[Code of Federal Regulations]
[Title 7, Volume 7, Parts 700 to 899]
[Revised as of January 1, 2001]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR737.26]

[Page 275-276]
 
                          TITLE 7--AGRICULTURE
 
                            CHAPTER VII--FARM
                SERVICE AGENCY, DEPARTMENT OF AGRICULTURE
 
PART 737--TOBACCO WAREHOUSES--Table of Contents
 
Sec. 737.26  Insurance; requirements.

    (a) Each warehouseman, when so requested in writing by the depositor 
of or the lawful holder of the receipt for any tobacco, shall, to the 
extent to which, in the exercise of due diligence, he is able to procure 
such insurance, keep such tobacco while in his custody insured in his 
own name, or arrange for

[[Page 276]]

its insurance otherwise, to the extent so requested against loss or 
damage by fire, lightning, or tornado. When insurance is not carried in 
the warehouseman's name, the receipts shall show that the tobacco is not 
insured by him. Such insurance shall be covered by lawful policies 
issued by one or more insurance companies authorized to do such 
business, and subject to service of process in suits brought, in the 
State where the warehouse is located. If the warehouseman is unable to 
procure such insurance to the extent requested, he shall, orally or by 
telegraph or by telephone and at his own expense, immediately notify the 
person making the request. Nothing in this section shall be construed to 
prevent a warehouseman from adopting a rule that he will insure all 
tobacco.
    (b) Each warehouseman shall keep exposed conspicuously in the place 
prescribed by Sec. 737.6 and at such other place as the Administrator or 
his representative may from time to time designate, a notice stating 
briefly the conditions under which tobacco will be insured against loss 
or damage by fire, lightning, or tornado.
    (c) Each warehouseman shall promptly take such steps as may be 
necessary and proper to collect any moneys which may become due under 
contracts of insurance entered into by him upon tobacco stored in his 
warehouse, and shall, as soon as collected, promptly pay to the persons 
concerned any portion of such moneys which they may be entitled to 
receive from him.