EXAMINATION OF KNOWLEDGE
UNDER MULTIPLE CHOICE QUESTIONS
==INSURANCE in FOREIGN TRADE==
1. Effecting insurance is the way which businessmen can:
a. Prevent risks
c. Stop risks
b. Avoid risks
d. Manage risks
2. The assured can be recovered/ compensated an amount higher than the insurable
value (V) of the subject matter insured (plus survey cost if any) in the below case:
a. Double insurance
c. The sum insured A >V
b. The sum insured A <V
d. None of the above
3. The value of the shipment is 10,000 USD. The buyer’s effected a contract of
insurance with insurable amount 7,000 USD. Which of the followings is true?
a. The buyer must pay 7,000 USD to the insurer for the latter’s protection against
loss / damage to these goods
b. The buyer must pay a small amount of money to the insurer for the latter’s
protection against loss / damage to goods
c. The buyer must pay a premium based on the formular I=R (insurance rate ) x
10,000 to the insurer.
d. None of the above
4. In marine insurance, to make a claim, the assured MUST present that he had an
insurable interest in the goods insured at…
a. At the time of effecting an insurance
c. a and b
b. At the time of loss
d. not necessary
5.
a.
b.
c.
d.
At the time of effecting an insurance contract, it’s required that the insured…
Had the insurable interest in the subject matter insured
Had or may acquire the insurable interest in the subject matter insured latter
Must have a Bill of lading for the shipment
a and c
6. Under a sales contract with CIF rule (Incoterms 2010), the person who has
insurable interest in the insured goods from port to port is:
a. The exporter
b. The importer
c. Either the exporter or the importer, depending on different places in transit.
d. None of the above
7. If the shipment insured undervalue is damaged resulted from the carrier’s fault, the
insured may
a. Claim all damaged value from the carrier
b. Claim all damaged value from the underwriter
c. Claim the amount of compensation from the insurer and submit the subrogation
letter to him, then the insurer must pass the excess proceeds claimed from the carrier
to the insured.
d. (a) or (c)
8. The liability of the insurer for the subject matter insured was NOT mentioned by
a. Checking the shipping documents of the shipment
b. Checking and ranking the class of the vessel to make sure she has seaworthiness
and fitness to carry the object insured
c. Surveying and paying compensation
d. Claiming the 3rd party if the losses / damages to the objects insured have been
caused by their fault
9. Because of the regular fall of the tide, the vessel must lie and wait for a time to
continue the adventure. Under ICC 2009, this is risk of …
a. Stranding and be covered for loss/ damage to the goods
b. Stranding but not be covered for loss/ damage to the goods
c. Grounding and be covered for loss/ damage to the goods
d. Grounding but not be covered for loss/ damage to the goods
10. A small part of the vessel Intan Jaya in transit from Pontianak Port, Indonesia was
damaged by lightning. However, the loaded goods thereon were still safe and the
vessel continued the marine adventure. For the loaded goods, this is ….
a. Covered risk
c. War risk
b. Excluded risk
d. None of the above.
11. Which of following risks is NOT a covered one in ICC B (2009)?
a. General average
c. Pilferage
b. Entry of sea water into the ship
d. Stranding
12. Under ICC -2009-A, which below is NOT a covered risk?
a. The goods were burnt by lightning
b. The vessel was being stranded, the master threw a part of goods out of the vessel
to refloat the vessel
c. The river water entered the vessel and made the goods wet.
d. The goods were lost due to pirate
e. None of the above
13. The insured goods will NOT be compensated for their loss due to the carrying
vessel contacts with…
a. Oil drilling gantry
c. Another vessel
b. Ice
d. Water
14. WA is one insurance clause in the version of…
a. ICC 1963
c. ICC 2009
b. ICC 1982
d. None of the above
15. Under ICC 2009, general average is covered under the clause:
a. ICC A
c. ICC C
b. ICC B
d. All above
16. Marine cargo insurance shall cover losses / damage caused by …
a. Overturning of land conveyance
c. Inherent vice of the goods
b. Ordinary leakage of the goods
d. Delay of the adventure
17. Under a sales contract with FOB rule, the importer must buy insurance with the
insurance clause ...
a. ICC A
c. ICC C
b. ICC B
d. Not compulsory to buy insurance
18. which of the followings considers the entry of rain water into container as a
covered risk?
a. ICC A 2009
c. ICC C 2009
b. ICC B 2009
d. None of the above
19. Which is considered as risk of a vessel’s sinking?
a. Whole vessel goes down below the surface of the water in the sea and the vessel
can’t complete her voyage.
