Texas All Lines Adjuster Practice Test

Inland marine insurance covers which of the following?

1. Property being transported over land

2. Marine vessels and their operations

3. Real estate investments

4. Workers' compensation claims

The correct answer is: Property being transported over land

Inland marine insurance is specifically designed to cover property that is in transit over land, as well as certain types of movable property that may not be tied to a specific location. This type of insurance originated from marine insurance, which covers goods transported over water. However, inland marine insurance has evolved to cover a broader range of risks associated with the transportation and storage of goods. The scope of coverage includes items like cargo being transported on trucks, bridges, tunnels, and even some specialized types of equipment or property that might be temporarily located away from its primary premises. This principle of covering property while it is in transit is fundamental to understanding inland marine insurance and why this option is the correct one. Other choices relate to different types of insurance or property that fall outside the parameters of inland marine coverage—marine vessels and their operations fall under marine insurance, real estate investments typically are covered by property insurance, and workers' compensation protects against employee-related injuries, all of which are distinct from inland marine insurance.