Related Entries of the International Encyclopedia:

1. Cost, Insurance and Freight (CIF) Cost, Insurance and Freight in International Trade Meaning of Cif Cost, Insurance and Freight, according to the Dictionary of International Trade (Global Negotiator): In this Incoterms, the seller has the same obligations as under CFR but with the addition hat he has to procure marine [...]...
2. C.I.F. Contract Definition of C.I.F. ContractIn accordance with the work A Dictionary of Law, this is a description of C.I.F. Contract : C.I.F. contract (cost. insurance. freight contract) A type of contract for the international sale of goods by which the seller agrees not only to supply the goods but also to [...]...
3. Special Cargo Policy A marine cargo policy issued to cover a specific shipment. A special policy may be issued when the shipper infrequently transports goods by water, or when the merchandise is so unusual or so valuable as to warrant a special policy. Frequent shippers customarily obtain an Open Policy (...
4. Marine Cargo Insurance Marine Cargo Insurance in International Trade Meaning of Marine Cargo Insurance, according to the Dictionary of International Trade (Global Negotiator): Insurance covering loss of, or damage to, goods at sea. Marine insurance typically compensates the owner of merchandise for losses in excess [...]...
5. Delay Clause Delay Clause in International Trade Meaning of Delay Clause, according to the Dictionary of International Trade (Global Negotiator): An insurance policy clause that excludes claims for loss of market and for loss, damage or deterioration arising from delay. This exclusion appears in almost [...]...
6. Freight Summary of Freight The earnings that a carrier derives from the carriage of merchandise. Freight should not be confused with cargo, which is the merchandise itself. Also, the term freight is used to represent payment made by a charterer to the vessel's owner for use of a ship under a [...]...
7. Cargo Insurance Certificate Cargo Insurance Certificate in International Trade Meaning of Cargo Insurance Certificate, according to the Dictionary of International Trade (Global Negotiator): A document indicating the type and amount of insurance coverage in force on a particular shipment. Used to assure the consignee [...]...
8. Free of Capture and Seizure A clause in an ocean marine policy that deletes from the list of covered perils the WAR RISKS (read this and related legal terms for further details) of capture and seizure, and losses attributable thereto. All such war-......
9. Difference In Conditions A provision found in some insurance policies that provides coverage for risks omitted in other policies. Difference in conditions coverage is commonly used in relation to marine cargo risks where a buyer is purchasing goods on C.I.F. basis and the insurance coverage provided by the seller is less co......
10. Insurance Certificate Insurance Certificate in International Trade Meaning of Insurance Certificate, according to the Dictionary of International Trade (Global Negotiator): A document used so that coverage is provided to cover loss or damage to cargo while in transit when insurance is placed against an open marine [...]...
11. Underwriting Underwriting Definition Underwriting may be defined as assuming the risk of having to pay insurance benefits, or buying the entire issue of stocks or bonds from a company for resale. Meanings For information on: * organizations that underwrite insurance, see Reciprocals, [...]...
12. Open Marine Cargo Insurance Policy Open Marine Cargo Insurance Policy in International Trade Meaning of Open Marine Cargo Insurance Policy, according to the Dictionary of International Trade (Global Negotiator): A type of insurance policy intended to cover an indefinite number of future individual shipments. The insurance [...]...
13. Sue And Labor A common provision in ocean marine cargo insurance policies that the owner of the merchandise will "sue, labor, and travel for the benefit of the goods." In essence, the owner of the goods is compelled to take all reasonable steps within his power to prevent or mitigate losses; he may be r......
14. Clauses Sue & Labor Clause in International Trade Meaning of Sue & Labor Clause, according to the Dictionary of International Trade (Global Negotiator): A provision in marine insurance obligating the assured to do things necessary after a loss to prevent further loss and to act in the best interests [...]...
15. American Institute Of Marine Underwriters An association embracing virtually every insurance company writing ocean marine insurance cover in the United States. The organization serves as a conduit for information on legislative affairs affecting its members, provides data on marine casualties, and certifies marine surveyors. The associatio......
