Section 1971 Of Article 5. Loss In Marine Insurance From California Insurance Code >> Division 2. >> Part 1. >> Chapter 1. >> Article 5.
1971
. In marine insurance, after abandonment of the subject matter
of insurance or of any particular portion thereof which is separately
valued by the policy or otherwise separately insured, in a case
where the cause of the loss is a peril insured against the insured
may recover for a total loss, as described in section 1963, if:
(a) More than half in value of the subject matter is actually lost
by such 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 a prudent man 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 and
without incurring an expense to the insured of more than half the
value of the subject matter or a risk which a prudent man would not
take under the circumstances. But freightage can not in any case be
abandoned unless the ship also is abandoned.