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shall continue to cover the liability of the Assured to the crew of the insured vessel, subject to its terms and conditions and at an additional premium if so required by the Underwriter, until the crew shall be either discharged or landed at a port or place to which the owners or charterers are obliged to bring them.

(6) If at the natural expiry time of this insurance the vessel is at sea, this insurance will be extended, provided notice be given to the Underwriter as soon as practicable and an additional premium paid, if required, until midnight, G.M.T. of the day on which the vessel enters the next port to which she proceeds and for 24 hours thereafter.

(7) Warranted no cancellation except by mutual consent: Provided, however, That if the vessel shall be requisitioned by the United States on a basis whereby the United States provides the war risk insurance, then this insurance shall terminate and pro rata daily return premium shall be paid. In no other event shall there be any return of premium.

(8) Notwithstanding any of the foregoing provisions, all liabilities covered by the Second Seamen's form of policy are excluded from this insurance.

(9) Warranted free from any claim for loss, damage or expense covered under any commercial policy in effect for the benefit of the assured.

(10) Warranted free from any claim for loss, damage or expense which is or could be covered by a commercial war risk policy containing the American Institute War Risk and Strikes and Automatic Termination and Cancellation Clauses (Time)-Hulls-(March 7, 1961).

Subpart D-Second Seamen's War Risk Insurance

§ 308.300 Amounts of insurance for which application may be made.

An applicant for Second Seamen's war risk insurance shall not state the amount of insurance desired, which shall be as provided in § 308.303.

§ 308.301 Form of application.

Applications submitted shall be in strict accordance with the following form:

Form MA-187 (Revised 5-61)

UNITED STATES OF AMERICA
DEPARTMENT OF COMMERCE
MARITIME ADMINISTRATION

APPLICATION FOR SECOND SEAMEN'S WAR RISK
INSURANCE

Application is made for Second Seamen's War Risk Insurance (1955) pursuant to Title XII of Merchant Marine Act, 1936, as amended, and in accordance with all provisions of law and subject to all limitations thereof:

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In the amount specified in the Second Seamen's War Risk Policy (1955) or as modified by shipping articles, collective bargaining agreements or other applicable employment agreements which are in effect as of the date of a casualty involving the subject vessel. Upon the attachment of this binder, the number of crew members and modified benefits payable as of that date shall be deto clared immediately the Underwriting Agent. Any subsequent changes will be likewise declared.

To attach automatically upon and simultaneously with the outbreak of war (whether there be a declaration of war or not) between any of the following countries: United States of America, United Kingdom, France, the Union of Soviet Socialist Republics, the People's Republic of China; upon occurrence of any prior hostile act or acts by any of the said countries resulting in such outbreak of war and occurring within a period of 90 days preceding such outbreak of war.

To terminate thirty (30) days after the outbreak of war (whether there be a declaration of war or not) between any of the aforesaid countries.

Terms and conditions: Subject to form of policy prescribed by the Maritime Administrator, acting for the Secretary of Commerce.

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The category (one only) of eligibility under which application is made must designated.

☐ (a)

A vessel registered, enrolled or licensed under the laws of the United States; any tug or barge or other watercraft (documented under the laws of the United States, or undocumented) owned by a citizen of the United States, used in essential water transportation within the territorial waters of the United States; and United States citizenowned watercraft in the fishing trade or industry, except when used exclusively in or for sport fishing.

(b) (1)

A foreign-flag vessel under Panamanian, Honduran or Liberian registry, 1500 gross tons and over, self-propelled, and not over twenty years of age (unless authorized by the Maritime Administration), which is subject to an unqualified Contract of Commitment with the United States in form as required by the Maritime Administration, and

which is owned by a U.S. corporation, or a foreign corporation in which a majority of the stock is owned and controlled by United States citizens, whether direct or through intervening corporations, foreign or domestic. Where such intervening corporations are foreign, the ultimate majority ownership and control of the stock of such corporations must be vested in a citizen or citizens of the United States as defined in Section 1201 (d), Merchant Marine Act, 1936, as amended.