16. Cost and Freight (CFR) Cost and Freight in International Trade Meaning of Cost and Freight, according to the Dictionary of International Trade (Global Negotiator): In Incoterms CFR the seller must pay the costs and freight necessary to bring the goods to named port of destination but the risk of loss and [...]...
17. Special Marine Policy Special Marine Policy in International Trade Meaning of Special Marine Policy, according to the Dictionary of International Trade (Global Negotiator): An insurance policy which is issued to cover a single shipment. The special marine policy form calls for the name of the vessel and sailing [...]...
18. F.O.B. Contract Definition of F.O.B. ContractIn accordance with the work A Dictionary of Law, this is a description of F.O.B. Contract : (free on board contract) A type of contract for the international sale of goods in which the seller's duty is fulfilled by placing the goods on board a ship. There are [...]...
19. Salvage Loss Salvage Loss in International Trade Meaning of Salvage Loss, according to the Dictionary of International Trade (Global Negotiator): A method of insurance adjustment where the underwriter pays the difference between the amount of insurance and the net proceeds of the sale of damaged goods. It [...]...
20. Loss Payee A person or firm named in an insurance policy to receive the proceeds of a claim settlement. Very often the loss payee is a bank or other financial institution with a financial interest in the goods insured.......
21. Insurance Broker Insurance Broker in International Trade Meaning of Insurance Broker, according to the Dictionary of International Trade (Global Negotiator): An individual or firm who represents buyers of insurance and deals with insurance companies or their agents in arranging for insurance coverage for the [...]...
22. Benefit Of Insurance Clause A provision contained in some ocean bills of lading providing that the ocean carrier is not liable for cargo losses where the merchandise is covered by insurance. This provision has been upheld by the courts (Phoenix Insurance Company vs. Erie & Western Transport Company, 117 U.S. 312, 6 S.Ct. 750 1......
23. Freight Prepaid Freight Prepaid in International Trade Meaning of Freight Prepaid, according to the Dictionary of International Trade (Global Negotiator): A shipping arrangement whereby the carrier is paid its freight charges by the shipper rather than by the consignee. This usually happens when the contract [...]...
24. Freight of All Kinds Freight of All Kinds in International Trade Meaning of FAK (Freight of All Kinds), according to the Dictionary of International Trade (Global Negotiator): Freight rate applicable to all types of goods and therefore is not restricted to a particular commodity. FAK freight rates are quoted [...]...
25. Particular Average Summary of Particular Average A partial loss of the value of cargo shipped by sea attributable to a marine peril. See free of particular average.(Main Author: William J. Miller) Particular Average in International Trade Meaning of Particular Average, according to the Dictionary [...]...
26. Contract Rate In the steamship industry, the freight rate applicable to goods shipped by a firm that has executed an exclusive patronage contract (read this and related legal terms for further details) with a Conference (...
27. Customary Freight Unit As used within the context of the Carriage of Goods by Sea Act, the unit upon which freight is assessed on bulk or unpackaged cargoes. The act provided that a carrier's liability for loss or damage to cargo shall be limited (in the 1980s) to $500 per package, or "other customary freight uni......
28. Actual Total Loss In marine insurance, a loss where nothing remains of the insured property but debris, or where the property is so situated as to make recovery impossible.......
29. Risk Retention Also known as self-insurance, a conscious decision to retain an identified economic risk rather than purchase insurance. This decision is made after comparing the cost of insurance with the likelihood, frequency, and severity of a possible loss. Normally, the money saved by not purchasing insurance ......
30. War Risk Insurance War Risk Insurance in International Trade Meaning of War Risk Insurance, according to the Dictionary of International Trade (Global Negotiator): Insurance coverage against war risks as outlined in detail in some dozen rather than specific paragraphs of an insurance policy. The policy [...]...
31. Constructive Total Loss Summary of Constructive Total Loss In marine insurance, a loss where cost of repair or recovery would exceed the value of the property were it to be saved or repaired. In British usage, an insured cannot claim a constructive total loss unless the costs of rehabilitation exceed 100 percent [...]...
