AIC 304 - : (HANDLING CARGO
AND CONSTRUCTION CLAIMS)
EXAM REVIEWED QUESTIONS AND
THEIR COMPLETE SOLUTIONS
What are 2 types of commercial inland marine
insurance, meant to cover property being
transported?
annual transit and trip transit insurance
What is transit insurance designed to cover?
to cover property, typically on an open perils basis, while it
is in transport
What is the difference between trip transit and annual
transit insurance?
Annual transit is for organizations that frequently ship or
receive property in transit. Trip transit is for occasional
shipments.
What are some of the types of property excluded
under annual transit policies?
precious metals, furs, jewelry, money, and securities
What is the coverage territory of most annual transit
policies?
continental US and Canada
How is property valued under an annual transit
policy?
Between buyer and seller, the amount indicated on a
shipping invoice including shipping charges. If a company
, is shipping between it's own locations, it is covered on an
ACV basis.
Will an MTC liability policy pay for damage to cargo
that results from a hurricane or an earthquake while
it's in the carrier's possession?
No. The cargo wasn't damaged due to negligence of the
carrier.
What are types of property excluded under MTC
policies?
precious metals, jewelry, and fine arts. Some policies also
exclude liquor and cigarettes.
Under a MTC policy, when is covered property
insured?
While IN or ON a land vehicle operated by the insured or
while located at the insureds terminal.
What is the largest class of commercial inland marine
insurance?
contractors equipment
Is the property that can be insured under a
contractors equipment floater limited to tools and
equipment used by contractors?
No. Equipment used by other entities can also be insured.
For example, mobile equipment used in mining and
lumbering operations, as well as road-repair equipment
owned by municipalities, is commonly insured under
contractors equipment floaters.
What does a contractors equipment floater contain?
a schedule listing equipment and corresponding limits.
Can include a single limit for unscheduled hand tools and
miscellaneous equipment.
Alternatively, a floater could be for a blanket limit on all
AND CONSTRUCTION CLAIMS)
EXAM REVIEWED QUESTIONS AND
THEIR COMPLETE SOLUTIONS
What are 2 types of commercial inland marine
insurance, meant to cover property being
transported?
annual transit and trip transit insurance
What is transit insurance designed to cover?
to cover property, typically on an open perils basis, while it
is in transport
What is the difference between trip transit and annual
transit insurance?
Annual transit is for organizations that frequently ship or
receive property in transit. Trip transit is for occasional
shipments.
What are some of the types of property excluded
under annual transit policies?
precious metals, furs, jewelry, money, and securities
What is the coverage territory of most annual transit
policies?
continental US and Canada
How is property valued under an annual transit
policy?
Between buyer and seller, the amount indicated on a
shipping invoice including shipping charges. If a company
, is shipping between it's own locations, it is covered on an
ACV basis.
Will an MTC liability policy pay for damage to cargo
that results from a hurricane or an earthquake while
it's in the carrier's possession?
No. The cargo wasn't damaged due to negligence of the
carrier.
What are types of property excluded under MTC
policies?
precious metals, jewelry, and fine arts. Some policies also
exclude liquor and cigarettes.
Under a MTC policy, when is covered property
insured?
While IN or ON a land vehicle operated by the insured or
while located at the insureds terminal.
What is the largest class of commercial inland marine
insurance?
contractors equipment
Is the property that can be insured under a
contractors equipment floater limited to tools and
equipment used by contractors?
No. Equipment used by other entities can also be insured.
For example, mobile equipment used in mining and
lumbering operations, as well as road-repair equipment
owned by municipalities, is commonly insured under
contractors equipment floaters.
What does a contractors equipment floater contain?
a schedule listing equipment and corresponding limits.
Can include a single limit for unscheduled hand tools and
miscellaneous equipment.
Alternatively, a floater could be for a blanket limit on all
