West Virginia Property and Casualty Licensing Practice Exam

What does "inland marine" typically refer to in insurance terms?

1. Fire coverage

2. Transport coverage for goods over land

3. Homeowners insurance

4. Flood coverage

The correct answer is: Transport coverage for goods over land

In insurance terminology, "inland marine" primarily refers to coverage that protects goods in transit over land. This type of insurance evolved from the need for coverage of goods transported across rivers and other navigable waters and eventually expanded to cover transportation over land. The concept encompasses not just goods in transit but also coverage for certain types of property that are not fixed to one location, such as construction equipment, tools, and fine art, when they are moved from one place to another. This distinguishes inland marine from other types of insurance, such as fire coverage, which is specifically focused on damage caused by fire; homeowners insurance, which typically protects property within a home and its premises; and flood coverage, which addresses damage caused specifically by flooding events. Therefore, the emphasis on transport coverage in the correct choice reflects the fundamental purpose of inland marine insurance.