§ 1988 Marine Insurance Partial Loss

Insurance Code·California

AI SummaryVerified

This law says that if only part of a ship or cargo is damaged, the insurance company only pays the same part of the insured amount that matches the damage.

Key Takeaways

•Insurer pays only a share of the coverage that matches the amount of loss.
•The share is based on how the loss compares to the total value of what was insured.
•If the loss is total, the insurer pays the full insured amount; if the loss is partial, the payment is reduced proportionally.

Example

A boat owner insures his boat for $50,000. A storm damages 40% of the boat.

Because only 40% of the boat is hurt, the insurer only has to pay 40% of the $50,000 coverage, which is $20,000.

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

Official Source

View on CA.gov

§ 1988 Marine Insurance Partial Loss

In a case of partial loss, a marine insurer is liable only for such proportion of the amount insured by him as the loss bears to the value of the whole interest of the insured in the subject matter. (Enacted by Stats. 1935, Ch. 145.)

Last verified: January 11, 2026

Key Terms

partial loss marine insurer proportion of the amount insured value of the whole interest

References

Official text at leginfo.legislature.ca.gov
California Legislature. Insurance Code. Section 1988.

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References