Article 43p. 43

COMMERCIAL LAWS NEGOTIABLE INSTRUMENTS, CORPORATION, INSURANCE, TRANSPORTATION, BANKING

refusal was not induced by any just grounds of disbelief in

the facts necessary to be certified or testified.

TITLE 11 Double Insurance

SECTION 95. A double insurance exists where the

same person is insured by several insurers separately in

respect to the same subject and interest.

SECTION 96. Where the insured in a policy other than

life is over insured by double insurance.

(a) The insured, unless the policy otherwise provides,

may claim payment from the insurers in such order as he

may select, up to the amount for which the insurers are

severally liable under their respective contracts;

(b) Where the policy under which the insured claims

is a valued policy, any sum received by him under any

other policy shall be deducted from the value of the

policy without regard to the actual value of the subject

matter insured;

(c) Where the policy under which the insured claims

is an unvalued policy, any sum received by him under any

policy shall be deducted against the full insurable value,

for any sum received by him under any policy;

(d) Where the insured receives any sum in excess of

the valuation in the case of valued policies, or of the

insurable value in the case of unvalued policies, he must

hold such sum in trust for the insurers, according to their

right of contribution among themselves;

(e) Each insurer is bound, as between himself and the

other

insurers,

to

contribute

ratably

to

the

loss

in

proportion to the amount for which he is liable under his

contract.

TITLE 12 Reinsurance

SECTION 97. A contract of reinsurance is one by which

an insurer procures a third person to insure him against

loss or liability by reason of such original insurance.

SECTION 98. Where an insurer obtains reinsurance,

except under automatic reinsurance treaties, he must

communicate

all

the representations of the original

insured, and also all the knowledge and information he

possesses, whether previously or subsequently acquired,

which are material to the risk.

SECTION 99. A reinsurance is presumed to be a

contract of indemnity against liability, and not merely

against damage.

SECTION 100. The original insured has no interest in a

contract of reinsurance.

CHAPTER II Classes of Insurance

TITLE 1 Marine Insurance

SUB-TITLE 1-A Definition

SECTION 101. Marine Insurance includes:

(a) Insurance against loss of or damage to:

(1) Vessels, craft, aircraft, vehicles, goods, freights,

cargoes,

merchandise,

effects, disbursements, profits,

moneys, securities, choses in action, instruments of debts,

valuable papers, bottomry, and respondentia interests

and all other kinds of property and interests therein, in

respect to, appertaining to or in connection with any and

all risks or perils of navigation, transit or transportation, or

while

being

assembled,

packed,

crated,

baled,

compressed or similarly prepared for shipment or while

awaiting

shipment,

or

during

any

delays,

storage,

transhipment, or reshipment incident thereto, including

war risks, marine builder's risks, and all personal property

floater risks;

(2)

Person

or

property

in

connection

with

or

appertaining

to

a

marine,

inland

marine, transit or

transportation insurance, including liability for loss of or

damage

arising

out

of

or

in

connection

with

the

construction, repair, operation, maintenance or use of the

subject matter of such insurance (but not including life

insurance or surety bonds nor insurance against loss by

reason of bodily injury to any person arising out of

ownership, maintenance, or use of automobiles);

(3) Precious stones, jewels, jewelry, precious metals,

whether in course of transportation or otherwise; and

(4) Bridges, tunnels and other instrumentalities of

transportation and communication (excluding buildings,

their

furniture

and

furnishings,

fixed

contents

and

supplies held in storage); piers, wharves, docks and slips,

and

other

aids

to

navigation

and

transportation,

including dry docks and marine railways, dams and

appurtenant facilities for the control of waterways.

(b)

Marine

protection

and

indemnity

insurance,

meaning insurance against, or against legal liability of the

insured

for

loss,

damage,

or

expense

incident

to

ownership,

operation,

chartering,

maintenance,

use,

repair,

or

construction

of

any

vessel,

craft

or

instrumentality in use of ocean or inland waterways,

including liability of the insured for personal injury, illness

or death or for loss of or damage to the property of

another person.

SUB-TITLE 1-B Insurable Interest

SECTION 102. The owner of a ship has in all cases an

insurable interest in it, even when it has been chartered

by one who covenants to pay him its value to case of loss:

Provided, That in this case the insurer shall be liable for

only that part of the loss which the insured cannot

recover from the charterer.

SECTION 103. The insurable interest of the owner of

the ship hypothecated by bottomry is only the excess of

its value over the amount secured by bottomry.

SECTION 104. Freightage, in the sense of a policy of

marine insurance, signifies all the benefits derived by the

owner, either from the chartering of the ship or its

employment for the carriage of his own goods or those of

others.

SECTION 105. The owner of a ship has an insurable

interest in expected freightage which according to the

ordinary and probable course of things he would have

earned but for the intervention of a peril insured against

or other peril incident to the voyage.

SECTION 106. The interest mentioned in the last

section exists, in case of a charter party, when the ship

has broken ground on the chartered voyage. If a price is

to be paid for the carriage of goods it exists when they are

actually on board, or there is some contract for putting

them on board, and both ship and goods are ready for

the specified voyage.

SECTION 107. One who has an interest in the thing

from which profits are expected to proceed has an

insurable interest in the profits.

SECTION 108. The charterer of a ship has an insurable

interest in it, to the extent that he is liable to be

damnified by its loss.

SUB-TITLE 1-C Concealment

SECTION 109. In marine insurance, each party is

bound to communicate, in addition to what is required by

Section

28,

all the information which he possesses,

material to the risk, except such as is mentioned in

Section 30, and to state the exact and whole truth in

relation to all matters that he represents, or upon inquiry

discloses or assumes to disclose.

SECTION 110. In marine insurance, information of the

belief or expectation of a third person, in reference to a

material fact, is material.

© Compiled by RGL

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