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(B) if the insurance is of a character where the exact premium is only determinable upon the termination of the contract, the basis and rates upon which the final premium is to be determined and paid.

83393. Coverage of specified insured's interest

When the name of the person intended to be insured is specified in a policy, it can be applied only to his own interest.

§ 3394. Insurance by agent or trustee

When an insurance contract is executed with an agent or trustee as the insured, the fact that his principal or beneficiary is the real party in interest may be indicated by describing the insured as agent or trustee, or by other general words in the policy.

§ 3395. Insurance by partner or part-owner

To render an insurance, effected by one partner or part-owner, applicable to the interest of his copartners, or of other part-owners, it is necessary that the terms of the policy be such as are applicable to the joint or common interest.

§ 3396. General description of insured

When the description of the insured in a policy is so general that it may comprehend any person or any class of persons, only he who can show that it was intended to include him may claim the benefit of the policy.

§ 3397. Insurance of future owners

A policy may be so framed that it will inure to the benefit of whosoever, during the continuance of the risk, becomes the owner of the interest insured.

Article B-Types of Policies

§ 3411. Open and valued policies

A policy is either open or valued.

§ 3412. Definition of open policy

An open policy is one in which the value of the subject-matter is not agreed upon, but is left to be ascertained in case of loss.

§ 3413. Definition of valued policy

A valued policy is one which expresses on its face an agreement that the thing insured shall be valued at a specified sum.

§ 3414. Definition of running policy

A running policy is one which contemplates successive insurances, and which provides that the object of the policy may be from time to time defined, especially as to the subjects of insurance, by additional statements or indorsements.

Article C-Warranties

§ 3421. Express or implied

A warranty is either express or implied.

§ 3422. Express warranty

A statement in a policy, of a matter relating to the person or thing insured, or to the risk, as a fact, is an express warranty thereof. § 3423. Form of words

A particular form of words is not necessary to create a warranty.

8 3424. Express warranties to be in policy

Every express warranty, made at or before the execution of a policy, must be contained in the policy itself, or in another instrument signed by the insured and referred to in the policy, as making a part of it. § 3425. Past, present, and future warranties

A warranty may relate to the past, the present, the future, or to any or all of these.

§ 3426. Statement of intent

A statement in a policy, which imports that there is an intention to do or not to do a thing which materially affects the risk, is a warranty that the act or omission will take place.

83427. Excusable omission to fulfill future warranty

When, before the time arrives for the performance of a warranty relating to the future, a loss insured against happens, or performance becomes unlawful at the place of the contract, or impossible, the omission to fulfill the warranty does not avoid the policy.

83428. Violation of material warranty

The violation of a material warranty or other material provision of a policy, on the part of either party thereto, entitles the other to rescind.

§ 3429. Violation of immaterial warranty

Unless the policy declares that a violation of specified provisions thereof shall avoid it, the breach of an immaterial provision does not avoid the policy.

§ 3430. Breach without fraud

A breach of warranty, without fraud, merely exonerates an insurer from the time that it occurs, or where the warranty is broken in its inception, prevents the policy from attaching to the risk.

Subchapter VII-The Premium

§ 3451. Conditions of return of premium

If a policy is cancelled or rescinded, the person insured, unless the insurance contract otherwise provides, is entitled:

(1) to a return of the whole premium, if no part of his interest in the thing insured is exposed to any of the perils insured against;

or

(2) if the insurance is made for a definite period of time, and the insured surrenders his policy, to a return of such proportion of the premium as corresponds with the unexpired time, after deducting from the whole premium any claim for loss or damage under the policy which has previously accrued.

Section 3452 of this title applies only to the expired time.

§ 3452. Earned premium

Except as provided by section 3451 of this title, or by the insurance contract, if a peril insured against has existed, and the insurer has been liable for any period, however short, the insured is not entitled to return of premiums as far as that particular risk is concerned.

8 3453. Right to return

A person insured is entitled to a return of the premium when : (1) the contract is voidable on account of:

(A) the fraud or misrepresentation of the insurer; or (B) facts, of the existence of which the insured was ignorant without his fault; or

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(2) by any default of the insured other than actual fraud, the insurer did not incur any liability under the policy.

§ 3454. Policy as receipt

An acknowledgment in a policy of the receipt of premium is conclusive evidence of its payment, as far as to make the policy binding, notwithstanding any stipulation therein that it shall not be binding until the premium is actually paid.

§ 3455. Overinsurance by several insurers

In case of an overinsurance by several insurers, the insured is entitled to a ratable return of the premium, proportioned to the amount by which the aggregate sum insured in all the policies exceeds the insurable value of the subject at risk.

§ 3456. Overinsurance by simultaneous policies

When an overinsurance is effected by simultaneous policies, the insurers shall contribute to the premium to be returned in proportion to the amount insured by their respective policies.

§ 3457. Overinsurance by successive policies

When an overinsurance is effected by successive policies, those only shall contribute to a return of the premium who are exonerated by prior insurance from the liability assumed by them, and in proportion as the sum for which the premium was paid exceeds the amount for which, on account of prior insurance, they could be made liable.

Subchapter VIII-Loss

Article A-Transfer of Interest After Loss

§ 3481. Agreement not to transfer

An agreement not to transfer the claim of the insured against the insurer after a loss has happened, is void if made before the loss.

Article B-Causes of Loss

§ 3491. Proximate and remote causes

An insurer is liable for a loss of which a peril insured against was the proximate cause, although a peril not contemplated by the contract may have been a remote cause of the loss; but he is not liable for a loss of which the peril insured against was only a remote cause.

