Canadian Accredited Insurance Broker (CAIB) Two Practice Exam

Which of the following is NOT a type of Bill of Lading used by common carriers?

1. Standard Bill of Lading

2. Expired Bill of Lading

3. Released Bill of Lading

4. Increased (Valued) Bill of Lading

The correct answer is: Expired Bill of Lading

The choice indicating "Expired Bill of Lading" is the correct answer because an expired bill of lading does not exist as an operational document in the context of shipping and logistics. A bill of lading is a crucial legal document issued by a carrier to acknowledge receipt of cargo and outline the terms for transportation. While various types of bills of lading are recognized and serve different purposes, an expired version would imply that the document is no longer valid or enforceable, and therefore, does not fit into the recognized categories used by common carriers. The other types mentioned have specific functions: a standard bill of lading is commonly used to transport goods and serves as a receipt and contract; a released bill of lading indicates that the carrier is not liable for goods above a certain value; and an increased (valued) bill of lading allows carriers to acknowledge that the cargo is valued higher than normal, which can influence insurance and liability considerations. Each of these plays a vital role in the transportation and insurance processes, while the concept of an "expired" bill of lading does not align with industry standards or practices.