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IIA/VUUW AXO I.08SKS," " THK IIASU UO')K OK A1>J UHIMK.N'I i.K Klld' Iil»( C_jin iu the daily neud exiiorienced liv tlic antliiii' — in (•oiminiii, duul'tless, with iill oilier fire underwuteis — for some <4eii1i.1l work iii.oii tlie sulijeet of FlUK In.s( kancK wherein niiijiit he h.iind ^'inhered in a\ailahle form its THKCUtY and I'lai'lT' F, wilh .tiipioitriale kiw.s, niles, and iiSHy;t;s deduced from the e\|ieiieuee of the forefathers in the pldfe.ssion. which might serve as a heaoou to j,'Uidii the footsteps of the present geniiiition ; l>iit. fttran as it may seem — while life insnrmu'e, a seuincc ted to thr 111- cjtnirtion of its v IS aliiio-f whollv the result of his own oh.servutioii and ol hard-earned experience, unassisted eithei i>y tlieoiy or the recorded experienc of otherb, beyond a few elementary treatises and diLfests of the law> of tire insurance, which, unaided by a knowledge uf the underlying general i)rin- ciples of t lie subject, tend rather l(. mystify than ti) enlighten. The logical result is apparent in th.- great diversity of opinion und practice so prevalent, where all shouM lie concorcant, uni- form and certain. The jnesent volume is a contribution to lire insurance liter- ature, iuleudud to meet this urgent waut-paruully, at least. ■-.L-.-.^-;^,A.•■■^#,'aj^^^^rt■„;,■r.^:^Sg:|^^^^■t^.;.- ../-*. < %■ INTKODUCTION. It has been prepared in tlie midst of tlic prenainj,' duties of the profession, mid is tlie result of daily experience, arising from daily needs of tlie business, during many years of active service in the held and in the dlhce. In Its preparation —holding with Mr. Knicrson, that " Kvery book is a (|iiotatioii ; and every house is a quotation out of all forests and mini's iiid stoiie-(|harrics ; and every man is a <|Uo- tutioii from all his ancestors," especial elloit lias liceii made to i-ei/t' upon and apjMupi'iate the wisdom and opinions of others, ■whertH'er found, wln'ii ]i(itiiicnt to the subject-matter of the text, rather than to iidvance and iijihold individual opinions, es]tec,ially ujion mooted questions; allhoiiL'li no hesitancy has been indiilvi'd in combatting i. pinions when tla^y hasc Ici n jiroved erroneous or ine(|iiit iMe. And as it has been stddom necessary to tmvel widely out of the records (if the eoiuts — places of iinal resort — f()r the elimination and elucidation of ihc gener.il principles underlying the fire insurance contract, so but little will l.e t'aiiid that is essentially //ow outside of the arrange- nient and t.reatmt;nt of ihr si'veral subjects. llie work is intended as a ' Tk\t-HouK " for all interested in fire insurance, wherein the- I'ndi rii'viltw ran (ind tic " ;/< nr.rid 2)r'nici]>lc<'i" of the science fully ( Nplained. and the legal status of the C(mditious of the policy as decided Ijv tiic rulings of ilu' courts. The Ac^'inMer will be furnished with rules tor apporthm- y>U')it and ro)itrihittii))> under speriric, contfiaunil. iiciraff and other ni)ii-r'W in (ippUfdtiou in some cases, Imt (t.- u/,1 in priiiriple ai* tire insiira7irr ilsrlf, illu-lrated by a vari''ty nf ]iroblems of earh class worked out in detail, ulnieliy he eaii iiutii' theiWirdiaii knot of the most com- plicaled cases of nMii-concurrent policies, uinf hai'r them slan'l tin te/ iirea(!nt thcin lucidly td the coniprfhonsion of court and jury , li<;iioo, viT(lict.-i an." tifttMi t;ivt>a and inliiiga made u|)(in point;* nut really at issuo ; and, (iually, tlie In^io'td will 1m' tMiiil'lfd to comprehend his duty in cases of honest loss, and Ins n>ihts undttr tho policy, should lie be so unfortunate as to fall aniony the IMiilistines, in the form nf •' s7; tr/' or whacfc aiijur^tcr.s." AcKnuwlodynnnts art! due to thi>so f^'i'ntlciiu'n ultn h.ivc, by their ailvicc. and counsel, lualtirially aideil in ihc pn p.inition of tho work. EsjMicial thanks are tendered tc tlie ilnii, 1. (i. Holers, of Chii'aj,'o, Juilge of the Circuit Court, for valuable lime (■X|ietidiMl ui>oii 11 critic'al legal examination nf tliii maniisriipt ; also to H. K. I.indsev, K-sip, of Cincinnati, and U 11. Lawrence, E.sro- fession, in «huh so luaiiv yeiirs of his life have Um'U spent, may result to the luiuelit of his co-laliorers in the lield. — the youiK.'er ones especially, — the Tk.XT-I^iok is i'e8])ei'tfully .■sub- mitted by The AuTiiou. New Vokk, 0,;t., 1872. % IxXTKoDUCTION To I UK SKCUNI) KI>ri l'»N, HS9. In pmsctiting a second. reviVi'd ('ditiou of tlic riiih: rshi'K- WKiTKHs' Tkxi' Hook tn tlu> jii'nrc^^siiin, lint Iitilc is iitiMlCul tn ^M' said (if il8 (ihjt'ct lu'vond what lias aln-iidy '"'fii siiiil iii tli(> ititrodiicijiiii fo till first I'dition of 187!-'. Sini'o wlndi linic, sdiiit! s.'Vftili I'll years liivc I'lapscd, liriiiL;iii!.,' iii llu'ir lliu'lit, ill tin' uiidnrwriiiiiL; .is in otlici all'airs uf coiiiiiH'ri-c, s.iiiii' iiii|M(r- Uiiit rliaiiij;f.- in iiiclliods ut' )HiH'lici', iu'(t's.silatiii^Miii'ii'S|iiiiidiiig cliHiij,'o.s in sonit' jmiiioiis of tin' wmk to krcp it fully alacast with the profiMss nf the tf^c In ni:il.ni<4 such i'liaii;,'fs, while pie-ervMij,' as tar a-. |"issilil(!! the oii^;inal order of lUTaiigenient of sulijeet.s, additii.iis and eniendation-i where needful, l;a\e lieeii Jiiade iVnin aui|iie iiotos and inenmranda gathered durini; the intiiiin, thus I iiii^'in;,' tlm Work down lo the |ires(Mit day. Anionj;«t other iniiiro\enients ejainied i'l-r iii tln' imcscih edition is tin; citntiou nf niinienois auiiioiities, lei:ul and hislnr- leal, forth'- se\eiai »iilijeits tivati'il iijion, ly uludi ihi 'i'Kxl Book hecunios not only a historical record, hnt also h fiructnxil diLji'st iif ("( i;rt adjudieatioTis upon the many vexed (juestions that have heen the cause of coiilentioii in fire uiideiwritinfi; practice from its earliest days, thus addintr largtdy td the \aliie of the Work as a " leforonoe Ixtok " Inr the undeiwiner, an I for nieniliers of tlu' har and hench not familiar with insurance customs and u.sag(> With the.so brief jindiiuiiiaiy remarks, the second edition of TllK VuiV: l-NOKKWKiTKUs' Tk.xt Hook irt rc! AcooKi) \Ni) Satiskaction. — All iij,Mvemtait, that in plucc i>r itayint'iiL (tf nioniiv owiiij,', u (tM'taiii hiuu mIiuII Iii% uikI is al tip' tiiiif, paid in iliacliiiri,'*! uf'tlic dfhl. {11170.) JI. ASSUU.VNCI-; .\M> ISSUU.VNOK. — '''rviilO itllt oi liiyiiilo." these two terms hiivc Ihtii usihI as syuuiiyiuim.s. Mr. Hahba^'o thus (listiiiL;iiisiins tlu'iii. vi/. : — " .|;f.v/(/(i/(i . ih u ((jhiriu't (l('|i('n(l('iit upon tlic MiinitidH of life, wlncli HHi'-t cither liup|ioii or t'liil." " /jwwcartcf is 14 , $ •i»:t, (ii: iriinc iVnm r„..t cf ,,„^.,., f„r.SIJ,(i()ii,iiOii, ro 1 1 .i; 12,0n0,000.(lU(i. Wrsi' '.'I I, ,^ isa, •• AVr. Si„i. Oh!..,- sli.HiM rc;i 1 ().,t ,,■!.,. AvKUAGE. — See conJitioiis uf. (H<»7.) Jl» Gknkrai, AvKt:\(.;K, marine. — Cuiiti'il)uLiou to voluntary sacrifice maile, or expenses ineurred for the joint benetit of ship, cargo, and freight, atul is linrne liy tlioso interests in coniinou. 4. Somewhere about 900 u. c, the city of Rhodes was built, and the " Hhodians' subsequently, for many years, held .suprnm- aoy upon the seas. From this city emanated what is kncwn in the matter of Marine Average, as the Jihodian law de jactu, which remains to thr present day unchanged as the basis of the law upon that subject. INTnODUCTlON T«» I UK SKCUM) KIdlloN, HH«J In [irrscfiting n sccoiul, roviHi'il oditioti of ilic I'litK I'shnj- WKITKlis' TkXI liiMiK tn the liri.rcssiull, lillt lltlli- is liccdj'lll tii b«' siiitl 111' iiti iiliji'ct lii-yonil what Im.s iilrcudy ln'cii .«iiitl lu llm iritrtMliii'ii'H) to tlif lirst fdiiKt!! dt 1871.'. Siii.-c \\ Imh tunc, Hiitiic s.'Viiili ••u yi'iii's lii\i' cliiii-^i'd, liiiii;4in^' 111 llii'ii lliL.'lit, ill lire uiid(\r\viitiiij; as in (itlicr an'!iirf< uf cniiiiiicr'i', >.tiiii' iiii|)(ji- liiiH rliiiii^t>> in ni<'ili(>d.>4 uf I'l'iiftici', n«!(r.sniLiitiii;,M(ii'r('.s|inndiiiL; ,,|„ ...~... ill ^,.i,,(' nmtioii.s of" tln' wmk (d kcrp i( I'ldly id>ir,ist wi III* fU an i(.i l'»n>K l)eceiiifiit tluit in placf of ]iuyiiH'iiL of nioiiuy owiii^', a (■cituiii sum n\m\l Ixf, uiitl is ill till' fiiiif. |iiiiil ill iliHi'.li;iii;ii of liii> dchi. (I1»70. ) 21* AwsuitANtK \M' Insihanok. — '''ryjiic nin of iiiyiuKf," tht;Hf two If'iiiis liiivf Ih'cu iiHt'tl as syniiiiyiiioiis. Mi. Mubh'^e tliiis ilistiiii^Miishii.i timiii, vi/ " .IssiiriiiK, Ih It ((Hiiriict il('|»'iiili'iil upon Hio ilunilKiii of li|r, uhich rmi'-t «'itlier httppcn or t'liil." ' liixiiidurf U a ct>iitmc,t r-lAliti^ l'> miy oili.>i- nincrtiiiti uvcut, loh may \., i(^..i 1 if< uUviV) -1 liiiii to tin." cliaiire ..f f-aUugi: arimuj; Iroiii piirliul ili'siiiiciiuii"' A writer in the Assurance Mnfjaz'nic durmcs the more isorrect tlistiiictioii to be, " tlial a iii;iii hifmren hnnsidf oi Iim iiroporty, wliilr t\\i' ortit'c fMMW/'tw to liini iiulomiiity in t;aNo of loss." Mr. Walfonl is of tlieoiiiiiioii tli.it " assiiraiico " represents [\m jn'htciplf ; "insurance" \\u' pi'dclicf;, winch wmiM setMu to he the same as the caie above cited, ^'-iii, 1 1 1.; See 3 I'.eiiii. F I. Cases, KV.). AvRlUGE. — See conditions of. {lUi7,) Jl« Gknkkal Avekagk, marine. — Contribution to voluntary Haerifice maile, or expenses iinuried tor the joint benefit of ship, cnrgo, and freight, and is borne by tiiose interests in common. 4. Somewhere about ^M)0 ii. i., the eity nf Rhodes was built, and the " Hhodian.s" Hubseqiu'iiily, fni many years, held .suprem- acy upon the. seas. From this city einatiated what is known in tlie matter of Marine Avera;.'t\ as t!ie lihodian law (U jactu, which remains to the present day unchanged as the basis of the law upou that subject. »^'"~^t'«S2!»,4.«o hear in uoiDinon tlip ilHiiiaf^c, who, tl)ri)Uj!;h ihi' -'acTidrp of nthi-r pi'oph's goijfln, liavc nttaiiifl tliat their own g(X)ilH are -iavi-ij." f !,'».) , General Average is stJinetiines used to donoto tho kind of loss tliat. ^ivps a claim to j^cniiral averaLT'' coiifrihvtlov — a devic^e foi tlin iiintiiul adjiistmt'.Hl ol' tiic rii,'lits of all parties concerned in a ventnre — and sorueLitiies denotes such eontriluition itself. The former is called a general (irerai/c Ids^, whicli ditlcis tVom a total loss; for while therti may 1') miiny avrage /t).s\S(.',s during a Voyage, there can be luit '>\u; total loss, for that ends the venture. 5. AvEK.VGK, jiarfirvlnr, is a jiartial loss ; iisnally limited in the policy tn a certain pereentagt^ upon certain articles liable to damaiie from slii:ht cause, as three percent. U])on the insured value, ii:}i(")i surli. /o.ss /(ii.< been caused by fiirce of the floncnts vnthiifit h'limin >i.certions ah < I )i of from its ovii proper vice. (39.) It> object is to {irotect the underwriter against trifling and !>! Villi HIS claims for equivocal damages. This princi{)le was tran^-feneil to tire |)olicies of the early days; but hashing since been dropped from 1 lie lire branch, though something similar is still found in radmad policies. (««. U.S.) O. AvK'tAOK — petf)j. — Small charges formerly assessed upon the cargo ; as pilotage, towage, light-money, beaconage, anchorage', quarantine, fire-money, bri Ige-toU, etc. I'ark Ins. 99. 7« Average Wtirrantg is liability for "constructive total loss" only, where there can be no ciuitribution ; all is lost, there is uotiiing to contribute from ami nothing to contriluite for, hence the rule of sacrifice for the common benefit is that they are not contributed for where nothing is saved. Crowd's Law Diot'y., A. 1), lfi07. H. " Primage and Average Accnstomod," found in bills-of- lading— a small duty paid to the master of the vessel, over and above the freight, for his care and attention to goods entrusted to hiia. DEFINITIONS. ». AvERAGK Adjusters or Statkrs.— Professional marine adjuskTs. "Their - extemi.id, about 1876, to merchants, manufactur.-rs and olhers, to cover conseipiential damages arising from the occurrence of lire, not covered by ordinaiy tire insurance, such as lo.^8 of revnuu: from caj.ital, plant or machinery, etc., caused by destruction of the property of the insured, who may thus hold .simulianeously a regular fire policy upon buildings, stock or machinery, and another entirely distinct upon the sanu' pro])erty, but based upon the productive value of sucii property, and the average yearly income derived therefrom, upon which interest at a ceitain rate ]ier cent, (usually six to ten) is guaranteed by the policv from and after the fire, during such time, as from Uie oiicumstances attending the loss, the capital invested may remain t..tally or partially, yet compulsorily, unavailable to the iuMire.], as iu rent or lease policies, which represent the inineiple exactly. There can be no chomage insurance without a coriesponding fire insurance upon the property. The amoinit of chomage insurance is always limited to the existing amount of the fire insurance. This principle is th-. foundation of m.)rtgagee iusurance, rent and lease policies, policies on profits, income, or commissions unearne.l, anrl insurance of production at mills under contracts against failure to fill such contracts, when such failure was caused by fire. 11. " Declare a Risk."-To make known the contents of a parcel entrusted to a carrier for transportation, in contradistinc tion to the phrase " contents unknown." 12. Donations to Flre-Emjine Companies.-- Laying a I 10 DEFINITIOXS. tax on the provident members of society to secure the improvi- dent from loss." IJ*. Flocks— Literally, tufts i.f wool. In niaiiui'acturiuj^ '' i'hdiii]// goods'' the waste of wool and other articles ;.,'idund into "_//oc/w," and used with sound materiid. When" Uiilo)) /(/as'" arr LTiuund f.ir " ilucks'' witli«iit oil, it is n daui^erous process, on ae(.'oinit of tli.' cMnd>ustil(lc nature of the material. (IH. 2.1.) II. Fi,or:-;\M, Flolsiui,: (marine), — A name for goods cast out of a vc^sc'l m cousequenee of stress of wiatlicr, nr when the ship is sunk or otherwise perished, and tlic goods tloat upon tJic Hc.a. I»>- .iKrrisnN. .A'/xa:/( ■ (laai in-'). — The i;a>tin.Lr-<'ut tri.iu a vessid a ]M>rtion of tlu; la liiiL', in r(Mni'i(ii.'iice oi stress of wea- ther to save the ship. Al-i tlu' thin^j so cast out. Tlie term is applied to siicli thiiiifs as .v/u/,' //( Ihi'Si'a. Jelti-^on is oi' two kinds, ri'Ljiiiar and irre^'ulai : Jlfjnlai; that winch is made — not in the ver} luoiucni "f pcrishiiiL; — fait raihcr to w.inl oil approacl.iii'_[ dan^fi'i', whiTO tliciv niiiy Ijc tnue loi' considcrntion ; Irregular, tiiat madi- in the vi.av laonii'ii; of daiigor, wiiliout prior consnltatioi). Itt. L\i;\x.- (tooiis found tloating at such distance fn.m the shore, that, it is uncertain whit coast they would he auri(;d to, and therefore belonu'ini; to the finder. IT. I.K.A.N, — ]lea\y goods cast out of a vessel and markiHl by ,v buoy. IN. MfXi;..) — \ril|i; 1 cloth or Jmnl ends oidy. uruund up for usi'. If made of clean material it will not I'^nite spiiita- ueoiisly. Hut d' tiie priorer classes of oil be used, and tlie rags be not clran, or if niil'waste biuuixed therewith as i> fri-ipiently the case, it is very liable to spontaneous (.'omlaisDoii. A iiiungo machine contains about si.x hundred ti'i'th, and if in proper woikiii;,' order, to make real good work should revolve nine hundri'i.s. etc. (1T1I.) 21. I'liOMl'T, 1'ruMI'T-I)\v. ~ I)ay of settlmicnt of the iiurchase. />(f y.«','/ '/'^' I'min})!. — I)ay.s of courtesy, |)rioi to the dav of final settlement for |iuii:liii-;fs At pMl>]i(' sales, twcnty- oue days' grace is allowe.d. (122:5.; 22. llANiiK. — A certain ponidii of property nnder the protectinii of the ])olicy. A ynnfur lU lujtd yuXw)- is one coverin<' all that a le,K8er rai)(it:. SMK IjII.) 2-1. Si'KclK. — The term i)t ssiin-ii' is a]iplicd to a ship wluiii, though much damaged, is still subsisting wuh a chniicc of reco- very, or, if after disa,ster it remain ii vessel, and as such reach its port of destination atloat. 25» SiiuuDY.— ^'u/'^ woollens, stockings, carpets, blankets, etc., pas.sed through the pickers. (I-H.) ^-3^^* ' : .'a*fflS*ss*#« m^i^^^tt^-'i t INSURANCE. " 3kllrt Mllttitu orira portuti." • 2tt. Insurance, or Asuurance, ns it is iiuliscriniinately termcnl, in its naked ossencc, is simply tlio iu'cniniuliitioii of niiiucrony small siuii:^ ol money, contributed by a larf,'t' number of persons, to cov.r such losses as may occur to any uno or more of the individual contributors, from the jioril insured against, whothor of the sea, lire, accident, death, or other uncertain event ; thus distributiiij,' those burdens amonj,' the many, that would otherwise fall, with crushinj,' cfVect porha]).s, upon the few. Its underlying' jiriui.'iple is muluolili/ of iuiertsi, to remedy nidividual injury by collect! vi' re]>aration; or, as expressed ui the motto iil"i\e cjuoted — " He.ir ye. one another's burdens." Speaking of fihiurance, Prof, Dk M(ma\N says: — " It ic, ill tiul, in a limited nense ami u prartioal melliu'l, llic aj.'i'oeiiu nt of a reinnmnity to consider flic goixls ol itx iiidiviilital iiKinht'iH as ('iiiimioii. It is an ngrcemient thai tlioi^c whose furtune it .-jhall Iji.' (f fluiuoes; the contiugeucy iusiircd againsL Tuay happi'ii or il may fail , or it may i)artly hapjx'-n or partly fail, — that is, there may bt; a total Inss or a ]»arlial loss, or no loss at all, under the contract, Jlcnee it u, that Ions t>r ihiniagc, by fire, considered in the uncertainty of ovouts, forms tho subjeet (»f insurance. (lOO.) J{<>. /y/'/c (ixsn rdiici', nnlike the tire, branch, is not a contract of indemnity ; it is contingent upon the uncertainty of life, and has for its basi.s the theory of probabilities. Tlie event insured against — death — is inevitable ; luuice iJic loss must always be n bital one. TIk.' chances taken are simply the probability of the pid.xiiiiily iir remoteness of such happening. (-^li'V Ins. (1,7,8.) J$l. While '//.-■'/ (Vf/'cc is iii'itiiii. a -^ali-. letting to hire, piirtner- ship nor wrtger. at its outset it was held to be in the natnic of a gambling operation— betting on enntiniicncie.s, — and it was (pK^tiouaidc whether, as a ]iriui.'i[ile of morals, it was to I'e allowed; iiiid iliere are men whose inrellectuttl abilities have secured a wide reiintati; iiicirc ili.-in a wiiirtT ; fi)r tin iiii'lcrwritc'r who injures at live piT wnt. receive.- live iKiiii)(i> Id return one liuiulreii upon the I'Ohliii'jeiicy ot u. certain event ; aii'l it i-^ preci-ely tlit siiine in it.i eonse- <)ueiK'e- ii.s It lie liiui betleil a wa^'er of iiinetx live jminHJ.s 'e live tliai llie .•'liip arrive- *afe, or tiiat, a certain event does or iioe.-< uol liapiH-ii.'' (Clirit-tian, 2 Black. CwiiiiM 10'.) n.; Justice lb Li.Ki: said, a centuiy since : — " Taken in iIh narrow fijrin. it i.« only a wager ; hut, iiure liljerally con- at.nied, it is an iinleinDiiy.'' * Jlli. Ill view .)l' the uiireriaiiity ot ihe contingency under- wr'ttci;, the eo(i>idei:ition in the ibini of pniaium, i,. be ] 'aid in advance though very .small as coiii[)aietl witli the contin- gent liability as.sumed, is aiiportioned iis the peril insured against may be deemed more or les.s uncertain or remote, anil the chances for salvage arising from partial lo.sses may be more or less jiromising. (I5;{2. I77!».) • If the parly making the (//.vh/c/icl- has noihtertst in the " arrival of the whip," or'" the happoniiiiT of any certain event,'' il rtoiilii t>p a Wiii/ u like nriu'in witii other conlmcl-i. VIZ.. per.-ouui irterest and the wcial hoinl. The law aVionnds in texts which ull^wone to d:sl>ur(U.'n liiiiiHelf of the uncertainty ofevent^ Ijv ihrowini; it on others." (1017.) " Till' eonlriK't o! in-iiriince it.? lawful, hccaiiPe the ri.-t.'t the ro(|uiienients of the case. WHO .M.vY iNsi i;e. ;$l. Al I'oiiinion law any one may lio(^onie an insurer; and, when not |irnliiliited by law, jirivate individuals or partnfrslii]is way engage in the htisiness. Ihiring the Colonial government of this conntrv n.s Wvll as for the first- tittceii m iwnity years after tli" |icace of l?"^-', thf busino.ss uf (marine i insurance was ahnost entirely earrieil ou by private individuals, fach taking singh, for himsell, and not iVHol'tdo, a risk to the amount ol his suliseriplions ; and it is a nutalilc fact that while iiianne insuiance bv companies was [u-adically unknown, tire insurance was as selddiii undertaken by ]»rivate individuals, although wu liud the Amsterdam hre policy of 1744 imdcrwrittt-n by individuals. (0J$. ) In this oouutiy, with fe'A exceptions, the business of nia,rine, lire and life iiisuranct' is confined to corjioratioiis, either speci.tUy chartered ur organized under general laws. In ICngland, many of the large.-'t companies are organized as " Societies," nnder "deeds of selllemeiit," or articles oi association, so termed. The (»arly mutual companies of this country also ad.opted this furui of articles of association, though it is a form (if agreement not common in this country, for su-:h purposes at lea.st. MaRTNK 1N8LRANCE. Jl»1>. W'lu'ii 'usiiiuin'r wiv.s first ieiliU!C(l lo pnictical busi- ness ptiri»i)si)s is very tiiuvrtaiii. It was first used 'u iiuvrine underwritmj,', in which liiaiich ^real untujuity isjusti} c laiiut'd for it. (47.) Kniiu the "Chronicle of Flanders," ;auhraoiug the period from a. d. ti2l to 1725, vve leaiu that a " Chnmhev of rih'< II ranees'" wms t'slahHsheil in the eity of P.riiL,'(^s, A. it. 1311), and that " \aiioiis laws and fbruis vhich the insurers as well as insured wt;u! bound to conform to, " were eiiaetoil for its ijovrniijienl * ^ ;{0. Thi' /'"(/ ///, •• Oidiiianoe of Barcelona," a ciiy of Spain, as earK as A, n. 14;)"), rcfiTs to jncx imis ordinaucc-<, nud ex- pressly enacts, not only that the contract shall in nil cases be executed before, and attested by a public notary, dcclariii;^' all other insurances wlmlly void, bat itfunher proliiliited insnranco liy Its own citizens licyoinl srrt'ti-ei'/lifli'" of their interests, ,nid coiiliiied Ibi'eieiit rs to /A,/7;r-Y«('.r^!r.s. fJi.Sli.j | Mae;cns' Iv^savs, 1, sec. 2; - "I. jHifOiitii,. IJ7. In ilic year loKS there was a " Chainln'r "/ /hmh ranee of (Ik ('it'/ i'j' Anu^lrrdaiii," and an " ( (rdinatu:c (jf Insnratuie.s and AveraL'cs," apjilying to ni.iriue iind. i writinu', and cvinciii>,' a I'ln;.' faniiliavity with the subject. This onlinance was -ub .set|Uenlly an>"iided and aiui'lilied, .ind re en.icted in the years IdTI'i. 1714, 17">ii, and 177ij. In the ordinance of 1744, in addition to a very curious form ol marine polity, aie lo bo ♦ From Azuni'H " Miintiiiu l,o tijc im'('tiiij;c wci'i' iielil iilimil the timi' of (he iippcarancc' o(" tlu' liliiiiet .Mitlmp}, as .some l;ciieve, or lifcdufie tlie Koiiiatis rc^^vnle.l that ilivinily a." a protector of Corninercc.'' 'Phi,'- veneraliic insiitntnin «;is siill in exi-iteiice in ihc year Klt'i'i, anil Scwi-ia ■•'ay.s thai it." name liad I'ten changed from i^oggia della .Mercatura, itsorji^inal title, to f.^j/gia del Cainbio. T -Sf '■ Ch.'itnhiTs of 1 II ?• a ranees " were e>.'tiiii)on .m ihf Huropean 'onti- neiit ander tlic seMi-al names, la Place, la M>ur.ie, la Lege, etc. In I'iTO, we liear of " Iiisuiiiiice Stret-t " ai the citv of Venice. TflUST IN.SIIUANCI-: (AW. m fmiiid an equally notiivvortliy lorni of fire policy and a tram, port (iiiliiud) policy, copies of which will bo found uiuler thoii luspoctivc ho.idiiij^a (tW, 1M>, 1114). ;t.H. Thij (.iirlii'Ht rcconicil mention of insnranc! in En-.'Iatul ia A. n. 1548, giich mention indicating' thr pmctine of manno insuranix- to have h'on conmn.ii and well nndcntood at that tunc. In A.I). l(i()l, tin; lirst insurani'e law was enacted in Kiiirland, fiiritltiil " An acto coni!ernin,i,'e inatUirs of A.ssnrances anioiiu^k! ,\f..-rc!iant(;s " (45 Kliz., ch. 12), as follows.— " VVhevcas it ever halhc Ivnc the polioio of this realm,, by all good nioan-^ to .uinifnrte, and .■neourage the numdiante, theivbie to advance and iiicreas,. the ,n;..ncrall w.-alth of the realme, hor Majestie's cnstonies, and the Strengih of Shippincro, which (lon- aideracion is nowo the more reipii.site because trade and tiairKpio IS not at this present soc o})en as at other tyrues it hath bene. And, whereas it hat he bene t;/in,. „„f ofmtjnde an nsuoe amon^' the nierchantes, b,th of this realine and ..f f„rraiue" uacyon^ when they make any great adventnre (egpeciullie mto rcmotti parts), to give some Con.sideracion of monev to other jicrson-s {vhichci»nmo>ilk are in „o >^mal( >ni,nbvr), to have from tluni assurance made for lh,;:r gn,,d...s, merchandizes, ships and tilings adventnred, „r some parts thereof, at sncli rates and in such ^orte as the parties assurer.-, and the jmrties assured can agree, which cuiir.se of dealinge is commoidie termed a polieie,.f assurance ; by means of which j.olicies if it cometh to passe upon the losse or perishinge of any shipjio, there fMll,,\velli not the undoinge of any inan. but theh-.sse lightethc nttlea ..asdic upon many than heavilie iip.ai fewe, an,l mther iijrun tbcnnhat adven- tare not than tiio.se that d..e adventure ; wherebv all nierch.intes especiallie the younger sorto, are allured to venture most wil- linglie and freelie." »». The business was carri^'d on solely by individuals, by means of subscri].tion papers, or agreements, in hands of brokers acting for the appliinmt, giving the name of the party desiring insurance, the kind of proptuty, and the amount to he insured. The insurers subscribed their names, usually tlieir initials only, under the agreement, and w.-re ilicn-e called nndonrrUers. Wlien the -sum upi.ai any risk was greater than any one unAUr- UTifn- was willing to carry, others nn-lerwrote their names also, until the amount needed was .subscribed or underwritten ; each bticomiug personally responsible for such sum or sums as might t.i a^CM>^'a^aaw»*»if^y- u L08B PAYAllLK IN OHOKB OF DATE. U) set nppoaifo to tlioir ivsjuM-tivo names, and nut in nollifo na joint |»urtnfr.s. W'lion tlio aniount was fully sutiMoribed, tliu jioliov was niadi' up or "rlosLul" by the broken from the ji^roonuMil, each party .-jii^'iun;,; his numc! in t'nil in the sumo order. (44.) VVhi'n this agroenuMit was nuide by ft company, and ont^rt'd upon tho I)ool<-. .md >llll'^^illg iiurst'lvc'* paid tin- ooiisideratiou due unto 119 lor tliif' arti^uruiice by the arinund , at and uCicr tlic rate of {)er i;cntuni. " III withecM « liereol Wf, the a«surei>, Ijave HuLscnbeJ our namen and euiui* afiMuri'd ii\ London." Name. Pat. Amount. 41. In case of loss, payment was usually miido in the order of the names and dates as they stood upon the policy, until the full imloinnity was se'.-urud ; sometimes as many as twenty or thirty names would be underwritten upon one risk. Tlie liability to pay lo.sse.s in the order of the date of sub- sorifttions was continued liy Kurdish com]ianies in their fire policies, each beinj.; lialih.' in lik(" order, until the adoption of the conuibution elausi' ^liMHj introduced proportional abatement instead. And from this source cjime the custom, so common .some years since, and not yet entirely obsolete in this country, b^ which losses were, under the conilition of the jiolicy, made, ptiyable withoiiL ri;ference to the dat<;s of tho diiierent (coinsuring; policies. (l»>S1»-11MIO.) 4U. The ])raotioe in France is lo alVix but one date to a policy of insurance received by a notary or broker, and this is written by iLe hand of the first insurer, immediately after his own I U>SA FAYAHLK IN OUDKU OF lUTK. 19 signnturo; the siib.se(|uent uinlurwritcrs Hul»8cril)c without artlxiiii,' any d.ito , Uu' poliry Ih thi-ii olosod liy the. notary or broker uiidi'i tlati' of the lirst suhsoriptioti. (ll^l, IIIHU.) Enierhjon (p, jt2, Mero of subscription) should l>e kncwn. and it nii>,'ht Ixi so by thtj means [iroposcd." iTho English rule, 1 1>1>0.) lu the Antwerp policy of 1503, it is especially "aj^Teed that the last as well as the first underwriters shall tako part in the aasuranco." So also, with the Amsterdam forms, marine, firo and rran.sport (a. d. 17i4), where enuh underwriter bt-eame liable i'or bis pro I'uta I'Voportions of any ['artial loss. LOM HARDS. ^ 451. "Karly in tln' tliirtoi'iidi ct'iitury, t;<'rtiiiii ItuliiHH from Loriilniitl)' — theiioc Htylcd " l.oinhtiriU" — tlidi n-siilin^' in Kii<{- laud, III tiitdilidi) t'l hniiii,' tin- t,'n'itt imincy-It'iiili'rM of the miiliHo agos, Idciiiin! fiiinuns tliroii^^'lioiit Kiiropi' iis iiii'lcrwriti'iN ; jiud " [.oiiilinul Mtrt't't, Lniidoii," their hniul (nmfters, takiiiif its tiuiiin fntiii their iiiitioniility, beCiUne reiKuviieil m a liiinliiiaik in iniiiiiie iiitiiiiiui'e. iiii'l the only t'thjo^^ni/e'l .sonue from which legitimiite iindiTwrifiiii,' cowM cmaMiito. It wiis ill th 'ir (Mpficity as mriiiey h'uders that the Loinha.nls wiTo sonl by Tope (Ire^ory IX., a. it. 122'.i, to Kiii^laiid, to l)an money to convents and comninnititis, orothiTs who were 'ujabh; to |iav down the tenths to llie eiinich, wiiieh 'Ari'e al thai lime collected with great rivuv nf its iisi! ; iiihI they |irol)iilily hri.iij:ht to IiOn().()ii thtt iti^'tiiiiiius iiintriiiiioiit (tlm iiisuiun.o policiy) vvliich U the snhjiit lit' this vlmiittir , ami i»i Uu- Mcicliaiit's W.ilk, at l-uinlianl mUci'I, si;,'iii.'il jiulirit's nf iii.miiuiich, wlii( li tiinliihiitod R» ;,'ri'atly uh iu»y otliiT akl to the onorniuu.i afUT-gnnNth of our luiiiitimc ouumierco." Fur a loiij^ jMiiiutl iho T/Jiiib.irilfj oiiijrosscd the (•arryiri;^ tnulo vitli luijjUnd, uiiil Wilt! tlu' Hut to iiitrndncu Hills of Kvclmnr-Q to fun ij,'ii liiiiiiitrifs , wliicli weiu iti usu ;is early an \. D. I ."i94, Tlii'ir n.surioiis tr.iiisactious, howi-vtir, evtMilually cmusimI tlioir f.\|iillHi.>ii tiuiii J''ii'4liiiid iliinii;,' tlit> rvii^ii of (.jiumii Kli/ali- th. For a liiwtory of tho Jiomlnirds in l''iii,'limd, aee Fred. Martin'a " Jli.-itory of I.Ioyds and Marine lii.suruiic(* of Urrat Britain." Loiidmi, 1870. iita. Mr. MaIjshai.i,, in liis \viirl< nuTnsiiranoo Law (edition of ISUJ, ]>. 211), ,says;~ •' II is VI ry |iit.))Hlilt> iluit (lie form of a |Hilii'v of inpnirfliico, nearly similar to t!mt wliioli wi' Iitivc now in uhv, wa» iitiroiluceil into Eiiglaiui l.y ilir Loui- Itanlf*." i ' AH nmriiio jiolicies in use in London, until within a very few yoUiS, containt'd the following evidonce of " vuiuivatioii for tho Fatlions : " — "Ami it In aj^n-vd Uy ii.i, iljc in-iinTH, tlitit lliis writiiijj, or jKiIioy of asmrancf, slinll be of a« niiicli force UU'I ctltet as the Hurcnt writing orpi'licy of iiisiirarnu' hercloiort' inu'lc in L'>iiil>,ii;l .y/n,./ ur in tin- Jtuyal Exoluingi', or firtewlicre in ivoiKton." * Tho " Londtaid.s" orioinatiid in England that systom of pri- vaie or individual insnranei^ htM-einlxdoru dcscribt.d (JM»j, which early in the fightfcnth century resulted in llie formation of Uiat organi/ation, which has for more than a contury cnjoyud a world- wide riiputation and authority in matters of marim; insnraaco, under the name of " liLoVDS,'' • Ttie Anooiia poli.-y, \. n. l.-ifiT, {irovi.1-8 in T.atin that: " It in also .Iccliiml to be bcrchy undfrf-tcHxl, lliat ii{,on all niatt.TH not exjin-cdcil in tijiti inHtnoncnt an ol)8t>r\anc'i? nliall be made of the cUHtouis ami nsaj:('s m i)ie I'Morcnce Exchaii^^e.'' Scaccia dc Asstcur, 207, LLOYDS. 44. Tlio designation " Lloyds " as applied to a regular orgiiuiyation of underwriters, originated, a. d. 1710, from the fact that these underwriters met regularly at a " cofCee-houae," kept by one Edward Lloyd, and known as " Lloyd's Coffee- Uovm" in Abehuroh lai-e, Lombard street, behind the Royal Exchange, London ; which, from its vicinity to the Woyal Exchange, early became a popular resort for underwriters, ship- owners, ship and merchandise brokers, and others, for the pur- pose of ol'taining shipping intelligence and the transaction of business connected with marine insurance esjiecially. The " Lloyds " association afterwards removed to I'ope's Head Alley, and subsequently, A, D. 1774, removed to the Koyal PJx- chauge, where it remained until A, D. 1838, when the building was destroyed by fire, originating in Lloyd's cofl'ee house. It was then carried t(t the old South Sea House, where it continued until the ojiening of the New Koyal Exchange, a. \\ 1(S4-1-, at which time it took possession of its present splendid apartments. The membership is divided into two classes, viz. : Umdkkwkiting Memheks: — Consisting principally of mer- chants and shipowners, who have paid the customary I'ntrance foes and satisfied the Managing Committee as to their tinancial standing, to the extent of £5,ii00 ready money at cidl. These underwriters either attend to their own bnsiness, or employ authorized agents to underwrite for them. Each repre- sentative agtmt usually acts for several principals, seldiim tak- ing risks, hnwever, in excess of £100 for each of his ])riucipals upon any one Iwttom or one poIi<'y, Sihsckirlm; Mk.mukhs; — These consi.st of brokers who qualify for entering by suitable introduction and payment of an entrance fee. of £12 Via., with an annual subscription of £6 6s. These members show their risks to the various other representatives of the underwriters v, itli a .* or label (140W), which, if a'^'ceptcd, is duly initialed with the amounts LLOYDS. 23 assumed by each. These " slips " are considered as in honor, and binding upon the subscribers until the duly stam[)ed policy is prepared for signature in j)laco of the slip. No joint liability is assumed ; hence no recovery can be had agaiust any one subscriber for more than bis individual proportion. 4»$. In the principal room of the association two immense ledgers lie continually open ; the one containing notices of "speakings," or ships spoken with at sea, and arrivals of ship- ping at tiieir several destinations ; the other recording disasters at 81 'a. These two books compose what is known as "Lloyds list." The intelligence contained in that '' list" is supplied by responsible agents in the employ of the association at almost every port in the world. It was commenced A, d. 1716, and continues to the present day. It is held that information con- tiuned in the " lists at Lloyds " is within the knowledge which every underwriter is presumed t<> jwssess. (ftSJI.) Lloyds have been giving attenti(jn to the fire branch of late years, but it wouM seem without much success. Their policies have been found covering American risks not of the best class and at cut-rates. Like tlie Lombards of old, Lloyds is now considered the foun- tain-head of marine uuderwriting ; and reference i.^ fivipu'iitly !uade to its customs ; and in the matter of marine adjustments, an agivemer.t is always expressed or imjilied when the insurance is effected to abide, on both sides, by the " customs of Lloyds." Its adjusters are known as "Lloyds adjusters." (See Fred. JVLutin's histcuy of Lloyds, supra.) 4«. A number of " Lloyds" are to be f(mnd upon the Con- tinent, though many of the associations known as Lloyds are sinijily steamship companit'.'.i ; and in some of the Stiitiis of our L^nion — in Maine two, and New York city one or more. In this couutry each 8ubscril)er pays a certain sum of mojiey as capital — usiuiUy one thousand dollars — which is placed in the hands of an agent who ■•onducts the business as attorney for the parties, on a commission, the subscribers taking no part in the business, except to share the profits. There is also, in the city of New York, an assocuition styled 24 AMKBTCAN LLOYPS. '■' Indundnal UTiclervMters" <^ouv^ f\raM'mo, business only.* In Boston, Mass., there is an asso(!iation styltul the " New Eng- land Association," for the same purpose. 47. From Lci/lmtrn's Panarithinoloijia^f published A. P. 1693, Avo get the following,' extract giviu^j; the practice of marine insurance at that time. Ho says : — *' Arfliirance is where you are in any niaiiner oC fear of tho i^liip your gocKlH are in, or of tlu- danger of f lie voyage, or of jiiratoH, etc ; you then are willing to givf anotiier man a certain sum of money to put him.'^^lfin your place, and if any damage arii-e^, to pay you for tlie 8ume goods the value that yon have assured. It is a thing that hath heen long in custom and use amongst tracler.a, and wa.-' oilabliished hy law nndi>r Claudius Ci'sar, before the birth of CH.iisT ; :• hath been much practised in al! trading natiiiii", and is a cause of great increase of trade, because the hazard i« borne by four or five nith mutual consent, which otherwise might fall njion one [x-rson. The nature of it i- thu.-.: Suppi.-eyou shipXSOO of gnodsfor .iamaica ; you being unwilling t'l run so great a hazard yourself, yon tro to the Assurance Office, behind the Royal Exchaiige, in London, and there ac(|uaint the clerk you will eoHure for i,"200 or £2M, or, if yuu will, the whole iJ.lOO (for you jua} ensure the whole oi any part), ujion such a shiji, (oc so much giKxiw ae j'oii liaveoij board.'' * Within the (last few years an Iii entlon, and A Cimftunt Concomitant flltmt ii^'t (ill Min'g (Ar\'as tlien toruicd uiiiversally, Assurance, came to bo regarded as a ivaycr oidy, and every coM(;eival)lo object or pretext was made the .subject of insuraiic*; ; during the famous South Sea Bublilo, assurance, degenerate'] to wagei'ing, run wild. We read of con)panie8 for insurance against liighwaymen, housebreakers, thieves, lying, death by drinking Geneva, insuring female chastity, against divorces, on marriage (otiic(! in Petticoat lane), infant bajjtism (tliese latter two (.'o-operatives). lAttU goes, Uitteries, or any public event would do for an insurance (?). Large sums were paid by the underwriters at Lloyds, who speculated uj*on the failure (A' a young fellow who had undertaken, for a wager, to go to Lap- land, and bring back, within a given time, two reindeers and two Laj)land females, M'liich feat he a ccom] dished. (Marsh. Ins., 199 ; VV'esk. Ins., ;<3 ; Waif. Hand Bv)uk, 25.) A writer of a few years later ,suys : — " The making of iii!-urain:e vastly iiicrea.''e(i ; for ganmsters, w!i<.'ererB, ami cunning felluw.s wliu irretend to il(-a] in i^peculatioiis, began to beiilniost an much concerned as the inerchant.s, so that a policy of insurarxip, in a phort time, acquireil rather the etlect of a box of dice tliau a contract to .secure trade ; and as gamhlers seldom {'lay fair after a few of the first gamep, it was not long before foul {)lay in assurance began to apjiear, which has ever since continual to increase insomuch thai it ih now almost as cmmou to hear of a wilful and fraudulent loss as n inevitat)i<' lo«8 at sia '" (1 Magens Essays, .'JtJ, hcc. 29.) 4». This state of affiiirs, and the numerous failur<;s of insurers to pay honest losses, except after heavy absitements, if at all, and the insolvency of some ow Imndred and fifty of the.se " underwriters " within a very few years, brought a.ssurance into disreptite, and not only gave rise to the common proverb "what is it worth to insure the assurers V^ but many of tlie policy- holders dill re-insure their in.-urers by taking double insurance (1016); and goverumeut interfered by statute (G Geo. L, c. «=««lS»*5WS«i3^5S»5^«-_ ^mmmmmmm 26 WAOERING OK GAMING CONTRACTS. 18), and restrained somewhat the rule of coraraon law us to the nuliinited right any man or body of men had to become insurers, by chartering two compiinies, "the Royal Exchaui^e " and "the London Assiiran(H\" with exclusive j)rivilpge3 in marine under- writing. {«0. in.) (Waif. Hand Hook, 1^7.) 50. Wiujerhi'j poliiiie.s were, speeulated in to such a degree, not only in England, but on the (.'ontineut, that the Icgiliniiite business of insurance became .seriously demoralized thereby. In I lie year IT-li'i, Stat. 19, (ieo. II., i.l'.ap. 37, was enacted proliibiting the is.suing of gaining or wagering policies," intereat or oio 'biU'rcst." (2M7.) The celebrated decision of Lord ]\L\nsfiki.d, A. It. 177H, in the cnse of gambling pobcies on tlie .sex of L'liev. JVEoN, was the first legal nihng making an insmrahle intcnst the basis of the contract ; thus putting an entl to wager policies. (2 Magens' E.ssays, 34L) Jiy the " Ordinan'-^" of Insurances" of the city of Amsterdam ivagcr policies were forbidden as early as A. D. 1*>9.S. ♦51. Tlie following i.s a translation of the civil statute of Genoa in the matter ofwwjev policies, as given by the Lonilon Assur- rance Magazine, viz. : "Securities, IioihIh, or wagers may imt l)e niacio withoiil tlu' licensf of tlio Set»a(e, upon the lifeof the I'ope, nor u|k)!i thi' iit\' of !iieEnip«>ror, ii<>r U|X)ii the life of kings, ciinliiiftlt*, dukes, princo, t)i^hu{>^, nor ufion (he life of Oilier lonlf! or jwrson^; in coiiKliluteil tiijjnilies, ei-clesiasticul or necular. Neither may tliey tie inii.ie upm the acqiiiHitioii, Iohp. or oJiangeof lorclblii|ii«, govi'rnnients, kitigilims, proviiieiT^.iliiLliie'-, cities, hinilf, or)ilaces, ni>r upon eXj.K-eteii liimim- or \var, or the coiitrar) , nor upon the election of governor or magistrates of the republic, anii, in tine, upon any transnctionn having tliis species or form of a hoini, security, or wager." (1 Muijeiiii' Essays, SI!, t id. 07, .-ec 155.) *,4 il .'m -'■mm m FIRE INSURANCE. 52. While the system of marine insurance developed rn]»idly and continuously, keeping pace with the steadily growing pros- pority of the mercantile world, until its progress was limited only by the boundaries of modern cimimerce, and the advantages of insurance indemnity began to be reali7.ed,,//re insurance, its legit' , ,e though tardy olfspring, came slowly and lingeringly into ir^piite as an erticient coadjutor of the projierty holder in securing adequate indemnity for loss or damage by the ravages oifire, no less destructive at times to houses and good;-? upon the land tlian were tho winds and waves to ships and the.ir car- goes upon the treacherous seas. Merchants so provident as to their ventures, when exposed to the perils of the seas, seemed blindly to ignore the equal chances of destruction to their pro- perty when menaced by fire on land ; and it was not until the great contlagnition of London, A. n. 1666, that the comuniuity was rudely awakened to a spasmodic effort to provide security against a recurrence of a similar catastrophe, (vii, Assur. ilag., 213; 3 Waif. Cycl., 438.) Numerous att(;mpts seem to have been made immediately subsequent to the " great fire " to open Jire offi.ccs in the city of Londf)u, all of which resulted in failure until the formation of the "Amicable Contributors," A, D, 1G96, some thirty years after. (5^*.) (IMarsh. Ins., 681, et seq.) 5;i. Among the early abortive attempts at forming some general system of fire insurajice was, as we learn frtm Ilarftlen's Dictionary of Dates, the scheme of a mutual insurance office, which ultimately resulted in the formation of the '-Amicable Contributors." We also hear of a company " for friendly insurane.e against fire," at Kdinburgh, in 1670, consisting of a number of private contributors, agreeing to insure each other. 5-1. From an article in the //. 8. Gazette (vol. vii., 1858,p. 125) from the pen of Geo. Adlakd, Esq., a well-known under- writer, and for many years manager of the Queen Insurance Company in tlie city of New York, we get the following history 28 FIRST FIRE INSURANCE COMPANIKH. of two of the early, if not tlnu^irlii'st, tiiv cmiipiiiiio.s in Kn<^Ii nil, viz.. "Th( FireOffu:e," IGSU, and the " Frinulhi Suc'wtti/ iu IGcSfi, which confined their business to liouses oriI that the w' or T''iisuring Houses i>y the Friendly Society i of more beii •. ' i.'tisfaction to the pnblick, than by die.Fiv Ollice, >.-:.lv i.s graciously jjleaseii to declare His pleasure .r Pa: cuts shall be granted to the said Spel aiviu aud 'ft- m ■'M'- # •W/: m y: tb. FIRST FIRE INSUUANCE COMPANIEP. 29 ^iw Partner, as afon^said. f.-r carryiii;:; on tlieir mctliod of Ensuring Housi's' from Fin;-. And His Majcisty duos hvri'by likuwi.so order that Mr. Spthnan anil rarlner do present a la-oposall in writing to tlii.s IJoonl on Friday next, wlierehy the said Vincent and I'artner.s may be preserved from Knyne." On the 20tli January, 1087, the King being present, tlie following anion was had ; — "Tin- niatler in difference between Sir Jdhn Parsons, Siunuel Vineent, i^s(i.,l)r. liarlioni'* and Partners, cone -rning th(> lu^nr- in<' of Houses from Fire— (Fire Oitice projjrietors) ; and Wilh'arn Hale, and Heiuy Spelnvvn, K^i\., Undertakers for the Fri.-ndiy Society, being tliis day lieard at the IV. ord l)y C'ouncill, learned on both sides, His Majesty was j.leased U) declare his royal! intencions, that he would grant his Letters Patents under the Great Seale, to the said Sir .loiin Parsons, Samuel \'iiicoin,i> pruseiifc in Coimcill, " ujujii lh« IVititioii of Tlioiiia.s Silvtjr iirnl TlKniiivs J)()d;,'(', His Maji^sty's (iuuiit^rs, in behalf of thciu.sulvii.H aiul others, for an allowance to lo inatlo them by the Phisuiuia of Houses from Kire, towanls tho ('har<,'e, hazard, and jiaiiiei in blowing 111) "^ houses, and otherwise Hxtinguishingof Fires, ll is ordered by His Majesty in CouikmU, that in regard to tho rotiti(iners and the (Junuers under them, are lieionging to and nnder the immediate direction of the Master and Ollicers of tlu! Urdniince, who are tiie best able Ut judge of the merits of their respective services. That tht; same of sixty [lounds per annum be reserved iH'On each Patent that shall bo uranted t:) any Eiisiirers of Houses from Fires, to be jiaid ([uarterly into the Treasury of His Majesty's Ordnance, and from tiTue to time distributed by the Master of the Ordnance for the time being, according to the respective serviies, merits, hazards, and accidents of the persons em])loyed therein.* Whereof Hia Majesty's Attorney and Solicitor Gcnerale are to take notice and see the same done acconliiigly," 5T. In the month of September, 1681, it was agreed by tho Common CVuincil of London that books should be ojiened for receiving and entering subscri})tion3 ; and that lands and ground rents to the value of ,t' 100,000 should be settled as a fund to insure such houses as should be subscribed for; (he jireiiiium to ho £-4 2>^j' ctut. for brick houses, and X8 per cent, for ti/nber honscfi ! ! By a resolution of tht> Council in November, 1082, the court decided tu relinquish the business and return the money to the subscriljers. (Waif. Hand Book, 44.) • It uuul(l iliiis wern tlitit nndprwriUTK of tliose early duys t'DJeyetl n privilf^ie coiiimoii to ll:ose of llie prt'scnt, Mini for similar jmrpuHe*— tliat Ih the right iu be lietu ilv taxed for the Iwiielit of non-iimurers. ^* ! . IlAND-IN'-HAXD INSURANCE SOCIETY. liH. The first re^'iilarly oriTanized fire insuranco cuinpany was foundi'd A. i^. lO'JO, in London, und(!r the designation of '" CoNTRiuuTous Foi! INSURING /^oww^, Chavibevs, w Jiooms, pr'incipallijjire, hi/ Avdcahlc Contrifnition," and cidl.'d tlie " AMlCAliLK C')NTi!llit,'TOK.s ; " better known, howevc, afterwards as the, "Amicahle Contrihutionsiiu' for the asr-nraiice of hoHt^en (ind i/oodi from fire." The name of the Suciely was changed in lf>'J8, to the " IIand-in-Hanu," by which it is known to the present day, being the oldest existing fire insur- auee company in the world. The principles npon which the Society was organized were somewhat peculiar, and Ibrni the basis of some of tlit; eai'ly judicial insurance decisions. They ditfer materially from the policy of the Society in its modern form. (Jl!»7.) They were as follows, viz. :•— " I. The policy whh for seven years, and covered liouses only, " II. Till." [ireniinni for tlie firnt year was a rate h>T tl.at year, and a( tlie eanie time a ihpDitit that furuiKhed the rale ior ilio remainder of tiic term. At the expiration of thf policy tlie deposit was returned lo the in.-u eii, \mi1i a pro rata nhare of earned prolits. "III. .\11 v'xAi' uere afHumed williout t!ie e.xcepMonal clause, as to eiieniii't*, military or usurped power, relieilioii, civil c:iiiiniolion, riot, etc., which was sulwequently introiluced into their policy. (1074,) "IV. The property was protected diirinj; the term iif the jMdioy rti/(j()is< any numbi^r of Iv.-istn, not total, without reducing the amount insured on tha premises or impairing the deiK)sit. (8S5.) In case of total destruction, the company had the optiun to pay the whole sum insured, and thus terminute the policy, or rebuitd (to begin within six dayn after tlie fire happens), tlie policy conlinuitKj in force; and how often soever the destruction of the builiiiny I'y lire and the rebuilding might occur, during the term of the in- Burance the [(oli<;y remained in force Here we find the germ of ptTpetual insurance (U41), and get some light upon the lecisioua of the courts upon gucccusivc losses. (18/»8.) " V. The payment of the deposit, the acceptance of the jwlicy, and signing the articles of association made the insured a member of the Society. "VI. The day of issuing and the day of termination of the policy were v'*r*«JC»,wrt;pt^.f •,■-!. 83 KAULY KNi.MSll KIIIK (iKFIiiKS. lx)tli iiiolu.li'.l ill tlit> iliiiMtioii elf lilt' iii'iiriitKU', wliK'li illiiiiiiniites llio deci- aioiis of tlic KngliMli ccnirts upon iIiih Hiiliji'ct. (84H.) '' \'I1. All il''>*i;4miiiMit-i Were t i In' iml-'il Ut tin- S icicty ilii'l t'li'lTHfil upon till' pi'lic'v wii.liiii twi'iily'iine A\\\^, 8iili't'<|ii»'ntly I'liutijifil to nii rti/ lii^yx. " \'ll I. rill- liM.iiiieHi« \va-< (lOMiliic'li' I li.ir ilic prnlit hikI Iimh nt' Jif ' row- triliiiliiiN ; ;iii I U|i«iu till' teriniiiiiiioii of iln poiii-y. ilic iii--iircil reociveil tlio dfpiifit iiiiii ins prii(Hiiii()ii (if tin" prolil'*." Mr. Hiiu.voK I>INNKY, ill ii ct'iiU'niiiul luldi'orts Itofore tin- (.'oii- trib'iturs nf tlu' I'hiliulolpliiu Cinilrilnitioniihip A.Haocialiou, s^iys of tiii.s 8oi;ii'ty, its piogeiiiU)i' : - " (J|)oii whiit Ciit'-W It e«lHl>li» dcvixt'd ot' t»'i;iiiniiis,' an t'.\|H'rinu'nt. It plaiit>'d llie -(•cd from wliicli llie now inarvt'lous tree lia.s grown up in Kii^land and clti'- wlicre." Allium,' llic early lif" olfici's, still in fxincnci', :iri> the I'ollowiri'j; : Hit. Tlh "Si.v KiUK (IKI-ICK," is.'jliililisli.Kl in LornlotJ, April, 1710, iipiiii till) joirit-siMrk jilati, Tlui origin of tliis i'i)iiip;iiiy i.s sotut.'whiit i|Uiiintly tlL'scriln'ii in tlie rtqiiirt of an early iii.siirniico Ciisi,!, \. 1). 172'.«, as folluu's . — " Alioiit ilic year 170'J, somi' pcr-^'jns oiiserving tli<';.'rcat ln-iu-til aiirnicd to llif piiliiic l»y insnranci's niadi' lu ilii' ciiii'r- ol' Lonrlun and Wt'-tinin-ittT ajrain-i Io^ncs on h(iai!f!< dy lire, but that sucli insuraiict's did iioi extfiid to other piris.ii H i^'land, um- w. re there any in.««rrt«''M iii/ttin/i-xistini{_/f/"6' coinjjany that covi'fi.'d nio\alilf.> ; anil, appri'datint; thu dangers ulU'iiding such an undfrtai^iiig, it jirepared to moet thein by tlio adojitittn nf \n\)- catilionaiy " projiosals," fircotiiiitions vindiT whii/h .sUi-ii iiistiraiicos wiiiiKl \v. made, all of which 1 avu dcsccndLul li; the prcsoiit day, eithiT 111 tilt! same idtiulical form or but .slioliijy ui(Hli(ii.-d to meet ilit- changi's uf tiiuu' and circiiiustanne. (I07.; (Wulf. Hand r.ui.lv. 25.) Finiii its business embracing a wider scopr, than anv iif the preet'diiig onnipanios, it, soon ix-i'iiiiu' a Ifading ollicL', and pl.iytid an arlivc part in the early history of lirt; iiisuraui^^ in Eii;;laijd, and at thi.s timu is among the most wealthy instiLutiuus ol" that kingdom. m ^';b! EARLY KNOUHll KlllK OFFICES. 3:{ 51»a« Tho next in 'late, a. n. 1714. was thn " Vjsm^ Kike DKKici:," or " Ihubk Uaikd iu-lfmul," in Luudou, wljere it is still tlouriHiiins^. .lllb. Ill t,ln' year 1717, uiiotlicr aooioty, stylml the " WkhT- MiNHTKK," WHS startoil iipi'ii flu! Hiitnc principleH as tlie Hiirid-in- Iliuiij, cdiifinin;.; itn luismcss entirely U»li(in»eH. Up to ilu> year ISHO, tlic iiuuia^(^ini'nt of this society hiul reniaineii for 1 (lO years in one (amily, di'sccinling from fatlier to son. 00. Ou June 22, 1720, G (iuo. I— "The Kovai. Kmuuanok AssunjiNCK/or in>rurin(j Hh'ipinng and (joi>ds at Smi or goinoN AynuKANCK," for the same purpose, were chartered ; for which ohartti £;>00,0r)0 were to he paid into the royal treasury. By .snppleriietital oharti^rs (1721) the tirst-nained was iiuthor- ized to insure lives and against hre hj.sses. («i»*l.) TUl- second " in msure houses and goods from fire." (Waif. Hand U.k., 28, 33. These two conii)anie.s are still m existence, and are the oldost murine insurance offices in the world. J}y their charters they had (;xi.'Iu,sive privileges in iriarine undtirwriting as against all other ('iinipani((s oras.sociatujn.s, hut not against iudividmil undiT- writers, until A. l». 