§ 3492. Rescue from peril insured against

An insurer is liable where:

(1) the thing is rescued from a peril insured against, and which would otherwise have caused a loss, if, in the course of the rescue, the thing is exposed to a peril not insured against, and which permanently deprives the insured of its possession, in whole or in part; or

(2) a loss is caused by efforts to rescue the thing insured from a peril insured against.

§ 3493. Specially excepted perils

If a peril is specially excepted in a contract of insurance and there is a loss which would not have occurred but for the peril, the loss is thereby excepted even though the immediate cause of the loss was a peril which was not excepted.

§ 3494. Willful act of insured; negligence

An insurer is not liable for a loss caused by the willful act of the insured; but he is not exonerated by the negligence of the insured, or of the insured's agents or others.

Article C-Notice and Proofs of Loss

§ 3501. Notice of fire loss

In case of loss upon an insurance against fire, an insurer is exonerated if notice thereof is not given to him without unnecessary delay by a person insured or a person entitled to the benefit of the insurance.

§ 3502. Notice of casualty loss; 20-day period

Except in the case of life, marine, or fire insurance, notice of an accident, injury, or death may be given at any time within 20 days after the event, to the insurer under a policy against loss therefrom. In such a policy, a requirement of notice within a lesser period is not valid. Notice deposited in the mails properly addressed within the time stated is sufficient, though it does not reach the insurer within that time.

3503. Preliminary proofs

When preliminary proof of loss is required by a policy, the insured is not bound to give such proof as would be necessary in a court of justice. It is sufficient for him to give the best evidence which he has in his power at the time.

83504. Waiver of defects

All defects in a notice of loss, or in preliminary proof thereof, which the insured might remedy, and which the insurer omits to specify to him, without unnecessary delay, as grounds of objection, are waived.

83505. Waiver of delay

Delay in the presentation to an insurer of notice or proof of loss is waived, if caused by any act of his, or if he omits to make objection promptly and specifically upon that ground.

83506. Proof by third party

If a policy requires, by way of preliminary proof of loss, the certificate or testimony of person other than the insured or beneficiary, there is sufficient compliance with the requirement if the insured or beneficiary:

(1) uses reasonable diligence to procure the certificate or testimony; and

(2) in case of refusal to give the certificate or testimony to him, furnishes reasonable evidence to the insurer that the refusal was not induced by just grounds of disbelief in the facts necessary to be certified or testified.

Subchapter IX-Double Insurance

§ 3521. Definition of double insurance

A double insurance exists where the same person is insured by several insurers separately in respect to the same subject and interest. § 3522. Contribution in case of double insurance

In case of double fire insurance, each insurer shall contribute ratably toward the loss, without regard to the dates of several policies.

Subchapter X-Reinsurance

83531. Definition of reinsurance contract

A contract of reinsurance is one by which an insurer procures a third person to insure him against loss or liability by reason of the insurance.

§ 3532. Presumed nature of contract

A reinsurance is presumed to be a contract of indemnity against liability and not merely against damage.

§ 3533. Disclosures required

Where an insurer obtains reinsurance, he shall communicate all the representations of the original insured, and also all the knowledge and information he possesses, whether previously or subsequently acquired, which are material to the risk.

§ 3534. Interest of original insured

The original insured has no interest in a contract of reinsurance.

Subchapter XI-Casualty Insurance

§ 3551. Liability on casualty risks; required provisions in policies

(a) In respect of every contract of insurance made between an insurance company and a person, by which the person is insured against loss or damage through legal liability for the bodily injury, death, or damage to property of a third person, for which loss or damage the insured is responsible, whenever a loss occurs on account of a casualty covered by the contract of insurance, the liability of the insurance company is absolute, and the payment of the loss does not depend upon the satisfaction by the insured of a final judgment against him for loss or damage, or death, occasioned by the casualty. A contract of insurance may not be cancelled or annulled by an agreement between the insurance company and the insured after the insured has become responsible for loss or damage as mentioned in this section, and any such cancellation or annulment is void.

(b) Contracts or policies of insurance of the type mentioned in subsection (a) of this section, delivered in and/or having force and effect in, the Canal Zone, shall be deemed, notwithstanding any provision therein to the contrary, to contain or to be subject to the following provisions:

(1) A provision that the insolvency or bankruptcy of the person insured, or the insolvency of his estate, shall not release the insurer from the payment of damages for injury sustained or loss occasioned during the life of and within the coverage of the policy or contract.

(2) A provision that notice given by or on behalf of the insured, or written notice by or on behalf of the injured person or any other claimant, to a licensed agent of the insurer in the Canal Zone, with particulars sufficient to identify the insured, is notice to the insurer.

(3) A provision that failure to give any notice required to be given by the contract or policy within the time prescribed therein shall not invalidate a claim made by the insured or any other claimant thereunder if it shall be shown not to have been reasonably possible to give the notice within the prescribed time and that notice was given as soon as was reasonably possible.

§ 3552. Remedy of injured party after recovering judgment; defenses

(a) Upon the recovery of a final judgment against a person by a person or by the executor or administrator of a deceased person, for loss or damage on account of bodily injury or death, or for loss or damage to property, if the defendant in the action was insured against the loss or damage at the time when the right of action arose, the judgment creditor may have the insurance money provided for in the contract or policy of insurance between the insurance company and the defendant applied to the satisfaction of the judgment. If the judg

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