neutral property

NEUTRAL PROPERTY, insurance. The words "neutral property" in a policy of 
insurance, have the effect of warranting that the property insured is 
neutral; that is, that it belongs to the citizens or subjects of a state in 
amity with the belligerent powers. 
     2. This neutrality must be complete hence the property of a citizen or 
subject of a neutral state, domiciled in the dominions of one of the 
belligerents, and carrying on commerce there, is not neutral property; for 
though such person continue to owe allegiance to his country, and may at any 
time by returning there recover all the privileges of a citizen or subject 
of that country; yet while he resides in the dominion of a belligerent he 
contributes to the wealth and strength of such belligerent, and is not 
therefore entitled to the protection of a neutral flag; and his property is 
deemed enemy's property, and liable to capture, as such by the other 
belligerent. Marsh. Ins. B. 1, c. 9, s. 6; l John. Cas. 363; 3 Bos. & Pull. 
207, u. 4; Esp. R. 108; l Caines' R. 60; 16 Johns. R. 128. See also 2 Johns. 
Cas. 478; 1 Caines' C. Err. xxv.; l Johns. Cas. 360; 2 Johns. Cas. 191. 
     3. If the warranty of neutrality be false at the time, it is made, the 
policy will be void ab initio. But if the 'ship, and property are neutral at 
the time when the risk commences, this is a sufficient compliance with a 
warranty of neutral property, and a subsequent declaration of war will not 
be a breach of it. Dougl. 705. See 1 Binn. 293; 8 Mass. 308; 14 Johns. R. 
308; 5 Binn. 464; 2 Serg. & Rawle, 119; 4 Cranch, 185; 7 Cranch, 506; 2 
Dall. 274.