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:
Taylor Magrath, Senior Underwriter - Starr Marine
Brian McClintock, Marine Cargo Product Expert - Allianz Global Corporate & Specialty
Allan Saunders, Marine Claims Manager - The Hartford
Tim Kennedy, Director – Loss Control Services - Starr Marine
Continuing Education Credits: NAMS: 12 Credits SAMS: 12 Credits
State Insurance Departments:
Approved for 11 credits in NY;12 credits in NJ; 13 credits in RI; pending in TX
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: Electronic Handouts
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.
Refunds/Cancellations/Substitutions: Refund requests will be honored if received at least 48 hours prior to the scheduled start date. Cancellations received after the refund deadline and "no shows" are subject to the full registration fees. Substitutions may be made by notifying AIMU via email aimu@aimu.org.
AIMU reserves the right to postpone, cancel, or amend a class schedule at any time.
Attendees are not permitted to record, share, copy, or distribute any AIMU education.
