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however, That in the case of a construc- determined by the court shall be the tion subsidized vessel, for the period of amount which would have been payable insurance prior to requisition for title under section 802 in the case of requisior use, the valuation so determined shall tion for title: And provided further, That be reduced by such proportion as the in the event of an election by the insured amount of construction subsidy paid with to reject the stated valuation fixed by respect to the vessel bears to the entire the Secretary of Commerce and to sue in construction cost and capital improve- the courts, the amount of the judgment ments thereof (excluding the cost of will be payable without regard to the national defense features), and for the limitations contained in the twelfth period of insurance after requisition for paragraph under the heading Maritime use the valuation so determined shall not Activities in title I of the Department of exceed the amount which would be pay

Commerce and Related Agencies Approable under section 802 in the case of priation Act, 1956, in the tenth pararequisition for title or use: Provided, graph under the heading "Maritime Acfurther, That the insured shall have the tivities” in title III of the Department of right within sixty days after the attach- State, Justice, and Commerce, and the ment of the insurance under said policy, United States Information Agency Apor within sixty days after determination propriation Act, 1955, in the eleventh of such valuation by the Secretary of paragraph under the heading “Maritime Commerce, whichever is later, to reject Activities” in title III of the Department such valuation, and shall pay, at the rate of Justice, State, and Commerce Approprovided for in said policy, premiums priation Act, 1954, the tenth paragraph upon such asserted valuation as the in- under the heading “Operating Differensured shall specify at the time of re- tial Subsidies" in title II of the Indejection, but such asserted valuation shall pendent Ofices Appropriation Act, 1953, not operate to the prejudice of the Gov- the corresponding paragraphs of the Inernment in any subsequent action on the dependent Offices Appropriation Act, policy. In the event of the actual or con- 1952, and the Third Supplemental Apstructive total loss of the vessel, if the propriation Act, 1951, although the exinsured has not rejected such valuation cess of any amounts advanced on account the amount of any claim therefor which of just compensation over the amount of is adjusted, compromised, settled, ad- the court judgment will be required to be judged, or paid shall not exceed such refunded. In the event of such court stated amount, but if the insured has so determination, premiums under the rejected such valuation, the insured shall policy shall be adjusted on the basis of be paid as a tentative advance only, 75 the valuation as finally determined and per centum of such valuation so de- of the rate provided for in said policy. termined by the Secretary of Commerce The "stated valuation" of the vessel inand shall be entitled to sue the United sured refers to the vessel as defined in States in a court having jurisdiction of § 309.6(f) of this chapter (Maritime such claims to recover such valuation as Administration General Order 82, as would be equal to the just compensation amended). which such court determines would have (b) Insurance risks covered by the been payable if the vessel had been req- terms of the standard form of war risk uisitioned for title under section 902(a) hull insurance policy (8 308.107), except at the time of the attachment of the in- damage to or actual or constructive total surance under said policy: Provided, loss of the vessel insured as set forth in however, That in the case of a construc- paragraph (a) of this section and loss of tion-subsidized vessel, the valuation de- disbursements (limited to consumable termined by the court as such just com- and subsistence stores, slop chests, bar pensation for any period of insurance stock and bunker fuel lost as & conseprior to actual requisition for title or use quence of the actual or constructive total of the vessel shall be reduced by such loss of the vessel insured) as set forth in proportion as the amount of construction paragraph (c) of this section and identisubsidy paid with respect to the vessel fied as disbursements, shall be insured bears to the entire construction cost and for an amount not in excess of the "sum capital improvements thereof (excluding insured” as referred to in said policy. the cost of national defense features), (c) Disbursements shall be insured as and for any period of insurance after authorized under section 1203(C), Title actual requisition for use, the valuation XII, Merchant Marine Act, 1936, as

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amended, and shall be limited to consumable and subsistence stores, slop chests, bar stock and bunker fuel. Disbursements insurance shall be optional and is insurance additional to the war risk hull insurance provided under this subpart, and payment of claim shall be limited to the actual value of the disbursements lost as a consequence of the actual or constructive total loss of the vessel insured. $ 308.104 Additional war risk insurance.

