Ace the Florida Insurance Claims Adjuster Test 2026 – Jumpstart Your Adjusting Adventure!

Question: 1 / 400

The master of the ship voluntarily sacrifices the ship's cargo to save the ship. If the loss is settled with each interest paying a pro-rata share of the loss, it is known as:

Sue and Labor

Particular Average

General Average

In this scenario, the master of the ship makes a conscious decision to sacrifice the cargo in order to save the ship. This type of loss is known as general average and it is settled by each party paying a proportionate share of the loss based on the value of their interest in the ship and cargo. Sue and Labor refers to the costs incurred for efforts to save the ship and cargo, and is not related to settling the loss. Particular Average only applies if the loss affects a specific part or interest in the ship or cargo. Demurrage is a term used to describe the charge for the time that a ship spends in a port, not related to settling a loss. Therefore, C General Average is the correct answer in this scenario.

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Demurrage

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