Commercial Maritime Law

1. In cases other than fraud, insurance contracts shall be deemed valid if a risk is insured against by multiple contracts— whether or not concluded on the same date—of which the aggregate amount of insurance coverage exceeds the actual value of the insured items. The insured may—to the extent of the damage sustained and not exceeding the actual value of the insured items— have recourse against any of the insurers who are not jointly liable for the amount incurred by each insurer in proportion to the actual value of the insured items. 2. The insured shall, when claiming damages, disclose to the insurer any other insurance contracts he is aware of; otherwise, his claim shall be denied. 3. Each insurer shall have recourse against the other insurers, demanding that each settles his respective share of the damages, in proportion to his amount of coverage. If any of the insurers is insolvent, his share shall be divided proportionately among the solvent insurers. 4. If fraud is established against the insured, each of the multiple insurance contracts shall be revocable if the insurer so request. The competent judicial authority may, upon revoking a contract, award those who are eligible an appropriate compensation not exceeding the insurance premium.