(8.) On goods, the valuation of which has been fradulently

made.

1.) B. Bk. II., 176, F. 347, H. 599, 600, I. 607 (2), P. 600 (2), Sw. 188 (3). Arn. 40, 88.

(3.) B. Bk. II., 168 diff., G. 784, H. 599, I. 607 (1), P. 600 (1), Sw. 188 (1). Arn. 42-45, 89 diff.

(4.) H. 599, P. 600 (3), R. 1236, Sw. 188 (2), 216. Arn. 712.

(5.) H. 599 P. 600 (3). Arn. 688-697.

(6.) B. Bk. II., 177, F. 349, G. 817, 818, Sw. 272, 218, 219. Arn. 408.

(7.) B. Bk. II., 177, 182, F. 351, G. 817, I. 614, R. 1255 (g), 1256, Sw. 272, 218, 219. Arn. 367.

(8.) B. Bk. II., 169, 188, F. 348, I. 428, R. 1235 (a). Arn. 301, 302.

782. If several insurances have been made without fraud on the same thing, the first only will be effective, if it covers the whole value. The subsequent insurers are free from liability, and will receive per cent. of the sum insured.

If the first policy does not cover the whole value of the thing insured, the liability for the residue will fall on subsequent insurers, according to the date of the execution of the policies.

B. Bk. II., 189, F. 359, G. 790-792, 900, H. 277, I. 426, 427, R. 1260, Sw. 273. Arn. 328, 329 diff.

See "Nuevo Primer Barreras," 3 R.I.D.M. 222.

783. The assured is not absolved from payment of the premiums in full to the several insurers if he has not given the later ones information of the rescission of their contracts prior to the arrival of the article insured at its port of destination.

H. 281 diff., R. 1260.

Arn. 331.

784. An insurance that is made after the loss, damage or safe arrival of the thing insured at its port of destination, will be null whenever it may be reasonably presumed that notice of one or other of the events has reached any one of the contracting parties.

This presumption exists when the notice has been published in any place, and a sufficient time has elapsed

for communication by post or telegraph with the place where the insurance is made, without prejudice to other means of proof that the parties can make use of.

B. Bk. II., 196, F. 365, 366, G. 789, H. 269, 270, 597, I. 430, R. 1235 (b), Sw. 209, 211I.

Arn. 235. Bradford v. Symondson, 7 Q.B.D. 456.

785. A contract of insurance on good or bad news is not annulled unless it is proved that one of the contracting parties knew, at the time of making the contract, the result of the matter hoped for or feared.

If this is proved, the person committing the fraud will give up to the other party to the contract one-fifth part of the sum insured, without prejudice to any criminal liability there may be.

F. 367, H. 598.

786. If the person making an insurance, with knowledge of the total or partial loss of things insured, is acting on behalf of another person, he will be personally liable for his actions as if he was acting on his own behalf, and if, on the other hand, the agent is ignorant of the fraud committed by the assured principal, all liabilities are on the latter, but the agent is bound to pay the agreed premium.

The same rule governs with regard to an insurer who makes a contract by means of a broker when he knows that the goods are in safety.

787. If, whilst the goods are at risk, the insurer or the assured are pronounced bankrupt, both have a right to require bail, the one to cover the liability and the other to ensure the payment of the premium, and if the assignee in bankruptcy refuses to give it within three days of the demand the contract is rescinded.

If an accident happens within the three days and without bail having been given, there is no right to an indemnity nor for payment of the premium.

F. 346, G. 903, H. 285, I. 433, R. 1266.

Arn. 106, 107.

788. If, where a fraudulent contract of insurance has been made by several insurers, one or more have acted in good faith, these latter have a right to get the premium in full from those who have acted fraudulently, the assured being free from all liability. Similar arrangements will apply as between assured persons and insurers where some of them are the authors of the fraudulent insurance.

(V.)

Of Abandonment of Things Insured.

787. The assured may abandon the things insured to the insurer, and demand sums out of the insurance money from the insurer:

(1.) In case of shipwreck.

(2.) On condemnation of the ship by reason of stranding, breaking up, or any other peril of the sea.

