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Definition
| is the oldest form of insurance, probably dating to the Middle Ages. |
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Term
| The organization of _____ ______ took great steps forward with the formation and development of an insurance market on Lombard Street in _______, _______ and subsequently ----since 1769--- Lloyds of London. |
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Definition
| Marine Insurance, London England |
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Term
| Today, ______ __ _______ still plays a prominent role in Marine Insurance. |
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Definition
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Term
| Because of their long tradition, ______ _____ tend to be the most traditionally worded policies in the insurance industry, and to have the longest traditiion of case law legal decisions covering the various terms and clauses of the policies. |
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Definition
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Term
| While care should be taken with any insurance to _____ an definitions provided in the policies, this is especially true in marine coverage's, where the defined terms may have ____ _________. |
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Definition
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Term
| Ocean marine insurance is |
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Definition
| designed to cover various hazard related to the movement of goods. |
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Term
| The first and obvious protection that can be provided is for the _______ themselves. This protection can be provided to the _______/______ or to the ______. |
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Definition
| cargoes, seller/shipper, buyer |
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Term
| Where ______ _ and ________ for the cargo are assumed is ______ in determining what coverage is needed. This used to be a ______ exercise than at the present as a limited number of shipping terms _______. |
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Definition
| ownership of, responsibility, crucial, existed |
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Term
| In 1990, the ______ ______ _____ agreed on an expanded set of terms, which allows ______ of ownership and responsibility at various points along the transit route, including at custom borders. |
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Definition
| international shipping agency, transfer |
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Term
| ______ are unavoidable in the shipment of goods. ______ are loaded and trans-shipped. |
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Definition
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Term
| Travel on the ocean provides its own set of ______. These risks require that the shipper take reasonable step to ensure the safety of his good while __ ______, for instance with proper packaging and/or containerizing, and shipping on a vessel appropriate for the goods in question. |
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Definition
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Term
| Goods are generally handled ____ ____ during shipment, and ______ _______ is designed to provide coverage throughout this process. |
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Definition
| many times, marine insurance |
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Term
| They are held in ____ prior to loading onto a ship. They may be _______ at an intermediate port, and held for ____-______ on a second vessel. Upon arrival in the destination country, they must be cleared through ______, then loaded onto land carriers for transfer to the buyer's premises. There may also be ______ between land transports on either the buyer's or the seller's end- during which time the goods are under the control of _____ ______ _______, and additional ________ _ ___ _________. |
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Definition
| port; unloaded; trans-shipment; customs; transfers; warehouse depot operators; trucking or rail companies |
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Term
| The _____ ____ may be scripted to meet a variety of situations and desired coverage's and generally covers perils: |
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Definition
marine policy;
- of the sea
- fire
- assailing thieves (Pirates)
- jettison of the ships cargo (cargo that gets thrown overboard)
- intentional and negligents acts of the ships captain
- explosion
- defects in the ship that cause damage
- other perils
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Term
| Ocean marine insurance is |
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Definition
| insurance used to protect cargo, vessels, and other items while they are being transported across the ocean. |
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Term
| Both the _____ _____ and the ____ ___ _ __ ______ are able to benefit from ocean marine insurance. Ocean marine insurance is not _____ to ships, but can also cover items traveling by ___ and ____ as well. |
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Definition
| vessel owner; owner of the cargo; limited; air and land |
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Term
| Many types of ocean marine insurance exist for example: |
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Definition
- hull insurance
- cargo insurance
- protection and indemnity (P&I) insurance
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Term
| ____ ______ covers the vessel and machinery if they get damaged. Many times, the coverage will include coverage for damage caused by stranding, sinking, fire and collision. The insurance can be written for an ______ ______ or can be written to cover a _____ __ _____. |
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Definition
| Hull insurance; individual voyage; period of time |
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Term
| _____ ______ is used to protect the actual cargo that is being shipped. This type of marine insurance can be either _____ - covering certain damage--- or ___ ___-- covering a variety of incidences. |
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Definition
| Cargo insurance; specific; all risk |
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Term
| Cargo insurance can also be ____ or ___-____. |
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Definition
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Term
| ______ _____ is bought on a transaction to transaction basis. Since the cargo is being moved through international territories, this insurance is not _____ by any particular country. |
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Definition
| Special insurance; regulated |
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Term
| Like other forms of insurance, Ocean Marine policies are subject to _________. |
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Definition
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Term
| These Exclusions are listed on the _____ _____ _____, which typically include: |
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Definition
Ocean Marine policies
- damage due to dampness
- breakage
- delay or loss of market
- acts of war
- confiscation
- strikes
- riots or civil commotions
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Term
| Marine insurance is an extension of _____-____ ______ _______. |
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Definition
| land-based property insurance |
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Term
| _____ _____ ______ are highly specialized, unique, and to a great degree, unregulated. Therefore, the marine insurance _________ has more discretion over pricing and coverage determination. |
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Definition
| Ocean marine policies; underwriter |
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Term
| Various exclusions and limitations under _____ ____ _____ policies apply to property in the course of transit between locations. |
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Definition
| commercial property insurance |
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Term
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Definition
This is a type of business income insurance that covers the shipping profit. It protects the insured against the loss of shipping costs and can be written separately or included with hull or cargo insurance.
