Chapter 293. To authorize the establishment of a Bureau of War Risk Insurance in the Treasury Department
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CHAP. 293.— An Act To authorize the establishment of a Bureau of War Risk Insurance in the Treasury Department. September 2, 1914.[[S. 6357](/us/bill/63/s/6357).][[Public, No. 193](/us/pl/63/193).] Whereas the foreign commerce of the United States is now greatlyPreamble. impeded and endangered through the absence of adequate facilities for the insurance of American vessels and their cargoes against the risks of war: and Whereas it is deemed necessary and expedient that the United States shall temporarily provide for the export shipping trade of the United States adequate facilities for the insurance of its commerce against the risks of war:
Therefore *Be it enacted by the Senate and House of Representatives of the United Stales of America in Congress assembled*, That there is established inWar Risk Insurance Bureau.Created in Treasury Department.Director. the Treasury Department a bureau to be known as the Bureau of War Risk Insurance, the director of which shall be entitled to a salary at the rate of S5,000 per annum. Sec. 2. That the said Bureau of War Risk Insurance, subject to theTo insure American vessels, etc., against war losses. general direction of the Secretary of the Treasury, shall, as soon as practicable, make provisions for the insurance by the United States of American vessels, their freight and passage moneys, and cargoes shipped or to be shipped therein, against loss or damage by the risks of war, whenever it shall appear to the Secretary that American vessels, shippers, or importers in American vessels are unable in any trade to secure adequate war risk insurance on reasonable terms.
Sec. 3. That the Bureau of War Risk Insurance, with the approvalPolicy and premiums. of the Secretary of the Treasury, is hereby authorized to adopt and publish a form of war risk policy, and to fix reasonable rates of premium for the insurance of American vessels, their freight and passage moneys and cargoes against war risks, which rates shall be subjectRates. to such change, to each port and for each class, as the Secretary shall find may be required by the circumstances. The proceeds of theProceeds of premiums. aforesaid premiums when received shall be covered into the Treasury of the United States.
Sec. 4. That the Bureau of War Risk Insurance, with the approvalRegulations authorized. of the Secretary of the Treasury, shall have power to make any and all rules and regulations necessary for carrying out the purposes of this Act. Sec. 5. That the Secretary of the Treasury is authorized to establishAdvisory board established.Duties. an advisory board, to consist of three members skilled in the practices of war risk insurance, for the purpose of assisting the Bureau of War Risk Insurance in fixing rates of premium and in adjustment of claims for losses, and generally in carrying out the purposes of this Act; the compensation of the members of said board to be deterCompensation.712 mined by the Secretary of the Treasury, but not to exceed $25 a dayDistrict courts to decide disagreements in claims for losses. each, while actually employed.
In the event of disagreement as to the claim for losses, or amount thereof, between the said bureau and the parties to such contract of insurance, an action on the claim may be brought against the United States in the District Court of the United States, sitting in admiralty, in the district in which the claimant or his agent may reside. Sec. 6. Payment of claims by Director. That the Director of the Bureau of War Risk Insurance, upon the adjustment of any claims for losses in respect of which no action shall have been begun, shall, on approval of the Secretary of the Treasury, promptly pay such claim for losses to the party in interest; and the Secretary of the Treasury is directed to make provisionAdjustment, etc. for the speedy adjustment of claims for losses and also for the prompt notification of parties in interest of the decisions of the bureau on their claims.
Sec. 7. Appropriation for paying losses. That for the purpose of paying losses accruing under the provisions of this Act there is hereby appropriated, out of any money in the Treasury of the United States not otherwise appropriated, the sum of $5,000,000. Sec. 8. Appropriation for salaries, etc. That there is hereby appropriated, for the purpose of defraying the expenses of the establishment and maintenance of the Bureau of War Risk Insurance, including the payment of salaries herein authorized and other personal services in the District of Columbia, out of any money in the Treasury of the United States not otherwise appropriated, the sum of $100,000.
Sec. 9. Suspension of Act when necessity ceases. That the President is authorized whenever, in his judgment, the necessity of further war insurance by the United States shall have ceased to exist, to suspend the operations of this Act in so far as it authorizes insurance by the United States against loss or damage by risks of war, which suspension shall be made, at anyOutstanding claims not affected. event, within two years after the passage of this. Act, but shall not affect any insurance outstanding at the time or any claims pendingPeriod for final adjustment. adjustment.
For the purpose of the final adjustment of any such outstanding insurance or claims, the Bureau of War Risk Insurance may, in the discretion of the President, be continued in existence a further period not exceeding one year. Sec. 10. Statement to Congress. That a detailed statement of all expenditures under this Act and of all receipts hereunder shall be submitted to Congress at the beginning of each regular session. Sec. 11. In effect immediately. That this Act shall take effect from and after its passage.
Approved, September 2, 1914.