Question 1

Particular average is a partial loss to an interest which must be borne entirely by that interest.

Accepted Answer

A) True 
 B)False  True

Question 2

Match the descriptions with their terms:
-_________________ is a device by which the purchaser of real estate may protect against losses in case the obtained title is not legitimate.

Accepted Answer

A)  Acts of God 
B)  acts or negligence of the shipper 
C)  bailment 
D)  block policy 
E)  contractors' equipment floater
F) credit life insurance
G) deposit insurance program
H) freight
I) inherent nature of the goods
J) jewelers' block policy
K) protection and indemnity clause
L) released bill of lading
M) running-down clause
N) scheduled property floater
O) Title insurance 
A)  Acts of God 
B)  acts or negligence of the shipper 
C)  bailment 
D)  block policy 
E)  contractors' equipment floater
F) credit life insurance
G) deposit insurance program
H) freight
I) inherent nature of the goods
J) jewelers' block policy
K) protection and indemnity clause
L) released bill of lading
M) running-down clause
N) scheduled property floater
O) Title insurance O

Question 3

Match the descriptions with their terms:
-A building contractor's mobile equipment is often insured under a/an ____________________.

Accepted Answer

A)  Acts of God 
B)  acts or negligence of the shipper 
C)  bailment 
D)  block policy 
E)  contractors' equipment floater
F) credit life insurance
G) deposit insurance program
H) freight
I) inherent nature of the goods
J) jewelers' block policy
K) protection and indemnity clause
L) released bill of lading
M) running-down clause
N) scheduled property floater
O) Title insurance 
A)  Acts of God 
B)  acts or negligence of the shipper 
C)  bailment 
D)  block policy 
E)  contractors' equipment floater
F) credit life insurance
G) deposit insurance program
H) freight
I) inherent nature of the goods
J) jewelers' block policy
K) protection and indemnity clause
L) released bill of lading
M) running-down clause
N) scheduled property floater
O) Title insurance E

Question 4

The jewelers' block policy also covers the property of the customer bailor.

Accepted Answer

A) True 
 B)False

Question 5

Title insurance offers coverage for losses occurring before the policy is taken out.

Accepted Answer

A) True 
 B)False

Question 6

Inland marine transit policies usually exclude loss due to

Accepted Answer

A)  strikes, 
B)  collisions, 
C)  rising water. 
A)  strikes, 
B)  collisions, 
C)  rising water.

Question 7

If a sacrifice of goods is voluntarily made for the benefit of the various interests on the voyage, all interests must contribute to the loss, even if the ship is later lost.

Accepted Answer

A) True 
 B)False

Question 8

The jewelers' block policy covers customers' property as well as the jewelers' own property.

Accepted Answer

A) True 
 B)False

Question 9

There is no standard title insurance contract.

Accepted Answer

A) True 
 B)False

Question 10

A certain shipper sends 20 boxes of farm equipment by ocean vessel to Europe. On the way, four boxes are immersed in seawater and totally destroyed, and two boxes are 50 percent damaged. The damage to the boxes that were partially destroyed would be

Accepted Answer

A)  a general average claim, 
B)  a particular average claim, 
C)  paid in full under the sue-and-labor clause, 
D)  denied by the insurer. 
A)  a general average claim, 
B)  a particular average claim, 
C)  paid in full under the sue-and-labor clause, 
D)  denied by the insurer.

Question 11

The jewelers' block policy is typically a named-peril policy.

Accepted Answer

A) True 
 B)False

Question 12

Special insurance policies are needed for mobile equipment because it is subject to such a wide variety of exposures.

Accepted Answer

A) True 
 B)False

Question 13

If a ship changes course, insurance coverage may be voided because of the operation of the implied warranty of

Accepted Answer

A)  seaworthiness, 
B)  legality, 
C)  deviation, 
D)  delay, 
E)  none of these. 
A)  seaworthiness, 
B)  legality, 
C)  deviation, 
D)  delay, 
E)  none of these.

Question 14

Coinsurance clauses in ocean marine insurance policies

Accepted Answer

A)  normally have an 80 percent clause, 
B)  are valued policies, 
C)  do not concern themselves with insurance to value. 
A)  normally have an 80 percent clause, 
B)  are valued policies, 
C)  do not concern themselves with insurance to value.

Question 15

Match the descriptions with their terms:
-The _________________ protects the hull owner against third-party liability claims that arise from collisions.

