85.Modification of Act in case of mutual insurance

(1)Where two or more persons mutually agree to insure each other against marine losses there is said to be a mutual insurance.

(2)The provisions of this Act relating to the premium do not apply to mutual insurance, but a guarantee, or such other arrangement as may be agreed upon, may be substituted for the premium.

(3)The provisions of this Act, in so far as they may be modified by the agreement of the parties, may in the case of mutual insurance be modified by the terms of the policies issued by the association, or by the rules and regulations of the association.

(4)Subject to the exceptions mentioned in this section, the provisions of this Act apply to a mutual insurance.