46 CFR Part 308

§ 308.3

46 CFR Ch. II (10–1–09 Edition)

(e) Nature of change in status of other
vessels. It is the intention of the parties
that any breach of the warranty as to
operation in the approved service of
vessels described in § 308.1(c) shall terminate the insurance. In the event of
the sale, demise charter, requisition,
confiscation, change of flag, total loss,
any other change in status or change
in operation of the vessel in the approved service prompt notice shall be
given to the American War Risk Agency, 14 Wall Street, New York, NY 10005.

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§ 308.3 Applications
for
insurance;
warranties; supporting documents;
payment of binder fees.
(a) Application, binder forms. A single
application for War Risk Insurance
shall be filed on Form MA–528, specifying the types of insurance coverages
for which the applicant is applying. A
single application may be submitted
for several vessels, if the application
identifies each vessel to be insured and
the coverage(s) required, by completing
appendices A and B to that form. An
interim binder for war risk insurance
coverage, of the types described in subparts B, C and D of this part, shall be
on Form MA–942, which may be obtained from the American War Risk
Agency or from the Office of Subsidy
and Insurance.
(b) Warranties—(1) In general. Applications for war risk hull and protection
and indemnity insurance in any eligible category of this Part 308 shall include a warranty that, at all times during the effective period of the binder
and any insurance attaching thereunder, the insured vessel, regardless of
its nation of registry, will comply with
Department of Commerce Transportation Orders T–1 and T–2 (44 CFR parts
401, 402, and 403), or any modifications
thereof so long as they remain in force
and that the vessel will not be chartered, unless in accordance with the
provisions of § 221.11 and 221.13 of this
chapter, which requirement is applicable to any charter in existence at the
time the applicant applies for insurance.
(2) Vessels described in § 308.1(a). Applications for war risk insurance on a vessel described in § 308.1(a) shall contain
the warranty that 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) Vessels described in § 308.1(b). Applications for war risk insurance on a vessel described in § 308.1(b) shall contain
the warranties that at all times the
vessel will 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, as required by the Maritime Administration; that the vessel will remain in the
approved service; and that no controlling interest in the vessel shall be
transferred by a subsequent sale or
long-term 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 transferring any controlling interest in the vessel, including long-term charter or merger agreements, shall be submitted to the Maritime Administration for prior approval.
(4) Vessels described in § 308.1(c). Applications for war risk insurance on a vessel described in § 308.1(c) shall contain
warranties that the vessel will remain
in the approved service and that any
change in flag or service will be reported in advance to the Maritime Administration for a new determination
as to whether the vessel’s service is in
the interest of the national defense or
the national economy of the United
States. Vessels in this category are not
eligible for war risk insurance interim
binders.
(5) Vessel locator filing requirements.
Applications for insurance on vessels in
all categories, except tugs and barges
and vessels used exclusively in the fishing trade or industry, described in
§ 308.1(a), shall contain a warranty that
at all times the vessel will file reports
as required under the U.S. Merchant
Vessel
Locator
Filing
System
(USMER) as prescribed in § 308.2(c) of
this section.
(c) Filing applications for insurance.
All applications for insurance on a vessel shall be made to the American War
Risk Agency, 14 Wall Street, New
York, New York 10005, underwriting

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Maritime Administration, DOT

§ 308.3

agent for the Maritime Administration.
(d) Required submissions with—(1) In
general. An application for insurance
on a vessel described in § 308.1(b) shall
be accompanied by:
(i) A contract of commitment, in the
form prescribed in § 308.5 of this part.
In the event the vessel is determined to
be ineligible under the terms of this
part 308, the applicant will be so advised and the executed contract of
commitment and any official foreign
government action or approval will be
returned to the applicant by the Maritime Administration.
(ii) An executed agreement contained
in the application for insurance that
any charter or other contract covering
the use of the vessel during the period
of the binder or any insurance attaching thereunder shall be subject to termination or suspension without notice
in the event the United States requires
the use of the vessel under the voluntary contract of commitment submitted by the applicant.
(2) Certification of citizenship. An application for insurance on such a vessel
shall be supported by execution of the
citizenship certification, in the format
set out in appendix C to Form MA–528,
as described in paragraph (a) of this
section. That certification shall be required to establish the U.S. citizenship
of the majority ownership and control
of the vessel-owning corporation,
whether that ownership is direct or
through intervening corporations.
(3) Existing long-term charters. An application for a vessel in this category
which is at the time of application
under long-term charter or other longterm contract, either to the applicant
or from the applicant to a third party,
shall be jointly submitted by the owner
and the charterer, and in addition to
the other materials required under this
paragraph, shall be accompanied by a
copy of the long-term contract covering the use of the vessel and all addenda thereto, certified to be full and
complete copies (except as to rate of
hire or freight) and a completed appendix C to Form MA–528, establishing the
U.S. citizenship of the majority of the
shareholders and control of the
charterer. The charterer shall also furnish to MARAD a certified copy of any