1824. 01. Mr. P\i;ivs, rcfiu-rin:,' to these ollioes, A, o. 1788, savs : " 'I'Uc Jegis! itiin.' liMvlir.; tlniH ;iiixiouHly proviili'il for tde Hociu'itv of tlio.si' ineroli.'iiiiH, wlio iiiit^ht luMtc^sir uii.- of i;itrryin>< on hii t'xieiisivc traile, but who were ilcturrfl li'oiii .iuing ko llirougli fVurot" tho iiisolvL'n<;y of undi.T- writer-, having ("tipnliiU'ii wiih liic (:oin|t.iiiy fliat tliey shoulJ hi»vc svilHcieiU fumU for the i.>ii_vinent of .'ill chMiiiiiJ,-i that inij.';lu he inude, iiiui at the same tiiiit' ullow'n^ to prirat'^ uiuier-vnter , ilic full lihorty of iii-iiiriiij: to uriv (iiiumnt with those who were Siiti-tied it, tru?-t t') their private .securities oiilv, it i■^ ncii to he womtereil at that the bimue^i of in.siiniiict^ iiu rea-^eil ti, a degree alii)0?t ineotieeivahie lieieeii, miy pcrnon, sinci' thi.s fintuti-, inuv insure ati at the ooinitiin law, with line siuj^lc e-xceptioii, that any tn.ilicv eulHoribei' by a private linn or |);vriiiirship in nl>sohitely voiil." 03. MAf;i'/-s, iu hi:^ AVsvt/yv otc Linuraacti, (VtjL. I., p. 31) A. I'. 1 7r>5, says : '■' In I.mtm insurances from tire are obtainu'ile at such easy rate.?, tliat there ar.' !'■ w nicrcliants but choose to be insurcl for their own (juiet ; besides, tliis precaiilioii adds to their eredit. both iit home ami abroad, when it i« known ttiat tlieir great eapital.« lying in tlieir Jioui^esand warehouse.-i are thusHecnred from the liunies." ■■ \^.VS.^":;' rTwflWi SSSS^S^i^^** ^~^!r^iae^iSS& 23;*iH'wfli!S8S9l>^^' ' . 34 AMSTKFiDAM I'lUK I'oF.irV. Thus ]»ri'Hontiii',' ;i (uarkcil contnut wit.h (he previous cen- tury, wlii'ii lire iiisuiiiiii'i' was alnifist mi known. Since tho period of which Ma'Jkns wroto, liie inMuranou, in tlio extent of its tmnsiiciiiMH, hiis, in Kiii^'Iniiil, (jiiitc exceeiied its prototv|ie, iiiiiriui! insuninci' ; and from th<'«r ht.';.(MuiMij,',s Kii;,'Iund hin tutuia to bt! the vfreiit insurini,' n.itioii of (Jhristendom. Its i.oni|iiinieH are rejaestnited in every iiuarter of the ijlnlie, and their jxiHoieH an? indited in evt;ry wriitcn hinj,t«iiij,'n. CONTINENTAL FlIU': roLICV. nil- In thi' •' OrdinaiKH' of I nsnrancos and Averages " of tho city of Ain.sterd.iin, A. \> 1714, we tituJ a form of lire jidiey dillerini^ n'lterially from ihat of lie- Kngli.sh coiiipaiiy, — and, fo) that matter, from all uthcr //»■'■ iiolicies, " lh(niijhl >>/ <>r nut thomjht o/,"— except in one ^ulitary instance, in this country at least, that nf wli.il win, iii IT'.'-*', known a.-> the flarf/nrif Fim Iiisu I'l DCi: (''iiipiiiij/, iif wiiii'li thi.i was evidently the prpen either by temjiest, tire, wind, om n tire, negligence and fan it if own .servants, or of neighI)ors, whether those nearest or further off; all external accidents and inislurtiines, thouglit of and not thought of, in what manner soever the damage by Ic might happt;n ; for the space of tuelve mouths, C(.miiiencing with the ■ ' - and ending the , bnth at twcdve of tlie clock at uoon ; valuing specially and vulunlarily tln; said structure, '.1 ■I i? * AMSTKKD.VM J'lUK I'OMCV. (^ btiildinj,'. lioUHo, etc., with nil its iit.'iisilsutnl hoiiscliold fiiriiiturp, at tilt' rtimi "f . !i'"' '''^' i,"»o(ls, wiir.'s, ami iiii'ivliiiu.iweg lit tli<' •-1III1 nf .ami thiiM tn^M'tliiT iit tlit! sum of — , (inil it nhiiU not in't'Jiiilii'f vliitlii'r till ihii he north, or han co.il, iiu>r>' or li'.-ii*. iVii'l tilt' iiisiiivil, or wliom ulsn it may ooti- wrii, in I'lisc nt'damiim' or liiiil. shall nnil to ijiiw no proof nor ficcount of the uulue, nn we hn<'"' it la unjutHMihle to Ix". done ; but the iiiiMliuini,' ofthis pdlit-y wlnill •^ullicc. And in cani it slidiild liai'iK'H tlial till' -aid .>lriictiirc, building, liwii^i', nton.sils, and lu)ils(;linld liiniiliMv, and tlio ,v,'i)iids, \va^•(^■^, aiul jutTcliandi.Ht'S, tlic! wlii'lc 111' pall, !iri' Imnit or sutVcr danui'^'n >iri lliut aci'ount, we dii litTi'liv [iintiiiso iiiinctiially to pay and sati-jfy, wiilmnt any exct'ptinii. wiiliin tlic .space dfllircy montli.s ul'ter tho fire sliall lia\i' li;ippi'iM'il, of u partial Idss.all that shall hi- fdimd to li' saved and preserved shall he de hu'tt'd, lifter thu dediictiDii of tin; i haij^es paid I'ltr sa\in.L,' iind ]»reserviii. Ma(.kns. writing in 17."5, says: " AtJlaniburg there is " Fil;E <'.\rjs\' ot Idug 'Standing, wherein tin' priricip.d Ixjuses are iusiireij at the value of lifte^'u tli(Ui>aiid marks (about i.l,')OUj, to be paid in case of their being burnt." Fire cassa wfus a sort of niumcipal fund, raised by common assessment of all the house property t)f a city or town, to provide a fumi for u'iu-'ImI pnilection. It is the liasis or the system of goveiHiuentai ni-urance. ll any iiidividii.ils I'uiled to contri- bute ilii'ir i|Uota, according to the value <;! tluir pro].erty, the pro iiita priiiri[ile would be applied in case "f 1.,^^. (Tl.j VlUE JXsriiANt'K IN F!;aX( K. From the very interestinic work of Mou.s. V. l^eiu'^, entitled "Les guestiiuis d' Assurance.} de 1878 a 1881." I'aris, 18S1, we get the ibljuwing refnune of early iusuraiK-e o)li(!es in France. 0<». liy an edict of Lfjuis XIV., bearing datt; May ol, l*)8o, the tirst inaritw insurance eonij'any was established, in France, no name given, with a capital of 3UtJ,000 livres, and a monopoly of all marine business done in the city ol' Fans. To make tUo FIRE INSURANCE IN FRANCE. 37 undertaking jmpnlai among the gentry of the period, the King declared that " those who became memliers of this company should not thereby bo hehl to derogate from their nobility." The limit of the company's existence was but ,six years, but according to Valiii ((.Vimnientary, vol. 2, p. 26)* it JasttJ but a short time, referring to which fact he speaks of another c;)m]iHiiy formed under an act of association on Jan. 29, 175t), under the name of *' Chambre lioyale d'Atsmirances," which fUd not eon- fine itself to marine business only, but covered upon houses against loss by lire as well ; tlio su]>,scribed cajiital was four million livres ; subseiiuenth' raised to twelve millions, but in 1754: reduced to nine millions. This company, like all othei' tiiian- cial institutions, perished in the revolutionary tumult of 17S7. On Nov. 0, 1786, a new company was organized in Parig, under the name of " Compai/nic d'Asmnnico^ cuntreleshicen' dicfi," with guarantee capital of eight million Hvres. One-fourth of tlu! profits were .surrendered by the company " for the su)iport of a corps of firemen," or for any other purpose. In the year following this company became " LitCompagnie Roya'e d'As- surnnn'S," wlih life powers, and p;'ri;-,hed as above recited. It was not. until a. n. 1818 (Walford says 1810) that the fii-st regular stock, or prnprietary fire insurance ofliee : " La Mvindle de Paris pour k,^ Ivcendii-s" was organized in Paris ; followed 1819 by a second pri»[irietary fire office, called "La Compagnie d' Assurances GiiMralen" and " Le Plmnlc" another proprietary fire olli.',i', in the same year. «»7. iM-eneli eoinpanies are now (;f two kinds — titoch, or proprietary, and Maltial, viz. - Stock Coss\'\siK^.—S'>f:i>H^H unonyhie^: d'as.mranctj.i d prime.t." those haviiiu' li.\e(l f.reiuiiinis, e'iu.vi,'. '. ic utoclf. companies, with a capitaMuly fiut>HcrilietJ in shares, on wh'v ri ..r' !..h8 than 50,000 francs shall be i>aid in. Twenty per cent: of the net pro fij, mvt be reserved until ihe reserve -^uud * "They say marine iiiHuniU' e. he(iiini' there can be no qnostio-i hut of that, and not of that whi'h is n»a le for nilan.l travel, or for aecnrini: owners of huu-ie') from the dangers o\ (in- and otlu-r aeeideiits as i.- [iractiHed in Etw. land; and as is proposed to be done by tin in^urauoc (•onipany reoenlly eatahli8he<) in Parin, according? to iln ridi,,, M'-.,oli 2'.', 1T")4. Tliere r.r(- si; li- lar in-nrance conipanie.s in tiie l>nioliy of l,niiet.nr>;, ?,oll, P'-«m«n rmd Verden" (Journal JIit.v Ml'TUKLLE DE l\\.n]:> pouv lets iiumrxbles" ( " I'aris Mutual Insmance of /»t- viovablc property " — that !.•=, hon.se.s), which was organized ,v, D. 181 tl. The .second was a proprirtary comjiatiy, organized A. o. 18111, called "La Cvmpagnir (rAftsurdnces Gcut'ralrs." The " Pku)iix " was organized the same year, as a proprietary company. Up to the year 1881, tliere were in !•' ranee thirteen prujirietarv unA forty-oiu' mutual comjanies. The laisincss was divulrd into iiioiiMe, immovahle, 'dud ycncriil. ( (f the- forty- one mutuals, iii)ieti(')i. insured oidy iDinioraltfe }>roptiti/, as houses ; /o('/' insured owvuble property, as hon.'^ehold goods, merchandise, etc., and e'xjhteoi insured bi'fJ'.ov iirifralltj. (iOVEKX.MKXTAL IXSrilA M ' K. 70. in BvVAKU. SaXONV, WlKTEMHl KI., (iKANM) Dt'illV OK BaI'KN. I'ltusiiiv, as w.;ll as Swiiv.kki.a.nI', lii-e insurance, of dwelhngs, especially, is in the hands of goveiiini<'nt, through the ageiuA' of a "fire insurance lU partuient," and eveiy hiiilding is insured a.s .soon as cumjileted. The insurance is tipun the mutual fire-i^tis.sa (ttrt) [uinciple. and is contiiicd to each State. Eai it in.suiH r i.s a->.-t cliVJ^'d !!•< cxtra-liazanlous wn.^l be inaureil willi the .civiriiiii'-iif coiiipaiu'. Hui tlu' fliimeH keep alieatl of the rates, anil the •;ov«rmiieiit insiimtiun ha,-< now (1870) a delioit of more than a million thalers, I'li is State otHi" i.-', in reality, a public charitable establishment, under the regulations of which th>' laij^c ami well-i-epulated cities, adeiiuately supplied with improvtHl fife d.'partmetits, cover the iMsses of the ill-con.struoted sniall towns ami viliagfs, destitute of a (ire depart- ment, and ivitliont any ensrines ex^irpt tlmse ot very ancii-iil description." V/i'i.i ; ,• -neration, in one of tlie ]n'oviiices nf '>\i\(m\, fifteen. citie- weie •-'troyed by fire, and a very large number of small oiuo 'b; '"ghout the kingdom had been seriously damaged. T<> those L ■■' Leipsic ami Dresden were compelled very dispro- portionately txjuntribute, much to their disgust. Fami these facts, it W(Mild seem tliat Sa.vtiny well deserves the na.nie of •'the fire land," which has been api)lied to it. 7M. lio.lgiuin, Doiimark, Sweden, and Italy also have their lip insurance companies, operating upon the saiui' gcmu'al ]>nn- ciples as other proprietary companies on the Continent; and even the " (.'tile.stiul8 " of China have bocoiiio fire underwriters, ibroii' as well ua at huJiie, tlKnigh imK-^tly operated under ■■Ml prTJTr 40 FIRE INSURANCE IN C.P:i;MANY. r.iiglisli auspices. Tho " Yaiig-Tzc Insurance Aftsociatiov" of Sliaiii^liai, has had an ageiu-y in fSan Francisco, Cal., since a, d. 18G6. Cash assets then §1,227,941. FIi;K INSUIIANCK IN GEIJMANV. TH. The first pnhhc insurance institution in (Jermany was foniuled A. P. 1667, in the city of Hanibui<,', under control of tlie nuinicipal authorities, as described in see. (70), KUjrra. At the close of 1887 then^ were thirty-six of .such fire-cat>sa in the German Kiupire. The first joint stock office was founded in 1812, the DerVin- Ische Fi'uev Verslcherv ngs Gesell- ' 'ft; while, at the present time, there are in exi.steuce some ' ^"'w.i o'.oek offices; 11 niutuals, and 2.33 small guilds or el.ilv ly British, Belgian, Swiss, and other nationalities, liav(! agv'. « throughout the citie.« of the German Empire ; while in turn, some ol' the larger German offices have agencies es(aliIi.-jlK.'d in the ('tintinental cities, England ami America. Fur forms of German policies, ace (4a», 132.) The projiosal, or apjdicatinn, forms the basis of all insurances in the German Empire : and wiili icw exc.ej)tions, every proposal must pass through tlie hands oJ the police and be registered, with a view to the prevention ol' fraud, over-valuation, etc.; the issuing of a policy, before the police has ceitilied the pro- jiosal, is punishable by a fine varyuig from about S4 to S3(). lu ad(Ution to the premium and the stam|)-duty, tlie insured pays the following charges : policy fee ."it* els. ; renewal of policy fee, 2ri cts. ; endorsements, each, 12i cts., and for house-plates, 12J cents. Some companies make it a condition of thei policies that a house-plate iHust be put U}> conspicuously, part cu!..;"I_; on agricultural risks. I'olicies covering amounts less than about $40 are exempt from staniji-duty ; those in excess of that sum, and up to about 880 and over, }iay one-half per cent. Where policies are written for five years, four premiums only are required; if written for ten years, a discount of two ainiual premiums and ten per cent, is allowed. As a rule, insurance upon the same risk ly more than one office is not permitted, though in some of the States the luw does -» } FIRE INSUKANCK IN AUSTUIA. ^ not prevent it, if the }wlico is made aware of all of the insurance; hence the means of roinsurinff hoavy excess lines arc absolutely nei^essary. To this end some of the larger offices have onc^ or more reinsuring offices, formed among its own .stockholders, and bearing its name ; and there are sevtsral independent, jiiirely reinsuring companies in the Pjnpire, while treaties or ngreements are made with foreign branches to cany a share of all surjilus lines, for which a commission, varying from 20 to27A per ci.'nt.. is paid to the origiual office. FIIJE INSUEAKCE IN lU'SSTA. 7;$. The FiKST EussiAN Insurance Company was chartered in 1827; the Rvasmn in .1868, the Human Re-vnmvatice in 18G9, and the Commercial in 1870. Besides the native com- panies, there are many English and Continental agencies in the Empire. The business heretofore done by the native com])ain'e8 has been very large, and thus far very p)rofitable to the stock- holders. The plan of each company taking all of any risk offered, regardless of anu)unt, and re-insuring excess lines with other companies, is common there, as in Germany. (Mlircs of other countries transact but little business outside uf re~insu- rauio of surplus linos of local connianies ; and judging from reports, the results have been f )und anything but satisfactory. The Imperial (rovernment makes it a point to foster and protect its home companies by legal restrictions upon foreign offices, each of which is com])elled to make a deposit of fiOrMH/O roubles ($380,000) before it cjin do any business. In 1847 insurance in foreign countries uj)on property in Kussia was forbidden by law. FTKE INSURANCE IN AUSTRIA. T4. In 1850 there W(M'o four pro])riftary fire, and five mutual tire insurance comi)anies in the Eni]>irr. The first pro- prietary office was founded in 1822, and the last, up to the date above named, was in 1838. The mutual companies are appor- tioned to the several provinces, each embracing two or luore. The first was founded in 1825. The mntuals cover buildings only. The projirietary or stock oftices cover upon merchandise mmmimm M INSURANCE IN AMKRICA. aiul pi>rsonal property generully. They also undertake mariue and transport risks. FIKK INSUKAXCK IN SrAIN. 75. Spain proniulgoted a law in 1869 for tlie free establish- inoi]L of hanks and companies, which are not to be subject to tlio inspection or control of government. All questions as to the iig!)t,s and duties of the co-partners will Ite exclusively under the Jurisdiction of the tribunals. From tlir nld text writers we learn that '' LasCapitulosde Barcelona," was the first of the niiny " Onionnances " of the ContintMital States, in which insu- rance IS treat(!(i upon. The first naval ordinance of that city bears date 1158. Capmauy, in liis version of the Consiobito, speaks of four of these ordinances from 1435 to 1484. as fmind in tho original Catalan dialect, in '' records of tlie city of i^arceJona, that of 1435 being still extant, ami referring to pre- vious ordinances. (1 .-Vzuni 251-4 : 1 Duer. Ins. 36, 45 ; 2 Val- Ci'nnu. I'oU ; Eiuerigon, xxxix). . 'wi;i; .u.ading this early pro^LTess in the marine branch, the progress of the fire branch is slovv, till! larger pro[)ortiou of the business being in the hantls of foreign companies. LNSUIUNCE IN A.MEKI(^\. ^ii. Die earliest U'ltice i>l the practice of insurance upon th'-^ cofiLinent is found in tiie Jfi-^forical Maijazine for 1858, WLich gives the Jirnf Insuraiia' i'ffici' as h;ivnig been esia" Wished in Boston, a. h. 1724. It was an atjency or brokers' oflice, conducted by .b.seph Marion, at that time. He subse- quently, 1728, starteii the " Sun Fire office," Imt it was diort- Jived Jn Shepley's " JfL-Jtory of tlie origin of the Marino rolicy." embracing also the early history of insuriiiu'c ni tho "Providen-ce Flo/iUathm," h to be found afae-diniU- of an ,,ld marine pobL.,, issned at Tioston under date of June 4, 1745, numbered 1,155, and subscribed by five merchants of that city, but covering upon a Providence; ves.sel. Thi^ number inditatea that the broker is.suiug the policy must have been in the business for some tune, not uidikely this same M.irion. EARLY PENNSYLVANLV COMPANIES. 43 A cQnain John Kopson, "at his house in the Hij^h street," Pliiliitk'lphiii, through the columns of the Pennsylvania Mercury, May 25, 1721, offered himself as a nianne insurer to obviate the necessity of "sendiii^f to London for such aasuianoe," which as he said, " was not only tedious and troublesoiue, but very pre- carious." The merchants of that city, however, continued to send to London for the bulk of their insurances, until tlie organization oi the " Insurance Company of North America '' and the " Insurfince Coiupany of the State of Pennsylvania," A. n. ITl'-i, which did the most of the luarine business of tlie country for many subsequent years. {HTf^HH.) See Fowlers History of Insurance, ^)a.sm?>i. 77. Thi! whole system of insurance, as at first practiced in America, seems to have been modeled after the English methods, with such modifications and alterations as the necessities of a new country wonld naturally require. We find but one instance of the use of the Continental form of fire policy in this country, antl thai was the Amsterdam form of 1744, by a company m tlie city of Hartford, a. h. 179o-4. («»•) The close political ties an. Al tlie ct'iittinniiil meeting of tlie contributors, April 12, 1852, Horace Blnney, Esq., the orator of tho occasion, suitl : " Wo began, a liumlrcd yoar.s ago, with nothing but a good thought, n st'Cil winch when it wum sown was no biggi-r than a gram of niustanl-.sffd, 'h'ss than (ill the swaU that b'' in tho earth ; and at this d;iy \\vw many ItKigc in soi urity undiT the. shallow vaM subsequently changed si) tiiat no part of the lieposils could be used in piiyiuent of loHses until ilie ink-rest riioiu'V had been exhauf-ted.) " III. — The ri.«k of all fire^ was ad.-fiiined witlioul any exception of public enemiet', military or usurpetl power, reijellion, civil comtnodon, or riot. (As in itn proloiype.) •' IV'.— Tiip prop'Tty insured wa.s prolectei dnriii;: tlie term (israinHt any nuinlier o( losf.es net total, witlioul reducing the amoutit iiHured on tlie preniipes, or iiiipairin;: the deposit. In ^.'a.se■ifli•'^lIueIlOll /)•();/« t/irjiisi jlnor Ujiir,irtlx lit .Mny time, tin company had aii option tn pay the whole insurance, and so eiMJ the policy ; or to relniild, the policy continiiin;: in force ; and how often poever the decfruotion by (ire and the rebnildin:; nii'.'hl tal-. was lialfa.s noich more, in cu'-e a sm^jle fire, beL'iniiinjj in one house and damagini; one or more houses, should wweep away all llie fuuds \'k ?.f 'fm IMULVOhiM^ltiA A.MICABLE CONTBinUTIONSlIIP. 45 of tlu' eoriipHriv- (Tlii> "(ih -iil.pc-iiiunily cliungiMl to the amount of the dej)(.)Kif (inly.) "VII. — TIum;oiii;itii wivh infiiiaged for llie profit nnd lofs of ilic iihiiiIkts, jnleri'^l licinfr itllosvcl in llifin on llicir depoHit-, in proportion tu ilx- wliulf uiM.iiitil rei'fivcd hy llie • , ini'uny, and a jnoportion of tlic Iu.-M'H nnd expenst'H clinrfitd to tlicni and the buluncn PPtth'd at llic expiration ofihe policy (Tliin " profit and lo.*." principle " was cxpunjTod at an early day.; " VIII.— l-'xpcntnr.'i, adtniriistrators, and aHwijjim were iiicjiidtd an inetn- bern, there beiti^ a proviHioii for notice of trannter and as-igunirni within a limited time wiiii the ajiprohation of the directors," It was iuodrporattMl a. D. 1768, by llu; Culuiiiiil li^gislatun.'. Ill nui), the " deed ol'.seftleuu'ut," under which the aSH»eiatioii was origiually orense. It \t> e.f.'.-entially a ha nk uf depo-its for a tire-los.s fund. It rioe.s imt as...ume to charjrc iht- in-ured at all aeiHirdinf; to 1'>sh. In respectto adjuslmciit of ca-^h premium hy dividend fetiirn.s, it \v;iHmutiia!, a.^ in otlier rei-pp(^t«, up to ITti.'i, aie' b'.. oming near'y ruined tlierehy, it at that date ahaiidone 1 tins eKhential of a niiiiual emiip.iny forev 'r. 'J'hi' Coutnhutidiiship has iiraeticallv uiie Btockholder — the corp'.ratiDU ilf^elf, in it> pnpeiuii\-. Tins stneknolder liolds to-day more than Sl,HOO,flOO, and not an surpluM to lie divideii.'' In tho long courst! of InisiiKjss of one hviiJveil years, the company had Imt one lu\vt.nit, which \vu.-< decidcMl in its favor. Th(.i fir.st name upon (he suhsc.ri]»Lion list after the ollieer.s, is that of I'.KNJAMiN l'ii.\iNKLiN, wiio Mat? oiie of the early direeiur.s, thouoli it id )U)t known ih.it he took any marked iiUeivst either in tho .iiLTanizatiiin or siulii>equent niiuiiiyenient ot the company* H2. 77//' J ii.su ranee Monitor, November, 1860, thus humor- ously de.scrilie.s this vionipany: — "This ijuaiiit and veneratle ini^tilutioti if a fit study for an aniii|nari;u). * ic * dohn Suulh (iioi Pocahontas's friend, hut another .iohn Smitli) was the fatlu'r of the eoiiipauy, and IJtnjamin IVankliu wan its fio'llather. Their tVUoweontriliulors uf the " Conirihiitiotiship " were as odd as tliey were puldie-spiritiij, and in-tead of approi>riaiing the ]iroceeds of the two- shilling: fine imjiofed at the uumthly iiiee;inj.'s ujion alisentees, U, the eimdii- meiitof tiie company, they laid them cut upon nule-sloms, and thus extend- ed their lit'erahty for tiie hrnelil of 'ravelers to Philadelidiia, a.« far as the money would go, wJiich na;. iweiilynine milen. They considered tree? before hou.sew so much in the way, that they rated such risks higli<'r than sf*5Nv^WW?'''W^' 40 KlliST FIUE SrUVKY. i>ian«ion-< without »\H'.\\ i.'ufv ii'l>)nii)U'nts.' 't'lu'ir eii;;iries gind a|i|ilia!ico8 were mi ^o uinall a wn\o lliitt tlu^ irec-i put them out, mo that they could not put out u (ire lit'himl thoiii. This anti umhnme lu ivctnctit nave umlirii:ri> to SDiiif of their uinhrugo-loviiiL; f-'llow-i'itizfii-*. wlio i'.(iii-i(M|Mi'nlly siartt-il a rival mutual, and thus brought amiiher Uiohui >Md into the tii'ld." (4-45.) H'i. * III 178.S, the house of one of the oontrihutorn cau.'ht lire from a shudc-lrcc- [t vviit from this eiro um>tiiiice thut the compuiiy was led to refuf-e hounew with siuide-tree* aliout them 84. Tilt; followinj^ is a co|.y of " SuKVKY No. 1 " of this eompany. It issounwhut brief as couniared willi surveys of t.iio present il;iy ; — " SnrvnjcdJnm 1, 1752. At tlie ri()ue-t nf J"/tn Sinilfi, ni'Tcliant, liis dwelling iiiiu-e on east -idi'of ATtd// atrett. hetw.'cii .Miilherry mid Sassafras, 'W feel front, 10 hei deep, hrieii 9 ineli party walls; 3 storysin lieighl ; plastered pariiiions ; open newel tiriieket .-fain- ; pent-house with hoard ceilinj^s ; garret-, (ini-ihed ; H -torys painted ; hriol< kitchen. 2 storys in lieight ; ITi ft !) flout ; ly ft. •> deep ; dresser, .shelves, wainscot closed fn'mH: .-hiii''liii'' k worn. '- p 1. « We Jiidjje the ahove lioiije and kiti.dipn to he worth t'lOOO ^ JitS. fur. Samuel Rhooils. X500 at 20s. per cent. THE MUTUAL AS.ST'RANCK COMPANY OF lillLADKLrillA, ^!i Thi' si.'i'oiii] " li'icliiii'iiiil " l)rr>iii.'lil, into tlw Hold, as ftft ii'Ltl III 111 llie i|ii()tatioii from {\n: Monitor, wu.s "tho Mutual A>isu.tnice Coriipun;/ for Ike iiitmrlng of homers from lom hy jire i>i and near PhiUuJelfiliid," oroaiiized a. d. 1784, l)y ineiii- bers of the Conlributiotiship, (ii.ssHtisHiHl in the iiiattor of rcfu.sal to iiLssire house.s with shade-trees. J n the; Pennsijlvania Gazette, Oct. 27, 1784, appears an advcrLi.sement of tliu Mutual As.sui'ance Ooniiiauy, " for In.suring Hoi.ses from Loss l>y Fiiv, kept hy John Jennings, Clerk, at \m house in Quarry Street." Mfi. To mark this event and the causi^, the Mutual seleetetl 0. '' (jreen. tree" 'ciH its s<;al or badge, and the ooinpany it.self is now frequently spoken 'tf as (lie "Green Tree." It is still in existence, and confines itself exclusively to perpetual insurances on brick or stone houses and ground-rents. INSUUANCK COMPANY OF NOUTII AMKIUCA, 47 I' , *'* Thus far it woiiM m;m tliat tlio City of Brotlu-rly Love was in it(lviui(;<' of any titlicr of ilic citiijy of America in tlir, jnuctin! oi jire in.siinuici). INSUKANCIO COMPANY OF XOjmi A.MEKICA. .S7. Tlio woll-knovvn und lon;,'trie(i coniniiny under tlif (l.'sii lu)nld be instituted to be called the Insurance V")i,j)'b marine policies were written in 171)2." In the early part of the present eenttiry this oHioe transiu-ted the largest ]Mriion nf the marine business of the country, and siilft;red heavily by " French spoliations." It has paid regular dividends, with few exceptional years up to 1888, to the amount of !?lO,.10;5.:)34,and has paid losses to the amount of ?(] 1,220,147, while the premiums received amount to SS;",r..l8,r,21. The Iwll.jwing table exhibit.'} the pj-ogrt'ss of the company for the past 1 7 years : . , , 1871. 1P88. lis original and present capitnl § oOO.OdO !f 3, IKK). 1)00 '^'^■■*''*'';-. ;!,200,000 8,527.11);? Annual uicome 2,oO(),(K)0 3,sy2,7:i7 block, par value |10 .celling price.... 3s. •18 EAltr.V MAKVl.WI' OOMl'ANV. INSUICANCK COM PAN V ()!■ Till". STATK uF I'KNNSVJ.VANIA. HH. I'liur (lays iifti-r tlio liHiimiicn Ciinp;niy of North Ainoriis.i, id tin' s.imt' year, " TiiK Insuuv.vck Uomi'anv ok tub Statk ok I'KNNsyi.vANlA," loiMitod in riiilHilt'l|>lii,i, was incor- ponitifil. Il is Hlill in uxistciico aiiKtiii,' tlui oMi-st iiHuniiino r'(ir|Miratii»ii.s of thu cuiiiiLry. It was fiii|(owori!(i In LrniLSiict iuui'iiii\ liro, and lifn biusiiuiss ; tlmugli it lias ilono nuthiii;^' in till' lil'i' lii'iuioh, iiiid llie iiiiiriiir brunch was clcis(?(l H|i in ISSS. for a history ot' In-juniin i- iii l'liil:i(lt;l|)liiii in thi; early flays, see " Fowlur'j History ol liisuruncu for two cmituries," panti!,in, EAULV MAllVLAM) COMPANY. HIK in the year 1794, " TIik lldtliwu-f. KjnUnhle S'>vidy Jul i iit/ jire" was orguiiiziHi ami fhar- torcij by thi' State, under a " deed of settlomoiit " .similai' to that of the " t'ontributioii.ship of Philadeliihia." The preuii'uni was " deposited iji the luinds of the irej -urei of said society." ln-sed." I'lie insurance was for the full term uf sever. years ; at the end of which time the ilejioait made was repaid, wiih a |»ruportion.ib!(' jiurt of the profits, "if any," or "so much of 'I'ltii ii (■ither of lilt lu .is shall remain unappn.ipriated towards the {layment of los-ses, and the iieci-ssary I'xju-niliLures (tf the Society," If the deposit w.is not demanded within a year, it was «»'/(/.• for the beuelit ol the .Socii'ty, And " whiiU and dO often fis the said hou.«e, or any iiou.se built in the room thereof, shall l»e demolished by Hro, durinj^ the term of this insuiance, to pay within three months after such demolition." A\n\ in ca.ses of partial loss only, " to be paid agreeably to the estimate thereof, or that the said buildings b(! repaired and put in as good Condition as they wure beloie such damage accrued," .md this lis often as such damage m.iy occur during the term of insurance. (H-Hii.) HlKJuld the property be insured elsewhere, the policy becinie void. .'Viid '• if the eutirr- funds of the Society should at any K.VIU.Y MAHS\(;iniSKTTH COMPANY. # timo h' iiis.ilHoi.Mil liilly t,n i>ay m dm-]uxrif,^ all lossos iiumrre-l, thmiiuul in such cNisoajiirtt uvunii^ti .shall !..• ma.!.', .uhI Iho paviiuMit to bo .le.imudi'd in virl-ic of this policy, tii c«we of I0J3 ,.r (lai.ia^'o by fire to the i.rmui.ses injured, shall bo a divi- deiid of the said "funds in proportion to the sum irMur.d, a^roo- nblv to tho tnuHtitciiiand luciinia',' ofiho f-aid di'edof '^uttliMutMit which cunlaincd all of Iho provi.iiuns of the policy. Thoro was no liability of insured beyond the deposit. It is still in oxintoncn, with assets le.S3 than |i2,000,000 aud yearly incoiuo of ;ib(.ut $120,00(1. EARLY VllUilNMA (.OMl'ANY. »0. "Tiir MuriJ.vr. Assijh\nci' Sdoietv Against Fihr oy BuiM)rN(iH OK THK Statk OF ViuuiNiA " wa.s incorporated 011 tho 22n.l day of Dccoinbcr, A.i'. 170-t, by the General Ash-mu- bly, and Hi it nam t imiiorts, it was exclusively a tire company, Coiilinin>,' its risks withui iL> own State. The plan aloptod by l\w Society was upi)n the mutual prin- cij.le, thougli dilTcrini,' in m my particulars from tho ordinary mutual or-a,ii/ation. Some essi-ntial chan-es have be.-n made in the original ])lan lis prcseiiL form of policy is a simplo perpetual insurance contract. Tiie ori-^inal form of polic> of this Society was u ouriosity ill its May, .'.pie^uf which will I'c iVuiud in the subse(iueuL jiafjos. (4;i».) The Society is ntill ll.uirishin^'. All Io-jsoh and lial'ilities have been piomplly met, and it is still in possession of a, handsome surplus, resting securt'ly upon its original foundilioii of reaU estatu se..'urity, the iir.V. insurance company of Virginia aud the South. EARLY MASSACHUSETTS COMPANIES. «1. "Tnii MASSi.M ni;sKri^ Fiiti; vni^ Maiunk Ixsuiiaxce Comi'any" was incorporated 111 the yar 17'.»5, and located in the city of Boston. "Till-; MASsAonu-sirrrs Mcrt .\l Fii!k r\suuANCR Comi'any " was chartered in the year 1798, also located in the city uf Bos- ton, ami 1.-1 still in existence as a. tlounsliiug institution. Eur u history of this company, See 9th Mass. In3. Report, I81U. mmmm 50 EARLY NEW YOIiK COMPANIES, ^^AKLV NEW YOKK COMPANIES. !>2. " The Mutual Insurance Coyapany for the insurance of ftouses /rum /w-' by _fire^' was oryaiiizt'il in the year ]7y7, iiiidoi' the (Jeed of setileitwnt thcji in customary use finiong English conipanit'S, and, until a. I'. IT'.Mi, was tlie only jira insurance company in thu city. In a, i>. IT'.'S, it was incorpo- rated by the State Legislature as the Mntual ('ompamj. In a. 1). J 809, it was changed to a stock company, with a capital of 8500,000, and is still in existence as the " KnlckerhocliV Fire Insurance dnniHinij," which iianu- it assumed a. ix 18iG U]Km reorganizatiuti after tla; fire of 1S45. In the year 1790, we hear of '• The Axxociated Underwriters" for a single year ; ii kind of " Lloyds," doubtless. iKi. The Key- Yorl Insuvuvci' C'ympuinj of Ihe L'ltji of Netc York 'vas organizeii in 17l'6 as a uiutual, but changed to stuck, and incorporated 171IH with tire, life, murine and ransom of ])(!r- sons iu captivity privileges. t'aiiital!?50(),0lMl, Tiie Sew York seems to have done marine business ahnost e.\clusi\ ely, as it is called the " Xetc York Ma line" in the early recon'^, and snr- viveil the u'l'eat lire, of IS!!;". The United Fire InKurance Coni/mnyof (he eUy (f Xetv York was chaitered the san.e }ear jMarcli llMh. with caj'ital of ."5.'i'0,'i0; cr.pital 85(10,001), It succumbed to the tire of IS.'io; re-organ- ized in l83lj; -wa.s severely ciijiplcil by tin; lire uf 1845; EAULY NEW YORK COMPANIES. 51 ^4 re-oiyanized in 184u, with capital of SiJOO.OOO, uiul is atill in pros] le TOILS condition. »5. In the year 180G, " The Fluenix Fire Insurance Co77V>'*/«i/" of London, England, established a branch office iu New York, and in 1807, " Thp.Fi'uii Fire Inmrance Com. jyany:' also of London, established an a,0Ud, the lirst iniUicudire in tiie country. In 18211 there were seventeen lire companies in tiie city of New York, with an aggregate capital of nine millions of dollars. In 18:i5, there were twenfii-jice fire companies in the city of N(!W Y'ork, of which eiijlueen were swept out of existence by the great Hre of that year, and the remaining seven were more or less severely crippled. . . »7. From x. D. 18-4;", the year of the second great fire in the city of New York, up to 1849, there were but seventeen tire insurance companies in the city; having an aggregate cai>ital of only some Jtvc millions of dollars, many of the resuscitat-ed comjianies starting with reduced ca])itals. 9H. 1)V the report of the Insurance C^oraraissioner of New l^ork, ending with December, 1870, there were ninety-live State stock lire companies, with an aggregate capital (^f !<28,0(M),00() , sixty-tsvo other State oflices, with aggrfgate cajiital of $20,500,. 000. r>y the Chicago tire, October 8, [\ 10, 1871, ticent^i com- panies of the City and State of New York were annihilated, and many r)f the remaining agency companies were severely cripjiled. The total losses of New Y^irk comjianies at Chicago were 120,724,457. The report for the year 1888 shows nuui- 52 EAULY CONNECTICUT COMPANIES. ber of stock fire offices 55, assets Sr.l. 730,009, ca])ital 820,084,. 020, iH't surplus i?l5,35t),8_'0, risks in lor. m.' .>!1,S08,83G,440. MutaaL Cuiupdnies 7, total resources !?3,r>iM,003, risks in force 1129,059,351. 0/ other State stock companies there \vere ojierating in the State 75, with assets §103,207,^75, capital 839,458,000, net surplus 826,274,185. risks in force 84.354, 904. 910. Forcvin offices 22, a.ssets 843,433.392, deposit eajiital ^4,400,000, surplus 814,834,579, risks in force 83,705,757,851. EARLY (Y)XXECTI{;l'T FIRK COMPAMKS. IM). Somewhere near the clo.se of A. l>. 1793, there was a fire insurance organization \n existence in Hartinr.j. all record of which has been lost, hovond two [M>li(.ii.'s, li.iti'd l'\:b. 8, 1794; one numbered 2, for £800, the other for XilOO, to .luhu Lawrence; both i.ssued by iSaiiford I'v: Wadsworth, tor the " Ilaitfonl Fire In)*iiruuce Comixuii/ ;" ihe toMUf! is Ud'.v in the [lossession of the Hartford insurance ('niuiiany, and llie second IS in the po.sscssion of tiie State Liltrariaii. Thesi- policies were adapted after the Amsterdam fin> pijjicy of 1744 l^O:i); the first reads as follows: — " WhereiiH, VVillmin Imlcv. lvi|., nf HiirKunl.or wlunn ilsi it iiiai/ runrurn wholly or [MiTt\y,f'rieuJ or J'ne, iloth n\nke a-suiiuice mi Ihn hoiiie a;;ain.'at fire ami all lianger.-^ ot lire ; inort'Livor iii.';iiiist all iliiiiiu^r vvhich on account of fire may liapjioii, either liy tcinin'stx, firi', triii'L uwn _fire, ne^rligeiice and fault of own I'ervaiit, or of iieii:lil)i.irs, wheilier tluise iicare."! or farilie.-it ntf, all cxicriial acci'leiiii< ami iiii^loituin'H, i/iniit/ht nf mul nut t/iouyht <;/, and in wliat manner hocvcr tlie tlani.igc hy fire may liafi|K'h, lur the space of one year, lonjmeiH'intr on the Hth day of Fclinmry- ITl't, and ending' on Ihe t'th day (il Fcliniary, 17'.'.'), at 12 o'clock at ntx)n, nthiiiiiji xjitrialli/ and f' uf three monlli« after the tire .-hall lia\i' haiipi'iied, due notice havinjf been f;i\en to ii,-, and no deJurtion to '"■ iwi~ paid for llie "aving and pre.«i'rvinj;, and conceruiiig wlncli the assured shall be heUeved on his thith witlniit vur >"'fW EARLY CONNECTICUT FIUE COMPANIES. 53 alUqia,, aniithnuiafjainstit. And so we, the asaiir&rfl, are cnntenM, and bind ouraolvus iind'>.">odH pre:?ent. and to come, rc.nounr uuj all cariU and excejttiona contmnj to thc^e prestiU, for the true performance of the premi- ses, the con,»i Dutch, and the foreign business of the New P"]nLfland Stales about that time was largely with Hollaud and Germany. 101. Ill I7i'4 tlie Norwich Mutual Insurance Company was founded, and in the year 180;), " The Norivlch FlreliiHiiv- ame Conipani/" wa-^ inc a-porated, capital -f 100, 000, increased in 1849 to .SloO.OOO; wliicli, after a prosperous existenr.; of nearly seventv years, succuuibed to the Chicago fire nf 1871. This was the first company to limit its policies to To pel cent, of tlir- value at risk. 102. fu t lie year 1810, "TUK lIvilTH-oUD FtUR Tnsuuwck C0\lPANV,"and 111 1 8 1 ',• ' Tllh /ErKA FlKK LNijUKANOE (.om- p.vN'v," were chartered, both hicaied in Hartford, an I well kuuwn throughout the riiitcd States anj oi 1800 has been reorganized Icr the ]Mir|iose of jjroseouting French sjiojiation claims, from which it was a lieavy sull'erer. In 1047, as we learn frmn Pitkin's History, 40, the jiojtular government of Rhode Island resolved that the " Laws of Oleron " should he in force for th(> beiietit of scanicu. FIRE INSURAXC E CONTRACT. IoiiiJ <>/ iniU'nniify or giiaianly against loss not wilful, ti'om a sj)ecitied jieril, to a given aniounl, upon cer- tain subjerls, and for a s}ie( died perit.d of limt;. Or, in other words, that the underwriters will j.ny, witliiu the amount of the poli(!y, for as much of the jirojterty at risk as may he lost or damaged ii\ llie ]ieril insured against; the consideration therefor being the jireniium jmid by the insured. ■ I0!>.) 1 Pliili|is Ills. l,'-5, §4; 2 Viiliii's Coriitn. 2t) ; Angcll Ins. 1, § 1 ; Emcrigon, rh. 1, Detiiiitionii 1 4 Fas. Law Jour 5(iH, tT. S. 0. (\ Lh , May, 18V."i; (Jlotuiiile Wool Co. (M Protection Ins. Co., 21 Coin. 19 (.3 Benoeit's F. I. Oases, 214); Weskftl lii3. 2S9 ; Miirsli. Ins. ch. I , .\Iiu Ins 2, n. ; In.s. Co. N. .\mer. cv. Coiu- nionwi'tiltli, 8 las. Law ./our. iiO : Civil C.nlc, L. (V § 24')K ; 14 Grantti Cby, 4i;3. A PKPSd.NAL ('ONTIv'AOT. lOT. When insurances against loss liy fire upon in.ocahlfs^ as goods, wares, and merchandise in variou.s locations, were introduced by the Sun Fire Offi,ce in 17 lU. (•'5!>.j iAm SUBSCRIPTION. 65 -ft ' 4 J,, i; " The society, being sensible that such an extensive uu- . Diil/,ell, Ho. Lords, 1729,3 Brown's Pur. Cas33, 407 ; 4 Id AM ; Lucena V. Crawfoni, 2 Bos. A Pull. N'. li. :!i)(l ; 2 Black. Oomm. 458; Carpenter c. las. Oo., 10 Pfitors, 4'J') ; .\bniliiim v. (iia. Co., U. S. C. V,., Iowa, Dec. 10th, 1884. ION. It has become cusiouiary to speak of property a-* being insured, when the interest of the insured in the property only was inten led. Lord Chancellor Hanlwicke, speaiung upon this subject, A. D. 174;}, observes :— "To wliom or for wluit lo.s^< arc they, tlic) Hatid-in-Han.f Fire ofi: 'e. to iniiko sati-t'iiotion? Why, to tlic person insure. 1, and for tlie fo.ss \w may liave tiustairuvl ; for it cannot ])ro|ierly l)e calleil iii-Jurini^ tlie tiling, for there ia no pos.sibiiity of Join;^ it, and tlierelore niii-.t mean insuring tlie person from ilaniaLTO." .Saddler's Co. r, Badcoek, 2 \tkins R. .'">,"i4 , Lynch v. Dalzoll, 3 Brown's Par. Cases 4.")7 ; 2 Black. Coram. 45s , Shaw's Kills Ins. 1&.3 ; Cummiuj^s v lus. Co., S. (,'. New Ham[>sliire, June, 1,S75, .•uid aiiihoriti<^3 iliorc ciied. lOO. The Supreme Court of T'ennsylvania held that it was not the property, Imt the henejirial interest in the property, which is iusui'(;d; and ihal only the value of such interest can be recovered by sueli owner upon the loss, the contract being one strictly of indemntty. (050. <»5rt, lOll.) 1 Ins. Law Jour, m ; '2 id. 700 ; liichard.son i\ Home his. Co., 21 U. C. C. P. 201. SUHSCKU'TION. 110. It is an unilateral contract in the nature of a "deed poll," which, though executed by only one of the parties to it, 56 PAROL Olt WniTTKN. yet by its unconditionnl accoptance and tlie paymcvf of ihe 'pvciniuni by the otlior party, beooines, vitli -ill its terms and coudjtions, ocpially bimling upon both from and after such aceeptanco, and uill euutiol the adjustrueiit in case of loss. (1««.) Tiiit t( ,(/. c. \. V. Life Ins. Co., 2 Iiir. Lnw Jour. MO, § iHti; Mil)- Ins .'■, citing inf) Mfl8d. 149; Kouiledge r. liuricll, 1 II. Illurk. •.ifi4 U Bt'unoHs VI. Cases ':>:■<) ; Cons. 8t. L. C, ch. tiS, 5 'iC>. 111. Ill France the < ontract is lield to be synailagmatic, or one uf reciprocal ohlujatloDS ; tlie insurer guarantcea indem- nity to the insured, and the in.suud in turn hinds hiiusell to pay to the insurer the jiremium agreed upon ; hence, in order (o confoim to tlii.s prineijile and the nature of the contract, the Code ile Coramerce reijuires all policies t(,i be signed by both parties ; and until so signed, they are not operative. Etnerigou iMeroclllirs cd.) 5 ':t .'ily preserving tlieir prwjf- F.ut-tlie common law rule ccaces in its operatic'n in all « (l^es where writing is expressly reqiiireii by law." (p. 2(5.) I I.H. 111 the matter of i)aTol insurance, Mr. riiiLl.irs (vol. T, p. S, i!; 9) Sixys ; — " ft does not appear wliy, under tlie coniiiion law, a valid orr// insurance nay not he made again.'t lose by tire, or the ordiiuiry perils of the sea, if it were upon a real interest, for a good consideration, and made in terms suffi- ciently explicit.'' (KJiKJ ct .teq ) 1 Diit'r Ins. GO; Philips Ins. U.fiO; Smith v. Colnmbia Ins. Co., 17 Pa. St. 253 ; M.'iy In-'. 13, § 14 ; Penley i'. Deacou Ass. Co., 7 Grant 130. lUK Justice Gibson (Smith v. Oolumba Ins. Co., 17, J'a. Sta. 25S) says :— "The conclusion is ineviluhle that an actual concnrrence of assent at any particular moment is the ruling cinuimstance, the time of communicating it being comparatively unimportant. " 1!20. The weight of authority would seiun to coincide with the above citations, as New York, Alabama, and some other States have held parol contracts of insurance binding, and their 58 UNDER SEAL. courts universally eul'orci! thcui. See IG Oliio U. I-IS, per contra. 1^1 • All niulorwritor is uiitlnr lui obligation to insure fov all or any ohjoctional parties (10 Mo. r)83). lior is tlu' mere execu- tion of the policy by tlie iniderwritor conchi.sive, S(» long as it remains in hi.o custody; there inu.st be a delivery — actual or con.stnutive — and payment of the iireininin, or waiver of siicli paynieiit. before the contract, will be binding, f 7!»tJ, IHI.) ISti. The existence and delivery of a poli<'y is not necessary. however, to the validity of the perfecti'd contract. Any written as.sent of one ymvly to the written terms pro[iosed by the other will fnnii a valiil contract; but such contract must be clearly established. Prttttrson vs. Ben Franklin Ins. Co., .S. C. Pa. Is7,"i (,'i Ins Law Jonr. 12i). 12Ji. A receipt for the j^reminm specifying the suliject and sum insured, and the duration of t\n> risk, didiverod to the insured, \vi|] imul t]„. in-juivr, subject to the stipulations of the form of pulicy in onlniaiy u- Iiu. Law J.uu 123. 12-4* Thegenend priiiciples a,s t^o the contract are : " So long as the ('(Uitract consists ouly of the mutual pi'omisi'S of the parties, the signatures of both are re(iuisite, the promise ofeachltcing the consideration of th;U for the other ; but when the premium has iuen acknowledged to have been paid, the signing of a policv, or an agreement for one, by the, underwriter, constitutes a valid contract." (I0«.) 1 Plji)ij>3 In.s. n. ^ U, and autlionlies cil. it ( l(5(j.) UNDKK SEAL. Iti'l. .Ml of the early tire policies were ivijuireii by the common law to be ntukr sfal ; but the old iloctrine, that a corporation must contract uiuhr seal, no longer pre\ails. A corporation, as well as an individual, may, unless restrained by the mpiiremcnts of its charter, authorize its agents tu bind it without a .S(.((./. United St.ui'j v. l;audridge, 1.' Wlit'at. 04 , Osborne v. U.S. Mauk, 9 id. 738. 4 i '■If m m »j^/ , ji '. SUBJECTS OF INSURANCE. 69 I3«. A .sf«/ anixcd loan instrmnont makes it a specialty anil is liol.l to cxpix'ssaconsiileratioii ; hence wlien the eoiis^idc'ra- tioii is acknowledged in the instrument, as is enstoniary. tli(.u<,'h not universal in the i)olicy, a aenl is not necessary to the validity of the contract; on the other hand, in contracts vndfr mil, the consid.Mation need not be otherwise acknowledged as it may be proved ul'mvU. No witness is necessary. Cook -•. lira.llov. ' Conn. r,7 ; Podfre r. Bufdell, 13 Conn. !70; P.rrine f. Cliefsonmn, C. H.ilst. 17 1 ; Moi.ton v. Noble, 1 U\ Ann 192 ; May Ins. 10, § Ui i Monn-cul ins. Co. v. McGillivray, 13 Moore P. 0. C. 87. 127. Cliief Justice Taukkk says : Policies, though not under mil, have nevertheless ever been d(;emed instruments of n solemn ntiture, and subject to most of the rules of evidence ■which govern in the case of specialties." 1 Philips Tns. 14, § 66, and authorities citeii, V>S. When, m a policy, against tire under smi, the insurers acrreed to pav tlic loss " according to the tenor of their printed pro]iosids." and it was objected that a distinct paper c.add not be inci.i'jioratfHl into a sealed instrument, the court held " that it might lie ,so was too clear to admit of a doubt." (KM.) 1 Philiii.i Ins. 47. § 70, nnd nnlliorities there cited ; 7.7., p. 18, note 3. 12tt. Ill I'.nu'Iaiid, when a policy is not under seal an action may be had against the subscribing, or any other diicctois or members, lint if under sc(d, those otdy avIu^ are ]iart.ies to it ran hv sued. Under the old deeds of settlement, the comjianies were not sued by name ; the suit was brought vcrsua the sub- scribing directors on the policy. Mi\} Iiid 1.", §§ IC, 17; :< Eng. lirtw nnd Kii- R. 420; Snftord r. Wyt'koff, 4 Hill ! It). IJJtK It the charter of an insurance company provides that its policies shall be under seal, they will be pn!cluded from otTer- inor in evidence as a matter of defence an unsealed instrument. ant LindniiLT r. Delaware In:?. Co., 13 Alk. 4ijl ; Tucker i'. Prov. Ins. Co., 7 (ir 122. SU15JKCT8 OF INSURANCE. i;{|. Th<' insurance contract, formerly defined as a maritime or, at most, a mercantile one, is now extended to embrace not only marine and lire risks, but deaths and many other casualties 60 IHK UNEQIAI. CONTKACT. as well, to real and iicLsoiiul cliattuls, iiirliuliii;^' i;viTv known sultjoot ill wliicli uu iudurai)ly interest can bt; IcguU)' rccoguued. IIV2. Ah hu9 bten tritely reniarktnl ; " Tlit'v limy insure tluir crops ii;;iiiiinl tlie "UM-n-^fation of liailslornio j their j>lutc->.'li4.-K ugaiiiHl the onrcle^s'iieHs >)l siTvimtH or iiiuiiut;;t' of evil- ili.-l.i'feil iieiMiiiH ; thi'ir COW* aiiil JKirfcs uj^aiiist thf riiva^ics >i( iliseuBe ; tlieir raoehorws a^:niii.-' a^jainil (he ilcfalcution cif iIIhIuiiu'si clirk^.' !»». .lustioo LawrcMC! (5 liIt' lo [irotcct men a^'aiiist niieortain oveiits wliirii may in any misc l)e of clisadvunluye to tlieni." l-<'i'ii ('hancellor llardwioke. A. !'. 1743, says: " Iiisuranees Were niatle ior ihr benefit of tnide, and not that |iert in the pro]ieity, slionld jirolit thereby." TJIE UNF.QUAL CON TU ACT. an. It w:is a very ])ertineiu view of the lire iiisiiranco Conrract, as ^iven by llu' lati' diidije ^leCuiin, nf Uu New York Snprenie Court, iu the ease of Sturm c. tireal Western Ins. Co, (Jan. 17, 1871), thai: — •' In iiojrotiatiiij.' a ixmtraia of iu-iirain'e, tlic itaitic.x arc noi u|ii.»ii a level. D'lr do ihcy deal at arm's ieiifith. Tlie in-^iirer is presumed to lie ij^'norunt, and the iii-iiirfd informed faith and candor in coniiiiunicatiiij: the factf alfeclin;.' tlie risk. So a is the contract oi in^ui^ anee thai is characterii'ed, in legal laiijiuage, as a conlracl uhfiriiiurfidei- And tne lesjHinsihiiily of the insnrid i-^ prcjiortioiiiUi' to his idilii;atioii ; so that. Umii;; in duty honnd U'< disclose vvliutever may henia'ernil liithe Imzanl, or may enter as an element in the estimate of Uie {irennum." i:t.>. '• Ve Patriarch," of the Inmrance Monitor, New York, says trtily : — '' In no ctMitract is one jiart\ nmre complet'lv ai the mercy of another ttian t'le underwriter in in-unincc. He is in'cefnl,.-t, HI) 1 wriliii^^ tor puyment of monoy upon the lop's ot'iiiiy ^llil)OI• fzooils, or upon ftii}' Ions by tire, or for aiu otlitT purpose for wliii'li :uiy vvriiiiij;, //'r/';s o/'iissnranci'.' ' By the aniendi'd Stamp Act, of 187o, the term jiolicy , "includes eveiy writing whercjby any contract of insurance is made, or is cNidmcixi, not including sea insurance," And such the instrument containing the specific terms of the in^ur- rance contract, reduced to writing, has been called to iheiircsenb ?f time. Civil Code L. C, i; 24.SU. Knu'rigoti ([) L-'o Meredith's eilition) s.'iys .- — " Tlie policii iv ilic I'xti'vmil I'oriii of ilie contract, iitnl oWdi'nof s its cxi^t' ence. '^he inivrual (ia. noo.) I'erkins .". Wtnliiiigton ins. Co., 4 Conn, N. Y. 4fi5 ; 4 Wend. .V. V. (345 ; 8 Ins. Law ,loiir lU.'l Vox the (uigin of the name, sec 1 .Mag. Jv^siiyH 1 ; Weskett lu3. 40ii ; 1 Arnoiikl Ins. IT; Angelllua.H, 50; Hopkiud Manual Marine Ins. Iu9, i:{f>. The foi'ia of " jiolicy of insurance " first used in Kngland was ftjr marine pur[)oscs, and is supposed to have been introduced i 62 TiiK ror.iGY. into (liiit fomitrv by tlic Ijiiiilmnls sdiiio live to six ('ciifnrios niiii'i'. ( IJIa.) 1 1 Mci'iiiw tt» luiNo Itcfii a very ciiKlf iiiid mnioiftict iiisiviiiiit'iit, lor il i.s HjioktTi nl vt-ry (liHitarit^'iiit^Iy l)y tlir couitrf. (I*'ti. , Siiiiu' i)f llio iTitiriHiu.« luv lu'ic given : " llN iiiiti(|uilv cHiiiiot iiriMorvc it from jii*! C('ii»iire, it Ix'inj; vcrv irrrj^nlRr ntid ciiiilii-i'il, uiiii tV('c|iieiitlv Hinlii^^iKuix t'roiii iiiitkiii)^ n^v ii( (lit' muihc woriB ill ilill'i'i-t'iit i«eii."OM." Ciiiif .liiMH't' I'ltrkiv, I'liik. Im^. II " Il liUM ulwnys been consiilt'ioi in cciii't" of iuw hm aii iiln'uril iinil iiicolie- renl ni'tninieni " .liiHtice fin/lir, I'aik. Ins. 5t>. " 'I'lii' ui-'lriinu'nt !■< conceived in un iimccnrulf furin of vvur.l-." " l,cn;.'tli of linir aii.l II varioly ol' ileinHJimrt Inivo riiluidl it tun ucriiunly " horil Mun-ii.l.l, 1 ItniT. 'Ul. (I7(». llii|iliin!«, mi/irn, iniffim ; Wtsliott Ind. •li>l j .Marsli Ins. -Ml ; I Arnonl'l Ins. 2(1; Duiinl. 7(1 ; I'lirk. \i\i. ll.'f. I lO. Sti'iiii|T(! a.s it miiy .si'i'in, after su iii;in\ docji.siotiH aj^ainst i(, til" iiiai'iiKj iHjlicy of Unlay in Kiiglaiul, varii'si Imt lilt It; fnua IIki'l la'niigiit (jver by thu Loiiil)ai(l.s. A writei in llu- Axsii ntnce Maj'iiiiir, A. i>. JSJO, says of it : — •' I'll"' ^lolicv, iv.-i tlic e.xponent of ilii' ^'clicnic, oni'i.' IViiini'i, \mi- iMii-iii- erc'l In lit' >i:liicit-'ni, un'i lo \ie (.'Ji|iiilil(' v{ no ini|irovfiin'nl — iii liii-!, \vt' luivy Mi|i|n'-(' ^u, fruMi llif miiiilicr ot years ilii' iiL-lniiin'tii luin i'\iMcil m jtH I)rfMiit .'tru(i a n^'w formnlit "' • • • '• l'",j|> ii inn.-t Lc ii|i|ia. ri'iit tiuiil thai lilt' pri'si-nt in-iniiin III i- tnil ot 'iliHowriiy, iinl ilmi iH liin- gnagc i.-i in part oli.^nk'it' ; ami, nniurlnnali'ly, it lia-* ln't'ii rcnili ii'ii 'Intkor Uy ilu- lr.'(iiii'iit illtuiiinatioii.'' tlial liavi' luf-n lavii-jit-.j ii|i"ii it; -o imuli .-o that, ill till' liaiiils ot ihi uninitiaU'il, it iH a.« vaiiue a.-* Miranilu'.M rccol icotioiif* — • Aii'l rather like a iheain tlian an a.^surnitre.' . l-H. ' Bin tlio oli.-curity anil uncertainly coiniilaiiieii ufii'i nnl i rui iiMy ari.-i' iiltiigotlier from any inijerft'ition in llie |Kiln'y wiiuli can !*• rcmeiiieil. A coiitrart enibrii('in-liips, licriui-f tlicrc, iitln-exl ,,r no interi'nt Ih uIiniMl coiHtiintly in.-vrti'l ; mm\ if iiut iu.^erted, ^uu ciintiot recover, unless you pi'ivi' a |>iMiitMtv." 2 A(k. r)u4. III. Wink' ihi> u'lMKT.il |iriiu!i ])lf.s of law apjdiciiMc In lire pvlicies on land coincide wiili those ajuilicalilu to iniiiint' iti^nr- atK'i:, till! Hju'citlo jmjvisionH oi" tlu' contract in the two lnaiiches dilliM, of tifoessity, Acvy iiiiitciially from tlio. cntirtdy ditti rent imtiirt! of the risks assaniinl, and the consciincnt dissimilarity in the several modes of adjustment of losses. In maiiiie insurance the projierty at I'isk at sea is heyond control d' the in-nred whih; in lire iiisiiianci the preperty is in his immediate posses- sion and cusloily. M'1. [n marine policies, nsnaily all of the xvrUfen coniract ap|M!Hrs in the instrnmeiit subscribed by the insurers ; while, in Jilt' policies, reference is usually made in addition (ITI i lo rules and regulations, conditions and HHjuirements, ]»ro})osals either indiifsed upon oi annexed tn the inscribed instrument, ami relrrred to in and niade a part of it, i)y which the stijiulatiuns become more fully a jiortionof the express contract. In mutual companies, such stiixdiilions are usually the jirovisions of the .se\eval charters, or rules and regulations ia accordance there- with. |40* Policies in use in different countries — and in the several states of tiie same country, a.siu the United States (Ui-l) — may and do dill'er widely in form ; yet the law of insurance may be substantially die sanai in tiie several countries or states. Such dilli-rences, under the same general laws, are usuuUv mmmmmmmmmmmmmmmmm 6t TlIK LAW OF THK INSURANCE CONTRACT. .significant of a dill'erent intiint, and may vary nialorially the inti'i'jii'etation of the agreement by restricting in some resi)"ct3 tlie liability of the insurers, and iu (itliej's diiuinishiiig propor- tionally the rights of the insured, and thus attect, not merely the /una, but the Hubjecf, of the contract, and, consequently, the legal constriictioji of the [iidicy. nil XT ED FOIJMS. 