- The owner of the cargo who prepays the shipping is covered for lost shipping cost with this coverage.
- The vessel owner who carries this coverage is protected against lost cargo.
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Term
| _______ ____ _________ (__) protects the ship owner from the consequences of his agents' negligent acts and includes: |
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Definition
Protection and indemnity (P&I)
- bodily injury for the vessel's crew members
- damage to cargo through negligence
- damage to other property not caused by collision
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Term
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Definition
| covers collision damage to another vessel. It does not cover docks or injury to passengers. |
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Term
| ______ _______ also called the additional perils clause, covers losses to a vessel caused by: |
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Definition
Inchmaree clause;
- bursting boilers
- breaking shafts
- latent defects of machinery or the vessel
- negligence of the master or crew members for accidents in handling cargo.
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Term
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Definition
| These are the naturally occuring causes of loss a ship is exposed to during ocean travel, including windstorms, waves, collisions, sinking, stranding, running aground, and more. |
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Term
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Definition
| These are the manmade causes of loss that occur on board ship during ocean travel (ex. Fire). |
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Term
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Definition
| This is a covered peril involving the act of voluntarily throwing cargo or portions of a ship overboard to save the vessel from sinking or suffering other damage. |
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Term
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Definition
| This is also a covered peril and includes fraud or other criminal acts commited by the ship's master or crew that result in a loss to the ship or its cargo. |
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Term
| Ocean marine contracts include several additional _____ and _______. |
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Definition
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Term
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Definition
| is a legal principle of maritime law according to which all parties in a sea venture proportionally share any losses resulting from a voluntary sacrifice of part of the ship or cargo to save the whole in an emergency. |
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Term
| Particular average losses |
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Definition
| These differ from a general average loss in that they do not require contriburtions from other parties. Under _____ _____, each owner of a property bears his own loss individually. Deductibles know as "memorandum clauses" are common with this type of policy. |
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Term
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Definition
| This clause states that, in the event of loss, the policyholder or its representative is permitted and obligated to take action to prevent, limit, or reduce the loss. For example, a boat captain, acting as a representative of the boat owner, is obligated to jettison cargo, if this action is considered necessary to save the ship or cargo insured. |
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Term
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Definition
| Warranties are made part of an ocean marine contract without any expression on the part of the parties involved. Strict compliance is required for losses to be covered. Policies are voided if the implied warranties are violated. |
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Term
| The most common types of ocean marine implied warranties are that: |
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Definition
- a ship is seaworthy
- the purpose of the voyage is legal
- the ship's course will not deviate from what was originally prescribed
- the cargo is in good conditon and properly packaged.
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Term
| ______ ____ imposes an obligation on ship operator to try to save lives at sea. __ ____ _____ is involved solely for life-saving efforts. |
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Definition
| Marine law; No salvage award |
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Term
| To encourage the saving of property, a cash or monetary payment known as a ____ _____ is provided to persons engaging in salvage operations. |
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Definition
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Term
| Salvage awards involve a _____ _______ _____ against the value of the property saved. This award may ___ ___ ___ than the amount saved and represents a loss to property owners in addition to the damage to property salvaged. |
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Definition
| legally determined lien; not be more |
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