32. Maritime Insurance, Historical Contents See Also Right or Abandonment in Marine Insurance, Historical Abandonment and Total Loss, Historical Admiralty, Historical Average, Historical Blockade ... Read more...
33. Patent Insurance Spanish Translation of patent insuranceThis is the legal translation of English to Spanish in relation to patent insurance and / or a definition of this topic: Seguro de Patentes (in Spanish, without translation of the dictionary entry)....
34. Air Freight Definition of Air Freight in International Trade The following is a concept of Air Freight in the context of international trade law, from the Dictionary of International Trade (Global Negotiator): A service providing for the air transport of goods. The volume of air freight has been [...]...
35. Freight Prepayable Freight Prepayable in International Trade Meaning of Freight Prepayable, according to the Dictionary of International Trade (Global Negotiator): Terminology designed by carriers to provide transportation documentation indicating the freight charges are for the account of the shipper, while no [...]...
36. Freedom of Trade Freedom of Trade and Commerce In relation to the freedom of trade and commerce and constitutional law, Gonzalo Villalta Puig[1] made the following observation: The freedom of trade and commerce is a constitutional norm that conceives the sale and purchase of goods and services among or [...]...
37. Marine Insurance Marine Insurance in Private International Law This section contain conflict of laws information and cross references related to marine insurance on some major countries and additional jurisdictions. It covers key issues involved when citizens face international situations. Information on [...]...
38. Contract Shipper A merchant that has executed an Exclusive Patronage Contract (read this and related legal terms for further details) with a shipping conference, thereby agreeing to ship all its goods aboard vessels of steamship lines th......
39. Monetary Freedom Contents Monetary Freedom Introduction The Index of Economic Freedom The Index of Economic Freedom measures ten components of economic freedom, ... Read more...
40. Binder Summary of Binder A temporary, often abbreviated document evidencing that insurance coverage has been effected. A binder is an interim measure until the full policy is prepared.(Main Author: William J. Miller) Binder in International Trade Meaning of Binder, according to the [...]...
41. Hamburg Rules A proposed international convention dealing with carrier liability for loss or damage to cargo transported by sea. Known formally as the United Nations Convention on the Carriage of Goods by Sea 1978, the convention was the product of a conference held at Hamburg, Federal Republic of [...]...
42. Air Freight Consolidator Definition of Air Freight Consolidator in International Trade The following is a concept of Air Freight Consolidator in the context of international trade law, from the Dictionary of International Trade (Global Negotiator): A company that obtains a low freight-of-all-kinds freight rate from [...]...
43. All Risks A form of marine insurance coverage which provides that the insurer will be liable to the policyholder for all risks of loss or damage attributable to external forces, other than perils expressly omitted.......
44. Insured Value Insured Value in International Trade Meaning of Insured Value, according to the Dictionary of International Trade (Global Negotiator): The combined value of merchandise, inland freight, ocean freight, cost of packaging, freight forwarding charges, and insurance cost, for which insurance is obtained....
45. Free Trade Zone Spanish Translation of free trade zoneThis is the legal translation of English to Spanish in relation to free trade zone and / or a definition of this topic: Zona de Libre Comercio (in Spanish, without translation of the dictionary entry)....
46. Insurance Policy Spanish Translation of insurance policyThis is the legal translation of English to Spanish in relation to insurance policy and / or a definition of this topic: Póliza de Seguro (in Spanish, without translation of the dictionary entry)....
47. Insurance Law See Also Maritime Insurance, Historical Health Law Contents List of Insurance Law e-Journals Medical Insurance Law Insurance Law Contents Insurance Regulations Health Law Regulations Health Insurance Legislation Maritime Insurance, Historical Contents of [...]...
48. Freight Forwarder Freight Forwarder in International Trade Meaning of Freight Forwarder, according to the Dictionary of International Trade (Global Negotiator): A person engaged in the business of assembling, collection, consolidating, shipping and distributing less-than-carload or less-than-truckload freight. [...]...