1 17. The use of priiited forniH, Ijoth for marine and fire policies, in the blanks of which are written the Hpecial cove- nants on which the parties may agree — now become uni\crsul — dates fi'om a very early [xniod in the history of insunmce. These fornus contain the necessary and customary clauses, con- ditions, stipulations, and exceptions i''' the contracts, according to the laws, usages, and customs of t/ie ])laces where insurances may be nuule, with blank siiaces for inserting the facts lequisite to C(aiipletc the validity ol cadi jiarticular case. The liiHiks of the old writers on insurance are thickly >owu with these /o;';/i,s shaped in accordance witji (he manner and geiiiii; iif each country and epoch. That of Ain-ona, in Italy, found in Latin and Italian, is said to lie very old. (»Ji.) Witii \.iri.)iis modiHcations and changes, to meet the tiint»s, these t'lrras have come down to tlif jiresent dav. To lludr e-\i.stence many of the legal decision^:, both anciiiit anf t;oniinon law. It is the written jiMitions which usually give rise to (juestions of construction. 1 I'ars. Ins. 65, n 1 . May Ins. 3. THE LAW OF THE INSUllANCE CONTllACT. m H!». Iniisninch ms the jit'ciiliar nature of a contract of fire iii.suranec, in view of the luidetennined C()ntin,^'(;ncies for which it ]ir(i\ iili>.s, nfices-^itatos the a'klitiori of luinierou.-i restrictive conditions for tlie adecpiate protection of tin' underwriter, not found in the ordiiiiiry biisiiiess a, recognized science, sulyect to ct^rtain uniform rules, and nMiuinng fnr it.s proper conducUnoad analytical and comprehensive view.s of men ajid things, but (lie ], gal inquirer will also he enablotl to trace the origin and .ipi)licabilily uf nunier ,.n,>, early decisions and S ■■WRi in mm GG ORDER OF ARRAXnEMKNT. piocodoiUs of tlie c;?. In order to complete tho proposed legal diHsection of tin- jioJicy. it will Ke necessary to consider nnder appropiriate heads, in detail, the various conditions, ex])ress and implied, upon which tlie force and oifect of the contract depend. To this end the policy \\ill be treated in the following if f Ol^DEIi OF AJtEANGElIKNT. I. Ro(iiii8itos of tlip Piiliiry. II (\iiiilitii.iis of the I'ulicy, XHlurt' of. IIJ. I'riiiciiili's ul ('(•ii.'^truitii.'ii ol'ilie rorKiilion-, iiii'Iiuling Usage. 1\'- 'I lir > anot < KIM'S I'f riisiii';inoo, vi/. : — J. Ji>int-Stock or I'ropriotary. •J. .Musiml. •i. t'urtieij).'itioii. >l. Peviiftnal 5. Jti'tnlliiUMit. (i. Slcam-btiiler, 7. i'!ate-glaf.«. 8. I'olii^io.'t oil I'rolit.-^. !•. ]{(iit Hint l.cdHe Policies. In. OptMi atui Viihu'il I'olioii'.-^. 11. (liiiiMiii; or Wa!.'!'!' i'olicifs. 12. 'rciii,r..|ieies, l.'{. .Slmrt Iiiriu'iiiu'c. i IJ. Oriiticafe (.1 Iti.-uiriiioe V. The varioii-^ fok.ms oI pwlicie?-, viz.: — I. .^]'ei;itic, viz.: — I Vuiue.!. J. U|ien Fire or Runnini;. ;i Transport, U. (.'iiiii|ioiin.i or Collective, VIZ. ; 1 (ieiicnii. 2. Ivxei'.^f. ;>. Float iiig. VI. llu I'ro-H.vi.i elati^e, vi/. ■ — I'ro-raia proper. ,' ;' Tliree-I'oio lli> vnhn Clan .-e. 2 .\\era;;e or Co-iiiiJiirttnce. ■J Th:'i'e-t'ouriK- I,ii-.s Clause I Erijflish. '- Colonial. \!I .N'\rio,\.\i,rrit^>, wi.-. — 'i. Cnntiia tital. -I. .\iii< lieHii- VlII, Lkchi, CoNfTntcTloN of tlie coDiiitionf of in-itnaiice, eacli Pti|iiilntiou of the policy I'eiiig Heparately coasiiiereil and treated of, wuh court ailjiidicution tliereoti. I.\. Ai)Ji;iTMi;\T OK i os«. aiiil the law oflhe coiitiaot rcluilnu tlieretu. X. Ai'i'OKTio.NMt.VT .\Mi Co.M luui 1 iu.v, witli examples. \f - 1 I UE(jU]SITKfl OK TIIK I'OLICV, Qf REQUISITES OF THE POLICY. 154. Dcfiiiitpnesy is essential to the validity of the insurance contrai't. " To complete a contracc it is necessary tliat the pro- mises to he covered, ('H50), the risk (l*5«), tlie time for which the insurance is to run (IOJ5), and tlie anionnt of prtiuiinn to be charged JWJJ), shall all bedehin'tely fixed." (Strohn v. Jlarfc- ford Ins. Co., S. C, Wisconsin, 4 Iiis. Law Jonr. (icSO.) Christie et nt r. North Hriiiah A M Ins. (Ju., 3 Cases in Court ot'Heasions ;i50 ; 1 BcniifH F. I Cuset I4."»; Etiu'rifroii Itis., Mcredith'.s Kd. 239; Miiy In-. Jt!, j 3d. IV>«>. Wiiile all fire policies contain tlie sainr general essentials as to tlie contract, dillerin^' oid\- in the nnnd)ei' and nature of ihcir ccniditions uv stiimlatirais, the lollowincr are alvsohite vcquisiten of a policy under the arc Inimrance cvntnid, with the principles attending the same. (tt»">Ii.) 2 Valin Coiiitn .'^l ; I Mn)rt'n.* Kssiiys .S, 5,"); 2 ( /. 1G9, Oni. Fmnre; 187 Ord. Prussia; 'J;m 'i,(1. Stdcichdlni : 1 Ariu)iild Ins. 'I'A. citing 28 Geo, 111, ch. § (i ■ (' /. 40. 4 Ins Law Jour, siqira ; .May 'JO; I liciin (Jaaes 14,'), sii/n-./ , (^ivil Code I.. C , § ■2i>&J. !»■><». l.v/. Same and n'.sitlt'.ncc of the pariy 'in>^ur'in2.) 1 I'liili])? IiH. ;i, § 11, nn\ aiiihontio,*»,) 157. 2'/. Nil lYuui nd. rcmlence of the imrty insured. : Tho policy mnst show in whose fivor, or for whoso benefit and n.so it is intend ■(! tn be made, either (Expressly naming the jiarties, or by direct implication, as in policies "lor whom it mm con- cern" (I2:<.'(i, as no otie leal the ])arly (bus spfcilically naiiU'd, or intended liy the "general wonts," or their several legal repre- sentatives, has any right under tho policy. 28 CJeo. :>. ch. od, P.irl<. Ins. lit; 2 .\!a^n>n^^ Essays 31 ; 3 Heiiuelt F. I. Causes til'J ; Ogden <■. .\loii- trfal Ills. Co , :i I'. (;. {;. l'._ ,-,13. 15.S. ;!(/. Peril, ri»k or hazard: "The risk is uf the essence of insurance properly so called; it is the p!im'i]i,il ground of the contract, which would cease from the moment that deprived it of the uluueul that gives it life " (iMiierigon ;j). 6f KKQI'ISriKS OF THE I'OI.ICY. The risk or peril insured a<,'ain3t should 1m distiiictly sjiecified and liniitod, us in lire policies " agiiinst uU such iiiiinediate loss (I! (liuiiiijjc^ as may occur bujire to the pDperty spt'cilied." (Km).!. I<>K:{.j 1 Arnoiild Ins. 34; 1 Philips Ins. iG, § :-tr), 30; Hopkins M:ir Iin. f)!. m. IfSIK \lh. t:inhject or intereii/ the lii'^vi-inire, with oinier-^hip and occujianci/ or luse of preniisen : The sub- ject covered may he a valual)le property, interest or contiiii^oncy owned or held in trust, or otiierwisc, hy the insured, and must so apj)ear upon the face of the i)olicy, and to this extent will be aMarranty; and as the contract will cover no other siibjiict, i'.itcrest or occupancy than tiiose descril)ed in liie policy, its validity will depend upon the suiHciency of the description by mIdcIi they can be di.stiM<,'ui>hrd la' identified, (l.'S^O. If>lt2.) 1 I'liilips luH. '15, § 31 ; li. 2i'\ § 18'), nnl autliiiritie-i citi''l ; ICiiiengou IiiH. 2J3, 247; Cliapmiui v. LiiiK'asliiii' Ins. (Ji., 1.1 I.. ('. J.:!i!; II ;'/. 72. KJO. i'lh. Locution : The location of the [.rdperly at risk under insurance should be stateil with sutlicii'iit icciiraoy to be readily found and cleaily ideiitilied mt dellned. The adju- dicatiuti of .some of the western cnurts of Inti .ears have rendered great care necessary where cliattel prop-iiyi. the subject of insuran(te. See " (JontauKni in " (ItJ.S.Hi tor iiutimrities. I<»1. Gth, Amoinit of nKixlnmin liahiliti/: The li.ibility of the underwriter is, in lii'e insurance, limited by the sum sjieciiied to l)e covered by the polii'V ; it may be less, but never call I'C more. It may lie ap]ilied to one or more subjects or inte- rest.^, or to sucee.s.sive subjects as in "open lire policies." (JtOIK) It iiiay also be limileil by tlie terms of ibc coiitiact to a (pertain propoiiion only of the value of the subject covered, as .uie half, twii-ihiid.s, three-(iuiirlers, a.- ui llie inuMial system. (I<»»>»"5 et seipj Kiiiprigon 77 , I I'liiliits lus. 2.'>R, mid uutburilieB cited ; Wullii'r v. Wetrop. Ins Co.. un Ale. 371. Kiti. 7>h Considerafioii, i>ro)iti>nn, mti pi-r cent, amount : The pri'iniiim a;.,'reed to be paid id the consideration, and should be clearly set forth in the policy. In the. customary forms of the fire policy, the payment of the consideration is acknowledged, REQUISITES OF THK POLICY. 69 aiul iniports settlement by ca-sli or iiute, or both, of the pr.'iniimi charge sinuiltuucon.sly with tlio issue of the poHcy. (77 — cvcc] wliere restricted by law, as in the "standard jiulieics '.- nuiy in.seil in the ]..licv what conditions they may a.gree ii|)oii, provided only iji.u (liure be nothing therein repugnant to the nature of the contract or contrary to the (Criminal code or ]Mit.lic p(dicy. Any words suitable to indicate tiie intention ol the parties may be used in ihe formation of the contract. For authorities see !<»!» et seq. I««. 1l7/(, Snhscnption: counter siil)srrii,t!.on !>;/ (he oifcnt: The policy, t() be valid, must be subscribed bv the ,:«& 70 REQUISITES OK THE TOLICY. odicers nf the. Company, iu conforniity witli tin' roqiiiroiupnts of the cliiirUn' ; usuiiUy by tiio .Sufretury, tlui otlier iiainos being in fiW tiiiiiile, Ju polieii^.s wbicli aiv. not to bo com])lt'to nutil luiii.tcr.signi'd liy some iluly autlmrized aj:ent, tlie sij^natures of tbi' ollii:ei\s aie printed, lunl I lie policy becinnes dperativo only fifler such counter-sij,'nutare of ilie aj^ent. (-LHO.) Thus the poliey being suhsciil'ed l)y one of the parties only liocnnies of tJie nature Oi a deal -pal I. wliiidi is oidy of one part, and Ihe solo deed ot the grantor, i'lie words an his, ami bind Inm only, and aie, to be taken most stronj^ly ayainst against him and iu favor of the grantee, thns differing essentially trom an indent a i>:\ which bars either pari}' lYoni exeeptinL; to any thing eontaiiK'd in it, and eiuh is estojip'd from ili>pnting the validuy otany juirt. (IIO.) "I Aiiii'iild In3. ',is. 11, last prtrrttriiipli of - .''"i . 1 D'ltfr liisCiri; Kmcrigon 3;t, '111, sHvs : " It is the signature which jfives life to mid in'iCccts tho contract, 4 Lan., N'.Y., -iSS; 21 Ind. 7;^ ; Dimock c, X. M. Mi.t. A^m. 1 Allan Him, Ko seal is necessary, unless made so by the re(|uirements of the policy. (I— •S»«) The eoimier-signatnre of the polic\' ly "the duly autlionztid agent," although oxjiressly rcipiired niitliT its stipulations, may be di,s]M,'nsed with when the inti-ntiMU to exenite is ^utlicieiitly plain and i-in be so shewn lt'Ji\ery of the instrmnent is a formal waiver nf lack ol ronnler-signatiire, " A Uouipany cannot take adsaiitaije of its own uimii;.'' Ililiernia Ins. Co. v. Connor, 2a Mich, ill ; :: In.s. Law .luur. '".is ; Wostchi'ster Im. Co. /■. Earle and Rpy'iolds, >i. C. Mich.: 5 Ins. Law .Jour. lU, and aniliorities cited; 10! Ma.-;3. Iil4 ; 5 Dalv, rjS ; ;»i', Conn. .'ai;!. IVr 0(m'r.i, I:! H. .\[unroe, Ky. ,!H:.i ; I'errv ('. Newca..'(ii' M- [. Co., » U. Ciin, y. B, 3t>.t ; Fouidriuior o. HHilford In.-;. < o., 1". U. C. C. V.Aii. H»7. iL'//,. J)(itv of su'tisrv'i iitidii . This i< only prosimqilive, not coindusive, of the fict it attests. Tlif acuial dale of execution njay be sIp'WU by parol e\idei!cc. though dilfeivut from tiiat which ihe poln-y bear.s. (Hil. .SIO.) 1 Arnould Jn.^. :-!8, ^ Wi. |<».S. ],'!///, I'lilfrd SiaU\s t<(ijiiiiis, as reijuircd Ijy law. Lequii I laeiii now obsolete. .^1 ■M CONDITIONS OF Til E FIRE POLICY ^8f l<»J». I'hc iiiMiniiui' poliryis a conditi.jtial contract, and has 1)0011 aptly {leHi<,'iiattHl as a " pi'i|ii'tual oxiu'rinu'iit," "cuiiivly on s]i(.'('ularinn," wlicii' llic nnilcrwriter i^i roinpletely at the iiicrfv if the insured, lnjin^ nocessarily iunnrant, beyond tht; facts tliat in((uiry may elicit as to the circumstances attend- ing the risk, hence open to fraud hy designing parties who Tuay inisrepivseni niiilerial facts conn(>cted witli the subject of the proposed insurance. ]lence the various specitic conditions, jirinted or written, attached to the policy result from the peculiar nature of the contract. Tliey are simply wfene al stipidaliniis for jirotection of the underwriter again-t frauil, Ahi''li the insured, liy th'>. iicceptaiico of the policy, agrees to observe duvine its currency. Tliey have been found esvsenlial to the business, have ari.sen out of i nd ,L,'ro\vn u[i with the business, and are inseparable from it, and an^ now inj^'rafted into the ])olicy as a part of ihe system. (i;5»>.) " Mhv In.s. 3, § 4 n.id uiiliiMritios citoii ; i \i\^.. (..aw -lour. Ol'j ; :} ISurr. l'.>OT, I-ord -Miviisfiflii." Laiigol r. Mut. tus. Co., 17 V. C. Q. H. 5'.M. I70. In this connection Lnrd Si\ 1,i-(inm;1)s (in th.> case of Anderson /•. l-'ilzgerald, 4 llnuse of Lords, c. 484) *iys : " riie (jourt-i, olisprvinj; lio«' viTV ollcn lOiiipHiiii'h of this iiiiliiro liii\f' been .sulijcoteil In fnuids, will CJirefiilly ^iiiinl tlii.in a;4aiusl friiuii, aii'l will give fli't'ct lo iiiiy iiart, i>{ tlie coiitraot whuih lii».« tlii.s olijcct. Vju- more, it is Croup the vci v luivici' jiivcii in courts of law that tlie com- jiJinies have eiicliiivi.>rci] In proli'c.t tlieiii^elve.-^ Iiv tliot^c slriiigeiit provision,- whii'li wo sii usually riiiil ,ii polioit-.s of iusuraucc." Biuiyon, iHt Kd. 5G. Insurance law bemo^ d-. Lord St Leonards suogt^sLs, largelv "Jmlge-made law" rather than legislative, tlic.se condition-, varying in the various policie.s, in ronseipience of the ell'ort.- of the ojlices to keep idu'c.'ist with the court decisi(uis from time to time, were for many years sources of trouble and vexation, i vcuilually leading to the adoption of soinelhing more uniform ni shape of the National Board form in 1.S07. (175.) Ibit after the retirement of the National Board from "0 CONDITIONS itF TllK FlUE POLICY. the control of tlu' firo insurance busin(!38 of the country, •'iic'li (jllice seems to have bocouie ii law unto itself in the matter of pulley conditions, except in tiiose Status where, "unifoni' " or "StaniJanl" forms of policies have hecsn adopted, and tliiir use made oliligatory upon companies operating within tlieir several jurisdictions ; but unfortunately these several "Staii<]a\d" forms are not altncrL'ther uniform or haiinunious. (I.Hl.) ITI. In IJie early days of tire insurance, botli in Eng- land and America, in addition to the conditions, Ktipulations, and exceptions embodied in tlie policy it-idl', prior to the subscriptions, various otlier " /irujinsaU for iuHXiraiice" are referred to as the Ijasis upon wiiii.'h insurances were to be taken. These pro/n^sals, now known us '^ coiuUtions of liixu,- raiuc," were formerly printed upon a separate sheet, a copy, enclosed in a wrajiper and referred to in tlie policy as a part thereof, was piest'uti'd to tifh ins uvd with his policy. Upon this [iraetice many important dt'cisions of the courts have been predicated. ^Sun Fire Ulhce, INdiey of 18-0.) The pliicing of tln'so " projxmils for i)iiii(ri(V(Y" u])nn the same sheet witli the policy was first adopted in this eonntiy A. P. 1801), evidently copied tioiii the policy of the Ph(eni,K Firi' Otlice of London, tluMi having iin agency in New York. (ir<». 4.>-l et se(|.) 17ti* These conilitiouK and <>xci'i)f((his luive been eonstantlv increasing in niimlier, and biarino: upon tlie riglits of the insured until they liave pro\oked conmiiMit from the courts, the following, among others : — " Many of the com[>aiiie.s hnvf* ('iicuiiilx'iril lln'ir |i()li(>ies witli so many coiiilifi'in-', that tlii'V oaii fipMoin tw liclil r('s|Hiii>il.|c for l.w-i-;, eA('<'|it at tlieir OM n oulioii."— ('lm|itiian, .'. •■' Tlu'v are fmir tiim-s as voluiniiioiis as tin' policy itself, anl wliicli, if stricily coiistrued, tak<' back nearly all llie [loliRv ^raiif-i, aiiil leave the ti--iir('i| atwiil a8 empiy-hainleii as he lienun." Woolwanl, C. J. "The inO<)ern poliey i~ a /'':r// Owinjilieaieil e.diitract. Hefure oxeciuiiig almost any other in-tnimetit uf e.|iial |.H'rplexity, the partie> wuiiM deem it necesfiary lu take .I'lvice of uhle counsel.'" — Dntiui), .f Fur other similar obiter, see I ftis. [.aw Jmir. 1'.' ; i id. 922) Sid. li:.. CONDITIONS Pltl'X'EDENT. 73 173:1. Conditiciis an' treated l)y llu; courts us of two clas8t;,s, tliost! uliicli ciitur into and form a i)iirt uf tlie con- tract, and arc essential to nuiking it a himling Cijnfrai-.t, and etipiilations, wliioli mv mutual a<,'roemont.s rather than con- trat^ts, as tlioy refer ospeeially to matters that arc in ho performed after a loss, sucl; as furnishing preliminary pnmfs of loss, which have no relation to thi' merits, being siinply Iho consequenre of a special eondition, and are never reijuired by law outside of the poliey. ^2 Ins. Law Jour, ni!),) T!io courts view these conditions as of three kinds, viz. ; ('i)n
  • ion,s precedent, E:rj)re.H8 conditions, Implied cond'diom. CONlJlTIO^sS I'KECEDENT, ITS. Conditiotm preeedeni are those which are io he ]if'r- formed before the obliuatioii commences. It is a warranty that the matter stipulated for shall he as a(jreed, and can generally be exactly performed ; and equity will not ordinarily interfere to avoid the (H)nseqnences of non-performancL' for any cause. I)Ut conditions precedent cannot be establisht'd Uy inference ; they must be e.xjilicit. (! llanti O. 454; i'iril r. I'eun. Muf. Life In?. Co., 5 Ins. Law Jour. 4tO, and cases cited; Langcl r. .Mm. Iii.s- Co. 17 U. ('. Q. B. 524. Just what particular forni of words was necessary to a <'.nndi- tiou precedent in au insurance rontract was formerly tin; subject of many nice and subtle ilistinctions ; but it i< now wtdl settled that an underwriter may, as a rule, prescribe any cinidi- tiotis he pleases to his undertakings, not contrary to good morals, i>ublic policy, nor ropuguaiiL to the purposes of the contract, (liM>), and such conditions uill be binding iipitii the parties assenting thereto by the accepting the policy containing them. Bayly & Pond v. Lond. & Lane. Ing. Co., U. S. D. 0., La., 187,5; 4 Ins. Law- Jour. 503 ; Fiinte r. Ins. Co. K. C, V. C, 4 Iiih. Law Jonr. 202 ; 2 Valin » Couiir.. 44. If it be a condition that a constant watch shall !•'• kept on the premises, otiierwise the jxdicy to be void, if sucii watch be not maintained, the policy ceases, and no question can arise whether complianco atlected the risk in any way. No laches ^^nummmmmmKmKUfKmK f^ ■ CONDITIONS OK I'OLICY. will 1)1- |ii',niiiltt'(l, inid duo «liligcmu' luu.^l be iia'tl iiiulcr all circiiin.stiiucus of the case. 3 Hill, N. v., .'"! , 10 Groy. MdSg. 306; McUride v. Oorc Dial. M, f, Co , :w U. 0. Q. I!. IM 17;til. Wliitlicr a I'niitnu't in to (.'.11111111111! nperative in tlir event (if |ierf(,)rinaiK'e becoiuini; iiiiiKi.sailile, is u (|ueHtiun of iiin'iiliiiii (if the parties. If there Ix! a coiuiiliim iireei.'.hMit Uj d>> an iini.ossihlc tiling, the ulili^'afioii heoomes ,siii>,'le , hut liowevtr iiii|)inl)alile ihc thing niav he, it must be eoiniilied with, or the right which was tn attaeh oil its being ijerforuK'il dned not v.'st. l7;Sb. No .Irgive (if h.irdsliip will Natisi'y the rule that " the net (if 0(1(1," reinlcrinv;: thr [ierf..rniance iiupussiiile, is u defence, and in no easi; is impossibility an exeiise if it refer solely to \h(i personal disability of the promisor, there Ixiing no natural impossibility in the thing. ("Act of Clod," see Bouvier Law Dicty, TlUe.) Tiiit>'/ ;/. '. N. Y. Litoliis. Co.. J Insi. Law .lour. Sn,-^ ; [.awriMic" 1. Twcuiiiiinn, 1 iu'n. .Vhri.lg. -tJO, Coiul G 111. 10; 1 Pfiin. Sla. 4;ii ; Boa, \ full. 21:i; 10 Pick. Mas-s. 507. COXDITIOXS SlIl'.SKijrKNT. 17J$<'. Conditions siibs,H|uent .nv those ^vhtire the elteet h not produe.'il until after the roiiimeneemeiit of the (.ibligatioii. If vdid at its creation, or it liecomes imjiossihlc or unlawful, or in any wav void, the obligation remains inijiaet and ab.sulute. (2 Black. <',.inni. 157; 15 (ia. U. In,;.) ]Vit equity will iiiteifcic where there may have been even a ii;irtial ]icrforni- ancc, or wliere there is only a. delay of performance. Cmlib s lief.! I'roii, « 21t;(); 1 Ind, R 1'^ ; ih Me. R. fi'iS. Cdiiditions sub.se(pient aiv not favored in la'.\, and are not to be raised readily by inference or argument, and only when ajit and siithci<'Ut words are used for tiie purjuise. Lnberee ". Cnrlton. fw M<^. 211!, Jl.'i ■ Wilkiris r. Tobacco Iqs. Co., i"! ln.^. I.nw Jour. ;)2'.'; .MeiriRcld v. Uolleigb, 4 Uii.^b. Mass. 184, 18,"). KXPliKS.^ COXDITIOXS, IT I. Kxpre.ss conditions are those created by the express, words of the contract. Tioi- a c(Uiditioii of the i)(.ilicy, that tlie f ■ffij I't » 8TATUT0KY CONniTIONH. 76 % -0' apjilicatidn iii>()n wliicli it is imm\ is (rut', is an oxprusH cninli. tiuii , lutt .-'iu;li i^liiuiluliuii ducH iioL make tlie iijipliciitiou a pait of till' f( Hi til (it.. Aiiv wunii ,siiit,i,blii to iiulicuto tho intention of tlio p;iili>- niav he ustMl in the creation uf the C(»ii(liti(>ns. "On cdiulititni " is a cunuiion lonii a« StofittoDj contldhm.^ or ^\n1e^< are legislative i nart- nii'uts designed toit'gulate the subjects to which such ccidcs may relate. Several of the I'nitcd States — New \ ovk, ^rassachusetts, California and Georgia — have snch codes, iiorlions of which are devoted to in.siirance in its several branches. There is also the Cii'U Code of Lower Canada, some el)a|)ter8 of which cover insurance matters, written originally in Tninch, and citing numerous long-forgotten authors as authorities for the dilferent artichjs. 17'lh. (">NTAUio has, in the Revi.sed Statutes of that Provincp, several chiiiiters devoted to fire, insurance, both stock and mut ual, Cli;ip, l()2of winch is eiuitled ; ''An Act to scicurt! Uniterm conditions in ])olicies of tire insurance," comnumly known as "Statutory Conduion-;," wliich l>y iij ;'> of the cluqiter "an; to be printed on every p(jlicy, with the heading ' Statutnrv Cdi li- 70 OKNF.nAI. PHINCIPI.KS. ti Ills'," % § 4, nil vftriiilioiis from IIu-hc < the tire and inland marine hnsitie.ss, bnt oliietly ns to the eompaiii.ja and what >8 requirotl of theiu, ratlnM- than to policy eonditioiia. CKXKk.M. I'KlNl'll'LKS. 17«. Tin' conditioiis of iiisunuico, if contained in a paper annexed to the policy, and tlelivered with it, need not ho expressly referred to therein, but are cousidorod prima facie a part thereof. ilTI.) 1 Philips Ins. 48, § 71, ami awthoritiiH cited : Graham i , Sli-Tciis, 3t Vt UUJ ; 57 Jfp. 170; a [us. Law J(.ur. 10; Uooii v .BtiiH lin. Co.. IT S., V,.V Dint. (Ninn. ; 4 Ins. Uw Jour. 30 ; .Murdork i>. Kii* Ins Co., 2 N. V. 210; Dunonn u. Sim Fire \m Co., (i WtMid, N. y. 48H ; Jaool)* v KqiiiUible V. I Co., IS T. f. Q. I!, .n:!. \ condition inserted in a |)olicy, wilh coiisiMi;, ol the parLies after .suli.si'ription, i.s a part of it. ( 1 107.) I74(;i« When the conditions inipo.'^e restiietive Inirdeiis u[ion the in-,invi|, th.^y will Ite coiistnied strictly against those f^r whose iicii -lit. they are reserved, as they aie held to n;irrou the ran<,'e and limit the firce of the principal oMigation. (I!4ri>2.) fi \m. L.nv Jour. Ii7; (.IJ .Vi'w Vijrk R. KKt) , 1 Siiinm'r, t be waived or changed without the written oonsi'ut of the underwriter or his au'C'it, indorsed upon the policy. Insurers have the right to insist upon the due ob.servance of every policy condition assented to by the insured, by the acceptance of the policy, and are entitled to the benefit of every legal restriction upon their lial>ility provided for in tln^ contract, but no strained interjiretatiori will be [icrniitted. Bum V. riome Ins. Co., Ohio, N. Y., (.'. A., Doc, 74 ; ."> Ins I-rw .lour l.'i. \Y CIKNEUAf, I'RINCM'I.KS. 77 177. III!' (vnitlitions iiiHoilDil in iIk: policy of any La. i", oiled 1 Hcniiftt'a K. I, Csto* fiOO. I7.H. To Ljivc validity to in.siiranot' it innnt ho contiiincil in a poHoy , and ilir pnliry )t<.HHt contain no ayrceiuentcontriiri/ to the nature uf the cant met. Enii.'ri;,'oii li'i. Gee I'. I'liPHliire Mul, Fire liiR. Co., H C. .V. H, 1H74; 4 Ins Law Jour, 491, 4U- ; 2 Vnliii'H (.'(Hiiiii 44; 1 Hoiiv. Liiw |)k'Ij-,, Title li'iuynanry. I71>. it is iin easy inattfir to intrfxlnce conditions nml stipiiliilions inlip policit's wliicli an* vnliit'los.s in a Ii'^ral .ncn^e fi'iini rcpn^MuuKiy ; mid iniiny of the firi' policies of \\u\ |.i(SMit tlay coiitiiin cxccplional stijuilatioiis rejm^'inuit to ilm intent and })iiipost'.s of tlic insurance' contract. (l7iS^ IIMI.) I.HO* In Alassacinisctts, the law rcciiiircs that all condiliona of Llio policy, Itotli written and punted, shall ]. recede tlm sigTiutnres of tlic siihscril>iii,i^ olliciuls, and it i.s held in that State that iIn- stipnial inn thai, " this policy i.s made and accepted in reference to tlu> terni-i and conditions herein coutnincd and hereto aiiiicxcd, which are herehy declared to be a pari nf tlii.s contract," d()(;s not import into the contract any condition not set forth in tlic face of the policy. ('J Mass. 420.) The .several conditions of the insurance contract as found m the customary firms i\{ tire policies will he taken up seriatim, iisiiij,' the Ndt'iinml Uuanl fvi'tu a^ the te,vt. Those a]i]'ertaiii- ing directly to lo.sses and their .si'ttleineot, will be treated in connection with the adjustment of losycs. CONSTRUCTION OF Till: I^Ol.lCY. LSI. The construction of tlie poliry, like otlifir iii.slnirnenta in wrilinu, is a question oi' la», the determination of Avliich lielungs exclusively to the courts. " A contract enibracing so many interests and parties, and liable to be atlect(?id by so many events, cannot but i>e subject to some difficulties of construction however skilfidly it may be diauu " (1 riiilins Ins. 5.) (141.) HaqHr r. Albany MiU. \n^. Co., 17 .N. Y. IIH; Wu-hinirton F. I. Co. r. I>aM-nii \- .-^ villi Morton, 3(1 .^11, '<-, 1(17, I OS : I AriuuiM fin. liii, 75; 1 Duer- In.-. i,">-<. •Jill ; VVcsketllri.s. tUO. 1.H2. There is a distinction liy the courts ie cases where the pre]»araUi)ii of an ii'strunient belongs to a ]iart:y toliecome liable under it. Such i>arty, it is lield, naudit to 1h> more strictly dealt w ii!i Insurance contracts couie within the j'riiK'.iple that " excep- tions of risks are to be taken more strongly a.Liainst the it^nrer, for wimse benefit such e.vccjitions are intended." (174iil, Fnote c .Ltna IJie lii^. Co.. C. A., N. Y-, t Iiih. Law Jour. 2ti- ; (ifnnJ'nia In-. Cu /•. Sherlock, S. C., Oliiu, I In.-. Law Jour. b'.iS, and aiitiioraie.-< citeii ; AmcritHti UrtslvtCo. t\ Farniville Ini. Co., U.S. C. C, Disi. Vu., S Inn. Lau .}onv. ;!lil is;{. Stipulations iiiijili?d by tlio language of th(! policy of insuruace are as much a part of the instrument as any of its i-.Kiiicss eouditions. (I7*i.) 1, Philips Ins. 47, § ti7. J.Hl. " Insurani'.es are always presumed to be made m the manner in which they ought to have been made." Kmerigon 25, l>»-». All colli iMcts are inU'r[in;trd by the laws of the pkict* wliere they iire made, except those concerning lands lying in another State, which will be governed by the laws nf sui'h State and — excejit that .such contracts as by their terms aic to be performed out of the State where made — art! to l>e construed and controlled by the law of the place where they are to be jierformed. 'J'tiiin|i-oii I'. Ki'tcliani,H Johns 1h9 ; Clark r, Tii'kcr, ?. Saipl.N'. Y 157 ; Cnrli.'i r. I-iuvitt, \o N. Y. ;• ; 1 lMiili|(.'^ lux. 75, J 121 , llydc r- Goociiunv, 'i N- V. 2r)(j : 2 IJoiiv. Law Diet)., Title, " J.eA Loci,' ,0). m m rillNCIl'LKS OF CONSTRUCTION. 70 Construction by the courts is of two kinds: ^-^''d or literal and liberal or equitable. \Hii, A Htrict or litenil constrnction limits tlie upplicatinn of tlie jirovi.sion.s of the instrnnicnt to Cii.ses cluurly de.scjrilicd by tho Avoids used therein. (I^S.) IHT. A liberal or equitable construction is one by \vliich tile letter is enlarged or restniiued, so as more effectuully to iiccoiiijilish tlic end in view. (120.H.) IcS.s. \Vheii conditions are Ubevally construed, a strict per- foriuiijice is also required ; and \vhen a i^trict construction is required a n(,n-exiict performance is allowed. 1.**!*. The leaniii;^' of the courts is towania a liberal Construction of contracts of insurance under any circumstances ; anil, us was said of ci.ndilinns, lliey will he construed strictly against those for whose .Senelit the reservations in tla^ policy are made. {\H'*. 24^:$ji.; 4 Xna. Law .luiir. .^is, siipnt ■ Staccy r. l-'ifinkliii In.'^. Co., 2 \V. A 8 , 2 beiiii. F. I . CasoH llj. I1>0. Where a policy contained the following written clause ; " It i.s oxjjre.'^'ly agreed tliat llu' a.'i.-iircil i.'^ td Icwpeiglit bucket.M lilieii with wiitir on the first ll.Hir wheft' the iii;ichiin'i\ i.< run, and (bur in the ' iii«einent by the reservoir, ready lor use at all times in jik.se of lire."' //«/(/.-" 'I'liis Colli. 1 Hut he .'OMsiiiereii either a coiiililii'ii or provi.so, in the polioy, hut wa-s an ri'x,s ogwemcul mi the part i if the usiinred, and ,Nuich imi>i Uc constriieil hke other ajrreoinent't. The nih* ibr the ccmstriu tion i>t .siuli an agreement is, that while the asaured will not 'le held to a li/tf>al tiuniiliimcc with tiie varrivnty, as, for instance, in keeping the huckets till(»il with water, during winter .season, wiien no lires wore .vllowed in tiie hiiilding which might lie inipo.-..sil)le, and could not have lieeti coniemplatei] hy tiie partie.s; vet, it is under .such agreement, inciii'..heni on the a.ssured, to keep the reipiired number of huckets in good and serviceaile condition, at tlio jilaces designated ready for i'l.stant iiae. a fail.ire to do which shonid lire occur, would pn'vent a recovery upon the policy. (' Ins. J..uwJjur. tiit>(iii)iij;li, in RobcrUsoa v, Frt'iH-li, -1 Kii.-l. 130; ;j. 78, ciliiiK Kuli' IV. 7 Ciirr. .v I'. 7i'l ; 3 KeiU'ti Comm. lijiS, T>'.> ; KmiTigoil 4"J. As to '' Anibigiiiiv." soe 1 Phili|i3 Ins. T;i. iir,to I Cu- audiontie.s; Fniicliilti «. Liv. iinil Lend, lii.s. Co., C. A N V,, It^Vli, J Ins, Law Jour, ll.'i: -1 Ins. Law Jour. II'', 'J'l:'> siiIijL'ct niiitki of till' eoiitriict, mikI tlu; Hitiiauou of llio pill! ii.'.s arc ti) bo fiillv ('.oiLsidered, with regard to the seu.'si! in ^\lll^h the latii,'iuij,^e i.s ii.scd. I!>l!i. Thi' jmn'i.^ioii,-) of thf puiicy arc not sulijeet to be con- tniiliilcil ami superseded by evidence of what toi.ik place betwe(>n the paitii'3 at the time of makin;:; it, or of what facts were known to tlie agent or iinderwriU'r. All pi'evioii.s verbal agreements are inergi-d in the urilteii instruiiieiit whieli must be taki'ii a.s rej)ieseutiiig the whole terms ui the contract. A contract ciiiimt exi.'st parti}' in writing, and p;iitl\ liv pandi-. (^l.'tO.H. I Ititi.) Whiter. A hton, 51 S.Y. 280; Wl.iic v. Walker, M 111. iM -. Foxinn v FoxlDn, ■-'« .Mich 159; Bell v. Wfat. M. i K. InsCo. f) Uot> La. 4'J.l ; I'liMriix In.'?. Co. <■ tiiiruii>, 1 Paige Cliy. .N. V. 27k : r?iioii Miit. Lite Ins. Oo. v Muwry, »S. (' V. S. Ott.. 1S77; 7 In». L.iw Jciir. 20;^ ; Tudd r. Liv. .v L. & (ilobu Iiib. Co., 18 L\ C. C. P. U2. i THK IXTKXTIOX. ay.l. "The subject niattt-r nf marine nnd lire insurance and otlii-; mercantile contracts makes it neei'ssury t<. go out of the writtiMi instrument, in oidi^r to interjirel it, more iVctjueiith than in niM,.-t oilier contracts, Jlrnce facts ami circiimsianots dtkura tiie insirumeiit may Ix' proved to di.scover the intention of the party; but tln^ courts arc alway.s cautions of going out of the policy for evidence as to its construction. I I'lul. Ins. 73,!$ 110. " /! i>iili<'il of iii-;uranee of .my othc.i' tfritli n <(>ntiucf" munt be t'df.iij in the sense in n^ln-ch the p'lrth's nHped'ivchj and mciproraUi/ v^ere oHthot'i:eif to iaU'vA and understand if, and no other construction can be put upon it by means of parol testimony. 1 I'hilip.n 1ih 7o. -i lL'2. The itali-s are hi.s. 2 yennett'j V. I. coaes 115 ; Wcskcll 12'j. TUF JSTEKTION. n 1!> t. Actual i)ib ,, '■■ ' ('/ '■'"' parties is tlv controUinjj prin- ciplt! fioiH whicli all s|K»ciaI rub'.s of interprrrUitiuu flow, and to which tlit'V are all subsidiitr}- and siib.jrn is to give eoniplete el't'ed to the iutt'ntiou of the contracting forties, when this can be done consist'-ntly witii the rules of law , but it niuAhe the intention expre>*M(l. Wf-ikett Ins. 20;t, cites Roccii.J and olhera : 1 I'hilips Iu3. 74, V'l, 76. 11l.>- ' riif tr;u' i)rinc,iiil^, 0, n />. 1 Philips Ins. 7H, § 131, and numproua autliorii.H - (-iteii, n. 4 j t Diut las. 211 : 1 Ariumld Ins. 65, note c. |{M>. Wliile the " iuLenMoii n\' the parti'r'^ i.~! the pole-star of conslrin'titiH," the intentinti niii-'7« The predoiainaiit intention of iJie j)artii.'s in a contract of insurance i.^ indemnity (Hi.T»0>; and thi.s intention i.s to be kept in virw and favored m putting a construction ujion the policy. Itft.H. "Out? cardinal rule (in construction) rei|uire3 that word> .iiid i(lira>e8 shall be taken in their ordinary po])ular sense, urdess they appear to have been used in a ditfeivnt sense." Savage v. Howard lus. Co., 52 N. V. oOl* ; 2 Ins. Law Jour. 769. I1>U. In this eonneetion reference i.^ made to the opininn nf Judge C.\ki'i;ntek in the reversal of the c^ise of Lyons r. I'rovid.Mjce- Washington ins. Co., Sup. (.!t. of B. I., Octolier Term, ISS'2, whvTn the point at issiie wus the construction i)f the plira.se "Containe».) F 82 I'KINTKl) CONDITIOXS. riUNTED CONDITIONS vs. WlllTTKN WORDS. 2,iu wliiU'e there i,s no contrudictioii lietweeii the twn, thv- [iriiiied elaiLses must stand and have tlie full etleet n]' their terms. hoeaiiHe they have lieeti adnpted by llie i«arlies." (Kiueri^nii see. Ill, § ii;3, citing several old text writers and policy I'Mrius.) !t20l« Where the written and |ii'!nlid clauses of a jxiliej' are incoiisi.stent wiUi eacli other, one nf tlu;in must j^ive way. Hence, in deternnning the construciou ol written instrunu'nts con-.'>. Livingstoue 4'. West. Assur. ("o., 14 Orant 71 . 20 I'. C. <^. 11. i)U7, Re3-no]iis v. t'lunmerciiii Ins. I'o., '2 Ins. Law .((iiir. '"i;!. SsSOlii. ll the wiitten clause \aries from ihe printed, it Ls evidence of a sj)ecial contract made in a particular case, different from the u.sUal contract of insmaiKc; and it must necessarily he considered as the real agreenient of the jiarties. If till- .vritten and printed clauses can he reconciled by any fair constriK tion, it ought to be done; if they cannot, the fornu'r must prevail. (I John, t'ases, J ; .\ngell Iii.h, iL'.; {i'2'2li.) tJOli. \\ here the piiiued conditions of the poll, y stijailattid that It would no! lie liable " for any lo.ss or damage causcil by, or con.s('iiuent upon, tin bursting or collap.sing of a steam-boiler or steani-jiij»e,' while the written ponion specifieally covered the sietim engine n[ion the premise.s. JltlU: •'The written claUde must prevail; and the iiiiilerwritor wh.s liable, although OF TEFOtS OR WORDS rsK.D. 88 Mic tiro wliicli dostroyiid llu' pi oinirly on veved was cuusimI liy exi'lMsioii (if iht' stciiiulinilcr, tlio use of the sLwuii cnj^'iiie iuvDlvini,' tlic use of tlic lioilci, tlio risk was a part of tin; peril insured a<;iUiist,." ( lliui-cir r. Albany Ins. Co. 17 iN. V. I'.iS; Harper /•. N.Y. ('it\ Ins. Co. 22 N.Y. 441.) 2(»:i:i. In tlie cise of llrviu v. oS^.Y. Ceutr. lus. Co. (3 N.Y. .Suii. ('. 2i;*), it wa.s held that "the, fact that the provi.siou was in tine ]iriiil and was nut di-C'e-iavd l)y tlie lioldor oi tlie policy until after th" i)ropertY hi'd l-i-cn luuau'd, did not d(-privi' the iiisiu'anei' < iiupany of tliu beiielit of such ]irovisi(jn." (I'J.ia. Ii«l.) liH. Co. V. Slau<,diter, 4 Wall. U. S. 404. M IV Ins. isi Wood Ins. IW; 1 P.irs^nriH Ins. 6.'), subject ; Delongueruare u. Tiiulesmpir.s Ins. Co., 2 H.ill .^ss ; 1 li.'iuu-iiX F. t. Oiwes, 307. (»F TFd.'.M.^ on WORDS USKH. ii4K{. Thf leruis us.m] in the instuanee contract are, for the Tunst part, tlm^f in (inliiiary ae.(rpt;iti(ai anion;.; lai.sinesa nie!i, anJ -;li')iild be ennstrucd in llu' sense which tiir known usage oi tva'li- w'.nl 111-. Co. n liiri) .V. Y. ■■« ; 1 Duer l'.!l, \r:>. I.i4; 1 Parsons lus. 77; 1 l'ililil>3' Ills, 815. Wh-n words arc manit"( >tly inciiisisteut with llu- declared purpose and object of the c )ntract, ihey may be rejected, or wlicii words .lie omitted so a.s to defeat the eifeet of the contract they will lie supplied by lie' obviiUH .sense and inference from the, conto.Kt; and when words admit of two senses, that which iiives eifi'ct to tin- ilfsioii of llic parties is i.referrod to tluit which C^ oil destroys it ; tiid it is held that, where there is aa expression in a j'olicy capable uf two equally reasonable iuter[)relations, that oni' must be adopted which i.s more faNorable to the in.surcd, for the language of the jiolicy is that of thf insurers; and if they have left their design doubtful liy using obscure laiiguagt , the con.struotion «ill neces.sarily be unlavorabl' ti) them. In this Connection Lord iJ.vcox says: "It is a rule not to b,j resorted to. imr to be relied upon, but when .ill oiher rules ot e.Kpo.sitioa fail." (4 Ins. Law -lour. 2n().) 84 FORFKITUIiES, t204. A coiivt in S(>leotini: imioii'' diiVcront mcaniiiirs of wiiich the phmseolc )<,'}' is siiscoptiblc, will avoid such us are absurd, or U'ad to unreasonable or inconvenient consequences, or Would render the insurance illegal or void. (9 In;,. Law Jour. 187.; rrna-EiTURES. SOt'^i. ' Fi'rfeitnres arc odious ti> the law, and in enforcing th .111, courts M ill never search for that constmction 'of language wluch must produce a forfeiture, where it will boar aiiullier reasi>nable construction whi( h will not produce sucli result." The right to insist ujioii a forfeiture for bleach of conditioa is strkt' jur'if . and iileial iiitendnieiils and enlarged con- stmction will u(>l be indul^'ed in fiivor of such foifeiliires. They niusl be brougiit >trict]y within tiie forfeiting clause, and will be. enforced only MJu'n there is the ele;irest evidence, that tluiL was what w.is in. ,iiit by the stipulations (tf the parties. SeainaiiH v- N. Wf^-I Ntnt J.itV Ins. Ci., V. S. ('. T. , Minn., oitiiii.' bi". To. V. WmIiI; yo I". S. .VKi •, Iw. C<>. >•. K;:i;lfw..ii, itii I'.-S. :u'l, Ins. (%). r. Norton, !<('. I'..S. 234; In.s. Co. r. liflKrisoii, oS* III. I2.i ; In- Co. < . Picrcc, 7.5 111, 4'Jo; Ins. Co. r. W;iii.. r, -I 111. llO; Mavir r. Ir,-. Co., ;iS I,.vvu :U.)4 ; Tliompsuu r. Ji,<. Co., .VJ .M,.. 4ti'.»; l'iiil< i: I'lufuix li,-. Co., 1;». U. C. Q. a 110. *J?'\ or which contradicts a settled rule of coui- mereial law, is inadmissible. aO!>. The eviilence of usage is rectuved for the sake of ascertaining the sense of the parties by their contract made with re fere nee to such uxd^f; for the custom tluni beconu^s {jart ," says Mr. I'lin.iPs, "abounds in illustrations of the ineaninij of werds and phrases used in contracts, beiim dek'rmiiied by evidence '■A usaija. "■i I <>. Utiagt: nucst be, rd-io nablc, u n {form, cerf'iin, and co7i- for, liable to law, iis vjell (t.y appliuble to tire insurance. It m;i.y be admissible to ex|)lain 'uliu.f is doubtful ; it in never admissible to contradict what is plain and free from ambiguity ; utln-rwise parlies may be arliitraiily held to mean ililferently from what tuey liave, wiitteii ; nor can xu^age be. efeciiial tt> render voll an express contract for a ealiMible coiiniderat'on. 211. The rule of evidence in regard to image is the same in policies of insurance as in other contracts, it is admitted to «, \jilain and interpret the policy, but not to control or contradict its obvious meaning, nur to alter or oj)pose a general princijile ur rule of law. The courts will iu»t readilv adopt these w^agc^, becausi; tliey m\; not unfrenuently. I'ounde'l iu mistake. Justice SroRV says: "Such jiroof is alway.s !■> be 86 CUSTOM; nSACE. (Klmitti'd uitli caiUious icluctmict", and tn ln' watclu'd Mitli scrupulous jfiilousy." tSIU. Ill authh/notis poitiniis of llic iiisuraiii'(> eontnvt, nsit/jf i.s soiiictiiiKf.s iH'iuiilti'd tntdiitvol as til the intent cftln) liaMiis, U(jL tiiit'i'cinicnllv mnilifvini.' tlic udnliiij^ nl' the policy ; but, to be bimiin^ ujion tlif mulfrwritci', such vhii,'nid to tin ni, is held to he, admissilile. iilO. A ;/i/irr(iI nndijf ujiiv he siiji,rseded liy a /()('({/ usage; hut Idcnl cus/n7n or iisiigc aiuon^' undei writers, not comnuini- CUSTOM; USAGE. 87 catod l<. tlu) insiiivd, nur of such notoriety as to alTord any pr(3Hmn})tioii of kiiuwledge on his pait, is not aihiiis.sihlo aaO. A (Ustiiiot, ailihtioual, iiulnpondetit Ktipulatioii, not (;omi.n;luMi(lr(l in or covored by tho hxnt,d he hijfaris, siK'h as iustaiir.'s of its ohservanco. 222* 'i"hr trui! lest of nsafje is its having I'xistod a siif- iici.,M!l length of time Uj havo bi-conui genonilly kn.uvii, or warrant a presumption thai onntracts ans made in reference to it. 1 Philips Ins. 79, 5 123, et seq.r; 1 ArnouM InR.. Of,, ej seq. ; 1 Diipr Ina 180, 2''6- Ilopliins Mar. ln8.,4'JH-, 2 Henuott F. Leases, 58:.; VaMlieartl. r. Turner, VVim'h 21 V.inuess v. Pucard, 2 Pet. U. S- Ms ; Gordon ,t;l. ,: Lmic, H S. is R 5H3 .Snowdei. et al. <■. Wardoa, 3 Kawlc lOl . Mc.Ntasior ». Ponn. II. R., 10 I'. F Sniiili :iT4i 27 li 281!; Siuilb i'. flight, 1 Oaini'S, U. 4.;. XlcO.ma y. Prur. Ins. Cu, 1 Allen N. IJ. til. VAIMOUS KINDS OF INSURAJNCE. JOINT-ST(KJK Oli I'lloriilETAIiV INSURANCE. 3*j:i. Jiiiiit-sfock comjydnifis are usually iiu'Diiinmfiul, eitluT under j^Tonoral law?, or by s}u!ciiil t'liactnuiits, willi a siiecifiod amount of capital, liinittnl by the act of inc,or|tora- tJon, divided into sliaros subsoribiui f(»r and owiumI by stockholders or ^)voiirirtoi'^, and transffvablc by tlicm like (»ther stocks, but liatile for tln' dcbt.s of the coiiiorulioii. Such sto(d< may be (Ulher piiid up in full, or jiart in cash and the remainder in notes, subject to call at any time, a.> set lorth in the charter, rnltkc; uiatwd Uisuranw, the business is entirely at the risk of tlie proprietors, uutl for their uwn prolit or loss, us the case may be ; and in wise of insolveney the liability of the stockholder is unuilly limited liy the amnunt of stital, to one who may be a stranger to the corporation, who acquires no rights of membership liy reason of his |>nlicy, nor rijfht to partake in the protits, and subjects himself to no liability by reason of its losses. The payment ot j)remiums is a private jnatter of agreement between I he parties. The liabilities assumed by the company, aiiil the terms ami stipiila,- tions under which the jwlicy is issued, are mattei> (if condition and agreemcMit which are ratified by the insured's acceptiinco of Uie policy as written. MimJAI. INSUItANCi:. 80 MLTl'AL INSUUANCK, aai. All Hchcruiis of insunince, utlior tluiii joinl-stDck, iiro mutuiil, tliat i«, wlicro iiiiiulii'is of tho coiu|iiiiiy stuiid siimil- UitiiMdisly in tliu il'.ial rtiliiUdU of corpomtur or insurt!r and iiisiiK.il ; iiiidor tlio liitU'C lie Im'coukjs liiiblc f(ir liis iiuotfi of u Ti Fo.-it'.T N. H. 'W'> i Hiiy StiUf Mm. F. I. Co. v, Hiiwytif, 12 Ciijh. 64 ; linliuna ,Miit. F I. Co. v. CoiiiiiUanl, -' Iwl 'Mf) ; Mny Ins. IS, 19. 22la> riifi'o is no subscrilM'd Ciqiital in niuUiiil insuranco, all losses and oxpenso.s bcun;.' iiKft by a.ss(.'.s.snit.'nts iipmi the incmlit rs, cilln'r at rejiular periods or ii|ion tlu' oociirrcnce of each lo'^.s , lu'n>;e there is no necus.sity for tho tixinj,' of rates in advance ; the object of the as.soeiation Ix'iiif; to avoid los.ses l>y the .selection of the safer classes ot risks, and lluis reduce the ([uolas to a ininitnum. Tlie piemiuni paid i-^ usually a sum in cash at ibe outset, and a (lepihsit note api)ortioneil to the amount of (be iiiNurance; ■wliioli note, in general practice, becoine.s a lit.-n or inort^a;.^y, npon tlie liuul as well as upon the dwellinj^ tliereoii, when covered by the policy; and while in force is liabU- fur any juo rata assi'ssments that may be made tliereon by tlie company, to its full extent, or even more, when re(iuired, for payment of expenses and losses. People's F. I. Co. i< HiirtsborDe, 3 Norris, Pn. 455 ; Ilalfpt' nny f. People's F. I. Co., 1 .Norri», I'a. IS j Uu3sell i . Berry, Hup. C. Mich. , Cftry (•. Nngel, 2 Kiaa. 244. 225. In the Province of Ovtakio under the law, 3f) Vic. ch. 44, i> »•;) : " No preuiinni note oi umhjrtaking shall create any lien u|iiin the Uiiul on wlurli the insured property is situated." " No inemlMU' of any mutual in.^urance conqiany, to wliom this act may apply, shall be liable iu respect of any loss or other claim or demand against the company, otherwise than upon and tu tlu; extent o( the aimmiit unpaid upon his premiu'i) note." Statutory Coodiiiona of Ontario, sees. 45 et nxij. . ityv. St. Ontario, cti. 181. IMAGE EVALUATION TEST TARGET (MT-3) 1.0 I.I it'. 12 8 IM ij mms 836 It i^ 25 22 1.8 1.25 1,4 16 •• 6" ► V ^^ m ^e c*. #^ c*J ->. #j ■>, Photographic Sciences Corporation 23 WEST aAAIN STREET WEBSTER, N.Y 14580 (716) 873-4503 ,\ ^q\ ■1>' N> 9) V ^> V '^o^ fv^ ^1 V^- .<;' \ o^ <^' vmmmm wrnm 00 MUTUAL INSl'UANC-'K. aa«. Umlo.r tin; " CouHolllalvJ. Stati(hs of f.,mer Cmiivhi," S -i, i;li. t38 : K\iiiy muiuKer nf a mutual iiiMii;iuce company is made liiUilo to an extra asHessmi'iit, wlioii ni'rdful, of two ddllars iiiioii .'Vimt lotiv IniiMiinl dollacs nl insurance carriod U|K)n liis proporty ; and in tlie caso ol liofliflai^a Mat. Ins. ('.'. V. {.-Mwni, Montreal, S. C, when' tli( premium iiad been ]iaid in easii on taking' out the p of the courts where the (luestiiin has iit-en adjudicate , 10 lui. liiiw Jour. 5ii7 ; illiin^'liiiid ". Itu. "o., I Oiancii. 20 ; .Stat. (,'oaiJ. (Int., ? '>."). iJti.S. 1 iisohunt CoiHiHinui*. The plea of insolvency of the company is iiuulmissible as a defence to an aetion n]vin a premium note. It is a Fn>nch adage that "a iiiutua! insurance comjiauy can never be insulveiit." How c Allen, 1 Hantf. N Y 171. n. ; Hrown " Crookp, 4 N'. V. 51 : Sterling t>. Mere .\! It liH Co., 21! Pern. St. 7.') ; Uray «. Sim m.«, .".■< I'i lU, KHinud w. Wrtl-s, 1) M(». ('iarl^e /•. .Miilrll.'tnii, 19 Mo. 5!! : I'liouix Ins Co. c. Diaii, Ont. Div. Ooiirt. made a teat case atiJK The assessments of inuinal insurance coiripanica, collected fur th*; payment of a certain los.s claim, are subject to attachment by otli(;r creditors while yet in hand- ol the com)>any. Hays, iiiidoiser ot sth Avcnuo R. It. (Jo , N V , » Lycoinini-j I:i.^. I'o , S. , Feuu (premiiiiu was pail lu cast)), citiii^c I'oleMou i>. Sinclair, 2 N'orns, I'li. J50, and a'lthoritii'j i^inHi'd. 2:iO. Pri'-ionul iirapcrlij is exempt iVoiii levy lor un; ,aid premuim'j. Lieus, or judgments iu .such ca.ses, are rtjstricleJ to MUTUAL INSCHANCE. 91 tilt' roal i)roi)erty includetl in tho policy. But a part of the risk br'iiii,' upon i)ei'sonivl o.state will nut prevent tlic liling of a lien npon the ruiil estiite. l'o.)|i|. 'g Piro Ilia. ('o. c. Ilart^ihorne, 3 Norris, I'li. 4>')3 ; Iliilf'pi'niiy r. IV-ojile's F, 1 Co 4 Norris, I'a. 4H. tiJil. i1Ar?/)/>er.s7tv'7) dates from the consummation of the con- trad of insuranee ; a mcnilxu' is not liable for expenses or losses of th(' eompany prior to that time ; nor after tin' eaneellation or expiration of his insurance ; but hi: will Ix.' liable for his pro rata of such claims arising during the currency of his mem- Itership. I.ycoiiiinR Ins. Co. v. Wood, 8 Ins. Law Jour. SOT , Rilenborough i>. Protpclion Mut. Ins., H9 Penn. li;4 ; Van Slyhi> r Trftniileau Oo. Iiis. Co., W Wia. 0S3 ; 10 lui. Law .lour, ."jf.! , Civil Code 1.. C , 5 2471. Members ar<' presumed to have a knowledge of t!ui charter and by laws of their companies. Mutmil F. [. Co. V. Miller Lodge, etc., S. C. Md. Stockett's R. So. 68. t2:filii> MtituiiJ conipiinictf may cancel policies upon giving due notice and retnrinng insured's premium note after payment of all assessments for los.s(;s and expenses to date of cancella- tion. Members may cancel upon the .same terms. ColiimbiA Ins. Co. 0. .Miisontu'imor, 7i) Penn. St. l.iS ; Enimott i. Slitpr Mut ln.s Co . 7 K. iJ>*jl ; Coles i'. Iowa St.vtu .Mui. I us. Co., IS Iowa 4.;.') ; Slat Cou'i. (.tut., § 54. t2:t2. Guarantee capital: Some of the viutaol Ci>iiii>(nt.u'.s travLsact business upon the stock aiul hivtx.nl principle c.nn- biueil. Certain of tiir members of the company, who may or may not be insuivd therein, contribute u certain amount of ca,piL,d called ijiuivnatce cajiltal, iov whicih they hold ci'i'titi- catcs of share.s, and are i;ntitled to a stipulated interest, or to an agreeil share of any surplus receipts after the j)ayment of expenses and losses, at certain jieriods. tS!t!l. Mutual insurance is practised in dilierent localities under various forms, known as those doing busiue,ss with a joint stock capital, those with a guarantee cJijiital, those purely mutual, or mixed cash and mutual, and farmers or dub mutuals. In whatever ft>rui they operate they fall under the 92 MUTUAL INSUKANCE. general term mutuals, and are coMtrolled by the same general priDdjiii's. tS:i I. Factor}/ mntindft is ii name given to an organization of iiinfi('(,>n mutual «;()ni])auits of the Nt'W Kugliiiil States, — honee treijueutly (Kv-siguatoil ji.h tlie " iVew Kiiglaml Mutuals," — whoso lueiulx'i^Iii}* is entirely cnmiKiflO'l of owners of the priiirij.il cutton, wodjlen .iii'l other uiill.s of the lesd hazard- ous clay-i of factory risks of that suction chiefly. The ohj.'et of the as ooiatiou is to reduce the liazard of mills to a niiiiinnun by the intnuluction of apjwoved fire extinguish- ing fieihties, and thorough iTispeetion of each risk at freijuent interviils. \o manufaclurer eaii l.)e adniilted to ineml>ership mud Ills fiiotory has been inspected and fitted up to the recjuiivd standard, iioL unfrei|iieiitly obligating heavy outlays of time and nuuiey, which e.\i)cuditiiie may be regarded in the light of premium paid in inivaiice. Tiiis association writes heavy lines upon factory risks, but from their thorough protection against tiro, jitiy losses tiiat may occur an- unfre- quent and comi>ariitively liglit in amount, thus enabling the deciaiing of large dividends — return of over-paid premiums — each year to tjie Tiieiiiberslii]!. A similar orgaiii/ation of mutuals i3 in existence at the West, ami evidently in a itrospermis condition. rV./N.s iiiiitiinln : The success of the factory mutual system, and their uiiwiilmgness to write upon sume of the more ha/ardoiis classes of s[)ecial hazards, has led to the forma- ti(Mi (if a num!)er of mutual organizations foi stdf-protection in I lie several lines nf Itusim-ss. Among them, already ojH-ratiiig, are ; the Miller's Nat. Iiis. Soc. ; the Rublter Maiiufaelurer.s Mutual; the National nrnytjlstii .Yssooiatinn, and others projecttMl, all, except the first named, being of quite recent orgi lization. Time enough has not yet elajised to indie, lie what will Ite tlie eventual outcome of these several associations. Success or defeat will depend largtdy upon management, and whether enough business will be afforded to each venture to create a sufHciently broad average for the safety of the comjiauy. PARTICIPATION INSUKANCK. 93 I'AKTICIPATION INSUKANCE. *.y,tH, Till! leading foaturo of this plan in to accumulate (nun the inofita of the busiuesa a nurplun fund, represeiitcil hy Hcrip certiiu'ateH, bearing interest. The portion of the surpUis thus set apart representing ])rofit3 ctmnot be disposed of in dividends to siockholdcrd. As soon as the scrip issued to policy holders reaches an amount equal to the ca]>ital, all further surplus profits are to be applied to the redeiuptinii of scrip, iu the order of its issue. The right to jiarticipate in the profits does not constitute an insured a partner with the proprietors of the comijany. 336* The following is the plan for , DIVISION OF PROFITS. Parties holding policies ol this oonipnnv with tiii'MO provisions thereon ni.iv piirticipate in tlie net profits of ihe hiiniiie.^s ul the company, to llic exifhl of tlire«-fi»urtli», "' '■''<''"'^"'.V:/'''''/'C'" <^'-'"'- thereof, as hereinul'ter provided; except when the words " Tliis policy (lufn not entitle trie holder to piirficipafi' in the firnfitu," or woriis of similar import, are einlorsed on any jMlioy, u) whicli ca-ie the holder of such policy shall not be entitled to any such parlieipalion. FiusT — Within one month after tlie expiration of eanh year (iommen- ciiij^ irom l.