In Brief
A vessel covered by marine hull insurance suffered total loss after being struck by a tugboat. The insurer refused to pay the claim, contending that the classification certificate on which the policy was issued had been obtained fraudulently—the assured had concealed prior engine damage when applying for the certificate. The Supreme Court held that an express warranty of maintaining a valid classification certificate had been breached. Under the Marine Insurance Act, breach of warranty automatically discharges insurer liability from the breach date, regardless of materiality. The assured's failure to disclose the unrepaired engine damage to the Classification Society rendered the certificate invalid. The insurer's mere knowledge of the earlier damage did not constitute waiver. The appeal was dismissed.
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