Neal v. Union Marine Ins.

Citations

• 115 F. 776
• 53 C.C.A. 338
• 1902 U.S. App. LEXIS 4246

Syllabus

<p>1. Marine Insurance — Construction of Policy — Master’s Draft.</p> <p>An open policy of marine insurance provided for insurance from time to time “on advances and for disbursements secured by master’s draft pledging vessel and freight.” A certificate was issued thereunder covering advances made by insured on a master’s draft for disbursements, which did not itself pledge the vessel or freight, but when negotiated by the Insured the managing owner of the vessel gave a writing, which was attached to the draft, making it payable from first freights received at port of destination, and pledging vessel, owners, and-freight for its payment. -Held, that such writing became a part of the draft, the pledge made being within the authority of the managing owner, and brought it within the terms of the policy, notwithstanding the fact that it also pledged the personal credit of the owners.</p> <p>2. Same — Insurance of Collateral.</p> <p>In such case the insured was under no obligation to sue the owners before resorting to the insurance, which covered his collateral pledge of the vessel and freight, where the same was lost through perils of the sea, which was a risk insured against</p>