Question

Prox Inc. is a U.S.-based manufacturer of consumer electronics. It decides to export to Mexico and wants to protect its goods against damage, loss, and pilferage. Which of the following documents is applicable here?
A. insurance certificate
B. bill of lading
C. pro forma invoice
D. license

Answer 1

Prox Inc. is a U.S.-based manufacturer of consumer electronics. It decides to export to Mexico and wants to protect its goods against damage, loss, and pilferage. The document which is applicable here is an A. insurance certificate.

Explanation:

• A certificate of insurance is a document used to provide information on specific insurance coverage.
• The certificate provides verification of the insurance and usually contains information on types and limits of coverage, insurance company, policy number, named insured, and the policies' effective periods
• Certificate of Insurance is a summary document usually issued by an agent on behalf of an insurer that says a policy has been issued to an insured for a general type of risk.
• The Certificate is usually issued to a third party who wants some evidence or assurance that a policy has been issued.
• A certificate of insurance is requested when liability and large losses are a concern.
• Most commercial leases require the tenant to provide certificates of insurance or other evidence of insurance. Certificates of insurance are typically issued by an agent or broker for the named insured and set forth the coverages written for the insured