-lot' , l.S — , tiie prortt^ of the husmeHs tor the year shull he apceriaineil, in onlor to divide and distrilmte the same to the coiiipany and jK)li<'ydioliiers aooordin^; to their respective interests tlierein. Tiiese protits shall he (lererniini^l in the followin;^ manner : — Interest at the rate of seven per cent, per annum, ujKm the capital, $.5(1(1, 0()(t, an.l iijion whatever amount of surjilu.s, not belonging to or set ai)art for policy or scrip-holders, and then renuiining undivided, i-hall be the first retained and set apart as the properly of the com[)Hny. The balance of interest received or accrued (hirin>^ the year on loans, including till' discounts on k.sst's paid l>elbre maturity, and the antount of premiuniii earned during such year fihall then be ascertained, and the saiu of these uhall be considered the grosp receipts. The general exijenses, taxes, losses, and the interest paid or payatde to scrip-holders, and all other lontinj^ent charges and liabilities, sliall be con- sidered gross expenses ; the gioss expenses b*'ing deduced from the gross recei|)ts ; the balance sjiall be cotisidered the profits of the business for the year, and this estimate shall tie binding and conclusive u(^ioi. all parties entitled to participate in said protits. SKroNi).- One-fourth of the ascertaineii profits ai- aforesaid shall be annually paid to the slockholderB iu cash, and three-fourths of the said 94 I'ARTlCIPATli'V ISSLTtANCE. priitit- HI) a-iccrtainril hIiuII U- •liviHisl lo |(olicy-holn ()" nin'cti.ir- (li«' biisnitv* ol eaili y«'ar mIihII w:ii rant lnU no Hcrip -li;ill lie i-.-iieil Tt any rrac-iional exi'v-'o nver everi five:, of dollar-', ImiI mti|i nmy he ififiiietl for three dullaro or four d<.>llar!<, in oiisc the ftnioiiiil u> wliicli u polit-y-h-jMer -hall l^e entitle«'fore any previous aniiual i-^-ue is reduocil, and all the niinuiil iMsueN are to [»■ eancele'l before tlie capital of the eoiu* pany, or any (lortion ihertH'f, -hail be jpplieable to mich losi^eH, anil llie Doai'd ol I)irectuii| scrip -hall exce"d /Vre //-/JK/r^/ Thousand Doliiir-, tin' Board of iJireitors shall therealler apply theexce«« of said fund, itniinally, towards the redemption of !>uch scrip, cfHninencmg with the earliest in date. NotiCf of the reilemplion ol the scrip -hall U- ;/i\en lor ten days, in two daily invv.-|iaper-. piiblisheier. may !«> is-un o( -uch scrip «liall be forfeited, and such amounts shall lie the property of the conipany. li.'iT. Till' other lomlitions >if the policy are the same u.s in th lu uidiiiiiry stock form. Thi.^ class of iusumiice w as iisiiii iiy hmi»,i'(i to the better chis.s of risk*, aw] tlu-ii only ;it }ireiiiiiiin.>j i.uiiio aiioiit ft II jior cent, alxjve the uou-jtartii;iitalin^' polii-ie.s. tiJiS. ttoiiio of the larc[e iinttiial mariue coiiipanies divide sori[> upon a Svimewhat siinii.ii jiLiu ; and in tin; af^i^'reoatc traiisai'tion.'* of a heavy .«ihipi>ino hc.i.se, the aimmnt of scrip thii.s eiuiicd fi''i|innlly reaches a larye sum, and it has liccu the custom for tilt! shipper to insure for the owuer aud retain the scrip as I hi, s penpiiHite. I'Kld'KTUAL INSUKANCK. «t'i !2:t!l. An airent of ii western riiilroiul cuinpany was ciiii.lciyod U) jMiiihiis ( i;iil.s in Knjiliuni, and -iliii) tlioni to this ooinitry. Till! i-.iv'ji) ;uri\etl sai't'lv : Iml in Hi'ttlenii^it ul" urrdiintsj betW'M'ii aycut an«l principal, llu' lattt-r was charL.'*''' \\ttli the insuraiici' jiK-jniuni in lull, wlii-icas llu; a^'cnt had ivcvivcfcl scrip tlividcnil.s niiun tlu^ iiisunincos uindunling to -i-.HOO, whitli wu.., clainifd \>\ thf principal, Iml rc.sisttjd l.y the agcut niHl(?r 11 rule t':^tal)lish».'d by the New York C'hainht r of Coniiucrct-. Till' Xew Vork (Jonuiiissinn ul' Appeals, however, held that " where insiiranci' seri]i is realized l>y an .li^iiil ujHJii tiMiisactioiis undeilakiiii fui' enijilcvers, it ixdimgcd to tlie jiiiihiidd, and is siiujily a repayment of an excessive rate of prciuium." (Minnesota li. H. Co. r. ■]. P. Mor. of New York city, in the year 1S33 (United States (Jazette, vol. 1", p. {."M-i, and was for nuiny vears jimetic. d by a nuiulier of I he New York eity hie (.'oinpaiiies, the nmst prominent of whii'h was the "Continental," which cciiiipany commi'neijd the issiu' of scrip in ISoT, and, in IHCiT, icd-i'iii- ed the issues of 18r»7 ami 1858 at par, and conliiiind to redeem the scrip oi' one or more year.-, annually, until the occuriviice of the (;hi(!ii<4o tire of 1871, when lla^ lo.-sfs of the comfiany, n-o'ne i^l,L'Ot),000, were paid entirely out of the scri]) accumulations and siir]dns, leaving the capital intact. Tin- h'MV) losses of tlie I'lo-toii \\r<\ 187-', scin to have put an enon tlui dcpositH is tlio annual proininm ; this low rate is ample evidtnioe of the voiy safe clmruetor of the risisit, as an indfinnity, rests entirely iipou the (Mniiulativo principle, as in lifn insurance, tlu! int(;re8t fiunii^hini,; the fnmls for expenses and losses ujntn the snjtposeil avi:ra<4e of nian> y(!ars at compoMnil interest. It is clieaper to the insnretl than term insuranee ; the cost to the iinderwrirer is nliiiut tlie sunie, tlKHijfh n.sually not adeijuatt^ at tlie eoinineune- nu'iit, except und(.'r uiin.*ually favorahle circniastanei^s ; luit it becomes remnnerative hy lenj,'th of time. T'pon oancellatit)n of the policy by the instired, the deposit was returned le.ss a deduction nf fire prr cent., whii^h was n';:rarded as a fee. If the cancellation be made ity the company, the deposit is returned in full. This has now l)een changed, requir- ing ii notice of intended can('ellation from ten to thirty days in advance, and the deduction now made is fen per cent. 'Hit. Permanent poliriex have been in use in I'hiladcjlphia for ahnost a century past, where very many of the buildings are insured in this niamnT. The first perpetual iiolicy i^ssue(l was from the office of Miitiial Assurance (Jo, {H>i') on SejitemlK-r 10, lyi'l. The riiiladeiphia ("ontributionship (7.H) did not issue these jjolicies until April, IHIO. The first stock office to issue perpetual policie.-* was the Americiin Fire, I'idladel|jhia, iVIarch 10, 1812. 21tla* The Instiram.'e Company of North America, The Insurance Company of the State of rennsylvania, Tlie Pennsyl- vania Insurance Company, the Franklin, and other lire ofhces of riiiladeiphia, cairy heavy lines of perpetual insurance. The Insurance Company of North America has adopted the practice of maintaining a bank credit equal at all times to its ]n^rpetual deposits. The Pennsylvania Insurance Keport of 1888 gives the following figures of perpetual business for that year: — Nineteim companies v rote S2(),716,;383 ; Deposit.s theroim $4nn,0(l0 : Losses paid Sl('2,2r)l»; Risks in force #oU4,HU3,ll53 ; Dejtosits held thereon iS7,504,tJ27. Some, if not all of the English companies having agencies in this country, insure perpetually. PKRl'KTUAL INSUUANCE. 07 !il I. rerjH'txal j)i)l ic'n:!< luv i.ssutMl nuly upon .selected risks — biick or sU»ii« biiiMini^s — ilwollin^s prefernnl, (»r iUHJUgr.iuml- iviils, luortj^figt!, or otlii'i- lii'iH uiioii mkIi proporty. .Frame buiMiii<;s are never so covered. In case of ti)t.al losn of tlie property ihe policy is thereby cmi- celled o:i piij'iiiciil of mich loss. In e;i,si'.s of parfial lois, \.\iv aniKuiit paid is dedudcd from the amount insiinsd, as in tenu policies : but the dej)oaits, or so much theniof us may be neces- sary to pay stioh ])arli;il loss, is .-^nnk for thf benefit of the company, that is, not lifiblfln l>e rep.iid on raiieellation. tJI5. While th(! Jorni of Iho body of the perpetual policy is not (i.^sentiidly dill'ei'ent from the ordiimry '^t/tek policy, it does vary essimtiiUly in several luuticulars, to meet the varying requisites of the contract. Thi-y are liriefly as follows: — Sec. 1. Hufcrs to the dt'iKwil, vviili [Kilicy ami survey fo« not lesu li.aa ilirt'e (lolliirn. Sec. 2. Survey of liuilii'tiii, if witli'm cniiveniciit ilistaime from tin- oifice, will be made by tlie compiuiy's furveyor If not convtnietit tu an aj^ent's o'Hoe, the nnrvpy i;* to be tnade liy a coinpetent person at the iimirvir-' expeii-c. ■' Siirli (mm^oii (■) iiiuki'oiuli or altiniialioi' lu tiie correclnPHs tliereipf, " nml must in; Hi^^ned by tho ujiplioaut. Sir. it. As to increase uf risl<, as m orliiinry p.iliciea. Stc. 4. As to title, etc., iiutlinliii^' aI.-o tlie iiiort)!agee clause, witlj 8ubroj;a- tioii as customary. (TJJS.) Sec- Tj. A^ lo ai*signMieiit or sale; must l)e riitticeil to tlw company, 'ir (ie|)osit money noi ili'iu.iiiileil witliin Hi.>cty .jays after s.ilf of ilie F\iliject of llie insuraii».e is consiiiered sunk {>>\ tlit henetii uf ilie company. Sec C As lo ihiratinn of policy; holder may caneel and reclaim do|)o.sit money within three days (sinoe changed), lews a deduction of five per cent, (now ten)- Sec- 7. Company may cancel at any lime, after giving thirty days* notice, and " the deposit money returned without deduction ui>oii surrender of the policy." Sec. ^. Where projierty un ier insurance sliall lie sold, the jwlicy to be void unless assigned to vendee at the execution of the deed, and brought to the otlice for approval within thirty days tlnreafter. The coiupany to appioM the a-signiiieiit or not, at their option; if nui approved, lliedeptjt-il to lie repaid as in sec. 7. Aasignmeut fm 50 cents. Sec. 9. In the event of death of the insured, the policy to be held by the executor or administrator in trust, for hoirs or devisees; provided that notice ia given within twelve mouths, with names of the heira 98 PKUPKllAL INSrUANCK. HHil (levi^Teo, winch ulinll I(P prxlormtl ii|kiii iIip jiolii'v, niiil a- in usHij2iiiin'iiiH, h«r. I'l, Aiiv iin»n,Miiii<'iil liv e.x«'i;uior ur ii.li'iiiiiNlriiior iniiNt |h' widi ciihi-t'iit ol iHTMuii" iiiiiiifd in niicIi ileclariiliiin Se<\ 10. Ctlier itiMiirai.rr \siiliTn|ifiny vvili repair sanifit'oiimicm-inu' within tuonly diiyB from tnne of notice; or if loAc \>e lei<.-* than aiiuuint iiiHiirt'd, witliiii thirty day-< < or it' tip to th(' amount iiifiired, within iiintiv day^ after tlie ninoiinl of loftM "hall have heen inutually ii^rerd ii|niti, or pay the eiliiii'iti'd vahie thereof, t?roand-rcnt, iiiortj;ftfie or otlicr lien«, locMeH paid in ninety dayx. ,'>)■<■ ['1. I'firtiul loHues; when paid for or rcpaiied, the pro|»rly renmin-' iiiider thf iiisiiraiii'i' tor tin' hahiiio'' "/(/// "I the oritrinal (•iiiii m-mred, and llif depo.'^it iiioney tor a// dama^ref* or loi-Hew paid or reiuiireil "hall be considered af) (iik for tlie h<'iietit of the coiiipany, an I in <'a.'>e of payment or re|iHir of total 'lainttj,'e or \o-f, the ["'iicy ^hall he -nrreii. dered for caiieellatiiii ,SVc 17. Buildings intended lo lie nicnpied oiherwiwe than aH pri\ate dvveiliiij.'H will rei)iiire:i Kiru'el'-iim to he depiiMiii i|, aeeofcliiii; lo the gnatoror le.«s hazard ol -neh i.i ciipani y ; this policy, therefore, will not he coii'-triied ti> cover any hiicIi inerea^ed ha^.nrd, nnless liherty bejfivcn therefor, utid indor^-'d on the (iiliey, in cutiforiiiity witli the fliihiiiiiK li cla.--'itii'iilioii of hazard.''. '2Hi. i'l'rjK'tuiil iiL^iiriiiicf deim.sil.s oi'iiixir In- diviilfil out in iiiiV rjliiipe ; tliL-y Illu^l In' iiivt'.' to rneot the sudden call — three days' tiotioo only — without heavy sacrdiee, *2\7» In this connection the Ainericaii Exdia^uje and ReiAeii} says : — "That withdrawable de|jo*it.i for perpetual fire-nskc — an incongruous union of the irisiirain'e and iru-^t busine.'^H — is wronir in principli', was long ago declared ; that an ollice is liable to !,« run up wisiliim, iiniv i>*^ rt-ailily conceived ; y»'t llic plan liik-< l>mll up some of till' ni'>!*l rf<|M'ctalile PliilaoM iliiwa mi.Jcr a j)ron|>t'ctiv(' ilf»iiiiii(| rocluiiiiint; pcr- |i«-tunl rpi>tual |H>Ii( \ IiuMiT'I not ln'iii>; "ecHiinlfii li.v 111 lierrt ; an 1 Hii till- licn'iiif.prc pnictinai mn'iiril) of the MyMteiii I- jjri-atly iiii'rii)iiii>i|, un.l wlial waii luTurt oonji.'' liirt- \h now tma." 8w Fowloi'-* lli-itorv til' liHiiraiioe in Philaili'IpliiH tor two centuries for a fill! cjesoriptioii ol IV-rpi'tiia! loHurahco. TIIK "INSTALIMKXT N'OTK" I'l.AN. JllH. Upon iliis j)l;in, farm propiTty, dwi-lliii^^s, ami private liariis III towns, ami Uu'ir coiitfntH, i-hiirchcs an3, are fovcreil I»y iiolioics rnniiin;^ fur five yoars, Tho pmiiiiim i.s divideii into I'lHial iintnial in Lallmt'iit..s, tho HrHtuf wlu'cli in paid in cash at Hk' time oF elFnotin^ tin* insiiranco, and tor tho ot iers there is oivi'ii u note of the insured, payable by inalalhuiMiti ia one, two, tliree, ami lour years resjicctively, from the first day of the tnoiiLh in whicli the applieatimi is taken, without interest. As th'j instaHnit'iits hecoine diu-, tlie insured is noiitiod by h'tter at least ten days in advance; hi; may iciiiit tlie instalhiient by mail or (ixpresa at the company's risk. Tfiejlreit year's ^•cmiuiii goes to the agent, as hw comv\isgion. The note is attached to a form of application, duly si^'iied !iy the insuretl, ami cuntaiuH the follovvini;, over liis signatun^ : — " If any inatallnieiit upon the pivmiiim sluill remain due and unpaiil thirty days, then the policy issued upon this application, in consideration of such installment, shall Ikj null and void unfil till' same is j^aid." *2U>. The followinj.; is the form of the note : ('I'lii- Secretary 's autliorizeil to iiuinber ihm NoU'.) I For V.ii-i'K Keoeivkd, In I'oliry No.. lialed the da>/ of. H— , iVvi(«i I tart and (',:nt.t, "H th( fii.ll dny of 18 , and Uidlars and Cents, on tliejirst day of 18 , uHthoutinttrtut and without any retitf whatever from nalmUion or appraisement law.i. Insured. Date Ill J 00 riir " INSTALI.MKNT NOTK l'I,AN. 9l1l!i« Till' fiillowinf^ is thu form of rtnu'ipt givoit by tho Agl'tlt to lilt' illSIII'lMl KMMt I [) or gn a)i]>liinti"nfor Insur.inic hy the iNHiHANrR Cdmi'^n* . i;/' on i>r<>})frly tn Ihr amount / I'rt'.nnitin as repreiented vn the Imrk nf Ihix receipt ; Alio, ]\il"lii'. thii. .dn;/ qf 18 Ji/eni. 3I1M)* Tlic fiillowing is tlio indorheiin'iit upuii tht; ii't'i'ipt us tliui't'iii ivlVni'd to ; ) oil liuvi' |iiiiii the Riirii of (I t'<>r lir'^t iiiHtiillini'iit ii[x)ii your }iri'iiiiiiiii, iiii'i for Policy aiiJ Survey Feo ; alwo ^.ivcn a iiuif of four .n«tftll!ii''iil>', iliic (i« follows : — 1 f due on llio i\Tht duy of IS $ " • " \H $ •« <* " IM I " " " IS You will ii'coiM' a printed Notice lietore eacli iiiHtHllinent f'alU diir, nnd will lie fiiiiiiflied with a Miiiik Knvelope duly diret:ted. iu wjiieli ynii can reinil l!ie u unt at the rifk of the (.'otiipaiiy. ])ci imi fail to l>e |iii'iii[)l in rciiiitliiig each installment. Ai/eni, Pal. *2.50. rhis is tho priiiciploof the B>tMu:li iind German jiolieies, which .irc iisiiiilly writtca for ten years, wiLh tho pretniiuua payiihk- iummilly, vithmi notes or inter«.i(. The agont gets two fill) yours' pri.'iniiims ,is his cunimis.sion.s, but hiis no iiilcrcst in thf subscqiii'ut premiums, wliich inii,si hv paiil at tlu' ulUce of the romf)nny. l!4»il. Iiisuranco \ipon the " instuUnunit tioto " plan was intro- dufcd by tlio late Ameriain Insurance ("oinjiany of Illinois, upon its rt.orgaiiization and nmioval from Krceport to Chicago, in 18(>9. ')n lanuiiry 1, 1884, the business of the American was transferrod to t!ie Home Insurance ("oiiipaiiy of New York, including the outstandint.: •' in.staihnent notes " of tho policy- huldcrs of the American, for the sum of ;iJ118,0(JU, cash, HTKAM-HOIIKU INHPBCTION ANU rNHrRANOE. 101 Mr. CharhiH Curru^r, S.-cn'tary of \\w Aiiutricati. iiSMutuiri),' tho |M>«ifiiiti of Scintiuv uf tlu' Kftini I>i'|»iirtnienl of tin llnii,-,, iit lis w. •stern liruncli nlluMi, (.!liicag(», a5!l. Ahoiit 1 870-71. Tlu- ('ontiiientul, of Ni w York city, BOt iisitU> tho Hum of SiriO.OOd fur thi' purposf of fxjrt'riiiHint- ing in this, tliuir " now " branch of tho businoHS, wliicli it still contitiUHs. filiitm The |K>i^u1iiiritioa att<'n'. l(«>;aliiy '-.J colU-otahility of tho noto, wlu'i'o payinent is rofinml. Tht Ai.. lican, havinij dune the luii^nst l)UHino.SM, i^^ frjund a.i one uf the partios tn most of tilt; suits. Sonic of tin' cases are horc c ! «!, (li.4.nt{iii ' '.(1 as favorahh' or uiifaxHtrnhle, it hoinq a ' ,utio*!abhj iK't (hat tho statu , if this tioto wuM tlu* ijUL'stion at iisuo in U'Mri\ cvorv case ; and that all ol •hf unriivorablc d(.'cisioiia wannu tht; Mu;luyuu Su])orior ( oiirt. FiiKorahli: AiinTiraii Ins. fo. r. Henley, fiO Ind. .'>15 ; Sutno < Ktink, (I^ Mo.7fi Sanu- c. Neul^rt'tT.S C Mo. J Sttiiie V. Rmitli, S. C. Ma. : Snine r. Coiiglo. S C Mich. lH7h ; Mitchell e. AiiU'rican Ihh. C.>., S. C. (ml. l-^T.'); Williams r. AILimy In^. <'n., I'J Mich. 4.'>I i ContininUi iv Boykiii, S. C. Pa. isHG ; WbII el al. v Hoinr Ins. Co., I< N. Y. 157; Uliickcriv r. Contiiiciital, N. Y., S. C. Ky.; Malihews n. Anurican Iiib. Co., S. Coin. Ohio ; ('aiilti*")!! ef nl. »• Continental Insurance Co., a. C Mich. 82. Tho, caso of Kuhlman, supra, wa.s a test ca.te for ;^5 cornfuiuies, before the ('ourt of Apjieals, iV'.brtiary 11, 1879, wheru tho notos were held valid. Viifaror'thle . Am. Ins. Co p. Cutler, S. C. Mich.; fame r. Woo.lruff, 34 Micli-i same c. Story, 1^ In.^. I.aw .tour. 6'Jl ; York c Am. Ins. Co., 30 Mich.) H Ins. Law Jour. J I. STKAM-HolI.KlJ IXSPKCTION .AND LN'SUHANCE. 354. SPK.vM-Huii.KR iN.siiK\NCE had its orijfiu in the necessity for coiieenlrated elTort to check the inimeiise los8 of life and property etui.stantly re.suKiug from the exi^losion of defective .steam-boilers, in nianufuoturing establi.shmeiii . and elsewhere, by meaua of some uniform .system of thorough 102 8TEAM-B0ILEK INSPECTION AND INSURANCE. exaDiiriJition hy skilled inspirators, whereby deficionmVa and iin|wrfecti{in8 couM he dotected, aud tatid reaults be thus prevented. tSft^ir. The present system is of compuratively recent introduction into the United States, though it has been in practical operation in England for many year'?. Its object is to furnish indemnity for, aud security against, steam-boiler explosions, so far as possible, by frequent critical I'xaniii' '- tions, by duly autluirized inspectors, of all steani-boik. s coverctl by the i>olicies of the company, and such others aa they may be called upon to ins[iect officially. These inspections have already brouuht to light some startling facts of vast importance, not only to the Roller In- surance ('(inipany, but to other uniierwriters covering upon maiuifiicturing establishnients using steam-boilers, also. The amount of carelessness aud incompetency revealed is really de- plorable. 2.">0. Rnilers declined liy these com]>anies after inspection are virtually "condemned"; and fire underwriters should insist upon " inspection certificates," in all cases wh.-re boilers are used u]'on premises under the protection of their policies. 2i5T. Til.' advantages of h(ydcv hisnranci'. are thus sum- marized in a .ScottisJi company's prospectus: 1, It ri duces the babilily of explosion to a minimum. 2 It acts as a (•Icck (Ui boiler attendants, 3. It prolongs the life of boilers by providing for their better management. 4. It greatly lest^ens the cost and fre()uency of repairs. 5. It relieves owners to a great extent of their res}ton.sibilities under the Employers' Liability Act. There are now two regularly organized Steam-Boiler Inspection and Insurance companies in the city of New Yi irk, and one in Canada. The certificates of the Inspectors of the companies are generally sought for by owners of mills and fai-tories when seeking tor hro insurances upon their premises, as they are valu(d)ie guides to the flcceptanc<> or rejection of such risks, and where such certificates are not otiered, it woidd be well for fire 1 STEAM-BOILER INSPECTION AND INSURANCE. 103 insnmnce cornpcanies writing iipoa manufacturing establishments to demand such " inspection ccrtijicatc " for every boiler iu use upon premises otfered for insurance ; and the applicatiou fur insurance should embrace this (lue.stioii, and a s])ecific answer, amounting to a warranty, should be required of every applicant. S6»SH. lu addition to many of the customary conditions of the Fire policy, the steam-boiler insurance contract usually stipulates .igainst liability, ec ept while the property covered is iu the actual care of and managed by the insured, and used iu the prosetHilion of his own business ; and against loss where the boiler covered by the policy is in charge of a person known to be incomp.'tent or negligent ; or from explosion caused by the burning of the hulUlinff or vessel containing the boiler ; or, in case the weight on the safety-valve, us approved by the inspec- tor, and specified in the aiiplicatiou to be pounds per sijuare inch, shall be exceeded; also that when any defect is discoveretl in a boiler, it shall not be used until thoroughly repaired and tested. 2«1»{^« Steam-boiler insurance, though not usually regarded as " other insurance," and as such entitled to contribute upon a loss where its policies may be found in contact with lire insurance, it might occur, nevertheless, in cases of boiler explosions, where fire ensues, thus entailing liability upon fire policies ciivering such boiler, that a policy of the Stenm-hoiler Insurance Couijxiiuj might be a co-insurer upon the damage to the "boiler and surrounding property;" and it might, under certain circumstances, alYeet the adjustment of the fire loss, especially wherecopiesof " all policies upon the risk " are called for; and as " the policy of insurance which the steam-hoiU'r company issues covers damage to l)oilers, buildings, stock, anil machinery, arising from explosion ; " and " should an expla sion or rupturt! occur, the company makes good all loss or damage (except by fire) to the boilers and surrounding property to the extent of the avwunt insured, it would seem that copies of any such iiolicics as may be in existeiun.' upon the projierty would be included in that stipulation; for when fire ensues after the explosion of a boiler, it is a delicate question to settle I(i4 PLATE GLASS INSt'RANCE. \vlieni the expln.sion loft off iiiul the tire began, nnd where the respective liainh'ties would be operative. It was jtist upon this point that, in 1879, the London, Out., Mutual Boiler Insurance Company refused to pay its pro rata siiare of the loss with co- insurers u])on the mill, which was caused by the explcsioii of a steam boiler in the Dominion I'aper Company's mill, which held its policy for §2000 on three pulp builers, $2Q0o on biiiliJings, 8liO00 on machinery, Sl'OOO on steam boilers, ?800 on rotary boiler, all against damage by explosion, with other insurances in onlinary fire odices. I'LATE CLASS I\SUI!A.\XR 3GO. The insurance of glass fionts of stores, show-cases, mirrors, etc., in dwellings is of comparatively modern date. The earliest known in Kngland was about a. r>. 1853. Thero are now a number of companies there writing this class of risks. In America, the earliest company (if which there is any reliable record was organized in I'biladclphia, a. d. 18()7. The Metropolitan I'late Glass Cnmpany was (trganized in 1874, the Fidel it} and Casualty Co., including breakage of plate glass, in 187t), and Lloyd's I'late Cla.ss Co. in 1882, all of New York city, and which are transacting quite an anujunt of business in this special line. The use of plate gla.ss is rapidly increasing, both in ([uantity and size. 201. The.'^e comj)anies, by the terms of their contract, " are not liable to make good any lo.>s or damage (to plate gla.ss) which may happen by, or in consequence of, any tire." Hence it might oc(;ur, as in steam boiliM- insurance ^25tt"), that both fire and plate gla.ss insurances might lie found upon the same lo.s3, and while the latter, by its terms, would not be liable to the insured, yet inasmuch a> the conditions uf the fire [lolicy make no exceptions in the matter of contribution from other companies of any kind, if covering upon tJic same risk, in the event of loss, there might be dillieulties and misunderstandings between the iwo classes of insurers and the insured which could be obviated by excepting plate gla.ss (!om panics wheu losses were caused by fire. TLVTE GLASS INSUIUNCE. 105 !!i03. Pliite glass is liable to injury fnjm varioun accidental causes, as well as wilful, as in cases of riot ; tln' I'arly (llcHinj^ Association has also been tlie cause of luunerous losses caused by dissatisiied employers of tlione declininj^ to join the asso- ciation. The ''blizzard" of 1SH8 destroyed hundreds of iilato gla>'.s in New York city. As to the msured, there is uo moral hazard, as there can be no gain to himself by wilfully Vjreuking his glass. Tlie American companies obviate this risk by replacing the glass and taking the salvage. In Kugland, how- ever, the practice is quite difterent. In cases of brenkage bids are obtiuned fri)in glaziers fur replacement, and when tliis is paid for the comii.my lias no further interest in the salvage. Sidoaye forms no small portion of the profits of a jilate-glass insurance company. It frequently occurs that the plate is simply cracked, leaving portions, which, if carefully removed, can be cut up info smaller sizes, and either used by the company on other occasions, or sold to dealers, while ^in.ill ])iece.s have a cash value. One company, wiihiii th(! writer's knowledge, has a standing contract for all broken i)late-gla.ss pieces that will cut into square>^ 6x6 inches. The insurance departments generally recognize this salvage as a cash asset, though the New York department has refused to so recognize it. !2<(3. Tlie rate of premium is dependent uixm the size and the location of the plate when in place. I'latcs in doors, from being constantly opened and shut, usually pay a higher rate than front or window plates; wiiile those of the latter not <"vera foot above the pavement, or in corner buildings with plates upon each side, are charged half per cent, extra. Also for plates set m metal frames, or secured with putty, by which the expansion and con- traction of the glass if prevented, many cracked [ilales arising from this cause. In very cold weatlier the gas inside of show windows heals the inner side, wiiile the outer side is at the sarue time very eold, causing an expansion and contraction of the plate, rendering it liable to shiver at the slightest sho(!k. 20t? then called " iniafjjinary " or expected ju'otits upon .some adventure wa.s coiiimon in Eiiiilaud and upon the Continent generally, ext^ept lu France, where insurances upon freight or profits expected were forbidden. (Emerigon, cliap. viii., § viii.) The earliest text writers upon in.surance ; Santerna, a. d. 1552, part 3, n. 40, 41 ; Stracca, a. d. 1558, glos.s. 6, II. 1, and after them Kocciis, A. I). 170.S, .Mugens, A. l). 1755, and others later, all agree that " profits," expected to ari.se from .•shipment." of good.s, may be lawi'ully made the subject of insurance. The Ordinance of Hamburg, A. i>. 1731, .says : *' Aspuratu'e is .'iIho allowed to bt- iiiiiiii- njion an e.xjjt'cti'd or iiitatritiary profit, upon ooiiuiii.«.sioii, against risk of tire, wiitor, and war, a.-- well a.- iijwn tiie ri.-c and tail of the priot'f of goods, t ic.'' (2 Magcns' E.««ayS 213.) t24Vla The ordinance of Amsteniam further states that " the maginary profit any one promi.s(\s himself on his inUirest in a airgu must be calned in the policy, with a description as to v.'hu/i goods the profit i.s expet't«;d to arise from." The right to insure " expected " or contingent profits has been INSUKANCE OK PHOFITS. 107 long sottlwil in England, and has received repeated and elaborate ConfiniKitidn. Marsb. Inn., cliapIV., § 1 ; 1 Arnould In3. 204, §§ t>2, 93 ; id. 2'J2, 5 101 ; ! Keiifs Ciiinni, JTo, iiud iiuthoritiea cited ; Eyre i'. Glover, 16 East. 218 ; Barclixy i'. C iisiiii, :.' Bast. 544 : King v. Glover, 2 Boa. A Pull. N. R. 206 . Pulimm v. Mercbftut lus. Co., Ti Met. Mass; French v. Iloim Ins. Co., 10 Pick. .Mass 'Ml. 265. Insuranee uj)on " expected " profits itri not covered by a simple insurance upon the goods from which they are expected to ari.se. The profits "expected" must he specifically named as the subject of the insurance with an agreed percent- age upon the sale ja-ice, as reipiired by the Ani.sterdani ordinance above cited (iltt'ia), and tlie goods must be owned or under the I'outrol of the party can-ying the piofit insurance. Lucena c Crawford. 2 Bos. & Puil N. R. 269, 315 ; Wright v. Polo. 1 Ad. & B. 025 , Wright 0. Sun Fire <.»Hice, 3 Nev. & Man. 819 ; WelU v. Phil, ins Co., 9 Serg. & it. 103 , Mblo c X. Ara F, I. Co., 1 .Sandf. iV, Y. 5.51 ; 3 Johni?. Gas. 3!) : Loomls t;. Shaw, 2 John.s. Gas, 36 ; Tom v. Smith, 3 Gaines V. Y. 245 ■, 3 Kent. 270 ; Civil Code \j. C. 2493, and authoritien cited , I Philip Ins. Um, § 345 ; td. 2:!9, ^ )•;!. ISSfi^a. Cornvim'ums to be earned upon sales of consigned goods ill the hands of factors and other bailees differ from «itht;r expected profits only in the fact thut the latter usually has refeivruic to ownt-rship of the property, while the former rcfiirs only to property "held in trust as on commission " for others. They are, like jirofits direct, insurable against loss by fire to the goods specitically as such ; but they are never covered by insurance, eitlier under the Usual Commission clause (1200, 1227 i. (ir directly upon the goods from the sales of which such commissions are expected to arise, and without a limil to the perct'utage thereon. See Amsterdam ordinance suj^ra, and authoiitiis cited above. (71<>.^ in a policy upon profits, or commissions to accrue upon certain specilied goods, the insurer undertakes that the}' sh.ill not be ])revented by the peril insured against. Such insurances are alwa\ s made upon a valuation (24Ha); hence in the event of loss it will not be necessary tt) show what profit would have accrued ; it is suilicient to show such interest and the loss thereof. Tf the lo.ss upon the goods l)e total, the loss uf ]iriifits Lhereou will bo total also ; but if a portion only of the goods be 108 INSURANCE OF PROFITS. loss, it constitiites a partial pro rata loss upon the interest covered by tln' profit insurance. C2H t. » t24i(t. Commissinns paid to factors on sales of consiQ;ned goods do nof, in aiiy manner, fc.rni a part of the coat of such ^onds to the owner, or consignor, fur they do not accrue until the ;.'oods have been sold and settled for liy the purchaser. Sales to un(ler^^ritors through the medium of a fire are not sales entitling the factors to commission.s thereon, except when such commissions fire spe 'fically covered by insurance at a definite percentan'c. The (Question of commissions, earned or unearned, unless cov- ered by in;oir,ince, is one in which the in--urer has uo interest; they are matters between the owner or coii.sitjnor .md consignee, and are jiaid out of the sale price of the goo'ls, which has been corres])ondingly increased to meet this charge. tJ06a. This question of commission forming a part of the market value of goods hehi by factors, and included in the insurance u])on the goods, had long been a source of trouble ln'tween conimission merchants and underwriters, but was filially settled, so far as court decisions cculd settle it, in the case of ivobbiiis & Appleton, sole agents of the Ami^ican Watch Co., V. the People's Fire, N. J. ; The Columbia Fire, N.Y. ; The Fireman's Fund. Cal., ami the Hamburg-Biemen, where the insurance was taken under the usual commission clause (ItiOO), covering tht! property of the Watch Co., and that of the agents as well, in une sum. The last-named coni]iany paid as for a total lo.ss, allowing for the agent's com- mi.ssion ; the other three companies refused to acknowledge any liability i'm eonimi.ssion.s, and were severally unanimously sus- tained bv the ijourts in which the suits were brought, to wit; The U, M. L. 0. Dist. N.J„ tlio Sii|) C. of New Y^rk, and the U. S. C. C. 80. Dist., N.Y., respectively. Rach court holding that the (laini lor cuinmi.ssions Uf»on the lost property as a part oft) le cost tiiep'of ' was without th" shadow of ne rit. The cases Were tried \. n. 1879 80. and tlie upjiortionnient of con- tribution was made hv each cou:t und-r the rule of compound policies, ("lass 1 1 (I80^»5^, in exactly the same amounts. I RENT AND LEXSK POLICIES. 109 207. Product pclicy, so-called, covering the profits expected to arise from contracts for goods to be manufactnrud and de- livereil within a stated period, where such didivtry may ho prevented by the occurrence of fire. This policy usually pru- vides thiit in case of the toUxI destruction of tlie mill or fiictory by wliich the manufacture of the goods is totally prevented, the company shall ])ay a certain amount named for each work- ing day that such pmduction shall be prevented ; in cases of partial destruction |ircventing a full average product, the com- pany shall pay j^er d;iy "that proportion of — dollars which the product so pnivented bears to the average daily yield prior to the fire," not exceeding in either case, in the aggregate, the amount of the policy. The loss to be computed from the day of occurrence of any fire up to the time when the null could, with ordinary diligence and dispatch, be repaired or rebuilt, and machinery replaced therein, and not to be limited to the day of expiration named in the policy. (272.) The daily liability is ascertained by dividing the amount of the policy by 300, the estimated number of working days in the year, Tiiere are. but few companies that carry this kind of risk now. 308. RENT AND LEASE POIJCIES. Cnaditiiinx of the policy: — "If the interest of the insured in the proiifrty be any other than tlie entire, unconditional and fclo owiurship of the prcjperty, fuv the le-e and henefit of the a.'-rtureii, * * ' it nun^l he 80 reprewented to tiie Goin|i!iny, and so exorewsed in the written part ot tiiia pohcy, oti>er\vi-honld not exci'c.d t/te annual rental at tin trmc of the daiaii/je hy fire. The rental at the time of the lire is evidence. Prrtrjklin F. L Co. v. Drake, 2 B, Moniop, Kv. 46; 2 Hpnnett's F I t'mes 98 » Coliiiiihiii Ins. Co. I!. Liiwreiico. 2 Pejers U. H. 25; OuiiiticrlHnd Nat Ins. ('o. v. Sclicll, 2!* Ponu. St. 31 ; LeonnrdH v I'lKetiix Assr (Jo. Loiui., 2 Rob. IvU. 132; 31 Me. 487 ; 3 Bi.'iiii.'tt'a P. 1- Cas«'S 4S»0 271. Where the amount insured i.s less than the aggregate annual rental, it is customaty to limit the liability of the com- pany by stipulating that the sum insured shall be taken as the yearly rental of the premises. 272. The liability of the oom])any is itmited to the time necessary to repair the partial danuige sustained, or iorihiiild in case of total destruction, tvithout reference to the v(due of the ])rop(!rty, and such time is to be computed from the day of the occurrence of l' c tire, without reference to the duraLiou or unexjiired terra of the policy, even should it expire by its terms the iiexL day after the loss. (267.) I27t'{. Die jiolicy of some (Mnipaniefi contains a co-in.^u ranee claii.-te, us follows . '' Tlii.s oiiiiipany fliall lie liatilc only tor Bucli ])ortioii of iiiiv Iosh a^ the HUm lnToby iiiHured bears totiie annual rental of the ImiMing." 274. In some policies again, when the rent continues to run on during the time of repairs, suhroyation is stqiulated fur, as it is the loss of rent that is to be made good ; if there be no actual loss there can be no liability (IH2I), as follows : — " Atul til'' ,«aid oompatiy shall he subfii(/i'tetl to any reiueily which the insured may have afrainp' aiiv teuani liable for rent duritig thf jxTiod of repair or restoration of the preniises, for their reimburseiiK'Qt," LEASEHOLD POLICIES. 27*5. The object of a leasehold pol'^y is to secure to the lessee of cert^ain specified property any difference in the value between the sura he may pay for the leased premises and the value of the property /or occupancy, either for his own pur- OrKNED AND VALUED POLICES. Ill poses, during the ciirrenoy of tho lenso, or in the increased amount which he may receive for the rents of the same from his tenants. Tlie h)nger the term, tho more vuhuihlo tlie lease; and aa it nmy l)o dctenninod at any moment hy the destruction of th»! ]ireiiuses by tire, the iinount, insureil sh(jnhl be tho vahie of the k'asi), or, in case a less amount is insured, thi^ iiolicy sliould be made subject to the co-insurance (dause. (^t47JI.) ii7il. The duration of the lease is made the hems of the i'liinirance contract. ()n its determination liy its terms, and in fact, hy veamn of th<' in'ril ivtured agaiiift, tlie policy becomes lial)le as for a total loss, sulicct, however, to an aj^reed pro rata deduction from the anu)unt insured fur each month expired up to the time of the lire, as an equivalent for the decreased value of the lease at the time of the injury; herein the lease policy differs from rental. • Should tho damage be but partial, and tho duration of the lease be unatVected thereby, the policy l)ecomos virtually a '' rent policy," and the insurer pays an agrueil monthly rental for tho tin»e required to put the premises in tenantable condition Uj^ain. A rent or lease policy has no refs?rence to the value of the buildinj^ as such, simply referring to its value for occu- 2?a?icy, that is, tho rental it yields. LEASEHOLD PROPEUTY. 277. C'indition of the policy . — " Or if the bulMing Htainls on leased gromiil, it \\\\\A be so represented to tlie ccunpsiny, anil so expresxeJ in the written piirt of the policy, otlier\vi«e the j)olicy shall be void." (47^, t.) a~H. Where the leasehold interest is upon a building erected by the lessee upon leased ground, the estimate iipou such build- m\: for insurance should be graduated for the time tho lease has to ruu. and to the conditions as to the disposal of the im- prijvements at the teiinination of the lease, as iu case of loss the estimate upon such a building would not be affected by any incidental disadvantages, such as the liability of removal, etc., the value for loss under insurance being predicated upon its Value as such building generally. (ti71>b, I7I7») IIJ WAdKR Ull (JAMlNt! TOMCIKS. Henco when;, by tliu tHrias of tlie loaso, tliu building in to bo reiiMvcd oil t'xpiriit.ioii, ii niiiy bf iiku'o inlviiiUagtHiiis tt» .sill to till' iiiidcrwiitttrj), (.'Viin ut a inw tigiirc, tliuu tu remove it. Fo»lp ft 111 V. SiirlTiatiftl ¥ A M. Inji Co., S (mi. ('. Musg. Hi M 133. ; 7 Ins. L.iw Jhiir H« ; I.vtominK F, I. To. <■ IJavea, II. S. S. (1 Ucl , IH77| 7 Iim. Law Jjiir. 41it (.-iWhf iJ7!>. A It'.'^.soe may bi' bound by the toim.H of bis lease to robuild, to rejiair or ii'jilacc tbc projjerty if daiuaj.;t'd by tiro during his tenancy ; when so liablf, his insurablti interest i.s to thi' amount of the loss of n-jwiring or n.'ltuilding, without rufervuce to the vahu! of (he uncxiurcd liiriu of the lea.so. A j)olicy i.shued to a le.s.see, u!)l<'.-)^ otliiTwisi' limited by its terms, will include all such interests as he may have, as such, in the safety of the [)roperty desoribeil, from loss or damage by fire. lm)ioriiil F. I. Co. V. M irrnv, V-' I'r.iti. St. Ill : 2 Ina. Law Jour fl7i> ; I,!»wr»Micfl r. yt. Marks F. I. Co. 41! BaVb. X V. AV.t ; Ma> Ins., *S). ( ItlodKOil, Law of Fire Ins. coiilruii.) :d70a« Valded Leasikuhl policiea. Le.s.?ees many times rent or lease jivenii&es for a fixed period, and the agreed rental is paid in advance for a year or term of years, and a j)oliey is issued valuing such interest and fixing the liat)ility of the insurer, at .such fractional ]iart of the sum in.sured as the unexpired term of the policy shall bear to the whole term thereof. Such policies areternutd " Leasehold decreasing valued plHisk\. II Casey, Pa. 28:i; Rumy .Mtg. Co. v. Ins. Co.. S. Jud, C. .Mass,, Nov., 1883. (-"78.) VALIIBD POLICY. OPKN AND VALUKl) POLTCIES. 113 JJ>HO. All policii'S are, iii their mil lire, uithor opoi or valuitil ; a ilistiiictiori rolatiuf^ snli^ly to thi- nioilo of ostiiiiiiLiuii ftiiil proving tlio iiiUireata of llu) insured in the ovout of lo.-ig under the policy. I Plii!i|n IiH. 21,5 27; I ArnoiiM Itii. ix, ,')0'» ; M it Ins. 6, 7; Park Ina. 103, 108. -tiij; Murili. liu. 19'J, et M^.; Civil Ooilu L, t'., § '^480. OPEN POLICY. U^il. An ()/n'ii, in contrailistinclion to a ralued policy, i.s one coutainuij^ no declaratii)ii uf Uie. uuKiiiiit of ilie interest of the iuHUied, and eonaeijuently ca-.ts upon liiiu the, burden of j«ro(jf of such interest where he claims an indeumity ; the value thereof beinj^ o^;en lo i lupdi'Tj and primf. I Arnoiilil Ins. Wt ; 1 Dnor Ins. 97; I Miirsli, Ins. 203 ; I Parsons Ina. '250; 3 Burr. 117ii, >/ .«.'/. us lo open Murine policies. The term ojuii policy is also applied to denote a contract which i.s kept open for now suhse,riptii)u.s, and additional amounts eiitcreil from time to time, as in open fire or running policies (^JIOSI), o[ieii transjxiit pulieies (lilO). VAl.UKD POLICY. 3.H2. A valued policy is one whcn-e the parties haviiur agreed upon the vy n scidn I miImi'iI poliry, the valuation in tlu^ono policy ci(MW nut liniit liiin as to tlic siini lie may recover on tho otliei " " It is not eiioui^li for tiiu untlcrwritci's on a particular policy to show (hat the as-turcd has rcc.ei\.il fniiii annthor quarter the iinioiint of tho valuation in thai pnlicy, unle.i.s thi.i oniounts, in pnint of fact, to complete imliManity." Lord FCII, .'tJ7. 2.SI. Ill tlic case of a partial los** iimlcr a valiw-il pdlicy the rule oi a|ipiii'Moiiiiit lit is : l\n- juiyrnlniiit of (lamaLfc .sustainoil hy tlir priiperty at risk is first ascertained, and th.' insurer will pay the same ratio ol ptn'ccntLUje upon ilie a;,'n'ed insured value of th' property 1 Arniiiild 315 ; Hopkiiig .Mikr. In;<. '.'.M ; Dia-r ln«. '.'7 Manli. Ins. 203. I'luk Ins, 10-^, 111 ; 2N l;i. The estimate which the insured has placed upon hia property must l)i> accepted hythe underwriters, either in express terms in the policy, or by making the apiilii'atinn, containing such rnh.nt(ii)ii, a part of the policy; or liy some clause therein recogni/iii^' iIik necessity of a valaatiuu, beforo it will bind the insurer. i2>H>i« Thi. I'lihii'il poliry not only estimates the value of the property cnvered l)y the insurance, but also valui's the loss; it is eiiuivalent to an as.ses.sment of dainaj,'es in niiticipalion of a lo.'iS. The value, Ijeing detinitely li.xed by the terms of the policy, cannot be (lUesticjtiod except, as already intimated, in the case of fraudulent over- valuation of the sub,jects or interc'^t at; risk ; and to bo valid as a tli-fcnce, such over-valuation must be unquestionably apparent. The onus nf piuvin^ the value is U])oi'. th.' insurer, when made a question. The v.dued form of policy is seldom used in lire insurance, but enters largely into the marine branch. The words '' vidned ar' are tin? usual criterion of a valued policy. W.AGKIi on GAVnvr- i> w. 115 ;'"■"; '"I-- ....... In,,.-;, "1 ':::;;""•" ;"-'■" "-«, M,.vert """'■"»'■ ■' "»■■'- »■ ,,,;;■'■' '"", "'"""• "' f-m'; 1 Arii„i,l,l In, n .„ ■'""-""« omstnioj ■'■■ S —.1, a„.l oa, I „.'""■'■'' '"' "■■ ■■'""«.-. i.; '"I'l>-."".«ufa„j. „f ,,„. ,„i., ' " ™"'"'' - !'»>, I.y ti.e )«'")• m«„i„„llv i„.s,„,.,l I "- '^ *'■•■•■"-''. <•• «;,i,:l, ,„„ '. i 1, Will, n,^„ ^,j ,.,,,, ,^..'"" ,; ' ■ 1 Ma>r,n, r.^, ^ , no LONG-TKUM I'OMCIKS. policy, " " without benelit of .salvagu to the underwriters," "the liolii^y to be deemed sudicient proof of interest in case of loss," or others i;i]uivnlent, — all iiDporLing that the policy shall be held responsible in ca.sc of loss, thotigh the insured have no insurable interest in tlie jivopi.'rty. (I Arnouhl Ina. 276.) Emeuioon (page 4) says of vager insurances : — " I'rovidfil tlifir olijii'l invulvtv^ iidl'iitig ■li-lioiif^t, aiiJ lliere is iicitlier fraiul nor Ksirprisc, wi'i/<:rx are in tlicmsei\Cfi hiwlul ; iiml being so, why is il iliiii till' I'l'iliuif 01 (rliijiM ifi i:ol uioiv ^1.111'niiiv alloweil to be vu\- bniced by ilicni? Tlie rea.son is tiiat navi^^iition has been viewed as & niaiter intere?=liii{.' the ptate. It if ric.it to be borne, therefore, tliat one should filftoe liiniself in a fitnalum to de.sire the bj8,-j of a vessel. 'J he areeilint.vg of gain it; capalile of producinc; criine.s which it is iJe.sirable t<.i prevent. Heiice, tiie cau'^e llmt. in must cuniinenial plaue^'. tciij/'.r iii.'Hir- iinces have been prohihited." 2H71>. W(i.(jrr or gurinng policies nri;, upon general ]irin- eiph'.'s, I'i/id m liiw as against public policy, and tending to oretite an interest in the occurrence of a loss where none exists for its prevention. (8 Kent. Conini. 27G-7.) Q'he question whether a po]i(-y is a wager or not de})ends upou llie wholt' insti'unu'nl. To be .-dUcIi it must ii})pcar to be .■>ucli u])on its face. In a suit at luw ihe decision is a quesiinii fur tlie couit. I.OXC-TFIJM roLICIES. 2.H.H. All policies having more tlian one year to run are disii^iiated as " term pijii(l<.i." The custom of insuring for a uuinbt'r uf years in one jjoiicy is co-exislent with the rise of tire insurance. The Fire n^/icc of London, a, D. IGHd, ihe lirsl joint-slu'k oilice d-I), and cnutiiiiiig itself to build- ings only — upon the yearly nnital of '.vhuh, and not u[ion the f'o/dt' of the property, the premium rate was computed — issued long term policies up to ."'l years, at corresponding reduced rates, when paid cash in ad\an(;e, as comimred with the multi- ples of the anuuul preauuius. A jjoliey covering XIUO upon LONG-TERM POLICIES. 117 brick or stono buildings — timber buildings double rate — was writteu for : Jt p. L). 1 year, 5 7 years, o nnnnals, 1 5 II " 7 " 1 15 21 "10 " 2 10 ;U '« 11 « '2 15 enual to about $0.25 per $100. 1.25 " " " 1.75 " " " " 2.50 " '' " " 2.75 " " Lo.ases to he (mid as oflnn as the lion'o Ip" burnt ilowri or deiuolishoii with- in the term insiircl ; nr, if iliiinageil, to be repaired. This office in A. n. 1700 reduced its rates in consequence of conipetitiou, and its terni-^ of duration to 7 years at 6 annual rates. The present long-term rates in England are : P'or 2 year,J, 2 annual rates le88 2j p.e. difct. or $1.95 per flOO 3 " ■', " " " 5 " " 2.85 " " 4 " 4 " " «' 7i " " 3.70 " " 5 " 5 " '' " 10 " " 450 " " 6 " (', '< " " 12 " " G.2S " •' 7 " (> " " " net '• " 6.00 '' " a,S!>. Til.' first: New York Company, the Mutual. \. D 1787, issued policies niidcr seven cla.s.sos of risks, up to 7 years, at preuiiuius varying from 3 shillings for one year u]) to 10 shillings for 7 years, with an additional deposit of four to one cf the premiums, upon each .£100 of insurance. On Aug. (i, 1819, a committee of The Salaiii'i.nder Socitfi/of New York (the original of tlie New York Board of Fire Under- writers) made the fuUowing report to the Society upon the subject of long-term policies ; the report was addjjtcd. " Yi.ur coiniiiitt.H ai.'' al.'^o of the- opinion that llie deductiou made for insurance for longer periods ilian one year is not s\ifHcient ; by the present mode the in.'^ureil pay.-i more than the annual preniiuni will amount to if compoi. iiilt'd fur (he .*(I0. The coin- inittee therefore recommend that the following diHcounts be allowed, which are, fractions inclmied. in conformity with the above principle ; For 2 years, 2 annuals less ;!^ p.c. 3 " A " « 7 '• 4 « 4 " " !M " F'oi 5 years, 5 annuals, less 12^ pc. 7 " 7 " " \7h " In the same year, ] 819, the /Etna Fire adopted a srulu of long-term ratea making the discount fnjm annual rates 3, 0, 8, 10 and \2 \iv.i cent, for 2, o, -l-, 5 and 6 years jiolicies, and 6 annuals for 7 years, which approximates closel}' ^o the English rates aliove cited. a^<5>n^ About 1859 -GO, the now very common practice of Mritiiig three years ])nlic,ies for two annual premium?, atul live years for three annuals, came into vogue in the United States. The "Farm Companies" tariflF, accepted hy the National Board of Fire Underwriters, Nov., 1872, upon frame dwellings in the State was, one year, 40 cents ; two years, HO cents ; three years, 75 cents; four years, 90 cents; five years, $1.15. SOO* In Canada, term policies are limited by the Statutory Conditions of Ontario to a maximum Ummu of 5 vears for mutual companies and 3 years for others (ch. 101, 'jS ,"2, 75). The Underwritens Association permit three yeais jMjlicies to Ikj written only upon certain specified classes of risks, mIuIo many risks formerly written fur tliree years are now resti'icted to annual policies only. SiOl* Many stock eomjianies in the larger cities now write term risks freely upon store buildings in blocks and on contents, at rates formerly charged on detached dwellings ; atid terin risks upon manufacturing hazanis, at correspomling rates, are now common among stock offices to meet competition by the " Factory Mutuals." As ddaclfid ImihUrujd me liable only for their own dejirecia- tions and hazards, they may, so far, be safe to write ujion for a teiTO of years, if thr rate he made (uleqv ate, and. is ajyportioved vith regard to the annual prevrl II ii> vn sv<, many of the extensive woolen and cotton mills of the Eiist are much better hazards for terra risks than any store building or contents in cities can possibly be ; and, being usually isolated, and exposed only by their own hazards, they may be fit subjects for term policies. 2iy2. While, as a business principle, it may bo judicious to make rebates in rates of premium paid in advance for insurance upon an}' desirable chiss of property, sucli rebate shouhl be in the ratio of the pn:>ienf value of ihci money when received, but, under the present rule, the excessive deductions allowed from the aggregate annual rate is a simple acknowledgment that such aiuiual rale is largely in excess of the value of the lui/ard. The actual dilference in the results betwe(:n single year and longer term policies at pi-esent rates is scarcely realiztid by the officials of our companies, or the practice would be speedily amended. The following fornnda will exhibit the rebate made upon a tliree ycuirs and a five years jiolicy, as compared with a single year [lolicy. Sup])osed annual premium -^lOO, les-i com- missions, intiu'est at 6 per cent, compounded. The ratios being two annual^ for three years and thrje annuals for five years: — D.KTE. Premhim and Interest .Ian. 1. 1888 . Dec. 31, " . .Ian. 1. 188'J . Dec. HI, " . .Ian. 1.1^*00. Doc ;u. " . Jan. 1. 1891 . Dec. ;u, " . Jan. 1. 1S;)2. Deo. 31, " . • i.\iiui\int C'f pioniuni • llntiTi'si I year I l*]arneil l^t yinr .'.Pifiiiiiiin jiiii'l 2<1 year , IrittTcfli 1 veiir I I Karncd 2il year, .Preiiiiuni paid 3ii year.. .jlnliTest 1 year i Earned 3d year I 337.46 .iPreniiiini paid Itli yeiir | 100. (tO ! Interest I year \ '2t>.84 Pktntd Ith year ! 4G4..30 Premium piiid 5tli year 100.00 InU'res! 1 _\ ear 33.8(1 Earned .'iih vear 120 LONG-TERM POLICIES. From this table proceed tlic following results: — $100, in anniin! piiyineiits, enriifl in 3 vears $.'<.'{7.46 $100 in a single payment " " 2:S8.20 , Difference ill favor of annual jiayinents J9!) 26 $100 in annual piurnent8 eariif in 5 years $.>;iS.16 $100 in a single iMiyment earns in o yearn 401.46 Difference in favor of annual j)aynient.s Jl'.'li.TO The preoent value $.i:i7.4(i (.'> annual payinenl.'') ii? $2fS.'l.;H Sum received in single payment for ii years 2;<8.20 Loss to company #45.14 Present value of$';")!t8.i:{ (5 aniiii.-il payniciit>) is $147.01 Sum receised in siiigle payment lor 5 years 4.40 This estimate will be somewlmt moililieil by the difl'erence in the eii;)>enses utteiiding the various classes uf policies, and by the hability o.^ the risks U) burn the first or subsequent years, in which event the premium earned would be hirger in the long- term tlum ill the annual jiolicy. It i.s estimated that to make 3 years policies better than annuals in tht> matter of losses, some 60 )ier cent, of all losses must occur in the first year: while in the third year the chances favor annual policy some 40 jier cent. In 5 years policies, an average of some 40 per cent, must occur within the first two } ears ; in the third year the chances are about equal ; while in the fourth and fifth years, the chances faviir the annuals about oO per cent, on the avcrege. t21Ki. Ina.smuch as insurance companies are also "money loaiuM's " for a considt;ration, the aluivt- results show a rather high rate to pay for money to loan at 5 per cent, or less. The comlitioii of the " long-term " business of the country, a.s gathered from the returns of twenty leading home ollices and ten foreign branches, for the last 13 years, ISTo to 18S8, inclu- sive, shows that, while the aggn gate writing of the .30 othces has increased over those of 1S75 about $1:1,000,000 (with a decrease in rate of 10 cents per SlOO), of which increase 72.6 per cent, was annual business ; 20 per cent, was three years, and 07.4 jier cent, was live years ; the aggregate 3 years bnsines.s shows an actual de<;reave of 02.4 per cent, in the writing, with fi,?