Inland Marine and Ocean Marine Insurance Flashcards
7 cards from real P&C practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Inland Marine and Ocean Marine Insurance flashcards as text
A contractor's equipment floater is designed to cover mobile equipment:
Answer: Wherever the equipment is located, including job sites, storage, and in transit
A contractor's equipment floater covers mobile equipment such as bulldozers, cranes, and compressors wherever they are located — at job sites, in storage, or in transit — because coverage floats with the equipment.
Which of the following best describes the purpose of a Camera Floater under inland marine insurance?
Answer: Coverage for cameras and photographic equipment wherever they are taken
A Camera Floater covers cameras and photographic equipment against loss, damage, or theft wherever the insured takes them, since cameras are portable and used in many different locations.
The Bailee's Customer inland marine form is designed to provide coverage for:
Answer: Customers' property held by a business for service, repair, or storage
A Bailee's Customer policy covers the property of customers that has been entrusted to a business for purposes such as dry cleaning, repair, or storage while it is in the bailee's care.
Which of the following would NOT typically be classified under inland marine insurance?
Answer: Commercial Building coverage for a permanently attached structure
Commercial Building coverage falls under commercial property insurance because buildings are fixed structures, while inland marine covers mobile, specialty, or intangible property that standard property forms do not adequately address.
Accounts Receivable coverage under an inland marine policy protects a business against:
Answer: Inability to collect money owed because accounts receivable records were destroyed
Accounts Receivable coverage pays when a business cannot collect money owed because its records were lost or destroyed by a covered peril, making it impossible to prove and bill outstanding balances.
In ocean marine insurance, 'hull' coverage refers to:
Answer: The physical vessel itself, including its machinery and equipment
Hull coverage in ocean marine insurance covers the physical ship — its structure, machinery, and equipment — similar to how physical damage coverage works for automobiles.
A 'trip transit' inland marine policy differs from an annual transit policy in that it:
Answer: Covers one specifically identified shipment rather than all shipments over a policy year
A trip transit policy is written for a single, specifically identified shipment, while an annual transit policy covers all eligible shipments made during the policy period under one ongoing policy.