CMI Marine Insurance & Casualty Assessment Flashcards
6 cards from real CMI practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 CMI Marine Insurance & Casualty Assessment flashcards as text
What is the primary function of a marine surveyor retained by an insurer after a casualty?
Answer: To assess the nature and extent of damage and determine the cause for insurance purposes
An insurance surveyor evaluates the damage, establishes the circumstances and cause of loss, and provides the insurer with a technical basis for evaluating the claim.
In marine casualty assessment, 'proximate cause' is best defined as:
Answer: The dominant, effective cause of a loss without which the loss would not have occurred
Proximate cause is the legally operative cause — the efficient cause that sets other events in motion and directly produces the loss.
Under US maritime law, the concept of 'seaworthiness' for insurance purposes means that:
Answer: The vessel must be reasonably fit for the intended voyage at the time it commences
Seaworthiness requires that the vessel, crew, equipment, and cargo preparation be reasonably adequate for the particular voyage undertaken at its start.
A CMI investigator finds that a vessel owner deliberately scuttled the vessel to collect insurance proceeds. This act is classified as:
Answer: Marine insurance fraud, which voids the policy and may result in criminal prosecution
Scuttling to collect insurance is a criminal act of fraud that voids coverage and can result in federal charges under the US Mail Fraud and insurance fraud statutes.
Which of the following best describes a 'general average' contribution in maritime law?
Answer: A voluntary sacrifice or expenditure made for the common safety of the ship and cargo, shared by all interests
Under the York-Antwerp Rules, general average requires all parties whose property was saved by a voluntary sacrifice to share proportionally in that loss.
In evaluating a marine casualty for insurance purposes, a CMI investigator should review the vessel's class survey records primarily to:
Answer: Identify pre-existing deficiencies or deferred maintenance that may have contributed to the loss
Class survey records reveal the vessel's maintenance history and any outstanding conditions of class, which may establish whether a defect pre-dated the casualty.