49. Export Contract Export Contract in International Trade Meaning of Export Contract, according to the Dictionary of International Trade (Global Negotiator): The export contract is used for the international sale of certain products (industrial supplies, raw materials, manufactured goods), which are projected [...]...
50. Marine Extension Clause A provision in an ocean marine cargo policy for coverage of the merchandise in cases where: (1) there is a deviation by the vessel, transshipment, forced discharge, or the exercise of any liberty granted to the vessel operator under the contract of affreightment; or (2) the goods are landed at a por......
51. Free Trade Agreement Free Trade Agreement and the GATT Policy Negotiations In relation to the GATT Policy Negotiations, Christopher Mark (1993) provided the following explanation and/or definition of Free Trade Agreement: An agreement between two or more countries establishing a free trade area (FTA)....
52. Warranted Free In marine insurance policies, an exclusion of coverage for the named peril. For example, "warranted free of capture and seizure" means the underwriter will assume no responsibility for such losses.......
53. Valuation Clause Valuation Clause in International Trade Meaning of Valuation Clause, according to the Dictionary of International Trade (Global Negotiator): The clause in a marine cargo insurance policy that contains the agreed basis for determining the value of covered goods. This sets the amount due under [...]...
54. Air Freight Forwarder Definition of Air Freight Forwarder in International Trade The following is a concept of Air Freight Forwarder in the context of international trade law, from the Dictionary of International Trade (Global Negotiator): A freight forwarder for shipments by air. In many respects, air freight [...]...
55. Carriage Contract Carriage Contract in International Trade Meaning of Carriage Contract, according to the Dictionary of International Trade (Global Negotiator): An agreement between a carrier and another party for transportation. The other party will normally be the seller (or seller's agent) with freight [...]...
56. CIP Carriage and Insurance Paid To CIP Carriage and Insurance Paid to in International Trade Meaning of Cip Carriage and Insurance Paid to, according to the Dictionary of International Trade (Global Negotiator): In Incoterms CIP, the seller has the same obligations as under CPT (Carriage Paid to) terms, but with the addition [...]...
57. Free in and Out A condition in transportation under which the carrier has no responsibility to load or unload the vessel, barge, or other conveyance. The shipper is obliged to stow the cargo, and the consignee to effect unloading; loading and unloading expenses may be borne by either the shipper or the [...]...
58. Inherent Vice A latent defect in a product that causes damage to it, renders it useless, or otherwise inflicts an economic loss that is limited to the item itself. Insurance policies do not respond for losses attributable to inherent vice.......
59. Delivery Order Written instructions issued by the owner of goods or his authorized agent to the holder of such goods directing that the merchandise be released or shipped to a specified party.......
60. Forwarder A person or firm employed by a shipper of merchandise to book passage for the goods, prepare documents, and generally coordinate the shipping transaction. Ocean freight forwarders are regulated under General Order IV of the Federal Maritime Commission; domestic surface forwarders are subject to [...]...
61. Free Trade Area Summary of Free Trade Area An association of states that seeks to overcome impediments to trade among members by reducing or eliminating tariffs among the participants. The members of a free trade area do not maintain a common external tariff nor do they (usually) provide for the free flow [...]...
62. Insurance Premium Insurance Premium in International Trade Meaning of Insurance Premium, according to the Dictionary of International Trade (Global Negotiator): The amount paid to an insurance company for coverage under an insurance policy....
63. Right or Abandonment in Marine Insurance, Historical Contents Right or Abandonment in Marine Insurance, Historical Election to Abandon The insured is never obliged to abandon ; he ... Read more...
64. Rebate (Freight) In trade routes not involving the United States (e.g., Japan to Europe), the practice is legal and accepted. Rebating is often institutionalized in the merchant's contract with a Conference (read this legal term for further details), wherein ......
65. Abandonment and Total Loss in Marine Insurance, Historical Contents Abandonment and Total Loss in Marine Insurance, Historical Definition Abandonment, in the law of marine insurance, is the act ... Read more...