Owners or charterers may obtain, on ar. excess basis, additional war risk in. surance in such amounts as desired and such insurance shall not inure to the benefit of the Maritime Administrator as underwriter. $ 308.105 Reporting casualties and fil

ing claims. All casualties occurring after insurance under a binder has attached shall be reported promptly to the Underwriting Agent that issued the binder and all claim documents shall likewise be filed with such Underwriting Agent, but payment of the amounts due in settlement of claims will be made by the Maritime Administrator. § 308.106 Standard form of war risk

hull insurance interim binder and optional disbursements insurance

endorsement. (a) The following is the standard form of war risk hull insurance interim binder: Form MA-184 (Revised 5–61)

UNITED STATES OF AMERICA

(Gross tonnage)

(Date built) Sum insured

dollars ($- ---), but in the event of damage to or actual or constructive total loss of the vessel, the insured value will be not in excess of $-----(*), which latter amount is the stated valuation of the vessel determined by the Secretary of Commerce in accordance with section 1209(a), Title XII of Merchant Marine Act, 1936, as amended. This insurance does not cover loss of disbursements as a consequence of the actual or constructive total loss of said vessel. It is understood that, with respect to damage to or actual or constructive total loss of the vessel, this insurance shall not exceed the "sum insured" or the "stated valuation”, whichever is the lesser amount.

Attaching automatically upon and simultaneously with the outbreak of war (whether there be a declaration of war or not) between any of the following countries: United States of America, United Kingdom, France, the Union of Soviet Socialist Republics, the People's Republic of China; upon the occurrence of any prior hostile act or acts by any of the said countries resulting in such outbreak of war and occurring within a period of 90 days preceding such outbreak of war.

Terminating thirty (30) days after the outbreak of war (whether there be a declaration of war or not) between any of the aforesaid countries.

Assured to have privilege of deferring attachment by giving written or telegraphic notice to the Underwriting Agent prior to attachment of risk.

This binder shall automatically expire at midnight, April 7, 1967, G.m.t., unless insurance hereunder has attached prior to that date.

Warranties, terms, and conditions: warranted free from any claim for loss, damage or expense covered under any commercial policy in effect for the benefit of the assured.

Warranted free from any claim for loss, damage or expense which is or could be covered by a commercial war risk policy containing the American Institute War Risk and Strikes and Automatic Termination and Cancellation Clauses (Time) — Hulls – (March 7, 1961).

Warranted, as to a vessel in any eligible category of the application, that at all times during the binder period or any period of insurance attaching hereunder, the vessel will

DEPARTMENT OF COMMERCE

MARITIME ADMINISTRATION

WAR RISK HULL INSURANCE-INTERIM BINDER

NO. WRH

The United States of America, represented by the Maritime Administrator, acting for the Secretary of Commerce, in consideration of the binding fee and premium provided for herein, hereby insures, in accordance with applicable provisions of law and subject to all limitations thereof, particularly Title XII of Merchant Marine Act, 1936, as amended, against Hull War Risks only, subject to the terms, conditions, warranties and representations stated herein or incorporated by reference: Assured Owner Loss, if any, payable to

or order

*If this valuation is not inserted when the binder is issued, it will be published in the FEDERAL REGISTER pursuant to Maritime Administration General Order 82 as amended from time to time.

comply with Department of Commerce, Transportation Orders T-1 and T-2 or any modification thereof so long as they remain in force.

Warranted, as to a vessel in any eligible category of the application, that, without prior approval of the Maritime Administration, the vessel will not, at any time during the binder period or any period of insurance attaching hereunder, be chartered for a period of longer than six (6) months, or for a voyage or voyages the duration of which will probably exceed six (6) months, to any person not a citizen of the United States, nor be chartered to such a non-citizen under a demise or bareboat form of charter, nor be chartered to such a non-citizen for the carriage of cargoes of any kind to or from any of the countries listed in Maritime Administration General Order 59 or any modification thereof so long as it remains in force, or for use in the fisheries.

