Multiple choice

An agreement whereby the insurer will accept insurance of all shipments made by the assured, within the terms of the cover for a fixed period is known as:-

  1. Annual policy

  2. Open cover

  3. Open policy

  4. Annual turnover policy
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

An open cover is an agreement (not a policy) whereby the insurer will accept insurance of all shipments made by the assured, within the terms of the cover for a fixed period, usually for 12 months. Being an agreement, it is not stamped. However, stamped policies or certificates of insurance are issued against the declaration made by the assured. The open cover is of great convenience to the clients engaged in regular import/export trade.

Keep practicing — related questions