CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Assembly Bill No. 1315Introduced by Assembly Member CalderonFebruary 16, 2023 An act to amend Section 1971 of the Insurance Code, relating to insurance. LEGISLATIVE COUNSEL'S DIGESTAB 1315, as introduced, Calderon. Marine insurance.Existing law generally regulates classes of insurance, including marine insurance. Under existing law, an insured may recover for a constructive total loss under a marine insurance policy in specified circumstances, including if the subject matter of the policy is injured to such an extent as to reduce its value more than half.This bill would make technical, nonsubstantive changes to that provision.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 1971 of the Insurance Code is amended to read:1971. In marine insurance, after abandonment of the subject matter of insurance or of any particular portion thereof which that is separately valued by the policy or otherwise separately insured, in a case where if the cause of the loss is a peril insured against the insured may recover for a total loss, as described in section Section 1963, if: if any of the following circumstances is true:(a) More than half in value of the subject matter is actually lost by such the peril, or would have to be expended to recover it from the peril.(b) The subject matter is injured to such an extent as to reduce its value more than half.(c) The subject matter is a ship, and either the contemplated voyage can not be lawfully performed without incurring either an expense to the insured of more than half the value of the ship abandoned or a risk which that a prudent man person would not take under the circumstances.(d) The subject matter is cargo or freightage and the voyage can not be performed, nor another ship procured by the master to forward the cargo, within a reasonable time, with reasonable diligence diligence, and without incurring an expense to the insured of more than half the value of the subject matter or a risk which that a prudent man person would not take under the circumstances. But freightage can not in any case However, freightage cannot be abandoned unless the ship also is abandoned.
CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Assembly Bill No. 1315Introduced by Assembly Member CalderonFebruary 16, 2023 An act to amend Section 1971 of the Insurance Code, relating to insurance. LEGISLATIVE COUNSEL'S DIGESTAB 1315, as introduced, Calderon. Marine insurance.Existing law generally regulates classes of insurance, including marine insurance. Under existing law, an insured may recover for a constructive total loss under a marine insurance policy in specified circumstances, including if the subject matter of the policy is injured to such an extent as to reduce its value more than half.This bill would make technical, nonsubstantive changes to that provision.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO
CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION
Assembly Bill
No. 1315
Introduced by Assembly Member CalderonFebruary 16, 2023
Introduced by Assembly Member Calderon
February 16, 2023
An act to amend Section 1971 of the Insurance Code, relating to insurance.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
AB 1315, as introduced, Calderon. Marine insurance.
Existing law generally regulates classes of insurance, including marine insurance. Under existing law, an insured may recover for a constructive total loss under a marine insurance policy in specified circumstances, including if the subject matter of the policy is injured to such an extent as to reduce its value more than half.This bill would make technical, nonsubstantive changes to that provision.
Existing law generally regulates classes of insurance, including marine insurance. Under existing law, an insured may recover for a constructive total loss under a marine insurance policy in specified circumstances, including if the subject matter of the policy is injured to such an extent as to reduce its value more than half.
This bill would make technical, nonsubstantive changes to that provision.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. Section 1971 of the Insurance Code is amended to read:1971. In marine insurance, after abandonment of the subject matter of insurance or of any particular portion thereof which that is separately valued by the policy or otherwise separately insured, in a case where if the cause of the loss is a peril insured against the insured may recover for a total loss, as described in section Section 1963, if: if any of the following circumstances is true:(a) More than half in value of the subject matter is actually lost by such the peril, or would have to be expended to recover it from the peril.(b) The subject matter is injured to such an extent as to reduce its value more than half.(c) The subject matter is a ship, and either the contemplated voyage can not be lawfully performed without incurring either an expense to the insured of more than half the value of the ship abandoned or a risk which that a prudent man person would not take under the circumstances.(d) The subject matter is cargo or freightage and the voyage can not be performed, nor another ship procured by the master to forward the cargo, within a reasonable time, with reasonable diligence diligence, and without incurring an expense to the insured of more than half the value of the subject matter or a risk which that a prudent man person would not take under the circumstances. But freightage can not in any case However, freightage cannot be abandoned unless the ship also is abandoned.
The people of the State of California do enact as follows:
## The people of the State of California do enact as follows:
SECTION 1. Section 1971 of the Insurance Code is amended to read:1971. In marine insurance, after abandonment of the subject matter of insurance or of any particular portion thereof which that is separately valued by the policy or otherwise separately insured, in a case where if the cause of the loss is a peril insured against the insured may recover for a total loss, as described in section Section 1963, if: if any of the following circumstances is true:(a) More than half in value of the subject matter is actually lost by such the peril, or would have to be expended to recover it from the peril.(b) The subject matter is injured to such an extent as to reduce its value more than half.(c) The subject matter is a ship, and either the contemplated voyage can not be lawfully performed without incurring either an expense to the insured of more than half the value of the ship abandoned or a risk which that a prudent man person would not take under the circumstances.(d) The subject matter is cargo or freightage and the voyage can not be performed, nor another ship procured by the master to forward the cargo, within a reasonable time, with reasonable diligence diligence, and without incurring an expense to the insured of more than half the value of the subject matter or a risk which that a prudent man person would not take under the circumstances. But freightage can not in any case However, freightage cannot be abandoned unless the ship also is abandoned.
