A vessel has been damaged by fire. The survey shows the cost of repairs will exceed the value of the repaired vessel. This is an example of a(n) __________.

Correct Answer: Option B — constructive total loss

A constructive total loss occurs when the cost of repairing a damaged vessel exceeds its repaired value. Under marine insurance principles, the vessel is considered economically lost, even if physically intact, allowing the owner to claim the full insured value from underwriters after abandoning the wreck to them.