In estimating a loss under an open policy of marine insurance, the following rules are to be observed:
(a) The value of a ship is its value at the beginning of the risk, including all articles or charges which add to its permanent value or which are necessary to prepare it for the voyage insured.
(b) The value of cargo is either its actual cost to the insured, when laden on board, or, where that cost can not be ascertained, its market value at the time and place of lading, adding the charges incurred in purchasing and placing it on board, but without reference to:
(1) Any losses incurred in raising money for its purchase.
(2) Any drawback on its exportation.
(3) The fluctuations of the market at the port of destination.
(4) Expenses incurred on the way or on arrival.
(c) The value of freightage is the gross freightage, exclusive of primage, without reference to the cost of earning it.
(d) The cost of insurance is in each case to be added to the value thus estimated.
(Enacted by Stats. 1935, Ch. 145.)