a shipper obtains a marine (cargo) insurance policy for $75,000.00 on goods that had a real...

a shipper obtains a marine (cargo) insurance policy for $75,000.00 on goods that had a real or market value of $8,000.00If the goodsare lost at sea, is the insurance company liable for $25,000.00, $8,000.00 or nothing. Support your answer

Expert Solution

$8000

Explanation - this case is a direct example of over insurance in which if the shipment is over insured then the coverage does not go beyond the repair or replacement costs. It is just a simple overpayment of premium.

keosha answered 2 years ago

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Is hedging an insurance policy ?

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