AIIM Certified Marine Insurance Underwriter
CMIU Exam
**Question 1.** Which legislation is considered the cornerstone of modern marine insurance
law in the United Kingdom?
A) The Marine Insurance Act 1906
B) The Shipping Act 1993
C) The Lloyd’s Act 1875
D) The Carriage of Goods by Sea Act 1971
Answer: A
Explanation: The Marine Insurance Act 1906 codifies the principles of marine insurance,
including insurable interest, utmost good faith, and warranties, and remains the primary legal
framework.
**Question 2.** The principle of *uberimae fidei* (utmost good faith) obliges the insured to:
A) Disclose all material facts before the contract is formed
B) Pay premiums in advance only
C) Accept any claim decision by the insurer
D) Provide a warranty of seaworthiness after loss
Answer: A
Explanation: Utmost good faith requires the insured to disclose all material information that
could affect the insurer’s decision to accept the risk.
**Question 3.** An insurable interest in a marine hull policy must exist:
A) At the time the policy is issued
B) At the time of loss only
C) Both at inception and at loss
D) Only when the vessel is under charter
Answer: C
, AIIM Certified Marine Insurance Underwriter
CMIU Exam
Explanation: The insured must have a legal or equitable interest in the vessel when the contract
is formed and at the time of loss for the claim to be valid.
**Question 4.** The “Slip” in the marine insurance placing process primarily serves to:
A) Document the vessel’s classification society
B) Provide a preliminary risk summary to the market
C) Confirm the vessel’s flag state
D) Issue the final policy wording
Answer: B
Explanation: A slip is a brief, preliminary document that outlines the risk and is circulated to
underwriters for initial pricing and interest.
**Question 5.** Which Institute clause is known as the “Inchmaree Clause”?
A) Clause 1 – General Average
B) Clause 12 – Latent Defects and Crew Negligence
C) Clause 20 – War Risks
D) Clause 30 – Pollution Liability
Answer: B
Explanation: Clause 12 of the Institute Hull and Machinery clauses (the Inchmaree Clause)
provides coverage for latent defects and crew negligence that cause loss.
**Question 6.** In determining proximate cause, the insurer must identify the:
A) First event that occurred during the loss
B) Most convenient cause for the insurer
C) Dominant cause that set the loss in motion
D) Cause that is easiest to prove in court
, AIIM Certified Marine Insurance Underwriter
CMIU Exam
Answer: C
Explanation: Proximate cause is the dominant, efficient cause that leads directly to the loss,
even if multiple events are involved.
**Question 7.** A vessel classified by DNV is most likely to have its survey reports prepared by:
A) The flag state’s maritime authority
B) An independent classification society surveyor
C) The shipowner’s internal engineering team
D) The port state control officer
Answer: B
Explanation: Classification societies like DNV conduct independent surveys and issue condition
and valuation reports.
**Question 8.** Which factor generally has the greatest impact on hull underwriting risk?
A) Vessel’s flag of convenience
B) Age of the vessel
C) Color of the hull
D) Number of crew members
Answer: B
Explanation: Vessel age is a primary indicator of wear, corrosion, and potential for mechanical
failure, influencing hull risk assessment.
**Question 9.** The American Institute Hull Clauses differ from the Institute (UK) clauses
mainly in:
A) Inclusion of a “War Risks” exclusion
B) Use of American legal terminology and US statutory references
, AIIM Certified Marine Insurance Underwriter
CMIU Exam
C) Requirement for a minimum deductible of $10,000
D) Absence of a “Collision Liability” clause
Answer: B
Explanation: The American Institute Hull Clauses are drafted to align with US law and
terminology, while the UK Institute clauses follow English law.
**Question 10.** The “Running Down Clause” (RDC) in hull insurance primarily covers:
A) Damage caused by fire on board
B) Liability for collision where the insured vessel is at fault
C) Loss due to piracy attacks
D) Damage from grounding on a reef
Answer: B
Explanation: The Running Down Clause provides coverage for the insured’s liability when the
vessel collides with another vessel and is at fault.
**Question 11.** An Actual Total Loss (ATL) occurs when:
A) The vessel is repaired at a cost exceeding its market value
B) The vessel is completely destroyed or irretrievably lost
C) The cargo is partially damaged but still usable
D) The insurer decides to abandon the claim
Answer: B
Explanation: ATL is declared when the insured property is destroyed, wholly lost, or irretrievably
damaged.
