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INSU 305 (Ch.4)

Total questions: 17

Worksheet time: 17mins

Name
Class
Date
1.

One of the following contracts used to divide transaction costs and responsibilities between buyer and seller

a)

INCOTERMS

b)

Reinsurance

c)

Insurance

d)

Affreightment

2.

According to Ex-Works (EXW) in INCOTERMS, ………………

a)

The seller is responsible for all charges

b)

The buyer is responsible for all charges

c)

The reinsurance is responsible for all charges

d)

The ship-owner is responsible for all charges

3.

Which of the following provide the most coverages to traders at the highest premium?

a)

FCA – Free Carrier

b)

Institute Cargo Clause C

c)

Institute Cargo Clause B

d)

Institute Cargo Clause A

4.

Incidental perils are caused due to faults in loading, carrying and unloading, that refer to:

a)

Maritime risks

b)

War perils

c)

Unusual risks

d)

Strike risks

5.

In INCOTERMS, the seller pays for all transportation costs and bears all risks – until the goods have been delivered, according to:

a)

FCA – Free Carrier

b)

CIP – Carriage and Insurance Paid

c)

OAF – Delivered at Frontier

d)

DDP – Delivery Duty Paid

6.

Regarding DDU (Delivered Duty Unpaid), The buyer is responsible for the costs and risks for the unloading, duty and any subsequent ……… delivery beyond the place of destination

a)

Before

b)

Prior

c)

Post

d)

during

7.

In marine insurance, the haulier could be responsible for full value stated on the policy expect for losses arising from ………………….

a)

Deterioration or variation in temperature

b)

Damages due to delivery within the time of contract

c)

Free storage

d)

International losses

8.

In marine insurance, the risks of war are covered by:

a)

Institute Cargo Clause A

b)

Institute Cargo Clause B

c)

Separate policy

d)

Institute Cargo Clause C

9.

In marine insurance war risks perils coverage provided by separate policy

a)

True

b)

False

10.

Institute cargo clause C is a policy that covers the third party only

a)

True

b)

False

11.

In marine insurance war risks perils coverage provided by separate policy

a)

True

b)

False

12.

INCOTERMS do not deal with the transfer of ownership of goods

a)

True

b)

False

13.

According to Ex-Works (EXW), in INCOTERMS, the buyer is not responsible for all charges

a)

True

b)

False

14.

Everything you see has been Cargo at some point of its life.

a)

True

b)

False

15.

The Haulier doesn't own the goods themselves.

a)

True

b)

False

16.

INCOTERMS deal with the transfer of ownership of goods.

a)

True

b)

False

17.

INCOTERMS helps avoid differing translation and problems with language barriers.

a)

True

b)

False