INTRODUCTION

TO

CARGO INSURANCE

AN 

EDUCATION & TRAINING COURSE  

AMERICAN INSTITUTE OF MARINE
UNDERWRITERS

 held at 

American Institute of Marine Underwriters
14 Wall Street, 8^th Floor, Suite 820
New York, NY 10005

in

March
(see course schedule for exact dates)

COURSE DESCRIPTION

This course will review the forms and clauses used to insure cargo transported by sea.  Students will study the insuring agreements, conditions, exclusions, limitations and special features of the forms.  Underwriting and claims principles and practices will be discussed.  Learn about surveyors and the different types of surveyors that can be assigned and utilized to improve the risk and/or assist in the claims process.

Who Should Attend:

Insurance company underwriters, trainees, claims personnel, surveyors, agents or brokers, shipowners, charterers, shippers and maritime attorneys.

Continuing Education Credits:
       State Insurance Departments
                Connecticut    13 Credits            Massachusetts   10 Credits
                New Jersey    12 Credits             Rhode Island      12 Credits           
                New York       13 Credits             Washington       12 Credits           
               

1.  American Institute Cargo Clauses 2004

     a.   Insurable Interest

     b.   Average Terms

     c.   Coverage Extensions

     d.   Duration of Coverage

     e.   Shipping Conditions

     f.    Deductibles and Exclusions

     g.   Special Clauses for specific cargo

UNDERWRITING CONCERN

1.  Assured

     a.   Financials

     b.   Track Record / loss experience

     c.   Business Plan

     d.   “Reputation”

2.  Underwriting

     a.   Finished goods / merchandise

     b.   Commodities / bulk products

     c.   Food products / consumables / pharmaceuticals

     d.   Machinery / project business

     e.   The Inland Transit exposure

     f.    The warehouse / CAT Risk exposures

     g.   Processing exposures

     h.   Useful sources of underwriting information (the Internet and many, many helpful links)

3.  Navigation / Operating locations

     a.   Duration  of Risk

     b.   Warehouse to Warehouse

     c.   Marine Extension Clauses

     d.   Delay Clauses

     e.   Review “hot spots” in the World

     f.    Difficult ports

     g.   OFAC restrictions

4.  Exposures & Rating Plans

     a.   Shipping methods

     b.   Packaging and importance of loss prevention / risk control

     c.   Discuss the importance of understanding Exposures

     d.   Review sample rating exercise and how to build a rate against sales

     e.   Discuss importance of valuation / properly valuing the risk

     f.    Does the risk fit in the Company’s overall strategy?

     g.   Is the risk a class of business worth underwriting?  What to watch out for!

     h.   The broker / agent relationship

     i.    Are you risking “A Lot For A Little?”

CLAIMS ADMINISTRATION
 

1.  All Risk v Named Peril, With Average and FPA, Incoterms

2.  Claims Documentation

     a.   Bill of Lading/Airway Bill

     b.   Invoice

     c.   Packing list

     d.   Proof of insurance

     e.   Special Cargo Policy/Certificate of Insurance

     f.    Bordereaux, Gross reporting policy

     g.   Repair bills or estimate

     h.   Salvage invoice (if applicable)

     i.    Evidence of loss during insured transit

     j.    Subrogation

3. Evidence of loss during insured transit

     a.   Delivery receipts with exceptions

     b.   Warehouse receipts

     c.   Prompt request for survey report

     d.   And many other types of documentation

4.  Loss adjusting formulas

     a.   Particular Average v Salvage Loss

     b.   Particular Average

Damaged Market Value / Sound Market Value

= Percentage of Depreciation

     c.   Insured Value of Damaged goods X

           Percentage of Depreciation = Adjusted Loss

     d.   Salvage Loss Adjustment

     e.   Insured Value of Damaged Goods

- Salvage Value

     Adjusted Loss

5.  Surveyors

     a.   Roll of surveyor

     b.   AIMU Correspondents

     c.   Other surveyors

CARGO LOSS PREVENTION

1.  Cargo Loss Prevention Formula:

    Cargo Shipping Formula = Product Susceptibility + Transit Environments + Understanding the Total Transit + Packaging Adequacy = Loss Free Shipment

     a.   Cargo Shipping

           (1)  Hazards

           (2)  Causes of Loss

     b.   Product Susceptibility

           (1)  Product Components

           (2)  How the components interact

           (3)  Where can the product be damaged

           (4)  Exposure review

     c.   Transit Environments

           (1)  Domestic

           (2)  Overseas

           (3)  Destination Transit

     d.   Understanding the Total Transit

           (1)  Carriers

           (2)  Shipping Terms

           (3)  Weather Conditions

           (4)  Importation Requirements

           (5)  Total transit time

           (6)  Contract Provisions

     e.   Packaging Adequacy

           (1)  Theft

           (2)  Physical Damage

           (3)  Environmental Damage

           (4)  Water Damage

Refunds/Cancellations/Substitutions
Refund requests will be honored if received in writing by 15 days prior to scheduled start date.  All refunds will be subject to a processing fee of $25.  Cancellations received after the refund deadline, “no shows” are subject to the full registration fees. Substitutions may be made by notifying the conference registrar in writing or in person at the on-site registration desk.

Program Features
Continental Breakfast

Lunch
Handouts & Lecture Notes
Certificate of Completion
Continuing Education Credits

For Additional Program Information Contact Us At:
Phone: (212) 233-0550 / Fax (212) 227-5102
         Email: aimu@aimu.org / Web: www.aimu.org          

Click here for registration form