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American Institute

BUILDER’S RISK CLAUSES

(FEB. 8, 1979)

To be attached to and form a part of Policy No________________________________________ of the ________________________________________________________________________________

The terms and conditions of the following clauses are to be regarded as substituted for those of the policy form to which they are attached, the latter being hereby waived, except provisions required by law to be inserted in the Policy. All captions are inserted only for purposes of reference and shall not be used to interpret the clauses to which they apply.

ASSURED

This Policy insures________________________________________________________________ hereinafter referred to as the Assured.

If claim is made under this Policy by anyone other than the Owner of the Vessel, such person shall not be entitled to recover to a greater extent than would the Owner, had claim been made by the Owner as an Assured named in this Policy.

Underwriters waive any right of subrogation against affiliated, subsidiary or interrelated companies of the Assured, provided that such waiver shall not apply in the event of a collision between the Vessel and any vessel owned, demise chartered or otherwise controlled by any of the aforesaid companies, or with respect to any loss, damage or expense against which such companies are insured.

LOSS PAYEE

Loss, if any, payable to_____________________________________________________________ or order.

Provided, however, Underwriters shall pay claims to others as set forth in the Collision Liability or the Protection and Indemnity clauses and may make direct payment to persons providing security f or the release of the Vessel in Salvage cases.

SUBJECT MATTER

The Subject Matter of this insurance (herein referred to as the Vessel is the hull, launches, lifeboats, rafts, furniture, bunkers, stores, tackle, fittings, equipment, apparatus, machinery, boilers, refrigeration machinery, insulation, motor generators and other electrical machinery, ordnance, munitions, and appurtenances, including materials, plans, patterns and moulds, staging, scaffolding and similar temporary construction (to the extent only that the cost of any of the foregoing is included in the Agreed Value) incorporated in or allocated to Hull No. ______________________________Type ______________________building at the yard of the Builder at______________________________________________________. (line 12 to line 16)

In the event of any material change in the specifications or design of the Vessel from that originally represented to the Underwriters, such as change is held covered provided (a) notice is given to the Underwriters immediately followed such change, and (b) any amended terms of cover and any additional premium required by the Underwriters are agreed to by the Assured.

This Policy insures only while the Vessel (ashore or afloat) is at the building location named above; while in transit within the port of construction to and from such location; and while on trial trips (including proceeding to and returning from the trial course), as often as required, within a distance by water of 250 nautical miles of the port of construction, or held covered at an additional premium to be named by the Underwriters in the event of a deviation of voyage, provided prompt notice thereof is given to the Underwriters.

DURATION OF RISK

From the _______________day of _______________19____, _________________________time,

to the ________________day of _______________19____, ___________________________time or until delivery, if delivered at an earlier date.

In the event of delivery not being effected by the aforesaid expiration date, this Policy may be extended at _________________ per month, provided prompt notice be given to the Underwriters but not for more than ______________________________months from the date of original attachment, but held covered for an additional period of time provided prompt notice is given to the Underwriters and any amended terms of cover and any additional premium required by the Underwriters are agreed to by the Assured; provided, however, in no case shall this Policy extend beyond delivery of the Vessel.

In event of payment by the Underwriters for Total Loss of the Vessel in this Policy shall thereupon automatically terminate.

PREMIUM

The Underwriters to be paid in consideration of this insurance ________________________ Dollars being at the rate of _____________________per cent., which premium shall be due on attachment.

RETURNS OF PREMIUM

In event of delivery prior to the expiration date, or any extension thereof, to return pro rata daily of _____________________________________________________________ cents per cent. net per month.

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