IC67 MARINE INSURANCE EXAM - 10
| Q1.When the freight is paid in advance to the shipping company, under what circumstances is it returnable? |
| When the cargo in the ship is lost or damaged |
| When the ship does not reach the destination port within 7 days of the estimated arrival date |
| When the ship is lost and is untraceable |
| When the ship which was to be sailed does not sail and a different ship is sailed |
| The advance paid freight is not returnable |
| Q2.It may happen in the event of cargo sustaining damage that it can be sold in a damaged state at a place short of a destination to better advantage than if it is reconditioned and forwarded. This is known as ___. |
| Actual Total Loss |
| Particular Average Loss |
| Salvage Loss |
| Constructive Total Loss |
| general Average Loss |
| Q 3. A special immunity is granted to a common carrier to escape liability under the Carrier’s Act -1865. Which is that immunity? |
| Explosion |
| Natural Deterioration or wastage |
| Latent defects |
| Act of Omission |
| Act of God |
| Q4.In Marine Total Losses, Actual Total Loss of the subject matter is said to have occurred ____. |
| When the goods are in a ship that has been posted as 'missing' |
| When the assured is irretrievably deprived thereof, as when a ship and cargo are captured and condemned in the times of war |
| When it loses its species, that is, it is so damaged that it is no longer a thing of kind insured |
| When it is destroyed by a peril insured such as sinking during very bad weather |
| All of the above |
| Q5.An open cover is not a policy but is more like a ___. |
| Debit note |
| Agreement |
| Credit note |
| Document note |
| Banknote |
| Q6A person has sold his goods on a FOB basis. In such a case, when does the risk pass on from the seller to the buyer? |
| The risk passes when the goods reach their destination |
| The risk passes before the start of the transit |
| The risk passes only after the arrival of the ship at the destination port |
| The risk passes after the receipt of shipping documents |
| The risk passes on loading of the cargo on the overseas vessel |
| Q7.The formation of the International Underwriting Association of London (IUA) was due to the merger of ____ and ____. |
| Lloyd's Register of Shipping and Institute of London Underwriters |
| London Insurance and Reinsurance Market Association and Institute of London Underwriters |
| International Maritime Bureau and London Insurance and Reinsurance Market Association |
| International Chambers of Commerce and Institute of London Underwriters |
| London Insurance and Reinsurance Market Association and International Chambers of Commerce |
| Q8.If the subject matter is insured on a ‘LOST OR NOT LOST’ basis, which of the following provisions will apply? |
| In this case, the insured can recover the loss only in case he had an insurable interest in the subject matter while making the contract |
| In this case, the insured can recover in respect of an insurable interest in the subject matter acquired after a loss |
| In this case, the insured can recover a loss only in case he has double insurance for the subject matter |
| In this case, the insured cannot recover any loss because this contract is void |
| In this case, the insured may recover a loss only in case he had an insurable interest in the subject matter prior to the occurrence of the loss |
| Q9.__ is the assembling of one or more packages or items into a compact load, secured together and provided with skids for easy handling. |
| Unitising |
| Bailing |
| Palletizing |
| Containerization |
| Shipping |
| Q10.Which document contains the details about the goods to be insured, the transit details, packing details, etc. which enable the underwriter to judge the risk involved and decide the terms, conditions, and rates for the insurance sought? |
| Memorandum of Understanding |
| Marine Hull Manual |
| Letter of Credit |
| List of Warranties |
| Declaration |