California Insurance Code ARTICLE 5 - Loss in Marine Insurance

• Section 1960.
  A loss is either total or partial.(Enacted by Stats. 1935, Ch. 145.)
• Section 1961.
  A total loss is either actual or constructive.(Enacted by Stats. 1935, Ch. 145.)
• Section 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...
• Section 1963.
  A constructive total loss is one which gives to a person insured a right to abandon, under section 1971.(Enacted by Stats. 1935, Ch. 145.)
• Section 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...
• Section 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...
• Section 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,...
• Section 1967.
  Upon an actual total loss, the insured is entitled to payment without notice of abandonment.(Enacted by Stats. 1935, Ch. 145.)
• Section 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,...
• Section 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...
• Section 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...
• Section 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...
• Section 1972.
  An abandonment can not be either partial or conditional.(Enacted by Stats. 1935, Ch. 145.)
• Section 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...
• Section 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...
• Section 1975.
  Abandonment is made by giving oral or written notice thereof to the insurer.(Enacted by Stats. 1935, Ch. 145.)
• Section 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...
• Section 1977.
  An abandonment can be sustained only upon the cause specified in the notice thereof.(Enacted by Stats. 1935, Ch. 145.)
• Section 1978.
  An abandonment is equivalent to a transfer to the insurer of the insured’s interest, with all the chances of recovery and indemnity.(Enacted by Stats. 1935,...
• Section 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...
• Section 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...
• Section 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...
• Section 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.(Enacted by...
• Section 1983.
  An abandonment once made and accepted is irrevocable, unless the ground upon which it was made proves to be unfounded.(Enacted by Stats. 1935, Ch. 145.)
• Section 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 belongs...
• Section 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...
• Section 1986.
  If an insured omits to abandon, he may nevertheless recover his actual loss.(Enacted by Stats. 1935, Ch. 145.)
• Section 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 respondentia, before its...
• Section 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...
• Section 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...
• Section 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,...
• Section 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...
• Section 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...
• Section 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...
• Section 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...
• Section 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,...
• Section 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...
• Section 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....

Last modified: October 22, 2018