AMIM 121 Questions And Answers Rated A+

Ocean Marine Insurance - Answer-principally associated with vessels and their cargoes; also includes international air shipments as well as transportation by land or air that connects with an ocean shipment or international air shipment. Cargo Insurance - Answer-Insurance that covers loss of or damage to property shipped primarily by water or, if in foreign trade, by air. Hull Insurance - Answer-Insurance that covers partial or total loss of vessels caused by a covered peril; may also cover the insureds liability for damage to another vessel and its cargo resulting form collision with the insured vessel. Protection and Indemnity - Answer-Insurance that covers the policyholder against 1. liability for bodily injury and property damage arising out of specified types of accidents and 2. certain unexpected vesselrelated expenditures arising out of the ownership or operation of the vessel. Admiralty Law - Answer-a specialized branch of federal law pertaining to claims for occurrences that take place on navigable waters and are connected with maritime activity. Voyage Policy - Answer-An insurance policy that covers for the dureation of a particular voyage specified in the policy. Time Policy - Answer-An insurance policy that covers for the dureation of a particular period of time, usually one year. Open Cargo Policy - Answer-A cargo insurance policy that continues in effect until either the insurer or insured cancels it. Contract of utmost good faith - Answer-An insurance policy based on the assumption that the insured has voluntarily revealed to the insurer all information pertinent to the risk being insured. Misrepresentation - Answer-A false sttement made by the insured that is material to the riskConcealment - Answer-A failure of the insured to divulge information material to the risk. Exceptive Warranty - Answer-A policy provision that excludes certain types of loss or certain causes of loss. Promissory warranty - Answer-A policy provision in which the assured guarantees or negates the existence of a fact or statement of facts at policy inception or promises that something will be done or will not be done during the policy period Implied warranty - Answer-A warranty that is understood to apply even through it does not appear in the policy Implied warranty of seaworthiness - Answer-The captain and crew are competant, the stores are adequate and the vessel is in the condition to make the voyage. Implied warranty of no deviation - Answer-Implied warranty applicable in voyage policies only that the vessel will not deviate from its proper course except for permitted reasons. Implied warranty of legality - Answer-Implied warranty that the venture in which the vessel is engaged is legal All risks policy - Answer-An insurance policy that covers any risk of physical loss unless the policy specifically excludes it. Total loss - Answer-A loss for which the assured is entitled to collect the full amount of the insurance under a marine insurance policy; may be either an actual loss or a constructive total loss. Actual total loss - Answer-A total loss of a vessel or cargo that occurs when the property undergoes physical destruction, loss of specie, or irretrievable deprivement. Specie - Answer-Cargo that no longer answers the description of the interest of the insured or is unsellable.Constructive total loss - Answer-A total loss that occurs when the cost of recovering and repairing the insured vessel would exceed its agreed value or when the insured cargo is reasonably abandoned in expectation of its becoming an actual loss or because the property can't be saved from actual total loss without expending more than the value of the property.