the carrier shall not provide for any payment by the carrier on account of solicitation for or stimulation of insurance business. [§ 1209 (a)(2)] in Treasury. SEC. 1208. (a) The Secretary shall create an insurance Insurance fund fund in the Treasury to enable him to carry out the pro- 46 U.S.C. 1288. visions of this title. Moneys appropriated by Congress to carry out the provisions of this title and all moneys received from premiums, salvage, or other recoveries and all receipts in connection with this title shall be deposited in the Treasury to the credit of such fund. Payments of return premiums, losses, settlements, judgments, and all liabilities incurred by the United States under this title shall be made from such fund through the Division of Disbursement, Treasury Department. Upon the request of the Secretary of Commerce, the Secretary of the Treasury may invest or reinvest all or any part of the fund in securities of the United States or in securities guaranteed as to principal and interest by the United States. The interest and benefits accruing from such securities shall be deposited to the credit of the fund. (b) Such sums as shall be necessary to carry out the provisions of this title are authorized to be appropriated to such fund. War risk in- surance fund. 64 Stat. 775. 64 Stat. 775. policies, etc. ment. Issuance of Claims settle 70 Stat. 984. 46 U.S.C. 1289. SEC. 1209. (a) (1) The Secretary, in the administration of this title, may issue such policies, rules, and regulations as he deems proper and may adjust the pay losses, compromise and settle claims, whether in favor of or against the United States and pay the amount of any judgment rendered against the United States in any suit, or the amount of any settlement agreed upon, in respect of any claim under insurance authorized by this title. (2) In respect of hull insurance, the valuation in the Valuation. policy for actual or constructive total loss of the vessel insured shall be a stated valuation (exclusive of National Defense features paid for by the Government) determined by the Secretary which shall not exceed the amount that would be payable if the vessel had been requisitioned for title under section 902 (a) at the time of the attachment of the insurance under said policy: Provided, That 46 U.S.C. 1242. the insured shall have the right within sixty days after Constructionthe attachment of the insurance under said policy, or vessels. within sixty days after determination of such valuation by the Secretary, whichever is later, to reject such valuation, and shall pay, at the rate provided for in said policy, premiums upon such asserted valuation as the insured shall specify at the time of rejection, but such asserted valuation shall not operate to the prejudice of the Government in any subsequent action on the policy. In the event of the actual or constructive total loss of the vessel, if the insured has not rejected such valuation the amount of any claim therefor which is adjusted, compromised, settled, adjudged, or paid shall not ex- P.L. 88–478. subsidized 46 U.S.C. 1212. Rejection of valuation. insurance. Limitations, 46 U.S.C. 1289. [§ 1209 (a)(2)] 46 U.S.C. 1242-1. 69 Stat. 231. 68 Stat. 426. 67 Stat. 381. 66 Stat. 414. 65 Stat. 286. 65 Stat. 60. Customary commercial practice. Amendment of 1281-1294. 46 U.S.C. 1289. Forms and policies. ceed such stated amount, but if the insured has so rejected such valuation, the insured shall be paid as a tentative advance only, 75 per centum of such valuation so determined by the Secretary and shall be entitled to sue the United States in a court having jurisdiction of such claims to recover such valuation as would be equal to the just compensation which such court determines would have been payable if the vessel had been requisitioned for title under section 902 (a) at the time of the attachment of the insurance under said policy: Provided, That in the event of an election by the insured to reject the stated valuation fixed by the Secretary and to sue in the courts, the amount of the judgment will be payable without regard to the limitations contained in the twelfth paragraph under the heading Maritime Activities in title I of the Department of Commerce and Related Agencies Appropriation Act, 1956, in the tenth paragraph under the heading Maritime Activities in title III of the Department of State, Justice, and Commerce, and the United States Information Agency Appropriation Act, 1955, in the eleventh paragraph under the heading "MARITIME ACTIVITIES" in title III of the Department of Justice, State, and Commerce Appropriation Act, 1954, the tenth paragraph under the heading "OPERATING DIFFERENTIAL SUBSIDIES" in title II of the Independent Offices Appropriation Act, 1953, the corresponding paragraphs of the Independent Offices Appropriation Act, 1952, and the Third Supplemental Appropriation Act, 1951, although the excess of any amounts advanced on account of just compensation over the amount of the court judgment will be required to be refunded. In the event of such court determination, premiums under the policy shall be adjusted on the basis of the valuation as finally determined and of the rate provided for in said policy.39 (b) The Secretary may prescribe and change forms and policies, and fix, adjust, and change the amounts insured and rates of premium provided for in this title. (c) The Secretary, in administering this title, may exercise his powers, perform his duties and functions, and make his expenditures, in accordance with commercial practice in the marine insurance business. Except as authorized in subsection (d) of this section, no insurance broker or other person acting in a similar intermediary capacity shall be paid any fee or other consideration by the Secretary by virtue of his participation in arranging any insurance wherein the Secretary directly insures any of the risk thereof. 