Consumer Reports, she is an expert in credit and debt, retirement planning, home ownership, employment issues, and insurance. She is a graduate of Bryn Mawr College (A.B., history) and has an MFA in creative nonfiction from Bennington College." data-inline-tooltip="true">Julia Kagan

David Kindness is a Certified Public Accountant (CPA) and an expert in the fields of financial accounting, corporate & individual tax planning và preparation, & investing and retirement planning. David has helped thousands of clients improve sầu their accounting and financial systems, create budgets, & minimize their taxes.

Bạn đang xem: Policyholder là gì

What Is xuất hiện Cover?

Open cover is a type of marine insurance policy in which the insurer agrees to provide coverage for all cargo shipped during the policy period. mở cửa cover insurance is most commonly purchased by companies that make frequent shipments, as the blanket coverage keeps them from having lớn purchase a new policy each time a shipment is made.

mở cửa cover is insurance provided to companies engaged in the marine business.An insurer provides insurance lớn all of the cargo shipped under an open cover marine policy.The insurance policy for open cover can be either a renewable policy for each shipment or a permanent policy, covering many shipments.Risks to lớn cargo include sinking, piracy, damage from loading/unloading, và infestation.A policyholder must discchiến bại all pertinent information & fill out certificates with detailed information regarding each shipment.Countries govern their waters, so marine insurance regulations are under the control of the governments where any losses may occur.

Understanding Open Cover

mở cửa cover policies are commonly used in international trade, specifically by companies involved in high volume trade over long periods of time. There are many risks associated with marine shipping that would lead khổng lồ a company wanting lớn purchase marine insurance. Some of these risks include damage khổng lồ cargo from loading or unloading, infestation, sinking, piracy, weather issues, và other similar difficulties. Marine insurance is typically split between insurance for the ship, known as hull & machinery, and the cargo. Each would be required lớn have their own insurance policy.

If a company believes it will not be engaging in marine activity that often, it can opt to buy a renewable policy, where it can renew the policy after it expires if needed. This means that for every voyage it would renew the open cover policy. Most marine companies opt for a permanent policy for a specific time period if they expect lớn be making numerous voyages in that time frame.

The permanent policy covers all voyages under that time period without having lớn negotiate a contract for each shipment. It is a form of blanket coverage that only requires certain details lớn be notified before embarking on the voyage.

Xem thêm:

Since the insured is agreeing khổng lồ purchase a longer-term contract, it may be able to lớn realize lower premiumsbecause the insurer does not have sầu khổng lồ spkết thúc time on administrative activitiesvà the insurer benefits from having a guaranteed premium over a longer period of time. Premiums are typically paid upon declaration of a voyage, for example, weekly or monthly.

Individual countries manage insurance regulations for international shipping, ratherthan an international organization. Scandinavian countries và the U.K. are well-known marine insurance policy providers, andĐài Loan Trung Quốc is also growing as anunderwritercountry.

Facultative sầu vs. xuất hiện Cover

Marine insurance is typically divided inlớn two types: facultative & open cover. Facultative sầu insurance gives the insurance company the option of covering cargo. However, the insured and the insurer must negotiate the terms for each shipment, including the type of coverage, cargo, và ship.

Open cover insurance differs in that the insurer is obligated to lớn provide coverage, provided that the cargo falls within the boundaries outlined in the insurance policy document, và the shipment happens within the policytime period. This makes open cover insurance a size of treaty reinsurance.

Requirements for Open Cover

In some respects, an open cover insurance policy is considered a contract of “utmost good faith,” meaning that the insured must voluntarily reveal lớn the insurer all information pertinent khổng lồ the accepted risks.Failure to vì so could void an open cover policy. To aid in this disclosure requirement, the insurance company provides certificates tobe filled out every time cargo is sent.

The value of the cargo, the proposed travel period, and the location are recorded in the certificate. The terms of an open cover policy will mix a maximum value for the cargo to be covered within a defined time period. Once the maximum value is reached, a new agreement should be signed between both parties. Since countries govern their waters, marine insurance regulations are under the control of the governments where any losses may occur, not the insured company's regulations or their governments.

Bài viết liên quan

Trả lời

Email của bạn sẽ không được hiển thị công khai. Các trường bắt buộc được đánh dấu *