CII M90 Practice Questions - Cargo and Goods in Transit Insurances (M90) Exam - CII M90 Practice Questions - Cargo and Goods in Transit Insurances (M90) Exam

Question 1

What is the primary function of Incoterms 2020 rules in international commercial transactions?

To transfer property ownership title of goods between buyer and seller To define the division of tasks, costs, and risks associated with the transportation of goods between seller and buyer To set international customs tax rates and tariffs for goods in transit To govern maritime law disputes regarding vessel navigation and collision

Correct Answer:

To define the division of tasks, costs, and risks associated with the transportation of goods between seller and buyer

Question 2

Under Incoterms 2020, which rule requires the seller to procure marine cargo insurance for the buyer's benefit as a mandatory default obligation?

FOB (Free On Board) CFR (Cost and Freight) CIF (Cost, Insurance and Freight) EXW (Ex Works)

Correct Answer:

CIF (Cost, Insurance and Freight)

Question 3

Under FOB (Free On Board) Incoterms 2020, at what exact point does the risk of loss or damage to the goods pass from seller to buyer?

When the goods are placed in the buyer's warehouse at the port of destination When the goods are delivered into the custody of the carrier at the seller's factory When the goods are loaded on board the vessel nominated by the buyer at the named port of shipment When the ocean bill of lading is signed by the vessel's master

Correct Answer:

When the goods are loaded on board the vessel nominated by the buyer at the named port of shipment

Question 4

What key change was introduced in Incoterms 2020 regarding default insurance cover requirements under CIP compared to CIF?

CIP requires minimum cover under ICC (C), whereas CIF requires ICC (A) CIP requires 'All Risks' cover under ICC (A) by default, whereas CIF retains minimum cover under ICC (C) Both CIP and CIF now mandate Institute War Clauses as a compulsory default CIP no longer requires any insurance coverage to be arranged by the seller

Correct Answer:

CIP requires 'All Risks' cover under ICC (A) by default, whereas CIF retains minimum cover under ICC (C)

Question 5

Why does the International Chamber of Commerce (ICC) strongly recommend FCA instead of FOB for containerised cargo shipments?

FCA allows the seller to retain risk until final destination Containerised goods are usually handed over to a carrier at a container terminal prior to being loaded on board ship FCA eliminates all customs duty obligations for international buyers FOB is only valid for air cargo transactions

Correct Answer:

Containerised goods are usually handed over to a carrier at a container terminal prior to being loaded on board ship

Exam overview

About this Exam

Prepare with the CII M90 Practice Questions - Cargo and Goods in Transit Insurances (M90) Exam practice quiz. This question bank includes 100 questions covering cargo, institute, clauses, clause, and incoterms. Use it to review important concepts, identify knowledge gaps, and build confidence for the related exam, course, or assessment.

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CII M90 Practice Questions - Cargo and Goods in Transit Insurances (M90) Exam

This practice set contains 100 questions from the matching question bank and focuses on cargo, institute, clauses, clause, and incoterms. Work through each question carefully, review the provided solutions, and revisit topics that need more study before your next attempt.

This is an independent study resource intended for practice and review; it is not an official examination or an endorsement by any organization named in the title.

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CII M90 Practice Questions - Cargo and Goods in Transit Insurances (M90) Exam

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