Warranted further, as to a vessel in category (a) of the application, that at and from the date of Issuance of this binder and for and during the term of any insurance attaching hereunder, such vessel is eligible within its category, and if at any time during the binder period or after Insurance attaches such vessel shall cease to be eligible within Its category, this binder and any insurance provided hereunder shall automatically terminate at the time of such change, without retura of binding fee or premium, unless the Maritime Administration agrees otherwise; and as to a vessel in category (b) (1) or (b) (2) of the application that such vessel will maintain Its eligibility within its applicable category at all times from and after the issuance of this interim binder, and will be made available to the U.S. Government upon request in the event of national emergency, pursuant to the terms of the Contract of Commitment executed by the assured; and as to a vessel in category (c) of the application that at all times such vessel will remain in the approved service which the Maritime Administrator found to be in the Interest of the national economy or the national defense of the United States; and in the event of the breach of any warranty contained in this paragraph, such binder and any insurance attaching thereunder. shall automatically terminate at the time of such breach, without return of binding fee or premium, unless the Maritime Administration agrees otherwise.

There shall be deemed to be incorporated herein (a) any other warranties of the appli. cant (express or implied) and all representations and agreements which are made a part of the application, and (b) all of the terms, conditions and warranties contained in the war risk hull insurance policy set forth in $ 308.107 hereof (Part 308, Title 46, Code of Federal Regulations). To the extent there is inconsistency between the terms of such war risk bull insurance policy and the terms of this binder including the warranties, agreements and representations of

the applicant, the terms of the binder together with the warranties, agreements and representations of applicant shall prevall.

Premium: Rate to be fixed promptly after the happening of the event causing the "American Institute War Risk and Strikes and Automatic Termination and Cancellation Clauses (Time)-Hulls—(March 7, 1961)” of any war risk policies to become operative and the premium shall be payable within ten days after receipt of notice of the amount thereof by the assured. Premium shall be paid to the Underwriting Agent that issued the binders by check payable to the order of "Maritime Adm.Commerce."

Privilege is granted to effect, on an excess basis, additional war risk Insurance, which insurance shall not inure to the benefit of the Maritime Administrator as underwriter.

Claims: Casualties arising after attachment of insurance hereunder shall be reported promptly to the Underwriting Agent and all claim documents shall be likewise illed with such Underwriting Agent but payment of the amounts due in settlement of claims will be made by the Maritime Administrator.

The Underwriting Agent does not, by countersigning this binder or in any other manner, warrant Its own authority, or the authority of the Maritime Administrator, acting for the Secretary of Commerce, to issue this instrument, but acts solely under the power conveyed to the Underwriting Agent by the Agreement made with the Maritime Administrator, acting for the Secretary of Commerce.

UNITED STATES OF AMERICA, By Maritime Administrator,

acting for the Secretary of Commerce.

(Maritime Administrator) Countersigned at New York, N.Y., this day of

---------- 19... AMERICAN WAR RISK AGENCY, By (Authorized underwriting

agent) Not valid unless countersigned by an authorized underwriting agent.

(b) The following is the standard form of endorsement for optional war risk disbursements insurance, obtainable only as additional insurance to the war risk hull insurance interim binder: Form MA-184A (5-61)

UNITED STATES OF AMERICA

OPTIONAL WAR RISK DISBURSEMENTS

INSURANCE ENDORSEMENT

Attached to and forming part of Interim Binder No. WRH

This endorsement Insures, as additional coverage, disbursements of the assured on board the vessel named in the standard form of War Risk Hull Insurance Interim Binder, limited to consumable and subsistence stores, slop chests, bar stock and bunker fuel in the total amount of

dollars ($------), against the risks of loss as a consequence of the actual or constructive total loss of the vessel insured, subject to the terms, conditions and warranties set forth in the interim binder to which this endorsement is attached.

