Overview:  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.

Instructors:
Robert Comegys, VP, Starr Marine
Rich Roenbeck, Senior Vice President, Naush, Hogan & Murray, Inc.
Allan Saunders, Marine Claims Manager, Navigators Management, Inc.
Tim  Kennedy, AVP, Starr Marine

Continuing Education Credits: NAMS: 12 Credits SAMS: 12 Credits

State Insurance Departments:
12 credits in NY, PA, NJ
10 credits in MA

COURSE OUTLINE

PART I CARGO INSURANCE POLICY

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

PART II UNDERWRITING CONCERNS

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?"

PART III 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

PART IV CARGO LOSS PREVENTION

1. Cargo Loss Prevention Formula:
    Cargo Shipping Formula = Product Susceptibility + Transit Environments + Understanding the TotalTransit + 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

Program Features: Continental Breakfast Lunch Handouts & Lecture Notes

Special Assistance In Compliance with the  American's with Disabilities Act, AIMU will make all reasonable efforts  to accommodate persons with disabilities at its meetings. Please call John A. Miklus at (212) 233-0550.