Introduction to Cargo Insurance (2 days)

From Wednesday 17 March 2021 -  10:00am
To Thursday 18 March 2021 - 04:30pm
     

REGISTER HERE

Remote option only

About the AIMU Virtual Classroom
AIMU utilizes the GoToWebinar and GoToTraining platforms, which allow full attendee engagement through Q&A and chat panels, and interactive polling with video engaged for all instructors. Attendees can ask questions in real time and share experience and information with other students in the class. All classes are instructed by subject matter experts who are leaders in their individual fields. Each class is designed with 50-minutes of instruction followed by a 10-minute break, as well as a one-hour lunch break for a full-day class.


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:

 Rich Roenbeck cropped  Taylor Magrath cropped Allan Saunders Tim Kennedy cropped
Richard Roenbeck 
Senior Vice President
Naush, Hogan & Murray, Inc.    
Taylor Magrath               
Underwriter 
Starr Marine 
Allan Saunders    
Marine Claims Manager        
The Hartford
Timothy  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 as of 2021; Approved for 12 credits in NJ and 13 credits in RI


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: 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.

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. Please contact Elvira Rodin at erodin@aimu.org.


Location Virtual

Contact Elvira Rodin at erodin@aimu.org
For questions about educational credits, contact our Education/Training Specialist, Eileen Monreale
Office phone: 212-233-0550
Emails: emonreale@aimu.org