46 CFR Part 308

2133-0011

SECTION 1202,TITLE XII, MERCHANT
MARINE ACT, 1936,AS AMENDED.
46 CFR Part 308

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§ 308.3
(e) Nature of change in statu'! of other
vessel$.It is the intention of the parties
that any breach of the warranty as to
operation in the approved eervice of
veseels described In §308.1(c)shall terminate the insurance. In the event of
the sale, demise charter. requisition,
confiscation, change of flag, total 1088,
any other change in status or change
in operation of the vessel in the approved eervice prompt notice shall be
given to the American War Risk Agency, 14 Wall Street, New York, N~ 10005.
§ 308.3 Applications
for
warranties;
supportln.
payment of binder rea,

Insurance;
docum..nts;

(a) Application, binder fonn&. A single
application for War Risk Insurance
shall be filed on Fo~A~28,
specifying the types of insurance coverages
for which the applicant is applying. A
single application may be submitted
for several veesels, if the application
identifies each vessel to be insured and
the coverage(s) required, by completing
appendice8 A and B to that form. An
interim binder for war ri8k insurance
coverage, of the type8 described in 8Ubparts B, C and D of thi8 J)8.rt, sh&ll be
on F~-M.A=942,
which may be obtained from the American War Ri.k
Agency or from the Office of Subsidy
and Insurance.
(b) Warrantiu-(l)
In general. Applications for war ri8k hull and protection
and indemnity "insurance in any eligible category of thi8 Part 308 shall include a warranty that, at all time8 during the effective period of the binder
and any insurance attachJDg' thereunder, the in8ured ve88el, regardlesa of
ita nation of regi8try, will comply with
Department of Commerce Tran8portation Ordere T-1 and T-2 (44 CFR parta
401, 402, and 400), or any modifications
thereof so long as they remain in force
and that the vessel will not be chartered, unleaa in accordance with the
provi8ion8 of 1221.11 and 221.13of thi8
chapter, which requirement i8 applicable to any charter in exi8tence at the
time the applicant appl,ie8 for in8urance.
(2) Ve.t.tel.fdescribed in .f 3O8.1(aJ.Application8 for war ri8k insurance on a vessel deactibed in 1_.1(&) sh&1I contain
the warranty th&t at, and from the
date of issuance of the interim binder,

and for and during the term of any insurance attaching
thereunder. such
vessel will remain eligible within its
category.
(3) Ve.!.!elsdescribed i'l .f308.1(b).Applications for war risk insurance on a vessel described in §308.1(b) shall contain
the warranties that at all times the
vesael wl11 remain eligible within its
applicable category; that the vessel
will be made available for use by the
United States pursuant to the signed
Contract of Commitment submitted
with the Insurance applications. 8.8 required by the Maritime Administration; that the vesael will remain in the
approved service; and that no controlling interest in the vessel 8hall be
transferred by a subsequent sale or
long-tetm charter, except on the condition that the successor in interest
agrees to be bound by the terms of the
applicant's Contract of Commitment.
All instruments transferriD8' any controlling interest in the vesael. including long-term charter or merger agreements, shall be submitted to the Maritime Administration
for prior approval.
(4) Vesselsdescribed In .f 308.1(c).Appllcations for war risk insurance on a vessel described in 1308.1(c) shall contain
warranties that the vessel wl11 remain
in the approved service and that any
change in nag or service wl11 be reported in advance to the Maritime Administration
for a new determination
as to whether the vesael's service is in
the interest of the national defense or
the national economy of the United
States. Veuels in this category Are not
ellgible for war risk insurance interim
binders.
(5) Vellel locator fiUng requirements.
Appllcations for insurance on vessels in
all categories. except tU&,8and barges
and veaaels used exclusively in the fishing trade or industry. described in
1308.1(a).shall contain a warranty that
at all times the vessel wl11 me reports
as required under the U.S. Merchant
Veaael
Locator
Fl11ng
System
(USMER) as prescribed in 1308.2(c) of
this section.
(c) FiU'lg oPJ'Ucatiom lor inlurO'lce.
All applications for insurance on a vessel shall be made to the American War
Risk Agency. 14 Wall Street, New
York. New York llXKl5. underwriting

