AMIM 320
Ocean marine insurance ANS: Insurance that covers vessels and their cargoes, including various vessel-
related liability exposures.
considered as the first type of property-casualty insurance ever developed in Europe. The key to its
continued relevance is the breadth of coverage it provides
Ocean marine insurance exposures covered: ANS: -international air shipments
-transportation by land
-domestic air to connect with an ocean shipment or international air shipments
Edward Lloyd ANS: a London coffeehouse owner, started to publish Lloyd's News, which later became
Lloyd's List, in 1696.
Lloyd's news/list ANS: contained items of interest for merchants, mariners, and marine underwriters.
Shipping Act of 1916 ANS: created a Shipping Board and an affiliated Emergency Fleet Corporation.
Ultimately insured in large part by private insurers, this corporation was tasked with building a new
passenger and cargo fleet.
Malware ANS: Malicious software, such as a virus, that is transmitted from one computer to another to
exploit system vulnerabilities in the targeted computer
Cargo Insurance ANS: Insurance that covers loss of or damage to property shipped primarily by water
or, if in foreign trade, by air
Hull Insurance ANS: Insurance that covers physical damage to vessels, including their machinery and
fuel but not their cargo.
,Protection and Indemnity Insurance (P&I) ANS: Insurance that covers shipowners against various
liability claims due to operating the insured vessel.
Time policy ANS: An insurance policy that covers for the duration of a particular period of time, usually
one year
Open cargo policy ANS: A policy that covers all goods shipped or received by the insured during the
policy's term
Exceptive warranty ANS: A policy provision that excludes certain types of loss or certain causes of loss
Promissory warranty ANS: A policy provision in which the assured guarantees or negates the existence
of a fact or state of facts at policy inception or promises that something will be done, or will not be
done, during the policy period
Implied warranty of seaworthiness ANS: An implied warranty requiring that the vessel be seaworthy:
The captain and crew are competent, the stores are adequate, and the vessel is in condition to make the
voyage.
Implied warranty of no deviation ANS: 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 ANS: Implied warranty that the venture in which the vessel is engaged is
legal
-total loss
-particular average
-general average
, -sue and labor charges ANS: Cargo and Hull policies cover four types of loss:
Total loss ANS: A loss for which the assured is entitled to collect the full amount of insurance under a
marine insurance policy; may be either an actual total loss or a constructive total loss
Actual total loss ANS: A total loss of a vessel or cargo that occurs when the property is physically
destroyed or is taken from its owner with no chance of recovery
Constructive total loss ANS: A loss that occurs when the cost to repair damaged property plus its
remaining salvage value equals or exceeds the property's pre-loss value
Particular Average ANS: a partial loss that is to be borne by only a particular interest, such as fire
damage that affects only the vessel itself or cargo belonging to one owner.
General Average ANS: a partial loss that must be borne proportionally by all interests in the maritime
venture (such as the vessel owner and all owners of cargo aboard the vessel).
York-Antwerp Rules ANS: Provisions that govern the adjustment of general average. For a loss to be
considered a general average, it must result from an intentional, reasonable sacrifice or expenditure
that is deemed necessary to prevent a total loss of the cargo or vessel.
1) The property must be imperiled.
2) The sacrifice must be a deliberate act.
3) The purpose of the sacrifice must be the achievement of safety.
4) The sacrifice must be reasonable.
5) The sacrifice must be made not only under unusual circumstances but also in an unusual and
abnormal manner ANS: Requirements for a general average sacrifice:
Ocean marine insurance ANS: Insurance that covers vessels and their cargoes, including various vessel-
related liability exposures.
considered as the first type of property-casualty insurance ever developed in Europe. The key to its
continued relevance is the breadth of coverage it provides
Ocean marine insurance exposures covered: ANS: -international air shipments
-transportation by land
-domestic air to connect with an ocean shipment or international air shipments
Edward Lloyd ANS: a London coffeehouse owner, started to publish Lloyd's News, which later became
Lloyd's List, in 1696.
Lloyd's news/list ANS: contained items of interest for merchants, mariners, and marine underwriters.
Shipping Act of 1916 ANS: created a Shipping Board and an affiliated Emergency Fleet Corporation.
Ultimately insured in large part by private insurers, this corporation was tasked with building a new
passenger and cargo fleet.
Malware ANS: Malicious software, such as a virus, that is transmitted from one computer to another to
exploit system vulnerabilities in the targeted computer
Cargo Insurance ANS: Insurance that covers loss of or damage to property shipped primarily by water
or, if in foreign trade, by air
Hull Insurance ANS: Insurance that covers physical damage to vessels, including their machinery and
fuel but not their cargo.
,Protection and Indemnity Insurance (P&I) ANS: Insurance that covers shipowners against various
liability claims due to operating the insured vessel.
Time policy ANS: An insurance policy that covers for the duration of a particular period of time, usually
one year
Open cargo policy ANS: A policy that covers all goods shipped or received by the insured during the
policy's term
Exceptive warranty ANS: A policy provision that excludes certain types of loss or certain causes of loss
Promissory warranty ANS: A policy provision in which the assured guarantees or negates the existence
of a fact or state of facts at policy inception or promises that something will be done, or will not be
done, during the policy period
Implied warranty of seaworthiness ANS: An implied warranty requiring that the vessel be seaworthy:
The captain and crew are competent, the stores are adequate, and the vessel is in condition to make the
voyage.
Implied warranty of no deviation ANS: 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 ANS: Implied warranty that the venture in which the vessel is engaged is
legal
-total loss
-particular average
-general average
, -sue and labor charges ANS: Cargo and Hull policies cover four types of loss:
Total loss ANS: A loss for which the assured is entitled to collect the full amount of insurance under a
marine insurance policy; may be either an actual total loss or a constructive total loss
Actual total loss ANS: A total loss of a vessel or cargo that occurs when the property is physically
destroyed or is taken from its owner with no chance of recovery
Constructive total loss ANS: A loss that occurs when the cost to repair damaged property plus its
remaining salvage value equals or exceeds the property's pre-loss value
Particular Average ANS: a partial loss that is to be borne by only a particular interest, such as fire
damage that affects only the vessel itself or cargo belonging to one owner.
General Average ANS: a partial loss that must be borne proportionally by all interests in the maritime
venture (such as the vessel owner and all owners of cargo aboard the vessel).
York-Antwerp Rules ANS: Provisions that govern the adjustment of general average. For a loss to be
considered a general average, it must result from an intentional, reasonable sacrifice or expenditure
that is deemed necessary to prevent a total loss of the cargo or vessel.
1) The property must be imperiled.
2) The sacrifice must be a deliberate act.
3) The purpose of the sacrifice must be the achievement of safety.
4) The sacrifice must be reasonable.
5) The sacrifice must be made not only under unusual circumstances but also in an unusual and
abnormal manner ANS: Requirements for a general average sacrifice:
