Insurance Certificate
This is the simplified version of the insurance policy serving the same function in the transaction.
Open Policy
Open policy is recommended for exporters and importers who do a large volume of business. An open policy provides coverage for all goods shipped by the insured while the policy is in effect. The duration of this policy may last indefinitely.
Paying Insurance Premium
The rates charged by the insurance company depend on many factors. The important determinants include the type of coverage desired, shipping routes, types of conveyances, and duration of the voyage and nature of the goods. Also important is each individual shipper's past loss experience. After a period of favorable experience, rates may be lowered. Conversely, a shipper with a bad loss record may find his premiums increased. Generally, the greater the risks that the consignment is exposed to, the higher the premium will be.
Taking all factors into consideration, the insurance company then gives the shipper a complete rate schedule. This will help exporters to arrive at exact price quotation in cases when the cost of insurance is included in the cost quoted to the foreign buyer. If it is the responsibility of the seller to take out the insurance, he will pay a fixed premium worked out by the insurance company immediately. Only after being paid, can he get the valid insurance policy.
Lodging a Claim
Whenever an actual loss occurs, it is important that one having an interest in the goods can get fair, efficient, and rapid adjustment of his claims. A basic prerequisite for having a claim recognized by the insurance company is that the one making the claim has an insurable interest in the goods. Susceptibility to financial loss by the claim, if the shipment is lost or damaged, is sufficient to demonstrate an insurable interest. Claims can be made by the shipper, the buyer or even a carrier that has first lien on goods for unpaid freight charges. The one who registers a claim should get the survey report conducted by the expert, together with a copy of the bill of lading, the commercial invoice, the insurance policy, and a covering letter requesting payment, and send them to the insurance company for processing. Setting a claim is not so easy, it needs patience, evidence and knowledge.
New Words and Expressions
1. tornado龍卷風
2. technicality術語
3. synonymous同義的
4. claimant索賠人；債權人
5. applicant投保申請人
6. average海損
7. coverage保險險別
8. cover保險
9. layman門外漢
10. peril災難;危險
11. franchise免賠
12. premium保險費
13. fortuity偶然事件；意外事故
14. inevitability必然性；不可避免性
15. FOB離岸價；出廠價+稅+運費+其他費用+利潤
16. Risk of odour串味險
17. Risk of hook damage鉤損險
18. to maintain the initiative保持主動
19. to tailor-make精心設計
20. to lodge a claim索賠
21. misfortune few遭受災難的少數人
22. FPA平安險
23. Insurance certificate保險憑證（俗稱小保單）
24. bulk commodity散裝貨
25. to have lien on對……有留置權
26. to register a claim索賠
27. Survey report檢驗報告
28. inherent vice內在缺陷
Notes
1. insurer. Usually this means the insurance company or the individuals who run an insurance firm. Another term is"underwriter".
2. insured. It always refers to the one who buys insurance from the insurer or the insurance company. The insured may be the buyer under FOB contract, or the seller under CIF contract, or the shipping company, which may have an insurable stake such as the carrying vessel.
3. term life. A policy with a set duration limit on the coverage period. Once the policy is expired, it is up to the policy owner to decide whether to renew the term life insurance policy or to let the coverage terminate. This type of insurance policy contrasts with permanent life insurance, whose duration extends until the policy owner reaches 100 years of age （i.e. death）.
4. insurance broker. The insurance broker, in fact, is the middleman in insurance business. The broker has the advantage of being familiar not only with the technicalities of marine insurance but also has an unbiased view over the coverage and premium rates offered by all insurance companies. He is in good position to obtain for his client the coverage that best fits his needs at the lower possible cost.
5. commission. A service charge assessed by an agent in return for arranging the purchase or sale of a security or real estate. The commission must be fair and reasonable, considering all the relevant factors of the transaction. Commissions vary widely from broker to broker.
6. claimant. Whenever an actual loss occurs, the insured can get fair, efficient and rapid adjustment of his claim. While insurance may be arranged by the exporter, the importer is the rightful owner, consequently, claims are usually made by the importer, after discovering a loss.
7. CIF （Cost, Insurance, Freight）. Under this term, for shipments to designated overseas port of import, the seller quotes a price for the goods, including insurance costs and all transportation and miscellaneous charges, to the point of debarkation from the vessel or aircraft. The cost of unloading cargo at the port of destination is paid for by the seller, to the extent that they are included in the freight charges. If the charges are separate then they fall to the account of the buyer.
Exercises
Ⅰ. Answer the following questions in English:
1. What's the role of life insurance?
2. What is the role of marine insurance in international business?
3. Who benefits by taking out insurance in case the goods are damaged?
4. Who takes care of insurance under CFR contract and CIF contract?
5. What is the primary function of the marine insurance?
6. What are the three basic coverages?
7. What is the meaning of"average"?
8. Which covers the most particular average losses?
9. What is the most commonly used document in insurance?
10. Who is to pay premium under CIF? And what kind of insurance policy is it? And what is the advantage of it?
11. Explain the losses caused by external reasons and give some examples.
12. What is inherent vice? Explain by using real products.
Ⅱ. Fill in each blank with an appropriate word or expression:
1. A type of that covers property that is easily movable and provides additional coverage over what normal do not. This can cover anything from jewelry to expensive stereo equipment.
