Return to flip book view
INSURANCE Refresher
INSURANCE Refresher
INSURANCE Refresher
1. What is the minimum percentage of insurance required for a transfer credit to meet the original documentary credit value, based on the following details?• Original documentary credit value : USD200,000• Insurance cover : 110%• Partial transfer value : USD190,000Select one:A. 110%.B. 116%.. C. 120%.D. 200%.
1. What is the minimum percentage of insurance required for a transfer credit to meet the original documentary credit value, based on the following details?• Original documentary credit value : USD200,000• Insurance cover : 110%• Partial transfer value : USD190,000Select one:A. 110%.B. 116%. C. 120%.D. 200%.
02.Which of the following percentages represents the minimum insured value on the insurance document, unless otherwise stated in the documentary credit?A. 100%.B. 105%.C. 110%. D. 115%.
02.Which of the following percentages represents the minimum insured value on the insurance document, unless otherwise stated in the documentary credit?A. 100%.B. 105%.C. 110%. D. 115%.
03. A documentary credit is issued for an amount of about USD50,000 and calls for documents to include an insurance certificate with cover to be irrespective of percentage. Partial shipments are prohibited and documents are presented for the maximum permitted amount. • Which of the following would be acceptable? Insurance certificate with all risks cover for: Select one:A. USD55,000 not subject to a franchise or excess. B. USD65,000 not subject to a franchise or excess. C. USD63,000 subject to a franchise of USD2,500.D. USD70,000 with an excess deductible of USD5,000.
03. A documentary credit is issued for an amount of about USD50,000 and calls for documents to include an insurance certificate with cover to be irrespective of percentage. Partial shipments are prohibited and documents are presented for the maximum permitted amount. • Which of the following would be acceptable? Insurance certificate with all risks cover for: Select one:A. USD55,000 not subject to a franchise or excess. B. USD65,000 not subject to a franchise or excess. C. USD63,000 subject to a franchise of USD2,500.D. USD70,000 with an excess deductible of USD5,000.
04.The credit requires an insurance document for 110 pct of invoice value, endorsed in blank. • The presented insurance document contains insurance cover for 112 pct and shows the assured party as the applicant. Which of the following is correct?A. The presented document is acceptable because the applicant is the assured party as originally intended.B. The presented document is not acceptable because it is for 112 pct instead of 110 pct.C. The presented document is not acceptable because of the lack of endorsement by the nominated bank.D. The presented document is discrepant because it does not satisfy the credit term in regard to the insurance document.
04.The credit requires an insurance document for 110 pct of invoice value, endorsed in blank. • The presented insurance document contains insurance cover for 112 pct and shows the assured party as the applicant. Which of the following is correct?A. The presented document is acceptable because the applicant is the assured party as originally intended. B. The presented document is not acceptable because it is for 112 pct instead of 110 pct.C. The presented document is not acceptable because of the lack of endorsement by the nominated bank.D. The presented document is discrepant because it does not satisfy the credit term in regard to the insurance document.
05.A documentary credit calls for invoices for the full CIF value and insurance certificate covering all risks. • Documents presented include • Invoices for the CIF value of USD 150,000 less discount of USD 25,000; • a bill of lading evidencing shipment on 10 February; and • Insurance policy, issued on 11 February, for USD 137,500 • and effective from 09 February covering Institute Cargo Clauses A.• According to UCP 600, all of the following statements are correct except:A. The insurance policy is acceptable.B. The insurance covers shipment period.C. The amount of the insurance cover is sufficient. D. The risks covered by insurance document are acceptable.
