CMFAS CGI Marine Cargo & Hull Insurance question: marine valued policy

CMFAS CGIMarine Cargo & Hull Insurance

In a marine valued policy, the agreed insured value written into the policy:

A Must be re-proved by fresh market evidence at the time of every loss
B Is only a rough estimate that the insurer may freely reduce at settlement
C Applies to hull cover but is prohibited for marine cargo
D Is fixed in advance and is conclusive between the parties absent fraud

Show the answer and explanation

Answer: D. Is fixed in advance and is conclusive between the parties absent fraud

In a valued policy the parties agree the insured value at the outset; that agreed value is conclusive between them (absent fraud) and forms the basis of total-loss settlement regardless of market value.

Common mistake

Confusing a valued policy with an unvalued policy, where the value must be proved at the time of loss.

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CMFAS CGI Marine Cargo & Hull Insurance question: marine valued policy

Answer: D. Is fixed in advance and is conclusive between the parties absent fraud

Common mistake

Related CMFAS CGI questions

CMFAS CGI Marine Cargo & Hull Insurance question: marine valued policy

Answer: D. Is fixed in advance and is conclusive between the parties absent fraud

Common mistake

Related CMFAS CGI questions