*:*^' SHORT INSURANCE. 121 a decrease of 21 cents per $100 in premium rate ; and the 5 years writing for the same period shows an increuse of but 01.6 per <;eut., with a decrease in rate of 25 cents per SI 00. All evidences that the Hre insurance business is not rushing to ruin through the instrumentality of term insurances, per se, as many lire underwriters are pronu to believe ; nevertheless, 27.1 jier cent, of the aggre»^ate business of thirty leading ollices of the country is a large proportion to be locked up in the kinds of hazards now foiitid covered by long-term insurances at pre- sent rates. SHOUT INSUKA.NCE. 2!>-l. Short rates are, by usage among fire underwriters, always chargeable upon jiolicies issued for terms less than one year, — techiucally termed, -'short insurance." The labor and expense in issuing a policy for five days are as great as for five years ; and as in long term insurances a reduction of rate is made, so in short insurances a corresponding increase is charged. *2Uii. Short insurance is customarily called for upon goods which are expected to be hehl but for limited periods of time, such as the staples, c(»tton, wool, grain, etc., stored in ware- houses, usually under open fire jiolicies for short ])eriods ; or for " time uudeclau-d " (.HlWa), that is until rt-movoil, when the accrued premium is estimated for the term at risk at short rates. :2!M». Nf)t unfrequently policies are issued to large estab- lislanents for one year, covering subjects in quantities, with the understanding that the policy may be canceled when the pro- perty has been disposetl of within the year, at the customary short, rate for the ex])ired time. ti1>7. Sometimes merchants having a full average line of annual insurance upon their stock, will, when making heavy additional purchases for the season, takt; short Insurance upon such excess sufticient to covi-r any ht.ss thereon before such excess may have been fully disposed of. So also, in large manufacturing establishments, where short insurance is wanted ?^ 122 SHORT INSURANCE. upon an extra lieavy stock, made up in anticipation of the busino.ss season. Pork-packers, especially, requir>i luMvy lines of short insurance during the packing season, and until the pro- duct can be disposed of. a!>.S. Short insurance upon buildings is, upon gejieral principles of inexi)odieni',y, usually discouraged by fire under- writers. There will, however, fre'iueutly be ex.^eptional cases where such insurance may not only be priiden!, but ilesiralde, when the parries and atten lant circunistan(;es are well known, apx-i ill)/ loh'iii Umed to the owner; !):it when in ele to a con- tractor, witlia losin,:,' contract on hand, more cireiimvi.er(,i,)n will be ui'edfid. a!M». In all ca^es of short in-:uran'>?s. out of the customary routine of short business, the moral hazirl should be unim])each- able,and the reasons for wanting a short policy should be satisfac- factory to tlie un.h-rwriter. "Fraudulent insurance is designed to inatuve early " (Walford). Experience has demonstrated that many suspicious, as well as well-known dishon-'st losses have occurred under shirt term policies, evidently taken out with such intent. (14.S5.) :$0mium was formerly calculated l)y the short rate tabln for days, \iz. : if over two days and less than five, charge as lor five ; if over five and less tliaii ten, charge as for ten; and so on up to one uiiuth, but eager competition has devised a table now gcuierally used, for any given number of days. See Short liate Table.s, infra. »1M. White it is customary and equitable to charge short rates on all policies when cin>d:d by the insured l)efore expii itioii, tliere are cas"s where usage permits j>ro rata rateg to prevail , as when one policy is canceled to issu" anotiier in its stead upon the s ime subject, in whole or in part ; or when it may be desiral)le that several policies of varying dates should exjiire at a given uniform date. IWfii. Tlie effect of issuing short policies at pro rata rates is equivalent to a reduction of some thirty per cent., and is in fact retailing goods at wholesale pric.;s. It is the better plan when CERTIFICATES OF INSURANCE. 123 ■writint^ a short ri^k, to be rciiowtMl at expiration for a year, to write I tat short rate, and on roiiewul at annual rate niiike allow- ance for the difference of previous rate ; then if the risk is not obtained for renewal, the full rate will have been obtained for the time at risk. CEirriFTCATES <.)1'" INSURANCE. 30:t* Certrfirotes of Ininirance in the fire branch are chiefly in use among heiivy cotton, grain, and other siuiilar dealers, and serve as collaterals for ac'vances by l)anks upon the proi)erty covered, in lieu of the policy itself. It not unfrequently occurs that certificates are issued referring to a ])oli('y niiiuber as if issued, though no such instrument has ever been issued. In such cases tiie law holds that " the rc'ference in the certiticate to the ]iartic\ilar number of a policy, alth ongii no such policy was in existence, made th« terms and conditions of [)olicics issued V)y the insurer in like cases a part of the contract, and that such policies were admissible to explain the meaning of tlu.' contract," Home Ins. Co. v. Fiivorito, S. C. 111. 203 ; llawke i-. Niagara D M. F. I. Co., 23 Grant 189. In the case of T'nderwriteis' Agency ir Sntherlin, 4G dw. 0.52, it was held tliat no recovery could be had without proiliicing the policy referred to. Ji04. Tla^ ))ractice of issuing tin- certificates grew out of a desire to aid merchants in obtaining ailvances u])on goods, the certificates to l)e used as collateral security, like bills of lading. Ibit of late years, in tiie hands of agent.s, it has ]iasscd to far different uses, and many abusvs have s^jrung uj), and not a few frauds have been practiced upon insurance oflices, as, by the system of making them payaltle to "hearer," many different owners may be insined without the company knowing who may be the insured until a claim is made. Of course in this way ob)ectionn1)h' parties frequently got possession of these certifi- cates. The nujre recent forms of the certificate contain the name of the party actually msured under the jiolicy referred to, and the losses, if any, are to be adjusted only with the party so named in the certificate. 9 ^mamm VARIOUS FORMS OF THE POLICY. !f05* The various fontM of tin; policy, without regard to the subject written upon, niiiy l)e classitied as of two kinds, speci fir, or /ixed, and i:om.po'' i>( I or collertire. And the>,e a^'aiii may be concurrent or non-concurrent upon the .same risks. (J{47.) These forms may also be fiirllicr controlled or modified by the pro rata claiian, in one or another of its several forms. (IlSJi.) SPECIFIC POLICIES. ilOli. Si'RCii'ic or FiXEU insurance is of two kinds, differing only ill Ui i nxaimer in which the respective amounts are .ascer- taiuiible; but once ascertained, subjiHit to the same rules of adjustment in cases of loss. (210JI.) Flrd . — Policies ftpecific in form ; covering only specifically nuu'd subjects, in fixed sums upou each, in specified localities and for specified insurers, as . — Company A. Whi'iit $1,000 " ' ]{. Fioiir 1,000 The several sums covered upon each subject being thna fixed, the contributivo liability of each policy with coinsurers, if auv, is definitely .settled in advance at those respective sums. (3070.) Ii07. Seconil : — Specific ■'^uhject,^ in comi)ound policies, non- concurrent with coinsurers, if any, though the policy covers other subjects that are concurrent with such coinsurers, as; — Coiii|iaMy A Wheat. .$1,000 n. Wliciit ami Flour 1.000 Ilerefiour is the specific subject of the compound policy B, the insumiico U|»on wliicb may be any propoition, or the whole of the itfl, out), co\ering upon both whi^at and flour, as the loss may require to indemnify the insured. (U07I.) Specific policies, as termed iu the United States ami iu i OPEN FIRE OK liUNNlNG rOLlCY. 125 Canada, diller wicloly from tlio specified policy in English practice, and the one should not be confounded with the uliier. iiO.S. A Hpecijicd policy in Knglish practice is any policy covering one or more subjects in a single locality, but not subject to average. As coTupavod with American jmictice it maybe literally specilic (JlOi]uisiti'.i of a viilid policy, Uiiikir tliis form of policy i> i.s optional with thii ooiiipiui) lo accept or iledino the risk. t>ncni, iHc, Ilia. Co. v. Wright, 2:t llow. 401 j Sim ha. Co. i: Wright, 'Mi How. 412: Klwi'll I'. Crocltcr, 4 Uosw. N. Y. ii; Ij^wrcnce v. McCn'ndy, (I Hosw. 'i'i'J; 1 (*liili|is lii!(. '.TiS, 5 304 ; 4 Ills. I-iiw Juiir. (i8:t ; Alunay i>. lU-eil, llurmoiiy Ins. Co., N. Y. S. 0. .H lUrt). JIIO. Notice of shipiiK'nt ami of loss of sncli sliipmont receivtHl at the same time eauiiot he entered niidtU' the terms of the ordinary form of open fire policy. Hut it is customary, by special agreement, to allow a privile;,'o, or delay, of twenty-fonr hums In the insured within which to make such entries — provided no d.imiij,'!! has occurred to the shi])ment meanwhile — to enable limi to cover any jiroperty received or .shipped too late for entry on that day, which property might otherwise lemuui uncovered by insurance. (JUT.) an. TItc. Underivnterii Pnlic>f is the ordinary running policv made by the company in tiu; name of its local ai^ent, with the desiLju that he should ivtain the custody of the instru- ment, and enter insurances thereon in favor of third parties by issuing to them certificates (JiOIl) corresponding with the facts as entered ujton the agent's open pnlicy, Richmonl /. .ViagniiiF. I. Co., C. \. .\. V, Uvc, VO . 9 Ins. I^hw Jour., IT. llt'2. Kndor.sement.s upon open policies .should, for safety of the companies, be made daily, as a ruU', In ijuestions of the liability of the insurer under open tire [)olicies, and entries made or agreed to be made, it is hekl that " where the insured is not liable for the premium, the underwriter is n^t liable for loss." This is an insurance axiom, and will work in any case. TTfE TlJANSTOirr TOIJCY. INLAND TRANSPOKTATION. JtlJl. The great inland commerce of the country gives occasion for a |)roportionate business of insuvance on risk.s, differing very con-sideraldy from those of tire or of maritime navigation, and iiccordingly demanding modified forms of the insurance contract. (.1 l^hilips Ins, 36, ^00.; TRANSpnuT POLICY. 127 Thn oiii'li(iHt iioliot! we j/et of pnlicieH of tlii^ clnss is in tlio InminiDce i)i-<1lnanci: of the citif of Anisteri, to .already laden or ) el lu im iaered as t'ollowfl, , whereol we, by these, take tlie risk for our account, to run from the 128 TKANSPOUT POI.Icr. Iiuiir aixl t> clt'livrrod ami liroii(rl>t to tin- fMiHt-ntliiP. wu){uii, Niijp, or (itlitT plui;e-< where it in umuuI to rec^eive the Hiiiil ;.'iHiil.-i t'lir thi- III."'!!-!'!! ih'si;,'!!, iiii'l lliui h»' iiiHilc to ii|i|it'ur lo u» ; nuii Mhiill coiiiimu' till whiil !■< iii-iiml "hull lif ii« uliov*- iirnvi'd itt , ati«- sion i<( till' iiiMiircil, hi>< tiicinr, or to wiiorii it ix ooh«iu'iii'(l. Ami the idiiircil isliiill hfoil to fxhihii no t'lii'tht'i' nor oilur proof ot' propi-rlv or viiliie I hull only ihi-< huif policy with which we, in chhc of Hvcru^je, or diiiiii^'' , t'litircly ', and xchhcN may he ti^t'd atn! oinplovccj to fonviird the voya/e. a-, accordini; to circnniMtiincen of time, hy the insured or any other, -hall ht'jiid;ied projier for thcj^reater ht'iielil and .-security ot thu j{(.Kids itiMireil ; aiithori/injr ihi'in iheri'to, Hpecially hy these prune ti tn ; an aUo to lend a hand to the savinf; and hcnclilin^ o( the waid ({oods, to sell Iheiii and to diHtrilmte the nioneyH in ca^e I'l' iieci"..-?en incurred on that iiocounl, moreover the dama;.V fnlleii ihcrei.n, whether anylhiiiL' he naved or ii'it; and hclief shall he fiivcii to the a(M((nni of chiir^^en on the oath of hini who nhall have taken the -aine, without alh^'in;i; anylliiii); ajjaiiiMt it ; thi' -^iii I ri^-k lonilst- in^'of all perils hy water and hy Ian I, I in pests, tire, and «iml. arrests hy friends an I enemies. i|iicnt:on- hy kiniis, i|ii"en-', jirinceH, lords, and repiih- lice, haters of mart ami contiuinart, villainies, and ne>;ligetice of the |io(». tillions, M ivants of the olhi'e, waiters, -ailors, waL't'oiierd, inii-kee|iei's, liillets of loi|;^in;.', parties, rolihei;! and thieves, and all nlher perils and advcn|nrl^^ which anyways mijrht he all the said ^'ood-, heard of and unheard of, Ufiial find iiniisiial, noiieexcepted ; piitlinj: iis, in all such cases, in the place of the insured, to indemnify hiin I'orall losses ami damai^e which ho shall have hiiI- fered, each in proportion to hi^ mini underwriiteii, the rir.-t as well as the last insurer to pay within three months after we rijiali have received the iioticfl of the lo«s or damage, to the insured, or to his attorney, without any ilediiclion ; provided in ready cash he paid ns, for the consider. ilion of ihiw insiirunco fit'r liundrtd, under ohiij^aticm and snhmission of our persons and goods present and to come; renouncing as jiersons of honor ail caviln and exception- contrary ti these presents, reciprocally suhmiU'iifr all dillerences which might arise concerniii}; the damages and preniinnv' t: the decision of the chaml er of nisuratioe and Bveragct of the city ; chix)niiig, in case of our d'velling out of the jurisdiction of tiio same, for ■!. !■;'■ ■limn ritaiii/i et ti tor tlie lime being Done at Amsterdam, etc. 2 Magcn.-: K'ssays lii'A, 251, flanibiirg form ; 420, Bilboa form. tll»5. Tlu; Koyal JiXchanyc of Loiulon wrote Iiilaiid Xiivio;a- tioti jiolicies as early as .\, p. 1801, In tli'! rnitcKl Stiitt.'s most uf our fire insurance companies })0ssess inland jirivilcf't^s — chap. 4iJG N. Y. General Fire Iiiaurauce Act, 1853 — while TIIK ('I'RN CONTKACT POLICY, 129 nmny liiuc tlir piivilo^i' by cluirtcr. C. V. Siljlmnl, ii lnokor, b'l. Wluirvcs, I'liiliuhtliiliia, wroU? iiilaiid iiuvigiili.in pnlii'ios in 1S'J4. Ill this onuntry Inland tntnujtortatlon I'olioios are (if two kituls, viz.: Oyx.-/*, iiiul i ontvavl. 1. o|'I;n TltANsruRT POLICY. !ilU. Tlic up' 11. tfanHimrf yxiZ/cy Im tin- rnuntcrjiiivt: nfilu' open jii'e pnikcji ^'MWV , lIu; only ditlc'ivnco being thai this lutUT CdViM's ijootlHul rant against tii't' i>nly, whih' the foiim-r iiintects tlu'tn ilnr'nii/ tnmsit f'ruiii jiliu'c to place, not only aj^'aiiist lire, but all oihcr danj^'i'is ul' tiMii-«i)oMati'in, as (liinm<,'i'.«j l)y water, theft, etc., etc., iiindilieil only by the lial)ilities of the suveriil lines iif tian.s|i()rtation as eoinmon carriers, to which the in.surers wonlil 111! sMt>rcp;j;atc(l in case of lo<y the custom^, controlling the open tire policy. The aj,'eiit may I'liJorse or refuse to endorse any .shiimient rejiorted lo him, und no liability attaches until such indtusciiient is made. Kxccpt by special ugivemcut, a certain time Im such entries is allovvcd. The polii y usnally provides fur the ]ayiii<^ up of .stciun and .canal boats in lnc;ilii,ics, secure from all danm'rs, during the close of navi-^'ation. (Crawford v. iliiiitcr, 8 Term IJO ; t'aivtr Co. i. MftruiCanurcrd' liia. Co, Gray 2 THK OI'RN CON'I'liACT POLICY. I$I7. .\ii ai/i'ii, ciitUract policy is one where the ccnipany ftgrees to underwrite, and the insured agrees to report for indorsement and pay the premium upon all shipments made to, or invoices of purcha.ses received from certain points duly onumcratcd therein, for a given pt;riod of time, at rates of ]>reminia fixed in the contract ; ami includes all risks of trans- portation, as well as of fire. Unlike llie " open tin; [Ktlicy," however, the liability of the underwriter coraiuenees from the .shipment ol ilic property to or by the insured, without reforeuco to the fact of iiulorsement or consent of the agent ; ami the sums thus at risk, indorsed or nut indorsed, cover goods lost 130 COMrOUND rouciKS. before the insured may have been advised of slu'i'nient, or before tlicy had. from any cause, Ijoon indorsed upon the ])olicy 02 book. The fr.Mineui'y of reports for indorsement to be made ijiay be a mattt'i nf agreuiiient. Th>.'y slioiild be made us often as once monthly, at least, and the premiums duly collected. :fil7il. In I )pen transport and contract policies, the amount of insurable interest is the invoice value at the time of shipnuiu., with an agreed additional percentage to cover expenses of freight, insur.mce, etc, ; and in case of loss it ig customary to replace the goods by the shipper, the insurers paying for the same, and taking the salvage, if any. In adjustiiitMits of loss under this class of insur.ince, the custom in marine udjuslments iisui.'.Uy prevails. n. COJIPUUND POLICIES. SI.S. A compound or collective jiolii'i/ is a loose, ihjating contract, covering in one sum, and for a single premium, npon dcveral subjects in one or more localities, tor the same jiarty. JillK li IS \irtually a specific insurance uyon each or either subject under its protection to its full extent, oi' pi-o rata npon all, should the loss upon any one or more of such items so require, and in tliese proportions it will contribute to losses with co-insururs as if it had been originally specifically written in such jiroportions ; but unlike the simple specific j)olicy, after C(mtribution with co-insurers under the contribution clause (2l!>Ji), it jioats in any unexhausted balance from one to anothci of its subjects, as full indemnity to the insured may requne until exhausted, if need be, but without further liability to contribute with co-insurers, and this upon the broad jirinciple that no policy am ajtply to a ))ortion only of the projjerty under its protection ; it must j)rotect as large a portion as possiblo of the whole, within it-, liability. (a07«.) 3SO. The use of the floating prir.ci])le in the collective policy antedates the introduction of tire insurance ; it was com- mon, and recogniiied as legal in early marine jiractices, and i.s COMPOUND POLICIES ';'".K "I'lchever voii i,I,>.,op " , ' "^ quo ms," * '"" th.! ...„„„„t3 „„,1 ,,,,i " "^'"■^!' ""■■ limited ,trictlv « >"»}• be c„lte.l „,,„„ ,, , " •; 7 ""''-■ it. ,..-„tco.i„„ ^l ■-^'-^'-l .«.l.j<.t, e,„e,ej /„ "^';'\'^_ ''^ "»t. "^ «!,.„ l,„t „„,' .,f '« ""■-■"■-'I in one or ,ov ,-,l 1 """ "i*!" "".frwiso *"■*« .n t.,0 a,,.,,a.;r ,.;;, ;,v;f''« «".i,o. „„„ „^ i"«""""i tor. ,sl,„„M ,;;„,,,,.", ""•« P»l'cie.s ,„ '■■"■■"■ '!«. lo«, 1,0 ,„ki„„ ^1 ™ ■'' '"V ho n..„..,sa,.,v .l,o..,,f ,„ <■■■• i' '." ti..« of t,,o ;,;::;!"•:.,:/" '^« .""■-■ '"■" i".™.^, ''I tho loss „,„,; oa,-l,. ' " '"'" l"'"P'-ri... in -l.o ,,,ii„ ^■|»'f™.ofHicyiaafa™rit„,,.,,._ —(-1^111) c.asa of siirewa ! I fiM 132 COMPOUND POLICIES. o]'eriitors, as well as riiilidads, wlio ])lace about eiioiigli hlavkct insamiice \\\>o\\ tlieiv prerty t,u catch all tho losses, and trust tu chance to hold theui liainiless, or noai'ly so, upon the balance. (I.1-15.) :. aO«!K 2iJI»ji.) Royal liisiiratice Co. r. ll.nlcl, S. C. Pa. 1S7.'); i)4 Pa. .% ; Angelrodt, r Delaware Aluiual lii.s. Co., Ml. S. ('. l,'^t;2; Haliitnore In.^. Co. v. Loiiey, 20 Mil L'lr ; Croniie v. Ins Co., 1.) H. Jlonree, Ky. 4."i2 ; lli.x v. Miit. In.s. Co.,S. C N II. 184'J; :\ Binn. F. I. Ca.'^es 67 ; Niculet v. Harlem Inn. Co., 3 Louis .■?(!ii ; 1 t!ennett> F. J. Cases :iS2 ; Conimonwcaltli r. Ilnie & Leal ii or lii.s, Co.. S. ,1. C. Mas.-, (in e(Hiity) LSTit ; 3 In.'*. Law .Juiir. G71 . J$U-I. In case uf loss upon all or any of tho items covered by policies C and J >, tln'y wi'iild at once become .sj)ecilic, and cover the se\ oral sul)je<;ts under their jiroteclinu in t lie exact proportions of tlie loss tliereou ^JIOT), as in the following e.xamjile : Loss on wines, ^20,000 ; on «ucrar, $".000 ; cotree, if;{,000. Company C wouKl heennie Hjieritvu nj llie proportions <>f $,5,000 on .siittar wliicli ilalone covers (MOT J. and i^.'),lHlO .in wines. Company 1) woiiM become .?/'e.//i> in the ratio of $;i, 000 on (H (Ice wliicli it alone e,over« ^5107), and ;57,OO0 on wuie.'-, '! lie eontrilnuive liability on wines uuuM l.e as (bllowH : A, $10,000; H, S10,000 ; C, *.V000 ; and I", $7,000. (itOKrj.) IVm. f'nminivnd poJiclft<, o'Vering .seve-rai iti^iis under one sum, should always pay an advanced rate over .s]jecitic in.suranco ; i J THE EXCKSS FORM. 133 and, for tlio safety of the underwriter, should in every instance be made subject to tlie ouuditious of average in one or the ulhi-r of its forms. (JtOO.) titiH, Double insurance, under compound policies, does not diller from other douhle insurance, and is liable in the same marmer to pro rata eoutvibutiou with co-insurers to its full extent. (20.S2, 221 ».) CoLLEciTiVK POLICIES embrace the general, the ''.rccss, and the jioating forms. THE GENERAL FORM. ■K ;$27. The general forrn covers, under one amount, xi])on several subjects or classes of articles combined, in one S2)ecijied locality onlij, for specified parties, and at a single premium, like the speeided policy of English practice. (JSOH.) This form, nUo called "■hhiiiliet" is, in fact, a floater with a restricted range, being confined to one locality, subject to a common burning, as, "ten thousand dollars on pork, flour and, grain in his warehouse located, etc.." and herein is the difference between a blanket policy and a " Uoater." (J$JiO.) THE EXCESS FORM, Ii2.H. The (;.C(y's.s /or»i is the gew.ni.l form, as alune, with i./i; additional stipulation that tiio amount therein name»l is deciivif'd to be in excess of any sum or sums already insured specijieallii, ujion all or any oi the subjects therein named; [<.nK\ conditioned further, " not to be liable to contribution for loss thcrrted, viz, • — " The liahiliiy of the insurers un that the aniouiit of this insurance s-^.i insurance H\nm the entire property al r; i ." :<:ortion of the property, uiuicr the protection of the CJ'cess ivsii rancc, may be fully mt i. 3!iii« It differs from the ordinary fiouter, however, in being duly recognized as excess insurdnce by the specific policies upon the same property, thus avoiding any confiict of conditions, as is the case in the arbitrary stipulation of the fioatenleclariiif/ i,tself to he excess insarnnce. It is ustuilly ctdifined to one locality, and is seldom .''ubjcct te re-^pousible (in no case exceeding the market value of thegcMhis iniinediau iy anterior to the tire), in or on all or finy of tl>e ware liou.'Si's. vaults, ('eljars, shed", craiioliouscs, wharves, yards or (Hiays, and (if not under pn)tei'ti< of avcraj^e hereinafter inentionecific inpiirancv or insnrani-or-, which "aiil exce."* im «o declari-d to be imdor llie protPction of this jK)licy, unJ suhject t.) averatre aturecaiil. '' Jt Im luTcliv ileclareil ami ajrreeil, thai wberevor a siun insured isdeclared to Ir' .«iili|etl to th(^ conditions ot" average, if tlie property ao covered eliall at (he Krcakinj; out of iiuy fire I* olleotively of greater value tlian tifie sum insured thereon, then tlie insurance coMipwiny shall pay or make good such portion only of the lo.-'s or damage as the Hum so insured shall bear to tlie whule value of the said prop< rty at the time when such fire shall firrs, places or limits in -l ■>) in ' i isnrance, shall, at the hreak- ing out ot any lire or tires, he coiit-ciivel of greater value than the sum insured, then this cotujiany sliall jiay and make gi>>d such portion only of the Kiss c.rdamatre as the ^nm injured shall hear to the whole value of the property aforesaid at the tiiue vviien ^iicli tire or fires shall first happen.'' IJIO. When it coutaiiLS the excJM clause, a.s in the English form, al)ove cited, the intention is to confine the liahility under the policy to only such e.rce.^'s of vabif beyond any specific co-insurance, that may exist upon a part or all of the property in any of the siiecified localities embraced within the range of the policy, which specific co-insurance must be first exliau.strd in payiui'ui id'sucli loss before the//oi1), the existence of the excess clauM should be specifically recognized and consented to in the co-insuring policies U))on any portion of the risk-i within the range of the //ort^er; otherwise, «-s hetween the assured and the co-insuri)iy policies, such floater will be held in the adjustment as "other insurance," and liable to contribution, subject to average, uj^on any or all of its concurrent snbjects, its terms and conditions being operative only between the company and its jiolicydioldcr ; for no company can, by its oani co)ulitions, practically annul and override those of another comi)any. (IT7.) Tn case of a {lartial loss fiiUing within the amount of sjieiMlic insurance, the jloater covering only the excess of value above the sitecitic insuranc(! would esijape scot free, and leave the policy-holder liable as self-insurer, with the specitic policies in its .stead. 55 1 1. In England, floaters are recognised as excess policies, when in contact with specific insurance, only by tjicit consent of the com])anies. The cttntribution clause, contained in all of the policies, specitic or average, is lost sight of to give effect to the excess clause, which is found only in the latter, thus presenting the anomaly (d' an equitable and universally recognized con- dition of all policies being thrust aside to give place, to say the Wf>-i''xf^:^''maim^ f 138 CONCUnUKNCY OF TOLICIES. leust of it, to an unjust spet'iiil one, fouml only in onn class of politics. li%!i. In speaking of this ])eciiliar feature of the English policy, Mr. Atkins a.sk.s very pertinently: — "Updii what prill :i|)lt' in it tliut the company iqsuing an average jxilicy in-^iMls ii ulau-ic, lioclariii^ tliiit tlie RpccMtli'ii jxilicy is lioiuid to wcttlc lirst and aKaiiiioii its own cornliiion of payinji; only firo rata, thus lurniMhuij; tlie Hpfctack' rulatiiig losses wlier ditleienl kinds of policies existed in the same ollu^es. Tnishas heen taken tip and m'^(ippli<'d in the cases where such varied forms of policies exist in dithreni companies." (42:J, 2004.) ;$!<». Kiiolish practice holds that umler the average clause the uniount of coiitributive insurance is limited to the pro rata proportions tli it tlie value at risk may bear to the amount of the policy ihcreon at the time of tlie loss. In this sum, and not the face of the policy, contribution will be made with co- insurers, of whom the insured is one, (3II$a. It will lie noted in this coiniection that the New York furm of the lloiiting policy omits this objectionable excess feature as to specific co-insurance, leaving to such t,he full right of co-contribution, when in contact upon the loss of the same item, sul)ject, however, to the average clause of the tloater. Fur authorities see ;?i»;j, siiiira, COXCUIIRENCY OF roiJCIES. JJI7. Tolicies are coiicurrenl when they cover, under the same conditions of liability, upon the same sul)jects ; inthe same on other proportions ; in the same or dill'erent amounts ; at the same })ivniium rate; in the sjiiae locality and for the same parties as insureds. Thus eo-insuring j)olicies, whether of the specific, excess or floating form, are said to be concurrent whea they cover the subject at risk alike in all essential jiarticulars as to conditions and subjects. }i\H> rolicies are non-concurrent when they cover the same VnO It ATA. CI-AUSEa. 139 siibjerts, in wlidle or in part, or f',()nil)int;(] witli otlicvs fot' the sanu^ iiwners aTul in the sani<.! loaility, eitlier by j^'uni-ral, flo.iting, or excess forms. Compound policies, Class 2 (tiO.H5), and polic'ie': subject to average are non-concurrent as to jiolicies not so subject. Sfi-lIK T'olicies partially concurrent, i. e., covering the same subjiM-t concurrently with one covered by neither of the others, are sometimes called "mixed." :t>10. While, as a rule, it is highly desirable that all ])()linie.g covering uiH)n the same .sul)jecls should be made concurrent so far as circumstances will admit, and thus ten. Tlie object of the pro rata clause is to inpiali/e tho pro})ortion.s of the risk between insurers and insureil, by coiii- I)elling the latter to b(,.r an agrtd pro rata share of any less liimself, greater ur le,>T. Th(! ]ires(!nee of the pro rata clause, in either of the above- cited forms, reduces the indemnity from a positive liability to pay the lo.ss up to the amount in-urcd, in any case, to a vi'latire liability f.r the amount of auy loss, either in the ]iroj)ortion that the sum insured lieais to the value of the propi'rty at risk, as in co-insurance (J$0<8), or i)i snch projiortion as the value of the property lust or damaged may bear Ui the value of all of the proj)erty at risk at the time of such loss, as under the jo'o rata elau.se projier (SfS^). Hence the omission of this clause, in one or the olh(!r of its forms, from any policy where it can be used, throws so great an advantage, uiton the side of the insured in the adjustment of loss claims, that such omi.ssion can be viewed in no other light than as e([nivalent to a very great reduction of the premium nite, as is very apparent where the compound form of policy, without the clause, is u,scd. ]'K() KATA t;i.AUSES. 141 Under either the pro riita or tlie co-insurancn form, the in.surcd hoouinos a co-insurer, thoujtfh the busi.s of thi.' onti- iriliiilion is (htl'in'iiut ; in tho unu cihl- il la valite to vtdue, and in tht; othitr it is vine to inmrance. IISIH* The run KATA. CLAUSE ruul'Klt is nsually iippemleil to goniTid or ihiatingpolicit-'s, covering property in .several h)caliLieS> so as to form a plurality of risks under one amount, so Lluit tho proporti'inul factors are value in any one or more parts of tho premises, tn tlie a!,'gre;,'ute value of the entire pro])eity at risk; or where a building, as an extended factory risk, forms a coniinuation of risks, — the vuIva; in any section to the value iu all ; or where there may bo several kinds of property at risk in one locality — the value of one kind to the ra/ta; of all. It imports tiiat all property under the protection of the {ml icy shall contribute pro rata, t.> hie to vaiuf to the payment (-f loss on iiny portion thereof, without reference to the projjurtions of iiiKuraiice to auch value, llenee, unlike co-insurance, tho pro roJa clause is always operative, except in casea of the t;iitire desi ruction of the property at risk, where there would bo nothing left for pro rata distribution, 'I'he following are some of the distribution forms of this clause ; — 1. ON I'KOl'EKTV IN' -AKVKKAi. LOCATIUNs. J-J.m. " It is umlerf tood that tlie uinouiit in>urc(l under thip ])olic"3' shall ■.(ttui'h w v liic value of the propi-rly con uuicij iu •ir/i locality shall iiear to the aggregate r(t/i(t' ul' the projjerty at risk in all ihe nhove describeil localities,"' 2 Tin: s.vMK Ufi vohe sfmim e. 53ay in pro- ponion as the value in etic/thuilding (or locality) shall bear to the rulitc in all of the bi:!ldini.'-' (or locality; hirein descrilied, at the time of ■'iicli loss. !i. loss AS Till'; BASIS OK CONTItlHl TION ON CONTENTS, i.K(l. riiat all property at risk, coiitaiiHHj in the witlim-described I 'i'd- ings, numbered frtnii one to twelve inclusive, shall coruribute to the/" t.i'x payineiit of lo«s on any portion of such property in any one or more oi suid biuldinj^s at the lime of piioh lo.-^s, 4. ON (JOOOS IX ONE LOCALITY. !US!I2. The company shall be liable for loss or damage to any portion of the good^ hereby covered, only in the pr(;|)ortion Ih.'it the sound value of such lost or daina::ed goods shall bear to tlie sound value of all of llie gond-j at risk at the time of sticli loss or damatre. '^mmm ▼ 142 11(11 l!\I.\ Cl.AUSKH, For (iili(!r pro rata rl'inm's .4e»> tinntrilmtion cliuise (llltll) ; til ree-q unit era cliUifHis ( JIJIU , Ih.sm by mmiiovhI claim) (IWHO); re-iii8umui'c lIuuso (IOIO; ; maili-il co-insurance claiist's, Xcw York Staii(i;u(l I'ulicy " Kiilns," (-IWI.) tidil. Form iimiilutr one aljuve is ^'iMUTally kiiDWii as the "pro iMlu (lisU'ilmtioii clause," it.>« o^iumlioii bciii'^ to ilisLnhiito the aiigroj^MLo iiisuniiici! lial'i'ity — not coiitrilnitioti — intu the reapt'ctivo uiiioiitifs lo covci' iijioii tlic s(!Vt!ral biii!(lin;,'s in the rati(js of the wa/MCs ftjiuiil in eiich to the uj,'gri)gatt' valuf, iit all at the tiino of any loss ; ami in these anMimls contrilxition will be midii with co-insurers, if any, or in tliese ratios of los.S' ^ to insni'iinces, the insured will be i»aid as if liie policy had boeu so written. ]ily fixes in a Ivance the relative jiniportions in whirh tlie policy shall be app^irtioned tu each subject or hicdity on the occ'irreiico of loss to eitlu^r, for which ))urji)se a ]ctions, and the loss on sections A and f •, were ascertained o be as follows: Aggreoate viilue §00.000, loss in \, S18 0<"iO; in C, $1G,000. Sectloti8 Valiii's tlu'lflll. I'lT t'tnit. of total vahi'; I'lT l-i'llt. ofTotnl Ills. 1 ,1 iHM'i. SIS.OOO iti.O'do $34,000 [ CiMtrihutuui. A li C 1) ?2it,000 i:i.(H)() 17,1)1)0 ,1,(10(1 ■.v.;.-A j>. c. 'jr, > ■• 2.S 1 " l.T.-i " 100. SiCOt')? IJ.2:.0 M,ii;(; ti.titlT $oO,OUO ii.'i'oV; ToUilf'. $(;o,ooo $30,833 ■ntTrr"' '!■ , ■ ii B '^i'ii i #i>fr^ TIIF f!0-INSUHANCK CLM'SE. 143 A,s llic li)ss(>s an.' in cixopms of tin; projmif iomil ninonnts of iiisiir- ancc, sinli ninoiiiit, is \hv coiilrihulivc li^iliility uf lln' policy, like any otlicr Iuhs iihdve 'lu- iiiiiiriinct! iImtcoii. Tim co-iiHiir- aiico plinisf is sonu'liiut's ntKlcil to tlio jtnliny to iiidiciiUi how th(i |ii(\iiuiitH sliiill l.r iiimli', in \vhi<:li ttvrnt, in thin ciiso, the viiliir lifiiiii i^tiO.liOO, itnil thtf insiimiice t'lH.OOO, the insnri'd WDuM ho a oo-insiiri'i to the 1^10,000 excess, and hear his pvo- Iioitidti (if the h)>s in that ratio. In fuiniH A M\<\ 4ah(ivo, tlicit! is im di'tiiliiition of tlio insnr- anci's in the biiildin;,'s named, the iiahility i.s sinij)ly as thit loss in eticli huihling hours to the loss iu ull of tlienj. TllK CO INSURANCE CLATSE. (ijmmhnly cali.kh thk avkuage (.l.vl^k. ilO(t< Tiiis fuiin of the j»'0 rain rhiusc is the unis-orsul written condition of inavini' iiisiinuu'e. Its intriHlnulion in the lire hianeh, wIkto it is lhtM'Xi'i'|ttioii and nntilie riihs ncs.'i' bein;^ oporativo tlievein nnlcss .so expressed, and then only in the poliey eontain- ing it, is eoiiipaiativt'ly of modern date, A, \). 1828, under .statute ill Knglaiid (0 (ii-o. 1\'. (jJi. 14), to proteet the icvciiiic derived from insurance duty from frauds of in.surers or insureds, 5$y this Act insurer and insured wore compelled to place a certain fixed amount upi'ii cadi dislim t bniMiiii,' or con- tents, or where the ii.xing 9» 14:4 THE Cfi- INSURANCE CLAUSE. 308. " It is horcliv dorlfirc'ii and a.irroe I he condition." of aveiaj^^e, if the property so covered f'liall, at llif broakiniz valiu' iif the said property at the time when Ptioli fire shall liajipen." !S4I1I. Ill tliis coimectioii llie U'vm "average" is an evident nii.sii()iiier, having but little allitiit}' with the siilyect to which it is ajiplied. Hence in Aiiiirica the -wcr*! has lioeii oenenilly dionped, and the leriii co-insurance substitiiied us more fittingly expres,si;,(r the nicaiiiiig intruded. In the marine praetice tin; word average has a nninl>er of meanings (o, 4, 5), besides "average oliitises " of several varieties. But, however nsed, it is always synonymous with contribution in addition to that nf ratio. :{70. ^\'hy this jinneiple was not fuuiid m the earlier tire policies as it was used in the marine, is not clear ; .surae of the I. Id tire oHi"os — the London (Jorporatinn, IT^U — disclaimed all use of it in us policies, so that it was not until its use in certain ca.ses was made obligatory upon the companies, that it bec'uie general. 371> The co-iiisum,ici> clause is a sini|)le .stipulation, that the insured shall bt^ar such proportion of any lo.ss as the val'Mi of the pr(i])erty at risk, in tWca^s of the insurance thereon, shall bear to the amount of iii>uraui.'e thereon, or to the interest of the insuird UuM'ein ; ov, in other words, that the iiudervvriter shall be liable for such proportion only of the pro])erty at risk, lost or damaged Ijy fire, as the amount of his insurance may bear to the \alu(,' of the entire property at risk, or the interest )f the in- sii'i'ed therein ; the insured being held as co-insurer to I In; e.Kteut of any excess of value above such insurance. When jiulicies are said to be " subject to average, " this is the clause referred to. JtT'2. It is ba.sed upon the equitable principle, that where the insureii elects to sttnd his own insurer upon any portion of his propfjrty, paying premium only iip'on tliat portion under direct insuiaiice, he should be regartied in the light of, and treated in contribution to losses under his policies, as if he were another comjiany interested to the same aniinint as the excess, and, consefiuently, ludd liclile for a corresponding portion of the loss. -m .w^-'-a-wiiJiiv-iijI^rtMffe i$;«ai igHS i'- THE CO-lNSURANCE CLAUSE. 146 3751. The enforcement of this clause vould compel a larger amount of insurance to be taken upon property, in order to obtain a full or even an approxitnate indemnity incase of heavy losses; and so far as the •^. surer is concerned, there would be contribution to the full value of the property at risk, either by direct policies or by the insured as co-iusurer. 371. Tlie co-insuranoe clause is applicable to the same classes of risk as the pro rata clause proper ; but unlike that clause, it makes only such portions of the property at risk as may be in excess of the insurance thereon, instead of the entire property, contribute to the payment of a common loss; and where the insurance equals the value of the property at risk, this clause is not operative. The following are some of the customary forms of this clause j 1. General Co-insurance. - - • 373. If the valueof the property at risk shall be greater than the amount hereby insured tliereon, tlio insurpil shall be consiiloreil a co-iu8urer for Bucli excesw, and all lo-is^es shall Ik- a Ijiisteil accordingly. 2. Three-Jourths Co-insurance. 37<>a. The insure];e will be made good pro rata. K 146 THE CO-INSURANCK CLAUSE. C. E.vc;i.iSEi Form. 379, •' I. It is hereby declared find agreed tlmt whenever a sum insured is declared to be subject to tlie conditions of averBj;e, if the property sc covered (-hall, at the breaitinj;; out of any fire, be collectively of greater value than tlio sum insured thereon, tlien this oonipany shall pay or n)ake gooii such a proportion only of the loss or damage as the sum insured shall bear to tlie whole value of the said pn:)p(^rty, at the time when such tire shall tirsl hnpi.>en." 38(). "II. But it is at the same lime declared and agreed tliat if any priiperty included in such average phall, at the brv-aking out of any tire, be insured by any other imlicy which, whether subject to average or not, shall apply to a part only of the buildings or places, or of the property to which such average extends, then this policy shall not cover the same, excepting only as regard.s any excess of value beyond the .iniount of such mere sjieci- fic insurance, which "aid e\ce.-^s is declared to Le under the protection of thifi policy and subject to average as aforesaid." 381. "III. And it is further dei. lareti and agreed, that if the assured ehall claim uuuer this policy for loss or damage to property embraced in the terms of any average (x>licy, ixtending as well U.> other buildings or places, or to other property not included in the terms of thih insurance, and if at tlie breaking out of any tire there shall not be any property in such other buildings or places, or any siicli oihcr pr perty aclually at risk to \je protected by such pulicy, Iheu, so far as regards the rottlement of any claim under this policy, the terms and liability thereof shall be held to be con- current, ill all resfH'cts, with those of sui'h other |Hjlicy." The following clause was n.sed )iy .sjieeific policies when brought into coutact with aMiiage policies upon tht; .same loss. 382. " IV. — In case of the assurcii lioldi ig from this or any otlier CompHny any jioliey suhjtct to average on the property covered by (hia lus'iranci', then this policy .iliall Ije s'lbji'ijl to average in like manner.'' HHii, Where ihe iiioiireii is by agreemout to luaintaiti a given ainouiil of co!i(;uii'ent iu.suiance upon lii.s property or interest covered liy the poli(^y, or .stand fis w-insurer for any deficiency in such amount in case of lo.ss, or, in other words, that the adjustment shall be made upon the basis of the amount of insurance agreed to be maintained, whether e.xistiug or n')t at the time of any loss, the fallowing is the customary form used in the policy . 384. It ifl understooci and agreed that the insured hliall efTect and main- tain not less than dollars of (wp<'citic or excess) insurance, concurri-n t lierewith, or Ik.- deemed ci>insurer.s to the extent of any deticifcticy of such sum, ut the time of any loas under this policy. (376tt.> I w^P5r?v^^^^^ " LIMITATION CLAUSES. LIMITATION CLAUSES. 147 3^5. It has become common of late years to insert limita- tion clauses of two kinds in policies ; the first to restrict the amount tif insurance to be can-ied upon any risk, and known as the vahie clause, and the other to limit the liability of the com- pany in the event of loss, and known as the loss clause, such limits being indicated by some agreed percentage. 1. TlIREE-FOUHTHS VaLUE ClaUSE. HHH. TluM stipulation limits the amount of the insurer's liability to three-quarters of the value of the insured's stock not exceeding the amount of the policy, leaving him a sc If -insiiter to the extent of twenty-five per cent, of the value. If the value of property lost exceeds three-quarters of the property at risk, the company jjays as for a total loss ; if the loss be les.s than the face of the ])olicy, the company jiays in the ratio that the value of the loss bears to three-fourths of the value of the total stock, the insured being self-insurer for any deficiency. This form of clause is jieculiar to the Southern section of the United States. 3^^7. Eighty Per Cent. CoInsukanoe Clause is another value limitation clause, having its origin in the Western States. It is comparatively a modern form, about a. v>- 1884, and was at first applied to lumber chielly. It reads as follows : — JJ88. "Ft irt a part of the consideration of tliin policy, ami the basis upon which the rate of prPiniuiii if fixeil, tliat tlie assuri-il '-hall maintain insurance on the property covered by tiiih |wiicy, to the extent of fuur-fiftha of the actual cai^h value thereof, and failinj; so to do, the af-nured shall be a co-inaurer to the extent of hucIi deticit, anil in that eveut shall bear his, her, or their portion of any loss, (liliyfi,) " It is, however, mutually understood and aj»reed, that in case the total insurance shall exceed four-fifths of the whole actual cash value of the property insured by this policy, the assured shall not recover from this com- pany more than its pro rata share of four-tifths of the whole actual cash value of sudi property." Under the first paragrapli of the claus(} the insured is com- pelled to carry insurance to an amount equal to four-fifths of the value of the property at risk, or become himself a co-insurer for any deficiency in that proportion of the value at risk ; but lie is not confined to that proportitm ; he may, it his option, cover the 148 GRADED CO-INSTJRANCK CLAUSE. proiioity to its full valiio. .But under tlu! second |>ami;ia.ph of the clause, iu such case, Mie liability of the c. Ill oaae of los-; by tire liapf«>i)nii.' in the jironiir^t'H oi'ciijiieil hv or W)tli;n Iho contril of the iiisurt'il, thin company will o^ly ho liuhh' and boniKJ 10 pay thro('-f(.iiirth* of thf ainomit of lo-,- >(> a-ceriiiiiied and provei) ; ai)(l in ease of olht'r itisiir.iiict', only the |ir(i|X'ilioi' that tliis ixijicy hoars to tlie whole amount iiiHiired tiiiTiHin. The following form was introduced into the Southern States about A. D. 1805, and known as the " Country Clause," as it was only used for out-ol-.to\vn risks: — J?S()a. '' It i« uiidcr-'tood !!nii Uijreod to he a condition of ihis in^iirancp, that in iNiHf of any loss or olaitn nndi-r this-' jioloy, this ("omjiany is and shall be Iial)li' tor only tlirte-Courihs nf ihe sanu', iiDt iMei ding the sum herein inPiir<=d, and tiiat ont'-lotuih shall he borne hy the injured. " Another loss limiting clause is f -und in the eighty per cent, co-insurance clause above. (JJH^i.) 3 (.iUAMEU CO-KVSURANCE CLAUi^E. SSMK This is the eight i/ j>er cent, value clause adapted to any given ]ier('entage of value of jintperty at risk that may be covered by insurance) the insured Ix'ing made a co-insurer to the extcin of iuiy deficiency in the insurance heh)w the percentage upon wliich the premium is predicated. It is termed ''graded" fron» ihe fact that the rate of premium is graduated or lixed to confoiiii to the relative jicrcentage of value covered by thejnilicy to the aggregate value of all of the pmjx'ity at risk, the les8 the anjount of insurauce to value, the higher the premium rate. (lSt'i»j GRADKD CO-INSURANCE CLAUSE. 149 I Tliis form originated at Chicago about 1886, and extends to but four percentages. Starting from the basis rate of one per cent, for 80 per cent, of value at risk, covered by the pt)licy, the grada- tions are made as follows under the clause : — ttOOn. Class 1. Basis rate !$1.00. " It is a part of the consideration for this policy, and the l)asis on which the rate of premium is fixed, that the assured shall maintain insurance on the property described by the policy, to the extent of at least eighty (80) per cent, of the actual cash value thereof; and failing so to do, the assured shall be a co- insurer to the extent of such deficit ; and to that extent shall bear his, lier, or their proportion of any such loss." 3»Ob. Class 2. Basis rate SI. 10. Clause same as Class 1, substituting 70 per cent, as the value to be covered, and adding 10 cents to the basis rate, »»Oc. Class 3. Basis rate 81.20, Chujse same as Class 1, substituting 60 per cent, as the value to be covered, and adding 20 cents to the ba-sis rate. 300d. Class 4. Basis rate $1.40, on a value of 50 per cent. Tiiese additions to the basis rates for reduced lines of insur- ance are evidently arbitrary, mere guessing that if 80 per ceiit. of value covered be worth SI. 00 per cent., then .")0 per cent, of value is worth SI. 40. The lines and rates evidently have no mathe- matical reference to each other. 801. As the underlying principle developed by this graded method goes far to solve, if it does not actually solve, the long time vexed question as to " what is an average line of insurance," and althuugli it cannot fix a basis rate upon any given cla.ia of risks, it so far solves the problem as to determine the relative proportion that a basis rate, or one assumed to be such, should bear to the variable percenUiges of value covered by insurance. It is important that the additions to an assumed basis rate on an agreed valuation shoukl be correctly estimattnl, and not be the subject of guessing, !t1lla« From a very clear and ehiborate article apjiearing in March, 1887, from the pen of W. A. llawley, Escj., of IMuladel- phia, upon the subject of graded rates to meet reduced lines of 150 GRADED CO-INSURANCE CLAUSE, insurance upon full values at risk — wherein such rates are matherndtically computed, and hence far more satisfactory than by the "rule of thumb" promulfTfited, as above, by the Chicago Board — the following proposition for computing the true rates is deduced : The cash value of thj entire property at risk under insurance is always a known quantity, and becomes the basis factor in the conii)utation. The assumed adequate annual rate for a given risk is also a known quantity; and the sum to be insured being the variable quantity, the unknown quantity will l)e the equitable rate in the gradetl scale. Then, if one percent, be a fair assumed rate upon a given risk, and eighty per cent, of the value at risk be a fair average line of insurance to be wirried upon such hazard, the proposition will sUmd : " As the amount of insurance carried is to SO per cent, of the total cash value, so will be the rate assuinoil to the true or ' equitable ' rate sought for." Any other percentage of cash value, or any other assumed rate of premium can be com})Uted in the same manner. The following examples, under three different percentages of value covered and of assumed rate, will be used to illustrate the proposition : — 1. Eate 100 cents. Value written 80 per cent. 2. " 75 " " " 90 3. " 60 « " " 40 3!llb. Example 1. — Annual rate, 100 cents ; Value covered, 80 per cent. PBR CBNT VALOB A8.SDM«D EQCITABLB 1N8 DRED. !00f COVKRKD 80 p. c, so is iOO BaTB. en IS, RATB. A3 ). C. is to i^ntg to 80 r rate sought. ii 95 K i> 80 II 11 100 II 84 11 11 II 90 II (1 30 11 11 100 ll 89 II lf« As to the insured, the e(\uity of the graded clause is at once apparent ; he pays premiums only adequate to the hazards of his property ; he becomes a co-insurer only at his own option, and in the eveul of loss he recoups the insurance money 152 •niE KNOLISH rOI.ICY. up to tlie sum of the loss, within the amount of the poli('y, without (ledn(;tion — if he nmintain the iunount of insurance iit the time of the loss, agreed upon when the insurance was taken — the co-insurance clause beeommj^' operative only should the adjustr.ient of the loss reveal the fact of deficiency in the amount of insurance requisite for the vaUui of the property at risk, and then only to the amount of such deficiency, as shown in the examples under the "eighty per cent, clause" supra. Under the ordinary }>io rata (average) clauai\ he would he compelled to carry a line i)f insurance up to the full value of the projierty, or become a co-insurer for any deficiency ; whereas, under the graded clause he can, at his option, place any })ortion of that value under i/'surauce, without necessarily becoming a CO insurer for the remaining uncovered portion, thus obviating the chief objection of insureds to the pro rata (average) clause. THE ENGLISH POLICY. English policies are of two kinds, specified awdi average ox floating. 393. The specified policy covers jtroperty in a single locality, though it may be general in form, etnbracing several subjects (30H, *21iiS), but is never subject to average. 393. The average policy or floater, as it is indiscriminately called, covers various subjects in several places, but is always made subject to average, (336.) 3SI4. The (Jolonial forms, being mostly copies of the English policy, will l>e ranked among them. Th'; following forms are presented : — The Royal KxcnAxoK, of London .....a. d. 1720. The Hand-in-JIani), >ij,iecific nialern form London. Tlie (now retired from biisines.''), Glasgow. The Nkw Zealand Insurance Company Auckland. The Pacific Fire and Mari.ve Insurance Conipanj, Sydney, N. 8. W. ExGHBii AvKRAfJK Policy form London- THE ENGLISH FlUE POLICY. THE ENGLISH TOLICY : a. d. 1787. 