to use reasonable diligence to procure it, and in case This provision overrules Worsley v. Wood, 6 T. R., 710. Double insurance. Contribu tion in case of double insurance. ARTICLE XI DOUBLE INSURANCE. SECTION 1440. Double insurance. 1441. Contribution in case of double insurance. S1440. A double insurance exists where the same person is insured by several insurers separately in respect to the same subject and interest. See Mut. Fire Ins. Co. v. Hone, 2 N. Y., 235. S 1441. In case of double insurance, the insured may claim payment of a loss from any one of the insurers, who, on paying it, may require the others to contribute ratably thereto. Godin v. London Assur. Co., 1 Burr, 489; Lucas v. ARTICLE XII. RE-INSURANCE. Re-insurance, what. SECTION 1442. Re-insurance, what. 1443. Disclosure required. 1444. Re-insurance presumed to be against liability. S1442. A contract of re-insurance is one by which an insurer procures a third person to insure him against loss or liability by reason of such original insurance. required. S1443. Where an insurer obtains re-insurance, he Disclosure must communicate all the representations of the original insured, and also all the knowledge and information he possesses, whether previously or subsequently acquired, which is material to the risk. 2 Duer Ins., 429. ance pre S1444. A re-insurance is presumed to be a contract Re-insurof indemnity against liability, and not merely against sumed to damage. Ang. Ins., 138; Hastie v. De Peyster, 3 Cai., 190. be against liability. S 1445. The original insured has no interest in a Original contract of re-insurance. Herckenrath v. Am. Ins. Co., 3 Barb. Ch., 63; Carring- insured has no interest. CHAPTER II. MARINE INSURANCE. Those rules respecting marine insurance which are but ARTICLE I. Definition of marine insurance. II. Insurable interest. III. Concealment. IV. Representations. V. Implied warranties. VI. The voyage, and deviation. VII. Loss. VIII. Abandonment. IX. Measure of indemnity. ARTICLE I. DEFINITION OF MARINE INSURANCE. SECTION 1446. Marine insurance, what. insurance, S1446. Marine insurance is an insurance against Marine risks connected with navigation, to which a ship, what. cargo, freightage, profits, or other insurable interest in movable property, may be exposed during a certain voyage or a fixed period of time. 3 Kent Com., 203. Insurable interest in ship. Interest duced by ARTICLE II. INSURABLE INTEREST. SECTION 1447. Insurable interest in ship. 1449. Freightage, what. 1450, 1451. Expected freightage. 1453. Insurable interest of charterer. S 1447. The owner of a ship has in all cases an insurable interest in it, even when it has been char tered by one who covenants to pay him its value in case of loss. Hobbs v. Hannam, 3 Camp., 93. S1448. The insurable interest of the owner of a bottomry. ship hypothecated by bottomry is only the excess of its value over the amount secured by bottomry. Read v. Mutual Safety Ins. Co., 3 Sandf., 54; Smith Williams, 2 Cai. Cas., 110. S 1449. Freightage, in the sense of a policy of marine insurance, signifies all the benefit 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. The word "freightage" is used throughout this Code, instead of "freight," to signify the hire of a carrier, for the obvious reason that the latter word properly means the thing carried. The word "freightage" is given in Webster's, Worcester's and Bouvier's Dictionaries, in the sense in which it is here used. S1450. The owner of a ship has an insurable interest in expected freightage which he would have certainly earned but for the intervention of a peril insured against. 23 Pick., 409; 1 Metc., 141; 3 B. & P., 95. $1451. The interest mentioned in the last section Id. exists, in the case of a charter-party, when the ship has broken ground on the chartered voyage;1 and, if 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.2 Gordon v. Com. Ins. Co., 4 Denio, 362; Thompson v. . Taylor, 6 T. R., 478; Horncastle v. Suart, 7 East, "Forbes v. Aspinall, 13 East, 331; Montgomery v. Egging ton, 3 T. R., 362. interest in S 1452. One who has an interest in the thing from Insurable which profits are expected to proceed, has an insur- profits. able interest in the profits. Abbott v. Sebor, 3 Johns. Cas., 39. interest of S1453. The charterer of a ship has an insurable Insurable interest in it, to the extent that he is liable to be charterer. damnified by its loss. Oliver v. Greene, 3 Mass., 133; Bartlet v. Walker, 13 ARTICLE III. CONCEALMENT. SECTION 1454. Information must be communicated. 1455. Material information. 1456. Presumption of knowledge of loss. 1457. Concealments which only affect the risk in question. tion must be comm nicated. $1454. In marine insurance each party is bound Informa to communicate, in addition to what is required by section 1380, all the information which he possesses, material to the risk, except such as is mentioned in section 1381, and to state the exact and whole truth in relation to all matters that he represents, or upon inquiry assumes to disclose. 2 Duer Ins., 381, 388; Ang. Ins., 200; 2 Pars. Mar. L., Material information. Presump tion of of loss. S1455. In marine insurance, information of the belief or expectation of a third person, in reference to á material fact, is material. 2 Duer Ins., 388; Willis v. Glover, 1 B. & Pul. N. R., 14 S 1456. A person insured by a contract of marine knowledge insurance is presumed to have had knowledge, at the time of insuring, of a prior loss, if the information might possibly have reached him in the usual mode of transmission, and at the usual rate of communication. Conceal ments This is the rule which prevails in continental Europe; and its adoption here is recommended by Mr. Duer (2 Duer Ins., 433). S 1457. The effect of a concealment in a marine which only insurance, in respect to any of the following matters, affect the risk in question. is not to vitiate the entire contract, but merely to exonerate the insurer from a loss resulting from the risk concealed: 1. The national character of the insured; 2. The liability of the thing insured to capture and detention; 3. The liability to seizure from breach of foreign laws of trade; 4. The want of necessary documents; and, 5. The use of false and simulated papers. ARTICLE IV. Effect of intentional falsity. REPRESENTATIONS. SECTION 1458. Effect of intentional falsity. 1459. Representation of expectation. S1458. If a representation, by a person insured by a contract of marine insurance, is intentionally false in any respect, whether material or immaterial, the insurer may rescind the entire contract. Park on Ins., 405; Skin., 327. |