CPCU 552 - CHAPTER 10 EXAM QUESTIONS AND ANSWERS WITH COMPLETE SOLUTIONS GRADED A++

CPCU 552 - CHAPTER 10 EXAM QUESTIONS AND ANSWERS WITH COMPLETE SOLUTIONS GRADED A++ Marine insurance (aka ocean marine aka wet marine insurance) insures vessels and their cargoes Maintenance an injured or ill crew member's food and lodging Cure an injured or ill crew member's medical treatment Vessel owner's warranty of seaworthiness the vessel owner's obligation to keep the vessel seaworthy and to supply and maintain its appurtenances, gear, and equipment The Jones Act aka the Merchant Marine Act of 1920 gives an injured American (and sometimes an alien) crew member the right to seek damages from his employer if the injury was wholly or partially caused by the negligence of his employer or its agents or employees; allows the personal representative of a dead crew member the right to claim damages on behalf of the crew member's survivors The Death on the High Seas Act (DOHSA) gives survivors of deceased crew members and non-crew members the right to recover for death caused by wrongful act, neglect, or default occurring on the high seas; lets survivors of crew members sue for unseaworthiness The Carriage of Goods by Sea Act (COGSA) makes a common carrier liable for sea losses if loss is caused by the carrier's failure to make the vessel seaworthy and suitable for carrying the cargo when the voyage began Tramp shipping uses no set schedule of sailings Charter party a contract of carriage Voyage charterer a shipper who charters a vessel for a voyage Time charterer a shipper who charters a vessel for a specified time period The Oil Pollution Act of 1990 (OPA) holds the responsible party liable for pollution, including cleanup costs and damages, property damage, damage to natural resources, loss of earnings, and other damages OPA abbreviates Oil Pollution Act of 1990 Freight revenue for cargo vessels; is the shipping charge for cargo Passage money revenue for passenger vessels; is the fare charges for people General average is a partial loss that is shared proportionately by all parties to the loss based on their total, individual values at risk General average sacrifices sacrifices of part of a vessel or its cargo in order to save the voyage, as when cargo is jettisoned (thrown overboard) Average adjuster calculates and apportions general averages among shipping interests Particular average a partial loss borne solely by the property owner (vessel damage due to the captain's negligence in hitting a submerged reef, cargo damage due to the shipper's negligence in packing) General average expenditures expenses undertaken in order to save a voyage, as when the vessel must be towed back to port Hull insurance provides physical damage insurance on vessels Protection and indemnity (P+I) insurance provides liability insurance for vessels Bareboat charterer responsible for operating and insuring the vessels it charters Perils of the seas include accidental causes of loss peculiar to the sea and other bodies of water (high winds, rough seas, stranding, sinking, and collisions with other vessels and docks) Assailing thieves