Ocean Sea Freight Marine Cargo Insurance and Risk Management 2

Question 1

What is 'particular average' in marine cargo insurance?

Accepted Answer

A partial loss that affects only one cargo interest and is borne solely by that owner

Answer

A loss shared equally among all cargo owners on the vessel

Answer

A type of freight surcharge applied to high-value goods

Answer

The average insured value across multiple shipments

Question 2

Which Institute Cargo Clause provides the LEAST coverage for cargo?

Accepted Answer

ICC (C)

Answer

ICC (A)

Answer

ICC (B)

Answer

ICC (War)

Question 3

What is a 'deductible' in a marine cargo insurance policy?

Accepted Answer

A predetermined amount that is subtracted from every claim payment, borne by the insured

Answer

The maximum amount the insurer will pay for any single claim

Answer

A monthly premium payment made to maintain coverage

Answer

A discount offered for insuring multiple shipments under one policy

Question 4

What does 'war risk' coverage in a marine cargo policy protect against?

Accepted Answer

Losses caused by acts of war, mines, torpedoes, and other hostile acts that are excluded from standard policies

Answer

Piracy attacks exclusively in international waters

Answer

Weather-related damage occurring during active wartime

Answer

Damage caused by military equipment stored aboard the same vessel

Question 5

What is a 'constructive total loss' in marine cargo insurance?

Accepted Answer

The cost to recover or repair the cargo exceeds its insured value, making recovery uneconomical

Answer

The cargo is completely destroyed with zero salvage value remaining

Answer

The vessel is declared unseaworthy at the time of departure

Answer

Cargo is lost at sea with no witnesses or documented evidence

Question 6

What is an 'open cover' marine insurance policy?

Accepted Answer

A blanket policy that automatically covers all shipments made by the insured within agreed terms without needing separate arrangements per shipment

Answer

A policy with no coverage limits on individual shipments

Answer

A policy specifically covering cargo stored in open-air or uncovered warehouses

Answer

An insurance certificate issued at the port of loading for a single voyage

Question 7

Who typically issues a certificate of insurance for an ocean cargo shipment?

Accepted Answer

The insurance company or its authorized agent, such as the freight forwarder

Answer

The customs authority at the destination port

Answer

The vessel captain at the time of loading

Answer

The International Maritime Organization (IMO)