153 By tho Corporation of the Royal Exchanoe Assurance of Houses and Goods fuom Fire. tifin. Thi.s present instrument or Policy of AHsnriuico \nt- nesstith, That Whereas ■ — agreed to pay into the Trtatsnry of the Corj)oration of the Royal Exchauyo Assuranc; at their Olliee on tho Royal Exchange, J^mdon, for the assurance of from Loss or Damage hy Fire. Now know all Men HY these Pkesents, That the Capital Stock, Eatate, and Securititis of the said Curporatioii shall he suhjeet to and liable to pay, make good and siilisfy unto the said Assured, H^irs, Executors, or Administvattirs, any Lops or J)aniage which shall or may happen by Eire to the said Goods aforesaid (except such Goods as Hemp, Flax, Tallow, Pitch, Tar, Turpen- tine, Glass, China, and Earthenwares, Writings, ISooks of Accounts, Notes, Bills, Bonds, Tallies, Ready Money, Jewels, Plate, Pictures, Gunpowder, Hay, Straw, and Com unthreshed) within the space of tNvelve Calendar Months from tin; l)ay of the Date of this Instrument or Policy of Assurance, not Exceeding the sum of- ; and shall so continue, remain, and be subject and liable, as afjresaid, from Year to Year, to be Computed from the J)ay of in Every Year, for so long Time as the said Assured shall well and truly pay, or Cause to be ])aid, the Sum of into the Treasury of the said Corporation, on or Ix'fore the • Day of which shall be in Each succeeding Year; and the said (.'orporation shall agree thereto by accepting and receivitig the same; which said Loss or Damage shall be paid in Money immediately after the same sliall be settled and adjusted ; or otherwise, if the said Loss or Daniage shall not be adjusted, settled and paid within Sixty T\i.ys after Notice thereof shall be given to the said Corporation, by the said Assured, that then the said t.'orpora- tion, their Officers, Workmen, or Assigns, shall, at the Charge of the said (Jorporation, at the End aiul Expiration of the said Sixty Days, provide and supjily the said Assured with the like Quantity of Goods of the same Sort and Kind, and of luiual Value and Goodness with those burnt or damnified i^y Fire. Provided Always, Nevertheless, and it is heridiy ileclared to be the true Intent and Meaning t)f this Deed or I'olicy, That the said Stock, Fstate, and Securities of the said Coipora- tiou shall not be subject or liable to pay or make good to the Assured any Loss or Damage by Fire, which shall hapiH^ii by any Invasion, Foreign Enemy, or any Military or usurpeil Power whatsoever ; Provjped Also, That, this Deed or Policy 154 TIIK KNOLlflH KfUE rOLICV. slifill not tako Plaois or Ix; hitidini^ to tin.' siiid Corporation until tlu' rrtiuium for one Yeiir ia [luid, or in case tlio said Assured shall liavo aln^ady uiado, or shall lu^ri'tifUir niako, any other Assurance npon the (Joods aforesaid, niiless tht; same shall be allowed of and so speoified iijum the Hack of this Toliey ; Or if the said , at the time when any snch Fire shall happen, shiiU bo in the Possession of, or let to any l'ers«)n who shall iiso or Exercist! therein the Trade of a Snt^ar-Ikker, Ajiotheciry, Chemyst, Oolonr-man, Disliller, Hicad or Hiscuit-baker, Shi|i or Tallow (Jhaiidler, Stable-keeper, Inn-holder, or Alaltstor, or shall l>e made nse of fur the stowinj,' or keejtinj,' of Hemp, Flax, Tallow, Pitch, Tar, or Turpentine , bet that in all or any nf the said Cases these Presents, and every Clause, Article, and Thing herein Contained, shall eease. determine, and be utterly void and of none EHect, or otherwise shall remain in full Force and Virtue. In Witness whereof the said Corjioratiou have caused their Common Seal to be hereunto affixed, the Day of , in the Year of the Keign of our Sovcreiou J.onl by tlie Grace of God, of Great Britain, Fronce. and Irclaml, Kin>», Defender of the Faitli, itc, and in the year of our Lord One thousand hundred . N. B. — This Poliev to i)e of no Force, if assigned, unless sueh As-ii^ument be allowed by an Entry thereof on the Books of the Company. KEMARKS. JiJHi. This is a copy of one of the earlier, if not earliest forms of the fire policy of this venerable company (a. d. 17LiO), u])on which, together with that of the Sun Fire Office, many of the earlier decisions of the courts are founded, and upon whicit most of the subsequent policies were based. It presents a few points worthy of notice, viz. : — List of exceptional articles ; th(^ original of the present extended classification of hazards. ( 1H2.) Duration : from the day of the date ; for twelve calendar raonth.s. (>*40.) Renewal of the policy provided for in a form still in use in sonie English policies. (^T4.) lie in. 'if ate merit. — Tiiis underlying principle of indemnity is here first (biiud; but it seems to l)e restricted to "goods," no THE ENGLISH FIRE POLICY. 1D5 montion ln'in>,' nirido of huildiiigg. But wo find roinstatejiiont of hmldiiins iu iho lliuid-inJIaml policy of A. i>. IGG'J. (INJKi.) Preui'iHiii. — Here wo have another " jtriuciple " of tho insur- ance oonlrnct, thuL the premiam ninat be paid before the contract is ooini)l('ted. (77ft.) Other i7imirance must be noted, and indorsed on the policy, but no iiicntion is made of ^^v'c rata contribution, wliii li was incoviHii'iited into the contract some years afterward. (tttt.H.j hivas'um, fonuiju enemy, tnilifari/ or vsm'jml poiver. — This provisioii boars date 1720, as we Uiarn from a charge of Lord Ma.nhi>'Ielu, in a case where it was called in question, and is the jirst notice we have of it; though cnnton^iorary com- pani(fs, the London Assurance and tliti Sim I'Mre fUlicti, had the same. This claiist; was the result of tlie incorporaliou uf those companies occnring so S(M)n after a rebellion. (1071.) Hazardous occupancy , after insurance, voids the jiolicy as in the present form. Asdgmneiit without notice and consent voids the policy. THE ENGLISH POLICY, SPECIFIED. JJJ>7. The following is a copy of the present form of policy in use by that venerable institution known as the HAND-IN-HAND I'lKE AKD LIFE INSUHAXCE SOCIETY. hiatUufed, a. m. 1696. Extended to Life Insurance, 1830. This Policy of Insurance Witnessetli that , hereinaitor called the insured, having paid t<5 the Haxh-in- HaxN'u EiKK AND Life Lnsuuance Socif.ty, hereinafter called the Society, the sum of , for insuring against los.s or damage by Hre, as hereinafter mentioned, the property herein- after describetl, in the several sums following, namely : — FoJic- ( Description of jyroperty :) . No. — . Canceled. But urn Premium — . The Society hereby agrees with the insured (but subject to the conditioiLs indorsed hereon, which are to Vje taken as a part of this jiolicy), that if the property above described, or any part thereof, shall be destroyed or damaged by fire, at any time 156 THK KNGLISir I'lUF I'OMCY. bctwt^Pll tlin IK — , and the 18 — , hoth riii'lunlve, "■■ " . ' " ': or 111 iiiiy time (iftcrwui'iis, hi> long us tliu iiiHuit'd, or li — ropro- St'iitutives ill inU'icst, ahull |iiiy to tlit^ Society, iiixl it .slmll acot']»t tin- sum required for the renewal of this jiolicy, on or before the in each suctreding youv, iW Si/ciely will, ont of its tniul.s or projuM'ty, pay or make yood ail such loss or damaj^e, to an amount not excoeditig in respect of tho sevural matters ahovo specilied, the sum set o])posit(! tlmreto respec- tively, and not exceeding in the whole the sum of . rkoviDKi), NKVEltTflKl-Kss, That the fuiiils or i)roperty of tho fSoeiety shall alone 1k' liahh; to satisfy this policy, and that no director, truste, or other meml>er of the .Sciciety shall be pitr- sonully liable, whether in body, estate, or othersvise, however, to make }^ood, either in whole or iu part, any claim or demand whatsoever under this policy. In witness wiikkeuf, this policy lias been duly executed, this day of , 18 — , by . Sij,'ned, sealeil iind"^ ") Directors delivered in the V ]>re,senci' of J Examined, > of tho ■ j Societ ty- [seal.] [SICAI,.] [SEAL.] .'M)8. TUK COSniTIONS IIKKKKUKK TO l.V THIM I'OI.ICY. 1. Any iiiuteriul mi.«ilt'Hcri}itioii of iiiiy of the pro|)erty projMwcil to l>t' heri't)y iiiHinoil, or of iiiiy ImiMiiiK or pluco in wliicli pro|x'rty (o tte so iiijiiii'eil is c'Oiitaiiu'ii, or liny iiiis-yiiiicmt'iil ot or oiiiiH.iion to sUte imy fact tiitttcriiii to Lf known lor eHtiinutirif; the rir>k, reinlfrs tliis policy \o\i\ as to tlie properly iitl't'cted liy nucli misilencription, rui8-rttutctii ent, or uniis8ion rp-pf(;tiv('ly. 2. If, after tlie risk hiis Lcr-n iinJertHkoii liy tlio Society, iihytliin!? wlieri'ljy tlie risk is iniireiised he done to iipopcrly liereliv insMrey indorsement hereon, the insurance as to tlic Droperiy attected theretiy ceases to attach. 3. Tliis policy does not cover projierty licld in trustor on commission, unless expressly descriheilas such ; nor china, glass, look inc-glasses, jewels, clocks, watches, trinkets, medals, ciiriosiiie-, manuscripts, jrovernnieiit Hlaiiips, print'-', paintings, drawings, sculptures, iiiusiriil, mathemaiical or philosophical instruments, patterns, ino.|e!H, or moulds, unlos-i >|x-i:ially mentioned in the policy; nor deeds, boiiils, hills of excliange, promi-sory notes, money, securities for money, or Itioks of accouiii ; nor guii|)owder; nor loss or damage by fire to property occasioned by or hajjpening through TIIK KNm.lHIT FFIIK POI.K Y. ir,7 Un own MpontttiHMUM frnm'tiinlioii or lu'Hlinn, nr by or llironeli invHwioii, ror(.'i>»ti t'li'-my, riol, or civil commotion ; nor Iomb or il«ini»i.'f liy (•\|ilu-'icin, (■\(!('|it luss or iliiiiiuj^f l>y explosion of giis ill n IjiiiMinn imi rnriiiiiijj fmrl ol'nny nuH-wnrkM. 4. 'J'lii-A policy CTiiRcs to Ih' ill force a« to Miy propprty licrciiy iuwiirpil whicli slmll pii^s f'niiii tin' in«un'(l to any oiln-r pt-rsoii (itlii'r\viM' llmii liy will cir optTHtion nf law, milcM't notice llicrtof Ix- niven to the Sui'ii-ty, ami the HiilHi-tfiicc oT till' iriMiraiico in favor of hiicIi (dhcr prr-i>!i Iv iluclured by u incMioruiiiliiiii imlorsit'il liereon by or on iK'lialf of the S.icioty. 6. Oil diL' hnpiM'nii)); of any Itiiiiati'ii value of each "f Ihcm n'>'|)eitively, liavinj;; rejrapl lo their Mcvral vulin'-" at the time of the lire; and in Hiipiiort thcri.'of lo jjive all rtiicii voiiolier-', pr'X)fH, tiiiil explanations as may he nasoiiahly reqnire;li liie prociireinent or connivaiioe of the iiiriured, all benelil under this jKilicy is fiirfeaed. 7. The Society m.u", if it lliiiik tit. reinsiate or re()lacp priiperty il.iiiia;4ed or deHfroyid, insteiid of payinj; tiie ainoiint of tlie Iohh or liaiiiajre, and may join with any other ('umpiiny or insurerf in ko doinjj, in canew wliere tlie property \* aKo insured elsewiieie 8. Om ihe happening.' of any Iosh or ilauiaj»e by fire to any property, in respect of which a cla.in is or may be made under thin policy, tlie Society, williout beiMij deemed a wronsj-iiuer, may, by iUs authorized oIKcer and f^er- vaut.s, enter into the liiiildini!; or place in which Hue.h loss or daiiia-;.' lian happened, and for a reasonable lime remain in f>o8se«8ii)n thereof unii of any projierty hereby insured wliicb is C()ntaincd therein, for all reaHonable purposes relalini; to, or in connection witli llie insurance iiereliy etleoled, and this policy sliall l)e evidence of leave and liceuKt' for that purjKtse- 1). Ff, ftt till' time of any Ions or drtma;;e by tire liRppenitif^ t.i any prop- erty hereby iiisiued, there be any other subsisting insurance or insuranceM, whether etlected by the insured or by any oilier perHon, covering the same properly, lliis Society shall noi \w liable to jiay or coiitribiUe more than ita rateable pro|!or'ion of such Iosh or damage. 1(). In all canes where any other subsiRling insurance or insurances, whetiier eireciod by tlie insured or by any other ix'rson, covering aiiv prop- erty hereby insiiied, either exclusively or together with any other property in and subject to the same risk only, shall be subject lo avera<;e ; the in' nice on such property under this policy shall be eubject t^j averajje ia like tnauner' im THE ENGLISH FIBE POLICY. U. If any difference shall at any time arise between the Society and tlie iiiHured, or any claimant under this policy, a^ to the amount ol any loss or damage hy tire, or as to the fnllilment or non-fultilment of any of the conditions herein set forth, or as to any question, matter, or thing concern- ing or arising out of this insurance, every such ditterence, aa and when the same arises, siiall be referred Iv tiie arbitration ami decision of two indif- ferent persons, one to be chor;en by tiie party claiming and tlie other by the Society ; or, in case of disagreement beween them,tiien of an umpire, to be chosen by the arbitrators before entering on the reference ; and the costs of the refi-reiu'.e slial! be in the discrt:i"n of the arbitratoi-f or umpire, as the ca^e niiiy Ic, who sliall award by wh')m and in what m inner tlie «amp ihall be paid ; and the decision of the arbitrators or umpire, as tiie case may be, shall be tinal and bincJing on all parties, and this condition shall be deemed and taken to bf an agreement ti> refer as aforesaid 12. Ill all ca-^es where tins oolicy is void, or l»as ceased to be in force undei any of the foregoing conditions, all moneys paid to the Society in respect thereof will be forfeited. KEMAKKS. 30f>. It will be noU'.d that the conditions of the present form of j'l'licy of this comjiany (or "Society" as it terin.s itself) ditl'er mati;riii]ly from tho.se under the original "deed of .settlement" (>H0), the former heing ' strictly mutual in their pro vi, si oris, vhile the ])rosent form is largely, if not entirely, on '.he stock princij)le, emhracing most of the points common to the policies of all .English stock companies. As measured by the xhaerian standard, the.se conditiona present the following peculiarities : — FivKf. The commence Qieiit and termination of the risk, both days being "inclusive." (HLS.) Second. The premium. While provision is made for the paynuiiit of all premiums after the Jirst, notliing is ,said about &\iQ\\ first premium, further than its general acknowledgment in the body of the policy. By Section 1, viiireprcsentation applies only to such portion of i\u'. policy as may be affeeted by it, and doe.s not aO'ect the entirety of the policy. (OiO.j Section 3. The list of memorandum artwhs is more ex- tentled than in the American policy, while the exceptionaL risks include spontaneous fermentation or heating, tiud the explosion of gas in buildings other than gas-works. The kind of " (jas " i THE ENGLISH FIRE POLICY. 159 here referred to has been legally decided to mean the common coal-gas of the gas companies, used for lighting and heating. Sedion 4. Alienation is based upon the decision that " descent of title to heirs is not alienation." It also includes change of title by " operation of law," as not being alienation. American law has decided this to be correct, though the con- ditions of many of the American as well as English policies hold all transfers of title as alienation, requiring the consent of the insurers to make such transfer valid. (10H5.) Scdion 5. Notice of loss forthwith is the same as in the American form. It also requires proof loss to be produced " in iifteen days at latest," which amounts to nothing, as the only penalty for failure is, that the loss or damage shall not be piyable until such notice, proofs, etc., shall be produced, whenever that may be, as then? is no limitation as to time in which a loss shall be payable. (Itt4tt.) Stxtion 8 gives the Society permission to enter upon the premises, and hold possession of the damaged property " for a reasonable time," which seems unnecessary, as such right in inherent under the nature of the contract. (ISTft.) Sedion 9, The contribution dause, making the Society liable for its ratable proportion oidy of the loss or damage, not limiting such proportion to the j)^'o rata of the avwunt insure as 111 the American forms generally. (200 2. , Unlike the American form, this clause also includes as other insurance " (I n 11 otlw r Hulmdimj iasurancc, ivhdher ejfeded by the infiired, or any other person, covering the same property" This would include insurances of mortgagors and mortgagees, lessor and lessees, and all of that class held in this country not to bo "otlier insurance," under the customary contribution clause. Section 10 makes the poli-^y of the Society subject to average when in contact with other policies on the same property that may have this clause ; a very itv.juitable, if not illegal, provision is likely to entnil loss upon the insured when he should t;"t so sutler. It has recently been added to the National Board form of .Vmericau ]iolicy. (JlHtt' 3017>) Cancellation is not provide' for uuder any circum.<^tance3. 160 ENGLISH FIRE POLICIES. #THE INSURANCE COMPANY OF [Age)i.ci/ Form.] Sum insured, £ riemium, - - £ having paid the sum alxive 1n« UK- Fire Pol if}'. No. . 400. WHEREAS, - stated to the authorized agent of the ANCK Company, being the premium on the sum insured by this pohcy, from the (date), for insuring against loss or damage by fire the property hereinafter de.^^cribed, to the, auiomit or respective amounts hereinafter specified, not ex- ceeding the sum of ■ , nauKily : — (Description ;)f the p. operty .•) Cljrvrforc be it Itnamti, Ti.at from the date aforr aid to , the (>apilrtl stock and funis uf tiie said Comi'ANV sliall be subject and liable to {lay to the Insuriou any loss or damage by tire to the property above described, not exceeding the sum or sums of money resjiectively before written. ;\nb it to Ijpvcliti jjx'oui&rb ntt6 iiorpr&» That this policy shall 111' subject to the Cdiiditions of Insurance jirinted on the back hereof, v\hich sliall be held as forming « ijartof the Policy. PrrltU'ino illtuaqo, ^^^ it is hereby expressly provided and declared to be the true intent and meaning of these presents and which the insured by acceptation hereof specially assents and agrees to, That the ca^utal stock and funds of the said Company, foi the time lieing, shall alone be answerable for any demands arising under this Policy; and that no menilier or director of the said ('onipany shall, under any circumstances, be lial>le for more than the amount of his or her share of the said capital stock or funds of the said Company, at the time the claim shall arise, as ascertained by the books of the e erected on th-- premises, and, if so. «iiall give a particular description of the nature and constrticlioii thereof res|.)ectively ; and if such specification do not truly and circiunslan- tiaily cJescnbe the property and the several particulars regarding tiie same as aforesaid, so that the nature and decree of the risk may be justly C'-ti- mated, the policy or insurance tliireoii shall be null and vokJ. The insur- ance on any building :diall not be iieid to include anything outside thereof, such as porches, dppot/i.f, slieds, i)r other buildings, except tlie same be specially metilioiied and valued in the policy. il. — Kvery insiirance attended with particular circumstances of risk, arising from the situation, contiguity to other buddings, or construction of the premise", or the nature of the traile carried on, or goods therein, is t(i be specially mentioneii in tlie order fur the policy, so that the risk may be fairly understood; if not so ex|)ressed, or if any misrepresentation be given so that the insurtmce be effected upon a lower premium than would have been < hargrd Uad such risk been so t'uirly slated, or if l)uildiugs or guols be incorrectly described in the policy, or if, after an insurance shall liave been effected, there shall be any ereotitm or alteration or extension of the premises so as to increase the risk, or any erection or alteration of any apparatus for producing heat as aforesaid, or if any hazardous ojx'ration or trade shall be carried on, or any ha/.ar lous gixids be deposited, or any hazardous communication be made, the insured will not be entitled to any benefit under tlie policy. III. — No insurance pro|)osed to this Company is to be considered in force until the premium be actually paid. No receipts are to be taken for any premium of insurance bat sucli as are printed and issued from the office by the Company's agentB. 162 KNGLISn FIKE POLICIES. IV. — That houspH, buildiiigt' iiml gocKls in trust or on coinmia-ion, inteiult'il to In' insured, inurtt bo ho described and declareci iil llie time of otRrtiiig nach insurance, otllor^vi^t.' tlie [(olicy will nolexteiid to cover si.;ch property. V. — The Company will not he answerable lor any loss wliere fires are used in biiildiii)|s unprovideii wiiji goijd and siibsiaiitial hriolc or stone ciiimneys, or in con8f(i\ieMCe of stoves or stove pipe", plai;ed and used con- trary to law, or in conse(iui'nct' of tiie infrini.'eineiu of any law in Ibree for the suppression or jireveiition of tires, or where stove pipes are carried through the exterior wails ur roofs ot' any hoii-ie or budding; or for any los'^ by lire on any buiMiiiij iiii ler construction or repair, or movables therein, wherein ciirpeiilers and joiners are enii>loyed, unless tlie special Cun.-eiit of the Company be first obtiimed and indorsed on the policy. VI. — Losses by lightning wdl be made good by this Company, as far as where either tiie buildings or the eltects assured have been actually set on tire thereby, and burnt in conseipience tliereof. Xo alhuvance will be made for any liay, corn, agriiMilttinil jirodiice, or other property vvhicli may be destroyed or dainuged by its own natural heating ; nor Ibr any goods which may be dei-truyed or damaged while uiiilergoing any process, in or by which the application of fire-hi-at is necessary ; neither will the Company be respiinsible for lo.ss or damage by explosion, except for sucli loss or damage as .shall arise from e.vpldsion by gas. The C.impany will not be responsible for any loss or damage that may ari.'^e Irom the burning of forests or the clearing of hiinls ; nor will it be an>weralile for aiiy los- or damage by tire uccasiiiiied by any invasion, foreign enemy, insurrectiipn, civil C"mmolion, riot, or any military or usiirpeii power whatsoever, or which sliull happen or nri^^e altrr war shall have been declared again-^t the country whereiii the insured pioperty is situate, or during tjie ailministration of martial law ; nor lor any loss or liamage by fire nccasioned by eartli'pmkes <.r Hurricanes , anil this |Kdicy shall remain su-|ieiMled, and be ol no clli'ct in respect to any loss or damage which .iliall iiii|i|)en or arise during the existence of any of the !-aid (;iintingencies, unless .saii.-.|'aciory proof be given tliat such loss or damiige was not occasioned thereby or connected therewith. VII. — If property insured by this policy should pass, by death, assign- ment, or otherwise, into new hands, the interest in the policy may be pre- served to the successor, provideil such succes.aion be allowed at the office, by indorsement on the |K)licy ; and if goods insured be removed to a new situation, sucii removal must be also allowed by indorsement on the policy and a suitable premium pnid, it' the risk U' increased by such removal ; but in all cases \v here such indorsement is not sttiictiom-d and regularly made (he policy shall be void. \11I — The insured shall, if re(]uired, give notice of any other insurance alre.idy made, or tiiat shall aftirwards be maiie elsewhere, atFecting property insured Ly this policy ; that a memormidii'n of such other insurance may be indorsed on this ping in force at the tinio of any loH-^ or daniiij^e hy tire happening to the property inHured by this policy, tlien thia Company will only te liable to the payment of a rata- ble proportion of any loss or dama;;e which may be sustained ; and in cane (if the assured holding any other policy on the same property tw that insureil by this policy, and such policy snlijecl to the conditions of averaj;e, tlieii this policy is declared to be subject to the conditions of average m like manner. IX. -That books of acooiuitfl, written securities, money, stamps, deetis, bills, bonds, bank-notes, and gunpowder, or otii " explosive powder, will not be insured or comprelieiuii^d in any insurance elfected by or with this Com- pany ; nor will any loss or damage, in any cases of any description, be made good, when more than ten pounds of gunix)wder shall be deposited or kept on the premises, nor where any oamphene, naphtha, spirits of turpentine, earth oils, cm le or refined petroleum, or other explosive liquid, or spirit gas, are deposited or kept on the premises, unless the same shall be specially allowed in the i)ody ol the policy. X, — Medals, coins, sculpture, curiosities, jevvels, watches, trinkets, pictures, prints, drawings, manuscripts, misssils, curious or rare books, musical, mathematical and philosophical instruments, china, glass, and LKjkmg-glasses, earthenware, rixtures, or utensils, are not included in any insurance, unless they are specified in the policy. Xt. — Persons insured by this (vompany, sustainitig any loss or damage bv lire, are fortiiwith to give notice thereof at ihe otlice of the Company, or to the agent of the Company through whom the pjlicy was ett'ected, and \v:t!iin fourteen days deliver in writing as parti'jiilar an account of their loss or damage as the nature of the case will admit of; such account of loss to have reference to the value of the property destroyed or damaged, imme- diately before such tire, and shall verify the same liy the production of their books of accounts, and by atli lavit or a statut>:)ry declaration of the claim- ants, togi'tlier with the testimony of their domestics, their servants, or oilier persons in liieir employ, and such vouchers and other evidence as in the judgment of the directors, or any of them, or the agents tliroiigli whom the policy was elfected, may tend to prove such account and value, and shall produce such further evidence, and .ji-.e such explanations as the ilireciors, or any of them, or such aji'-nts as .foresail, m;iy reasonably reijiiire : and until such accounts, declaration, testiruony, vouchers, and evidence are pro- duced, and such explanations given, the loss shall not be payable; and if thci' shall ap(>ear any fraud or any false statement in such account uf loss or damage, or in any of such bonks of account, or in any such testimony, vouciiers, evidence, or explanations, or if such allidavitor statutory declara- tion shall contain any untrue statement, or if it shall appear liial the tire shall have happetieil by the procurement or >vilful act, )r liy the means or C'liinivance ol the |iarty or parties insured, o" of tlie claimaints, then sucii panics and all persona claiming und'-r them, or either of them, shall he excluded from all benefit from he insurance, and the policy shall be abso- lutely void. And if no claim shall he male for the spac; of three months 164 KXGLISH HUE POLICIES. nltiT the occnrreiicf of nuy lire, the int-uretl ehall forfeit every right to restitution or payment hv virtue of tliis puiicy, aiiJ time shiill be of the PH.^ence of the contract. No profit of any kimi is to be included in any claim to be tnadc under the [)olicy. XII.— The assured «hnll not be [.(erniitted to abandon any movable prdperty insured, which .-hall be injureii in conPecjuence of (ire, without the express consent of the Compiiny or itf" Jigent. In cape of the removal of property to escape contlaj:rtttioii, the Company will contribute ratably with the insured and other coiiipanies interested to the expenses of salvajje and the damage the property may vu.staiii by .such removal ; but the Company Will not hold itsdl liuble lov imy kis.j or damajze ujhju prnperly iemo\ed frotn any building (not acLUiilly on (ire), conirary to the declared desire of the u/tioer or agent of the saiii Company, or not o,'dert>^s or damage by fire tor which the .-^uid Company ehall be liable, the . paid imniediately, or the i^aid Cumpttiiy shall have the optinn, with all convenient speed, to nbiiild or rejiair, .'r reinstate, or replace the pro|.iei-tv insured, and in the case of I ii]ldMij.'r- lu jhU tlinn into us goinl and snb.stantial a Condition a^ they were in at the iinio wiien .■'ucli lire happened. XIV. — If any difference sliiiM ari.«^' uiih reaped to any cisiim for los.s or damuj^e by fire, an i no fraud ^u,-peeted, and the Company does not elect to rebuild, repair, reiiiHiate, i)r rtpl-ice the ^aiuf, .-mdi diflerence shall be sub- mitted to arbit-iUors, indifferently clioK-n. wlu/.-e award, or that of their umpire, sliall be conclusive, XV'. — It i.-' furthermore hereby e.xpre^.-lv provided, that no suit or action of any kinrl a^hinst tiie -aid Compaiiy, lor tiie recovery of any claim upon, under, or by virtue ol this policy^ siiull be su-tainabie in any court ot law or equity, unless such suit or ue'ijn ucii lo>^ or dama>:e shall have oci'urred, the lapse of tune shali be taken an 1 deemeil a.« cuiicliiMve evidence against the \alidit\ ol the claim tlicnby so attemjiteii to be enlorced. XVI. — The ai;ents of the (-'ompaiiy shall in no case be made p«»rsonal)v responsible on account ol any legal or otiier inve.-tif;nt;on which they nmy lind it iiece>8ar\ to institiiti- tor the satisfaction of the Company ; nor can their personal prop*>rty be attached on account of any alleged loss by the n^-ured. If the assured ,-hoiild censes which ehall accrue in con- seijueiice of his jiroceeding.- XV'Il. — That if fri.iii) increase of hazard by alteration of, or increase to buildings, >>r from the iiitrodiiction ■.•f hazardous goods or projK'rty, or from any cause whatever, the Company is de.-irous of discontinuing the risk, the ENGLISH FIRE POLICIES. 165 Company ehull have the option of canceling the policy on due notice being given in writing, and al the same time returning the pretniiuii lor the unex- pired term. To Iht'fip conditions are added the^rs< three clauses of the English Aver- age I'olicy. (37».) REMAUKS. ifsh^mm: 1 ~* 40S. It would seem to be much the easier task to toll what was not insured under those conditions than to know what was covered by the policy. The " cunny Scotsman" is apparent throughout in the manner iu which the interests of the company are guarded, to secure which we find in the body of the policy a jtrovision making the acceptance of the policy by the insured a " special assent " to the terms of the policy. 403. Among the conditions, the stipulations and require- mcmts are exceedingly stringent, such as requiring notice of all adjoining hazards ; (mly the juinted form of receipts of the office will be recognized in the payuient of ]iremiums. ]>urning of forest, or cleaving lands, during martial law after war is declared, earthquakes and hurricanes, suspend the policy while iu exist- ence. When other insurauiX) is reported, the company may cancel and return j>ro rata premium, it consent is withheld. Notice of loss must be given forfhivith, and proofs of loss within fourteen days, Ihougli no penalty, beyt)nd that of the loss not being pay: Me Until i)n's<;iiteti. is provided for. If no claim be made wilhin three months, the insured forfeits all right to indenmity, and "time shall be the essence of the contract." Testimony of " domestics, servants, and employees" required. When property is removed from a building not on fire, contrary to the advice of an otlicer or agent of the company, the liability of the conjpany shall cease. Agents of the company shall be exempt from responsibility on account of any legal iuvestigatious of causes of loss. Any proceedings agaiust them, for this cause, forfeits the claim upon the company. 166 COLONIAL POLICIKS. The coTiipaiiy may cancel thii jiolicy for any cause ; but uothin{» id saiti of such right upon the part of the assured. Nothin}:; whatever is said in the matter of renewals. No huur of coramenceuient or termination of the insurance is named. -lO'l. The romaininjr requirements of the condition are common to most otiu'r jMilicies, but they are drawn up with a minuteness of detail tliat would frighten timid jieople. It is just such policies and conditions as these that tend to lower the standard of fire underwriting, as giving the would-ho insurevjustcau.se to fear that, from some unwitting infraction of tlie endless stipuliitiona of the contract, he would be in great danger of losing his indemnity in case of loss under a policy of this company. 405. In addition to the other stipulations, the usual condi- tions of average of the Engli.sh policies are added, making the policy a "floater " when covering in several places, and subject to average at all tinu-s. COLONIAL rOJJClES. The Nknv Zealand Insurance Comi-any Fof Fire, Mar'i i\(\ and Gcui'ral Purposes. Auckland. Established A. D. 1859. No. 40«. WllEKI-AS, Sum insured, £ Premium £ ha — - paid to the "New Zkalanh rNsfUANCK C'l'Mi'ANv" the sum of , beintr tlie Premium on *:lie r>um insured by this policy from the day of One Thousand Eight ITundrcii and , to the day of One Thoti.'iand Eight Hundred and , at four o'clock in the evening of tliat day for the Insurance against Loss or Damage by Eire of the jtropcrty hereinafter dcHcribed, to the amount hereinaiter mentioned. I COLONIAL POLICIES. (Leac/ription of the Property :) 167 N.R. — If is liert'by dei'liired that if tlx- ii«'ue Thousand Eight Hundred and -Manajier. SKAL. 407. CONDITIONS AND STU'l'LATIONS RKFKIUlKlt TO IN THIS POI.tOT. ~ I. That ujKHi the Insurance of any proporty, wiiether hnildinj^s, or goods depo.-iiti'd therein, the applicani siiall stale his name, reaidence, occupation, and the nature of his interest, and specify of what iiuvlorials the Walls and Roofs of such Buildinjis are respectively Cdiistnicted, where situated, and by whom occupied, aiiii wlu'tiier as private ivrellings, or how otherwise, whetlier any Mamifntnre or Uazanious Trade fie carried on, or any Hazar- dous Articles be deposited or kepi therein, and, if so, shall descri Ik; the nature and nuantiliea thereof; whether any Steam Engine, Furnace, Kiln, Stove, 100 COLONIAL POLICIES. Corikel, or otl\('r Api)aratiiH \vlit'rel)y heat is produced (coininon graU'H and BtovcM ill rtiilifltantiftl stone or Itrick lireplaci'S in private d\vt'llin>:H fxccptod) be frectrd on the I'rt inises, and, if ho, shall specify particiiliirly tlif nature ami c"iiwtriii.'ti(in tliiTiHil' rcfpectivt'ly , to^zetlier widi the coiiHtniction and occupiition cfconlij^iiouHor ininifdiatt'ly luijiU'cnt bnildinj^s; and it'suoii npt'ci- fioalion do not truly and ciriiuiMstantiiilly di-tcribf ilic I'rupiTty and tlif novcral particulur.i ri'srardin;; tlic HuntPja.M utbreMaiil, so that (h<- nivturt- aiul ,', shall lie helil to be InHured, at appertainiiit; or U'lon^'inj; (hereto, except Kueh fixluren ;is •'hall be Hiiecially named in the body of the I'olicy. II. That in case any allerati than may be allowed in the Policy, or in the chans;e of the nadin- of the Occu- pation, or ii' any other manner whatsoever, by which the de;;rce of risk is increased, and a consequent additional Premium would be required, anJ whether such Insuratice has lii.,.|i ctfccted on the Hui!din!» itself, or on Goods, Wares, or Merchandise deposited therein, and the Insure I shall not luive given due notice thereof respectively to the said Ctiiupany, or its Manager or Agent, in writing, and unless sucli altenitinn or addition shall have been allowtil by endoisoment on tins Policy, and such incn^ased Premium shall have been paid as niay be reijuired, such Policy or Insunuice fihall be null and void- Ill. That [louses, iJiiildings, and Goods, held in Trust or on Commi.«- eion, mu?t be insured a.-i much, otherwise the Policy will not extend to cover tliem. IV, N(j rnsurance proposed to this Company shall be in force until the Premium lu' actually paid ; ainl persons desirous of continuiiii.' IiKiirancen TDM.st ui.ike their re.-!pective payments of the Premium tliert?on, im ur before the days on which they re-fiectively become (lue, otherwise such Insiiraiicefl will expire; and the only evidence ot «iich payments sIkiII be the Printed Receipt? issued from the (Jflice, and signed by the Manager or one of the Clerks or Agents of the Company. V. No Loss or Damage by fire, occasioned by Invasion. Foreign Enemy, Riot, Civil Conunoiioii, Military or Usur|)ed Power whatever, Ivirihipiake, or Hurricane, or Spontaneous Combustion, will be made good. Neither will this Company be answeralile lor Loss or Damage to StO'ik or Hoods nf any kind, which shall or may happen to tlie same while uniiergoing any pmoese in or by which the apjilicstion of Fire-tleat is necessary; and the Policy shall remain suspendeil, and be of no effect in resjiei^t to any Losh or Damage which fihall happen or arise during tlie period of any of the foregoing con- COLONIAL POLICIFS. 109 (ingpiicics. [.noHPH by lii>;htninfi will lifi iiiiiilt' ;v>oair.iij»p happeiiiiin tliproto, oiicamonctl hy the Niitiral ITcatiiij^ of any of the iirticlos or ooiiinin, lilies so coiiiprehenileil anil in('lnilei| in i^neh In-nraneo ; hut the Ldhs on any Prop- erty ill conHei|upiiee (exivpt that, hy wiiieli ilh Natiirul Heatin)^ han U^eu the caii^ie of the Fire) will he made j^ood. Yir. That Itookn of Aceoiintfl, Wrilteii Secnrilie-", Money, Baiik-N'ote», Platc-OlnHH VVindowM, and Oiinpowder, will not he Insured or oompre- hended in any InKiiranco etlVcted hy c>r with tliif* Company; nor will any Loss or riainage, in any case, or of any de.-ii;riptii>n, he made ,i;i"K>l, when more than ten poumlH of (;iinpowiler chall be ile|»iiMited or kept uii the premiNen, unle>» the name hIiiiII be Hjieoially allowed on the Policy VIII- China, fjlass, IiOokinji-OlaHSPH, JowpIh. Watches, Trinkets, Medals, and other CurioHitie.s, PriniH (not in rrade>, Paintings, Drawiii^rs, and ScnIptiireH, are not inulnded in thi.s Insiirance, uiile«M they are sjieoiiied in the Puliey, excpplini; when insured by S|x'ci.d A^'reenieiii iindpr the lerin " I'l'isiiniil PraperUi nj eccnj Ihnrription." In caHcn of Loss, not more than £10 will be allowed on any one Picture or Print, unless a valued Cululoi^ue shall have lieen previously depositeil in the OlKcp. IX. N'o chiini .sliall lie recovMiized or recuverable if the Proi>erty insured be previously or suhsriiiiently insured eiitewhere, unless the parlicnlars of such other Insurance lie iiotitied to the Company in writing, and allowed by endorsement hereon ; provided on fluoli notice being given, after the issue of the Policy, it sha:l be oplionul with the Company to cani^el the same, returninir; the ratublo T'remium for the unexpired term thereof; and in no case where any Properly insured by this Policy is insured elsewhere, nhall this (\inipaiiy l»e liable to pay more than their ratable projxjnion of Lor^s or Daniuj^e. X. UiNin the lleath of the Assured, or the assignment of any interest assured in this Company, the Policy and Interest therein may be coniinued to the Heir, Executor, or Administrator rcsjx'ctively ; or be transferred to the Person who simll, ujwn such Death, or by such assignment, l>e entitled to the Pnijierty Insured, provided that such Heir, Kxecutor, or Admiiiisira- tor, or other Person so entitled, procure his or her interest therein to be endorsed on the Policy by the Manager or authorized Agent of the Company. XI. That the Insured susiuining any Loss or Damage by Fire shall forth- with give notice in writing to the Directors or Manager, or to the neuresi Agent of the Company, and shall, within (ilteen days after such Fire shall have happened, deliver tu the said Directors, their Manager, or Agent, as accurate and particular account in detail of their Loss or Damage re.-pec- iively, as the nature aiul circumstances of the caee will admit, and shall 17(1 COLONIAL roLiciKa. vrril'v tlie _v Holi'inii (IfcluriitMa or alliriiiutiot) U-d.r'' n .FiiKfii'p of the ri'iut«>, Hinl «hall prmlui'i' Iiih tiookx nt' itccomit, v()ii(:lii'r''.Hnii hmoIi otiicr evidi luf ii-i tin' UirectaPi iniiy i"i'«*>riably re(|iiiri'i umJ iiniil hiuIi ili'Dlum- tiuri ur iiiHtriiulioii, nccuiiiii, uiil Ih; piivtililti or fCdvcriiMt , No (iiotll of any kind into he inuluduil in hiicIi 'liinn; und if ilivre upix-ar to [le any friiU'l, ovc'ruliiir){f, inijKJftiiion, tiriiny niiKn'|irPHcntiifion ; or if tin Ftiv ^^IihII liaM' iidiipi'ht'd i>y till' pruciircMn'ni or wilhil not, nieunn, or foniiiviiiino of thv Insured or {'luiniuntw, tlicy sltall iKJrxciud'il from nil hm, tit under lliin Policy. XII. Tloit in evt-ry cii-e of I-o^h or Dnniaiff for wliioh tin ahuI (^lnl|)an7 hIiuH hv liable, the xnini', on licin;; Inlv pmveili liinl lli« auuonnti* udju^ted, 8lmll cither lie paid ininifiljiitely, at the ()|H;e of the ronipHiiy, or the rbn] Comi'HDV kIkiII liiivi' lh<' ii|itioii, vvlii re the In^iiriiner niii>' he oti (ioicU, to Hupply the lnHnitd vvilh the liki' ipiaiiiity ol' (ioo(|,-, of the -nni.' >orl or kind, and ol eipiiil Vlilne nil I ^^'lodne".-' with IIumc destroyed or dillnn^'ed liy fire; or where the Iii-nnm-e may he on llmiseM und I'.nil lin;^s, tiie naid CotiipHiiy .hIiuII liiive the option, with all cunvenieiil »(M>ed, to relmild or repair, and rein-iiite the fiinie, nnd put them into aM gnml an I -nhslanlial a eoiidiiioii as they were in at the time wlien Minih Fiie ha|)pcn<'d The asraniaj,'ed hy h'ire, nnlcH8 I In mine »|H'rty may sustain hy muli removal ; hut the (''inpany will not hill itself liahle for any Lc^s or l)ttma>;e upon I'ro|iorty removed (rum any Hnildin^; cimlnvy to the declared nenire of a l)ireetor, (.>liicer, or A:.'ent of the said Company or not ordered or sanctioned hy such Uirector, (Jihcer, or Anient X\'. If any diU'erence shall arine between thiH Com|tany and the Insured, with re.-pect to any claim lor f.o.^s or Damage hy Firi', .and no I''raud be 8U-pected, such dill'erence shall he submitted to thedeterminiii inn of Arbiters, Tnniniilly chosen, whose award in wrilinj;. or that of an I'liiiiiie previously apjjointed hy them,, shall he conclusive and hindini.' on both parties. But in no case s!iall this Company be iiblij.'ed to undertake the ri--k of the .Sale of l)aiiia;;ed Goods. The Arliiters or \')iliiers shall fix the value us i( stoixi immediately before, and the value immediately after the Fire; and the Company shall make jjood, or pay, the dirt'erence between these two COLONIAL POLirrF.fl. 171 *nm«, either by rcpairi and n'stitiiiioii, or hy payniont in cnuli, ul tlieir own .iptioti. X V'l. Tlif (U)ni|)UM.\ Mill not Ix' aiiHWorahlo for any I.omh wliin. I'lriw arc UKt'il ill niiil(|iii(;M unprovided with );ood and Hiilwlantiai l Chimtu'VH, or iii cnfiMpiinciKM' of Stuvcn or Stuvc l*i|K'M pluocd anii iHi'ii v.nn- trur\ to iiiw.or in chMfquc'iicc oi' the iiifritnii'mcnt nf any liiw in rorcc for the rill ppreMion or prevention o( Kirt'H, or where Stove l*ipt'^ nv currie in any Itiiiidin^ under eonrn or repair; or nioviilj'eH therein, wherein Curpeiilern anil .loinecH are employed, (iiile'-N the H[)ecial CoiiHeiit of (he Coni|iuny U' tiri.H. This is evidiMitly a " mutual cnmiuiny," the .seal bciiifj; iisod ns tnidniice (if ronsideviitidii, fht; futiirc jtvotiiiiims bciiij.,' ui)|)aid. Tho coinpany is for "fire, luiirine, mid (jciieral pvrposen," uiit what tiiivy he utiihrucod in " goiiural imrjiost^s" tho itolicy fads to dt'sionat.c ; Init, IVoin the chit/ atVnrdfd hy thf wdi'd " ivtniDtuililrs," near the ch.)S(,' uf the; tirsl soctioii of the C(iri(htions, it may sij^'iiify that })roperty, both Vhomhle and immovahh, will ho covorod hy their ptjlicies, as in the Ftvncli companieH having the tt^rni generale applit;d to tliciii (le proportion. ]Sii)tir': of loss must i)e given forthwith, and proofs, and vouchers furnished in fifteen days. No forfeiture in Ci)se of failure so to do ; lu.ss not payable until the pnM.fs and vouchers are furnislicd. Reinstatement, as customary, with the very proper addition that " where, in oon.'-'(iuence of municipal restrictions, build- ings cannot he reinstated, the company shall only bo liable for the aiiiMUiit that \'oidd have betu re(iuired to reinstate the building, had it been lawful .so to do." There arc rulings in thi.s country to the contrary of this stipulation, but i\o such ciui'litimi was in the policy. (I.S47.) Remoral of property from a building not on fire, contrary to the advice (jf an officer or agent of the company, relieves the company from liability on such property. ApprdiKement provided for, but " in no case will the com- pany be obliged to undertake the sale of damaged goods." This is simply equivalent tit no '• idiandonment." liiiiJdcri' rwks, while repairing, not ctivered unless specific- ally agreed fnr. J/iiiiitutior, ofa(:tion>^, si.v montln. COLONIAL POLICIES. 173 JD araf inn nf rink. — Tlom of teriniuatioa, /oitr o'clock i-. M. ; no huiir of cornuiencernoiit luirned. Average. — In case of any co-.i. ring policy being subject to average, tJie poHc}- of tbis company sball also be so suliject, rACIFlC FIRE xVNI) MARINE INSURANCE CO. or smxEY. Tacorporated hy Act of Parlktment of N. S. Wales. Preraiun), 20 Victoria. Fire Department. Amount insureil no. Tius I'oLicY OK ]v.sui!.\n^i;b Witxessetii, tbat baving j)ai(l to tl.o PACIFIC FIRE AND MARINE INSURANCE COMPANY the sum of , for tljc insurance againt Loss or Hamage by Fire of the jiroporty herjinafter described, to the amount beiein- aftcr nicTuioiied, not exceeiUng upon any one subject the sum specilied thereon, umnely ; — {Describe the propertij.) The Pacific Fikk and Marlke Insurance Coaii-anv do hereby ngree, that from and including the day of , until four o'clnok in the afternoon of tiie day of , in the year of our Loid One Thousand Eight Hund.eii and , and for so long after- wards art the 8iiid Assured, bis or their Heirs, E.xectitors, "r Ad- ministrators, shall from time to time ])ay, nr cause to b'j paid, the sum required for 'dit; renewal uf tliis policy, and tbe said Com] )any shall agree thereto by accepting the same; the said Cduipaiiy sball. sidiject to the conditions and stipulations endorsed hereon, winch constitute the basis of tbis Insurance, be .subject and harde to ]»ay. reinstate, or make good to the said Assured, hi; ov vheir Heirs. ExctMitors, or Administratois, such loss or diiMivge as shall bo occasioned l)y V\a\ b> the Property above aieationed and h(!reby insured, not exceeding in each case res|Hi'tivcly the sum or sums bereiidiefore severally' spe- cified and stated against each property. ||roviHcrt aUr«i|,«. and it is hereby declared and agreed, that this ( 'omjinny shall not be liable to niak(! good any Looses or Damage by Fire which sball happen or arise I)y any foreign or other invasion, or eneni}-. or by any Insurrectinn, Riot, or Civil Commotion, or Military or Usurped Power, or by any Explosion, Earthquake, ■pp 174 COLONIAL POLICIES. Volcaiiii, (.r llnnicine, or by Lightning, nnli^ss the projierty insured ,-hull be (uitnally set on Hre thereby ; and the Policy shall remain suspended and be of no id'tect so far as concoi'us any loss or daiuai'.e wliicb shall iiappen or arise during tlie perioil of any of these cnntingencies. Any eondition, alteration, or inennirandiiin endorsed by tho Couipaiiy on this Policy, or insertt'd by theni on the margin thennif, siiall have eijual force and efleot as if the same were inserti'd in the body lA the doeumejit, ^n uititros' U'hfvcof, we, the nntlersigned, as the true atid lawful Agititsand Attorneys of the said Comjiany, and in their nanu- and behalf, have subscribed these presents this day of , One Thousand Eight Hundred and -- , Ayent, 411. ruK ('(iXiiiTit-NS AMI sTM'ri.ATioNx kkki';kked to in thi« roi K'V. 1. V\nin the Application for Ini-uran<;e oi any propt-rty, wlieMicr of Builiiiti^^-i or (..f Gotuls liepoi-itcii ilifroiii, tlie Apj)lieant shall mate liin name, aililic'i^.* and oocupauoii, ih" natnrf ot his Intero^t in aini the particnlarK of the risic ; tbi- e\»in[)le, a- U< BiiiMins;-— the siinutic n, construction, and occ:!palioti tliereol ; thi- nalnrfni die Im-iness, ii any. ('arried on, the liescrip- tioii of the Article!? depoxteil in, and the iiii|>h'inent,s ur a,)paraI\l^^ of (Ire heat coMtaiiKd tliereiti — common Grates and Moves in -nbstantnil .Stone or Brn Ic til-, phie.es in private dwelling houses excepted ; to^retlier with the c(jn- strueiioii arid oceiiiiation of eoiitigiioii~ or immediattly adjacent Imildinjis ; and (IS to (u'ods — the iiatiu'e ihoretif, toi^elher with siniilar jmh < i.nlars resjK'Ctinj: the hiiildiiijrs containing them, and of adjacent or ('ontiguoua preiiii-^es .i> jihove specified: and whether as to liniliiings or Ooods — all other tacts re(|uisite to enaiiie the (''oiii))any to estimate the risk- And on any chaiji"' or aliiratioti tfikingplace in the risk as to the aliove-inonti'ined par'icnlarr-i or any ol them, during the continuance of this Folic)', the liahility of the Company -ihall !« tlierehy terminated, until the Injured Mhall notit\ the same to the Maiutjrer in Sydney, or the A>;eni of the Conipanv where the Fn.-iirance was etlected.as ihe case may lie. aiidohtain an endorsetneiit on this I'oiicy, duly signed by theManat;eror Anent afores'aii, and shall pay HUch increased premiinn, if any. as may Vje rtiuired ; and in case of error in, or mifirepre-cniation or suppression of any of tlieal'0\e particulars, whether on the orii^inal pro|K)>al ff Awmint, M»tin-«cri}>t.-<, Doeii-', Bonds, Rilh, Mutes, Mort^aj^eri, or irtiier writLeti seciiriiifS, rj*^ Money, can he comprt'lieinleil in this policy, on .i«y termi* ; an^i the Coiiiiwury will not be reo\)»\M*i\)\c fur any liWH, where iiif>ri' tlian micU weiirht "f (riiiifxiw.ier (i-* may be jicrniitled by any Parliainetuary or M*"iicipiil Aot «tiall iw rj^piwitcd or kepi, on the pre- mises. IV. No Machinery, Pixtari(->, Watches, Tri.ikets, Plate, Jewels, Precious Stones, Oniiiineiits, Musical Iiistruiuents, Picti\res, Print-, Drawings, Medals, <,r other articles of bijouterie i>r vertu, shall be included in thi.", Policv, unless specified therein, and where so specified no inor.' lliaii X'lb shall b(! recovered on any i.iiie article unless separately insured. V. No clai-n shall be recognized in re.speot of this Policy, it'ihe property Assurid tliereih be previously, or shall during ihe contin\mnce ol the Policy becoiiii- Insured elsewhere, unless llie particulars of such othei- Jii-uiancc be notiiie I to the Company in writiu.;, and allowed by enilurseui'iit hereon ; provided, however, thai on such notice being given at any time ul'tei the issue of ilie Policy, it shall be optional with the Company to cancel (he same, returninj; the rateable preiniuin tor the uiie.\pired term thereot ; iind in case vt' the Assured hoiijing any other Policy on pro|jerty in the same building, subject to average, then this policy is declared subject to average in like manner ll is lurlher understood that in no case where tlie .'^aine property shall be insured in any oth'T otHce, shall this Coni|iany be liable to pay more than their rateable proportion of such loss or ilaniage as may be sustained; and the paynieul of any premium for any S'lch Insurance shall be held to be conclusive evidence that the same has been elfecteii within the meaning of thi- clause. VI . The polii y ceases to he in firce so far a* (Concerns any prop'rty hireby insured, which >hiill pass from the InsnrtMl lo uny other person otlierwise than by Wiil or operation of law, unless notice thereof be given to the Company, and the snb-istence of the Insurance in favor of sii'b other persf'u t)e declared by a memoramluni enduised hereon, by or on bthalf of the Company, it they shall see tit so lo do ; ;ui i in the event of the removal to other preini-'c-'. of any gools or elfects In^'un' i by this Policy, the letter shall thereiip wi expire, unle.-js such removal be similarly allowed liy eii- dorseiii'nt . \'[|. I'he Assured by this Policy, sustaining any los^ or damage by tire, shall forthwith give notice to the Manager of the Company, at the Head Otlice in Sydney, or to the recognized Agetil thereof, at or near the locality 111 which such loss or daiiiaije shall have occurred, and shall, within tifteen days after such (Ire .shall have hapfK-ned, deliver to such Manager or .\gent as accurate and particular an acco:int of such loss or damage as the nuiiire and circumstances of tin- case will admit, and shi'.ll verity the same by solemn declaralion or alRrmation Ik'foro a Justice of the Peace, and produce his or their hooks of acco'Wit, vouchi rs, and sucli other evidence as the Directors may reasonably require; and unless such account, verified a.s afop said, shall be delivered within the time aforesaid, and uiiles>< such other evidence, if reijuired, shall be pnxiuce 1 in luaimer afores.aid. neither 176 COLONIAL POLICIES. the wliole iu>r any part of snch Iosh shall he payable or recoverable. No proiic of any .sort is to be inohuleil in tlieclairn, and if there appoai- to be any fraiiil, overcharge, or iiiipoHition, or any false ileclaralion, or if the firf> HJiall have happetie.i by the procurement or wilful act, means, or connivance of the rnsnr"ii, or elaitnani;', no benelit .-^ball Ui recoverable iiniier thi.