Page:United States Statutes at Large Volume 70.djvu/1040

 984

PUBLIC L,AW 968-;AUG. 3, 1956

P u b l i c Law 958 August 3, 1956 IS. 1833]

[70 S T A T.

CHAPTER 929

AN ACT ffQ amend the Merchant Marine Act of 1936, as amended.

Be it enacted by the Senate and House of Representatives of the WM*'rUk**tol^ United States of America in Congress assembled, That section 1209 ance. (a) of the Merchant Marine Act, 1936, as amended (U.S.C. title 46, sec. 1289 (a)), is amended to read as follows: ciM*"<^*^ °'^°"" " ( ^) (^) '^^® Secretary, in the administration of this title, may cfaisns setti©^ issue such policies, rules, and regulations as he deems proper and ™*"*' may adjust and pay losses, compromise and settle claims, whether in favor of or against the United States and pay the amount of any judgment rendered against the United States in any suit, or the amount of any settlement agreed upon, in respect of any claim under insurance authorized by this title. Valuation. «^2) I n respect of hull insurance, the valuation in the policy for actual or constructive total loss of the vessel insured shall be a stated valuation (exclusive of National Defense features paid for by the (xovernment) determined by the Secretary which shall not exceed the amount that would be payable if the vessel had been requisitioned 46 USC 1242. for titJe under section 902(a) at the time of the attachment of the ina^i^a^iWzeVvlT- surance under said policy: Provided, however, That in the case of aeis. 5t construction-subsidized vessel, for the period of insurance prior to requisition for title or use, the valuation so determined shall be reduced by such proportion as the amount of construction subsidy paid with respect to the vessel bears to the entire construction cost and capital improvements thereof ^excluding the cost of national defense features), and for the period of insurance after requisition for use the valuation so determined shall not exceed the amount which would be 46 USC 1212. payable under section 802 in the case of requisition for title or use: uauom*'"*'"^'^^^' t^^ovided further. That the insured shall have the right within sixty days after the attachment of the insurance under said policy, or within sixty days after determination of such valuation by the Secretary, whichever is later, to reject such valuation, and shall pay, at the rate provided for in said policy, premiums upon such asserted valuation as the insured shall specify at the time of rejection, but such asserted valuation shall not operate to the prejudice of the Government in any subsequent action on the policy. I n the event of the actual or constructive total loss of the vessel, if the insured has not rejected such valuation the amount of any claim therefor which is adjusted, compromised, settled, adjudged, or paid shall not exceed such stated amount, but if the insured has so rejected such valuation, the insured shall be paid as a tentative advance only, 75 per centum of such valuation so determined by the Secretary and shall be entitled to sue the United States in a court having jurisdiction of such claims to recover such valuation as would be equal to the just compensation which such court determines would have been payable if the vessel had been requisitioned for title under section 902(a) at the time of the attachment of the insurance under said policy: Provided, however, That in the case of a construction-subsidized vessel, the valuation determined by the court as such just compensation for any period of insurance prior to actual requisition for title or use of the vessel shall be reduced by such proportion as the amount of construction subsidy paid with respect to the vessel bears to the entire construction cost and capital improvements thereof (excluding the cost of national defense features), and for any period of insurance after actual requisition for use, the valuation determined by the court shall be the amount which would have been payable under section 802 in the case of requisition for title: And provided further, That in the event of an election

