CHAPTER I. MARINE INSURANCE. NOTE.-Those rules respecting marine insurance which are but applications of the principles of international law to this subject are not embraced in these provisions, as they are not within the scope of a municipal statute. ARTICLE I. Marine insurance defined. II. Insurable interest. III. Concealment. IV. Representations. V. Implied warranties. VI. The voyage, and deviation. VII. Loss. VIII. Abandonment. IX. Measure of interest. ARTICLE I. MARINE INSURANCE DEFINED. SECTION 1148. Definition. insurance § 1148. Marine insurance is an insurance against risks Marine' connected with navigation, to which a ship, cargo or freight, defined. freight money, profits, or other insurable interest in. movable property, may be exposed during a certain voyage or a fixed period of time. 3 Kent, 203. The term "freight" is used here, as in the title on Carriage, to signify the cargo or burden, and the Insurable interest in ship. In freight money. Id. Meaning of freight money. Insurable interest in profits. ARTICLE II. INSURABLE INTEREST. SECTION 1149. Insurable interest in ship. 1150, 1151. In freight money. 1152. Freight money, what. 1154. Interest of charterer. § 1149. The owner of a ship has in all cases an insurable interest in it, even when he has chartered it to one who covenants to pay him her value in case of loss. Hobbs v. Hannam, 3 Camp., 93. § 1150. The owner of a ship has an inchoate interest in expected freight money, which he may insure when he would certainly have earned the same but for the intervention of the perils insured against. 23 Pick., 409; 1 Metc., 141; 3 B. & P., 95. § 1151. This inchoate interest exists in the case of a charter-party, when the ship has broken ground on the chartered voyage; and, when a price is to be paid for the carriage of goods, 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.1 § 1152. Freight money, in the sense of a policy of marine insurance, signifies all the benefit derived by the owner, either from chartering the ship or from employing it to the carriage of his own goods or those of others. § 1153. One has an insurable interest in profits who has an interest in the subject from which the profits are expected to proceed. Abbott v. Labor, 3 Johns. Cas., 39. interest of § 1154. The charterer of a ship has an insurable interest Insurable in it to the extent that he is liable to be damnified by its charteror. loss. Oliver v. Green, 3 Mass., 133; 16 id., 294; Bartlett v. ARTICLE III. CONCEALMENT. SECTION 1155. Information must be communicated. 1156. Information. 1157. Presumption of knowledge. 1158. Concealment. 1159. What need not be disclosed. 1160. Matters which each party is bound to know. 1161. Waiver. 1162. Concealments which are material only in case of loss. Information must be cated. § 1155. In marine insurance each party is bound to communicate, in addition to what is required by section communi 1100, all information he possesses, material to the risk, except such as is mentioned in section 1159, and to state the exact and whole truth in relation to all matters that he represents, or upon inquiry discloses. 2 Duer Ins., 381, 388; Ang. Ins., 200. tion. 1156. In marine insurance information of the belief or Informa expectation of a third person, in reference to a material fact, is material. 2 Duer Ins., 388. tion of 1157. The insured is presumed to have had knowledge, Presumpat the time of insuring, of a prior loss, if the information knowledge might possibly have reached him in the usual mode of transmission and at the usual rate of communication. This is the rule which prevails in continental Europe; and its adoption here is recommended by Mr. Duer. Vol. 2, p. 433. of loss. ment. § 1158. A neglect to communicate that which is material Conceal is called a concealment. A concealment, wh ther intentional or not, entitles the injured party to avoid the policy. Matters which need § 1159. Neither party is bound to communicate the follow not be com- ing matters, except in answer to the inquiries of the other: municated without inquiry. Matters which each know. 1. Those which the other knows;' 2. Those which in the exercise of ordinary care, the other ought to know, and of which the former has no reason to suppose he is ignorant;' 3. Those of which he waives communication; 4. Those which prove or tend to prove the existence of a risk which a warranty excludes, and that are not otherwise material; 5. Those which relate to a risk excepted from the policy, and that are not otherwise material.' 'This rule is usually stated with the addition that facts which the insurer may be presumed to know need not be communicated; but the true rule seems to be that though the insured trusts to his presumption that the insurer knows facts which he is not bound to know, he does so at his peril. In other words, the presumption is a mere rule of evidence; one method of showing that he had actual knowledge. 2 Duer Ins., 563. * Id., 573, 580. § 1160. Each party is bound to know all the general is bound to causes that are open to his inquiry, equally with that of the other, that may affect either the political or material perils contemplated; and all general usages of trade. Waiver of communications. Conceal ments 2 Duer Ins., 560. § 1161. The right to a communication of material facts may be waived either by the terms of the policy, or by the neglect of the party to make inquiries as to such facts where they are distinctly implied in other facts communicated. Id. § 1162. The effect of a concealment in respect to any of which only the following matters is not to vitiate the entire contract, but merely to exonerate the insurer from a loss resulting from the risk concealed: affect the risk in question. 1. National character of the insured; 2. Liability of the thing insured to capture and detention; 3. Liability to seizure from breach of foreign laws of trade; proted. § 1163. The words of a representation are to be under- How interstood in their plain and obvious meaning. If a representation is so ambiguous in its terms that it may be understood with equal propriety in two senses, and the person to whom it is made omits to seek an explanation, he is bound by it in the sense intended by the person who made it. 2 Duer Ins., 661. tion as to § 1164. A representation as to the future is to be deemed Representa a promise, unless it appears that it was merely a statement future. of belief or expectation. 2 Duer Ins., 664. affect § 1165. A representation cannot be allowed to qualify How may an express provision in the policy; but it may qualify an policy. implied warranty. 2 Duer Ins., 671. § 1166. A representation once made is binding; but it may be altered or withdrawn before the insurance is effected. 2 Duer Ins., 679. When may drawn. be with § 1167. The completion of the policy is the time to Time intenwhich the representation is to be taken to refer. 2 Duer Ins., 679, ded by representation. |