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(c) If no ocean bills of lading or equivalent shipping documents are issued, or if such documents are undated, laden on overseas vessel on or after said date.

CLAUSE 6. Conveyance. By overseas vessels and connecting conveyances.

CLAUSE 7. Voyages covered. At and from to

CLAUSE 8. Valuation. Goods insured hereunder shall be valued at

CLAUSE 9. Limits on amount payable for loss-(a) Fair market value at commencement of risk. In the event of loss, the Assured shall file a declaration (under the penalties of perjury) stating that the amount claimed does not exceed the fair market value of the lost or damaged goods at the place and approximate time of the attachment of risk, plus the cost of marine insurance, transportation and expenses incidental thereto, and war risk insurance with respect to the lost or damaged goods.

(b) Fair market value at port of arrival. If it is impossible to determine the fair market value at the place and approximate time of the attachment of risk, as provided in paragraph (a) of this clause, the Assured shall file a declaration (under the penalties of perjury) stating that the amount claimed does not exceed the fair market value at the designated port of arrival on the date of the attachment of risk, plus the costs of marine insurance, transportation and expenses incidental thereto, and war risk insurance with respect to the lost or damaged goods.

(c) Purchase price less discount. If the lost or damaged goods were purchased by the named Assured prior to loading on board the overseas vessel, the Assured shall file a declaration (under the penalties of perjury), in lieu of the declarations provided for in paragraphs (a) and (b) of this clause, stating that the amount claimed does not exceed the actual amount paid or payable to the seller for the goods less all discounts, plus the costs of marine insurance, transportation and expenses incidental thereto, and war risk insurance with respect to the lost or damaged goods. If Standard Optional Endorsement No. 2, Form MA-300-B, has been executed, and if the lost or damaged goods were purchased by the principal named in Endorsement No. 2, the declaration provided for in this paragraph shall be signed by both the agent and the named principal.

(d) Sales price less discounts. If the lost or damaged goods were shipped by, to, or at the direction of the Assured and were sold by the Assured prior to loading on board the overseas vessel (1) on terms requiring the Assured to provide war risk insurance to the port of discharge, or (2) with respect to which written or cabled instructions to provide war risk insurance to the port of discharge have been received by the Assured from the purchaser prior to loading of the goods on board the overseas vessel, and which were shipped for the account and at the risk of third persons other than a branch, subsidiary or affiliate of the Assured, the named

Assured shall file a declaration (under the penalties of perjury), în lieu of the declarations required by paragraphs (a), (b), or (c) of this clause, stating that the amount claimed does not exceed the actual bona fide sales price less all discounts, plus the costs of marine insurance, transportation and expenses incidental thereto, and war risk insurance with respect to the lost or damaged goods if such items are not included in the sales price. The claim shall be filled by the named Assured unless otherwise permitted in writings by the Maritime Administrator for good cause shown.

(e) Criminal Code. The declarations required to be filed pursuant to this clause shall be subject to the United States Criminal Code which makes it a criminal offense for any person knowingly to make a false statement or representation to, or to conceal & material fact from, any department or agency of the United States as to any matter within its jurisdiction (18 U. 8. C. 1001), or to file a false, fictitious or fraudulent claim against the United States (18 U.S. C. 287).

AMERICAN INSTITUTE WAR CLAUSES CLAUSE 10. War risks only. This insurance is only against the risks of capture, seizure, destruction or damage by men-of-war, piracy, takings at sea, arrests, restraints, detainments and other warlike operations and acts of kings, princes and peoples in prosecution of hostilities or in the application of sanctions under international agreements, whether before or after declaration of war and whether by a belligerent or otherwise, including factions engaged in civil war, revolution, rebellion or insurrection, or civil strife arising therefrom; and including the risks of aerial bombardment, floating or stationary mines and stray or derelict torpedoes, and weapons of war employing atomic or nuclear fission and/or fusion or other reaction or radioactive force or matter; but excluding claims for delay, deterioration and/or loss of market, and warranted not to abandon (on any ground other than physical damage to ship or cargo) until after condemnation of the property insured.

CLAUSE 11. Arrests, restraints. Warranted free from any claim based upon loss of, or frustration of, the insured voyage or adventure caused by arrests, restraints or detainments.