-< F'olicy. ^'111. Ill case of losfi, either ax lo BiiildiniTH or (roo'lfl, it nhall be optional with the C'lmpanv, either !o pay the ainonnt thereof when duly ascer- taineil, or with all convenient . p;i.il to iimke good euch lo.sn by rfin^tate- liient ; and in the event of such reinHiHtenieiit being prevented by any BiiiMiiij; Act, or ,Vcl for regulating the Alignment of fJtret'ts, or otherwise, the Company hIihII only l)e liable for»tnible for any lo.ss or damage to property removed from any Uuiliiing (nut actually on fire) contrary ti) the declarcil desire of an} of their OUicer.'^ or Agents, or not eani'tii^iieil by any such Orlicer or Agent wlu"i present, and in it -situation to be coii.siilteil by ihe A.^.-ured, X. The .\gent-i of the C.'mpan" whall in no ca-^e ije made personally resp,in-iblt> uri account of any legal or otlifr inve-itigation winch tlii>y may lliid it neces'^ary to instiliitc, tor the .«ati- faction nfthe diiipany, nor f'h.ill (heir personal pro[»riy be iiltuclu'd on account r.t any alleged lo.s.s by the Assured. And in case any pincec ding shall be commenced again.st the Agent by the Assured, no beiiflit .-hail lie recover.ible by him under this Policy, and he shall tiuir>'i.\('r be re-|ionsible fur all expenses iiiciirred in oonsc(|uence of such proceeding-. XI. If any diti'ereiice siiall arist' with respect to any claim iimler tliis Policy, and no fraud he su.spectrd, such ditlerence shall be reterred to il^e decision of two inddlerent Arbitrators, one to be chosen by either side ; and such Arliitrators shall, before proceeding on any reference, ciioose an Umpire t.o bi- called in in ca-e of ditlerence. and the award in writing ot such two Arbitrators, or ii case of siii;h dilli'ivnce, of their Umpire, shall be final and ooncluciive upon the Company and the Assured. KKMAUKS UPi^V THE POLICY. 412. This is evidently an aijeiwy form of policy, as it i.s to be valid wlieii .signed by the lawful attorney only, no oflieial name or Jianie.s appearing to aiitlieuticate it. The Llay, ])ut not the liour uf coiumenceinent of the risk, i.s given; the hour of tenniiiation is four o'clock P. M. Exceptional riskx are exploniou.s, earthquakes, volcanoes, and hurricanes, tho policy being 3u.^j)ended so long as thest; coutin- gencit'.s niiiy be ojierative, THE ENGLISH AVKRAGE POLICY'. 177 Application in effi'Ct i\w same as the Now Zealand Company ; a liitlc loss miiiuto and uxactiiiL,'. Fremiain. The printed form of reixij,!: oi' the company, only recognized as evidence of payment of premium. Othur instirance must l>e noted ; when it contains the aver- age clause, tlie policy of this company is also made subject to average. Tn case of loss, company pays its ratal.)le ju-opor- tion. Comjmny may cancel if consent for other insurance be refused, Alienatutii, otherwise thaii by wili or action of law, voids tlie policy, unless consent is given in writing. Notice of loss must be immediate. Proofs of loss must be sent in within hfteeu days, with necessary vouchers, (.'hum nut recoverable " if not produced as aforesaid." Reinstatement same as New Zealaii I policy. Agent uot responsible for legal investigalion for losses; where proiH'.ediugs may be commenced against agent for such cause, claim shall n(*t lie recoverable. A precaution against actions for lil.iel where agents and adjusters may have occasion to :c', if iIk' property- -<> covtri'J shall, at the hreakiti^^ v\H of mi}- lirt-, he collwilivel)' of gri'alor value tliHii the wiiiii insured tln'ioon, iheii ihit^ Company shall pav or make jrooil t^UL'h a proiwrtioii only of the lo."." ^r ilamujre an ihesuiu .-o iiirtiired ftluil! hear to the whole^ value of the saiti property, at the tiini' whtn Hiicii tire nhail (hM iiuppen. 41.">. 11 —Hut it iH at ihe >'iuiie time deelarnl ami ugrectl that if any property includtii in such A\eru>;e .«hail, at the bieakiiij; out of any fire, lie in.sured by any other [K.licy which, whether bubject 'o Avrragt- or not, (shall apply to part only of the buildings or places, or of the property to which such Average extendri, liien tii'-^ jioiicy nhall not cover llie name, excejitiug only at* regards any excess of value bevond the ainouutof such more specitic Insurance, which said excess is declared to be under tlie protection of tbiii I'oliiy, and subject to average at aforesaid. 410. IIJ.- And U. is further (leclaretl and ugreed, that if the Assured sha!l claim under this i'olicy for loss or damage to property embraced in the terms of any Average i'olicy, extending as well to other buildingM or places, or to other property not i!icludeiiid in Aiufi) 'a ; — I\'. — "In case of the a-^uled holding from I iii^ 'T any other fJompany any policy subject to average on lii.' pioiierty covered by this insurance, then this jMjIicy shall be .-object to average m like manner." ■IBS. In reference to tliif, fourth clause !Mr, Bunyuii says — " Theju'tice of this la^^t clause is very doubti^ii, as it may he co»>feiided that the ddigenceof another set of insurers ought not to imjKjrta ire^h term into a prior eoniraci to ijie prejudice of the insured." He then illus- trates by e.tample how the insijred UiUft be a ii'ser when he should not be 41SI* The late Mr. Hore m hi«; " Apportionniont uf Fin; Lu».se.s," albo say.s of it : - '• 1 confess to a feeling of doubt as to the legality of the condition al>'>ve retv.redto, because it may operate lo the prejudice of the cdainumt, and III 3 iikt loser. loeer at times wiieti it is clearly iiiev|uitable that he .-ho'ild l«.'a CONTINENTAL FIRE POLICIES. 179 <120. Tlie Jird of these (.'laiisf'S is the simple co-inaurance stipulation (JiOll). by %vhicl» tht^ iii.surodbeai's a sliare uf the h)33 over in the propnvtion that the excess of vahie of the property bears to the total unionnt <.)f (average) insurance tlicreon, 421. The second clause is tlie English rule requiring spe- cified ))olieie8 to he first exhausttid in the paynie.nt of loss, before the average policies can he calleil upon to contriljute. It was to meet this inequitable practioe that clause Jour above cited, was introduced. 4!S2S. The third clause was introduced to meet a difficulty in the adjusinient of h)sses under the average chiu.se, where exemption was daimed on account of a "greater range" (2SJ), tliougli in some of the places named there was no jm)- perty at risk. Under the operation of this tkinl clause! no such claim would lie allowed. 42:t. The oViject of this clause, and the evil it was intended to circumvent, can he well understood from the following excerpt from an ariiclu in the London Astiurnnce Miujaziiie, by Mr. Christie, then of the Sun Fire Oltice; he says : — " ['"it wcrp piimibli' til re^citnl tlio lute ri'^eliitionH ('tKit.ati i ftlii'avv firy were to uccur, Nvf sIkiuM have tli*' nlil (|ii('Ntioii ol rHiij^i's reviveit -wlncli i^ the ^^rcator, i\i\A wliieli the lost- V Tlie laic Mr. l.ii'.hter taiule n liitppy liit whet! he iniitfil ihul if tho office!' witc (o jjo a-till in this mamiei'. and eiii- brace what wiis noi i'ltiMide 1, .siii)[)ly to exhihit greater range wiiliMit the rirk of it, hi' Moiilii i)uiv»ll_v iiu'liiiie a oliiiri-ht— a lievieo which few woittil think of ill coimnoii \Mth tlie worldly atlairn of insurance, until the Uws, nnd the digree t)t iinmniiity from lialiilily which the w<'rd;n'.' conferred, revealed it to their woiiderins; eyes. Thus away would I* again ofietied up to an unpcrnpulou." ofliee, to set at naught tlie morality, 8o to .■•peak, of insurance practice."' {'JUlli.) CONTINEXT.VL FIKE rOLIClES. 124. In their general sctipo and character the fire policies in use by the Coniincntal nations do not vary materially from thd customary f(jrms, though tiicy j)resent some [leculiarities not found in tlie English or American contract, particidarly as to a more definite declaration of the 'rights of the company. The printed conditions of insurance precede the written body of the policy, and in France the insured must sign his name to the conditions before tlie contract is completed. (110.) 180 TUV. FKENCII POLICY. The policy usually ruii8 for ten ynirs, with tlio proiniiims paytiblf unmirtlly. And the conditions of tlio contract are drawn with a speciul view to the collection of the pit miunis by the companies. They will ajnjily rejiay a carefnl study. 425< Hertiwith are presented foruis of C'onti)i(Mital policies as fo'k.w.s, viz. ; — 1st. Fkknch. 2nu. German. 3hD. II.\MnURG, For whi' h wo are indebted to the Covimiltcc ov Faniift of Follii/ of ilu! X.vrioNAL BoAiU) OF FiKK UNiJKinvRiTEKS, nnder who.^e aut-pices they were translated. In the Gtrman and Hdinhitrg forni.s will be found a vi.siblo improvement upon the Amsterdam form of A. n. 17-)-4. 120. THE FEENCII T\)LICY, THE I'NIOX KIIIK INSIKAXCE ColHI'^NV. Chartered bth October, 1B28. ; Hcvpnue ; ; stiiiiip : No. .'^;,,n25. A.viorNi In.-jureii, Fr. 48,000. Prk.mii'm, Fr. MT.fiO. CTTY OF PARIS INSURANCE POLICY. Mr. KlTTKR, TKRM, > TEN VFAfl-S, From I;{Fel.., IS&r, Ttpl3 Fvh,, lf<67. GENERAL CONDITIONS. AitT. 1. The Company iuHuretJ tlif personal ami real pnipcrty ilcscnbai ill ilu' pre-em Policy afiainht damage by Fire, even if (he fire f-'hovild be caused by lisrhtning. Tlie Company inRiirep, n)orfover, in oa.se of fire, the followiiig risks, when the t^ame are stipulated iti the Policy, vi/. -. Tenant's Risk.t , that is to say, the ertects of tho reeponsibilitv ibr which the party insured is lial.le a.s a tenant, according to yXnicle-i 17;!.'? and I7.'M of 111'- Ci"le Nii|X)le(jn. Claims itf Ndiihhors ; to wit, the consequences of any action that ntdglibors may take against tiie insured un the plea of couiniunu'ating lire to their proiMTty, !i.s provided for by Articles Nos. Kib2, iWii'i and 1384 of the same C>.".le. TIIK FltKNCH POLICY. 181 Claims cf Tmuint.-- lUiaiiml. the lymitr, lor ilaiimL'C cansoil to tlioir riirni- turu and ^! 'cxiw, in (loconiuiice with the canes lirovided for by ArliuleH KW6 and 1721 of the naino CikIc. Akt. 2. Tlie Company will not he responsihie in case of Uro oeea-ioned by war, invnsion, riol, military force of any kind, voleanoc." and earth- quakes, Art. 3. The (company wili not inaur'- storelionHes, or magazines or iiiannfactorieH of j^unjAjwd'-r, deeds of all kinds, precionH Mtoni'.* and jewels, gold and BJIvcr bullion ami coin. In c.iwi' of explosion or deton.ifion, even wiien caused by li;:hlnin!:, the Company wdl not be responsible (or the damai^e resnitinij therefrom, but will only ^narantee to make goo<) the ilamage from fire oauseil thereliy. Tlie Conjpany will not be respoiwible for arlii It-s lost or stolen, nor for laces, cashmeres, jewelry meibils, plate, piotnris, statues, and oren'Mully all rare or precious artiides, whether moveable or fixed, unless the same shall be insured for spivial and sp,'citi(; sums. The (Jom]iiiny will bi; respon-ible for material ilamage only, and shall not be held to i;rant any indemnity for chan^^e of street line, lack oftenantHi or ]irii(il, eancelment of leases, ino(!eu{)alion, cessation of labor, or for any other loss not material All the above exeeptions shall apply itpially to the insuranoe of the risks mentioned in the .'ird. lib and 6lh paragraphs of Art. I. ARr. 4. 'I'hc Pisuriine*' shall in no t;ase result to tlie protit of the party in-urecl, but sli.iH i;u:iranlee to bini only iiKleinniiy for suiih aetual h'lS as he may sult'''r; ronSf(|iii'nlly the parly insured shall not be fiitilled toe-it'' or give as evidence tin amount insured, the premiums paid, or tin- designations and valuiitii>ns contain. -il in the (wliey, as an ackuowledgmei\t or proof of Itie e.xistfiiCf aiiil value of the articles insured, either at the tin>e of contracting the insurani e or in ease nf fire. Arrr. ;'). Premiums are payable in advance at tlic )u>ad office of the com- pany ui Paris No receipt fir premiun>s shall bo valid unless mentioned m the policy or taken from the register of renewal ro(;eipts with countfrparts. The first year's premium must be paid down upon the [Kilicy being signedi from which time the insurance shall take immeihalo effect, or the pri'miuiu for the first year shall lie paid upon tiie day that the insurance commences. In all cases the pdiey siiall not be binding until after the pnymcnt of the first year's pretnium. The simple payment of lin^ pntninm before the policy is signed shall not bind either the applicant or the company ; and they shall only he bound after the policy iw sigijed by botii pavties. Art. f). The premiums for Ihe years sub.sequenl to tlie tirst year shall be paid at the latest within fifteen days after tlie same become due. In drfault of the pavment of any one premium within lifteen days after due, the force of tin insurance shall be suspended without it being ner.ossary to make any demand or legal summons for payment, and the party insured, in case of loss, shall not be entitled to any indemnity. 182 T»K FRENCH POLICY. TJip insurance oliall rPinRin suspoiided oven dtirinj; llic procfwlinjjs lakrn bv tlp^ ciiiniiany to collect tin' oveT-iliif prcmiiun ; l-ul llir policy nlifill in all CHHfiH liciMiiii' a>»ain valid, datin^t from ikhui of the liuy t'ollowing tliut on whicli tlie pnynicnt of llir ovpr-iliie pretninin, uml tiie oostx, if any, Hliall lie Timdc to iwid iicccptt'ii li} the cinipHiiy. It ih niidt'r''loiNl tliul llic payment of an o\er-diic preiniutn during or alU-r a fire nlmll not. give tlie j)arty inMiirtnl any ri>;lit to indetnnily. Ilie collection oftbrrniT )iienMiuii« ruftilr by tlit' company ul llie rei»iilen(!e of parties in( cou^idertnl tt8 legally cancelled until one year after the last act in hucIi priH.-etrt at law. Akt, 7. 'I'hc party injured miixi declare and cause lo he htated iti the poVwy, iiHiln pi-nally i,f ti>rf''itii>|irietor to cvecuie the policy, Othervviso he nhall pay the company, in addition Ui the premiums due, an iiideinriity ecpial to une year's premium. In ca.-e of death, nale ur deed of itifl, the heir" or in'W jirnprittur fhall dt dare their (pialifioatioiiH within one month lullowini^ ihe death, sale or deed v)f gift, and cause such declaraticm to be mentioned in (he policy. In ca.-c of di<,»olution iif oo-pailiier.-hij', Hir-p'iisiun .if paymci i ur fiiilurc, the ptiriy insured or h\c aPt'i^nw are required in in.nieilmtely declare such ilis'-ointioii of co-purtiier->lii]). .«us|uied, or containing properly injured, which 8hall multiply or increase the risk. Before erecting in such buildings or in contiguou.s buildings any factory, works or steam en}?ine, or establishing any trade or industry ihat i-hall increase the risk from fire. Before placing in such building provisidus, gixids', or any artiiU-s whaiso- erer whicli migl,t add to the perils of tire. Before transp(,rtiiiL' the property inmrid lo a I'hice otlnr than lliat designated in the policy. Before translerring ihe ir.-urance on tenant's risk-^ and cluim.s of heinh- bors from one place to an Hlier. THE FHENCn POLICY. 183 If Imil.liiigs roofed with woixt or lliatoli, u tlii'atre, fnctory or foumlry hIkiiiM Im' ereclcil u|Kiri |>rop < Mtiil^lii^liiiKiit Biiii ootiitnioiioii urmich hiiililiiij^H, liiiil caiiHi' hin ili'chiratidn to he imti'il oil the ]H)h(!y, nnd pay m> additional |ir«'iniiiiii. AiiT 10. If thi' party in-^nrcd sliall liuvo cuvercil 'he jiniperiy upccilifd in tliJH in^iirunce jjrior to the datt'oftho prcfiMit policy, or if h<* mIuiII ciih- friiuiMitly finarantet^ mich pro^ioriy for whatever ('auHfl and atiunint whaift^- ever in any nititiiai anMociati'>n or liy any iiniierwrilern of any nain(! or denomination, lie HJiali deidare th' i-unic and eaiiwe it lo he noted on the policy. If tiie party iii^iirei{ -iiall Imve previously covered, or if he xhall (^iilfe- quently cover articles oilier than tlio-e inchilcd m thin insiiriince, hiit form- ini; part ol one and the Mimie ri-ik, lie ■■liall likewise lie required to declart^ the fad, and cause the same to he nuMitmned in lie- policy. . • Aiir. II. ITiKJii receivinj: the declaratiuns ret|uired hy Arti(des 8, 9 and 1(1, the company rt!;ivi;ig Hini|ile notice to that ellect, and the preniiuiiirt ]iaid or due nhall belong tc* the conqiany. In lefaiilt of recoiviiij; Mich iholaratiouw within the time Hpeciliei], and of the mention of the Hanie on the policy, the inHuranco nhall he -nuiKMided, and the insured, his representulivef or ansii^iiH, -ihall not have any ri^rlil to indemnity in ca«e of tiro. Akt 12. All ccmcealiiient, or false declaratiotiw on the (.art of the in- pured, teiiilini^ to diniini.-loy all means in lii.s power lo arre.^t its proj^rens aiiil save the jiroperty insured. The company will take into account all damage an! coat occasioned ''V removal, on proper proof. 'i'lic party insured is reijuired to give immediate notice to the manager in !*aris, in case of lire. Art. 11. Immediately al'ter a tire, the party insured shall make a deda- raiioii of 111 e «ame, at liiw own co.^t, heiore the .lii-tice of the I'eaoe of the dictrict, and this declaration shall st.iie the precise time of the occurrence (f the lire, its duration, the known or presumptive origin of the same, the UK'rtii!) taken to aric.st its pro^^res.s, as well as all other incidental citvuia- stances; and nhall alsospecity the nature and approximative amouiil of the daiiuige sustained. A formal copy of this iieclaration shall he forwarded to the company without lielay. The party m.sured shall further be re<|uired to draw up and traii.sinita statement of the articles burned, damaged and saved. If the party insured .shall not transmit the documents required by the present article within filieen days al'ter tlio occurrence of the fire, he shall lorfeit all riylits and claims n|,on the Company, unless in the ca.^e of proof that he was uiiahle to ilo so. IMAGE EVALUATION TEST TARGET (MT-S) 1.0 f m I.I l!M 2.0 1.25 1-4 nil 1.6 6' Photographic Sciences Corporation ,\ s V ^^ \ \ <^^ 23 WEST MAIN STREET WEBSTER, NY. 14580 (716) 872-4503 O^ 6^ 184 THE FRENCH POUCY. Akt. 15. ' ^ase biiiltlin^'< insurcil by the cninpaTiy shall Vio dniiingpii or iie((l \>y onliT (if l\w iiuthoriticH. for Dii' purpiHC of clieckin;,' tlie pro>:rens of u firp, in Hiicli cn^e \ho coinpiiiiy will rnak*- ):o(vl tlip Ikhh Art. 16. Tlu' in^^ured hIiuII lie rennirod li^ prove, liv nil the imciiiih aiiliall kncwinjily exaggerate the amount of hiri damage, or who shall aKSunie articles to have been destrnyed hy the flames, wiien they did not exipi at the lime of the lii'e. or who shall ini^represeiit or remove a [lart or the whole of the artifilet- saved, or who Hhall present nntnie and fraiiilu lent diKtumeiits and ineaim h» evidence, or who, fiiiallyi shall have willingly cau-eil the iltsii ucition I'v (Ire of the pro|)erty in^'urcd, ^liall forteii all rights to ind<'iiiiiitii';uion, and the (:om|iaiiy nliall Ik at lilierly to caneel all the [xilieiefi that it may have grunted to «aid inxnred. AuT. 17. l»ainagcs tbr loss hy fire shall Im' adjusted either hy private agreenif'iit, nr he appraised after investigation liy two experts seleeteil hy the [ii.rties, either on the -ipol or elsewhere Ff the experts eannot agree, they shall ehoose a third arbitrator, the three acting in common acconl, the majority ruling. The parties may recpiire that the third arbitrator shall he chosen at a [xiiiit other than that where tht" parly insured may reside. In case either of the parlies slmll tail to appoint his artiitrator, or in ease the two expert,s shall neglect lo name a third e.xpert, the same shull ho a[i[yiinted, at tlu' reijiie-it of iIm' iiiout ear-ie'-t of ihe two parties, by the I're- .sident of thi' Civil or ("ommeroial Coiiri of the dixnict. In all eases the cost of appraisement sliall lie home etjually — onedialf by tlie company and the other lialfhy the party insured. Art. IH. Heal property, exclusive of the v.ilne of the soil, and |K^rsonal property shall be appraispii at iheir actual value at the tin-' of the tire. Provisions and goixi shall he estimated ;it the prii'es current on the day of the fire Articles and gooils in course of manufaclur'' shull he apprai-ed at the rate of the raw material, with the addition of the cost of manufacture, up to the date of (ire. AiiT. II'. If it should re-ult ufH^n valuation hy private agreement or from the appraisers' formal valuation, that the value of the projterty insured is less ilian the amount insured, ilu parly insured "hall he entitled to recei\e compensation only for the actual and proven Io.«h. If, on the contrary, it should appear, that the value of the property covered by the policy exceederoj,ortion of the los.s adju;-ted, acconiingto the condition.^ of the presf lit [lolicy. TIIK FRENCH POLICY, 185 In no case hIibH the compHiiv be r»'qiiiro(l lo pay more tlidii llie pum insinri'il hy it, ami itx ^liiirr of t)ie cost fif HppraiMonuiit Art. 2ii, The iiisuroii shall not nial<(> any uhaiuionnient, oillifr tnial or partial, of the property inmired, whether (Jania^ed or luulania^reii. I'he coni|paiiy flmll be fiititleil lo lake eitln'i or a jKinion of tiie (laiiia;;eil properly and nialerialr' appertaining to liurnni biiilclingM, al ili appraiced value. The ooiii(iHiiy may, within a perioil Hpecificj by the arlnlratnrK or fixed by privau- agrecnieiit, oaiiHe any binldin;; damaged or roc.eedings against the party insured, whose buililing communit^ated the tire to the other , but ibis shall apply o.ily to real and immovalile properly. Art. 2.3. The amount of the adjusted damage is |>ayablc in cash, at the Head Otiice of the company. After a loss, whatever may Ix' the amount of the damage, the company may cancel tlie policy, either in full or partially, by a simple notice to that eti'ect ; the premium or premiums paid l)elonging to the comjiany. Art 24. All suits for recovery of damages must be brought ivithin six montliH after the date of the tire or tlie last pa|)er sent in regarding the olain>. Conseipiently, after the expiration of that term, the company can- not be required to make any com^xMisatiou. 186 THE FltKNCH POLICY. UKMAHKS. •I2T. " Clalin.H of frtiatds," "claims of neighbors," " ten- (l)its' /v.s/iw." — The Code NajHtlam niake.'^ tin; paitv uiion \vli(i,se premises a fire origiiiaU"j liaMc to liis teiiaiils and his n(;ighl>oi'.s for any conscijucMit ilaiiingi'. The lossoi! or " ti-nant " of a lioiisu is aii^werahh- for a fire, iinloss he can prove that it occurred by acfidi'ut, fault of constructifm, or a muse beyond his control. All of thivse coutin>,'en(Me.s may be provided for liy insurance under clause 1 and clause 21 of the jtolioy, Skc. 4. This is a siiimlation which is held in this country and in Kn>,daud, to he luiplied by the nature; of the iiuntract. Sko. 8, In cases of alimuttiou, notice must be given and the purchaser must sign the ))olicy ; failure so to do forfeits to the company the amount of one year's j)remiura. In case of disso- lution of partnership, or failure, notice must be given. 8i:c. 10. CtuweUatlonx caused liy act of the insured — no return jireniiuni jiaid ; when company .) Sec. 10. Second clau.se is the co-insurance clau.se. Tliird c1au.se IS the contribution clause ; " due proportion of the adjusted loss" is to be paid. Skc. 'J'2, In case of pai iai loss, either party may cancel. If loss exceed fifty per cent., the jHiIicy is cancelid. SEf. 24. Limitation of actiiju, six months. 4t8H. All policies are taken for ten years. The policy is a lien upon the property for premiums. Commission to agents is /(f<» fall ifi'iirfi' jircmium, with no int<;rest in renewals. All eubseiiuent i)retuuim.s are payable at the head otUce. (JF.HMA.N FIKE POLICY. 187 THE GKJiMAN IMKENIX INSUPANC'E COMl'ANY OF IKANKI'OKT-ON-TIIF-MAIN. ""^•^ 4311. The conditions or articles of insuranct; lun-c, as in the French policy, precede the contract. UEKEKAt. (.'ONDITIONH. Artiii.i.: 1. 'I'lip (Miiiipniiy inniircM a^aiiiKt ilain.'i^o by firp, iiikI >;u!iri.nloeH not oiil\ inili'iiiniticiitiiHi lor attual niiil (lin-ct i|iimti(;c hy liri', tint iisin'eH, morcuver, to nmkf j^im.! ull loi-8 that may uc'iMir lo tlic proptTty innii 'ttl by liglitiiiiiif, vMitcr, (laiiia>!i- in utteinptiiig to save and remove ^olmIs, a-> well as tl)(> value of mi-'-jiii;: iirlicle« ii|kiii pro|K'r proof. Wlicri biiiUliiijrs inJiired by ihf coiiipaiiy .-hall be torn down in ca-ie-< of contliigratioii, by order of the comiieiciii authoritieB, the company will make good llie Io.h." to the insured. The t'Ompuny will not make f;o(Hl any loss b} tire rcsulliiij; from ibe effectH of Wiir, military lorcen, rebellion, riot, illenul force, earthquakes' volcanic ernptionx, or firon^ neplect on the part of the f^ri^on or p>>rHOti*? insnrt'd. Ti. cane of explo»-ion iIk company will not be re.^ponsilili' fur the de-itriiclion canned tbereoy, b\it will make f^ocMJ anydiima^re by tire woorifrin- ated. Hy spec ml ugrteinent, and up«jn Ibe imynicnl o{ an addiiional pi\- mium, the company will beconii- reH|)oniame, tbi' company will not grant compenNaiion, nnlesp the bnilding Lonlaining Ihcm or ibiit immediaicly I'ontigii'ins >ball be on tire, (/ompen- eution t'lr articles missing will oidy Ix? allowed when tlie party in.-nrod (ihall, witbiri three days after the fire, give notice thereof lo the proper iiiilhorilieF, wnh the oact ^lalenieiit f>f ilie. miffing oljeoin In 'iiiy event, no (om- |ien-aih.ii -bail be paid fi>r mcb arlicUrt niitil alter the conclusion licy With regard !■■ buddings, all parts not specially excepted in the conditions, aii'l tbiis, oonsi'ipienlly, the cellars and foundutions arc included in the insurance. Articles Hitiiated outside the limits -pecilied in the (Kilicy are not considered to be insured. Art. ;{. In order that the msuraiice may in)t prove an incentive V^ impro- per gam on lite part of the uisurol, ihc Huid party shall not be entitled to pi 188 CiKkMA-V FIRK POLICY. innkc use o| itvlircctly, or refer to tl>p iimniint insurpd, or liic |iri'itiiunis piiiil, or ill'' .li'Ni'niiiioiic anil estimate- I'diituiiifd iti (lie (hiHi-v ii- mi ackiiow I' e(l>;iiipiii, or iiriKif. nr prfHUiiiplioii of 'hv valiio, nr cvfn u{ tlic ixiHtcnet! of the articles iii-iirwl ; moreover, tin- party in^uri'tl in hoiiml to cli.iw to the Cotii|iiiiiy the t'\inteiict' mid value of ihf uriiclcs iiifiired at the liiiif of the lire I'v nli (iii'iiiii ami cinilie it*'.- iu his power, as well a^ iht-fjciiiiiiu'iKsn and aiii'iniil of ili(> liania^'i '■iistuineil. Akt. 4. 'riic partv m.-)«'..llrct tilt |in'tiiiiini hy due process of luw. Tlie insiinince Khali not he considered to !»■ again in force iinti! after ihe exjiiralion ol twenty-four hc»urs after all unpaid liack pn iiiiiims shall have hei-n pai'I and receiveil. No return i^f prcininms oiici- pai'l shall he niHile, with the exception of the case inentioneil 111 Article No. 1.^. Payment of a preiiiiuii; or premiums previously lapsed made durinjr or after a tire shall j^ive no rijL'lit to indemniticiilion. .Aiir. K. If, iluring the term of the in-urance, the risk from lln- should increa.se-- if tile property msured -lioiild chancre owmrs — if the property insiiri'd shoulii he transii'rri'd to other premises limn those specified in the policy, or il the projierly should he insured hy anollier company, then, in each and all of these ca.se-, the further continuance of lln' iiiKurancr shall he sul.ic('t to the consent of the (;om|>any. Tlie fiarty insiiri'd shall lie r« fjuiri'd to apply I'or such consent in wriiiiij^, and, i! tlic .same he j;riiiited, a tiieinoranduiii to that elfoct shall tie iiiude. Akt. 9. In case of a hre occurrinj^ it shall U- the duty of tin party itisuretriot in nut In- noliflf.l, or, in lii« iili-iiMici', tlie liotui itjii til Wlioti Mich iiii;iicihtit<' iiotificiihon ih ntit ihi'-^iIiIc, luitur luii^t, ill any ovi-nt, he j^iven '■vithm twenty-lour hourx alter the ('UriineiuT of tlie ii|intiy ill the Imniht) , imlice fir Ir til ilM he tiM H;;eiit of th< of the lire innxl then l^e Heiit |i the iii«im>;er ul' liie ('(iiii|iiiiiy Art. 10. Ill ea-^c of l|i it, ti.^'ellui' Willi any ami all eireiunstiuiceH relevani iheretji, a^ well nf the niitiire niiii iirnbaMe aiiioiiiit of the (iiuiia^e Miifitameil. A iicrliKeti e.opy of the lorniHl iiiver-iijiaiion iiiimt be forwaideii to the iinerit wiihiii fuurteen dayc, or in cane there should l>e no ajr"nl in the lueuhly, then in iheilireclnr of llie eoiu|iaiiv. b 111 iheoartiMif niovahle |iro|)erty the party in-^ureii siiall, wilhiii four- teen iJiiyH after the -Ire, traiii'uiit to the agent a sialeiiient, liiily Hi;.'neii, speoifyiiii; the artiejo reniaiiiiii); wnlioul iliiniai.'e, tdj^cther with a -)Ki' 111 -lalinieiii of the value thertHjI. 'I'Iiim dooiiineiit nowt he drawn np with the ino>t (■in-icifntious accuracy ; if iiiii^t nut enntain u hums. ill}; aiiielea- hiiriil or lusl, nor iiiii^t tUi' e\i.''teiii't' of iiuy article saveij be withheld. The periods 'if Iiiiu above iiienlioned in ca.^e of ph\ -leid did- abiliU .-hull loiiiineiii'e from the dale ol ce.-fi in due legal form . AuT. 12. .\u\ parly iii-ured who shall contravene any of the oini- ditioiis of .\rtiole«-l to 11, or who "hall not entirely fulfil ihe obligations tli-,>reiii expre.-iM'd, or who slifill lie jjiiiltv of iiiakin^.^ an unwarranted decluralitin or a coneealment uf laol, as refernnl to in elaii-e l{ ui' Article 10, or whot umpire be chosen in alocaliiy other than that wherein the party msureil resides. Should one of the ptirtiea neglect to name an arbitrator, the nomination of the same shall devolve, at the reijuesl of the itther party, upon the presiding (iflicer of the pro|.ier court, in aci.'ordauce with Article 21. And in like manner shall it be done, 100 GKHMAN KIKK F'OLICY. if th<* twoarltilmfiirx fiiil Uiajirfc ii|K)ii ihechoint' ofan iim|iiro M lln> request of lilt' |ii»rty iiiiikirm Uu' iiihIiiiii. Tlii' roHt i<( iipiinii-ciiii'iit iiiiwlt' li_v thn »rl',lriitiir- shall 1h' Iwrin' in ilu- pr"i|Hirlion of oni'-liiklf liy cadi |>iiriv Tlie iiivi'-'titjiitiiiii of ilnnii»>!i'.«, wiidli'-r liy dirrct AilJuHtniciit lit'twcrii ilif j'Uity iii»iiri'i| iiii'l till' com|iiiiy, or liy the iiitermi'>liii(:y nf arliiiraturK, "hall only a|)|>ly t'l lixiiij; tin- aiiiMdiii of ^'l^cll ilaiiiaKt' wiili.iiit firtjiici <•«> to the rikjhia ol' tlu' c<>!r an i coM'liiioii. aii'l any xpuclal caiHo of ilcprfOiHiioii in valiu'. The ttroiiinl lot ati'l till' ai!vrtiiltti;es of locaiion, iiiiprovcniL'tif, H(>oi;uluiivo valin' or fiinoy value »h;iil tioi b( I'on^'iilere'l in iiiakiiv.' a vahia'.ion ; iiicrchaiiHij'c, raw niatffials, produce and hve.-itock fhall he appraccil at the current prici'*, iu KicconlHin'e with ilu-ir ipialiiy ami rondiiion ; inachiiU'ry and tnanul'ac* tunti;; ttp]ianiiii'^ at tir.-l co-l with ileduction for di-preciatiou in value on account i>{ aire, use, chatii^c of ^y-ilciu or KUvgnatU'ii of such hramli of indu-lry ; dry HihnI'*, hoii-«'hoM furniture, and ail oilier articlort at lirnl cost, with dfduciion for dt*orea-*e in value, owm){ 1ar ejilier in ainicahle uetihMiient or l>\ the (i^)pr:n-enifiit of o.xpcrtM, th:it tlif \ atucof the artich"' iM->uri i \i> ie^K iliaii the aiiiouMi of ilie insurance, the party insured can only claim iudeiiinilir'ation in the isiiiii 'if s.ich lesser valut. Hut if, on the contrary, it shall U'conie iniinile-l thai at the tinn' of the tire tin value of the ariioli-s itr-iiied hy the |>jlicy exceeds the anioiint of the insuvance, then the party injured sluill be considen-d as hifl own insurer fir such 8urplu^, and iti such capacity lie shall hear his pro|»orti'>naie slmre of the loss If the property shall l>e insured in several insurance coiiipani^'s, and the notification rcipiircd hy ArtN^le t> or •H sent and approved, then the company will hear its share of the lo'.s in proj>irtioii lo the other amounts in>ured and in ai^cordanco with the (Viiiditi'inH of the pri'sciil policy, fn no case .Mhall the coiiipativ he , liahle fur more than the amount insured aud its share of the cost ot ai-prai-e- rui'iit. Art. Ifi The party insureil shall not lie entitled to ritini I. .c company to take either a portion or the whole of the goiids insureil, whether they he daina;:ed or not. The compatiy, on the other hand. -.tiKll have the uption either of leaviiijj; both the damaged and niidamajred ;irtK:les in the hands of the j>arty instircd, as an eijuivalent tor the ascertained value of the same, or of accepting the same upon a'lowing such value. The oom|>any ^h.-ill fMrlherniore have tlie rijrhl. hoth as re/ards hMildin^s and p irtahle property, Uj make giod alt dama^'e hy replikoiiik; ilu articles insured in Akt. 17. All rights and claims for CiimiM?i»*ation for damages that the party insured luny hav« or aciniire in cwc of tire against (lersons liahle la t»«*iaii ilit jiart ot'ilic party iti«nr«Mi. The co?n|>"iiy «ill rctruiii from «iiforcing tlit'xc liirliln BiraiiHi Hiicli [iiirtu'H a-< iniiy lie itiniirH'l in tlic -aiiK', willi tlic fxcrjiiiun (if Cii>riini»'iit of llip aU)Vp-iiii'iili<)Mr'il rijrlitM, citlipr \iy a ■'pi-cial licptl to ilini pil'i'ct, or 111 liw rt'oi'lpi fi>r iniliMniiilii'alion for ilainagp-' Art 18. I'lip amouni M( ^ .. „ , nation or hy jiiilicial (Icci-ioii, shiill he piii'l in canh wilhm (hf «pat;p <>t oin moiiiii llicreafU'r, at the place where tlip jwliev was ipi.-ucii. due receipt l)einj{ giv'.-n therefor. Tlie ooni- paiiy Hhall ii( held to pay luterpHt ii|><>n the aiiioiiiit of daiiia),'e:< until after tlie pxpnatiiiii of --aid month, prodded tlial thi> damajrer* tn- thei: .-iition. or want ot evidence un tlie pan of tlie iiiHureil, 1^1-- heirwaiid let'iil re|>rp«enlaiive!», the company sjiall not he iMnind to deposit or [my said sum hefi)re the removal of windi olftaelea, or he held rcsiionsihje for -ulIi delay in the |ia\ment, nor lor any amount Ik-ics of several years ilate shall lie repaid to the parly insured. Art. II*. When an iiisureil huilding is sutyecl to a nK>rigaj,'e, (he pay- ment, of amount of los.-i or damaj^e can only be made for the purjxise of re- con-li uction, so thai the morif^a^ree must either consent loan uneon.liiional pay menl or be entitled to receive the same, Should a claim lor dumaj^ed miwle by a party insured on such a builiiiiig become lost through his own fault, tlien the company will apiily the amount of the diimai;es, unless the policy Hhould ha\e lii|i!>ed throujfh non-payment of premium, to the sutiii- factiori of -aid m<.irt(»aj:ee upon ronounciiif» hif^ claims uptin the putty iiHiired . Aiir. 20. All claims for damageR not made within six months after the date of the lire, whetiu'r ailjusted hy mutual af^reement in writing or brought befi>re the com|)et<'nt civil court in due and proper fcirm hy the |.>arty in-nred, hhail hecomti null and void at the expiriiiion of such term hy virtue of this ,n.-urani:e contract. Akt. 21. The company will ap}i«ar before tlie onlinary (not the com • luercial; conn of ilie place where its policy or the renewal receipt lieloiiging 192 GFRMAN FIHK I'OMCY. therpto inity lit> i'liiiui, |ir'>viili*'l tlntt (In- xliall ncuiir wiiliiii tlic liitiil-i kC tln' tuiii • -(lute wliiTiMii till' |>lii;e w'lcii ;i' llic pilicy »vii- I'-nii'.! JM miiiiii'l; •itluM-.vi-ie, ti't'irii til.' orliii.try <;juri urni.* jiiliciKJ iii>iriul wliiTi'iii ilu (1 (' ill i»v 'M'cur. KKMAUKS. i;U>. Till- piilicii's i)f this (!s, iior ilani.iL,'" <"' li'-*-* ciiusi'il liy ^mss ii(\u[l()(',t of flii' as-mrod. All pans iif 11 Ijiiililiiii,', incliiiliii^^ cellars ;iii I fitiui'liLious, are covercij, iiuluss osjicoially oxcludcil. Tht! poll 'V is un proof of oitlinr value or existtMico of the pro- perly iiisuivl. The ai'ce]»taii(;i' of tlie policy anil rtmev/al recciptrt hy the insured consliliite his .issmU to tin; pn-iniiun and dniation of tlic colli met.. Tlie I'lmipany is not boiiiid to demand llic pre- mintn ; if not paid at «oinnieuri.'nu'nl nl tlic year, the policy id vtiid, liiiLtlie cotniiany may collcri the premiiun by law. I'ay- ment of over-dtie premium rein.stiites the policy a/"/('?* firfufi/- fvur hours. Xo return iiremiuin is paid, except vvlicntiie policy i.s canceled on account of loss No privilege for the insured to cancel, except in case of partial less. Fires must be notilied to the (I'lHti'K'f dijent immediately upon breaking out, if possible ; if not, within twenty four hours, to the head ottiec of the coinpuny. I'roofs of loss must be sent in within fuurleeii days. Incasi' of physical disability, then four- toeii diiy.-i alter removal of such disal»ility. No change to be mide in goods under appraisement until completed, except when necessary for their preservation. VH. Valuiitionx of buildings must consider age and condi- tion, and <(.ny special ciiu.se of (depreciation. Machinery must be valued at first (!ost, with 'leduclions for age, use, change of system, or stiKjioati^m of sat'.k liranck of iii'l'istry. So with machinery ; any d.'creasii or increase of value consequent upon the state of business would not be con- sidered . All payments for claims are to be made within one montli after the .settlement is made. llAMIiUlli; FdllM OF rOLK'Y. 193 All m >rt'4ii^'.> |.(i!i('itw an- to be ]iaii| liy ivlniililin^ tin; pitMii- I.i III itatiott (if acl\im in six niniulis. fllT'J*) i:ia. IIAMIU l{(i Koiai uV l'(»LIi;V Vi.AlNSl I'lUK IN rUAN-^ATLANTK' I'l.AC'EH. CflMMKNf'KMKM dl-' Vlli- Issi'KlM K, KxrlKATION TIIKIIKOV. Amoixt INHIIUI), J'KKMII'M, Tlie iitiilprHi>fii«.| ln-nrniuie roinpun in-mro iiihIit llie williiu pi'Mcriil, ftinl the ln|li)\viiii' fjiccia! ooiililiini-, ciicli iii |ir>iic>rtii)ii uinl lo the aiituuiit ut tilt' litTf t'ollowiiiK luvlt r\vrilti.'ti Hiirii, a|k;aiii^l, tirci tor du ItTiii of , nainpjy, from 1 18 , I2o'clook, tllloll, to tilt> , IH , 12 o'clock, iio*|H't!itl<'il looiiliti*'^ miIIith fnim tirt', us uli'ii fr.iin ilie <'.\iiii;.'uiMli- iii^of tlif lirv> or llio reiiioviiijfijf tho pri>|M'rty wlirii pMned lo In lu-ceh-ary, Hii.l «liii'li llama;.'!- coiiHiHt.i in tlie iiijuiv u>, .|i'-iriiclioii of, i>r liii- Iomh ni', the inxmt'd pr(>|HTty riii' iliiiiiiii.'<' wliu'li riiiiy Imppt'ii hy mt'im'* ut \v;ir dv niva^ii">n, iiy !itiy inilitury or iiMirpfl power, hy mt'aii.i of civil coiiimciiiin, not, earllKptikkc, or cntirebf through the fault itf Ihr lUnureA, in cxcfpH'il (Vuia thin inHiiraiK't-. Ill the ease of an expln-'ion, tin- |ioii(M 'itiiy cov*-!;" the iiama):(* hv tire wliii'h rcsiilif liiei'efroii., if It lioer* not I'XpruNijly fitate lliiii ilie hji/.uid ut ileairuc- tioii Irom oxplowion in luki'ii. Tlif iJihi/atinns the illumed ilepei I noldi/ nil (hf roiilrulu of llie p'llifii, atid the rvfiHTlicr rmiiwuls, ami ai.so on the uvcontcd chaniifii anil supfiteinenti Skc 2. noeiinicniM and paper-- "f value of all kiielM, ^'(dd and -iijver bullion, coined money, jewels not let, trennine pearii, >;tiiipowder, j;tiii Cotton and the iniinufautoriefl tliereof, ami tar Ixtiling ctitulili.'liinentri, are excluded from every insm-.tnce. (ii>M, )( welry, wiitclie.", laces, ciwhmerei.. fCiilpdu'e, ami nthiT objtKJt.s o( art, an vvcll as all oljectw which hiin n t'liiri/ mlui', are only iiiMiretl when lle'y are .-eparalel\ -pecitied in the p,jlicy nwl the nilw thtin,/ if,ilnl. If aii arlich' of properly is exjiosed lo tlie i-ii,.otH uf lire or heat l"r any piirjwse of hoiisekeepin); or inannfacture, and is thereby -ei un lire ir injured, llic daniiijje which may liap()en to it will not he made f,'oi>l, hut only till' damage whicli may liHjipcn tlicrchy lo the otlnr insured pro^rty. N 194 ll\MliII|ii KiiKM OK IVtf.mv. TIk* .ni of a luiililiri;; 'Hinipri«r« itli |Mtrt!« iliiTtuil' xOiilIi an- not li|it'l'ltll'llll,V CXUfllUll S»:r A, Till' iiMiirnijri •l. Mv till u (!i'|ittirici' lit llu' [Hilicv, lln' a^'iHt'iu mhIi iIiii I'mili htrt |||i>rf(( till' u-<,4iiri'>i, iiT till' whiilf ii'iiii i>i' lilt' itimiriiiice, \h i'>|ifi|ifc| Ski'. 4. Duly ilif |iiirly w lit< liiii* in'tiiiilly rii|irliiii«'i| tiif iii«iiriihi'.', Ii' it in iim own iiuiiiPorijii fucouii'i or by or.li'r ol' ilir owtuT, ur ol ihiwf i>(lii'r. wcf III U'r«iHt»'il (till' iiiin«r'lci| nn the I'liiitriicliiu^ puriy li\ tin: cuiiipuiit Hiiil aiMliiiri/.(il l<> I'lillccl till' oUiiii'' ari';<|Niri<'ilr all tlio iu*:iiiii-> uini ()iiit<'-iion'< of till' ittlu'i- iierMiii" coiK'j'rmil in tlip iiiNiirmu't', if far uk iln'v ri'l.iir lu till' liillilinrni i>f ilic (liitit") tvlni'.li tin- aoMiiri->l Iiiih, act unliiiv' to ilic 1 onti'iilf iif ill'' ("'lifv It I"- fiiKi'iallx liH ilnlt to Ui|vi»f liii (.'utri-x- puiiiiciit)' Hu lliiti iln'v iiiiiv fii libit' III III t'liily, liiiil III time, to riiriii-li all Miii'h i-oiiiiiitiniUHtioiiM and iii.tiice", i\liii.'li, in ao)'ori|Hiu:e wilii tlie coii'lilioiiM tit till' |i<'li(V, have lu 1)1' furMi-lieil III till' iii'hi'iiii(>ii tor till' iiKiiiuiK'e, or iluriii^ the term lliereoli or utter a llama);*' (>y tire lia.t laUin fiiure. IMTIK!* "K IIIK AM.slUKU OS TIlK ArPlirAllnN Sir. .'>. The I'lmtrai'tiMk; nt' the in^iiPBiK-, the |ir'>peiiy in lie iiifinn-i, aiiil the place vvlieic it iw (♦itiiHlnl. i- in lieexuetly ilei-iM'ilii'il, ami all I'lroum- lituneei which may have an iiiIIik'ih'i in eHlJmaiiii): the ha/.anl, uml uNn the eMcltiii'e of olhrr iiiHiiraiu'eeUewhere <«lateil. If the percoii f the in-mrain'e llu' hazard iiu;reai'i"', or il the owiierHliip of the pro|)erty ciiaii);eii, exeepi in oases of inheiiiaiii'e, \> Inn the iii-Mrf.l prcjieiiy tn iraii'terrt'l toother pr(nii''eK, when il if el.He where iiiHureii, in hiicIi I'.a.'-e.-. the in-iiier i- enliileil to ili8(;oiitiiitielhe in^ur ance for the unexpired term thereof, liy i'etiiriim>; the premium I'he ocmr- retic"' of •i un tltniiii.d is ilnne ti' Ihc.in.^iii td iiiDjurlii, tiiitice IhcrtfJ liii.'t In >it 'Jtn it I'lj ii>.j:t mail tn //iimlmrg, and the name in vvritiiijj to he i:oiiimunU'ute.l lo the iiiHiinr aft f

    iii ,ir agi, till- r in >i'lifl'\ /," i-lM-n'ltenfinmii '''I, <" if ihf vittiir i;/ Itit /iri'iii ill/ nil Imad at tilt Hiiii- 1[( thf Jirt rjcretils Ihe aiHaiinl "J the imiiir'tiir, , 1)1 if'a nrl/.in.' urnnne contlitiint on Ihtfutrl of tht innu'nl i.i fjrfirett. lif it/hi it'i'l, thin till' iliiiioi;/!' inilf tifiniuli ijnoil " jirn ratn.'' Il till' |i''i|ii'i'ty iii-iirt'l Im'1oii;^<* to iitli til !'• pi|ii'»ii. Ski . ',' II III cii-'i' (if u lii-i', ilic iiiHiiii-.l )iiii|i«'rl_v inn«l I* .■'a\tMl :ih mncji pn.-MiliJf, iiiiil iliiriiij; (111' iiri <•! MiMii^; ii mI ui'liT^vuniw, pa tllrt li.iv V In lie liikili t (• Hccuri' itMil jip«-Mcrv(' it Il N'lii' f 111 the "l.imiijt'i' Hll^(altl•■•l !i_v llic fire 'ibh '■ l.c mi-ui in liiuiiltiir^ liy tilt' iirxl iiiui! wlmli lt>u\i'- llic |il'U'>' ol llic lire, iiii'l ilii'ic il i^ Id li<> ooiiiiiiiiiiiCHtcii III writ'i'j^ to 'In iiiHiin^'' il II' next wi'tk tliiv aftt r U* hi rival. Sur. 1(1 T/ir in.inririii uiitntlf'is niiNiri priioi nor firesu 'I' the till- ''.(/)(( "I III,' iimureit prnfurtf/. Touscertain 'lie i .iii.i^';<', the exi.tti'1 iiiHiiriT lift-* III li<' t'iinii-nt tlicroiil. (lint al>o 111' lilt' 'iaiiia^'fil ur iiiiiliiiiia){e I pro|i«.'rt\ wliitli wa.i saved. As tar an tlip party who ttjoU the iimirainc is unable in i"urii;«li thci>e priKifs liiin:«'lf, '"or innaiicc, hy liiM own bo-ik-, invoices, etc., they linvo to lie filiiiwii by certilif.atps ot the proper puhlie authorities, ainl l>y written utliilaviif' of the party for uhowe l>e;ulil or on whoj^e order Mif in-uriini'p was ell'ected, or ol tiiiir rt'sueclive cnrre-ijiondeiits or aool!iveii| dainaj^ed aiul destroye-entation or concealment, or if the value of the lo.st or damaged article ha-^ been put extravagantly high, or if it is in any other way attempted to over-reach the in-iirer, or if a precautionary condition which the policy may contain is violated, then every clitiiu for daiiiages i,-* forfeited, even »^^ regard.^ the iui^uranco which i.s concerntii in the same tire, and which is eti'ected by the i- iine insurer elsewiiere tor the same interested parties. DISPUTES. Se(% 1;5. All the disputes between the contracting parlies will go before the Competent Court ut Hamburg. I'AVMKNT. Skc. 14. After tlie whole amount of the indeuuiily and the obligation of the insurer to pay the same is li.xed, by acknowledgment of both parlies, by agreement or bv legal judgintiii, the payment will be made within four weeks to the in.ntract in tliis country, except in so fiir as the various forms in use by th'; companies of the several cities — whicli were more or less concurrent in each locality — may be said to have been uniform. Thus, Philadel- phia, New York, Boston, Trovidencc, Hartford, New Orleans — all centres of insurance at an early day in the present century — each had its own peculiar forrn, conditions, excej)tions, and stipulations, differing materially, and sometimes ossentially, from those of other cities. It was with a view tu harmonize these differences and ])ro- duce a suudard form uf policy that the National Board form was adopted. 4!{S« In treating of Amcricav policies, they will be divided into ejiochs, iis nearly as may be, as follows : — riiotje in use prior to a. d. IsOO. " from A. D. IHOO to 1S35. « *« 18:{.') to i«t;o. " " I8t!0 to 1888. The peculiarities of each epoch will be noted, thus showing the gradual advance in policy writing, from the earliest introduc- tion of fire insurance into this country to the present time, and at the same time shedding light upon many of the earlier decisions of our courts, based upon conditions of the policy 198 INSURANCK COMPANY OF NORTH AMERICA, A. D. 1794. (littering more or less from those iu jircsent use, and shewing why tliese older decisions will not apply to nioro modern fornKS of policies. insurancp: company of NOKTU A.MEEICA, A. D. 17'J4.* 4:i'' mber^One Thomand seven liundred a)id ntiiety-Five. Know at.l Men BY Tiip:se rRKSKNTS, that in Consideration thereof t)ie Capital Stock, K-stale and Securities of the said Cwrporation shall be subject to p.ay unto the said Joseph Rirardo, his l-feirs, E.xecu- tors, .Vihninistnitors or Assigns, the Entirt? Sum of Four Thou- d Dull,, d SO shall ?(/. I'liUars, ami so sliau continue, remain and be subject tis afores;iid from time to time to be computed fiom the Fourth Day of Aoiciiilji'r in Every year for so long time as the said Joseph Ricardo shall well and truly jiay, or cause to be jiaid, the sum of T'irh'c Dollars to the President anil Directors of the said Insurance Company of North Ameiica, on or before the Fourth Day of Xovember, which shall be in each ueceeding year, and the said Corpnratinn ■^hall ngrce ♦ hereto bv accepting the sa7ue. which said Loss or Damage shall be paid or iudemni- tied ill manner aforesaid within thirty days after j)roof of Loss ; and if any dispute shall arise respecting t lie same between the Corporation and the ASSTjPED, such ditt'crenee shall bo siib- mitU'd tn the judgiueiiL and deterruiiiation oC Ailiitrators indifferently chosen, whose award in writing shall he, conclusive and binding to all parties. *4ii7. The iiutliir lakes this occasion to tender Ins thanks to t^harloa Piatt, Esq., pa'sideut of lliis vciierabli' instiiuiion, for liia luurltiesj iii fiMoisliin^ thia poliov (lieiug No. 73), i.ssu<'il by the company, .Vov., W.'it. mnl other valuablo mftnmai.i'U. '■ May hia shadow never bi.' less.' (87.) INSURANCE COMPANY OF NOUTII AMEUICA, A. I). 1794. 199 PROVrDEI) ahva}'S, iievortheless, and it i.s lieroV>y cleelared to lie lln' iruo iiiteiii aii'l inouriiiij: of tliis Policy, tliat the waid Stock, Kstate and Socuritifs of tlu' naid Corporation shall not, be subii'Cil or liable to pay or make good to tlie AHsunnl any Loss or Damage by Fire which Hhall iiappon by Inviision, Foreign Enemy, Civil Commotion, or any Military or usurped povvcr^ what- ever; And provided aUo, that this Policy shall not take efFect, or be binding to the said ('crporation in case llie said Ar^-wnreil shall have already made, or nliall hereafter make, any other Assurance upon the Goods aforesaiil, unless the same shall !« allowed of and specified on the back of this Policy ; Or if the House above mentioned containing the iroods of the said Joseph Ricartio shall, at the lime when any .such fire sJiuU happen, be in vsholeor in part occupied by any person who shall use or exercise therein the Trade of a Carpenter; .roiner; Cooper; Tavern Keeper; or Inn holder; Stable Keeper; iiread or Biscuit Flakor ; Sugar Raker ; Ship Chandler : Boat Huilder; Malt Drier; Brewer; Tallow Chandler ; Apothecary; Chemist; Oil and Colour- man ; China, Glass or Farthen Ware Seller ; or shall be made use of for tlic Storing or Keeping of Ilenip, Flax, Tallow, Pitch, Tar, Turpentine, Rosin, Salt Petre. Sulphur, (Jun Powder, Spirits of Turpentine, Sliingles, Hay, Straw, Fodder of any kind, Corn uiitlireshed, Oil, W;i.\, Di.-itilled Spirits but that in all,(jr any of the said Cases, this Policy, and every Clause, Article aiiil Thing therein containeil shall be voi(l and of none effect : otherwise it shall remain in full force and virtue IN WITNESS whiM'eof the said Corporation have caused their Commou Seal to he hereunto iitiixed on the Fourtk Day of November in the Year of our Lord One thousand seven hntidred and ninety-five. N.B. — This Piilicy to be of no force if assigned, unless such assignment be allowed by an Kntry thereof in the Books of the Company. liis understood that the (foods above insured are the Prop- erty of the Assured, and not held on, Assigntnent. 4000. Four thousand. DnlUirs. J. M. Nesbitt, Presid't, Dry Ooods Dr. 4000. a 30 Cts. i>^«. 12. REMARKS. 4;iH. Till' sLiptilatioiis and exceptions of the contract are emboihed in the policy prior to tlie signattires, and embrace but a lunited portion of those so common iu modern poUcies. Reinstatement is provided for, as an underlying principle of the contract, but time not limited. Duration of the contract is computed from the day of exe- cution to the mnw. day iu the succeeding year. No limitation iH 1 200 THE MUTUAL ASSURANCE SOCIETY. as to tlie hour of commencing or teTiniiiatiou, as in tlio modern instrument, thoui^h •?ueli limitation is to be found in the Amster- dam policy of 1744, tifty years prior to tliis, Arbitrntion is not confined to the amount of loss, but the whole matter is left open. Inrcmoii; insui'rcdion, fovngn enemy, etc., is made an exceptional clause, as in the early English forms. Ofher insurance must be noted and indorsed, but nothing is said of pro rata contribution by suoh utln r insurance, in case of loss. Memorandum articles must be specifically insured, as in the modern contract, thougli the classes of articles differ some- what. Assignments mu.st be endorsed upon the books of the corpo- • ration. Nothing is said of indorsement upon the policy. Notice of loss — no provision made for. Pvdiininary proofs not required by the terms of the policy; though the loss is jjayable in " thirty days after proofs of loss." Renewals can be made by consent of the company. Policy-fee was sixty-seven cents. The clossifif.afion. of Jucords was somewhat mixed, and restricted as well, as compared with the present day. Limitiition clause, — No limit is put to the time when suits may be brought. Application and Survey — none referred to, though they were in use by the old Hand-in- Hand, some years previous. THE MUTUAL ASSURANCE SOCIETY OF VIUGLNIA, A. P. 1794 'IHfl< The plan of this society was suggested by William Frederick Ast, a Prussian, then residing in Richmond, "and is sujjposed to be modeled after a system of mutual gVAirantee, introduced by Frederick the Great, " although it was virtually a />er2)f^^«annsurance upon a mutual plan. (iM>.) TIIK MUTUAL ASSURANCK .SOCIETY OF VA. 201 I40. Tho assured, in additidii to his prt'iniuin, oxenUed what was termed a " dot liratinii," under stsal, by which hi' plcdi^'od the propeity insured for the payment of whatever reiiuisitiontj mij^ht lie necessary to meet losses by fire or lightnin>,'. The society, in return, issued a perpetual policy, which folio \verty through successive changes of title, and could only be terminated by formal withdrawal, the destruction of the build- ing, the storage therein of prohibilcd articles, or the Uiking out other insurance upon tht^ same piopnity l)eyond four-liftlis of the value. The premium proper was [»aid only ou ilu: first insurance; during the succeeding years a certaiii jiorcentage of the premium, termed " the quota," only was paid. 441. The jnoperty was re-valued every seven years, and a new policy issued, babied upon the new valuation ; insurance was allowed to fi>ur-Hfths of the verirted value of the property, and if a less aiununl was taken, the itisured wd.'^ nuiile co- insurer for the difference ! This is a peculiarity of the Flre- Ca,Hsa of Holland, (0»5.) 