Question

The forms used to insure ocean marine cargo are called "institute cargo clauses." There are three different Institute Cargo Clauses. Your client has instructed you to purchase Institute Cargo Clause (A) - All risks on a shipment to Hong Kong. Identify the factor that determines which of the IIC's will be used for a particular shipment.

a. It will depend on the type of cargo being shipped.
b. It will depend on the destination of the shipment.
c. It will depend on the weight of the cargo.
d. It will depend on the shipping company used.

Answer 1

Institute Cargo Clauses for ocean marine cargo insurance are selected based on the type of cargo, with Clause (A) offering the most comprehensive coverage regardless of other factors.

Step-by-step explanation:

The factor that determines which of the Institute Cargo Clauses (IIC) will be used for a particular shipment of ocean marine cargo is primarily the type of cargo being shipped. Institute Cargo Clause (A). All risks, which your client has selected, provides the most comprehensive coverage, and is generally chosen regardless of the destination of the shipment, the weight of the cargo, or the shipping company used. Such clauses are essential in managing the risks associated with globalization and the extensive use of cargo ships for transporting goods in the global economy.