amendment to such charter which may
be issued subsequent to the issuance of
any binder of insurance under this Part
308.
(4) Foreign government action or approval. An application for a vessel in
this category also shall be accompanied by a certified copy of the evidence of any official action or approval
required by the government of the
country of registry as a prerequisite to
the execution of a contract of commitment with the United States.
(5) Additional materials. With respect
to a vessel in this category, the applicant shall submit the following additional materials:
(i) A statement describing the service
in which the vessel is engaged, including a listing of the vessel’s voyages and
ports of call during the immediately
preceding six (6) month period, indicating the tonnage and type of cargo
carried on such voyages and the reasons why such service should be
deemed to be in the interest of the national defense or the national economy
of the United States;
(ii) Material demonstrating the management and financial capabilities of
the applicant; and
(iii) In the case of a new vessel or a
vessel which has not for the six (6)
months immediately prior to the date
of the application been engaged in the
foreign commerce of the United States,
a statement, signed by a responsible
company official, certifying the extent
to which the vessel will be engaged in
the foreign commerce of the United
States for the six (6) months immediately following the issuance of any
interim binder of insurance under this
part 308.
(e) Requests for changes in binders. All
requests for changes in binders and inquiries relative to the insurance after
the interim binders have been issued
shall be directed to the American War
Risk Agency, 14 Wall Street, New
York, NY 10005.
(f) Fees. A check payable in U.S.
funds to the ‘‘Maritime Administration, Department of Transportation’’
for the total amount of all binder fees
payable by such applicant shall accompany each application. Binder fees are
not returnable.

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§ 308.4

46 CFR Ch. II (10–1–09 Edition)

(g) Availability of Application Forms.
Form MA–528 may be obtained from either the American War Risk Agency
(Underwriting Agent), at the address in
paragraph (e) of this section, or the
Maritime Administration, Attention:
Director, Office of Subsidy and Insurance, 400 Seventh Street, SW., Washington, DC 20590.
(Approved by the Office of Management and
Budget under control number 2133–0011)

§ 308.4

[Reserved]

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§ 308.5 Voluntary contract of commitment.
Applications for insurance on vessels
described in § 308.1(b) shall be accompanied by a contract of commitment,
in triplicate originals, executed by the
owner (or by the owner and the
charterer where required by § 308.3).
Contracts of commitment to make the
vessel available to the United States
during any period in which vessels may
be requisitioned under section 902 of
the Act (46 App. U.S.C. 1242) shall be
submitted on standard contract form
which may be obtained from the American War Risk Agency or MARAD. The
effective date of the contract of commitment will be the effective date of
the binder and will be inserted in the
contract of commitment by MARAD.
§ 308.6 Period of interim binders, updating application information and
new applications.
(a) All existing interim binders remain in full force and effect without
the necessity of re-application or the
payment of additional fees so long as
the Secretary of Transportation’s authority to provide such insurance has
been extended and is continuous.
(b) Assureds under interim binders
are required to notify the American
War Risk Agency annually, by June
30th, of any change in the information
provided in their original binder applications including, but not limited to,
change of address, vessel name or vessel characteristics.
(c) New applications for interim binders on U.S.-flag vessels, with necessary
attachments (as specified in S 308.3), as
well as checks for the binder fees prescribed made payable to ‘‘Maritime Administration, Department of Transpor-

tation,’’ shall be filed with the American War Risk Agency, 14 Wall Street,
New York, New York 10005. All interim
binders on U.S.-flag vessels shall become effective as of the date of determination of eligibility by the Maritime
Administration.
(d) New applications for interim
binders on U.S. citizen-owned or controlled foreign-flag vessels, with necessary attachments (as specified in
§ 308.3), as well as checks for the binder
fees prescribed made payable to ‘‘Maritime Administration, Department of
Transportation,’’ shall be filed for review in accordance with eligibility requirements specified in § 308.2, and
mailed to the American War Risk
Agency, 14 Wall Street, New York, New
York 10005. All interim binders on foreign-flag vessels will become effective
on the date the owner’s contract of
commitment is executed by the Maritime Administration.
(Approved by the Office of Management and
Budget under control number 2133–0011)

§ 308.7 Premiums and payment thereof.
Rate to be fixed promptly upon the
happening of the event causing the
American Institute Hull War Risks and
Strikes Clauses dated December 1, 1977
(including Automatic Termination and
Cancellation Provisions) for attachment to American Institute Hull
Clauses dated June 2, 1977 of any war
risk policies to become operative and
premium shall be payable within ten
days after receipt of notice of the
amount thereof by the assured. Premiums shall be paid to the Underwriting Agent that issued the binders
by check payable to the order of ‘‘Maritime Administration, Department of
Transportation.’’ In the event that it is
subsequently determined that insurance under interim binders did not attach, premiums paid will be refunded
by the Maritime Administrator.
§ 308.8 War risk insurance
writing agency agreement.

Standard form MA–355 of underwriting agency agreement applicable
shall be executed by the Maritime Administrator and domestic insurance

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