Page:United States Statutes at Large Volume 47 Part 1.djvu/1312

 1288 R EINSU RANCE Reinsurance . SEC. 1236. REINSURANCE, wHAT .-A contract of reinsurance is one Definition. by which an insurer procures a third person to insure him against loss or liability by reason of such original insurance. Disclosures required. SEC. 1237. DISCLOSURES REQUIRED .-Where an in su rer obtains rein- surance, he must communicate all the representations of the original insured, and also all the, knowledge and information he possesses, whether previously or subsequently acquired, which are material to the risk. Rein suran ce pr e sumed to be against • SEC. 1238 . REINSURANCE PRESUMED TO BE AGAINST LIABILITY :A liability. reinsurance is presumed to be a contract of indemnity against liability and not merely against damage. ninterest. insured has SEC. 1239. ORIGINAL INSURED HAS NO INTEREST .-The original insured has no interest in a contract of reinsurance. FIRE INSURANCE. Ante, p. 1279. Ante, p . 1147 . Alteration increasing risk. Not increasing risk. Acts of Insured. Measu re of indem- nity. "Value of interest in policy; how fixed ; total or partial loss . 72d CONGRESS . SESS . II. CH. 128. FEB RU ARY 27, 1933 . 2 So ill original . CH APTER 57 .-FIRE INSURANCE . Cros s Ri„OEs Chapter 56 of thi s code is also applicable to fire insurance, see section 1151. For eign insur ance compa nies, see secti ons 176 to 181.3 SEC. 1240 . ALTERATION INCREASING RISK .-An alteration in the use or condition of a thing insured from that to which it is limited by the policy, made without the consent of the insurer, by means within the control of the insured, and increasing the risk, entitles an ins ur er to re sci nd a contract of fir e insurance . SEC. 1241. ALTERATION NOT INCREASING R I SK : An al ter at ion in the use or condition of a thing insured from that to which it is limited by the policy, which does not increase the risk, does not affect a contract of fire insurance . SEC . 1242. ACTS of INsuRED.-A contract of fire insurance is not affect ed by any act of the insu red s ubseq uent to the exe cutio n of the policy, which does not violate its provisions, even though it increases the risk and is the c ause ofa loss. SEC. 1243. MEASURE O F I NDEMN rrY.-If there is no valuation in the policy, the measure of indemnity in an insurance against fi re is the expense it would be to the insured at the time of the commencement of the fire to replace the thing lost or injured in the condition in which it was at the time of the injury but the effect of a valuation in a policy of fire insurance is the same as in a policy of marine insurance. SEC. 1244. VALUE OF INTEREST IN POLICY OF INSURANCE ; HOW MAY BE FIXED ; TO TAL OR PARTIAL LOSS:Whenever the insured desires to have a valuation named in. his pol icy, insur ing any bu ildin g or structure against fir e, he may re qui re su ch building or structure to be examined by the insurer, and the value of the insured 's interest therein shall be thereupon fixed by the parties . The cost of su ch examination shall be paid for by the insured. A clause shall be inserted in such policy stating substantially that the value of the insured's interest in s uch building or structure has bee n thu s fixed. In the absence of any change increasing the risk without the consent of the insurer or of fr aud on the pa rt of the insured, then, in ca se of a total loss under such policy, the whole amount so insured upon the insured's interest in such building or structure, as stated in the policy up on which the insurers have received a premium, shall be paid, and in case of a partial loss the full amount of the partial los s shall - be so paid, and in case there are two or more policies coveiiiig the insured's interest therein, each policy shall contribute