39 Public Law 88-478 (approved August 22, 1964) struck out of subsection (a) of this section two provisos relating to valuation of construction subsidy ships. Section 2 of that public law provides as follows: "SEC. 2. The amendments made by this Act shall be applicable to war risk insurance coverage attaching after the date of enactment." See also sec. 4 of Public Law 958, 84th Cong., which reads: "SEC. 4. All war-risk insurance issued under title XII of the Merchant Marine Act, 1936, which is in force on the date of the enactment of this Act shall, as of the beginning of such date, be deemed to have been amended to conform to the requirements of section 1209 of the Merchant Marine Act, 1936, as amended by this Act unless the insured, within ten days after such date, objects to such amendment." [§ 1212] of agents. (d) The Secretary may, and whenever he finds it prac- Employment tical to do so shall, employ domestic companies or groups of domestic companies authorized to do a marine insurance business in any State of the United States, to act as his underwriting agent. The Secretary may allow such companies or groups of companies fair and reasonable compensation for servicing insurance written by such companies or groups of companies as underwriting agent for the Secretary. The services of such underwriting agents may be utilized in the adjustment of claims under insurance provided by this title, but no claim shall be paid unless and until it has been approved by the Secretary. Such compensation may include an Appointment allowance for expenses reasonably incurred by such agent, but such allowance shall not include a payment by such agent on account of solicitation for or stimulation of insurance business. (e) The Secretary without regard to the laws, rules, or regulations relating to the employment of employees of the United States, may appoint and prescribe the duties of such number of experts in marine insurance as he deems necessary under this title. of experts. mental facilities. (f) The Secretary with the consent of any executive Use of departdepartment, independent establishment, or other agency of the Government, including any field service thereof, may avail himself of the use of information, services, facilities, officers, and employees thereof in carrying out the provisions of this title. SEC. 1210. This title shall not affect rights of seamen under existing law. SEC. 1211. The Secretary shall include in his annual report to Congress a detailed statement of all activities and of all expenditures and receipts under this title for the period covered by such report. SEC. 1212. Upon disagreement as to a loss insured under this title, suit may be maintained against the United States in admiralty in the district in which the claimant or his agent resides, and this remedy shall be exclusive of any other action by reason of the same subject matter against any agent or employee of the United States employed or retained under this title. If the claimant has no residence in the United States, suit may be brought in the District Court of the District of Columbia or in such other district court in which the Attorney General of the United States agrees to accept service. Such suits shall be heard and determined under the provisions of an Act entitled "An Act authorizing suits against the United States in admiralty, suits for salvage services, and providing for the release of merchant vessels belonging to the United States from arrest and attachment in foreign jurisdiction, and for other purposes", approved March 9, 1920, as amended (known as the Suits in Admiralty 46 U.S.C. 1290. Annual report 46 U.S.C. 1291. to Congress. P.L. 89-348, 79 Stat. 1310. Suit on claims for losses. 46 U.S.C. 1292. [§ 1212 to end] Additional insurance. 46 U.S.C. 1293. Authority expires September 7, 1970. P.L. 89-89, 79 Stat. 264. Act). All persons having or claiming or who might have an interest in such insurance, may be made parties either initially or upon the motion of either party. In any case where the Secretary acknowledges the indebtedness of the United States on account of such insurance, and there is a dispute as to the persons entitled to receive payment, the United States may bring an action in the nature of a bill or interpleader against such parties, in the District Court for the District of Columbia, or in the district court of the district in which any such person resides. In such actions any party, if not a resident of or found within the district, may be brought in by order of court served in such reasonable manner as the court directs. If the court is satisfied that persons unknown might assert a claim on account of such insurance, it may direct service upon such persons unknown by publication in the Federal Register. Judgment in any such suit shall discharge the United States from further liability to any parties to such action, and to all persons when service by publication upon persons unknown is directed by the court. The period within which suits may be commenced contained in said Suits in Admiralty Act shall, if claim be filed therefor within such period, be suspended from such time of filing until the claim shall have been administratively denied by the Secretary and for sixty days thereafter: Provided, however, That such claim shall be deemed to have been administratively denied if not acted upon within six months after the time of filing, unless the Secretary for good cause shown shall have otherwise agreed with the claimant. SEC. 1213. A person having an insurable interest in a vessel may, with the approval of the Secretary, insure with other underwriters in an amount in excess of the amount insured with the Secretary of Commerce, and in that event the Secretary of Commerce shall not be entitled to the benefits of such insurance. SEC. 1214. The authority of the Secretary to provide insurance and reinsurance under this title shall expire 20 years from the date of enactment [September 7, 1950] of this title. MERCHANT SHIP SALES ACT OF 1946 [As amended through the 89th Congress, 1st session] [60 Stat. 41] [50 U.S.C. App. 1735] [PUBLIC LAW 321-79TH CONGRESS] [CHAPTER 82-2D SESSION] AN ACT To provide for the sale of surplus war-built vessels, and for other Merchant Ship purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the "Merchant Ship Sales Act of 1946." Sales Act of 1946. DECLARATION OF POLICY 1735. SEC. 2. (a) It is necessary for the national security and 50 U.S.C. App. development and maintenance of the domestic and the export and import foreign commerce of the United States that the United States have an efficient and adequate American-owned merchant marine (1) sufficient to carry its domestic water-borne commerce and a substantial portion of its water-borne export and import foreign commerce and to provide shipping service on all routes essential for maintaining the flow of such domestic and foreign water-borne commerce at all times; (2) capable of serving as a naval and military auxiliary in time of war or national emergency; (3) owned and operated under the United States flag by citizens of the United States; (4) composed of the best-equipped, safest, and most suitable types of vessels, constructed in the United States and manned with a trained and efficient citizen personnel; and (5) supplemented by efficient American-owned facilities for shipbuilding and ship repair, marine insurance, and other auxiliary services. (b) It is hereby declared to be the policy of this Act to foster the development and encourage the maintenance of such a merchant marine. 117 |