Fifth, the extensively practiced overinsurance of vessels 

 constitutes an open violation of sound insurance principles. It 

 is advisable that insurers increase their efforts to use the dual 

 valuation method, revise the insurance contract annually, or em- 

 ploy any other method so that the amount of insui-ance never 

 exceeds 80 percent of the quick sale or market value of the 

 risk at the time the policy becomes effective . 



Finally, insurers should improve their internal controls 

 and communication mechanism with their field representatives, 

 i.e., insurance brokers or agents, and marine surveyors. 



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