**Question 12.** A Constructive Total Loss (CTL) is declared when:
A) The cost of repair plus salvage exceeds the insured value
CMIU Exam
**Question 1.** Which legislation is considered the cornerstone of modern marine insurance
law in the United Kingdom?
A) The Marine Insurance Act 1906
B) The Shipping Act 1993
C) The Lloyd’s Act 1875
D) The Carriage of Goods by Sea Act 1971
Answer: A
Explanation: The Marine Insurance Act 1906 codifies the principles of marine insurance,
including insurable interest, utmost good faith, and warranties, and remains the primary legal
framework.
**Question 2.** The principle of *uberimae fidei* (utmost good faith) obliges the insured to:
A) Disclose all material facts before the contract is formed
B) Pay premiums in advance only
C) Accept any claim decision by the insurer
D) Provide a warranty of seaworthiness after loss
Answer: A
Explanation: Utmost good faith requires the insured to disclose all material information that
could affect the insurer’s decision to accept the risk.
**Question 3.** An insurable interest in a marine hull policy must exist:
A) At the time the policy is issued
B) At the time of loss only
C) Both at inception and at loss
D) Only when the vessel is under charter
Answer: C
, AIIM Certified Marine Insurance Underwriter
CMIU Exam
Explanation: The insured must have a legal or equitable interest in the vessel when the contract
is formed and at the time of loss for the claim to be valid.
**Question 4.** The “Slip” in the marine insurance placing process primarily serves to:
A) Document the vessel’s classification society
B) Provide a preliminary risk summary to the market
C) Confirm the vessel’s flag state
D) Issue the final policy wording
Answer: B
Explanation: A slip is a brief, preliminary document that outlines the risk and is circulated to
underwriters for initial pricing and interest.
**Question 5.** Which Institute clause is known as the “Inchmaree Clause”?
A) Clause 1 – General Average
B) Clause 12 – Latent Defects and Crew Negligence
C) Clause 20 – War Risks
D) Clause 30 – Pollution Liability
Answer: B
Explanation: Clause 12 of the Institute Hull and Machinery clauses (the Inchmaree Clause)
provides coverage for latent defects and crew negligence that cause loss.
**Question 6.** In determining proximate cause, the insurer must identify the:
A) First event that occurred during the loss
B) Most convenient cause for the insurer
C) Dominant cause that set the loss in motion
D) Cause that is easiest to prove in court
, AIIM Certified Marine Insurance Underwriter
CMIU Exam
Answer: C
Explanation: Proximate cause is the dominant, efficient cause that leads directly to the loss,
even if multiple events are involved.
**Question 7.** A vessel classified by DNV is most likely to have its survey reports prepared by:
A) The flag state’s maritime authority
B) An independent classification society surveyor
C) The shipowner’s internal engineering team
D) The port state control officer
Answer: B
Explanation: Classification societies like DNV conduct independent surveys and issue condition
and valuation reports.
**Question 8.** Which factor generally has the greatest impact on hull underwriting risk?
A) Vessel’s flag of convenience
B) Age of the vessel
C) Color of the hull
D) Number of crew members
Answer: B
Explanation: Vessel age is a primary indicator of wear, corrosion, and potential for mechanical
failure, influencing hull risk assessment.
**Question 9.** The American Institute Hull Clauses differ from the Institute (UK) clauses
mainly in:
A) Inclusion of a “War Risks” exclusion
B) Use of American legal terminology and US statutory references
, AIIM Certified Marine Insurance Underwriter
CMIU Exam
C) Requirement for a minimum deductible of $10,000
D) Absence of a “Collision Liability” clause
Answer: B
Explanation: The American Institute Hull Clauses are drafted to align with US law and
terminology, while the UK Institute clauses follow English law.
**Question 10.** The “Running Down Clause” (RDC) in hull insurance primarily covers:
A) Damage caused by fire on board
B) Liability for collision where the insured vessel is at fault
C) Loss due to piracy attacks
D) Damage from grounding on a reef
Answer: B
Explanation: The Running Down Clause provides coverage for the insured’s liability when the
vessel collides with another vessel and is at fault.
**Question 11.** An Actual Total Loss (ATL) occurs when:
A) The vessel is repaired at a cost exceeding its market value
B) The vessel is completely destroyed or irretrievably lost
C) The cargo is partially damaged but still usable
D) The insurer decides to abandon the claim
Answer: B
Explanation: ATL is declared when the insured property is destroyed, wholly lost, or irretrievably
damaged.
**Question 12.** A Constructive Total Loss (CTL) is declared when:
A) The cost of repair plus salvage exceeds the insured value