b. The vessel exposes to huge winds/ waves and the vessel float unstably on the sea.
c. A floating part of the vessel carrying the empty containers or timber is sunk, the
vessel can’t sink wholly
d. a & c
20. The insurer is liable for loss/ damage to the subject matter insured resulted from…
a. Fire which is spread from adjacent goods.
b. Fire caused by neglect of the carrier’s servants from their cigarette ash
c. Fire by lightning
d. All of the above
21. A shipment going by sea was insured with the insurable amount 10.000 USD. On
arrival, due to the berth was not available for unloading, the vessel waited at the
commercial zone of the port. Unluckily the vessel burnt, the whole shipment was
damaged. How much is the amount of compensation the insured can claim?
a. 10.000USD
b. 11.000USD
c. 11.000USD + cost of putting out the firehod
d. No compensation because this is a risk of delay
22. Which act of jettisoning the goods into the sea is NOT covered by the insurer?
a. Jettison to make the ship lighter / refloat the ship
b. Jettison to speed up the ship and prevent her from being arrested by hostilities,
enemy
c. Jettison the burning goods to prevent from spreading fire to other goods
d. Jettison the rotten goods with unpleasant smell caused by the reason that the ship
had sheltered over a long period of time at the port of distress (to avoid the huge
storm)
23. The fruits carried in the ship sweated and were rotten due to the carelessness of
the carrier in controlling the temperature. This is covered by the insurer if the
insurance has been signed in clause …..
a.
A
b. B
c. C
d. None of the above
24. Insurance may cover from warehouse to warehouse. So, departure warehouse is…
a. Storage warehouse of semi products
b. Storage warehouse of finished products
c. Storage warehouse (at the place named in the Insurance Contract) for the purpose of
immediate loading on the carrying conveyance to commence transit
d. Warehouse for re-package the subject matter insured in the insurance contract
25. The goods had been commenced in transit, then the insured concluded an
insurance contract with period from warehouse to warehouse. If loss had occurred
before the contract of insurance was concluded,………………
a. The Assured shall be entitled to recover for the loss from the Insurer unless the
Assured were aware of the loss and the Insurers were not when the contract was
concluded.
b. The insurer is always entitled to reject the compensation for this loss
c. The insurer is entitled to compensate a part of the loss
d. b and c
26. Place of destination in the contract of insurance is Company B, Quang Trung,
Govap Dist., HCMC. The goods shall arrive CatLai port, and be moved into CFS for
un-stuffing. The arrival date: 1 Oct. When shall the insurance terminate?
a. on completion of unloading from vessel and moving in CFS at Catlai port
b. on completion of moving the goods at the warehouse of company B
c. on 30 Nov if this date occurs before the arrival date of the goods at company B
d. on the expiry of 60 days after the date when the goods arrive company B
25. Which factor DOES NOT determine the premium rate of a shipment?
a. The carrying vessel
c. The transit time and insurance clause
b. Nature of packing and type of merchandise d. None of the above
26. A shipment with insurable value of 100.000USD is insured with insurable amount
50.000USD. The damaged value of the shipment is 1000USD caused by the agreed
risks. The amount of compensation is:
a. 1,000USD
b. 50,000USD
c. 25,000USD
d. 500USD
27. Value of a shipment is 2.000.000 USD (understood as CFR incoterms 2010) and it
is insured for full value CIF + anticipated profit 10%, R= 0,5%. Pls calculate premium
the insured shall pay.
a. I = 115,789. 47 USD
c. I = 10,025.25 USD
b. I = 11,055.28USD
d. All above are incorrect
28. Value of a shipment 10,000 USD is insured for full value, deductible amount
indiated in the insurance document is 1,500 USD. Value of damage in transit is 8,000
USD caused bu the covered risks. What is the amount of compensation?
a. 4,000 USD
c. 6,500 EUR
b. 8,000 USD
d. None of the above
29. Which is true in terms of “abandonment notice”?
a. The carrier abandons the goods and send the notice to consignee
b. The insured abandons the subject matter insured and send the notice to the carrier
c. The insured wants to leave the goods with actual partial loss to the insurer and
send abandonment notice to the insurer for his acceptance. This shipment is always
compensated as partial loss
d. If this notice is accepted by the insurer, he has the right to possession of the goods
and treat the partial loss as total loss
Bao hiem p. 181-Alan
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