(3.) On capture, embargo, or detention by virtue of the national or a foreign government.

(4.) On the total loss of the things insured, understanding by that a diminution to the extent of three-quarters of the insured value.

Other damages are deemed to be Average losses, and are borne by the proper people, in accordance with the conditions of the insurance and the provisions of the Code.

An abandonment cannot proceed in either of the first two cases if the vessel wrecked, stranded, or condemned can be got off and got afloat and repaired so as to continue the voyage to its port of destination, unless the cost of repairs exceeds three-quarters of the value at which the vessel is insured.

B. Bk. II., 199 diff., 201, 222, F. 369, 371, 389, G. 865, H. 663, 664, I. 632, P. 616, R. 1247, Sw. 259.

Arn. II, 953.

See "Nuevo Primer Barreras," 3 R.I.D.M. 222.

790. On proof of the restoration of the ship to a seaworthy condition, the insurers are only liable for the expenses caused by the stranding and any other damage that the ship has sustained.

H. 664.

Arn. 972.

791. In cases of shipwreck and capture the assured is bound to use all diligence that the circumstances demand to save and recover the things that are lost, without prejudice to an abandonment made at a proper time, and the insurer must repay the lawful expenses of such salvage, as far as the value of the things salved goes, on which such expenses are a lien in default of payment.

B. Bk. II., 221, 224, F. 381, G. 823, 874, H. 655, 665, I. 629, 641, R. 1253. Arn. 363, 982.

792. If the vessel is found to be irreparable, the assured must give notice to the insurer, by telegraph if possible, and if not, then by first post after receipt of the news. Those interested in the cargo who are at the spot, or, in their absence, the captain will try by all possible means to convey the cargo to its port of destination, in accordance with the provisions of this Code, in which case, risks and expenses of discharge, warehousing, reshipping and transshipping, excess of freight, and all other charges on the effects insured up to the delivering in the place mentioned in the policy, are all on account of the insurer.

B. Bk. II., 223, 226, F. 390—394, G. 822, 865, I. 634, 635, P. 618, R. 1244, 1262, Sw. 208, 258.

Arn. 960.

793. Without prejudice to what is laid down in the preceding Article, the insurer has a period of six months to get the goods to the destination if the condemnation takes place in European waters between the Sound and the Bosphorus, and of one year if it occurs in a more distant place, such term commencing from the day on which the assured has given notice of the disaster.

B. Bk. II., 206, 227, F. 394, I. 634, 635, P. 618, Sw. 258.

794. If, notwithstanding every effort of those interested in the cargo, and of the captain and insurers, to convey the goods to their port of destination, in accordance with the preceding Articles, they cannot get a vessel suitable to carry them on, the assured owner may abandon the said goods. B. Bk. II., 227, F. 394, I. 634, 635, P. 618, S. 258.

795. In case of an interruption of the voyage by an embargo or forcible detention of the vessel, the assured is bound to communicate the facts as soon as he gets notice of them, and he cannot avail himself of proceeding to abandon until the terms fixed by Art. 793 have expired.

He is, moreover, bound to give the insurers whatever assistance is in his power towards raising the embargo, and he must take all proper steps to this end himself, if in consequence of the insurers being in a distant country he cannot act in unison with them.

B. Bk. II., 220, 221, F. 387, 388, H. 654, 655, I. 629, 636, P. 619, Sw. 261. Arn. 1040.

796. In an abandonment of a ship, the freight of goods saved is deemed to be included, and when this is paid in advance, it is considered as belonging to the insurers, reserving the rights of other creditors in conformity with Art. 580.

G. 872, Sw. 265 diff.

797. Notice will be held to have been received so as to allow the regulations of Art. 793 to become operative as soon as it has been published, whether by means of newspapers or by commonly accredited report amongst merchants at the place of residence of the assured, or by proof that he has received news of the disaster by letter or telegram from the captain, consigner, or other correspondent.

Arn. 960.

798. The assured, nevertheless, has a right to abandon when in the case of ordinary voyages one year, and in long voyages two years have elapsed without receipt of