SECTION 1. Section 1971 of the Insurance Code is amended to read:
### SECTION 1.
1971. In marine insurance, after abandonment of the subject matter of insurance or of any particular portion thereof which that is separately valued by the policy or otherwise separately insured, in a case where if the cause of the loss is a peril insured against the insured may recover for a total loss, as described in section Section 1963, if: if any of the following circumstances is true:(a) More than half in value of the subject matter is actually lost by such the peril, or would have to be expended to recover it from the peril.(b) The subject matter is injured to such an extent as to reduce its value more than half.(c) The subject matter is a ship, and either the contemplated voyage can not be lawfully performed without incurring either an expense to the insured of more than half the value of the ship abandoned or a risk which that a prudent man person would not take under the circumstances.(d) The subject matter is cargo or freightage and the voyage can not be performed, nor another ship procured by the master to forward the cargo, within a reasonable time, with reasonable diligence diligence, and without incurring an expense to the insured of more than half the value of the subject matter or a risk which that a prudent man person would not take under the circumstances. But freightage can not in any case However, freightage cannot be abandoned unless the ship also is abandoned.
1971. In marine insurance, after abandonment of the subject matter of insurance or of any particular portion thereof which that is separately valued by the policy or otherwise separately insured, in a case where if the cause of the loss is a peril insured against the insured may recover for a total loss, as described in section Section 1963, if: if any of the following circumstances is true:(a) More than half in value of the subject matter is actually lost by such the peril, or would have to be expended to recover it from the peril.(b) The subject matter is injured to such an extent as to reduce its value more than half.(c) The subject matter is a ship, and either the contemplated voyage can not be lawfully performed without incurring either an expense to the insured of more than half the value of the ship abandoned or a risk which that a prudent man person would not take under the circumstances.(d) The subject matter is cargo or freightage and the voyage can not be performed, nor another ship procured by the master to forward the cargo, within a reasonable time, with reasonable diligence diligence, and without incurring an expense to the insured of more than half the value of the subject matter or a risk which that a prudent man person would not take under the circumstances. But freightage can not in any case However, freightage cannot be abandoned unless the ship also is abandoned.
1971. In marine insurance, after abandonment of the subject matter of insurance or of any particular portion thereof which that is separately valued by the policy or otherwise separately insured, in a case where if the cause of the loss is a peril insured against the insured may recover for a total loss, as described in section Section 1963, if: if any of the following circumstances is true:(a) More than half in value of the subject matter is actually lost by such the peril, or would have to be expended to recover it from the peril.(b) The subject matter is injured to such an extent as to reduce its value more than half.(c) The subject matter is a ship, and either the contemplated voyage can not be lawfully performed without incurring either an expense to the insured of more than half the value of the ship abandoned or a risk which that a prudent man person would not take under the circumstances.(d) The subject matter is cargo or freightage and the voyage can not be performed, nor another ship procured by the master to forward the cargo, within a reasonable time, with reasonable diligence diligence, and without incurring an expense to the insured of more than half the value of the subject matter or a risk which that a prudent man person would not take under the circumstances. But freightage can not in any case However, freightage cannot be abandoned unless the ship also is abandoned.
1971. In marine insurance, after abandonment of the subject matter of insurance or of any particular portion thereof which that is separately valued by the policy or otherwise separately insured, in a case where if the cause of the loss is a peril insured against the insured may recover for a total loss, as described in section Section 1963, if: if any of the following circumstances is true:
(a) More than half in value of the subject matter is actually lost by such the peril, or would have to be expended to recover it from the peril.
(b) The subject matter is injured to such an extent as to reduce its value more than half.
(c) The subject matter is a ship, and either the contemplated voyage can not be lawfully performed without incurring either an expense to the insured of more than half the value of the ship abandoned or a risk which that a prudent man person would not take under the circumstances.
(d) The subject matter is cargo or freightage and the voyage can not be performed, nor another ship procured by the master to forward the cargo, within a reasonable time, with reasonable diligence diligence, and without incurring an expense to the insured of more than half the value of the subject matter or a risk which that a prudent man person would not take under the circumstances. But freightage can not in any case However, freightage cannot be abandoned unless the ship also is abandoned.