66. Contract Of Affreightment Contract Of Affreightment Summary of Contract Of Affreightment A contract, between the shipper of goods and a transport company, specifying the terms and conditions under which a given lot of merchandise is to be moved. The contract is usually evidenced by a bill of lading containing the [...]...
67. Freight Broker Synonymous with Cargo Broker (read this and related legal terms for further details), in vessel charter transactions.......
68. Insurable Interest An interest such that, should an insured peril occur, the insured party would suffer an economic loss.......
69. Bordereau Bordereau in International Trade Meaning of Bordereau, according to the Dictionary of International Trade (Global Negotiator): A method of reporting shipments to an insurance company under an open insurance policy. An insurance form similar to a declaration, which provides for insurance [...]...
70. Export Credit Insurance Export Credit Insurance in International Trade Meaning of Export Credit Insurance, according to the Dictionary of International Trade (Global Negotiator): Special insurance coverage for exporters to protect against non payment by the importer (coverage may extend to certain other risks, [...]...
71. Contingency Insurance Contingency Insurance in International Trade Meaning of Contingency Insurance, according to the Dictionary of International Trade (Global Negotiator): Insurance coverage taken out by a party to an international transaction to insure against insurance coverage taken by the counterparty. The [...]...
72. Pilferage Pilferage in International Trade Meaning of Pilferage, according to the Dictionary of International Trade (Global Negotiator): As used in marine insurance policies, the term denotes petty thievery-the taking of small parts of a shipment-as opposed to the theft of a whole shipment or large [...]...
73. Free Carrier (FCA) Free Carrier in International Trade Meaning of FCA (Free Carrier), according to the Dictionary of International Trade (Global Negotiator): In Incoterms FCA the seller fulfils his obligation to deliver when he has handed over the goods, cleared for export, into the charge of the carrier [...]...
74. Landed Costs Landed Costs in International Trade Meaning of Landed Costs, according to the Dictionary of International Trade (Global Negotiator): The costs of the imported goods at the port or point of entry into a country, including the cost of freight, insurance and port and dock charges. All charges [...]...
75. Strikes, Riots and Civil Commotion Clause Strikes, Riots and Civil Commotion Clause in International Trade Meaning of Strikes, Riots and Civil Commotion Clause (SRCC), according to the Dictionary of International Trade (Global Negotiator): An insurance clause referring to loss or damage directly caused by strikers, locked-out workmen, [...]...
76. Weight W/M in International Trade Meaning of W/m, according to the Dictionary of International Trade (Global Negotiator): Weight or measurement is a method of quoting freight rates: 1. for sea freight, per metric ton (1.000 kilograms) or per cubic meter (35.3 cubic feet) whichever is greater; 2. for [...]...
77. Futures Contract Futures Contract and International Trade Economy In relation to international trade economy, Christopher Mark (1993) provided the following definition of Futures Contract: A contract for goods, foreign exchange, or financial assets to be delivered at a certain future date on terms and at [...]...
78. Import Contract Import Contract in International Trade Meaning of Import Contract, according to the Dictionary of International Trade (Global Negotiator): The import contract is suitable when a company is buying goods from abroad by way of import in the course of a business to business transaction. The [...]...
79. Free List A listing of all commodities on which no customs duties are imposed.......
80. Bottomry A contract whereby the owner or master of ship borrows for the use of the vessel, pledging the ship (or bottom) as collateral. It is stipulated that the loan shall be forgiven if the vessel is lost during the tenor of the loan or another stipulated period.......
81. Indemnity Introduction to Indemnity Indemnity, in law, an undertaking to compensate another for damage, loss, trouble, or expenses, or the money paid by way of such compensation-for example, under fire-insurance agreements. Under some laws, government officials are protected from paying indemnities and [...]...
82. Shipper Shipper in International Trade Meaning of Shipper, according to the Dictionary of International Trade (Global Negotiator): As the party who contracts for carriage, the party who enters in a contract of carriage with a carrier and pays the carrier is in a position to give the carrier handling [...]...