CLAUSE 12. Commandeering. This insurance does not cover any loss or damage caused by or resulting from any of the following causes:

(a) Commandeering, preemption, requisi tion or nationalization by the government (de facto or otherwise) of the country to or from which the goods are insured.

(b) Seizure or destruction under quarantine or custom regulations.

CLAUSE 13. Period covered. (a) The insurance against the risks enumerated in Clause 10, except the risks of floating or stationary mines and stray or derelict torpedoes, floating or submerged, referred to in

Clause 13 (b) below, shall not attach to the interest hereby insured or to any part thereof

(1) Prior to being on board an overseas vessel (for the purpose of this Clause 13 an overseas vessel shall be deemed to mean a vessel carrying the interest from one port or place to another where such voyage involves a sea passage by that vessel);

(2) After being discharged overside from an Overseas vessel at the final port of discharge; or

after the expiry of fifteen (15) days counting from midnight of the day of arrival of the overseas vessel at the final port of discharge whichever shall first occur;

(3) After expiry of fifteen (15) days from midnight of the day of arrival of the overseas vessel at an intermediate port or place to discharge the interest for on-carriage from that or any other port or place by another overseas vessel, but shall re-attach as the interest is loaded on the on-carrying overseas vessel. During the said period of Afteen (15) days the insurance remains in force whether the interest is awaiting transit or in transit between the overseas vessels.

(b) The insurance against the risks of floating or stationary mines and stray or derelict torpedoes, floating or submerged, attaches as the interest hereby insured is first loaded on lighter, craft, or vessel after leaving the warehouse at point of shipment in transit for the destination declared hereunder, and ceases to attach as the interest is finally landed from the vessel, craft or lighter prior to delivery to warehouse at such destination.

If the contract of affreightment is terminated at a port or place other than the destination named therein such port or place shall be deemed the final port of discharge for the purpose of this clause.

It is a condition of this insurance that the Assured shall act with reasonable dispatch in all circumstances within their control.

If anything contained in this policy shall be inconsistent with this Clause 13 it shall to the extent of such inconsistency be null and void.

CLAUSE 14. Deviation. This insurance shall not be vitiated by deviation, overcarriage, change of voyage, or by any error or unintentional omission in the description of interest, vessel or voyage, provided the same be communicated to the Underwriting Agent as soon as known to the Assured and an additional premium paid if required.

CLAUSE 15. Sue and labor. In case of any loss or misfortune, it shall be lawful and necessary to and for the Assured, his or their factors, servants and assigns, to sue, labor and travel for, in and about the defense, safeguard and recovery of the said goods and merchandise, or any part thereof, without prejudice to this insurance; nor shall the acts of the Assured or the Underwriter, in recovering, saving and preserving the property insured, in case of disaster, be consid

ered a waiver or an acceptance of abandonment; and to the charges whereof, the Underwriter will contribute according to the rate and quantity of the sum hereby insured. CLAUSE 16. General average. General Average and Salvage Charges payable according to United States laws and usage and/or as per Foreign Statement and/or as per YorkAntwerp Rules (as prescribed in whole or in part) if in accordance with the Contract of Affreightment.

CLAUSE 17. Collision. No claim shall be payable hereunder which arises from collision, contact with any fixed or floating object (other than a mine or torpedo), stranding, heavy weather or fire unless caused directly (and independently of the nature of the voyage or service which the vessel concerned or, in the case of a collision, any other vessel involved therein, is performing) by a hostile act by or against a belligerent power; and for the purpose of this paragraph "power" includes any authority maintaining naval, military or air forces in association with a power.

SPECIAL CLAUSES

CLAUSE 18. Transit interrupted. If the ordinary course of transit of the goods hereby insured is interrupted or terminated by the shipper, consignee, or Assured or any party acting on their behalf, this insurance shall forthwith terminate.

CLAUSE 19. Closing report. It is warranted that not later than the 25th day of each calendar month, the Assured will file with the Underwriting Agent closing reports in the manner and form required by such regulations as may be promulgated by the Maritime Administrator from time to time of all shipments coming within the scope of this policy.

