Question 1

"Warehouse-to-Warehouse" coverage is an extension to the traditional

Accepted Answer

A)  All Risks policy. 
B)  With Average policy. 
C)  Free of Particular Average policy. 
D)  All of the above 
E)  None of the above 
A)  All Risks policy. 
B)  With Average policy. 
C)  Free of Particular Average policy. 
D)  All of the above 
E)  None of the above

Question 2

It is not possible for a shipper to insure its cargo against war damages.

Accepted Answer

A) True 
 B)False

Question 3

The part of a trip during which cargo is at most risk for theft is

Accepted Answer

A)  the ocean voyage. 
B)  the inland leg. 
C)  on the quay of the dock. 
D)  All of the above 
E)  None of the above 
A)  the ocean voyage. 
B)  the inland leg. 
C)  on the quay of the dock. 
D)  All of the above 
E)  None of the above

Question 4

The correct calculation of an insurance premium relies upon the determination of the expected monetary value of claims (their probability multiplied by their expected costs)multiplied by the number of policyholders.Over time,the law of averages-arithmetic averages-allows an insurance company to be profitable.

Accepted Answer

A) True 
 B)False

Question 5

Since there is no problem with inherent vice in air transport,it is not listed as an exclusion in air freight insurance policies.

Accepted Answer

A) True 
 B)False

Question 6

Cargo of exceptional dimensions such as large pieces of equipment which would not fit in a traditional container or would need special arrangements with the shipping line is called ____________________ cargo.

Accepted Answer

The answer of Cargo of exceptional dimensions such as large...

Question 7

A "Sue and Labor" clause

Accepted Answer

A)  directs the shipper to act in the best interest of the insurance company when a loss occurs. 
B)  is the same as an Inchmaree clause. 
C)  specifies that the insurer will reimburse the shipper for goods that have been abandoned after a stranding or a sinking, as long as the costs of recovering the goods and making them marketable is greater than their value. 
D)  All of the above 
E)  None of the above 
A)  directs the shipper to act in the best interest of the insurance company when a loss occurs. 
B)  is the same as an Inchmaree clause. 
C)  specifies that the insurer will reimburse the shipper for goods that have been abandoned after a stranding or a sinking, as long as the costs of recovering the goods and making them marketable is greater than their value. 
D)  All of the above 
E)  None of the above

Question 8

For Institute Marine Cargo Clauses Coverage B,losses due to bad weather are not covered.

Accepted Answer

A) True 
 B)False

Question 9

Ordinary leakage is of more concern in air transit than in ocean transit.

Accepted Answer

A) True 
 B)False

Question 10

A letter of credit usually requires

Accepted Answer

A)  an open ocean cargo policy. 
B)  a special cargo policy. 
C)  a Certificate of Insurance. 
D)  All of the above 
E)  None of the above 
A)  an open ocean cargo policy. 
B)  a special cargo policy. 
C)  a Certificate of Insurance. 
D)  All of the above 
E)  None of the above

Question 11

British "All Risks" policies and American "All Risks" policies are different from each other.

Accepted Answer

A) True 
 B)False

Question 12

If an exporter in a developing country sells to an importer in a developed country on a CIF,the responsibility transfers from exporter to importer at the ship's rail.If there is then a loss,the exporter may suffer a cash flow problem while filing the insurance claim.

Accepted Answer

A) True 
 B)False

Question 13

S.R.& C.C.coverage

Accepted Answer

A)  includes direct physical damage to the insured goods. 
B)  does not include incidental damage caused by delay to market. 
C)  does not cover financial losses that accompany a delay in the sale of cargo. 
D)  All of the above 
E)  None of the above 
A)  includes direct physical damage to the insured goods. 
B)  does not include incidental damage caused by delay to market. 
C)  does not cover financial losses that accompany a delay in the sale of cargo. 
D)  All of the above 
E)  None of the above

Question 14

A special cargo policy

Accepted Answer

A)  is an insurance policy that covers only one shipment. 
B)  allows a firm to purchase coverage that specifically fits a particular shipment. 
C)  results in cumbersome efforts to purchase insurance for each shipment. 
D)  All of the above 
E)  None of the above 
A)  is an insurance policy that covers only one shipment. 
B)  allows a firm to purchase coverage that specifically fits a particular shipment. 
C)  results in cumbersome efforts to purchase insurance for each shipment. 
D)  All of the above 
E)  None of the above

Question 15

The problem of "flags of convenience" in ocean shipping is also a problem in air transit.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is an insurance company?

