ARTICLE 5. Loss in Marine Insurance [1960. - 1997.]

Article 5 enacted by Stats. 1935, Ch. 145.

§§ 1960–1997 · 38 sections

• § 1960 A loss is either total or partial.
• § 1961 A total loss is either actual or constructive.
• § 1962 An actual total loss is caused by: (a) A total destruction of the subject matter of insurance. (b) The loss of the subject matter by sinking, or by being…
• § 1963 A constructive total loss is one which gives to a person insured a right to abandon, under section 1971.
• § 1964 An actual loss may be presumed from the continued absence of a ship without being heard of. The length of time which is sufficient to raise this presumption…
• § 1965 When a ship is prevented, at an intermediate port and by the perils insured against, from completing the voyage, the master shall make every exertion to…
• § 1966 In addition to the liability mentioned in section 1965, a marine insurer is liable, up to the amount insured, for damages, expenses of discharging, storage,…
• § 1967 Upon an actual total loss, the insured is entitled to payment without notice of abandonment.
• § 1968 Where it has been agreed that an insurance upon a particular subject matter, or class of subject matter, is to be free from particular average, a marine…
• § 1969 When insurance is confined in its terms to an actual total loss, it does not cover a constructive total loss, but it does cover any loss which necessarily…
• § 1970 Abandonment, in marine insurance, is the act of the insured by which, after a constructive total loss, he declares the relinquishment to the insurer of the…
• § 1971 In marine insurance, after abandonment of the subject matter of insurance or of any particular portion thereof which is separately valued by the policy or…
• § 1972 An abandonment can not be either partial or conditional.
• § 1973 An abandonment can be made only at a time limited by all of the following: (a) Within a reasonable time after the information of the loss. (b) After the…
• § 1974 Where the information upon which an abandonment has been made proves incorrect, or the subject matter of insurance is so far restored when the abandonment is…
• § 1975 Abandonment is made by giving oral or written notice thereof to the insurer.
• § 1976 A notice of abandonment shall be explicit, and shall specify the particular cause of the abandonment, but need state only enough to show that there is probable…
• § 1977 An abandonment can be sustained only upon the cause specified in the notice thereof.
• § 1978 An abandonment is equivalent to a transfer to the insurer of the insured’s interest, with all the chances of recovery and indemnity.
• § 1979 Whenever a marine insurer pays for a loss as if it were an actual total loss, he is entitled to whatever remains of the subject matter insured, or its proceeds…
• § 1980 Upon an abandonment, acts done subsequent to the loss and in good faith by persons who at the time were the insured’s agents in respect to the subject matter…
• § 1981 An acceptance of an abandonment is not necessary to the rights of the insured, and is not to be presumed from the mere silence of the insurer at the time of…
• § 1982 The acceptance of an abandonment, whether express or implied, is conclusive upon the parties and admits the loss and the sufficiency of the abandonment.
• § 1983 An abandonment once made and accepted is irrevocable, unless the ground upon which it was made proves to be unfounded.
• § 1984 On an accepted abandonment of a ship, freightage earned previous to the loss belongs to the insurer of the freightage; but freightage subsequently earned…
• § 1985 If an insurer refuses to accept a valid abandonment, he is liable as upon an actual total loss, after deducting from the amount of the loss any proceeds of the…
• § 1986 If an insured omits to abandon, he may nevertheless recover his actual loss.
• § 1987 (a) A valuation fraudulent in fact entitles a marine insurer to rescind the contract. (b) When the subject matter has been hypothecated by bottomry or…
• § 1988 In a case of partial loss, a marine insurer is liable only for such proportion of the amount insured by him as the loss bears to the value of the whole…
• § 1989 Where profits are separately insured in marine insurance, in case of loss the insured is entitled to recover that proportion of such profits which the value of…
• § 1990 In case of a valued policy of marine insurance on freightage or cargo, if only a part of the subject matter is exposed to risk, the valuation applies only in…
• § 1991 When profits are valued and insured by marine insurance, a loss of them is conclusively presumed from a loss of the property out of which they were expected to…
• § 1992 In estimating a loss under an open policy of marine insurance, the following rules are to be observed: (a) The value of a ship is its value at the beginning of…
• § 1993 If cargo insured against partial loss arrives at the port of destination in a damaged condition, the loss of the insured is computed as follows: (a) Deduct the…
• § 1994 A marine insurer is liable for all the expense attendant upon a loss which forces the ship into port to be repaired. Where it is agreed that the insured may…
• § 1995 In marine insurance, when an insured is required to make a contribution in respect to the subject matter of insurance toward a general average loss, if the…
• § 1996 In marine insurance, where an insured has a demand against others for contribution, he may claim the whole loss from the insurer, subrogating the insurer to…
• § 1997 In the case of a partial loss of a ship or its equipments, the old materials are to be applied towards payment for the new. Whether the ship is new or old, a…