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Select the expanded form of FPA as used in insurance

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Question: Select the expanded form of FPA as used in insurance

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  1.  Freight Payable Assured
  2.  Free of Particular Average
  3.  Fire Perils Added
  4.  Fixed Peripherals Added

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2. Free of Particular Average

The expanded form of FPA is 'Free of Particular Average' as used in insurance.

More info:

Free of Particular Average is an contract/agreement clause that removes the insurer's liability for partial losses.

The FPA clauses are mainly found in marine insurance policies.

It does not include liability for compensation for losses to the cargo or to the hull other than those caused by stranding, sinking, burning or collision.

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