RMI 4224 EXAM 2 REVIEW - SCHRIEFER QUESTIONS
Inland marine insurance evolved from which of the following lines of insurance?
Casualty insurance
Commercial auto insurance
Fire insurance
Marine insurance - Answer -Marine insurance
Which of the following statements is/are correct concerning the ISO Bailees Customers
Coverage Form?
I. It provides coverage for personal property of others that is in the insured's care,
custody or control on a named perils basis.
II. It gives the insured the right to settle any covered loss valued at $500 or less with the
property owner and seek reimbursement of their payment from the insurer provided the
insured complies with two additional duties.
I only
II only
Both I & II
Neither I nor II - Answer -II only
Which of the following types of commercial property would be considered an inland
marine insurance "non-filed" class of business property?
Costumes used in a Broadway production.
A camera in the inventory of a camera dealer.
A large crane used by a contractor.
Guitar in the inventory of a musical instrument dealer. - Answer -A large crane used by
a contractor.
Each of the following statements concerning the ISO Valuable Papers And Records
Coverage Form are true, EXCEPT:
Covered property means any property owned or property of others in the insured's care,
custody or control that meets the policy definition of "valuable papers and records."
The coverage territory includes property in transit within the U.S., Puerto Rico, and
Canada.
There is no coverage for loss or damage caused by delay, loss of use, or loss of
market.
The coverage form pays up to $10,000 for loss or damage to covered property while it is
away from the covered premises unless the insured selects a higher limit for this
coverage extension. - Answer -The coverage form pays up to $10,000 for loss or
damage to covered property while it is away from the covered premises unless the
insured selects a higher limit for this coverage extension.
, Swanson Construction Company owns several large cranes and bulldozers it uses in its
commercial construction business. Which of the following inland marine coverage forms
would be most appropriate to provide coverage for this equipment?
Builders risk policy.
Motor truck cargo carriers coverage form
Product withdrawal coverage form.
Contractors equipment coverage form. - Answer -Contractors equipment coverage
form.
Each of the following statements concerning transportation coverage are true EXCEPT:
Common carriers are subject to a strict liability negligence standard for the handling of
property of others with a few exceptions.
Private carriers transport goods for a specific or limited number of clients under a
negotiated contract.
Coverage for losses resulting from faulty packing are excluded from coverage under
most Motor Truck Cargo Forms.
Under a Trip Transit Policy, coverage is limited to specific property for a specific transit
event; an individual policy must be issued for each shipment. - Answer -Private carriers
transport goods for a specific or limited number of clients under a negotiated contract.
Which one of the following is a category of inland marine classes of business for
purposes of inland marine insurance policies?
Endorsed and unendorsed.
Filed and non-filed.
Scheduled and unscheduled.
Verified and unverified. - Answer -Filed and non-filed.
Which of the following statements concerning the characteristics of filed and non-filed
classes of inland marine insurance is/are true?
I. Filed classes of inland marine insurance are characterized by a large number of
potential insureds and relatively homogeneous loss exposures.
II. Non-filed classes of inland marine insurance are characterized by a relatively small
number of potential insureds, diverse loss exposures, or both.
I only
II only
Both I & II
Neither I nor II - Answer -Both I & II
Which of the following statements concerning the Motor Truck Cargo Carriers Coverage
Form is/are correct?
I. "Covered Property" means property of others described in the declarations that the
insured has accepted for transportation as a common or contract motor carrier.
II. Property is covered while in the insured's custody until the property is delivered to its
destination and while loaded or unloaded at a warehouse for up to 72 hours.
Inland marine insurance evolved from which of the following lines of insurance?
Casualty insurance
Commercial auto insurance
Fire insurance
Marine insurance - Answer -Marine insurance
Which of the following statements is/are correct concerning the ISO Bailees Customers
Coverage Form?
I. It provides coverage for personal property of others that is in the insured's care,
custody or control on a named perils basis.
II. It gives the insured the right to settle any covered loss valued at $500 or less with the
property owner and seek reimbursement of their payment from the insurer provided the
insured complies with two additional duties.
I only
II only
Both I & II
Neither I nor II - Answer -II only
Which of the following types of commercial property would be considered an inland
marine insurance "non-filed" class of business property?
Costumes used in a Broadway production.
A camera in the inventory of a camera dealer.
A large crane used by a contractor.
Guitar in the inventory of a musical instrument dealer. - Answer -A large crane used by
a contractor.
Each of the following statements concerning the ISO Valuable Papers And Records
Coverage Form are true, EXCEPT:
Covered property means any property owned or property of others in the insured's care,
custody or control that meets the policy definition of "valuable papers and records."
The coverage territory includes property in transit within the U.S., Puerto Rico, and
Canada.
There is no coverage for loss or damage caused by delay, loss of use, or loss of
market.
The coverage form pays up to $10,000 for loss or damage to covered property while it is
away from the covered premises unless the insured selects a higher limit for this
coverage extension. - Answer -The coverage form pays up to $10,000 for loss or
damage to covered property while it is away from the covered premises unless the
insured selects a higher limit for this coverage extension.
, Swanson Construction Company owns several large cranes and bulldozers it uses in its
commercial construction business. Which of the following inland marine coverage forms
would be most appropriate to provide coverage for this equipment?
Builders risk policy.
Motor truck cargo carriers coverage form
Product withdrawal coverage form.
Contractors equipment coverage form. - Answer -Contractors equipment coverage
form.
Each of the following statements concerning transportation coverage are true EXCEPT:
Common carriers are subject to a strict liability negligence standard for the handling of
property of others with a few exceptions.
Private carriers transport goods for a specific or limited number of clients under a
negotiated contract.
Coverage for losses resulting from faulty packing are excluded from coverage under
most Motor Truck Cargo Forms.
Under a Trip Transit Policy, coverage is limited to specific property for a specific transit
event; an individual policy must be issued for each shipment. - Answer -Private carriers
transport goods for a specific or limited number of clients under a negotiated contract.
Which one of the following is a category of inland marine classes of business for
purposes of inland marine insurance policies?
Endorsed and unendorsed.
Filed and non-filed.
Scheduled and unscheduled.
Verified and unverified. - Answer -Filed and non-filed.
Which of the following statements concerning the characteristics of filed and non-filed
classes of inland marine insurance is/are true?
I. Filed classes of inland marine insurance are characterized by a large number of
potential insureds and relatively homogeneous loss exposures.
II. Non-filed classes of inland marine insurance are characterized by a relatively small
number of potential insureds, diverse loss exposures, or both.
I only
II only
Both I & II
Neither I nor II - Answer -Both I & II
Which of the following statements concerning the Motor Truck Cargo Carriers Coverage
Form is/are correct?
I. "Covered Property" means property of others described in the declarations that the
insured has accepted for transportation as a common or contract motor carrier.
II. Property is covered while in the insured's custody until the property is delivered to its
destination and while loaded or unloaded at a warehouse for up to 72 hours.
