AINS 23 Inland Marine
Inland marine insurance is insurance that covers
Select one:
A. Companies that ship goods by commercial vessel on inland waterways.
B. Many different classes of property that typically involve an element of transportation.
C. Miscellaneous lines such as burglary, glass, and steam boilers.
D. Businesses that own or operate watercraft, or import or export goods. - Answer-Many different
classes of property that typically involve an element of transportation.
Which one of the following best describes an advantage to insurers of nonfiled compared with filed
classes of inland marine insurance?
Select one:
A. Nonfiled classes are the same in all states.
B. Nonfiled classes are characterized by a relatively large number of potential insureds.
C. Nonfiled classes allow for the customization of policy provisions and rates for individual insureds.
D. Nonfiled classes are characterized by relatively homogeneous loss exposures. - Answer-Nonfiled
classes allow for the customization of policy provisions and rates for individual insureds.
In the early 1900s, U.S. insurers were restricted to writing one of three general kinds of insurance.
Which one of the following best describes those three kinds?
Select one:
,A. Fire, casualty, or marine
B. Ocean marine, inland marine, or property
C. Buildings, contents, or property in transit
D. Fire, additional perils, or "all risks" - Answer-Fire, casualty, or marine
Which one of the following best explains why, in the 1900s, marine insurers were willing to provide
broad perils or "all-risks" coverage on the types of property that fire insurers avoided covering?
Select one:
A. Marine insurers wanted to encroach on what was traditionally the territory of fire insurers and saw
this as a good strategy for doing so.
B. While fire insures were restricted to providing insurance only against the peril fire, marine insurers
were not subject to regulatory restriction of the perils they could cover.
C. As a relatively new type of insurance company, marine insurers were looking for opportunities to
grow and increase their market share.
D. They were accustomed to covering ocean cargoes of all types against many different causes of loss,
including theft, while the property was either at sea or ashore. - Answer-They were accustomed to
covering ocean cargoes of all types against many different causes of loss, including theft, while the
property was either at sea or ashore.
In 1933, the National Association of Insurance Commissioners adopted a Nationwide Marine Definition
to
Select one:
A. Restrict the underwriting powers of marine insurers to specified types of property.
B. Differentiate between the coverages offered under ocean marine policies and inland marine policies.
C. Standardize marine insurance policy forms and rating across all states.
D. Serve as a glossary of nautical terminology for the general reference of marine underwriters. -
Answer-Restrict the underwriting powers of marine insurers to specified types of property.
Which one of the following best describes nonfiled inland marine builders risk insurance?
, Select one:
A. It covers a contractor's interest in building supplies or fixtures that the contractor has been hired to
install but does not cover the building itself.
B. It can be added to an ISO Builders Risk Coverage Form to add coverage for incidental expenses that
might result from a physical loss to a building project, such as additional interest, advertising expenses,
or real estate taxes.
C. It covers the structure under construction, temporary structures at the building site, and building
materials that have not yet become part of the building.
D. It covers liability that arises from the property owner's use of subcontractors. - Answer-It covers the
structure under construction, temporary structures at the building site, and building materials that have
not yet become part of the building.
Which one of the following best describes the purpose served by transit insurance?
Select one:
A. It provides transit coverage for items typically excluded under other property forms such as precious
metals, furs, jewelry, and money and securities.
B. It extends the coverage territory for shipments beyond the continental U.S., Alaska, and Canada, to
include air or water shipments to or from overseas locations.
C. Carriers use this kind of policy to cover their liability for damage to property in their care, custody, or
control and for which they are therefore liable.
D. Shippers use it because their property may be damaged in circumstances under which a carrier has no
legal obligation to pay the shipper's loss. - Answer-Shippers use it because their property may be
damaged in circumstances under which a carrier has no legal obligation to pay the shipper's loss.
Which one of the following statements is correct with respect to contractors equipment floaters?
Select one:
A. The covered causes of loss are limited to fire, lightning, explosion, windstorm, hail, collision, overturn,
and collapse of bridges and culverts.
B. A large contractor may obtain blanket coverage applying to all equipment, whether owned, rented, or
borrowed by the contractor.
