Arkansas Insurance Adjuster Practice Exam

In Ocean Marine insurance, which clause appropriates the loss to one company, rather than spreading the loss among all cargo owners?

1. General Average

2. Single Risk Form

3. Particular Average

4. Sue and Labor

The correct answer is: Particular Average

The clause that appropriates the loss to one company, rather than spreading the loss among all cargo owners in Ocean Marine insurance is the Particular Average clause. The General Average clause, A, refers to the sharing of losses among all parties involved in a maritime adventure. The Single Risk Form, B, is a type of marine insurance policy that covers a single shipment or voyage. The Sue and Labor clause, D, provides coverage for expenses incurred to minimize or prevent further damage to insured goods. Therefore, the Particular Average clause is the only option that specifically addresses the allocation of loss to one company.