AMIM 121
Ocean Marine Insurance ANS: principally associated with vessels and their cargoes; also includes
international air shipments as well as transportation by land or air that connects with an ocean
shipment or international air shipment.
Cargo Insurance ANS: Insurance that covers loss of or damage to property shipped primarily by water
or, if in foreign trade, by air.
Hull Insurance ANS: Insurance that covers partial or total loss of vessels caused by a covered peril; may
also cover the insureds liability for damage to another vessel and its cargo resulting form collision with
the insured vessel.
Protection and Indemnity ANS: Insurance that covers the policyholder against 1. liability for bodily
injury and property damage arising out of specified types of accidents and 2. certain unexpected vessel-
related expenditures arising out of the ownership or operation of the vessel.
Admiralty Law ANS: a specialized branch of federal law pertaining to claims for occurrences that take
place on navigable waters and are connected with maritime activity.
Voyage Policy ANS: An insurance policy that covers for the dureation of a particular voyage specified in
the policy.
Time Policy ANS: An insurance policy that covers for the dureation of a particular period of time, usually
one year.
Open Cargo Policy ANS: A cargo insurance policy that continues in effect until either the insurer or
insured cancels it.
Contract of utmost good faith ANS: An insurance policy based on the assumption that the insured has
voluntarily revealed to the insurer all information pertinent to the risk being insured.
,Misrepresentation ANS: A false sttement made by the insured that is material to the risk
Concealment ANS: A failure of the insured to divulge information material to the risk.
Exceptive Warranty ANS: A policy provision that excludes certain types of loss or certain causes of loss.
Promissory warranty ANS: A policy provision in which the assured guarantees or negates the existence
of a fact or statement of facts at policy inception or promises that something will be done or will not be
done during the policy period
Implied warranty ANS: A warranty that is understood to apply even through it does not appear in the
policy
Implied warranty of seaworthiness ANS: The captain and crew are competant, the stores are adequate
and the vessel is in the condition to make the voyage.
Implied warranty of no deviation ANS: Implied warranty applicable in voyage policies only that the
vessel will not deviate from its proper course except for permitted reasons.
Implied warranty of legality ANS: Implied warranty that the venture in which the vessel is engaged is
legal
All risks policy ANS: An insurance policy that covers any risk of physical loss unless the policy specifically
excludes it.
Total loss ANS: A loss for which the assured is entitled to collect the full amount of the insurance under
a marine insurance policy; may be either an actual loss or a constructive total loss.
, Actual total loss ANS: A total loss of a vessel or cargo that occurs when the property undergoes physical
destruction, loss of specie, or irretrievable deprivement.
Specie ANS: Cargo that no longer answers the description of the interest of the insured or is unsellable.
Constructive total loss ANS: A total loss that occurs when the cost of recovering and repairing the
insured vessel would exceed its agreed value or when the insured cargo is reasonably abandoned in
expectation of its becoming an actual loss or because the property can't be saved from actual total loss
without expending more than the value of the property.
Agreed value ANS: The value of insured property (such as a vessel) agreed to by the insured and insurer
before policy inception.
Average ANS: A partial loss of a vessel or cargo.
Particular Average ANS: A partial loss that is to be borne by only a particular interest (such as the vessel
owner or a single cargo owner)
General Average ANS: A partial loss that must be borne proportionally by all interests in a maritime
venture (such as vessel owner and all owners of cargo aboard the vessel.
Total loss only (TLO) policy ANS: A marine insurance policy that excludes particular average.
York-Antwerp Rules ANS: International provisions that govern the adjustment of general average.
General Average sacrifice ANS: The deliberate and reasonable sacrifice of part of a vessel or cargo for
the purpose of achieving safety when the voyage is imperiled.
Ocean Marine Insurance ANS: principally associated with vessels and their cargoes; also includes
international air shipments as well as transportation by land or air that connects with an ocean
shipment or international air shipment.
Cargo Insurance ANS: Insurance that covers loss of or damage to property shipped primarily by water
or, if in foreign trade, by air.
Hull Insurance ANS: Insurance that covers partial or total loss of vessels caused by a covered peril; may
also cover the insureds liability for damage to another vessel and its cargo resulting form collision with
the insured vessel.
Protection and Indemnity ANS: Insurance that covers the policyholder against 1. liability for bodily
injury and property damage arising out of specified types of accidents and 2. certain unexpected vessel-
related expenditures arising out of the ownership or operation of the vessel.
Admiralty Law ANS: a specialized branch of federal law pertaining to claims for occurrences that take
place on navigable waters and are connected with maritime activity.
Voyage Policy ANS: An insurance policy that covers for the dureation of a particular voyage specified in
the policy.
Time Policy ANS: An insurance policy that covers for the dureation of a particular period of time, usually
one year.
Open Cargo Policy ANS: A cargo insurance policy that continues in effect until either the insurer or
insured cancels it.
Contract of utmost good faith ANS: An insurance policy based on the assumption that the insured has
voluntarily revealed to the insurer all information pertinent to the risk being insured.
,Misrepresentation ANS: A false sttement made by the insured that is material to the risk
Concealment ANS: A failure of the insured to divulge information material to the risk.
Exceptive Warranty ANS: A policy provision that excludes certain types of loss or certain causes of loss.
Promissory warranty ANS: A policy provision in which the assured guarantees or negates the existence
of a fact or statement of facts at policy inception or promises that something will be done or will not be
done during the policy period
Implied warranty ANS: A warranty that is understood to apply even through it does not appear in the
policy
Implied warranty of seaworthiness ANS: The captain and crew are competant, the stores are adequate
and the vessel is in the condition to make the voyage.
Implied warranty of no deviation ANS: Implied warranty applicable in voyage policies only that the
vessel will not deviate from its proper course except for permitted reasons.
Implied warranty of legality ANS: Implied warranty that the venture in which the vessel is engaged is
legal
All risks policy ANS: An insurance policy that covers any risk of physical loss unless the policy specifically
excludes it.
Total loss ANS: A loss for which the assured is entitled to collect the full amount of the insurance under
a marine insurance policy; may be either an actual loss or a constructive total loss.
, Actual total loss ANS: A total loss of a vessel or cargo that occurs when the property undergoes physical
destruction, loss of specie, or irretrievable deprivement.
Specie ANS: Cargo that no longer answers the description of the interest of the insured or is unsellable.
Constructive total loss ANS: A total loss that occurs when the cost of recovering and repairing the
insured vessel would exceed its agreed value or when the insured cargo is reasonably abandoned in
expectation of its becoming an actual loss or because the property can't be saved from actual total loss
without expending more than the value of the property.
Agreed value ANS: The value of insured property (such as a vessel) agreed to by the insured and insurer
before policy inception.
Average ANS: A partial loss of a vessel or cargo.
Particular Average ANS: A partial loss that is to be borne by only a particular interest (such as the vessel
owner or a single cargo owner)
General Average ANS: A partial loss that must be borne proportionally by all interests in a maritime
venture (such as vessel owner and all owners of cargo aboard the vessel.
Total loss only (TLO) policy ANS: A marine insurance policy that excludes particular average.
York-Antwerp Rules ANS: International provisions that govern the adjustment of general average.
General Average sacrifice ANS: The deliberate and reasonable sacrifice of part of a vessel or cargo for
the purpose of achieving safety when the voyage is imperiled.
