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THE HONGKONG GOVERNMENT GAZETTE, NOVEMBER 5, 1920. 381
III.-CONTRACTS OF INSURANCE.
8. Contracts of insurance entered into by any persons with another person who subsequently became an enemy will be dealt with in accordance with the following paragraphs.
Fire Insurance.
9. Contracts for the insurance of property against fire entered into by a person interested in such property with another person who subsequently became an enemy shall not be deemed to have been dissolved by the outbreak of war, or by the fact of the person becoming an enemy or on account of the failure during the war and for a period of three months thereafter to perform his obligations under the contract, but they shall be dissolved at the date when the annual premium becomes payable for the first time after the expiration of a period of three months after the coming into force of the present Treaty.
A settlement shall be effected of unpaid premiums which became due during the war, or of claims for losses which occurred during the war.
10. Where by administrative or legislative action an insurance against fire effected before the war has been transferred during the war from the original to another insurer, the transfer will be recognised and the liability of the original insurer will be deemed to have ceased as from the date of the transfer. The original insurer will, however, be entitled to receive on demand full information as to the terms of the transfer, and if it should appear that these terms were not equitable they shall be amended so far as may be necessary to render them equitable.
Furthermore, the insured shall, subject to the concurrence of the original insurer, be entitled to retransfer the contract to the original insurer as from the date of the demand.
Life Insurance.
11. Contracts of life insurance entered into between au insurer and a person who subsequently became an enemy shall not be deemed to have been dissolved by the out- break of war or by the fact of the person becoming an enemy.
12. Any sum which during the war became due upon a contract deemed not to have been dissolved under paragraph 11 shall be recoverable after the war with the addition of interest at five per cent. per annum from the date of its becoming due up to the day of payment.
Where the contract has lapsed during the war owing to non-payment of premiums, or has become void from breach of the conditions of the contract, the assured or his representatives or the persons entitled shall have the right at any time within twelve months of the coming into force of the present Treaty to claim from the insurer the surrender value of the policy at the date of its lapse or avoidance.
Where the contract has lapsed during the war owing to non-payment of premiums the payment of which has been prevented by the enforcement of measures of war, the assured or his representative or the persons entitled shall have the right to restore the contract on payment of the premiums with interest at five per cent. per annum within three months from the coming into force of the present Treaty.
13. Where contracts of life insurance have been entered into by a local branch of an insurance company established in a country which subsequently became au enemy country, the contract shall, in the absence of any stipulation to the contrary in the con- tract itself, be governed by the local law, but the insurer shall be entitled to demand from the insured or his representatives the refund of sums paid on claims made or enforced under measures taken during the war, if the making or enforcement of such claims was not in accordance with the terms of the contract itself or was not consistent with the laws or treaties existing at the time when it was entered into.
14. In any case where by the law applicable to the contract the insurer remains bound by the contract notwithstanding the non-payment of premiums until notice is given to the insured of the termination of the contract, he shall be entitled where the giving of such notice was prevented by the war to recover the unpaid premiums with interest at five per cent. per annum from the insured.
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