization for damage to its own cargo while being transported

Front 37

bmc32 - endorsement for motor common carrier polcies of insurance for cargo liability

Back 37

endorsement that insurers must attach to motor truck cargo liability polices of inerstate carriers stateing that the insurer will pay cargo claims for which the insured is liable up to the limits required by the us department of transportation

Front 38

equipment floaters

Back 38

catergory of inland marine policies covering various types of equipment wherever it may be located in the policy period

Front 39

contractors equipment floater

Back 39

policy that covers mobile equipment or tools while located anywhere in the coverage territory

Front 40

upgraded value

Back 40

cost to replace covered equpment with the latest comparable state-of-the-art equipment available can be used as a valuation basis in an edp floater

Front 41

breakdown coverage

Back 41

coverage in an edp equipment floater for perils such as mechanical failure electrical disturbances, and damage to electronic data when covered equipment breaks down

Front 42

installation floater

Back 42

policy that covers a contractor's interest n builidng supplies or fixtures tha the contractor has been hired to install

Front 43

bailee

Back 43

party temprarily posses the personal property in a bialment

Front 44

bailor

Back 44

owner of property in a bailment

Front 45

warehouse operators legal liability policy

Back 45

policy that covers warehouse operators against liability for damage to the property of others being stored in operators' warehouse

Front 46

bailees' customers policy

Back 46

a policy that covers damage to customers' goods while in the possession of the insured, regardless whether the insured is legally liable for the damges

Front 47

pattern and die floater

Back 47

policy that covers the insured's patterns and dies while located at the premises of others and also while in transit

Front 48

processing floater

Back 48

policy that covers the insured's goods while being worked on at a subcontractor's or processor's premises and while in transit

Front 49

dealers policy

Back 49

policy that covers inventory an other property of any of the types of dealers that qualify for inland marine coverage

Front 50

block policy

Back 50

dealers policy, particular one written for jeweler or furrier

Front 51

signs coverage form

Back 51

form that covers neon, fluorescent, automatic, or mechanical signs

Front 52

accounts receivable insurance

Back 52

insurance that covers the sum the insured is unable to collect when records of accounts receivable are destroyed by covered cause of loss

Front 53

valuable papers and records insurance

Back 53

insurance that covers direct physical loss to valuable papers and records such as blueprints

Front 54

or order phrase

Back 54

permits the assured to direct the insurer to pay a loss to the consignee, bank or other party with insurable interest

Front 55

in additon to assured's insterest, open cargo policy cover

Back 55

general average and sue and labor charges

Front 56

principal warranties of an ocean cargo polciy

Back 56

1. fcs warranty - excludes loss caused by taking of vessel by another party

2. srcc - excludes losses caused by riots strikes, etc

3. delay clause - excludes coverage for financial and property loss when shipment is delayed

Front 57

named perils on ocean cargo policy

Back 57

perils of the sea, fire, jettison, assailing thieves, barratry and all other similar perils

Front 58

how covered shipments are valued under ocean cargo policy

Back 58

invoice value and freight plus advance equal to 10 percent of the invoice value and freight

Front 59

edp equipment policy vs commercial property policy

Back 59

1. edp policies cover perils not covered under cpp

2. edp policy covers property in transit which cpp excludes

Front 60

loss of goodwill exposure

Back 60

can result if the bailee does not pay the customers for losses to their property while in bailee's custody.

Front 61

type of property insured under dealers policy

Back 61

jewelers

equipment dealers

fine arts

furriers

camera dealers

musical eqipment dealers

Front 62

account receivables insurance covers

Back 62

- uncollectible accounts receivable

- interest charged

- collection expenses

- other reasonable expenses