I hereby promulgate the Law for Partial Amendments to the Export Credit Insurance Law.
Signed:HIROHITO, Seal of the Emperor
This thirtieth day of the eleventh month of the twenty-sixth year of Showa (November 30, 1951)
Prime Minister YOSHIDA Shigeru
Law for Partial Amendments to the Export Credit Insurance Law
The Export Credit Insurance Law (Law No.67 of 1950) shall be partially amended as follows:
In Article 1, ", by reinsurance by the Government," shall be deleted.
The heading of Article 2 shall be amended as "A Class Insurance" ;and paragraph 2 of the same Article shall be deleted, and paragraph 3 shall be made paragraph 2 and the numbering of the ensuing paragraphs shall be moved up by one respectively.
The heading of Article 3 shall be deleted;and in the same Article, "export credit insurance" shall be amended as "export credit insurance reinsurance of which the Government may underwrite" , and "(hereinafter referred to as" A class insurance ")" shall be added next to "less insurance" .
In Article 4 paragraph 1, "export credit insurance" shall be amended as "A class insurance" ;in paragraph 2 of the same Article, "contract of the export credit insurance" shall be amended as "A class insurance" , and "the contract" shall be amended as "the contract of insurance" ;and in paragraph 3 of the same Article, "contracts of export credit insurance" shall be amended as "contracts of insurance" .
In Article 5, "the export credit insurance" shall be amended as "A class insurance" , and, next to the same Article, the following five Articles shall be added:
(B Class Insurance)
Article 5-(2). The Government may, in a case where an exporter has exported goods specified by Cabinet Order on an export contract, underwrite an insurance to be known as export credit insurance (hereinafter referred to as "B class insurance" ) to compensate the less (excluding the loss incurred on export goods) which the exporter suffered from failure in collecting the price of the said export goods due to the causes mentioned in each of the following items:
(1) Restriction or prohibition of exchange transactions to be enforced in foreign countries;
(2) War, revolution or civil war in the buyer's country;
(3) Any other causes outside the control of the exporter or of the buyer which arise from events occurring outside the territorial limits of this country excluding causes as mentioned in the preceding two items;
(4) Bankruptcy of the other party to the export contract;
(5) Default in the fulfilment of liabilities for six months or over on the other party to the export contract only that which cannot be imputable to the exporter.
2 The Government shall, when it has accepted an application for a contract of insurance, prepare an insurance policy and give it to the party to the insurance contract.
3 The Government shall underwrite B class insurance within the limit where the total sum of the amount insured of B class insurance underwritten during a fiscal year, is not in excess of the amount of money approved by resolution of the National Diet.
Article 5-(3). In the B class insurance, the price of the goods exported on the export contract (when payment of the price is made in two or more different times, the part of the price to be paid at one time;hereinafter the same) shall be made the insurable value.
2 In cases where the amount insured of the B class insurance is in excess of the sum obtained by multiplying the amount of the insurable value by the ratio fixed by Cabinet Order within the limit of eighty per cent, the contract of insurance shall be null and void in respect to the part in excess of the sum.
Article 5-(4). The amount of money to be compensated by the Government under the B class insurance shall be the amount of money obtained when the sum which the exporter can not, on account of causes falling under any one of the items of Article 5-(2) paragraph 1, collect by the time of payment (on account of the cause falling under item (5) of the same paragraph, by the time when six months have elapsed since the time of payment;hereinafter the same), minus the amount of money referred to in each of the following items, is multiplied by the ratio, against the insurable value, of the amount insured:
(1) The amount of money relieved from payment by reason of the occurrence of the above causes;
(2) The amount of money collected after the time of payment.
Article 5-(5). In cases where any of the party, insured person or beneficiary of B class insurance has violated the provisions of the insurance contract, the Government may refuse the payment of the whole or a part of the insurance money or have the whole or a part of the insurance money returned.
(Rates of Insurance Premiums)
Article 5-(6). The rates of insurance premiums for reinsurance of A class insurance and for B class insurance shall be determined by Cabinet Order so as to cover all the insurance money paid by the Government and administrative expenses of the Government incurred in the enforcement of this Law.
In Article 6 paragraph 1, "An insurance company may.............. under the reinsurance contract........" and shall be amended as "An insurance company or and insured person or a beneficiary of the B class insurance may.............." and "Article 2 paragraph 4" shall be amended as "Article 2 paragraph 3 or Article 5-(5)" , and in paragraph 3 of the same Article, "an insurance company" shall be amended as "an insurance company or an insured person or a beneficiary of the B class insurance" .
Supplementary Provision:
This Law shall come into force as from December 1, 1951.
Minister of Finance IKEDA Hayato
Minister of International Trade and Industry TAKAHASHI Ryutaro
Prime Minister YOSHIDA Shigeru