Accepted Answer

A)  Lloyd's 
B)  Cigna 
C)  the International Underwriting Association 
D)  Inchmaree 
E)  None of the above 
A)  Lloyd's 
B)  Cigna 
C)  the International Underwriting Association 
D)  Inchmaree 
E)  None of the above

Question 17

Condensation damage is covered by All Risks policy and

Accepted Answer

A)  Coverage A of the Institute Marine Cargo Clauses. 
B)  Coverage B of the Institute Marine Cargo Clauses. 
C)  Coverage C of the Institute Marine Cargo Clauses. 
D)  All of the above 
E)  None of the above 
A)  Coverage A of the Institute Marine Cargo Clauses. 
B)  Coverage B of the Institute Marine Cargo Clauses. 
C)  Coverage C of the Institute Marine Cargo Clauses. 
D)  All of the above 
E)  None of the above

Question 18

The three ways companies can manage risk are through risk retention,risk amalgamation,and through a mixed approach.

Accepted Answer

A) True 
 B)False

Question 19

Hull insurance does not cover the owner's liability toward the cargo owners in the case of a general average.

Accepted Answer

A) True 
 B)False

Question 20

A P&I club is a mutual form of insurance.

Accepted Answer

A) True 
 B)False

"Warehouse-to-Warehouse" coverage is an extension to the traditional

It is not possible for a shipper to insure its cargo against war damages.

The part of a trip during which cargo is at most risk for theft is

Since there is no problem with inherent vice in air transport,it is not listed as an exclusion in air freight insurance policies.

Cargo of exceptional dimensions such as large pieces of equipment which would not fit in a traditional container or would need special arrangements with the shipping line is called ____________________ cargo.

A "Sue and Labor" clause

For Institute Marine Cargo Clauses Coverage B,losses due to bad weather are not covered.

Ordinary leakage is of more concern in air transit than in ocean transit.

A letter of credit usually requires

British "All Risks" policies and American "All Risks" policies are different from each other.

If an exporter in a developing country sells to an importer in a developed country on a CIF,the responsibility transfers from exporter to importer at the ship's rail.If there is then a loss,the exporter may suffer a cash flow problem while filing the insurance claim.

S.R.& C.C.coverage

A special cargo policy

The problem of "flags of convenience" in ocean shipping is also a problem in air transit.

Which of the following is an insurance company?

Condensation damage is covered by All Risks policy and

The three ways companies can manage risk are through risk retention,risk amalgamation,and through a mixed approach.

Hull insurance does not cover the owner's liability toward the cargo owners in the case of a general average.

A P&I club is a mutual form of insurance.

Introduction

International Supply Chain Management

International Logistics Infrastructure

Methods of Entry into Foreign Markets

International Contracts

Terms of Trade or Incoterms

Terms of Payment

Currency of Payment (Managing Transaction Risks)

International Commercial Documents

International Ocean Transportation

International Air Transportation

International Land and Multi-Modal Transportation

Packaging for Export

International Logistics Security

Customs Clearance

Using International Logistics for Strategic Advantage

Filters

Exam 10: International Insurance

"Warehouse-to-Warehouse" coverage is an extension to the traditional

It is not possible for a shipper to insure its cargo against war damages.

The part of a trip during which cargo is at most risk for theft is

Since there is no problem with inherent vice in air transport,it is not listed as an exclusion in air freight insurance policies.

Cargo of exceptional dimensions such as large pieces of equipment which would not fit in a traditional container or would need special arrangements with the shipping line is called ____________________ cargo.

A "Sue and Labor" clause

For Institute Marine Cargo Clauses Coverage B,losses due to bad weather are not covered.

Ordinary leakage is of more concern in air transit than in ocean transit.

A letter of credit usually requires

British "All Risks" policies and American "All Risks" policies are different from each other.

If an exporter in a developing country sells to an importer in a developed country on a CIF,the responsibility transfers from exporter to importer at the ship's rail.If there is then a loss,the exporter may suffer a cash flow problem while filing the insurance claim.

S.R.& C.C.coverage

A special cargo policy

The problem of "flags of convenience" in ocean shipping is also a problem in air transit.

Which of the following is an insurance company?

Condensation damage is covered by All Risks policy and

The three ways companies can manage risk are through risk retention,risk amalgamation,and through a mixed approach.

Hull insurance does not cover the owner's liability toward the cargo owners in the case of a general average.

A P&I club is a mutual form of insurance.

Introduction

International Supply Chain Management

International Logistics Infrastructure

Methods of Entry into Foreign Markets

International Contracts

Terms of Trade or Incoterms

Terms of Payment

Currency of Payment (Managing Transaction Risks)

International Commercial Documents

International Ocean Transportation

International Air Transportation

International Land and Multi-Modal Transportation

Packaging for Export

International Logistics Security

Customs Clearance

Using International Logistics for Strategic Advantage

Filters