I. Explain the following terms 1.insurable interest 2.utmost good faith principle 3.indemnity principle 4.proximate cause principle 5.cargo transportation insurance 6.marine cargo insurance contract 7.general average contribution 8.inherent vice 9.warehouse to warehouse clause 10.franchise II. Short questions 11.What are the four insurance principles guiding insurance practice in China? 12.What are the differences between general average and particular average? 13.What are the conditions for general average? 14.What are the differences between the scope of I.C.C.(B) and I.C.C.(C)? 15.List the risks that are known as general additional coverage, 16.What are main expenses involved in ocean marine insurance? How to define them? 17.What documents are needed when an insurance claim is made? 18.What are the prerequisites for a claim? III. Calculation 19.A Chinese company offered to a British counterpart at USD500 per case FOB Shanghai. The British importer asked the exporter to offer a CIF price. Suppose the freight is USD50 per case and premium rate is 0.5%, what would the new offer be? 20.Company A transacted with Company B, exporting frozen food under CIF. The total amount of the invoice value was USD10,000. The premium rate was 0.4% and the goods were insured for F. P. A. with a markup of 10%, Please calculate the insurance amount and insurance premium respectively? 21.Our exporting company offered light industrial products to a British importer at GBP10,000 per metric ton CIF London (insurance for All Risks with 10% markup and 1% premium rate). However, the importer intended to effect insurance by himself, as a result, he counter-offered CFR price. What is the CFR price? How much premium should the exporter need to deduct from the CIF price? IV. Case studies 22.X Company signed a CIF contract to export candies. The cargo was insured for “all risks”. Due to the long voyage, candies absorbed sweating in the ship’s hold, and thus softened and degraded. Was the insurance company liable for the damage? Why or why not? 23.An exporter signed an FOB contract with a French company and a CIF contract with a British Company. Both cargoes were insured for marine cargo insurance. But in transit from the exporter’s factory to the port of shipment, the goods were damaged. Under each deal, who should obtain insurance? Who should take the loss? 24.On a voyage the cargo ship had an accidental fire. To save the ship, the captain ordered to have water poured into the compartment. The fire was put out. (1) For party X, her goods burnt amounted to 10% of USD0.5 million cargo; (2) For party Y, his goods damaged due to water poured accounted for 20% of USD1 million cargo; (3) For the carrier, engine damages due to the fire equaled 10% of USD50 million ship; (4) Extra wages for the seamen totaled USD50,000. Based on the information above, indicate 1) Which is P. A.? 2) Which is G. A.? 3) What is the G. A. contribution for each party? 25.An importer signed an FOB contract with an Australian company, importing a batch of woolen blanket. The contract required that goods carried by containers. The goods were packed as follows: each blanket in a plastic bag, four blankets to a large polyethylene bag. The importer effected insurance against WPA and War Risks. When goods arrived at the destination, the goods were found wet to different extents. Upon careful investigation, finally the importer found that there were several holes on the top of the container, the biggest of which was as big as 4cm in diameter. The importer faxed the exporter, asking for compensation. However, the exporter suggested the importer lodge a claim against the insurer for compensation. Comment on this case and work out the solution. 26.An African seller signed a CIF contract exporting goods to an American buyer. The seller insured the goods against All Risks at the request of the buyer and transferred the insurance policy and the bill of lading to the buyer afterwards. In transit from the seller's warehouse to the port of shipment, the goods suffered losses which were within the insurance coverage. When the buyer asked the insurer for compensation with the insurance policy, the insurer refused to make compensation on the ground that the buyer held no insurable interest in the goods when the loss occurred. Comment on the case.