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HomeInsurance CodeDiv. 2Pt. 1Ch. 1Art. 5§ 1970 Marine Insurance Abandonment

§ 1970 Marine Insurance Abandonment

Insurance Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 1970 Marine Insurance Abandonment

This rule says that if a ship or its cargo is basically a total loss, the owner can give up any claim to it and let the insurance company take over.

Key Takeaways

  • •It only works after the loss is considered a total loss.
  • •The owner must clearly state they are abandoning their interest.
  • •Once abandoned, the insurer gets the rights to the loss.

Example

A fishing boat hits a reef and sinks, and the owner decides the boat is a total loss.

The owner tells the insurer, "I give up any right to the boat, you can handle it now," and the insurer can settle the claim.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 1970 Marine Insurance Abandonment

Abandonment, in marine insurance, is the act of the insured by which, after a constructive total loss, he declares the relinquishment to the insurer of the insured’s interest in the subject matter. (Enacted by Stats. 1935, Ch. 145.)

Last verified: January 11, 2026

Key Terms

abandonmentconstructive total lossmarine insurance

Related Statutes

  • § 1971 Constructive Total Loss
  • § 1963 Constructive Total Loss Definition
  • § 1969 Insurance Coverage For Total Losses
  • § 1972 Abandonment Cannot Be Partial
  • § 1973 Abandonment Time Conditions

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Insurance Code. Section 1970.
View Official Source