CIC Commercial Multi-Line Exam Questions and Answers

CIC Commercial Multi-Line Exam Questions and Answers Describe how inland marine insurance started - Answer ️️ -evolved from ocean marine -filled gap in coverage as good transitioned from ocean marine -cover goods in transit over land Does inland marine also apply to instruments of transportation and communication? - Answer ️️ Yes, ex. Bridges, tunnels, piers, cell towers, pipelines. What is the basic exclusion applicable to inland marine? - Answer ️️ Property in a fixed location is not eligible for marine insurance Lost 4 types of floaters - Answer ️️ -jewelry -fine arts -guns -wine List characteristics of filed or controlled forms - Answer ️️ -Relative uniformity of exposures -Tend to be specialty coverages -Inflexible terms/conditions -Outcome of filed or conrtrolled forms is.... rates are filed and coverage forms are filed List characteristics of Non-Filed or Unfiled forms - Answer ️️ -Exposures not uniform -Exposures too unique or diverse to assume insurer can write not on a case by case basis -More flexibility on terms and conditions -Ex. Contractors equip, transportation, builders risk Describe bailment relationship - Answer ️️ One person accepts personal property from another for a particular purpose. Bailor is the owner of property. Bailee is the party that accepts the property of others List the three types of bailment - Answer ️️ Gratuitos bailment for benefit of bailor Gratuitous bailment for benefit of bailee Bailment for mutual benefit What is the standard of care for gratuitous bailement for benefit of bailor? - Answer ️️ Low standard of care What is the standard of care for gratuiotous bailement for benefit of bailee? - Answer ️️ High standard of care. What is the standard of care for mutual benefit of bailor and bailee? - Answer ️️ Reasonable duty of care What drives the need for coverage of bailment exposure? - Answer ️️ CGL excludes property in care custody or control Many policies contain a no benefit to bailee condition Explain the difference in coverage triggers for Bailees written on a legal liability basis vs direct damage basis - Answer ️️ Insured must be legally liable for damage to bailor's property to trigger covrage for legal liability. Direct damage, insured does not have to be legally liable. Also both types include the value of bailee's investment in labor and materials List some types of property not covered under Bailee's - Answer ️️ - aircraft or water craft -Contraband -Furs -Jewelry -Money and securities -Vehicles -Waterborne property How would you describe the covered causes of loss for Bailees? - Answer ️️ - Open perils policy -List of exclusions to clarify coverage -Exclusions include- -theft of property left overnioght in or on a vehicle, unless inside a locked buidling and there are signs of forced en