It is understood this Insurance, made available as authorized under section 1203(C), Title XII, of Merchant Marine Act, 1936, as amended, is additional to the coverage provided in the standard form of War Risk Hull Insurance Interim Binder.

Further, it is understood and agreed that in the event of loss, payment of claim shall be limited to the actual value of the disbursements lost as a consequence of the actual or constructive total loss of the vessel insured. but sald claim shall not exceed the amount of Insurance provided in this endorsement.

UNITED STATES OF AMERICA, By Maritime Administrator,

acting for the Secretary of Commerce.

this Policy shal! thereupon become cancelled from time of such change in ownership or management, charter or requisition; provided, however, that in the case of an involuntary temporary transfer by requisition or otherwise, without the prior execution of any written agreement by the Assured, such cancellation shall take place fifteen days after such transfer; and provided further that if the Vessel has cargo on board and has already sailed from her loading port, or is at sea in ballast, such cancellation shall be suspended until arrival at final port of discharge 11 with cargo or at port of destination is in ballast. This insurance shall not inure to the benefit of any such charterer or transferee of the Vessel, and if a loss payable hereunder should occur between such transfer and such cancellation the Underwriter shall be subrogated to all the rights of the Assured against the transferee, by reason of such transfer, in respect of all or part of such loss as is recoverable from the transferee and in the proportion which the respective amounts insured bear to the insured value. A pro rata daily return of net premium shall be made. The foregoing provisions with respect to cancellation in the event of change in ownership or management, charter or requisition shall apply even in the case of insurance "for account of whom it may concern."

Loss, if any (excepting claims required to be paid to others under the Collision Clause), payable to

or order. Sum insured

dollars (8------), but in the event of damage to or actual or constructive total loss of the vessel, the insured value will be not in excess of $.-..-.', which latter amount is the stated valuation of the vessel determined by the Secretary of Commerce in accordance with section 1209(a), Title XII of Merchant Marine Act, 1936, as amended. This insurance does not cover loss of disbursements as a consequence of the actual or constructive total loss of said vessel. It is understood that, with respect to damage to or actual or constructive total loss of the vessel, this insurance shall not exceed the "sum insured" or the "stated valuation," whichever is the lesser amount. At and from the --- day of

time to the .. day of 19..,

time. Provided, however, Should the Vessel at the expiration of this Policy be at sea, or in distress, or at & port of refuge or of call, she shall, provided previous notice be given to the Underwriter, be held covered at a pro rata monthly premium to her port of destination

On the vessel called the Official No. (or by whatsoever name or

(Maritime Administrator) Countersigned at New York, N.Y., this day of

19... AMERICAN WAR RISK AGENCY, By (Authorized underwriting

agent) (G.O. 75, 20 Rev., 26 F.R. 4541, May 26, 1961, as amended by Amdt. 10, 31 F.R. 1201, Jan. 29, 1966; Amdt. 14, 31 F.R. 12523, Sept. 22, 1966) $ 308.107 Standard form of war risk

hull insurance policy. The following is the standard form of war risk hull insurance policy: Form MA-240 (Revised 5–61)

Policy No. HUNITED STATES OF AMERICA Represented by the Maritime Administrator, acting for the Secretary of Commerce (sometimes hereinafter called the Underwriter), by this policy of insurance, in accordance with applicable provisions of law and subject to all limitations thereof, does make insurance and cause to be insured:

for account of ------ -- but subject to the following provisions with respect to change of ownership, etc.:

In the event of any change, voluntary or otherwise, in the ownership of the Vessel or 1 the Vessel be placed under new management or be chartered on a bareboat basis or requisitioned on that basis, then, unless the Underwriter agrees thereto in writing,

19.-,

*If this valuation is not inserted when the binder is issued, it will be published in the FEDERAL REGISTER pursuant to Maritimo Administration General Order 82 as amended from time to time.

names the said Vessel is or shall be called).