204

be issued subsequent to the isauance of
any binder of insurance under this Part
308.
' .
(4) ForeiDn government action OT apon a vessel described In 1308,I(b} shali
prowl. An application for a veuel in
be accompanied by:
thl8 category a180 8hall be accom(i) A contract of commitment,
in the
panied by a certified copy of the eviform prescribed in 1308.5 of this part.
In the event the vessel i8 determined to dence of any official action or approval
be ineligible under the term8 of thi8 required by- the I'overnment of the
part 308. the applicant will be so s.d- country of regi8try a.aa prerequi8ite to
vi8ed and the executed contrs.ct of the execution of a contract of commitcommitment and s.ny oCficis.1 foreign ment with the United State8.
government s.ction or s.pprovs.l will be
(5) Additional rnaterials. With re8pect
returned to the appHcant by the Marito a veuel in thi8category, the applicant 8hall 8ubmit the following additime Administration,
(Ii) An executed agreement contaIned tional material8:
In the s.pplication for insurance that
(i) A 8tatement deacribinl' the 8ervice
any charter or other contract covering
In which the veaael i8 enraged, includthe use of the vesael during the period Inl' ali8ting of the veuel'8 voyage8 and
of the binder or any inaurs.nce attachport8 of call during the im:nediately
In~ thereunder shall be subject to terpreceding 81x (6) month period, indicatmination or suspension wIthout notice
Inl' the tonnage and type of cargo carin the event the United States requires ried on 8uch voyage8 and the rea.aon8
the use of the vesael under the vol- why 8uch service 8hould be deemed to
untary contract of commitment sub- be In the interest of the national defense or the national economy of the
mitted by the applicant.
(2) Cerlificulion of citizenship. An ap- United States;
plication for insurance on such a ve88el
(il) Material demonatratinl' the manshall be supported by execution of the agement and financial capa.bilitie8 of
citizenship certification, in the format
the applicant; and
set out In appendix C to Form MA-S.,
(Iii) In the case of a new veale 1 or a
a8 described in paragraph (a) of thi8
vessel which haa not for the 8ix (8)
section. That certification ahall be re- months immediately prior to the date
quired to establish the U.S. citizenship
of the application been enl'aged in the
of the majority ownership and contro1
foreil'n commerce of the United States,
of the vessel-owning corporation.
statement, signed by a responalble
".hether that ownership is dil-ect or a
company orrlcial, certifying the extent
through Interveninec corporations.
to which the vessel will be enl'aged in
/31 ExiSling long-lerni charteTs. An ap- the foreign commerce of the United
plication for a vessel in this category
States for the 8ix (8) month8 immewhich Is at the time of application
diately following the 188uance of any
under long-term charter or other lonw- Interim binder of in8urance under thi8
term contraCO. either to the app1icant
part D.
or from the applicant to a thIrd party,
(e) Requeslsfor chanDa in binder,. All
shall be jointly submitted by the owner
and tht! charterer. and in addItion to reque8t8 for change8 in binders and inquiries relative to the Insurance after
l hI: 01her materials I'equlred uncler this
para~I'aph. shall be accompanied by a the interim binders have been is8ued
shall be directed to the American War
copy of the long-term contract coverinw- the use of the vesael and all ad- Risk Agency, 14 Wall Street, New
d~ndi\ thereto, certified to be full and York. NY 1~.
(f) Fees. A check payable in U.S.
complt!te copies (except as to rate of
funds
to the "Maritime
Administrahire or freight) and a completed appention, Department or Transportation"
dix C to Form MA-S~. establishing the
for the total amount of all binder fees
U.S. cltlz,--n$hip of the majority or the
fll\yable by such applicant shall accomshal'choldcl"S and control
of tho
(*'ny el\Ch application. Binder feu are
chul'terer. 'I'he I:hart.crcr shall a180 furnot returnable.
nilSh to ~IARAI) a certified copy of any
Lion,

.