Accepted Answer

A)  Acts of God 
B)  acts or negligence of the shipper 
C)  bailment 
D)  block policy 
E)  contractors' equipment floater
F) credit life insurance
G) deposit insurance program
H) freight
I) inherent nature of the goods
J) jewelers' block policy
K) protection and indemnity clause
L) released bill of lading
M) running-down clause
N) scheduled property floater
O) Title insurance 
A)  Acts of God 
B)  acts or negligence of the shipper 
C)  bailment 
D)  block policy 
E)  contractors' equipment floater
F) credit life insurance
G) deposit insurance program
H) freight
I) inherent nature of the goods
J) jewelers' block policy
K) protection and indemnity clause
L) released bill of lading
M) running-down clause
N) scheduled property floater
O) Title insurance

Question 16

All but one of the following represent important differences between title insurance and other contracts of property and liability insurance:

Accepted Answer

A)  Under title insurance no losses, as such, are expected, 
B)  Any losses payable under the title insurance contract must have had their origin prior to the effective date of the policy, 
C)  Title insurance is noncancellable, 
D)  There is no expiration date in title insurance, 
E)  Title insurance may contain certain excluded sources of loss. 
A)  Under title insurance no losses, as such, are expected, 
B)  Any losses payable under the title insurance contract must have had their origin prior to the effective date of the policy, 
C)  Title insurance is noncancellable, 
D)  There is no expiration date in title insurance, 
E)  Title insurance may contain certain excluded sources of loss.

Question 17

Damage to a wharf or pier caused by negligent operation of the vessel is covered under the P&I clause.

Accepted Answer

A) True 
 B)False

Question 18

When a ship departs without a good reason from its prescribed course, the implied warranty of deviation is broken.

Accepted Answer

A) True 
 B)False

Question 19

Deviation may be allowed to

Accepted Answer

A)  abandon the trip, 
B)  change the course of the ship to pick up more passengers at another location, 
C)  help a ship in distress. 
A)  abandon the trip, 
B)  change the course of the ship to pick up more passengers at another location, 
C)  help a ship in distress.

Question 20

Under the FC&S clause, war risks are covered in ocean marine insurance.

Accepted Answer

A) True 
 B)False

Exam 10: Risk Management and Commercial Propertypart II

Particular average is a partial loss to an interest which must be borne entirely by that interest.

Match the descriptions with their terms: -_________________ is a device by which the purchaser of real estate may protect against losses in case the obtained title is not legitimate.

Match the descriptions with their terms: -A building contractor's mobile equipment is often insured under a/an ____________________.

The jewelers' block policy also covers the property of the customer bailor.

Title insurance offers coverage for losses occurring before the policy is taken out.

Inland marine transit policies usually exclude loss due to

If a sacrifice of goods is voluntarily made for the benefit of the various interests on the voyage, all interests must contribute to the loss, even if the ship is later lost.

The jewelers' block policy covers customers' property as well as the jewelers' own property.

There is no standard title insurance contract.

A certain shipper sends 20 boxes of farm equipment by ocean vessel to Europe. On the way, four boxes are immersed in seawater and totally destroyed, and two boxes are 50 percent damaged. The damage to the boxes that were partially destroyed would be

The jewelers' block policy is typically a named-peril policy.

Special insurance policies are needed for mobile equipment because it is subject to such a wide variety of exposures.

If a ship changes course, insurance coverage may be voided because of the operation of the implied warranty of

Coinsurance clauses in ocean marine insurance policies

Match the descriptions with their terms: -The _________________ protects the hull owner against third-party liability claims that arise from collisions.

All but one of the following represent important differences between title insurance and other contracts of property and liability insurance:

Damage to a wharf or pier caused by negligent operation of the vessel is covered under the P&I clause.

When a ship departs without a good reason from its prescribed course, the implied warranty of deviation is broken.

Deviation may be allowed to

Under the FC&S clause, war risks are covered in ocean marine insurance.

Introduction to Risk

Risk Identification and Evaluation

Property and Liability Loss Exposures

Life, Health, and Loss of Income Exposures

Risk Management Techniques: Noninsurance Methods

Insurance As a Risk Management Technique: Principles

Insurance As a Risk Management Technique: Policy Provisions

Selecting and Implementing Risk Management Techniques

Risk Management and Commercial Propertypart I

Risk Management and Commercial Liability Risk

Workers Compensation and Alternative Risk Financing

Risk Management for Auto Ownerspart I

Risk Management for Auto Ownerspart II

Risk Management for Homeowners

Loss of Life

Loss of Health

Retirement Planning and Annuities

Employee Benefits: Life and Health Benefits

Employee Benefits: Retirement Plans

Financial and Estate Planning

Risk Management and the Insurance Industry

Functions and Organization of Insurers

Government Regulation of Risk Management and Insurance

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