The said Vessel, for so much as concerns the Assured, by agreement between the Assured and the Underwriter in this Policy, is and shall be valued at as follows: Hull, tackle, apparel, pas

senger fittings, equipment, stores, ordnance, munitions, boats and

other furniture Bollers, machinery, refrig

erating machinery and insulation, motor generators and other electrical machinery, and everything connected therewith

Donkey bollers, winches, cranes, windlasses and steering gear shall be deemed to be & part of the hull and not of the machinery.

Special Conditions and Warranties: Unless physically deleted by the Underwriters, the following warranty shall be paramount and shall supersede and nullify any contrary provision of the Policy:

F. C. & S. CLAUSE Notwithstanding anything to the contrary contained in the Policy, this Insurance is warranted free from any claim for loss, damage or expense caused by or resulting from capture, seizure, arrest, restraint or detainment, or the consequences thereof or of any attempt thereat, or any taking of the Vessel, by requisition or otherwise, whether in time of peace or war and whether lawful or otherwise; also from all consequences of hostilities or warlike operations (whether there be a declaration of war or not), but the foregoing shall not exclude collision or contact with aircraft, rockets or similar missiles, or with any fixed or floating object (other than a mine or torpedo), stranding, heavy weather, fire or explosion unless caused directly (and independently of the nature of the voyage or service which the vessel concerned or, in the case of a collision, any other vessel involved therein, is performing) by a hostile act by or against a belligerent power, and for the purpose of this warranty "power" includes any authority maintaining naval, military or air forces in association with a power; also warranted free, whether in time of peace or war, from all loss, damage or expense caused by any weapon of war employing atomic or nuclear fission and/or fusion or other reaction or radioactive force or matter.

Further warranted free from the consequences of civil war, revolution, rebellion, Insurrection, or civil strife arising therefrom, or piracy.

If war risks are hereafter insured by endorsement on the Policy, such endorsement shall supersede the above warranty only to the extent that their terms are inconsistent and only while such war risk endorsement remains in force.

Held covered in case of any breach of warranty as to cargo, trade, locality or date of sailing, provided notice be given and any additional premium required be agreed immediately after receipt of advices of breach or proposed breach by Owners.

The Underwriters to be paid in consideration of this insurance

Dollars being at th rate of

percent. In event of non-payment of premium thirty days after attachment this policy may be cancelled by the Underwriter upon five days written notice being given the Assured. Such proportion of the premium, however, as shall have been earned up to the time of such cancellation shall be due and payable; but in the event of Total or Constructive Total Loss occurring prior to cancellation full annual premium shall be deemed earned. To return

cents percent net for each uncommenced month 11 it be mutually agreed to cancel this Policy. As follows for each consecutive 30 days the Vessel may be laid up in port, viz:

Without With cargo on cargo on

board board 1. Under repair.-- --¢% net --% net 2. Not under re- ¢ % net --¢ % net

pair. For the purpose of this clause a Vessel loading or discharging cargo shall be considered as "with cargo on board".

Provided always: (a) that in no case shall a return be allowed when the within named vessel is lying in a roadstead or in exposed and unprotected waters.

(b) that in the event of a return for special trade, or any other reason, being recoverable, the above rates of return of premium shall be reduced accordingly. And arrival.

In the event of the Vessel being laid up in port for a period of 30 consecutive days, a part only of which attaches to this Policy, it is hereby agreed that the laying up period, in which either the commencing or ending date of this Policy falls, shall be deemed to run from the first day on which the Vessel is laid up and that on this basis the Underwriter shall pay such proportion of the return due in respect of a full period of 30 days as the number of days attaching hereto bear to thirty. Additional insurances as follows

are permitted :

(a) Disbursements, managers' commissions, profits or excess or increased value of hull and machinery, and/or similar interests however described, and freight (including chartered freight or anticipated freight) insured for time. A sum not exceeding in the aggregate 25 percent of the insured value of the Vessel.

(b) Freight or hire, under contracts for voyage, A sum not exceeding the gross freight or hire for the current cargo passage

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