(d) ReOltired submiS$ions with-(l)
In
general,
An application
for insurance

;~:~;j

205

46 CFRCh. II (10-1-96 Edition)

§ 308.5

tation," shall be flied with the American War Risk Agency, 14 WAil Street.
New York, New York 1(KM)5.
All interim
binders on u.s.-nag vessels shall become effective as of the date of determination of eligibllity by the Maritime
Administration.
(d) New applications
for interim
binders on U.S. citizen-owned or controlled foreign-nag vessels, with necessary attachments (as specified in
Budget under control number 2133-0011)
1308.3),&8 well &8 checks for the binder
fees prescribed made payable to "Mari§308.4 (Re8ervedJ
time Administration,
Department of
Transportation,"
shall be filed for re§ 308.5 Vo!u~ta~
contract or commitview in accordance with eligibility remenL
Applications for insurance on vessels quirements specifled in 1308.2. and
described in 1308.l(b) shall be accom- mailed to the American War Risk
Agency, 14 Wall Street, New York, New
panied by a contract of commitment.
All interim binders on forin triplicate orlrinals. executed by the York 1CXX15.
owner (or by the owner and the eign-nag vessels will become effective
charterer where required by 1308.3). on the date the owner's contract of
Contracts of commitment to make the commitment is executed by the Maritime Administration.
ve88el available to the United States
during any period In which vesaels may (Approved by the Office of Management a.nd
be requisitioned under section 002 of Budget under control number 2133-0011)
the Act (46 App. U.S.C. 1242) shall be
§ 308.7 Premlum8 and payment theresubmitted on .ta.nd!!:dcontract
form
of.
whi~h may be.-obtained from the AmerRate
to be fixed promptly upon the
ican War Risk Agency or MARAD. The
effective date of the contract of com- happening of the event causing the
mitment will be the effecti~e date of American Institute Hull War Rieks and
the binder and will be inserted in the Strikee Clausee dated December 1, 1m
(including Automatic Termination R.nd
contract of commitment by MARAD.
CanceliR.tion Provisions) for R.ttach§ 308.8 Period of Interim
blnden,
upment to Americ~n Institute
Hull
datlnt' application
Information
and
Clauses dated June 2, 1977 of any war
new appllcatlon8.
risk policies to become operative &nd
(a) All existing interim binders re- premium shall be p&y&ble within ten
main in full force and effect without
days after receipt of notice of the
the nece88ity of re-applicatlon or the amount thereof by the aasured. Prepayment of additional fees so iong as miums shall be paid to the Underwritthe Secretary of Transportation's au- ing Agent that iaaued the binders by
thority to provide such insurance has check payable to the order of "M&ribeen extended and is continuous.
time Administration,
Department of
(b) Aaeureds under interim binders
Transportation." In the event that it is
are required to notify the American
subsequently determined that inaurWar Risk Anncy annually. by June ance under interim binders dId not at30th. of any chann in the information
tach, premiums paid wlll be refunded
provided in their original binder appliby the Ma.ritime Administrator.
cations including. but not limited to.
change of addre88. veeeel name or ves- 1308.8 War risk Insurance underw1'ltInl 81ency aareem6nL
sel characteristics.
.
(c) New applicAtions for interim bindStandard form MA-356 of underwriten on u.s.-nag veeaels. with necessary ing aRency agreement applicable shR.II
attachments (ae specified In S :'.3), ae be executed by the Maritime Adminiswell as checks for the binder fees pre- trator and domestic insurance compR.scribed made paya.ble to "Maritime Ad- nies or R'rou~ of domestic insurance
ministrAtion. Department of TrAnsporcompanies authorized to do a marine
(g) Availability of Application Form.s.
Form MA-528 may be obtained from either the American War Risk Agency
(Underwriting Agent), at the addresa In
paragraph (e) of this section. or the
Maritime Administration,
Attention:
Director. Office of Subsidy And Insurance, 400 Seventh Street, SW., Washington. DC 20690.
(Approvedby the Office of Managementand

206

Ulllll:ll

~l;lL.t::i.

