CAIB 2 - CHAPTER 5 EXAM | Questions & Answers (100% CORRECT)

CAIB 2 - CHAPTER 5 EXAM | Questions & Answers (100% CORRECT) - Drycleaners - Garages - Jewellers - Furriers - Trucking firms - Couriers. - ANSWER - Examples of businesses that have a bailee's exposure. One who has temporary custody of the personal property of another for a purpose other than sale, and who is compensated as a condition of the custody. - ANSWER - "Bailee for hire." Ordinary care. - ANSWER - The level of care required of bailees by law. The legal duty imposed on bailees that requires them to take the same care of goods of others as would be taken by a prudent and diligent owner of such goods. - ANSWER - "Ordinary care." Stock. - ANSWER - The coverage that bailee's exposure is usually insured by under most commercial property policies. 1) Legal liability policy; 2) A special Bailees Customers Policy that insures direct loss or or damage to customers' property, regardless of fault. - ANSWER - Two other types of bailee's policies. 1) In transit; 2) During delay incidental to transit. - ANSWER - Two coverage areas normally provided by Inland Transportation policies. 1) Whether the owner or carrier is responsible for loss to the property; and 2) To what extent. - ANSWER - The two factors to determine whether the owner or the carrier should purchase insurance on a shipment. Includes airlines, railroads, trucking companies and others that provide transportation to any member of the public. - ANSWER - "Common carrier." One that carries, for pay, the goods of certain customers only. - ANSWER - "Contract carrier." One who hauls their own goods or goods entrusted to them as bailees or lessees; includes shippers who own or lease their vehicles and carry their own goods. - ANSWER - "Private carrier." The safe delivery of goods entrusted to them. - ANSWER - The responsibility owed to property owners by common carriers.