What is the purpose of marine insurance?

What will be an ideal response?

Answer: Merchandise that is shipped internationally is invariably insured. The insurance documents must be signed by an authorized representative of the insurance company, its agents, or its underwriters. (An insurance broker's signature is unacceptable.) The insurance must either be issued in the name of the consignee or in the name of the exporter, who can then endorse the policy to the consignee. The value of the insurance must be expressed in the same currency as the currency of the invoice. Otherwise, there would be transaction foreign exchange risk. Firms that do a substantial amount of exporting can purchase insurance policies that are described as "open," or "floating." Such a policy automatically covers all the exports of a firm, which eliminates the necessity of arranging coverage for each individual export order. In such cases, the evidence of insurance is an insurance certificate that the insurance company supplies. The entry of information on the insurance certificate should conform exactly to the information describing the merchandise on the bill of lading, the commercial invoice, and, potentially, the consular invoice.