46 CFR 308.3 Applications for insurance; warranties; supporting documents; payment of binder fees

§ 308.3

46 CFR Ch. II (10–1–22 Edition)

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 MARAD’s underwriting agent
MARAD’s underwriting agent and to
MARAD at the address in paragraph (d)
of this section.

kpayne on VMOFRWIN702 with $$_JOB

§ 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 MARAD’s underwriting agent or from MARAD.
(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 Order T–1 (44 CFR parts 401 and
402), or any modifications thereof so
long as it remains 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 MARAD; 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
MARAD 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 MARAD 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. Coast Guard’s Automated MutualAssistance Vessel Rescue System
(AMVER) 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 MARAD’s underwriting agent and to MARAD at the address in § 308.2(d).
(d) Required submissions with—(1) In
general. An application for insurance
on a vessel described in § 308.1(b) shall
be accompanied by:

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Maritime Administration, DOT

§ 308.3

(i) A contract of commitment, in the
form prescribed in § 308.5. 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 MARAD.
(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 accom-

panied 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 MARAD’s underwriting agent or MARAD at the address in § 308.2(d).
(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.
(g) Availability of Application Forms.
Form MA–528 may be obtained from either MARAD’s underwriting agent or
MARAD at the address in § 308.2 (d).

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