83. Policy Proof Of Interest A stipulation in an ocean marine insurance policy whereby the insurer admits the insurable interest of the policyholder.......
84. Insurance Company Spanish Translation of insurance companyThis is the legal translation of English to Spanish in relation to insurance company and / or a definition of this topic: Entidad de Seguros (in Spanish, without translation of the dictionary entry)....
85. F.O.B. F.O.B. and International Trade Economy In relation to international trade economy, Christopher Mark (1993) provided the following definition of F.O.B.: An abbreviation (for "free on board") used in international trade statistics and sales contracts; a method of valuing traded goods [...]...
86. Broad Captive See Captive Insurance Company.......
87. Limited Captive See Captive Insurance Company.......
88. Senior Captive See Captive Insurance Company.......
89. Freedom of Services Spanish Translation of freedom of services for insurance intermediaries in the European Economic SpaceThis is the legal translation of English to Spanish in relation to freedom of services for insurance intermediaries in the European Economic Space and / or a definition of this topic: Libre [...]...
90. Floating Policy A contract of marine insurance that remains in force until canceled. Within the geographic, dollar, or product limitations stipulated, the policy is designed to cover all the shipments of the assured, who reports them to the underwriter on a regular basis.......
91. Free of Particular Average A clause in a basic marine cargo insurance policy restricting settlements in the case of partial losses attributable to perils of the sea or incidents where the vessel has been sunk, burned, or stranded during the course of the voyage. An F.P.A. policy provides the most limited coverage. The [...]...
92. Admission Of Seaworthiness A clause commonly found in contracts of marine insurance whereby the insurer agrees not to raise unseaworthiness of the vessel as a defense in a claim brought by the policyholder. In olden days, a merchant was obliged to ascertain the seaworthiness of a ship before offering cargo for carriage. The a......
93. Adverse Selection The practice of applying insurance cover only in those cases where a higher than normal degree of loss is contemplated. Inas-much as adverse selection defeats the object of insurance, which is to spread risk, the practice is discouraged or contractually prohibited in contracts of insurance.......
94. Aggregate Summary of Aggregate The maximum exposure borne by an insured party under a contract of insurance during a given time period, usually one year. If, for example, a policy provides for a deductible of $ 1,000 per occurrence with an aggregate of $5,000, then once the insured party has paid out [...]...
95. Coinsurance Clause A provision in some contracts of insurance under which the insurer will restrict recovery under the policy unless the insured party maintains coverage equal to a given percentage of the value of the property covered. For example, a policy might provide that the insurer will pay the full actual value......
96. Duration Clause The provision in a contract of marine insurance that specifies the period of validity of coverage. As a rule, marine policies are issued for a period of one year and may be extended indefinitely.......
97. Errors And Omissions A clause in an open insurance policy that permits the insured to secure cover retroactively for property inadequately insured through the clerical or administrative error of the insured, and where it is clear from the pattern or character of the insured's business that he would have provided cov......
98. Excess Of Loss Treaty A contract of reinsurance under which the primary policy issuer agrees to pay in full any loss up to a prearranged sum, with everything in excess of that amount borne by the reinsurer.......
99. Explosions Clause A provision in a marine insurance policy establishing coverage for losses to cargo caused by explosion, except where the explosion is the result of acts of war, strikes, rioting, or civil unrest.......
100. Filing Company An insurance company that issues a front policy, i.e., issues a policy but retains little or none of the risk exposure, reinsuring it with another carrier.......
101. Foreign Credit Insurance Association An association of fifty U.S. insurance companies that operates in conjunction with the EXPORT-IMPORT bank (read this and related legal terms for further details), or Eximbank, to insure commercial risks associated with e......
102. Franchise A provision in a marine cargo policy that partial losses will be adjusted if the loss exceeds a certain percentage of the total value of the shipment. A clause providing "with average if amounting to 3 percent," for example, would oblige the underwriter to settle a partial-loss claim [...]...
