Exercises练习
I.True or False
1.Additional risks can be insured separately.( )
2.WPA has the least coverage.( )
3.The coverage of All Risks is the broadest,including War Risk and Strike Risk.( )
4.In order to save money,exporters usually only insure FPA.( )
5.Under the warehouse-to-warehouse clause,the liability of the insurerterminates if the goods leave the designated destination before the insurance policy expires.( )
6.Insurance premium rate for air transport is normally lower than that for other modes of transport.( )
7.Regardless of actual or constructive total loss,the insurance company shall indemnify the insured the total insured amount.( )
8.For fragile goods,the insured may cover them against All Risks plus Risk of Breakage.( )
9.Institute Cargo Clause B is roughly equivalent to All Risks of ocean cargo insurance under CIC.( )
10.Insurance against All Risks means that the insurance company is liable for all risks.( )
II.Multiple Choice Questions
1.If a cargo under a CIF contract is destroyed by fire after being loaded on board,( ).
[A]the exporter shall bear the loss
[B]the exporter should be responsible for making a claim on the insurance company
[C]the importer should be responsible for making a claim on the insurance company
[D]the importer shall bear the loss
2.An exporter’s cargo ran into a storm halfway and both the vessel and cargo sank into the sea and could not be salvaged.In this incident,the loss of the goods is a kind of( ).
[A]partial loss
[B]total loss
[C]common loss
[D]general average
3.According to marine cargo insurance clauses under CIC,( )can be covered in addition to All Risks.
[A]TPND
[B]seller’s contingent insurance
[C]war risk and strike risk
[D]FWRD
4.The “Warehouse to Warehouse”clause in an insurance contract is one that specifies( ).
[A]conditions for the commencement and termination of the carrier’s responsibility for the carriage
[B]conditions for the commencement and termination of the insurer’s responsibility for insurance
[C]conditions for the commencement and termination of the exporter’s responsibility for delivery
[D]conditions for the commencement and termination of the period allowed for the importer to make a claim on the insurance company
5.According to Incoterms 2020,which of the following Incoterms rule requires at least an insurance with the minimum cover of Institute Cargo Clause A?( )
[A]CIF.
[B]CFR.
[C]CIP.
[D]FOB.
6.The insured under FOB/CIF shall be( ).
[A]Importer/Importer
[B]Exporter/Importer
[C]Importer/Exporter
[D]Exporter/Exporter
7.( )is not under the coverage of All Risks.
[A]TPND
[B]Risk of leakage
[C]Risk of non-delivery
[D]Risk of clashing
8.( )is not within the coverage of All Risks.
[A]Risk of odor
[B]TPND
[C]Risk of shortage
[D]War risk
9.In marine cargo insurance,general average loss( ).
[A]is a type of partial loss
[B]is a type of total loss
[C]is a type of constructive total loss
[D]sometimes is a type of partial loss,and sometimes a type of total loss
10.In the case of short delivery,a claim can be made on( ).
[A]the exporter
[B]the insurance company
[C]the carrier
[D]the exporter,the insurance company or the carrier
III.Case Study
1.A cargo ship sailed from Dalian to Singapore.During the voyage,the cargo hold caught fire and the fire spread to the engine room.For the common safety of the ship and cargoes,the captain decided to take emergency measures by filling the hold with water in order to put out the fire.Although the fire was put out,the main engine was damaged and unable to continue sailing.So,the captain decided to hire a tugboat to tow the cargo ship back to Port of Dalian for repair.Then the ship re-sailed to Singapore after maintenance.The investigation showed the losses caused by this incident as follows:
(1)1,000 cartons of goods were destroyed by fire;
(2)600 cartons of cargo were lost due to water-filling and firefighting;
(3)the main engine and part of the deck were burned out;
(4)tugboat costs;
(5)additional fuel and salaries of captain and the crew for re-sailing to Singapore.
Please analyze the nature of the losses and determine which were particular average and which were general average.
2.A Chinese manufacturer concluded a deal of exporting a batch of smart monitoring cameras under Incoterm CIF.Before shipment,it had the goods insured against FPA for 110% of the total invoice value.The goods were loaded and the vessel sailed on schedule in early June.However,the vessel ran into a storm at sea on June 13,resulting in water damage to some goods,with a loss valued at$2,100.A few days later,the vessel hit a reef again,resulting in a partial loss valued at $8,000.Question:Do you think the insurance company will indemnify for the loss of this batch of goods?Why?3.Suppose you quote for a portable power station at CFR $300 per unit Nagoya to a customer in Japan,but the customer authorizes you to purchase insurance on behalf of him.After consulting PICC,the coverage should be at least 110% of the CIF value,and the premium rate is 0.8%.How much should you pay as insurance premium to cover the cargo on behalf of the customer?