🔍 Key Concepts

• Certificate of Financial Responsibility (COFR) purpose under U.S. oil pollution laws (OPA 90 and related regulations) • What types of costs are associated specifically with an oil spill or discharge of oil from a vessel • Difference between cargo loss, crew costs, and pollution liability

💭 Think About

• Ask yourself: Which option talks specifically about the kind of liability a government would be most concerned about if oil is accidentally released into the water? • Consider: Is a COFR about general operating expenses (like crew wages), cargo claims, or a very specific environmental risk? • Think: Does a COFR guarantee a particular insurance product (like P&I), or does it prove the vessel can pay for a certain type of damage or cleanup?

✅ Before You Answer

• Identify which choices refer directly to oil discharge / pollution and which refer to other types of loss or cost. • Check whether a COFR is the same thing as a P&I policy, or whether it is evidence that the vessel can cover certain statutory liabilities. • Eliminate any choices that focus only on cargo responsibility or normal voyage expenses rather than environmental liability.