103. Free Alongside A condition in a shipping contract whereby the shipper bears all costs of delivering the goods up to a ship's tackle. This definition is modified to accommodate local customs of the port. ......
104. Frustration A condition or occurrence during the period when a vessel is under charter that precludes performance of the charter contract or has the effect of defeating the object of the charter. Where frustration occurs, the charter is terminated.......
105. Full Interest Admitted A stipulation commonly included in open marine insurance policies whereby the insurer admits or accepts without documentary evidence the insurable interest of the policyholder in all merchandise declared and for which a premium is paid.......
106. Java Tobacco Survey Clause A condition in marine insurance contracts that obliges exporters of bulk tobacco from Java, Sumatra, and certain other areas in Southeast Asia to have the goods surveyed in advance of shipment. Inability to provide a report from an independent surveyor serves as a barrier to claims of damage or dete......
107. Letter Of Credit Clause A clause in a marine cargo insurance policy designed to protect an exporter until such time as he is paid under a letter of credit. An exporter selling on an F.O.B. or F.A.S. basis, for example, does not provide marine insurance; this obligation is undertaken by the importer. If the purchaser's ......
108. Liner Negligence Clause A provision commonly incorporated into marine hull insurance policies that states that the insurer will pay for damage to the vessel when an accident has occurred without the necessity of identifying a specific peril, less "the cost of repairing, replacing, or renewing any port condemned solely......
109. Lloyd's Of London A major world insurance market, which arose to provide coverage of marine risks but which now insures against virtually any loss or calamity. Contrary to popular belief, Lloyd's is not an insurance company; it has no shareholders and assumes no liability for insurance contracts written by its me......
110. Lloyd's Standard Policy A form of marine policy adopted by Lloyd's in 1779 and recognized in Britain by the Marine Insurance Bill of 1899 and the Marine Insurance Act of 1906 as the standard policy for Britain; policy forms used in the United States vary from the Lloyd's policy, but significant portions are retaine......
111. Open Policy Marine insurance policy issued to cover various unspecified voyages over the life of the policy. An open policy is issued to a firm engaged in extensive shipping transactions, the details of which are probably unknown at the time the policy is issued; usually, the policyholder declares his [...]...
112. Quota Share Treaty A contract of Reinsurance (read this and related legal terms for further details) whereby the reinsurer agrees to accept a stipulated percentage of all business of a particular class......
113. Reinsurance An arrangement in which an insurance underwriter contractually spreads its policy risks with other underwriters, sharing the premium with them. For example, an underwriter may issue a policy for fifty million dollars to cover the loss of a ship; being unwilling to assume the full risk of loss, [...]...
114. Sight Draft Endorsement A provision in a contract of marine insurance designed to protect an exporter while his merchandise lies in a foreign port awaiting acceptance (read this and related legal terms for further details) of drafts by the impo......
115. Stop Loss Treaty A contract of reinsurance under which the primary policy issuer accepts all losses up to a prearranged loss ratio (derived by applying the losses against premium income for the year), after which the reinsurer is liable up to a specified limit.......
116. Surplus Treaty A contract of reinsurance under which the reinsurer agrees to accept risks within a stipulated scale of limits, with degrees of participation varying according to a prearranged plan.......
117. Touch And Stay A clause in a marine insurance contract which stipulates that a vessel may call at customary ports along its route, and that such calls will not of themselves be regarded as a deviation (read this and related legal terms for......
118. Unbundling Expenses The act of breaking out the component costs of a contract of insurance. In addition to pure protection against risk, an insurer must provide for costs of administration, claims processing, actuarial work, et cetera. These and other cost elements are indistinguishable in the policy rate. By unbundlin......
119. Warehouse To Warehouse A provision that can be included in marine insurance policies for coverage on merchandise from initial point of shipment until final delivery at a specified destination.......
120. Warranty In marine insurance contracts, either an exemption from or limitation to the policy, or a promissory warranty whereby the insured agrees to do, or not to do, some particular act. Failure to adhere strictly to a promissory warranty may invalidate a contract of insurance, whether or not the [...]...