CAIB 3 Chapter 4 Exam Questions With
Correct Answers
Identify, in addition to transportation over the ocean, four other
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incidental methods of transportation covered under a marine cargo
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insurance policy - ANSWER✔✔✔-1. Air
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2. Land
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3. Rail
| |
4. Vessels operating on inland waterways or lakes
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Identify the four parties who may have an insurable interest in cargo
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being shipped - ANSWER✔✔✔-1. Sellers
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2. Buyers
| |
3. Carriers
| |
4. Financial institutions
| |
Identify two documents to be reviewed to determine insurable interest
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of the parties above - ANSWER✔✔✔-1. Terms of sale/contract
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2. Bills of Lading
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,Identify the two terms the broker will normally focus on identifying
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under the terms of sale - ANSWER✔✔✔-1. The INCOTERM under which
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goods are being shipped | | |
2. The method of payment for the goods
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Identify the three questions which address the issue of insurable
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interest under the INCOTERMS - ANSWER✔✔✔-1. The point in transit
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at which the seller has fulfilled its obligations
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2. Which of the buyer or seller is responsible for carriage from one point
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to another
| |
3. Which of the buyer or seller is responsible for insurance
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Identify the responsibility of the buyer and seller under ex works
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INCOTERMS - ANSWER✔✔✔-Buyer - pays for the invoice cost of goods
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and must arrange insurance from the works to final destination
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Seller - sells at the invoice cost
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Identify the responsibilities of the buyer and seller under f.o.b (free on
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board) INCOTERM - ANSWER✔✔✔-Buyer - takes responsibility for
| | | | | | | |
goods once they are on board the vessel. Insurance is the responsibility
| | | | | | | | | | | |
of the buyer from this moment until final delivery
| | | | | | | |
Seller - responsible for carriage and loading costs and any damage until
| | | | | | | | | | | |
goods are loaded on board. Insurance is the responsibility of the seller
| | | | | | | | | | | |
from works until on board
| | | |
, Identify the responsibilities of the buyer and seller under f.a.s (free
| | | | | | | | | | |
alongside) INCOTERM - ANSWER✔✔✔-Buyer - takes responsibility for
| | | | | | | |
goods as soon as they are alongside the vessel or on the quay. Insurance
| | | | | | | | | | | | |
|is the responsibility of the buyer from this moment until final delivery
| | | | | | | | | | |
Seller - responsible for carriage and unloading costs until goods are
| | | | | | | | | | |
alongside the vessel or on the quay. Insurance is the responsibility of
| | | | | | | | | | | |
the seller from works up to this point
| | | | | | |
Identify the responsibilities of the buyer and seller under f.o.r (free on
| | | | | | | | | | | |
rail) INCOTERM - ANSWER✔✔✔-Buyer- is responsible for goods once
| | | | | | | | |
they have been loaded on rail or trailer. Insurance is the responsibility of
| | | | | | | | | | | |
|the buyer from this moment until final delivery to final destination
| | | | | | | | | |
Seller - is responsible for goods until they are loaded on the rail or
| | | | | | | | | | | | | |
trailer. Insurance is the responsibility of the seller from works until this
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time
C. & F. (CFR) (cost + freight charges paid until port of discharge) -
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ANSWER✔✔✔-Buyer - takes responsibility for the goods once they are | | | | | | | | | |
loaded onto the carrying vessel. Insurance is the responsibility of the
| | | | | | | | | | |
buyer from this moment until final delivery
| | | | | |
Seller - is responsible for goods until loaded onto the carrying vessel.
