PUBLIC LAWS-CH. 240 -APR . 11 , 1942 [CHAPTER 240] April 11, 1942 AN ACT [u. R. 65 54] To amend war-risk insurance provisions of the Merchant Marine Act, 1936, as [Public Law 523] amended, in order to expedite ocean transportation and assist the war effort. Be it enacted by the Senate and House of Representatives of the Act, 1h93 anend-e United States of America in Congress assembled, That Subtitle- mentst. Insurance of title II of the Merchant Marine Act, 1936, as amended 49 Stat. 1985;54 N Stat. 689. (Public, Numbered 677, Seventy-sixth Congress), is hereby amended, 1il8 S. C. § 1128- effective as of April 1, 1942, to read as follows: Anle, p. 140. Post, p. 217 . "SU BTI TLE-INSURANCE Marine war-risk in- "SEC. 221 . (a) Until six months after the termination of the surance and reinsur- ance and marine rein- present war is proclaimed or until such earlier date as the President rovision of, by may designate, the Commission is authorized to provide marine Maritime Oommis- insurance and reinsurance against loss or damage by the risks of war and reinsurance against loss or damage by marine risks, as prescribed in this subtitle, whenever it appears to the Commission that (1) such insurance adequate for the needs of transportation in the water-borne commerce of the United States and its Territories and possessions (including the Philippine Islands, the Canal Zone, and any bases or lands leased or occupied by or on behalf of the United States), or of other transportation by water or other vessel services deemed by the Commission to be in the interest of the war effort or the domestic economy of the United States, cannot be obtained on reasonable terms and conditions from companies authorized to do an insurance business in a State of the United States, or (2) the furnishing by the Commission of such insurance or rein- surance with respect to any such transportation or other vessel services at nominal or other rate basis would be of material benefit to the war effort, or (after consultation with the Office of Price Administration or other agencies) to the domestic economy of the United States, or (after consultation with the Secretary of the Navy or the Secretary of War) is necessary or advisable for military or Prosieo. naval reasons: Provided,That there shall be reported on the last day of each calendar month to the chairman of the Committee on Com- merce of the United States Senate, and the chairman of the Com- mittee on Merchant Marine and Fisheries of the House, the insur- ance or reinsurance written under clause (2) of this subsection (a), during the preceding month, together with the rates and the reasons for such rates and such insurance and reinsurance. Mrisne and war "(b) There shall be in the Treasury of the United States a revolving fund to be known as the marine and war-risk insurance fund (hereinafter referred to as the fund), to be used for carrying out the provisions of this subtitle, and to be constituted of such sums as may be appropriated to such fund and of moneys and receipts thppropriation au- credited thereto as herein provided. There are hereby authorized Post, p.310. to be appropriated to such fund such sums as may be necessary to carry out the provisions of this subtitle. All moneys received from premiums and from salvage or other recoveries, and all receipts in connection with this subtitle, shall be deposited to the credit of such fund. Payments of return premiums, losses, settlements, judgments, and all liabilities incurred by the United States under this subtitle shall be made from such fund. Scope of insurance. "SEC. 222. The Commission may insure against loss or damage by the risks of war, persons, property, or interests, as follows: Classes ovssesls. "(a) (1) American vessels (including vessels under construction), (2) vessels registered under the law of the Philippine Islands, (3) foreign-flag vessels owned by citizens of the United States (as said 214 [56 STAT.
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