☐ (b) (2)

A foreign-flag vessel under Panamanian, Honduran or Liberian registry, 1500 gross tons and over, self-propelled, and not over twenty years of age (unless authorized by the Maritime Administration), which is subject to an unqualified Contract of Commitment with the United States in form as required by the Maritime Administration, and which is owned by a foreign corporation which is not directly or beneficially owned by United States citizens or corporations, but which vessel is under a long-term charter or other long-term contract covering the use of the vessel on terms deemed by the Maritime Administration to subject the vessel to U.S. control in the event of emergency. The charterer of such a vessel must be either a U.S. corporation or a foreign corporation in which a majority of the stock is owned and controlled by U.S. citizens, whether direct or through intervening corporations, foreign or domestic.

Where such intervening corporations are foreign, the ultimate majority ownership and control of the stock of such corporations must be vested in a citizen or citizens of the United States as defined in section 1201 (d), Merchant Marine Act, 1936, as amended. (c)

All other vessels will be insured at the sole discretion of the Maritime Administrator but only when engaged in a service which has been determined by the Maritime Administrator to be in the interest of the national defense or the national economy of the United States.

The applicant warrants with respect to a vessel in category (a) 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.

The applicant further warrants with respect to a vessel in category (b) (1) or (b) (2) that the vessel will maintain its eligibility within its applicable category at all times from and after the issuance of the interim binder, and will be made available to the United States Government upon request in the event of national emergency pursuant to the terms of the Contract of Commitment submitted herewith; and agrees, in this connection, that during the period of the binder and any insurance attaching thereunder, any charter or other contract covering the use of

the vessel during such period 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 herewith.

With respect to a vessel in category (c), the applicant further warrants that at all times such vessel will remain in the approved service which the Maritime Administrator has found to be in the interest of the national economy or the national defense of the United States.

In addition to the aforesaid warranties, the applicant submits certain statements, certificates and/or agreements which are made part of the insurance application, for vessels in the following categories:

Category (b) (1) applications: (a) An executed Contract of Commitment, in form as prescribed in § 308.5, under which applicant commits itself to make the vessel available to the U.S. Government upon request in the event of national emergency on the same terms and conditions as vessels owned by citizens of the United States are available for requisition, for title, or for use, in accordance with the provisions of section 902 (a), Merchant Marine Act, 1936, as amended. In the event this insurance application is determined to be ineligible under the terms of the Maritime Administration's regulations, it is understood that the applicant will be so advised and the executed Contract of Commitment (which is submitted in consideration of the issuance of such insurance) shall be returned to applicant by the Maritime Administration. (b) A certificate of citizenship, in duplicate, executed by the vessel owner establishing that the vessel is owned by a U.S. corporation, or that a majority of the stock of the owning corporation is owned and controlled by U.S. citizens, as defined in section 1201 (d), Merchant Marine Act, 1936, as amended, whether direct or through intervening corporations, foreign or domes

tic. (c) Where such intervening corporations are foreign, an additional certificate in duplicate, shall be executed by each such corporation establishing that the ultimate majority ownership and control of the stock of such corporation is vested in a citizen or citizens of the United States as defined in section 1201 (d), Merchant Marine Act, 1936, as amended. All citizenship certificates shall be in the form prescribed in § 308.4. (d) I prior official action or approval of the Contract of Commitment with the United States is required by the government of the country of vessel's registry as a prerequisite to the execution of such a contract, applicant attaches a certified copy of such official action or approval. If a vessel in category (b) (1) attains twenty years of age on or prior to the effective date of this insurance, applicants agree that the subject insurance shall not attach without Maritime Administration approval.

Category (b) (2) applications: (a) A Contract of Commitment executed by both the owner and charterer in form as prescribed in

§ 308.5, under which they commit themselves to make the vessel available to the U.S. Government upon request in the event of rational emergency on the same terms and conditions as vessels owned by citizens of the United States are available for requisition, for title, or for use, in accordance with the provisions of section 902 (a), Merchant Marine Act, 1936, as amended. In the event this insurance application is determined to be ineligible under the terms of the Maritime Administration's regulations, it is understood that the applicants will be so advised and the executed Contract of Commitment (which is submitted in consideration of the issuance of such insurance) shall be returned by the Maritime Administration. (b) A copy of the long-term charter or other long-term contract covering the use of the vessel and all addenda, certified to be full and complete copies (except as to rate of hire or freight). The charterer also agrees to furnish the Maritime Administration a certified copy of any subsequent amendments to such charter. (c) A certificate of citizenship, in duplicate, executed by the charterer establishing that it is a U.S. corporation, or a foreign corporation in which a majority of the stock is owned and controlled by U.S. citizens, whether direct or through intervening corporations, which may be either foreign or domestic. (d) Where such intervening corporations are foreign, an additional certificate, in duplicate, shall be executed by each such corporation establishing that the ultimate majority ownership and control of the stock of such corporation is vested in a citizen or citizens of the United States as defined in section 1201(d), Merchant Marine Act, 1936, as amended. All citizenship certificates shall be in the form prescribed in § 308.4. (e) If prior official action or approval of the Contract of Commitment with the United States is required by the government of the country of vessel's registry as a prerequisite to the execution of such a contract, applicants attach a certified copy of such official action or approval. If a vessel in category (b) (2) attains twenty years of age on or prior to the effective date of this insurance, applicant agrees that the subject insurance shall not attach without Maritime Administration approval.

