RULE XIII – THE ADMIRALITY LAW AND THE FEDERAL EMPLOYERS LIABILITY ACT

1. Admiralty Law Masters and members of the crews of vessels are not covered under state workers compensation lawsnor under the U.S.L. & H.W. Act. They are subject to admiralty law and, if injured, have the right to sue their employers for damages in the Admiralty Courts where the proceeding is in the nature of an employers’ liability suit. They also have the right to transportation, wages, maintenance and cure. Such seamen are subject to a Federal law, the Merchant Marine Act of 1920, known as the Jones Act (46U.S. Code, Section 688, 1970) which applies the provisions of the Federal Employers Liability Act to seamen. Every person employed on board a vessel is deemed to be a seaman if connected with the operation or welfare of the vessel while in navigable waters. Usually, navigable waters are defined as those which form a continuous highway for interstate or international commerce.
2. Federal Employers Liability Act (F.E.L.A.)The Federal Employers Liability Act applies to employees of interstate railroads. Such employees are not subject to state workers compensation laws. This federal law imposes liability for damages on the railroad if the injured railroad employee can show any negligence on the part of the railroad. For complete details, see 45 U.S. Code, Sections 51-60, 1970.

The Standard Policy may be used to provide insurance for liability under one or more state workers compensation laws and also for liability under admiralty law or F.E.L.A. There are two programs to furnish such insurance:

1. Program IProvides under Part One – Workers Compensation Insurance statutory liability – under the workers compensation law of any state designated in the Information Page and under Part Two – Employers Liability Insurance, Employers liability – for damages under admiralty law or F.E.L.A., subject to a standard limit of liability of $25,000.
2. Program IIProvides the same coverage as Program I, but with the addition of Voluntary Compensation. Under Program II, the insurance carrier will offer a settlement of a claim strictly in accord with the statutory benefits provided in the workers’ compensation law designated in the Voluntary Compensation Endorsement attached to the policy as if the claim were subject to such law, instead of subject to the laws of negligence. If the offer of settlement is rejected, Employers liability then applies to such claim or suit, with the same standard limit as for Program I.

1. Admiralty Law Endorsements To provide Program I for admiralty law, attach the Standard Maritime Coverage Endorsement (WC 0002 01A). To provide Program II for admiralty law, also attach the Standard Voluntary, Maritime Coverage Endorsement (WC 00 02 03).
2. Admiralty Law Coverage OptionsThe Maritime Coverage Endorsement (WC 00 02 01A) excludes liability to provide transportation, wages, maintenance and cure. This endorsement may optionally include a provision to insure such liability for an additional premium based on an (a) rate.
3. F.E.L.A. EndorsementsTo provide Program I for employments subject to F.E.L.A., attach the Standard Federal Employers Liability Act Coverage Endorsement (WC 00 01 04). To provide Program II, also attach the Standard Voluntary Compensation and Employers Liability Coverage Endorsement (WC 00 03 11A).
4. U.S.L. & H.W. ActWhen insurance is provided for liability under admiralty law or F.E.L.A., insurance for liability under the U.S.L. & H.W. Act also may be necessary. To provide such insurance, attach the Standard Longshore and Harbor Workers’ Compensation Act Coverage Endorsement (WC 00 01 06A).

1. Standard Limits
   The standard limit of liability under Part Two – Employers Liability Insurance for admiralty or F.E.L.A. insurance under Program I or II is $25,000.
   a. Accident Limit
   The limit of liability applies to all bodily injury arising out of any one accident.
   b. Disease Limit
   The limit of liability also applies as a separate aggregate limit for all bodily injury by disease. The aggregate limit applies separately to bodily injury by disease arising out of work in each state shown in Item 3-A of the Information Page.c. Show Limits on Endorsement
   These limits of liability must be stated in the Maritime Coverage Endorsement and/or the Federal Employers Liability Act Coverage Endorsement (WC 00 01 04).
2. Increased Limits Increased limits for liability under Part Two – Employers Liability Insurance are available. The additional premium for increased limits shall be determined by applying the factor in the following Table for Increased Limits to the total premium for admiralty or F.E.L.A. classifications before application of:
   a. Expense Constantb. Experience rating modificationc. Premium discount or retrospective rating adjustment

   The premium for increased limits is subject to an experience rating modification.

   Limit Per Accident	Factor	Minimum Program I	Premium Program II
   $25,000	1.00	$100	$200
   50,000	1.09	1109	218
   100,000	1.15	115	230
   200,000	1.23	123	246
   300,000	1.29	129	258
   400,000	1.34	134	268
   500,000	1.38	138	276

    

3. Minimum Premium
   The separate minimum premium shown in the above Table For Increased Limits applies to a policy which includes classifications for operations subject to admiralty law or the F.E.L.A. Such minimum premium is the lowest premium for insuring admiralty or F.E.L.A. operations and it shall apply in addition to the minimum premium or premium for other operations on such a policy. It is not subject to an experience rating modification.

Federal Employers Liability Act

1. CoverageAn insured may conduct operations on waters not subject to admiralty jurisdiction. Insurance for such operations shall be provided by the Standard Policy and endorsement forms and is subject to the rules which apply to statutory workers’ compensation insurance.
2. Admiralty Law or U.S.L & H.W. Act LiabilityIf there is a potential liability under admiralty law, follow the previous rules for insurance under admiralty law. If there is a potential liability under the U.S.L & H.W. Act, refer to Rule XII.