C. Coverage applies only to self-propelled equipment, such as cranes and bulldozers.
Inland marine insurance is insurance that covers
Select one:
A. Companies that ship goods by commercial vessel on inland waterways.
B. Many different classes of property that typically involve an element of transportation.
C. Miscellaneous lines such as burglary, glass, and steam boilers.
D. Businesses that own or operate watercraft, or import or export goods. - Answer-Many different
classes of property that typically involve an element of transportation.
Which one of the following best describes an advantage to insurers of nonfiled compared with filed
classes of inland marine insurance?
Select one:
A. Nonfiled classes are the same in all states.
B. Nonfiled classes are characterized by a relatively large number of potential insureds.
C. Nonfiled classes allow for the customization of policy provisions and rates for individual insureds.
D. Nonfiled classes are characterized by relatively homogeneous loss exposures. - Answer-Nonfiled
classes allow for the customization of policy provisions and rates for individual insureds.
In the early 1900s, U.S. insurers were restricted to writing one of three general kinds of insurance.
Which one of the following best describes those three kinds?
Select one:
,A. Fire, casualty, or marine
B. Ocean marine, inland marine, or property
C. Buildings, contents, or property in transit
D. Fire, additional perils, or "all risks" - Answer-Fire, casualty, or marine
Which one of the following best explains why, in the 1900s, marine insurers were willing to provide
broad perils or "all-risks" coverage on the types of property that fire insurers avoided covering?
Select one:
A. Marine insurers wanted to encroach on what was traditionally the territory of fire insurers and saw
this as a good strategy for doing so.
B. While fire insures were restricted to providing insurance only against the peril fire, marine insurers
were not subject to regulatory restriction of the perils they could cover.
C. As a relatively new type of insurance company, marine insurers were looking for opportunities to
grow and increase their market share.
D. They were accustomed to covering ocean cargoes of all types against many different causes of loss,
including theft, while the property was either at sea or ashore. - Answer-They were accustomed to
covering ocean cargoes of all types against many different causes of loss, including theft, while the
property was either at sea or ashore.
In 1933, the National Association of Insurance Commissioners adopted a Nationwide Marine Definition
to
Select one:
A. Restrict the underwriting powers of marine insurers to specified types of property.
B. Differentiate between the coverages offered under ocean marine policies and inland marine policies.
C. Standardize marine insurance policy forms and rating across all states.
D. Serve as a glossary of nautical terminology for the general reference of marine underwriters. -
Answer-Restrict the underwriting powers of marine insurers to specified types of property.
Which one of the following best describes nonfiled inland marine builders risk insurance?
, Select one:
A. It covers a contractor's interest in building supplies or fixtures that the contractor has been hired to
install but does not cover the building itself.
B. It can be added to an ISO Builders Risk Coverage Form to add coverage for incidental expenses that
might result from a physical loss to a building project, such as additional interest, advertising expenses,
or real estate taxes.
C. It covers the structure under construction, temporary structures at the building site, and building
materials that have not yet become part of the building.
D. It covers liability that arises from the property owner's use of subcontractors. - Answer-It covers the
structure under construction, temporary structures at the building site, and building materials that have
not yet become part of the building.
Which one of the following best describes the purpose served by transit insurance?
Select one:
A. It provides transit coverage for items typically excluded under other property forms such as precious
metals, furs, jewelry, and money and securities.
B. It extends the coverage territory for shipments beyond the continental U.S., Alaska, and Canada, to
include air or water shipments to or from overseas locations.
C. Carriers use this kind of policy to cover their liability for damage to property in their care, custody, or
control and for which they are therefore liable.
D. Shippers use it because their property may be damaged in circumstances under which a carrier has no
legal obligation to pay the shipper's loss. - Answer-Shippers use it because their property may be
damaged in circumstances under which a carrier has no legal obligation to pay the shipper's loss.
Which one of the following statements is correct with respect to contractors equipment floaters?
Select one:
A. The covered causes of loss are limited to fire, lightning, explosion, windstorm, hail, collision, overturn,
and collapse of bridges and culverts.
B. A large contractor may obtain blanket coverage applying to all equipment, whether owned, rented, or
borrowed by the contractor.
C. Coverage applies only to self-propelled equipment, such as cranes and bulldozers.
