Question

What type of Inland Marine policy insures the goods in transit and remain in force until canceled by the parties involved?

1) Open Cargo Policy
2) Bailee's Customer Policy
3) Trip Transit Policy
4) Motor Truck Cargo Policy

Answer 1

The Open Cargo Policy is the type of Inland Marine policy that insures goods in transit and remains effective until the involved parties decide to cancel it.

Step-by-step explanation:

The type of Inland Marine policy that insures goods in transit and remains in force until canceled by the parties involved is known as an Open Cargo Policy. This policy is designed to cover multiple shipments and is flexible, offering continuous coverage for goods while they are being transported, which can include transport over water (stowaway, voyaging), by vehicles with rubber tires, and movement through cargo holds.

The policy usually covers a wide range of transportation methods, including transportation by vehicles and through cargo holds, as well as the potential transport of various goods like animals. Unlike other types of policies such as Bailee's Customer Policy, Trip Transit Policy, or Motor Truck Cargo Policy, the Open Cargo Policy does not limit coverage to a single trip or to specific types of cargo vehicles.