What is the Insured’s Duty Under a Marine Insurance Policy? It Depends …
The law governing marine insurance in the United States has long been a source of considerable confusion. And if there was once a clear set of principles applicable in such cases, the Supreme Court long ago muddied the waters with their infamous ruling in Wilburn Boat Co. v. Fireman’s Fund Ins. Co., 348 U.S. 310 (1955). That case, involving a fire on a houseboat on an inland man-made lake on the Texas-Oklahoma border, established the “litmus test” for when maritime law should…
Negligent Homicide with Yacht Leads to Loss of Coverage
The U.S. Court of Appeals for the First Circuit ruled that, where the owner of a yacht was convicted of negligent homicide in connection with a fatal collision, the insurance company is not obligated to defend under a policy excluding losses “criminally caused or incurred” by the insured. In the instant case, plaintiff was operating his yacht when it collided with another boat, killing one of the passengers of the boat. He was convicted of negligent homicide for failing to keep a proper lookout. Plaintiff was also sued for wrongful death by the widow and executrix of the deceased. Plaintiff sought declaratory judgment that his yacht insurance company was obligated to defend the wrongful death action.
Legal Notes
President George Bush has signed into law legislation repealing a four year old rule imposing a 50% duty on the cost of routine repairs and maintenance carried out by U.S. merchant mariners while their vessel is at sea. The elimination of the duty, which customs authorities have levied on US-flag carriers since April 2001, represents a victory for the domestic shipowning community. The community has lobbied hard against it since its introduction. President Bush signed into law the Intelligence Reform and Terrorism Prevention Act of 2004 (S. 2845). The major emphasis of the legislation is reform of the U.S. intelligence organization. Other measures, though, may impact the maritime community.