;lPP()IIIL.ln~

tiUCl1 compa-

nies or groups of companies as Underwriting Aa'ents to Issue binders and
policies covering hull, protection and
Indemnity, and Second Seamen's war
risk Insurance under subparts B, C, and
D of this part. It shall contain provisions including, but not limited to the
appointment of the agent, dutle8 of the
allent. books and records. compensation, standard of performance, Indemnification effective date, amendment
and termination, and nondiscrimination.

SubpartB-War RiskHulland
Disbursements
Insurance
§308.100 Insured amount.
An applicant for war risk hull insurance shall state the amount of insurance desired but any payment of claim
for damage to or actual or constructive
total loaa of the vessel Insured shall be
made as provided in 1308.100(a).An applicant desiring disbursements insurance may at his option obt&Jn such additional Insurance but any claim for
loss of dishursements as a consequence
of the actual or constructive total loss
of the vessel insured shall be made as
provided in §308.I(X](c).
~,.,
o"!p'

t 808.101 (Reserved]
t 308.102 Issuance of Interim
terms and conditions; fees.

binder;

Upon acceptance of an application,
II.n Interim hinder in the form sct forth
in 1308.106, will be issued and there
shall be deemed to be incorporated
therein by references all the terms.
conditions, and warranties contained
in the application for war risk hull and
disbursements insurance and the standard \VlI.r risk hull insurance policy (sot
forth in 1308.107),to the same Qxtent as
if HUI;!1 application and policy were
mnde a PtLrt of the binder. The binder
fee (not refundable) for u.s.-nag vesaels ahall be S25per application for veasels under 500 groBS tons; SIOOper application for veaaels 500 groaa tons or
over: and Sl00 per LASH or similar type
bnrlCe application. The binder foe (not
refunclnble> for foreign-nag
vessels
Hhull be S50 per application for vesscls
under 500.Kross tons; S2OOper applica-

$ZOO
pel' LASH or aimila.r type barge application. All fees are payable in U.S.
funds by check to order of tlfe "Ma.l1time Administration,
Department of
Transportation."
1308.103
terim

INUred
binder.

amount.

under

in-

(a) Valuation. The valuation in the
policy for damage to, or actual or constructive total 1088 of the vesael insured shall be a stated valuation (exclusive of National Defense features
paid for by the Government) determined by the Secretary of Transportation which shall not exceed the
amount that would be payable If the
ve88el had been requisitioned for title
under section 9O2(a) of the Merchant
Marine Act, 1936,&8 amended (46 App.
U.S.C. 1242(a» at the time of the attachment of the insurance under said
policy: Provided. however, That in the
case of a .construction subsidized vessel, for the period of Insurance prior to
requisition for title or use, the valuation ao determined ahall be reduced by
such proportion as the amount or construction subsidy paid with respect to
the veaael bears to the entire conatruction coat and capital Improvements
thereof (excluding the cost or national
defenae features), and ror the period of
inaurance after requlaition ror use the
valuation ao determined shall not exceed the amount which would be payable under 46 App. U.S.C. 1242(a)In the
case of requisition ror title or uae: Provided, further, that the lnaured shall
have the right within sixty days after
the attachment of the lnaurance under
said policy, or within sixty days after
determination of such valuation by the
Secreta.ry of Transportation, whichever
is later, to reject auch valuation, and
shall pay, at the rate provided for in
aaid policy, premiums upon such asserted valuation as the inaured shall
specify at the time of rejection, but
such &88erted valuation shall not operate to the prejudice of the Government
in any subsequent action on the policy.
In the event or the actual or conatructive total 1088or the veaael, If the insured has not rejected such valuation
the amount Dr any claim thereror
which is adjuated, compromiseFile Typeapplication/pdfAuthorddo [ SCAN_MAR220 ]File Modified0000-00-00File Created2004-07-19