AMIM flashcards

33 cards. Read the term and the definition here. The deck at the top of this page is optional.

General average

A voluntary sacrifice of cargo, ship, or freight to save the whole venture; all interests saved share the loss proportionally through an average adjustment.

Particular average

A partial loss of marine property borne solely by the owner of the damaged property, not shared among other cargo or ship interests.

Sue and labor clause

Obligates the insured to take reasonable steps to mitigate a loss and entitles the insured to reimbursement of those expenses even if the loss is not otherwise covered.

Constructive total loss

A loss where repair cost exceeds the insured value; the insured may abandon the property and claim a total loss.

Valued hull policy

A marine policy where the vessel's insured value is agreed in advance, avoiding disputes over value at the time of loss.

Perils of the sea

Fortuitous accidents of navigation such as wind, waves, stranding, collision, and sinking; ordinary wear and tear is excluded.

Both-to-blame collision clause

A clause addressing cargo recovery when both vessels are at fault, allowing the carrier to recoup from cargo its share of collision liability.

Nationwide Marine Definition

A regulatory definition specifying which risks qualify as inland marine, including property in transit and property of a mobile nature.

Business income coverage

Covers lost net income and continuing expenses during restoration after a covered property loss, subject to a period of indemnity.

Coinsurance clause

Requires the insured to carry a stated percentage of value; recovery is reduced proportionally when the limit carried falls short.

Equipment floater

An inland marine form covering mobile contractors' equipment such as tools and machinery, often on an all-risk basis with scheduled items.

Difference in conditions

A form that fills gaps in a primary property program, typically adding flood, earthquake, and collapse coverage.

Bailee's customers' goods

Coverage protecting property of others held in the insured's care, custody, or control, such as goods at a repair shop.

Motor truck cargo

An inland marine policy covering goods in transit in the insured's care while carried by truck.

Blanket limit

A single insurance limit that applies across multiple locations or scheduled items rather than to one specific property.

Protection and indemnity

Marine liability coverage for third-party claims including crew injury, cargo damage, pollution, wreck removal, and fines.

P&I mutual club

A member-owned marine liability insurer that assesses calls on members rather than charging fixed premiums.

Running down clause

The hull policy clause covering the insured's liability for collision damage to another vessel, typically limited to three-fourths of loss.

Jones Act

A U.S. statute allowing injured seamen to sue their employer for negligence and recover damages for maritime injuries.

Limitation of liability convention

An international regime allowing shipowners to cap liability for certain maritime claims based on vessel tonnage.

Charterer's legal liability

Coverage protecting a charterer for liability arising from its use and control of a vessel it does not own.

Wreck removal liability

P&I coverage for the cost of removing a wreck when required by law, often subject to statutory limits.

Institute Cargo Clauses A

The broadest standard cargo form, covering all risks of loss or damage except those specifically excluded, such as inherent vice and delay.

Institute Cargo Clauses C

The narrowest standard cargo form, covering only major named perils such as sinking, stranding, fire, and collision.

Warehouse-to-warehouse

Cargo transit coverage that attaches when goods leave the shipper's warehouse and ends on delivery at the consignee's warehouse.

CIF Incoterm

A trade term where the seller bears cost, insurance, and freight to the destination port, including arranging minimum cargo insurance.

Inherent vice

An internal quality of goods that causes deterioration without external cause; a standard cargo exclusion.

Trading warranty

A hull warranty restricting the vessel to specified geographic limits or trade routes; breach can void coverage.

Freight insurance

Coverage protecting the vessel owner's earnings from loss of freight when cargo cannot be delivered due to a covered peril.

Average adjuster

A marine professional who calculates general average contributions and prepares the statement apportioning losses among interests.

Subrogation

The insurer's right to pursue recovery from third parties responsible for a loss after indemnifying the insured.

Uberrimae fidei

The marine doctrine of utmost good faith requiring the insured to disclose all material facts relevant to the risk.

Experience modification

An underwriting factor adjusting premium based on the insured's loss history relative to expected losses for similar risks.