| | | | | | | | | | | |
Insurance is the responsibility of the seller from works until this time
| | | | | | | | | | |
Correct Answers
Identify, in addition to transportation over the ocean, four other
| | | | | | | | | |
incidental methods of transportation covered under a marine cargo
| | | | | | | | |
insurance policy - ANSWER✔✔✔-1. Air
| | | | |
2. Land
| |
3. Rail
| |
4. Vessels operating on inland waterways or lakes
| | | | | | |
Identify the four parties who may have an insurable interest in cargo
| | | | | | | | | | | |
being shipped - ANSWER✔✔✔-1. Sellers
| | | | |
2. Buyers
| |
3. Carriers
| |
4. Financial institutions
| |
Identify two documents to be reviewed to determine insurable interest
| | | | | | | | | |
of the parties above - ANSWER✔✔✔-1. Terms of sale/contract
| | | | | | | |
2. Bills of Lading
| | |
,Identify the two terms the broker will normally focus on identifying
| | | | | | | | | | |
under the terms of sale - ANSWER✔✔✔-1. The INCOTERM under which
| | | | | | | | | | |
goods are being shipped | | |
2. The method of payment for the goods
| | | | | | |
Identify the three questions which address the issue of insurable
| | | | | | | | | |
interest under the INCOTERMS - ANSWER✔✔✔-1. The point in transit
| | | | | | | | | |
at which the seller has fulfilled its obligations
| | | | | | |
2. Which of the buyer or seller is responsible for carriage from one point
| | | | | | | | | | | | |
to another
| |
3. Which of the buyer or seller is responsible for insurance
| | | | | | | | | |
Identify the responsibility of the buyer and seller under ex works
| | | | | | | | | | |
INCOTERMS - ANSWER✔✔✔-Buyer - pays for the invoice cost of goods
| | | | | | | | | | |
and must arrange insurance from the works to final destination
| | | | | | | | |
Seller - sells at the invoice cost
| | | | | |
Identify the responsibilities of the buyer and seller under f.o.b (free on
| | | | | | | | | | | |
board) INCOTERM - ANSWER✔✔✔-Buyer - takes responsibility for
| | | | | | | |
goods once they are on board the vessel. Insurance is the responsibility
| | | | | | | | | | | |
of the buyer from this moment until final delivery
| | | | | | | |
Seller - responsible for carriage and loading costs and any damage until
| | | | | | | | | | | |
goods are loaded on board. Insurance is the responsibility of the seller
| | | | | | | | | | | |
from works until on board
| | | |
, Identify the responsibilities of the buyer and seller under f.a.s (free
| | | | | | | | | | |
alongside) INCOTERM - ANSWER✔✔✔-Buyer - takes responsibility for
| | | | | | | |
goods as soon as they are alongside the vessel or on the quay. Insurance
| | | | | | | | | | | | |
|is the responsibility of the buyer from this moment until final delivery
| | | | | | | | | | |
Seller - responsible for carriage and unloading costs until goods are
| | | | | | | | | | |
alongside the vessel or on the quay. Insurance is the responsibility of
| | | | | | | | | | | |
the seller from works up to this point
| | | | | | |
Identify the responsibilities of the buyer and seller under f.o.r (free on
| | | | | | | | | | | |
rail) INCOTERM - ANSWER✔✔✔-Buyer- is responsible for goods once
| | | | | | | | |
they have been loaded on rail or trailer. Insurance is the responsibility of
| | | | | | | | | | | |
|the buyer from this moment until final delivery to final destination
| | | | | | | | | |
Seller - is responsible for goods until they are loaded on the rail or
| | | | | | | | | | | | | |
trailer. Insurance is the responsibility of the seller from works until this
| | | | | | | | | | | |
time
C. & F. (CFR) (cost + freight charges paid until port of discharge) -
| | | | | | | | | | | | | |
ANSWER✔✔✔-Buyer - takes responsibility for the goods once they are | | | | | | | | | |
loaded onto the carrying vessel. Insurance is the responsibility of the
| | | | | | | | | | |
buyer from this moment until final delivery
| | | | | |
Seller - is responsible for goods until loaded onto the carrying vessel.
| | | | | | | | | | | |
Insurance is the responsibility of the seller from works until this time
| | | | | | | | | | |
