Alabama Insurance Adjuster Practice Exam

Which of the following does NOT describe a type of cargo coverage in Ocean Marine insurance?

1. All Risk Form

2. Named Perils Form

3. Comprehensive Coverage

4. Specific Voyage Coverage

The correct answer is: Comprehensive Coverage

Comprehensive Coverage is not typically a recognized type of cargo coverage within Ocean Marine insurance. In the context of marine insurance, coverage types are often specified to address particular risks associated with shipping goods via water. The All Risk Form provides extensive coverage, covering losses from all perils unless specifically excluded, thus offering broad protection. The Named Perils Form, on the other hand, covers only those risks that are explicitly listed in the policy. Specific Voyage Coverage is tailored to protect goods during a particular journey or voyage, allowing for targeted risk management based on the route and conditions expected. Comprehensive Coverage is more commonly associated with other types of insurance, such as automobile insurance, where it covers a wide range of risks. In marine insurance, coverage is typically more specialized and named for the distinct risks inherent in maritime transport, which is why it does not fit the description of cargo coverage under Ocean Marine insurance.