Category (c) applications: A copy of the statement of vessel's service previously submitted by the applicant, which was the subject of a finding by the Maritime Administrator that such service is deemed to be in the interest of the national defense or the national economy of the United States.

Warranted free from any claim for loss, damage or expense covered under any commercial policy in effect for the benefit of the assured.

Warranted free from any claim for loss, damage or expense which is or could be covered by a commercial war risk policy containing the American Institute War Risk and Strikes and Automatic Termination and Cancellation Clauses (Time)-Hulls-(March 7, 1961).

The warranties and representations in this application, which are made in consideration of the issuance of the insurance above indicated, shall become a part of and be deemed incorporated in the binder and in any insurance policy issued thereunder, to the same extent as though set out in full in such documents.

Binding fee (not returnable unless application is rejected), $75.00.

Check payable to the order of "Maritime Adm.-Commerce," enclosed herewith.

Rate of premium-to be fixed by the Maritime Administrator, acting for the Secretary of Commerce. Dated

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(Applications on category (a) vessels to be submitted, in duplicate, with required attachments, to the American War Risk Agency, 99 John Street, New York 38, N.Y. Applications on all other vessels to be submitted, in triplicate, with required attachments, to the Division of Insurance, U.S. Maritime Administration, Washington 25, D.C.)

[G.O. 75, 2d Rev., 26 F.R. 4541, May 26, 1961, as amended by Amdt. 10, 81 F.R. 1201, Jan. 29, 1966]

§ 308.302 Issuance of interim binder; its terms and conditions.

Upon acceptance of an application, an interim binder in form as set forth in § 308.305 will be issued and there shall be deemed to be incorporated therein by reference all the terms, conditions, and warranties contained in the application for Second Seamen's war risk insurance (set forth in § 308.301) and the Second Seamen's War Risk Policy (1955) (set forth in § 308.306) to the same extent as if such application and policy were made a part of the binder. The binding fee shall be $75.00.

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that date shall be declared immediately to the Underwriting Agent that issued the binder. Any subsequent changes shall be likewise declared.

§ 308.304 Reporting casualties and filing claims.

All casualties occurring after insurance under a binder has attached shall be reported promptly to, and all claim documents filed with, the Division of Insurance, Maritime Administration, Department of Commerce, Washington, D.C., 20235.

§ 308.305 Standard form of Second Seamen's war risk insurance interim binder.

The following is the standard form of Second Seamen's war risk insurance interim binder:

Form MA-188 (Revised 5-61)

UNITED STATES OF AMERICA

DEPARTMENT OF COMMERCE
MARITIME ADMINISTRATION

SECOND SEAMEN'S WAR RISK INSURANCE
(1955)-INTERIM BINDER NO. SSWR

The United States of America, represented by the Maritime Administrator, acting for the Secretary of Commerce, in consideration of the binding fee and premium provided for herein, hereby insures, in accordance with applicable provisions of law and subject to all limitations thereof, particularly Title XII of Merchant Marine Act, 1936, as amended, against Second Seamen's War Risk liabilities only, subject to the terms, conditions, warranties and representations stated herein or incorporated by reference:

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Attaching automatically (a) upon and simultaneously with the outbreak of war, whether there be a declaration of war or not, between any of the following countries: United States of America, United Kingdom, France, the Union of Soviet Socialist Republics, or the People's Republic of China; or (b) upon and simultaneously with the occurrence of any hostile detonation of any nuclear weapon of war (including any weapon of war employing atomic or nuclear fission and/or fusion or other like reaction or radioactive force or matter) wheresoever or whensoever such detonation may occur and whether or not the vessel may be involved. Terminating thirty (30) days after attachment.