05.A documentary credit calls for invoices for the full CIF value and insurance certificate covering all risks.• Documents presented include • Invoices for the CIF value of USD 150,000 less discount of USD 25,000; • a bill of lading evidencing shipment on 10 February; and • insurance policy, issued on 11 February, for USD 137,500 • and effective from 09 February covering Institute Cargo Clauses A.• According to UCP 600, all of the following statements are correct except:A. The insurance policy is acceptable.B. The insurance covers shipment period.C. The amount of the the cover is insufficient
07. A credit calls for an insurance documents in 3 folds. Insurance document is issued in 2 originals and the same is indicated on the face of the document.A. Presentation of only 2 originals is acceptableB. Presentation of both originals and 1 photocopy of the document is acceptable. C. Presentation of only one original and 2 photocopies of the document is acceptableD. Both b & c
07. A credit calls for an insurance documents in 3 folds. Insurance document is issued in 2 originals and the same is indicated on the face of the document.A. Presentation of only 2 originals is acceptableB. Presentation of both originals and 1 photocopy of the document is acceptable. C. Presentation of only one original and 2 photocopies of the document is acceptableD. Both b & c
08. What does the abbreviated insurance term TPND mean ?A. Institute Cargo Clauses(B)B. Institute Cargo Clauses(C)C. Theft, Pilferage, non-delivery and short deliveryD. Theft, Plenary attack, non-delivery.
08. What does the abbreviated insurance term TPND mean ?A. Institute Cargo Clauses(B)B. Institute Cargo Clauses(C)C. Theft, Pilferage, non-delivery and short deliveryD. Theft, Plenary attack, non-delivery.
09. Invoice shows the amount payable as USD 90.000. - also indicating an advance payment made for USD 10.000.- Trade term is DDU. The credit calls for an insurance policy. Which of the following is correct ?A. Insurance policy can only be required under CIF shipments.B. Insurance coverage must be USD 90.000. - plus 10%.C. Insurance coverage must be minimum USD 110.000.-D. This invoice is not acceptable unless the credit allows indication of any advance payment.
09. Invoice shows the amount payable as USD 90,000. - also indicating an advance payment made for USD 10,000. - Tradeterm is DDU. The credit calls for an insurance policy. Which ofthe following is correct ?A. Insurance policy can only be required under CIF shipments.B. Insurance coverage must be USD 90.000. - plus 10%.C. Insurance coverage must be minimum USD 110.000.D. This invoice is not acceptable unless the credit allows indication of any advance payment.
10. In the event of a franchaise of 5% being applicable on a loss of usd.100 Which of the following best describes “franchaise” ?A. Any loss up to usd.5 is payable by the insured, and usd.95 is payable by the insurerB. Any loss less than usd.5 is payable by the insured, and any loss of usd.5 and over is payable by the insurer. C. All loss is payable by the insurer, irrespective of percentage.D. Percentage in the insurance documents shall not effect.
10. In the event of a franchaise of 5% being applicable on a loss of usd.100 Which of the following best describes “franchaise” ?A. Any loss up to usd.5 is payable by the insured, and usd.95 is payable by the insurerB. Any loss less than usd.5 is payable by the insured, and any loss of usd.5 and over is payable by the insurer. C. All loss is payable by the insurer, irrespective of percentage.D. Percentage in the insurance documents shall not effect.
11. If a LC calls for insurance to cover “Common Risks”, the document presented A. Must cover all risks B. Must cover common risks in the trade C. Must cover risks at least as per ICC ( C ) D. Can cover any risk(s)
11. If a LC calls for insurance to cover “Common Risks”, the document presentedA. Must cover all risks B. Must cover common risks in the trade C. Must cover risks at least as per ICC ( C )D. Can cover any risk(s)
12. Which of the following are FALSE with respect to Insurance document:1. Insurance documents issued and signed by underwriters are not acceptable2. Cover Notes issued by Brokers are acceptable3. Presentation of an insurance Certificate instead of an insurance policy is allowed4. The beneficiary should present all originals insurance document, if the document evidences that more than oneoriginal has been issuedA. 1 onlyB. 2 & 4 onlyC. 1, 2 & 3 only. D. 4 only
12. Which of the following are FALSE with respect to Insurance document:1. Insurance documents issued and signed by underwriters are not acceptable2. Cover Notes issued by Brokers are acceptable3. Presentation of an insurance Certificate instead of an insurance policy is allowed4. The beneficiary should present all originals insurance document, if the document evidences that more than one original has been issuedA. 1 onlyB. 2 & 4 onlyC. 1, 2 & 3 only. D. 4 only