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NISM Certifications · NISM-Series-X-B: Investment Adviser (Level 2) · Non-Life Insurance Products

In a marine cargo policy, which of the following best describes 'Institute Cargo Clauses (A)' compared with Clauses (B) and (C)?

Institute Cargo Clauses (A) give the widest marine cargo cover, insuring against all risks of loss or damage except those specifically excluded. Clauses (B) and (C) cover only named perils, with (C) offering the most limited protection.

  1. AClauses (A) cover all risks of loss or damage subject to listed exclusions, giving the widest coverCorrect
  2. BClauses (A) cover only fire and sinking of the vessel
  3. CClauses (A) provide the narrowest named-perils cover
  4. DClauses (A) cover only war risks

Explanation

Institute Cargo Clauses (A) are an 'all risks' form, covering loss or damage unless specifically excluded. Clauses (B) and (C) are named-perils forms, with (C) the narrowest. The other options misstate the scope.

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