Inland & Ocean Marine

In ocean marine insurance, 'general average' means:

Answer

A loss incurred for the common good that is shared by all parties to the venture

'GENERAL AVERAGE — In Ocean Marine Insurance, a loss incurred for the common good that is shared by all parties to the venture.' A marine insurer 'is liable for his proportion of all general average loss assessed upon the subject matter insured.'

Source: Conn. Insurance Dept., Glossary of Insurance Terms; Cal. Ins. Code §§1968, 1995

Not the answer

  • The insurer's outright refusal to pay the submitted claim
  • A partial loss that is borne solely by the owner of the damaged property and is not shared by any other party
  • A complete and total loss of the insured vessel itself

Practice this

The Texas All-Lines Adjuster exam is 150 questions with a scaled passing score of 70, which is neither the number nor the percentage correct. This test uses 70% as a yardstick. The app’s page carries a free ten-question test drawn from the same bank, marked as you go.

Take the free practice test