Reviewer in Insurance Law

REVIEWER IN INSURANCE LAW: TABLE OF CONTENTS
Sec. 179
Sec. 167]
REVIEWER IN INSURANCE LAW
SEC. 167]
SEC. 179
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policy, or otherwise separately insured, and recover for a total loss

thereof, when the cause of the loss is a peril insured against [SEC. 139]:
1.
If more than three-fourths thereof in value is actually lost, or

would have to be expended to recover it from the peril;
2.
If it is injured to such an extent as to reduce its value more than

three-fourths;
3.
If the thing insured is a ship, and the contemplated voyage

cannot be lawfully performed without incurring either an
expense to the insured of more than three-fourths the value of
the thing abandoned or a risk which a prudent man would not
take under the circumstances; or
4.
If the thing insured, being cargo or freightage, and the voyage

cannot be performed, nor another ship procured by the master,
within a reasonable time and with reasonable diligence, to
forward the cargo, without incurring the like expense or risk
mentioned in the preceding sub-paragraph. But freightage
cannot in any case be abandoned unless the ship is also
abandoned.
When a ship is prevented, at an intermediate port, from completing the

voyage, by the perils insured against, the liability of a marine insurer on
the cargo continues after they are thus reshipped. The insurer, however,
is not prevented from requiring additional premium if the hazard be
increased by this extension of liability. [SEC. 133]
A constructive total loss is one which gives to a person insured a right to
abandon, under Sec. 139. [SEC. 131]
In addition to this liability, a marine insurer is bound for damages,

expenses of discharging, storage, reshipment, extra freightage, and all
other expenses incurred in saving cargo reshipped pursuant Sec.
133, up to the amount insured. [SEC. 134]
A person insured by a contract of marine insurance may abandon the

thing insured, or any particular portion thereof separately valued by the
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General or gross average include all the damages and expenses which
are deliberately caused in order to save the vessel, her cargo, or
both at the same time, from real and known risk. [SEC. 811, CODE OF
COMMERCE]
Simple or particular averages shall be all the expenses and damages
caused to the vessel or to her cargo which have not inured to the
benefit and common profit of all the persons interested in the vessel
and her cargo. [SEC. 809, CODE OF COMMERCE]
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The measure of an insurable interest in property is the extent to which

the insured might be damnified by loss or injury thereof. [SEC. 17]
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An open policy is one in which the value of the thing insured is not
agreed upon, but is left to be ascertained in case of loss. [SEC. 60]
In estimating a loss under an open policy of marine insurance the
following rules are to be observed [SEC. 161]
1.
2.
3.
4.
The value of a ship is its value at the beginning of the risk,

including all articles or charges which add to its permanent
value or which are necessary to prepare it for the voyage
insured;
The value of the cargo is its actual cost to the insured, when
laden on board, or where the cost cannot be ascertained, its
market value at the time and place of lading, adding the
charges incurred in purchasing and placing it on board, but
without reference to any loss incurred in raising money for its
purchase, or to any drawback on its exportation, or to the
fluctuation of the market at the port of destination, or to
expenses incurred on the way or on arrival;
The value of freightage is the gross freightage, exclusive of
primage, without reference to the cost of earning it; and
The cost of insurance is in each case to be added to the value
thus estimated.
In fire insurance, the measure of indemnity in an insurance against

fire is the expense it would be to the insured at the time of the
commencement of the fire to replace the thing lost or injured in the
condition in which at the time of the injury. [SEC. 171]
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REVIEWER IN INSURANCE LAW: TABLE OF CONTENTS