Maritime Character of Insurance is Determined by Examining Whole Policy

Tuesday, July 05, 2005
The U.S. Court of Appeals for the Second Circuit ruled that the maritime character of an insurance policy is determined by examining the entire policy, not just the portion involved in a dispute. In the instant case, a ship tank cleaning business (through its corporate parent) purchased insurance from defendant insurer’s predecessor in interest. The insurance contract contained a Shiprepairers Legal Liability (SLL) policy coupled with a modified Comprehensive General Liability (CGL) policy. The CGL policy was basically similar to one that might be issued to a shoreside business, but contained a number of maritime modifications. A subcontractor’s employee was injured while cleaning the oil tank of a barge moored in New York Harbor and brought suit against the insured. The insurance company contended that the policy was maritime in nature and that the doctrine of utmost good faith applied. The insured contended that the maritime aspects of the policy were merely incidental and that state insurance law applied. The court held that an insurance policy’s predominant purpose, as measured by the dimensions of the contingency insured against and the risk assumed, determines the nature of the insurance. Since the primary purpose of the policy in this case was to insure against risks related to ship tank cleaning, the court determined that it was maritime insurance. Folksamerica Reinsurance Company v. Clean Water of New York, Inc., No. 03-9124 (2nd Cir. - HK Law)
Maritime Reporter March 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Shipbuilding

Eastern Awarded NYC Firefighter Plate

Monday, April 7, 2014, at the Sea Air Space Exposition at the Gaylord National Convention Center - National Harbor, MD, Brian D’Isernia, Eastern Shipbuilding Group,

ESAB Releases Updated Columbus III

ESAB Welding & Cutting Products announces the release of Columbus III version 1.2, a powerful CAD/CAM programming and nesting software optimized for plasma, oxy-fuel, laser and waterjet cutting.

SSI Rep Sponsors Brazilian Offshore Seminar

SSI and its representatives continue to engage with leaders of the shipbuilding and offshore industry to help increase productivity and solve business challenges.

Finance

BP Spill Compensation Battles Rage On

BP pays billions in compensation but some claims still unpaid; Oil still appearing on beaches in Gulf of Mexico. Company says claims process is flawed, not all oil from spill.

Japan Expresses Concern Over Chinese Ship Seizure

The Japanese government has expressed its concerns to China via diplomatic channels over the seizure of a Mitsui O.S.K. Line Ltd ship by a Chinese court in connection with a case over wartime claims,

China Shipbuilder Rongsheng in 2013 Revenue Freefall

During the year ended 31, December 2013 China Rongsheng, the largest non-state-owned shipbuilder in the PRC, reports that revenue of the Company was RmB1,343.6 million, a decrease of 83.

 
 
Maritime Careers / Shipboard Positions Maritime Security Naval Architecture Navigation Offshore Oil Port Authority Ship Electronics Ship Simulators Shipbuilding / Vessel Construction Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1550 sec (6 req/sec)