(a) Over-insurance shall be deemed to exist if property or an insurable interest therein is insured by one or more insurance contracts against the same hazard in any amount in excess of the cash value of the property or of such interest, as determined as of the effective date of the loss or of any renewal thereof.
(b) For the purposes of this section only the term “fair value” means the cost of replacement less such depreciation as is properly applicable to the subject insured.
(c) No person shall knowingly issue, place, procure, or accept any insurance contract which would result in over-insurance of the property or interest therein proposed to be insured, except as is provided in section 1052 of this title.
(d) Each violation of this section shall subject the violator to the penalties provided by this title.