(a) As to inward shipments as defined in section 308.512 of Maritime Administration General Order No. 75 such reports inust include

(1) All shipments which have arrived at port of destination during the preceding calendar month, and

(2) All shipments with respect to which inability to so arrive by reason of loss frustration or other similar cause has come to the knowledge of the Assured during the preceding calendar month, and

(b) As to outward shipments as defined in section 308.512 of Maritime Administration General Order 75 which attached under the policy during the preceding calendar month. And will pay premium thereon at the rate prescribed by the Maritime Administrator and in effect:

or

(1) On the date of the ocean bill of lading,

(2) If an ocean bill of lading was not issued, on the date of the equivalent shipping document, or

(3) If no ocean bill of lading or equivalent shipping document was issued, or if such documents were undated, on the date the goods were laden on an overseas vessel.

CLAUSE 20. Breach of policy. It is understood and agreed that whenever any premium is not paid when due, or any closing report is not filed as prescribed by Clause 19 hereof, the effect is such that a breach of the policy terms and conditions has been made by the Assured, and the policy automatically ceases to insure any shipment which would otherwise have attached after the expiration of fifteen (15) days following the due date of the premium or closing report, unless within the said fifteen (15) day period, the premium is paid or the closing report as required by Clause 19 hereof is filed with the Underwriting Agent, and a reinstatement fee of Twenty-five ($25) Dollars is paid by check or United States Postal Money Order payable to the Order of the "Maritime Adm.-Commerce", together with the amount of premium due, if any.

CLAUSE 21. Collateral. It is warranted that the Assured will at all times maintain with the Maritime Administrator a Collateral Deposit Fund or that in lieu of such Collateral Deposit Fund a Surety Bond in the form prescribed by the Maritime Administrator will be filed with the Underwriting Agent and maintained in full force and effect for the purpose of securing payment of premium hereunder. In the event that the Assured inadvertently fails to maintain such a Collateral Deposit Fund or such a Surety Bond in an amount sufficient so that at all times such amount is in excess of the unpaid premium then or thereafter payable with respect to any or all risks which have attached under the terms of the policy, it shall be a condition of this insurance that unless the Assured shall within seven (7) days from the time such insufficiency comes to the knowledge of the Assured deposit additional collateral or increase the surety bond in an amount not less than double the amount of such insufficiency and for a sum which shall be in even multiples of $500, this policy shall be void at the end of such seven (7) day period except as to risks which shall have attached prior to such voidance of this policy.

Notwithstanding the foregoing, however, if the Maritime Adminstrator shall determine that the failure of the Assured to maintain a sufficient Collateral Fund or Surety Bond was wilful rather than inadvertent, said policy shall be void from the date said Collateral Fund or Surety Bond was first insufficient to secure the premiums on risks which would otherwise have attached hereunder.

CLAUSE 22. Books and records. The Assured warrants and agrees that it will regularly keep books, records and accounts in such manner and form that all information available to the Assured as to the amounts at risk and the amounts of losses incurred and premiums due can be readily ascertained therefrom by the Maritime Administrator. The Assured, as often as may be reasonably

required, shall exhibit such books, records and accounts to any person designated by the Maritime Administrator, and submit to examinations under oath by any person named by the Maritime Administrator, and subscribe the same.

CLAUSE 23. Unintentional error. This insurance shall not be invalidated by any error, or omission in the filing of Closing Reports which is demonstrated to the satisfaction of the Maritime Administrator to have been inadvertent or unintentional, or by any failure to report which is demonstrated to the satisfaction of the Maritime Administrator to have arisen from causes beyond the control of the Assured. The Maritime Administrator, or his representative duly authorized in writing, may waive strict compliance with any warranty or condition of this insurance to the extent that he may determine that it imposes a hardship on any claimant in good faith hereunder which would not be imposed in connection with a policy issued in accordance with commercial practice in the marine insurance business, and to the extent that he may determine that such waiver is not contrary to the provisions of title XII of the Merchant Marine Act, 1936, as amended, under which the Policy is issued. In any determination as aforesaid the decision of the Maritime Administrator, or his duly authorized representative, shall be conclusive upon all parties thereto.

CLAUSE 24. Goods excluded. This policy does not cover shipments of specie, currency, securities, valuable documents, jewelry, precious stones, gold and silver and other precious metals, nor any articles transported by means of ordinary mail or air-mail or registered mail or parcel post.