Assured to have privilege of deferring attachment by giving written or telegraphic notice to the Underwriting Agent prior to attachment of risk.

This binder shall automatically expire at midnight, March 7, 1972, G.m.t., unless insurance hereunder has attached prior to that date.

Warranties, terms and conditions. Warranted free from any claim for loss, damage or expense covered under any commercial policy in effect for the benefit of the assured.

Warranted free from any claim for loss, damage or expense which is or could be covered by a commercial war risk policy containing the American Institute Hull War Risks and Strikes Clauses (including Automatic Termination and Cancellation Provisions) for attachment to American Institute Hull Clauses January 18, 1970.

Warranted, as to a vessel in category (a) of the application, that at and from the date of issuance of this binder and for and during the term of any insurance attaching hereunder, such vessel is eligible within its category, and if at any time during the binder period or after insurance attaches such vessel shall cease to be eligible within its category, this binder and any insurance provided hereunder shall automatically terminate at the time of such change, without return of binding fee or premium, unless the Maritime Administration agrees otherwise; and as to a vessel in category (b) (1) or (b) (2) of the application that such vessel will maintain its eligibility within its applicable category at all times from and after the issuance of this interim binder, and will be made available to the U.S. Government upon request in the event of national emergency, pursuant to the terms of the Contract of Commitment executed by the assured; and as to a vessel in category (c) of the application that at all times such vessel will remain in the approved service which the Maritime Administrator found to be in the interest of the national economy or the national defense of the United States; and in the event of the breach of any warranty contained in this paragraph, such binder and any insurance attaching thereunder, shall automatically terminate at the time of such breach, without return of binding fee

or premium, unless the Maritime Administration agrees otherwise.

There shall be deemed to be incorporated herein (a) any other warranties of the applicant (express or implied) and all representations and agreements which are made a part of the application, and (b) all of the terms, conditions and warranties contained in the Second Seamen's War Risk Policy (1955) set forth in § 308.306 hereof (Part 308, Title 46, Code of Federal Regulations). To the extent there is inconsistency between the terms of such Second Seamen's War Risk Policy (1955) and the terms of this binder including the warranties, agreements and representations of the applicant, the terms of the binder together with the warranties, agreements and representations of applicant shall prevail.

Premium: Rate to be fixed promptly after the happening of the event causing the "American Institute Hull War Risks and Strikes Clauses (including Automatic Termination and Cancellation Provisions) for attachment to American Institute Hull Clauses January 18, 1970" 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. Premium shall be paid to the Underwriting Agent that issued the binders by check payable to the order of "Maritime Adm.Commerce."

Claims: Casualties arising after the attachment of insurance hereunder shall be reported promptly to the Division of Insurance, Maritime Administration, Department of Commerce, Washington, D.C., 20235, and all claim documents shall likewise be filed with such Division.

The Underwriting Agent does not, by countersigning this binder or in any other manner, warrant its own authority, or the authority of the Maritime Administrator, acting for the Secretary of Commerce, to issue this instrument, but acts solely under the power conveyed to the Underwriting Agent by the Agreement made with the Maritime Administrator, acting for the Secretary of Commerce.

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The United States of America (herein called the "Underwriter"), represented by the Maritime Administrator (herein called "Administrator"), acting for the Secretary of Commerce, in consideration of the payment by (herein, for identification purposes only, called the "Operator") of a premium of $------, and in accordance with applicable provisions of law and subject to all limitations thereof, particularly Title XII, Merchant Marine Act, 1936, as amended, insures the master, officers and crew, as hereinafter set forth, of the vessel (Official No. -----), during the period described herein commencing on or about

against loss of life, disability (including dismemberment and loss of function), loss of or damage to personal effects, and detention (including the occurrence of other situations hereinafter provided), from the perils and causes hereinafter stated, payable in case of claim in funds current in the United States in accordance with the following schedules and as hereinafter stated. SCHEDULE 1-Loss OF LIFE Master, officers and crew, each_----

$5,000

The amount for which each person is covered by this schedule is the principal sum. SCHEDULE 2-DISABILITY, INCLUDING DIS

MEMBERMENT AND LOSS OF FUNCTION

For disability proximately caused by the risks and perils insured against herein, and which arises within ninety days from the date of the happening of such risks and perils, and for dismemberment and loss of function caused by the risks and perils insured against herein, and which result from

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