APPENDIX A War Risk Insurance TREASURY DEPARTMENT, September 8, 1914. The appended act of Congress, approved September 2, 1914, establishing a Bureau of War Risk Insurance in the Treasury Department, is published for the information and guidance of all concerned. W. G. McADOO, Secretary of the Treasury. [Public No. 193, 63d Congress-S. 6357.] AN ACT To authorize the establishment of a Bureau of War Risk Insurance in the Treasury Department. Whereas the foreign commerce of the United States is now greatly impeded and endangered through the absence of adequate facilities for the insurance of American vessels and their cargoes against the risks of war; and Whereas it is deemed necessary and expedient that the United States shall temporarily provide for the export shipping trade of the United States adequate facilities for the insurance of its commerce against the risks of war: Therefore Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That there is established in the Treasury Department a bureau to be known as the Bureau of War Risk Insurance, the director of which shall be entitled to a salary at the rate of $5000 per annum. SEC. 2. That the said Bureau of War Risk Insurance, subject to the general direction of the Secretary of the Treasury, shall, as soon as practicable, make provisions for the insurance by the United States of American vessels, their freight and passage moneys, and cargoes shipped or to be shipped therein, against loss or damage by the risks of war, whenever it shall appear to the Secretary that American vessels, shippers, or importers in American vessels are unable in any trade to secure adequate war risk insurance on reasonable terms. SEC. 3. That the Bureau of War Risk Insurance, with the approval of the Secretary of the Treasury, is hereby authorized to adopt and publish a form of war risk policy, and to fix reasonable rates of premium for the insurance of American vessels, their freight and passage moneys and cargoes against war risks, which rates shall be subject to such change, to each port and for each class, as the Secretary shall find may be required by the circumstances. The proceeds of the aforesaid premiums when received shall be covered into the Treasury of the United States. SEC. 4. That the Bureau of War Risk Insurance, with the approval of the Secretary of the Treasury, shall have power to make any and all rules and regulations necessary for carrying out the purposes of this Act. SEC. 5. That the Secretary of the Treasury is authorized to establish an advisory board, to consist of three members skilled in the practices of war risk insurance, for the purpose of assisting the Bureau of War Risk Insurance in fixing rates of premium and in adjustment of claims for losses, and generally in carrying out the purposes of this Act; the compensation of the members of said board to be determined by the Secretary of the Treasury, but not to exceed $25 a day each, while actually employed. In the event of disagreement as to the claim for losses, or amount thereof, between the said bureau and the parties to such contract of insurance, an action on the claim may be brought against the United States in the District Court of the United States, sitting in admiralty, in the district in which the claimant or his agent may reside. SEC. 6. That the Director of the Bureau of War Risk Insurance, upon the adjustment of any claims for losses in respect of which no action shall have been begun, shall, on approval of the Secretary of the Treasury, promptly pay such claim for losses to the party in interest; and the Secretary of the Treasury is directed to make provision for the speedy adjustment of claims for losses and also for the prompt notification of parties in interest of the decisions of the bureau on their claims. SEC. 7. That for the purpose of paying losses accruing under the provisions of this Act there is hereby appropriated, out of any money in the Treasury of the United States not otherwise appropriated, the sum of $5,000,000. SEC. 8. That there is hereby appropriated, for the purpose of defraying the expenses of the establishment and maintenance of the Bureau of War Risk Insurance, including the payment of salaries herein authorized and other personal services in the District of Columbia, out of any money in the Treasury of the United States not otherwise appropriated, the sum of $100,000. SEC. 9. That the President is authorized whenever, in his judgment, the necessity of further war insurance by the United States shall have ceased to exist, to suspend the operations of this Act in so far as it authorizes insurance by the United States against loss or damage by risks of war, which suspension shall be made, at any event, within two years after the passage of this Act, but shall not affect any insurance outstanding at the time or any claims pending adjustment. For the purpose of the final adjustment of any such outstanding insurance or claims, the Bureau of War Risk Insurance may, in the discretion of the President, be continued in existence a further period not exceeding one year. SEC. 10. That a detailed statement of all expenditures under this Act and of all receipts hereunder shall be submitted to Congress at the beginning of each regular session. SEC. II. That this Act shall take effect from and after its passage. (W. R. I. 1.) Instructions to Collectors of Customs and Others Concerned Relating to Applications for Government War Risk Insurance TREASURY DEPARTMENT, September 4, 1914. VESSELS 1. Applications for insurance on vessels under the American flag will be accepted for periods of ninety days or for voyages commencing on and after the date hereof. 