What is the law of marine insurance?

Maritime law includes the law of marine insurance. Marine insurance is a type of insurance contract intended to protect maritime interests against financial loss due to perils of the sea. It may be divided into two parts: the hull (or “vessel”) and the cargo (or “freight”). This type of insurance provides economic protection to ships, cargo, and marine liabilities. In Washington, maritime law states that an insurer (the insurance company) has a responsibility to provide financial security for the insured vessel and its cargo by agreeing to reimburse the insured if a covered loss occurs. Marine insurance must include a policy that outlines the scope of coverage, the premium amounts, and the terms of coverage. Generally, marine insurance policies are written to include coverage for physical loss of the vessel, its cargo, and any associated liabilities. Coverage may also include risks such as fire, collision, theft, piracy, and/or perils of the sea. The insured must agree to certain responsibilities concerning the vessel and its cargo, such as taking adequate safety precautions, keeping the vessel in proper condition, and filing accurate claims. If the insured fails to fulfill these responsibilities, the insurer may deny a claim. The insured may also be required to carry a “deductible,” which is the amount of money that must be paid out-of-pocket prior to any insurance coverage being applied. In Washington, the law of marine insurance is governed by the Washington Marine Insurance Act and enforced by the state’s Insurance Commissioner. This law establishes minimum standards for marine insurance policies and addresses issues related to the sale and renewal of such policies. It also sets forth rules governing the amount of insurance that should be obtained and provides consumers with the right to choose their own coverage.

What is the law of marine insurance?

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