AMIM 122 Study Guide Questions & Answers Already Passed!!

Which one of the following statements describes a benefit of using an intermodal cargo container to ship cargo? - Answer-Intermodal containers can be transferred from ship to truck without disturbing the contents. coinsurance formula 2.28 - Answer-1.Multiply the value of covered property, except property in transit, at the time of loss by coinsurance percentage 2.Divide the limit of insurance of the property by the figure determined in Step 1 3.Multiply the total amount of loss, before the application of any deductible, by the figure determined in Step 2 4.Subtract the deductible from the figure determined in Step 3 a.Ex: $700K/$800K x $400K = $350K The Uniform Commercial Code (The UCC) 8.17 - Answer-- Sets standardized rules for governing commercial transactions, particularly interstate transactions, w/in the United States - Warehouseman/Warehouse Operator computer fraud 9.5 - Answer-The unlawful taking of property by using a computer to fraudulently cause the owner or custodian of the property to transfer the property to the perpetrator unauthorized instruction exclusion 2.17 - Answer-- Eliminates coverage for loss resulting from "unauthorized instruction to transfer property to any person or to any place." - If an imposter where to pick up the property, the resulting theft loss would be excluded dry cleaners formula 8.14 - Answer-1. The amount of annual gross receipts from the previous twelvemonth period 2. A number indicating the value of each order in proportion to the service charge (e.g, 1 Bundle = 20 x Service Charge) 3. The average turnover time (in days) per order 4. The number of days per year the insured is open for business 5. Gross receipts x Order charge proportion Divided Number of days open/Average turnover timea. Or Total value of goods from 12 months / Number of complete turnovers i. Ex: $500K x 20 Divided 360/3 = $10m/120 = $83,333 employee dishonesty exclusions (MTC only) 4.17 - Answer-- MTC liability policies ordinarily contain an employee dishonesty exclusion - The exclusion is usually worded slightly differently from the employee dishonesty exclusion contained in most other inland marine policies - The MTC version of this exclusion does not contain the working that allows coverage to apply to dishonest acts of employees of carriers for hire. - Worded to make it clear that the exclusion will apply to theft committed by the insured carrier's own employees. valuation on valuable papers 11.4 - Answer-- Coverage applies at the specified premises where the documents normally are located - The AAIS & ISO coverage forms provided an extension for up to $5k on covered property while away from the insured's premises. - The limit for this extension can be increased by entering a higher limit in the declarations or policy schedule - The exclusions applicable to valuable papers and records are comparable to those of the accounts receivable from. Annual Transit 3.5-3.25 - Answer-- Annual transit insurance is in most states a nonfiled class of inland marine business, permitting great flexibility in the coverage provided and the rate charged - This flexibility is appropriate because transit loss exposures differ widely from insured, depending on many factors, such as the property shipped, the packing method, the carriers used, and the points of origin and destination Fine Arts vs Museum 10.11 - Answer-- The causes of loss concerns are Fire, Water Damage, Theft, & Breakage. Therefore UW's evaluate the COPE factors and loss protection measures at the insured premises - Because fine arts floaters cover property in transit, UW's also need to evaluate the transit exposure. At the very least, the UW will want to know the value of property shipped annually and the modes of transportation used- The UW will also request from the applicant a schedule of all objecst to be insured, a description of each insured object in adequate detail in the policy, including the following • The artists name • The title of the object • The medium or type of the object • The year in which the object was created • The insured value request for the object Museum Collections - Answer-- When evaluation museum collections, UW's consider essentially the sam hazards as when evaluating art collections of non-museum entities - However the following differences in underwriting these 2 types of policies create additional considerations for the museum collections underwriter: - Museum collections may have a much higher insured value than non. Museum Collections. The need for reinsurance may be more pronounced. - Museums generally have a greater exposure for borrowed objects. The underwriter therefore must carefully review the museum's loan agreements - Museums may have more significant transit exposures than a private or corporate collector. The underwriter may therefore want to underwrite museum transit exposures more thoroughly than the incidental transit exposures of a non-museum collector - Museum collections are highly susceptible to employee dishonesty losses. If the museum collections policy covers employee dishonesty, that additional exposure should be evaluated and included in the rate. - Museums are dedicated to preserving their collections, and many museums have professional conservators, curators, and security personnel who can prevent many losses from occurring. - Insurers may be less interested in obtaining appraisals for museum collections policies than for fine arts floaters, partly because museum collections policies ordinarily do not schedule each covered art object for an agreed value. 1976 Nationwide Marine Definition purpose 1.7 and 1.12 - Answer-o Added in DIC, Builders risks policies, and EDP. o The Definition does not list every type of risk or coverage that can be classified as marine o The Definition should not be construed to mean that the kinds of risks and coverages listed in the definition are marine insurance in all cases o The Definition does not restrict or limit the exercise of insuring powerso Applicability - various loss exposures and policies considered to be marine insurance Imports Exports Domestic Shipments Bridges, Tunnels and Other Instrumentalities of Transportation and Communication Personal Property Floater Risks Commercial Property Floater Risks o Current Significance of the Definition