CFB Claims and Risk Management

Question 1

What federal law governs carrier liability for freight loss and damage in interstate commerce?

Accepted Answer

Carmack Amendment

Answer

Sherman Antitrust Act

Answer

Federal Motor Carrier Safety Act

Answer

Interstate Commerce Commission Termination Act

Question 2

Under the Carmack Amendment, what is the standard time limit for a shipper to file a written freight claim with a carrier?

Accepted Answer

9 months from delivery or scheduled delivery

Answer

30 days from delivery

Answer

6 months from delivery

Answer

18 months from shipment date

Question 3

What type of insurance protects a freight broker when a carrier's cargo insurance fails to pay a valid claim?

Accepted Answer

Contingent cargo insurance

Answer

General liability insurance

Answer

Errors and omissions insurance

Answer

Surety bond

Question 4

Which document is most critical when filing a freight damage claim to establish that damage occurred during transit?

Accepted Answer

Bill of lading with damage notations signed at delivery

Answer

Rate confirmation sheet

Answer

Carrier's safety rating certificate

Answer

Shipper's export declaration

Question 5

What does 'released value' mean when applied to a freight shipment?

Accepted Answer

The shipper declares a lower value to obtain a reduced rate, limiting carrier liability to that declared amount

Answer

The carrier has waived all liability for the freight

Answer

The freight has been released from a customs hold

Answer

The carrier has agreed to full replacement value coverage

Question 6

What is subrogation in the context of freight claims?

Accepted Answer

The right of an insurer, after paying a claim, to step into the insured's shoes and recover from the responsible party

Answer

A method for calculating freight charges based on commodity weight

Answer

A contract clause transferring broker liability to the shipper

Answer

The documentation process required for hazmat shipments

Question 7

If freight arrives with visible damage, what immediate action should the consignee take to protect their claim rights?

Accepted Answer

Note the specific damage on the delivery receipt or POD before signing

Answer

Accept delivery and file a written claim within 30 days

Answer

Refuse the entire shipment regardless of the extent of damage

Answer

Contact the freight broker to authorize shipment rejection