Opinion ID: 6313
Heading Depth: 1
Heading Rank: 2

Heading: The Relevant Policy Language

Text: 12 National Union's policy contained a breach of warranty endorsement insuring against physical damage to the aircraft. The endorsement provided in part as follows: 13 1. As to the interest of the said Lienholder only, the Insurance afforded by any Physical Damage Coverage of this policy shall not be invalidated by any act or neglect of the Named Insured nor by any change in the title or ownership of the aircraft but conversion, embezzlement or secretion by or at the direction of the Named Insured is not covered hereunder; provided however that: 14 (a) in case the Named Insured shall neglect to pay any premium due under this policy the Lienholder shall, on demand, pay the premium; and 15 (b) the Lienholder shall notify the Company of any change of title or ownership of the aircraft or apparent increase of hazard, which shall come to the knowledge of the Lienholder, and, unless permitted by this policy, it shall be endorsed thereon and the Lienholder shall, on demand, pay the premium for such increased hazard. 16 (III R. 35). 17 Page 2 of the main body of the insurance policy contained the policy's coverage exclusion. Paragraph 6(a) of the policy excluded from coverage loss or damage due to conversion ... by any person in possession of the aircraft under a bailment, lease ... or other encumbrance. (III R. 25). 18 The policy also included a war risk endorsement, which provided that notwithstanding anything in the policy to the contrary, the policy covered physical loss of or damage to the aircraft if caused by [c]onfiscation, nationalisation [sic], seizure, restraint, detention, appropriation, requisition for title or use by or under the order of any Government. (III R. 31). Both the breach of warranty endorsement and the war risk endorsement stated that [n]othing herein contained shall vary, alter, waive or extend any of the terms, provisions, representations, conditions or agreements of the policy other than as above stated. (III R. 31, 35)