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

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