IC Non-Life Insurance Agent's Practice Exam

The appropriate term indicating that the title of goods will pass from the shipper to the consignee at a specific point during transit is "Free on Board" (FOB). This term is significant in shipping and logistics as it specifies the point at which liability and ownership of the goods transfer from the seller to the buyer.

In an FOB agreement, the title passes to the buyer once the goods are loaded onto the transportation vessel. This means that the seller's responsibility ends once the goods are on board, thus establishing a clear point where the buyer assumes both risk and ownership. This is crucial for both parties in terms of managing liability, costs, and expectations regarding delivery.

The other terms provided pertain to different aspects of shipping and logistics. "Delivered Duty Paid" refers to a situation where the seller is responsible for delivering the goods and paying all costs related to shipping and duties until they reach the destination. "Cost, Insurance, and Freight" relates to the costs that the seller incurs for shipping, insurance, and freight charges, but does not specify the point of title transfer. "Through Bill of Lading" is a document that covers the transport of goods across different modes of transportation and does not specifically pertain to the timing of the title transfer as