2. The only risks that will be covered are those included in the form of policy to be issued by the Bureau of War Risk Insurance, as per copy sent to collectors of customs and others. 3. Applications for vessel policies must be made direct to the Bureau of War Risk Insurance, Treasury Department, Washington, D. C. Policies will be issued in Washington only, and no agent or representative of the Government may bind or otherwise accept insurance unless specially authorized by the bureau at Washington. 4. The rates of premium charged may be had upon application to the Bureau of War Risk Insurance. 5. The Bureau of War Risk Insurance is not bound by any errors made in the calculating of the premium or in filling in the form. Should error be subsequently discovered a readjustment must be made. 6. All applications for insurance must be made personally by the insured or his representative. 7. Collectors of customs and others should familiarize themselves with the conditions appearing on the forms of applications and sample policies sent to them. (W. R. I. 2.) W. G. McADOO, Secretary of the Treasury. Instructions to Collectors of Customs and Others Concerned Relating to Applications for Government War Risk Insurance TREASURY DEPARTMENT, September 4, 1914. CARGO 1. Applications for insurance may be made to the collector of customs or his duly authorized deputy or to the deputy collector in charge of any port of entry. 2. Applications for insurance will be accepted only in respect to cargoes shipped or voyages commencing on and after the date hereof. 3. The only risks that will be covered are those included in the form of policy to be issued by the Bureau of War Risk Insurance, as per copy sent to collectors of customs and others. 4. A policy will be issued for each risk, but only upon confirmed acceptance from the Bureau of War Risk Insurance, Washington, D. C. 5. Each request for insurance must be submitted by the collector or deputy collector to the Bureau of War Risk Insurance by wire, and must state the name of the vessel, the nature of the cargo, amount of insurance required, the destination, and approximate date of sailing. A rate for acceptance will be wired to the collector by the bureau. If the rate quoted is accepted by the applicant, an application shall be made in duplicate upon the form prescribed, the original to be signed by the applicant or his duly authorized representative and the duplicate application to be signed by the collector or his authorized deputy and given to the applicant. The original is to be sent by the first mail to the Bureau of War Risk Insurance at Washington, where a policy will be issued with all possible dispatch and mailed to the collector of customs, who will in turn deliver it to the assured upon his surrender of the duplicate application. 6. No signed application shall be delivered to the assured until the rate quoted by the bureau is accepted; and in no case shall any signed application be delivered until the premium is paid. Checks shall be made payable to the Treasurer of the United States and forwarded with the application. All checks must be certified. 7. The collector of customs shall fully satisfy himself before submitting any war risk that the applicant has marine insurance in an insurance company or companies on the cargo on which he wishes war risk insurance. 8. The amount insured against war risk can not, in any circumstances, exceed the amount insured against marine risks. If the applicant is unable to state definitely the amount to be insured, he shall declare a provisional amount, which may not be increased, but which may be reduced, upon receipt of definite advice, to an amount not less than the total amount insured under marine policies. Premiums shall be paid on this provisional amount, and if the amount is reduced, when final particulars are known, the excess of such premium will be returned to the assured by the Treasury Department. 9. The rate of premium charged will be made from day to day by the Bureau of War Risk Insurance and may be had upon application to the bureau. The rate will vary for the different voyages and the cargoes insured. 10. The Bureau of War Risk Insurance will not be bound by any errors made in the calculation of the premium or in filling in the form. Should error be subsequently discovered, a readjustment must be made. II. All applications for insurance must be made personally by the insurer or his duly authorized representatives. 12. Customs officials should familiarize themselves with the conditions appearing on the forms of applications and sample policies sent to collectors of customs and others. W. G. McADOO, Secretary of the Treasury. |