CLAUSE 25. Special coverage. No shipment of cargo coming within the scope of this policy shall attach hereunder subsequent to the sailing of the carrying vessel from the original port of loading with respect to such cargo. Notwithstanding the foregoing provision an Assured may specially declare to his Underwriting Agent any shipment excluded from coverage by the preceding sentence, in which event insurance shall attach hereunder, if vessel and interest insured is safe in port on date of such declaration, or shall attach upon the safe arrival of vessel and interest insured at first port thereafter, warranted no known or reported loss of or damage to said vessel and interest insured at time of attachment.

CLAUSE 26. Partial loss. In case of partial loss by perils insured against, the proportion of loss shall be determined by a separation of the damaged portion of the insured property from the sound and by an agreed estimate (by survey) of the percentage of damage of such portion; or if such agreement is not practicable, then by public sale of such damaged portion for the account of the owner of the property, and by comparison of

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the amount so realized with the applicable valuation limit provided in Clause 9.

CLAUSE 27. Labels clause. In case of damage affecting labels, capsules or wrappers, the Underwriter, if liable therefor under the terms of this policy, shall not be liable for more than an amount sufficient to pay the cost of new labels, capsules or wrappers, and the cost of reconditioning the goods, but in no event shall the Underwriter be liable for more than the insured value of the damaged merchandise.

CLAUSE 28. Carrier clause. Warranted that this insurance shall not insure, directly or indirectly, to the benefit of any carrier or bailee.

CLAUSE 29. Notice of loss. In the event of loss which may give rise to a claim under this policy, prompt notice must be given to the Underwriting Agent.

This

CLAUSE 30. Rules and regulations. policy is subject to all rules and regulations pertaining hereto which may now or hereafter from time to time be published in the FEDERAL REGISTER.

CLAUSE 31. Cancellation. This policy may be canceled at any time upon 15 days written or telegraphic notice to or by the Assured or 15 days subsequent to the publication of a notice of cancellation in the FEDERAL REGISTER or at such other date as may be mutually agreed: Provided, however, that no such cancellation shall terminate this policy with respect to any shipments which have become a risk under the terms hereof prior to the effective date of such notice.

CLAUSE 32. Amendments. This policy may be amended by endorsement attached hereto and executed on behalf of the United States of America, represented by the Maritime Administrator, acting for the Secretary of Commerce, by a duly authorized Underwriting Agent pursuant to prior written or telegraphic instructions from the Maritime Administrator or by publication of an amendment to the Open Cargo Policy form in the FEDERAL REGISTER. In the latter event such amendment shall become effective upon the date of the publication of the amendment in the FEDERAL REGISTER or upon such date as may be specified therein: Provided, however, That no amendment which is restrictive in effect upon an Assured shall become effective prior to 48 hours after the date of such publication and no such restrictive amendment shall affect any shipments which shall have attached hereunder prior to the effective date of such amendment. In the event that the Assured is unwilling to accept any amendment to this policy, he shall have the option of terminating this policy as of the effective date of such amendment upon written or telegraphic notice to the Maritime Administrator through the Underwriting Agent prior to such effective date.

In witness whereof, the Maritime Administrator, acting for the Secretary of Commerce, has signed this policy, but this policy shall

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Address of Underwriting Agent for receiving notices of loss

§ 308.518 Standard optional endorsement No. 1, Form MA-300-A.

Standard Optional Endorsement No. 1 limits the amount payable for the loss of goods to the actual bona fide pecuniary loss to the Assured, exclusive of any allowance for anticipated or accrued profit arising out of the insured venture. An Assured may elect to have his Open Cargo Policy endorsed with Standard Optional Endorsement No. 1 applicable (a) on all shipments, or (b) on all outward shipments, or (c) on all inward shipments, or (d) on named commodities except goods sold by the Assured prior to loading on board the overseas vessel and shipped for the account and at the risk of third persons other than a branch subsidiary or affiliate of the Assured. When an Assured has elected to have Standard Optional Endorsement No. 1 made applicable to certain named commodities he may not change to a different basis of valuation for those commodities until after he has given ninety (90) days written notice to the Maritime Administrator through the Underwriting Agent of his election to make the change. Application for Standard Optional Endorsement No. 1 may be made to the Underwriting Agent who is authorized to issue the endorsement without prior approval of the Maritime Administrator. The following is

the Standard Form of Optional Endorsement No. 1:

Form MA-300-A (7-54)

UNITED STATES OF AMERICA

DEPARTMENT OF COMMERCE
MARITIME ADMINISTRATION

STANDARD OPTIONAL ENDORSEMENT NO. 1 This endorsement is attached to and made a part of War Risk Open Cargo Policy No. WROC issued to:

1111)

The terms and conditions as set forth below shall supersede and nullify the clauses of the policy insofar as such clauses are inconsistent with the clauses set forth below:

CLAUSE A. Limits on amount payable for loss. Clause 9 of the Open Cargo Policy is hereby deleted and the following substituted therefor:

CLAUSE 9. Limits on amount payable for loss-(a) Actual pecuniary loss. In the event of loss, the Assured shall file a declaration (under the penalties of perjury) stating that the amount claimed does not exceed the actual bona fide pecuniary loss to the Assured, exclusive of any allowance for anticipated or accrued profits arising out of the insured venture. If claim is filed by the Assured named herein on behalf of any other person at interest, the declaration shall include a statement that the amount collectible does not exceed the amount which would have been collectible by the Assured named herein if at the time of the loss the Assured named herein had full interest in the insured goods. If this policy is issued to an agent for account of a principal named herein, both the agent and the named principal shall be required to sign the declaration provided for in this Clause.

(b) Sales price less discounts. If the lost or damaged goods were shipped by, to, or at the direction of the Assured and were sold by the Assured prior to loading on board the overseas vessel (1) on terms requiring the Assured to provide war risk insurance to the port of discharge, or (2) with respect to which written or cabled instructions to provide war risk insurance to the port of discharge have been received by the Assured from the purchaser prior to loading of the goods on board the overseas vessel, and which were shipped for the account and at the risk of third persons other than a branch, subsidiary or affiliate of the Assured, the named Assured shall file a declaration (under the penalties of perjury), in lieu of the declaration required by paragraph (a) of this clause, stating that the amount claimed does not exceed the actual bona fide sales price less all discounts, plus the costs of marine insurance, transportation and expenses incidental thereto, and war risk insurance with respect to the lost or damaged goods if such items are not included in the sales price. The claim shall be filled by the named Assured unless otherwise permitted in writing

by the Maritime Administrator for good cause shown.

(c) Criminal code. The declarations required to be filled pursuant to this Clause shall be subject to the United States Criminal Code which makes it a criminal offense for any person knowingly to make a false statement or representation to, or to conceal a material fact from, any department or agency of the United States as to any matter within its jurisdiction (18 U. S. C. 1001), or to file a false, fictitious or fraudulent claim against the United States (18 U. S. C. 287).

CLAUSE B. Effective date. This endorsement shall be effective on all shipments made on or after

(a) Under ocean bills of lading dated on or after said date, or

(b) If ocean bills of lading are not issued, under equivalent shipping documents dated on or after said date, or

(c) If no ocean bills of lading or equivalent shipping documents are issued, or if such documents are undated, laden on overseas vessel on or after said date.

§ 308.519

Standard optional endorsement No. 2, Form MA-300-B. Standard Optional Endorsement No. 2 amends the policy to cover shipments made to the Assured or shipped by the Assured as agent for the account and risk of a principal. Application for Standard Optional Endorsement No. 2 may be made to the underwriting agent, who is authorized to issue the endorsement without prior approval of the Maritime Administrator. The following is the Standard Form of Optional Endorsement No. 2:

Form MA-300-B (7-54)

UNITED STATES OF AMERICA

DEPARTMENT OF COMMERCE
MARITIME ADMINISTRATION

----

STANDARD OPTIONAL ENDORSEMENT NO. 2 This endorsement is attached to and made a part of War Risk Open Cargo Policy No. WROC issued to: The terms and conditions as set forth below shall supersede and nullify the clauses of the policy insofar as such clauses are inconsistent with the clauses set forth below:

CLAUSE A. Agent for principal. This policy covers all shipments otherwise coming within the scope of this policy but shipped to or consigned to the Assured, or shipped by the Assured, and for the account and risk of

(herein called the "Principal”). The Assured warrants that he is a duly authorized agent of the Principal for the purposes of the insured transaction. The Assured warrants that closing reports as provided for by the terms of this policy and by the terms of General Order 75 of the Maritime Administration and supplements

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