In a(n) ________________ incoterm, sellers pay the cargo insurance and delivery of goods to the named port of destination and is the highest incoterm.

CIF stands for Cost, Insurance, and Freight, which is indeed one of the highest incoterms in terms of responsibilities assigned to the seller. Under CIF, the seller is responsible for covering the costs of the cargo, insurance, and freight necessary to transport the goods to the named port of destination. This means that the seller takes on a significant portion of the risk and expense associated with shipping, including arranging for insurance coverage during transit.

This contrasts with other incoterms like EXW (Ex Works), where the seller has minimal obligations and the buyer bears most of the responsibility for transportation costs and risks from the seller's premises onward. FOB (Free on Board) also places less responsibility on the seller than CIF, as the seller's obligation ends once the goods are loaded onto the vessel. DYT (which is not a standard incoterm) is likely included to test your knowledge of common terms. In summary, CIF represents a comprehensive delivery service by the seller, making it the highest incoterm regarding seller responsibilities.