CAIB 2 Chapter 5 Practice Test 1Questions with
Complete Solutions
What is the general rule regarding the responsibility of common carriers? Common
carriers are responsible for the safe delivery of property in their care
Common carriers will not be held responsible for all losses to goods in their
possession. Identify five of these losses. i) Acts of God reasonably foreseeable
ii) Acts of public enemies
iii) Acts of public authority
iv) Neglect or default of shipper
v) Inherent vice of property transported
What documents are used by common carriers to limit their liability to owners? Bills of
lading
Describe a Released Bill of Lading. Released Bills of Lading removes carrier from any
responsibility for the shipment
, Define a Contract Carrier. Contract carriers will carry the goods of contracted customers
only, unlike
common carriers that will carry anybody's property
Define a Private Carrier. Private carriers carry their own goods or goods given to them as
baliees
When property is insured by a Transportation Floater Broad Form, when does
coverage begin and when does coverage end? Coverage begins when property leave
premises and continues until property is
unloaded at final destination
When would insureds purchase a Trip Transit Policy? When clients only require coverage
for a single shipment
What is a Catastrophe Limit and why is it used? Catastrophe limits are the most an
insurer will pay in any one occurrence of loss.
Complete Solutions
What is the general rule regarding the responsibility of common carriers? Common
carriers are responsible for the safe delivery of property in their care
Common carriers will not be held responsible for all losses to goods in their
possession. Identify five of these losses. i) Acts of God reasonably foreseeable
ii) Acts of public enemies
iii) Acts of public authority
iv) Neglect or default of shipper
v) Inherent vice of property transported
What documents are used by common carriers to limit their liability to owners? Bills of
lading
Describe a Released Bill of Lading. Released Bills of Lading removes carrier from any
responsibility for the shipment
, Define a Contract Carrier. Contract carriers will carry the goods of contracted customers
only, unlike
common carriers that will carry anybody's property
Define a Private Carrier. Private carriers carry their own goods or goods given to them as
baliees
When property is insured by a Transportation Floater Broad Form, when does
coverage begin and when does coverage end? Coverage begins when property leave
premises and continues until property is
unloaded at final destination
When would insureds purchase a Trip Transit Policy? When clients only require coverage
for a single shipment
What is a Catastrophe Limit and why is it used? Catastrophe limits are the most an
insurer will pay in any one occurrence of loss.