2. Often homeowner insurance will not fully some items, but adding a floater assures the homeowner that the full value will be replaced in the event of theft, loss or damage. These insurance policies generally cover one individual item, so if you have several items for you want full coverage, you will need get a floater for each.
3. The parties to be involved are simple only two. One is the insurer; the other is the insured. In some cases, there may be an insurance broker in between. Once damages occur, the party who suffers will lodge a claim the insurance policy. This party is called the claimant.
4. The rates charged the insurance company depend on many factors.
5. Once damages occur, the party who suffers will lodge a claim the insurance policy.
6. Generally speaking, the value be insured is based on the value of the commercial invoice.
Ⅲ. Translate the following sentences into Chinese:
1. Health insurance provides coverage for medicine, visits to the doctor or emergency room, hospital stays and other medical expenses.
2. Policies differ in what they cover, the size of the deductible and/or co-payment, limits of coverage and the options for treatment available to the policy holder.
3. Many people receive health insurance from their employer as a benefit, but others must shop around for the right policy.
4. Health Maintenance Organization （HMO）. An HMO is a type of managed health care system. A group of doctors and other medical professionals offer care through the HMO for a flat monthly rate with no deductibles.
5. However, only visits to professionals within the HMO network are covered by the policy.
6. All visits, prescriptions and other care must be cleared by the HMO in order to be covered. Your primary physician within the HMO will handle referrals.
Ⅳ. Translate the following sentences into English:
1. 財產保險的投保方（在保險單或保險憑證中稱被保險人），應當是被保險財產的所有人或者經營管理人或者是對保險標的有保險利益的人。投保方向保險方申請訂立保險合同，負責交納保險費。
2. 投保方提出投保要求，填具投保單，經與保險方商定交付保險費辦法並經保險方簽章承保後，保險合同即告成立。保險方應根據保險合同及時向投保方出具保險單或者保險憑證。
3. 據《經濟合同法》規定：“財產保險合同，采用保險單或保險憑證的形式簽訂。”為履行財產保險合同，保險方和投保方都應明確合同的內容和雙方的責任。
4. 保險合同一經成立，保險方不得在保險有效期內終止合同。
5. 保險方提前終止保險合同時，應將按日計算的未到期的保險費，退還投保方。除非保險合同另有規定，投保方中途不能要求終止合同，也不能要求退還保險費。
6. 當投保船舶在發生事故後，保險公司應派相關專家前往組織打撈、救助，請專業機構評估損失，積極賠付。
Reading Materials
Insight into Insurance Scoring
Do you know your insurance score? Most people don't even realize that they have one until they receive an"adverse-action" notice in the mail notifying them that, based on their insurance score, they don't qualify for the lowest pricing available from their insurance provider. To help you decipher what all this means, here we go over what the insurance score is, how it's calculated and some things you can do to improve it.
The Shroud around the Mystery
If you ever get one of these adverse-action letters, any efforts to dig a little deeper into the circumstances behind your low score requires more perseverance than most people are willing to put forth. The adventure begins by following the letter's instructions to call the listed 1800 number to receive a free copy of your credit report - which apparently has some affect on the score. You may wait several weeks for a reply, only to be sent a consent form that reads like an identity thief's dream: the form will request detailed proof of identification, including photocopies of your driver's license, in addition to your social security number and your insurance information. If after gathering all of that information you are brave enough to send it off through the mail, the packet that you get back will simply summarize your credit rating, with absolutely no information about your insurance score.
If you inquire further with the credit-reporting agency, you will likely be told that your credit report contains information that was used to calculate your insurance score, but that the credit-reporting agency has no access to your actual score. If you persist and contact your insurance company, it will likely tell you that 99% of its clients do not qualify for the company's lowest rate, and to qualify, your credit must be absolutely perfect. In other words, even if you carry no balances on your credit cards, own your home free and clear, are completely debt free and have a credit rating in the high 700s, you're still unlikely to have an insurance score that qualifies you for the lowest available insurance rate. So what exactly is this mysterious insurance score, and what exactly is its reason and purpose?
What It Is and How It Is Calculated?
An insurance score is a rating used to predict the likelihood that a customer will file an insurance claim. This score - as we noted above - is based on an analysis of a consumer's credit rating, and the method for calculating it varies from insurer to insurer. While many companies use proprietary formulas to calculate the scores, the factors used in the calculation include the customer's outstanding debt, length of credit history, payment history, amount of revolving credit versus amount of credit in the form of loans, available credit and monthly account balance.