Canadian Accredited Insurance Broker (CAIB) Three Practice Exam

What are the typical values insured under ocean marine cargo insurance?

1. Only the value of the cargo

2. Invoice cost, shipping costs, and miscellaneous expenses

3. Market value of goods only

4. Buyer's proposed sale price only

The correct answer is: Invoice cost, shipping costs, and miscellaneous expenses

The typical values insured under ocean marine cargo insurance encompass a range of costs associated with the shipment of goods, and the most accurate choice reflects that comprehensive approach. This selection includes the invoice cost, which represents the actual amount paid for the goods; shipping costs, which cover the expenses related to the transportation of the cargo; and miscellaneous expenses, which may include customs duties, insurance premiums, and other related costs that could emerge during the shipping process. Insuring these various components ensures that the cargo is fully protected against potential losses or damages incurred while in transit. The total insured value thus reflects not just the worth of the physical goods but also the financial commitments involved in getting those goods delivered safely and efficiently. This multifaceted coverage is crucial for maintaining the integrity of the shipment and providing adequate compensation in case of any adverse incidents.