4 Its. It was managed by a president and directors, while a " Triiicipal Agent" and a " Cashier -generar' were char>^ed with the administrative duties; the latter gave bonds to the amount of ^100,000. His duties were to receive the funds of the society, and invest the same as directed, in certfiin securities, which " are to be put immediately into an iron chest, deposited in some place of secuiity, iv'dh four suhstaritial locks, each of a different construction from the other; one key of which is to be delivered to tlie president, two othei> to two directors, and the fourth to the cashier-general." I Hi. The lowest rate of premium was one per cent, ; the highest was/ve percent. Insurance in excess of S8,0()U, iq. to SU,000, paid hdf per c(Mit. extra ; from SU.OOO to S20,OuO (wliicli was tht^ maximum written), jiaid one per cent. more. (4HH.) •< Ganpo'Mler mills, and such ijreat hazard!*" wore ins u -able only by special contract ! 444. A distinct house or teueinent is thus curiously described; "A building is considered what is, or stands by itself, or between two whole party walls." ■ 1 ■' ? w. ■ hhf ■ 202 THE MUTUAL ASSURANCE SOCIKTY OF VA. 4I>>. Wlii.'iv l)uililings wen-, no situiited that, on account of trem or other obstructions. lh(} lh('-enf.'iues couUl not phiy npou them fioTu at Iciist two suhis, they paid half per cent, tuore preiiiitnn. (SJI. .S»l.) 4 lO. The entii'c plan was found to bo crude and ill-dij^cstcd ; constiiiit ''(ifcrenciMvas made to the (Vncral Assenil)ly, for sonio cliangc or nioditication in its charter. And now, after a nuiulun' of year.s, tho society has settled (luietly down as a perpetual insurance company, coverin;,' a l;ui,'e ainouut of proptrty throughout the state of Virginia, to whieh its oj)erations are contined, to the ample satisfaction of all concerned. • IT. 'i'he company had several kinds of policies in use — one for large towns, and one for small towns A new policy was issued (!very seven years, upon the re-valuation of the risk. Forma of an original and of a rtvvaliuition policy are herewith giveti. It is to be regretted tliat fac-similes cannot be offered, as there is as much peculiarity in the st.jle as in ilie wording of the jKiliey. 44». t)RH!IN,U, I'OMIY— No. r)M5. THIS Policy of Assurance, Witnesfieth, that Mi >: Mnrthn Daui.i'i-on, Ainx. of Ona/ S. Diinitriin, dcrcasfd, nf i\i>rfi)Ik,\\\\ — I'liti'inl the hiiiliiinj,' herein iiH'iitiuiRil, lor (liiijuraticp from loss or 'laiiiagc hv lire, in ihi' Miilual Assur- ance Sociciy. against (irt' on hulMin^s ol tht state of Virginia, as per her deohiiation ilaini tln' Iwmfij srrciith (lay of (ktolrr, 1800, niarkcil No. 289, anil (ili'it ii] till' otlicc, to \v:t ; A Kitrhen, markt'il H. tin' walls built of wi:id, coveri'ij with w< ud, situated on 11 -k of her luius< A on Fenchnrch .tivrfit at the sitid phic'' now oc(ni|iii'(l hy //'// /Vc.ffv*/, bet ween .V;'. Boiish's rifiuit Lot and that of /I Av(c HuuDe ti(d Jinis/ied btUiiujimj to (>■ ,S. IJomeroit, Hiij., in the county of Xortolk, the particulars of the situation, dinienMions, and build- iiip, are as by description. No, '2"'!l, which she hn.-' deposited ni I'lis otlice, and valued at I.'iO dollars deduct, 30 ditto. remain neit 12() lii'llars, which said Out lluiidri'd and Twenty dol- lars, i < the real sum insured, and o:) which slu /«/« paid /t)»c dollars thirty- two cetus jireriiiMiii, and ^>/*(; dollar cents, f.ir tax on the|)olicy, and the '^aid Mdtthit Diimeron having agreed t.. abide by, observe and adhere to the constilutioii, rules, and regulations of the sr^iil Sucietv , us are already or may hereafter be established : NOW Kiunv al' Men by these Pre.«ent», That the said Mutual Assurance Society shall after this day be subject and liable tn pay iniiuediately after TIIK MUTUAL ASSUKANCF; SOCIETY OF VA. 203 duo proof, u^HH'aMe to the form established by the Maid society, tliat tlie fire actually happoiiol iinto the naid iinHured, or to /ler heire, executors, iwliiiiriis- trators, in- ahr'iiiiiH, all fiui'ii dunmgc or los^eH (not exceptwl ukfiiiriHi \,y the coii'^iitiiiioii, ruief, and r('>rulalioiis, ot this WK'ioiy, nmi \>y thin policy) as ehali happen In tire or liglitiiing to the propert\ uhove mentioned for ever, to any amoniit aliove three per cent, on the amount iimured on naid huildinj;, and not exoi'dling the sum of One Ilumlrid nnd 'J\ri'iit;/ dollarn : I'lurided- alH'oijx, that the said Imildin;!: is at thin instanl in existence j and in ease of partial Iohs the laid Martha Damenni shall he paid such part tliereot in prc«portion to the 'amfr(>ii. runs the risk fi'-rselj'; hut in case of a total loss, the said Miui/ui Ihiiiieritii shall be paid in full, as far as the sum insured j^oes. And thai the said hnildnig shall be valued at the en(1 of every seven years a(!cording to the rules and regulations of the society, and in case of loss aHcr the exi)iralioii of the first seven years, the said Martha Damcron nhall he paid accordins: to the last valuation not exceedinj^ the saiil flum of One Hunlioiis or insurrtctions, invasion of foreign i-iiemies, sieges or other inditary or usurpe. A'o. rj'AS, (ritio llDUrtlor^OOm'aitrrd'or tLfrp-vivlmiiionof till- l>iiil(liMf.',i lifrlure.l iiT, |n'r foriiicr .itoltiriiiiun Nn. li')'^:!) lUitltroOCtll, Titiit Jiihn A'()/(//i.w;i, roHiiling at FrcilKrirknlninj, in tlic county ot' •'»'/> "^«y/' vaniu. hnve entered (or ii.>i>^nnince, aj;aiM«t Ions or (luniu>re li.y (Ire, in the MvTi'Ai. AssiRANTK Soi'iKiv iijiiiiMst lire on liniiilin;:n of tlic State of Vir- gitiia (for tlie Town-) us per l/ii:ir necluratinn, No. I'J'.IM, tilcl ami reoonled in ili(> general office, the fdllowin^! hmMinj^s* occupied by t/temnelrr.i, .tituaied on /he north side of Hawk Stnrl in the Town 'if Fri:ilerickghniull(!d DoUk. C'M.|down, or removed. 49 7 2 $.'^9 Wliicli -uin of Xhitteeii hnndred iind Twenti/ doiliirs i-< thi* real .sum insnrcil, ami on \vliich tliereha^* been paid Sijcli/ljre tlidlurs iind sixty Cents premium : and novr tins day Xo iKiilitiutiai prcn;!utn ; and thei/ the said ap>ured having, by the above mentioned declaratit)n, a<.;re<'d lor ffieni.telves ami their lieiris, exefluti'rts, ndniiiiistrator.s and a.asii^n^, t) abide by, observe and iulhere to the constiiutii ii, niies aiu! ref^'iilationw of thi-^ si-nnely. which are already, or may herealier be etstaldished for the said .\ssurance Society : Now. JTilUltO all turn bt) tliror prrorittO, 'hat the aforesaid A.S8U- raiice Sucictv -hall I" ^ubjcct at d lialde to pa_\ , aLM't-cably lo the acts of the Lejrislatnre of Viri^inia, and tlic con.stitntion, rules and regulations which are already, or may lierealler be, established for thcsanl Assurance Si •ciety, unto ijie said assured, or U> //('//heirs, executors, adniinistraiors or assigns, all such lo.sset) or damages as shall happen by lire or lightnin;?, aller snn-pct of this day, to the abovt -mentioned buildinii, according to the true nitcnt and meaning of the said acts of the Lej;islature of \'irginia, and the (;onstitntion, rules and rej^ulations of the Huid society as aforesaid: Provided, that the aforesaid building.? are at tliis instant in exisI'Mice, and that if' ttiei/ or any part thereof (jr« or hereafter «hall be niFured elsewhere, tins ixdiey shall bo void. ^tttUittirOO ttlljPVPofjihe principal airent of the said soi-iely has signed tlus {'resent policy, witli the seal ot the othce annexed uhe same having been I MAfsHTii. That whereas Joskpii ITvvkn of Portniiiiitil/i, in the Slate ol' Ni-w lliviipiihire, hath paiil to tlie President and Direotorw of tliis Ojrporal'on, the «uin of Forty-two Dollar.^ mul lil'ty cents, for in>-iiran(re for liOSis m Daniajio hy Firk, for tlietenn of Oi\e year, and no hmjrer, foninieiicinj; at twelve o'clock at iiiH>n on thif" sixlei'iith day of OclobiT, One fhouhand seven hundred ami ninety-.^eivn, and enilirifi on the sixtennth day of Ortober, One thousand seven hundred and ninet^-'/,7A/, at twelve o'clock at noon, viz. ; (^n Fice Tfninniind l>nllars,iii Mfn-hdndi.te of viirloiiK k-inil.i, hi a brick store situiilt'il in Mui-ktt Street, Vomer of How Street, Portsmouth, N./L, ac particularized and set lorlh, in the Declaration of tiic said Josi'/ik llitre.n, dated the sixtee.iit/i day of October, 171)7, and lodged in this olfice. Now, Ksow ALL Men' hv these i-resenth, That from the date hereol', the Capital, Slock, and funds of tlio naid Corporation .«liall be 8nhject,and liable to pay, make itoimI, and satisfy, unto the said Joseph llaren, hi.s Heirs, Executors, or Adminisiralors, williin thirty days after proof thereof, accord- ing to the tenor of the Printed Proposals, dated the second day of September, 17','"i, and iiereunto annexed, all such 1a)8S or Daniajre (proviiled llie same shall amount to thkke vkk cent, on the Htini insured [5] ), wliich the said Insured stiall Kuirer by Fire, in the merchandize above mentioned, during the term atoresaid, not exceeding, however, the sum of Fire Thousami Dollars J and provided said merchandize be and remaiuii) the store aa afore- 206 MA«3AC!HThKTTH FtUF. TNRITRANCE (lOMl'ANY. Hniii, (uiiJ iiDl flHi'wluTe, exci'pt iillmvtvl by eiKlorMciin'iii prwvioiHly nuvlc at tliJH OtHcf'j Uiilei-H thuy, tlie siiid I'ri'Hitlfiil uikI Dirci^torn, hIihII, witliin Maui thirty (lay-, (iiriiisli '^aiii fri>uPi'.| willi the like (|iiHiilily ■;/" Miic/kiikHzi^ nt till.' -mill' Siirl ftiul Iviiiil, iiiKJ ii{ Ei|iiiil Value Htnl j{cHj(ineril by Fire. AriJ ill (.'ii-e iiiiy dispute whall Krine, retipectiiig the Hiiiiie, helwcvn tlif Cor- poniiioii Hiiil the IiiHiirc'l, sucli |)itl('r«'in;e nhuil he "iihuiitlt'ii to the juil;;meiit Htid lieieiiiiiiiatinii oi ArhilrBfur- in lie iniituiilly elm-tMi, whu-'e Awani in Writing slmil he coni^idered cuiiclusire and binding; on nil I'artiei, PKOVtUKi) ALWAYS, and it Ik hereby deciiired tn lie tlie true Iiilnit and Meaiiiiifc' oi this I'olicy, iliiit the >!iid Cujiiial, Sti)ck and I-'iindft wl' ihi' KuiJ Ccirporalii'ii -hall not he -iilijeol, or liutde to pay, nr muke i^iKjdi to tiio li)Hiiree of, tor the -toringor keepini; of Hemp, Flax, Tallow, I'ltch, Tar, Turpentine, Hosni, uuslacked Ijiiie, 8alt-petie, .Snljihui-, (iunl'owder, Spirit-s id' ruipeunne, Ai|na i''orlia, S(it.s, Xitri Fortis, Od of Vitriol, Hay, Straw, Fhi' ctivtrad is from tuflvo o'clock at nnon of the I lay of oommeiK^Miiiiiit until the Hanu- hour of tin- (la\ of expiration — the first mention we find of this olauso iu Auioiican poliuies. Except that at Hartford, a. u. 1794. LitKx /« ihi'jahle within " thirty day.s aiU'r (noofs, in ucciordance with tlie pilafed iiroptn^nln." Ai>{tl>i'at.ioji of the insured \h referred to as his " (h'cliUdtlon," whieh seeui.s to have bt-en "anuexeii," All losnes must reach three jter CP7if. of the policy, or no claim will iiri.-i'. Tiiis is taken from niiriii') insurance {!i), ami is to be luiiiid only aniont; the early lue policies. Arbitrators have general })owers. Other iiiKuriincc must be noted and indorsed ujioii ihe policy ; but nothing is said of pro rata coutributi(jn by such CO insurers. Memorandum hasardu eml)ra('e almost identically the sanio as the Insurance (Jonipany of North America, which seinn to have been copied lor the " ifoyal Exchange" poli(\v, LoncUm. («0.) A' (4 ire and proofs of losn ; no requirements as to Ihese essen- tials of the modern policy are found in this contract, though they may have been iu.serted in the "printed proposals" referred to above. No cancellation is ])rovided for; nor is anything said about renewals. EAGLE EIRE COMPANY OF NEW YORK (a. p. 1806). 45;?. This Ivstutmekt ou Pumcv of Assi'uance Witnessktii, Tliat Tut. Eaoi.k Fikk Company ok New Y'okk, in cciiHideration of— Dollars, to the Corporation paid, the receipt whereof is hereby nckiiow leiigt'd, H.vTii agreo'l to insure, and Doth herchy Ufrree to insure, 208 KAOLK KIKK OOMI'ANY OK NBW YOUK. ( l>ctiriiitiitn (if Vriijiirty). In ('(>>-tii)KK\Tuis of wliali (iriMiiiH«H, ilu- V.^gV' V\tv Company of New Yitrk Dorii luTcliy covpimnt nml unrce wifli ihe "niil . - — — KxiiMitors, A liiiitii-trHtDri' mill AxHijrn*, tn |phv nn.l Mnti««'rty lu-rchy liiMircil, nui i-xieoiliiig in ainoiinl tli<> oiiiil Slim lit' I)iillarH »■- |Mirtiijiiliiri/,i il iiliovf, if siicli, l,(iKM i.r |)Hiiiiip> iliall lit' >iii«taiiii'il wiiliiii tin' ri|iii('f of _ fruiii ilip Day of the iil cmlorMi'.l on iIiIh Policy or a lli-ceipt tliorefor ^riven by iIiik Corporation ; And it is furllK'r ajfrectl, tliai thf amKimt of mhIi lic-is or I'ama^t', a- tin? AH-iircl or A>-ij{iiH, cliall \orati(Mi aniirxe'l to tliiM Polii y . yt'OUiltrD illlU;il)0, loi'l it i-* hereby ileclareil, that this Cor poratiori shall ii'it I.e liiihle or Ih)|iii,| to pay the -aid Ai^ured, in this l*oli''y mimc'ii, Hxeciitors, Ailniinir'trati)r>( or A^^'it'"'*. f'r any Losh or l)uina>^e by Kire ihii in;iy liap|>en nr take plac;'-' in con-eipienci' ot' Invasion, Civil CominnliDii Riot, or any Militiiry or liHiirpi-d Power whalsotver. Pkoviukii Also, that in rafe the AH->e Hiul l>e of no further eilert. Am' II I- 1 1 uTiiKK DkolarkI) ANit AfiRKKi), ilia! \\) case 01" any other Insurance be;iifr made ii[h)ii the Premises hereby Insured, either prior or enb-e.pieiit to the date of these Presents, the Assured shall not, in any case of Loss or Damage, be entitled to demand or ret over, (in this Policy, any greater pn^mrtion of the Loss suhtaiued than the aimnint hereby luhured shall bear to the whole Amount of tlu; several Insuraiicert made or lobe made on the Preuiises Insured by this Policy, EACM; FtllK f;OMI'ANY 1)1" NKW YOUK, Avn )T IS AiihKKi) AM> l)Kci.Aii».ii, ii> Ihi the true iriicnt uml nicaiiiiii^nf (III- PufiicN Iii'r«'tii, Hiiil of llnw I'ri'Hciii-, iliHi III ciwe llif ulKivi'-iiiciiticmi'il (Hiorr) hIiuII ui utiy tiiiif afU-r tin- iiiHkiiitt, luid iliiritiK the tiiiip tlim Puliuy wmilcl iilluTwi."!' iMiiliiiin' III (iircr, hf H|ipri,|iriiilt'(l or ii-'i'il fur llii- (/iii"!)*!"!!* of ciirn in;; nii or c\t'ri:iMiin» lli>' iriiilf, Ini.xiiifM- ur vih'iiIiimi ut u Stift|>.|iiilt'r, Talluw Cliuiiillir, llrcwur, MulHU-r, Hiker, IIoih*- Maker, Siij^ur Jliliinr, Di-tilli-r, ('licini-'l, Vrtriiinli Muker, F'u|x-r MukiT, Htttlile Kfi-per, Tuvrrn Ki'i'j.'r. (y'liiiin, <»lu-iH lip Kiiitliciirt'iin' Siilir, Oil uii>l Cr Hliikl! tie llKiiiltiir tlie |iurpiH (rcHxIn, t|mt then ntnl from iiieiiiM-ti)rth, no Imiij us tlio DUhl ('•lore) Hliitll lie u|i|iru|iniilc(| or ii^eil fur uiiv ni eillHTuf llie |iiir[KiHe'' iitiiri-iiid, Tlieic Pri'^iiit- "liull I'cUHe and lie ut' no lcir(>' yr ellec't, rNl.KH.-i miii'HNt i.hI'; KHi'ieciAi I V AdiiKHi iiY PIUS (loBruR.sTioN, iiiiil fueh nur'^nu'iii lie MigiiiHed ' lie liiiide, dcM-i iiol (' <>i l.ftiidu, Bond*, Millt, Note", or other Evideine- iif Uel'i^', Money or Hiillioii. Ami it is Undlustood ami Aokkkii, um «ell Uy ihit* Cor|Kinitioii, im by llie UHsiired, liHiiieil III thiH l*olii!y, liii I ull othern wlio tiiHv liecntne inter- ected tlerein, ihiit thin Iii^iirunoe n* iiiiiile .ii.d ucce|ilcil in rilereiui in ihi* l'ri'|)o-!iilM winch liecoriipiiiiv tlieMe I're.-ent-. and in exeryCii-'e the Haid I'ro- fxiHttl-i ilPe ti> lie ifed lo explain tlie i{,j.'lilh and Otili^atioiis of Ilie |Miilies except so fur lorth im the I'oliey itreil >pei:iti(,'Hlly declttiei« tliuse Kighlh and I )llli;j;iltliill'' In Witnk.sh IV hereof, the "aid f'orporulinii i\!ive Caused their Common Skai, to |,( allixed to thefie l're(*ent-!. uiul the Miiiie lo be rijjiud hy their l'KK.iiuk,>T and SKCKKTvin, ihe day of in the yeur of our Ltrd Ouc thou-iuid l'jis;lit hmidped and - - N IJ. — Till- Folicy IS not asmgiiuLile, unletiij Firi',' THE Legislalnre of tlie State of New York having iiiCurporiite.1 tlie Eagle 455. "fAll policies issued in New York, from 4. d. 1800 to 1835, or later, coiitaineU this or a Himilar form of " Proposals for Insurant'';. ' printed in large ty)ie Had iirpcedinj? the " Classen of Hii/.tirds ' !t was a kind of advertising sheet setting tbrtli ihn merits of the com|miiy. (171.; In Ibis instance the second clause, indicated hy •,*, was eviJeutly intended to give notice tliui this wixs no! a miilnal compuny. (1)4.) 210 EAGLE FIKE COMPANY OF NEW YORK. Fire Conij)ftny of New York, witli a Capital of Five Huridreil Thousand Dollars (witli ilie liberty of increasing the Hame, if tlie hiinirieps of the Com- pany slioniil require it, to One Million of DollarH), Cor tiie sole p\ir|Kise of instirujg HuildingK and every kind of personal I'rouerly I'roin IjOsh or Damage by FJUEj and the Capital of Five Hundred Thousand Dollars liaving nil Ix'en paid, or fiecured, to I* paid, according to Law ; — th" Direc- tors feel a partioular .JUti:-faction inorteringto their Fellow Citizens through- out till I'nited States, the Means of Security against that kind of Lose ■which frequently, in an Ukexi'Kctkd Moment, invi. Hazaiilcniijtio. (iscon-'llazariiou-tioodseon- HazardcMiHSoodseon- tained in Itui' lingBi tained in I{uildin);t< tiiiiu d in rjiiildingg of tiie First i UK'S, j of ilie Secomli. Iobh.^ of tlie I'hlid (.NugB. Goodi* not hazardous roi.taiii'Ml in snoli Iluildiiigtt. Jfor turns nnt exceed- iui/ lcyiuh, an(l niu''t be particularly described in the policy ; and for sucli Risks, an additional Premium will be reijuired. 4»7. This Table of " Classes of Hazards and Rates " was evidently copied from the policy of the PhiBuix Insurance Com pany of Loudon. (5>»5.) 4{18. CONDITIONS OF INSURANCE. I. Al-L applications for Insurance must be made at the Office of the Company in writing, and the Subject od'ered for Insurance accurately described. II. If the property offered for Insurance is within the District of a Surveyor oi this Company, he will examine and report thereon; but if not within any such District, then the applicant must himself furnish aa accu- rate itnd jus: Description thereof, viz. : of what Materials each Building is constructed; whether occupied as Private Divellings, or how otherwise, where situated; the Names of the [jrest-nt Occupiers ; how situated with rt'=pect to other Btiildings. And in the Insurance of Goods, Wares and Mi'rchandi..;c, ih(! Place where the same are deijositeil is to be de.soribed; also, will 'her such Gools are of the kind d-' nominated Haijanious, and whrther any Manufa';t(jry is earned on in the Premises, all which is to bo certilied and atle.stel in such .Manner as the nature of the case may admit. And if any Perscm or Persons shall insure liis or their Buildings or (.loods, and shall cause them to be described in the Policy otherwise than they really are, si aa the f jjiible f) the Payment of a Jiiitcitltlt ProiKJi'tion ut tlii' I.us.-, or Danuigt wiiich may be tusiained. VII. Nil Loss or Damagf by Fire will lie paid that may hapfipu or take place in (''.iisi'ijut iice uf any 1 nvasion, Civil (Vinimotion, llioi, Military or Usurped Power whatever. VIII. liooks of Account, Written Securities, Notes, BilL«, Bonds, Deeds, Heady Money, or Bullion, cannot be insured. IX. Jewels, Plate, JledaN, or other Curiosities, Painting.«, and Sculptures, are not included in any Insurance, unless such Anicled are specilied in tlie Policy. X. All Persons insured by this Company, .sustaining any Lessor Damaa;'' by Fire, are ft>rtliwiih Si give Notice iv the Company, ami as soon alter B3 possible, to delivct in as particular an account of their Loss or Damage, figned with their uwn FI aiids. as the Nainn- < I the case will aaniit of, and makf: Proof of i.iie same by thtir datli, iir iillirmatioii, and by their R'xjks ci( Account.', and other proper Vouchers, as shall be reasonably required ; and shall n.ake Oath. « hether any and what other Insurance is made on the same Property; and shall procure a Certiiicate under a Hand irf ». Magis- trate, Xotary Public, or Clergyman (most Contiguous to the Spot where tl.,' Fire happened, and not concerned in such Loss), that they are acipiainied with the ('haractfr and CircniU'iianceH of the Person or PerHons insiirvd ; and do know, or verily believe, that he, she or they, really, and by Misfor- tune, and without Fraud or Evil Practice, hasc sustained by such Fire, Lose and Damage to the amount therein mentioned ; and until such Allida- vits and Certificates are pnxlueed, the Loss shall not be ]iHy:ilile. Al-u, if there appears any Fraud, or false Swearing, the Claimant sliall forti^ii his claim to Restitution or Payment by Virtue of this Policy. XI. Incase any I>itlerence shall arise, touching any Loss or Damage, it maybe submitted to tin ■liidgmeut of ,\rbritrators, inditrerently chosen, w ho.se Award in writing shall be binding on the Parties, and when any JjOss or Damage sliall happen, the Company shall p.-\y for th<' same in Sixty Days after the Loos fhall have been ascertained and proved, without allow- ance of Dirtcount, Fees, or any Deduction whatever. XIL Insurance may bi' made for Seven Year.s. by paying the Prenuiiiu f)r Six Years ; and for a less number ot i'larsthan Seven, a reasonable Dis- couui will be alluwed. m EA.GLE FIRE COMPANY OF NEW YORK. 213 I REMARKS. 450. The policy, with its classiiioation of hazards and conditions, is inserted in full, as being the form geu( rally UHod abont A. n. 1800, and the fir.st ajjproach to tlie niodurn form, and as indicating the progress made in tlie art of polic}'- writing Uf) to that time. It will be noted that the boily ol' the policy is very wordy, and embraces many piovisious which are re]jeated among the conditions attached thereto — a p(!Cidi- arity continued in the policies of New York city companies for the suljsequent quarter of a century or more. The instrument is in form a legal contract, drawn without reference to economy in the use of words, and is under seal. The duration is witliin the space of from the day of date, M'ith no Hmit as to the hour of commencement or expiration. IttO. The contribution clause (I901^ is here first met with in American policies, and j)rovides for pro rata contiibution, "as the amount of the pohcy bears to the total amount of insurance on the property," in the body of the instriunent, while among the conditions it rnads, " Parties insuring shall be liable to the payment of a ' ratable proportion of the loss or damage ' which may be sustained." This incongruity is to be found in all of the policies uf New York city companies for the next half of a century. (300.H.) Api>lication8 and surveys are here made obligatory, Ituc are not made a part of the policy. Misrej^rcsentatlun is provided against. Notice of loss is made necessary forthunth {'102ft'^, and proofs of loss as soon as pos^iible. Vouchers and iHMjintraten ecrtifii'iite are called for. This clause is almost identical with the present form, and is the Hrst time these ret[uirements have been met with. The form of magistrate's ceititicate (,lttl4)* recpiirtsd by the Waskinyton Iw^ivancc Compuny (a. d. 1802), differs somewhat from this, and, if adopted at the present day, the certiticate laiifld iiave a value which it fails to possess under the present form. (I92W.) 2U EAGLE FIRE COMPANY OF NEW YORK. losses were paid in sixty days after proofs, "without disi-ount or fee.s, or any deductions \vli;itever." 2\'rm pollrieii were takun for seven years, at the price of six ainntal ]>romiunis. Nothing \H said as to rchistafement, though this provision is to be found in earlier American policies. Nor is anything said about the right to cancel by eitlier party. Policy fee, twenty-five cents ! All svms in excess of 810,000 j^anZ an e. 1835 until about A. D. 18G0, the following form was generally ado[»ted by the New York city companies, and printed forms in blank Air transfers of the policy, and the consent of the company thereto, are here first fountl. The matter under head of " l'ro2>osals for Insurance," to be found upon all the earlier policies, is omitted. The cla-'tsificatlon of hmartis (4H3), increased to seven t.la.sses in ISl-i, is here further extended, and classified as not hmardous, hazardous, and extra hazarjon.'i, with a special memorandum, including the sjjecially hazardous of the present day. 4rs, ndinini.tirators ami a8.-i^n9, all rtunh losa or damaj^e, not e.xceedinj; in amount th'' eum 216 TUE FIRE POLICY OF 1836, insured, as sliall happen by lire to the property as above specified, during to wit, from the day of __ one thousand eight hundred and (at 12 o'clock at noon) until fiie — - — day of — one liiousaiui ei^ht hundred and (.at 12 o'clock at noon,) the said lose or damage to I* estimated aeconling to the true and actual cash value of tlic caid jirojierly at the time the same shall happen ; and to be jiaid within 8ixty days after due notice an(i proof thereof made hy the insured, in conformity to the cunditionw annexed to this policy. P1U)V'11>KD ALWAYS, and it is hereby declaral, that this Corporation shall not be liable to make good any Iosm or dumiige by tire, which may happen or take place by means of any iiivaHioii, m.-iuricction, riot, or civil cdinmotion, or of auy military or usurped power. And provided vi'ktiier, that in case the insured sliall have already any other insurance against loss by tire on the propt'i'ty hereby insured, not notifieii tu tliis (Corporation, and mentioned in or indorsed upon this Poiicy, then this insurance shall be void and of no eftect- AND, if the said insured, or _ — assign.s shall hereafter maki; any other insurance on the same property, and shall not, with alt reasonable diligence, gi\e ncjtice thereof to this Corporation, and have the same endorsed on this instrument, or otherwise acknowledged by them in writing, tills Policy ■^hall cease and be of no further etiect. AND incase of any other insurance ufxin the properly hereby insun'd, whether prior or subseijuent to the date ol this Policy, the insured shall not, in case of loss or damage, be entitled to demand or recover on this Policy, any f/reater portion oft lie hiss oi' daniivji' snstnlned than the amount hereh;/ insninl shall bear to the whole amount insurcil on the said property. AND IT IS AfrKEKD AND DECLAKKD to be the tr'ie intent and meaning of the parlies hereto, that in case the above-nu'ntioned (building or premises) shall at any time after the mak- ing, and during the time this Policy would otherwise continue in force, lie appropriated, ajipliei, or u-^ed, to or tor the purpose of carrying on, or exercising therein, any trade, bnsi' 'ss, or vocation, denominated hazardous or extra hazardous, or specitied in the memorandum of special rates in the terms and conditions annexed to this Pc>licy, or for the purpose of either keeping or storitig therein any of the articles, gouls, or merchandi>e, m the same terms and comiitiuns ilenominated hazardous or extra hazardous or includrtl in the memorandum of special rates, except as herein specially provided for, or hereafter a^'reed to by this Corporation, in writing, to be added to or endorsed upon this policy, theti, and from thencelbrth, so long as the same shall he so appropriated, applied, or used, these presents shall cea.se, and be of no force or elfect. AND IT IS MORKOVFdl DECLAitPZD that this insurance is not intended to apply to or cover any books of accounts, written securities, deeds or other evidences of title to lands, nor to bonds, bills, notes, or other evidences of debt, nor to inonev or bullion. And that ,'iis Policy is made anil accepted in reference to the terms .ind conditions k w. annexed, which are to be used and resorted to in order to explain the Ights and obligations of the parties hereto, in all cases not lierein otherwise jX nllv provided for. THE FIRE POLICY OF 1836. 217 This Inscbance (the risk not being changeil) may t.o continued for sucli further term an flhnll be agreed oti, provided tlie i-retniimi tlierefor is paid, and endorsed on thin Policy, or a receipt given fo> t'le rv^e. tkit' The intereHt of the insured in this I'olicy is not afsignHble, unless by the consent of this Corjioration, manifested in writing; and in case of any transfer or termination of the interest of the insured, either by sale or otherwise, witliout such consent, this Policy shall from thenceforth be void and of no etlect. ?« Ulitnroo mUtrtof, THE FIRE INSl'KAN(M^ CDMi'ANY have caused these presents to be signed by tlieir President, and attested by their Secretary, in the city of New York, this day of in the year of our Lord one thousand eight hundred and , 4«8. CONDITIONS OF INSURANCE. I. APPLICATIONS for insurance on Property out of the city of New York must be in writing, and S])ecify the construction and materials of the build- ing to be insured, or containing the property to be insured ; by whom occu- pied ; whether as a private dwelling, or how otherwise ; its situation with respect to contiguous buildings, and their construction and material-; and wliether any manufactory is carried on within orabiiutit; and in relation to the insurance ol gotxls and merchandise the applicatiun must state whether or not they are of the description denominated hazardous, extra hazanlous, or inclndtd in the meinorandum of special rates. If any person insuring any building or goods in this office shall make any inisre|ireseiitatiun or concealment; or if after insurance effected, either by the original polity or by the renewal thereof, the ri-^k shall be increased by any means whatsoever within the control of the assured, or if such buililings or premises shall be occupied in any way so as to render tlie risk m^jre hazardous than at the time of insuring, such insurance shall be void and of no effect. If, during the insurance, the risk be increased by the erection of buildings or by the use or occupation of neighboring premises, or otherwise, ut if for any other cause the company shall so elect, it shall be optional with the company to terminate the insurance, after notice given to the assured, or his representative, of their intention to do so; in which case the company will refund a rateable proportion of tlie premium. II No insurance, whether original or continued, shall be considered ae binding, until the actual payment of the premium, III. Projierty held in trust, or on commission, must be insured as such, otherwise the jiolicy will not cover such property ; and, in case of loss, the names of the respective owners shall be set forth in the preliminary proofs of such loss, together with their respective interest therein. Goods on stor- age must he sepnrntely and speciJicaUy imured. IV. Tlie interest of the insured in this policy is assignable, provided the consent of the company be first obtained to the transfer; notice of such assignment shall be given before any loss may have happened ; and this com- 21 S THE FIRE rOI-rCY OF 1836. panv, when so notiflctl, mny olect eitlirr to cotitintip tlie insiirftncc, ami express the sunie hy emiorseini'iit on (liin jKdicy.or refund imitealilo |ir(i|)or- tioM iif the preiiiiuiii, for the lime of tlie risk unexpired, and cancel the policy. v. Notice of all previou.i insurances, upon property insured by this com- pany shall be given to them, and endorsed on this policy, or otlurwirte acknowled>red by the company in writinj;, at or before the time of their making insurance tliereon; otherwise the |K)licy subscribed by this compatiy nliall be of no eil'i'ct. And in CUMe of Hulneiiuent innurances itn properly insured by this company, notice thereof must also, with all reasonable diligence, he given to them ; to the end that siu'h snlpscquent insurance may be endorsed on the jxjlicy subscribed by this company or otherwise aoknowledgei, in writing; iu default whereof, such policy shall thenceforth cease ami be of no e/fiHit. And in ill! '^naen of iimtiriinre this romjxinti shall be liithle for meh rateable pruportinn of t/w In.ia or assiimP'l, or, if, iliirm^ ilii' exwtt'rico ol' iliiH (toliev, or iiiiv reiii-wul tlicrt-of, tin- rink rtliull bo inorcHfed by any ineaiin witliin the uontrul of t\w aH-^iircil; or by the ocoii- |»fttinii i)f Hi«' preinirteH for more hiiziirdons pnrpoKps than are |ierinittoii \>y (hi-i policy i or, if Uio iiHtnirLiI, itt nr before ilie lukiiijf <. f unv rfiicual, Hhiill lail lo notify thfooiiipaiiy, in ifr///«,'/,o( iiiiy iuiToasi.'of die lin/.iuil, whctlir-r within or without 'till' preinixeH, thin policy nhall bo voiil Evfry remwa! shall In- (l('(.'im'(l to U- ina'le on the faith of the rcpresiiilatioii on whii'h the orijiinal policy was grauteil, uuIchij HUiierneil('il by a new ilesuripf.ioii ol 'he ri.sk. II. Thifl insurance niiiy be leniiinulnl iit any liine, fit the rei|ii('si nf the aHMiireil, in which cawe tlie company hIhiII retain only the cnstoninry Hliort ralep. lor the time the policy hiis been in (Iirce. The in.surance may alno be at any time terminateii at the option ot the comiwny, on fjivinj; notice to that effect, anil rei'iimimj; a ratable projxjrtion of the ))remiiiin for the unexpireil teiin of the policy. III. If tlie property to be iiLatireii be hiM in ini.sr or oii cominiHgion, or be a leu-ielKiliI, or other interest not ab.tolnte, it imi«i lie -^o represente.i to tlie company, and e.\preHseil in the policy in writing; < herwi.i-e the insur- ance, as to Huoh property, nhall be void, and in case of Iohh the natnes of the resperiive owners hIiuII be wet forth in the preliminary proofs of such loss, with their re>pecti\e interehts therein IV. Goodn held on Htorasie miiht be neparately and Rjiecitically iuMiired. V. No iiL-surance, wlntlier orij^inal or continual, f*e of fire, or exjwfiure to loss or damage thereby, the iiiHured pbiill urf- their best endeavors to save and protect the property, and the com- pany -hall not be liable for any loss sn-"tained in consequence of neglect to do so ; and it is mutualiy uiider-ii),ril that there can bi- no abandonment to the insiu'i r- of the subject insureil. IX I'en-oiis sustaining loss or damage by fire shall forthwith give, notice thereof in writing to the ciimfiany, and a." -joou after as possible they slinl) deliver aa particular an account uf the \uc.6 ami damage a.s the nature of the m\ TIIK FlUF, rOIJCY f)F 1R3G. 221 ; cam- will aiiniil, Hipnj'd with llu'lr own liurnlH. And tlicy Klmll acrornfiany till' Niiiiu' Willi llu'ir oiitli or ulHrniuliun, (jtriiiriiikr tin- 'iiiil ucciiiint. lo hv true Hini jll^l ; hIiowiii):, aino, (lie owncr-liip of llif piojxrij iriHiiredi wliul ollu-r iiifuraiice, if any, exinlcd on the Harne jiropj-rty, and jjivinn a copy of (he wiilien [Hiilioti uf the (lolicy of eiu'h c.oiniwiiiy ; what wan the wliolo cumIi vuliu' of till' Hulijfi'i iiihiirt'd i in wliut iiiiiiiniT tln> hiiildiiijj; inHiircd, ur oon- tuiniiij; llie flulijfot iiiKiiri'd, and the upvitiiI parts tliTeof, won- occupied at the lime of th<' los.^ j «lio were the (HUiupiint.x of t-iuli liuilditi^; mid when ami iiow the lire origiimted, ho fur hk lliey know or lnlii'Vf. 'I'liey uliall i.lso pn^iiicc a cfrtillciitv iindpr ili<' hand and "eal of ii nia^'iHtrate, or notarv piitilii;, nioHt cunliniioiiH to tlit- pliicc of the tiro, und rifii conci'rnt'd in thfi loH-', staling thai he liaH examined tiie circum^tallct'H attending the tire, Ioas or dumnijt' ullef^i'ij ; ihat ho is accjuainted with tln' ciiariictcr and circiun- Btani;«'H of tin' claiiMant, and llmt he verily heli'-vc- ihatHUoli chiinuint has, hy niiHlurtune, and wiihoul fraud or f\il practice, Hustaiiied loHttaiid damage to the i^uhjecl iiiMirfd lo the aimuinl which siu'h magistrate or nolary -hall cerlify. Whin inorchaiidiMe or other perminal pi.ij>prty \h partialh/ datnat/e'l, the in-ui''d nhall lorthwith caiino it to lie piU in an god by tliin [Mjlicy ; anil unlil .-ucli proofs, declaratioiif', and certiHcatec are pruluced, and such apprai^ali^ and examinations ni' property and accounts pirmitted by the claimant, the loss Hhall not be jiayable. In t'ase of claim for kiHs or damage on a policy assigncNJ, where there is no actual sale or trantifer of the prf)peity inmired, proofs of lo.-p" -hall be nuvle tiy the assured in i;onfonnity with 'ln^ conditions of this ptdiey in like manner a~ it no assignmeni had been made , elherwise this policy Hhall be void. The cash value of the property destroyed or damaged by fire nhall be ilei iiied lo be eiich as it may cost al the lime of the lire to replace the savie. X. In case of any loss or damage lo the pro[ierty insureil, it shall be optional wiili the company to replace the articles lost or damaged with others of the same kind and qualit v. "p to lake the f."x>ds at their appruisod value, or to rebuihl or repair the liiiil.img or buildings within a reasonable, time ; giving notice of their intention todosowithin thirty daysatler having received the jireliminiiry proofs of loss required bj' these conditioiio. XI. In case dillerences shall arise concerning the amount of any loss or OO'I TIIF. KIKK POLICY OF IHM. •Iiiinn;;;*', tin' mttlli'i, uttlif wntifii rf(|iu'Hl ((('cillicr |mrly, ^liiill bo Hithtiiittcil to ilic jiiil/iiii'iilof liMiiiiiTt'.''ti'i| iirbilrutors, luiitiiully cIiihimi, wliusf awanl xliiill U' liiniliii>{ on I 111- pitrlicM a* to miioIi uiDOiiiit, but Niicit uwiinl mIiuII not iK'ciilf Ibt" Imliilitv ol' thix oonipany nndcr lliin policy. XII. All friiiid or nttrmpt ill Imiid, by I'lilm' ff or tillu'rwiNC, Hlmll unii.<4t> II fiirfViiiiri' of iH i-luini on 'IiIm coinpiiny innlor tliis (>olii;y, 171. It will Iti! uotetl Unit (juit*! an udvtiuco whh madt^ in the prescMit conditions of in.siirauco in si'voral purtimiltu'a. C'lncellation by rtither piiity is provided for. l'rn|uM'tv on i;oniiii-n.s!un, or held in trasf or IcuwhoUls, riiiist bo HO .'lioy." Tliu olij()ctox|HK;t(.'d to bo rt'iilizv-d, from unifonnity in ])olii?ioH, was the pruvention of nii,snndi!rHtandiiiL;s uiid cliishingH Imreto- fore 80 common under a varioty of forms and coiiilitioiiH; ami I'ad th(> forms ror.oiiuiiciidcd by tlio iioimnittco, and ii('.copt<.'(l by tliL' Hoard, buna ac.i'uptcd and UHt-d by the I'ompaiiicis, this end would have ln't-n altaint-d. lint, niifortunatcdy, few oUices acco|ited the form aa .siiliniittt'fl; each ma. The I'OKM is as follows: The figures in 1>rnckctA (lOi^O) in the luiirgin refer to the sections and paragraphs, where the several stipulations are treated in, cxfeiisn. The marginal notes wdl serve as un Index to the subjects. 1)0 iNMUKE Indoniiiltj ^^B50). Date(K4Tj, And laid Insurance Company hereliy Ujjrci'h to iniikc j^ood unto the siU'i asuurcii executors, uiiminiH- truior'< uini HHHigns, nil such immediatf lotm nv liamiuji' not exci'cciiiig in uinoiint the nuniH insureii as iiliove i^iieeitiett, nor ine inlcrfsi of the asHiiriil in tlie property, except as herein providi'i), an sliall happen liy fike to the proijeriy so Hpecitieil from till' duy of — — one tiiou- siiiid eight hundred and — to I he day of luindred and at twelve o'chxk noon, ■ one thousand iiij;ht at twelve o'clock noon; ihe amount ut losts or damage to be estimated according to tlie ^'mm S24> NATIONAL IIOAUD KOKM OF VOUCW Liiiiilcif Ii;il)lliiy acth \\ cAMii VAM'K of llic |ir()|)crlv (it (lie tim(> .il' tlic Iosh, (IH5.I). j^iij ^,^1 1,^, ,,^||, jj^iv i|,iv^ lifter line iiolioi- iiiiii iinH)t'H oC tln> To iji- •■■'lid IK rAin •luii.i sliiill liiivi' lici'ii uiii'li' liv lilt' iiHMUri'd, ■i;iil rt'ciMVi-cl ui tliis ollicc in iici'oi'iliiiii'o with llu^ tcnii't iiikI prov iHimifi of (lii^^ policy, uiil''.-- till' |)nip<'rty Ix' I'cpliiccil, cr tip' coinpiiiiy sliiill Imvi' Lrivcii notice of ilicir iiitciition fn i(i:i!i'ii,i) or ui;i'Mii tlic (liirnn^cil prcMiiH( m. Appll'-inii'ii iiml I- It an Ari'i.iiATiON, stiHVKr. />/(«/» or (Uwrifitlon >{ tlie mvfv ^.^<»0). pi-opiriy lici-fin in-iirnl in rclVrri'il ui in (Ins policy, siicli aii/iliratioii. .vnn'C//, /tldii or dr.irriftliixi s^liiill \>v consldcreil u p.irl I'f this contiaci. iiinl a wiirninty liy ll.c iiH<^iir«'il ; Anil liny kai.sk iiKricKHKMATioN liy tlic uHNiircil of tlio Condition, Mitnotiun or occupd'n^v of llic in'opiTly. oi- any oiiiiSKiiiii to iiirilic ktiown every liictr inattiial to tli( ri-k, or liny ovei-valiiiilKin, or any MlsuKPKKst:MM'io\ wiialevcr, eillier in a written Mp|ilicalion or otln'rwisr- , Other iiHnri»iic« "''• ''" ''ii' a>-iir d sliall have, or hluili InreiilhT make any (imH). OTiiKii iNsi'KAM'K oil the property ticrehy insured, or tiny liart tiiereof, « illu'iit the (.Mti.sent of the coii,[iaiiy wntltti lereon ; Ui'iimtii'.fiiieiil Wiirriml V „M0). Mlnn-prfHeiitu- Iftlloii (ftH7). Conceal iiient C\\ niii-e "f eeou- Or if tlie iiliove- iiieiil ioticd preiniHes shall lie occupied or ,.111. V \ .iriint ,,^^.,^ J,, j4^ I,,, t M'KKASI^ the ri.-K, or hecotiie u./iint and iin- I'-' (1117, \\K>}. iiicremii' ol ziiiil JtIO), Kxtru liiiiirM. Iiii Alieniilieii . lOK.". wcupied, tiiiil So letniiin for more than thirty dayn ^vlIll(>nt notice to and consent of ihiw company in wriliiii; ; Or the risk he i I u; reused hy the erection or oe,<;npiilioii ,)| eiii>:lihoriii<.' hiiildinsXH, or hv any iiieiui.'^ whatever w ithiii tlio conti'ipj of the iisstircil, u ilhoni the a^-setit of this ('oiii|)aiiy inrlorsed hereon ; (Jr if it he a tnanufaetiiriii); esiahlishmetd inhnviu) in irhiili' IT ill ftiirt orvr nr txtid lime, oi niiiniiii/ nt niijlil or it' it sliall cetise to he operated, without '<)ie<:iiil uiireemetit indorHCp] in thin Policy : Or if the property he soi.n or tkakhi i.hkkh, or any chaii^ic lake jilin'e in title, or po«seH-ioii, whether hv le^al pr-icesti or ludie.ial deciec. or \oiunlHr\ triin^fer, i cotivey- Or if tlii^ )iropertv i-haii he assihskIi hefirt a 1o-h without the cotiNctil ol the ("oiiipatiy indorstid hereon ; Or if the iNiKKKsr <;/' //c nimiirfd '\n property, whether jiH owner, (riii^tee, eoiLsi/nee, luctor, a;^'tit, niortnii^'ee, lesnee, or otherwise, he not triilv si;iled in this Policy , Or if the assured sIkiII kkki' j/inipini'itfr, tininirk.s, nitr<>- i/li/driiii . p/iimiilioi IIS, ."ult/ii lir, lutnite aj .sniii., fnliuliinn, iiiifiht/ia, iiii.iiih'iir, limziiii', henzuli' or binziiie inrni.-li, or KKi:i' or ish: rumji/irnt', s/iirit ffiis, or (iiii/ hiiniiiuj Ihiiu i>r c//('m/((j/>i;V.v, without wriiieii |ienni.ssioii in iIuh poltes , (hen, and in I'very siicli chsp, this jiolicy kIuiII he vciid. 2. This inMiirance docH Not apply lo or vais\\\ jruuis^plnti:, wnli-hin, miisiriil or srirnlifi' iii.-rlniniinl:; ( pianolurles in dwiI)iiij:M excepted), ornm nul.t, inoiin'''. iin/liiiiti, prinfid >;M(.v/. , ininli'ii li,ii'k:i, I iiiji'ii'iiii/s. poiii/iiii/is, j'li till i-jrnniis, sniiji/iin. (-(/.i/.i, /«iii/,s'(7/>.s', unless pariicnlaily ppet ilieii in iliis policy This compftiiv i-ihall niri Im' liahle liv virtue of tins |iolicv, or any renewal iliereot, until the riikMifM tiiirelor be uclu- ftllv paid ; Kill j'i,i li.sii hij //ii'Jt a/ or iij'ftr v fiii ; ,,- , , , Nor tor iHiiiii'ii nr /•ulliiui, 'lilh, >ii>lm. arrnniils, .huh. evi' l'.M!e|iil(iniil risks / 1 J 11 I- A- , <■ II iK37). '""I''-'' OI '<:) I. rrdlill'iiiil iirtl ek'H ^1139). Ari'meiiiiiilum ar- lick's, 80;!). fri'miiini (77>'"ii. Theft (778). Kxi!e|>li(iiiiil risks &0. (l«74l TABV or U8IKPK1) I'OWfR ; N\TrONAL liO\UD KOIIM OK I'OMGY. 225 Ni)r f'lr any Io-^h in l.uil.linjjH uniimvided with i/nod itirl 'JJilmiu'ys (H:tl> Hnli.il.i...> 1 il..... ('..» I'ollci) IttWH (H4.1), lilKbtiiInK (IdHH). KxpliiHloiiH from ^LiH4, lOHIh. UpiiiovhI . f.ny in innr lit (ir cxplo^'ioii.-i of liny knul, uiiIc-ih lire chhucs, hihI IIhmi for tlic l(HH or iliimiii;*' liy lire only, winch Io.mh hIihII lie deter mined liy (lie value of the damiiged properly iifter llie (;iin- niilty liv explo.sidii or li^liliiin^. (.\dd to hI! I'oJKjies iMHiied on propi^rly out. of llie city of New York, l.lie fiillowinji iiddition lo Kceiion 2) : " VVIien property injured liy tliis compaiiy !■< damiiged liy reMU)val from a Iniildin^ in wliie.li it. is exposed lo Iohs liy lire, said damni?e shall lie liorne liy tlie insured and the in- KiirerH, in mn;li proporiion 'ih the whole .sinn in-nired liearH to the whole \ ainr of tlie |iro|irriv in-inred, of whi(;h prtjof in due lorin idiall In' niiide hy the (damianl.'' :i ll'a Imildmi; .Hlial h'\i,i., exeepl. a-i the result of a lire, Fallon bull'lmv all iiHiiraiife hy this company on it. or il.s coiileiits slmll (1B7-J). immediately eea.se and determine. I. lithe iNTKiti;sr of the assured in the property be any i„Hnriii>i« iniur- other than ih(^ entire, unconditional and riole ownernhip of eH( (Mn3j. the properlv for the i.^e and henelit of the assured ; Or it the liiiildint; insiiied staieU on i.k.ksk)i ukmind, it inust lie so n'presented lo the company and so exores-ed ml he wiitten part of tliw policy, otherwise tiie policy .shall be void. When properlv has hcen soi.lj ;ind iiKt.lVKiiKI), or otherwise .'^Jpc■He(i of, .•.-.' tJiiit nil iali'.n:il. nr lid'iihlij na Uiti /kii/ oJ Hip iu ON ^TM\,.\.t\K must i><- itparatdy and Kpf.cific- (illi/ iii.iiiri'.d- i"). It ilnrinj; this insur.mcc llie ahove-nientioned premiHOH pliall be used lor any trade, bnsinchs or vocation, or lor iJ'roiuNii, t.isiNif or VKNtitNii therein any of the articles, jtoikIs or meirhaiidise denominated hazardous, ore.xtra lia/,urd"UM, or .specially ha/aplous in ilie Hecorid clfts,H of lia/.ards printed on the back of ihis policy ; Or if the <)c'('iTi»ArtoN (if such pretnist.t he changed from one of the class dcnommaled e.xirii hazardous or s|K'cially lia/.ardoii^ lo that ot :inothi'i of the same cla.ss, e.xi'ept as herein .specially ai^reed lo in wrilinji upon this pohcy , then iind from thenceforth, so lijn<» as the t-aim shall be so appro- priated, applied or useil, thin ;• 'ic_\ ,; all cease and be oi' no lorce or e/lect. t). 'I'lie best emleiivo.K c. tlie e -Hired shall be uHed in H.wiNii and iMioTKcr, Jn the )>i'oiierly from damaj;e at and after the tire ; and m c .. i failure so to do, this company will not 1h' liable lor dn'Mft,^. c used liy mich failure , And there can be no .tiiA>i>in iKST to the company of the jiroijerty insnrtd. 'I lie Use of general ten. ;< , or anythinu; less ibaii a dis- tinct, snecilic a^jreement, (.1 'arly expressed, and mdorNcd m this [Milii'y, hliaH not lie e.i i-trued as a waivku of any pnnteil Ot vvrilten condition or restrutioii ilu'rem. 7. !n case of any otii' r iiiHiirance upon the property hereliv insured, whether made prior or sulj.ie,j;»eiit to ihediHeci tliiH policy, Uie asHtireil shall be entitled to recover of th.H com- Leaoed groiiiMl Troiicrty moI.J unit (leliviT'nl UooUb oil gt'iniifd (H;«i). SUirliiij or kic|), iiiK mw.arilniiH (1X1 iM liiiz:ci,|. iiiiHiT H|iei liilly liii /. II r (1 II II H Koo.Ih (UHIi. Cliiuiffe iif .11111- (iHiiry mil:,! |,o imii'il (HI7i. SiiKpoii » i I) II of ilHk .lllO). S|..\ln|j; I'r.ii I riy atllri' (I.M;1 . At'^l «..- >J). N.in-wjIvMr tll-.»A (' II III I i li II i I I II lime- lie. I (7,1 \N'i,ln'lln'r icsii- rt iril (,ll»!»l . 226 NATIONAL BOAUD FOHM OF POLICY. |)any no greater prujiortion of tlip loss sustained than tlie Biiin lieril'V insured hears to the whole ainoiiiit iiisiireii thereon ; anJ it is !;'.-. thy deehtred unil a^reeii tiiat in ca.Heot' the as^nrell iioliiiiiL' any other iRihev in this or anv otlier conijiany on the |irti|ieriy insurea, suhjoct to the condilion.'^ of average, ilii" policy siiail he Hulyect to the average in like liiiinncr. Ri-'nuuranre, in ease of hjss, to be si-ttled in ))ro[)ortion a^ the sum rt-iiisured shall bear to the whole sum covered hy tiie re-ln^ure(^ coinpany. 8. Tlii-i ins\iratie.(' niay he terminated nl an;/ timr at tlie (SH«). re(|nesi nf the as-iiiieii, in which case the coinpany shall Short rate (l>l5i. retain milv the cuntviiiary short rates tVir the time the' |xilicy has hecii in force. Tiie insurance may alwo l>e terminated at any tinii' at the ojilion ol' the company, on givinL' notice to that etfect, aiiri refuiniinj; a raiahle proportion o\' the preiimim for the unexpired term of the policy. '.I. Persons sustainiiij; i-os.s or Damaoc hy tire shall forth- with L'lve notice ol said los.s to the company, ami as s(K>n thereafter as pusssihle render a partirnlar accoiail of such loss, surned and swuin lo hy them, statiinj: whether any and what othej' innnrunee. has hi^'ii made on the same property, Reinsurnnoe (101«^. 'aiicellation Noiici? of los.i U..71. l«Jl>.) V r 1! ! i 111 i 11 II t '■ luoofs (18«a). Other iusuraiice {imri). irivins: coiiie- of ili< written portion of ai,l poliries thereon, I'li'teresliiiVlii. '^'so the iictiutl cii.s'/i niliie t^it' llif prt>perly and their interest t'8iaiidoc«uiath(l'J6.i.) or KX vMiSATioN.s iiiidcr oath by any person ap|»oiiited hy the coinjiany, and siihscrihe to such e.vaminations when Uook.s of account rediieed to wntiiii;, and ^liiil! also firoiliice their hooks of ACCOfNT and other vorciiKUs, and e.vhihit the same for ' e.xaininat'on at the oHice of the conipany. and permit ex- tracts and copies thereol to l>e made ; the j 8-ured shall aNo produce rertifitd C'ipies of' nil hills and inccices, the original.s of which havt' l.een lost, and .shall e.>cliihit all that remains Salvage (1780). of the pro|ierty which was covereii liy thi.s jiolicy, damaged or not damageii, lor examination to any person or persona named hy ihe company. {I);/). When I'KRsoVAL I ROPERTY is damaged, the assured ini-p of proporty shall forthwilh cause it W> Ije |iut in order, assorting and amiiiring the varivius articles according to their kinds, separating the damaged from the undamaged, and sliall cause an inventory to Ije made, and fiirniHlie be mutually appoiutcd by the insured and the company ; their as ovidoii'-e iift.r tiri- US*;')- (17831 803). NATIONAL DOARD FORM OF POLICY. m \ report, in writing, to \>e iiia.le un^Icr oath before any magis- trate or oilier properly comiiii.'^^ioiieil person; one liultuf tlie appmiherV fi'ert to lie paiil tiy ilie as:l. Tlie ci>Mipaiiy reserves tiie rit;lit ta lake the whole or iinu part ofthflartnh-^ at Ihnr a/'prained value ; and until hucIi proolH, (ieclaiiUioMs, and certilii.aies are pru.ini;eii, ami ex- aminations ami appraisals pertDitted Uy the claimant, the loMs Khali not tie payable. (9'<). In case ot" loss on property hell in lriii!t, or on eom- ininsion, or if tlu' inieiesi nf tlie assured be other than the entire and solo ownership, the names of the respeeliee OWNKRS tihall be set forth, togetiier with their respective interests therein. If this (xiliev is iut>.t\e pai/ahle in case of los."* ton third larti/, or held as collateral security, the proofs of loss shalh .)e made liy the party originally insured, unless there lias been an a(!tual sale of the properly insured. All FK.ifit, or ATTKMWr AT KK.u I), by fal>e swearing or olher.vise. shall cause a forfeiture ol all claims on this com- pany under this |xjlicy. Bui prm-jded, in case JitTereiices shall arise touching any lo.sM or dania^'e, after proof thereof has been received in due form, the matter shall, at the written recpiest of either party, be .snbmitieil lo impartial auhituatohs, whose awanl in writing shall be liindmg on the parlies a.s to the amount of suvh loss ordama>:e, but shall not decide tiie liability of the company under this policy. And proviiled further, thai it shall be oiitional A'itli the company to HKi'AiR, UKni'ii.K, or rki'i.ack the projjerly lost or damaged, with other of like kind and iiualiiy, within a reasonable time, giving notice of their iiitentioVi to do so within thirty days after receipt of proofs herein reijuired ; and ill i.'a.ie this rompani/ tleet to nhuild, the assured shall if rei|Uiied, furiti-h plans ami specifications of the buildings destroyed. The CASH v\i,CE of property destroyed or damaged by Are shall in no ca^e exceed what wi.iuhf be the cost lo the as- sured, at the tune of the (ire, of replacingthe same;ainiin cast' of the i>kimu;oiatii',n ofsuch property from use or other- wise, a suit.'ible deduction from the ca.-h c.ist of replacing pjiall be iiiii'le, to ascertain the actual cash value. JO. /■/(/;•• /';i.si/r((K(« (the risk not being changed) »tai/ 6e t nu'rned tor such lutther time as shall be agreed ori, pro- ■:\\i ':. \. • prt-miiim therefor is paid and eiiilorsed on this ^ol\cy, 1 a receipt given for thf same, and it shall he cm- side'. J, us oi'tiHued moler the orir/inal repres'-nUilion. ami ;'■ >f ' original amounts and divisions, unless otherwise ^' " I 'd in writing; but in case there shall have beer, any cllf.. ie I'l 'I'e risk, either within itself or by iieiifhlxiriiig building-', net 'nude known to the ctim(,any by the assured at the ume of reii>'wa!, this policy and renewal shall be void. 11. It is apart of tins contract, thai any persr,n other tlinn the assured, who may ha\e nrocnred tins insurance to Ik' taken by this company, shall be de<>med to be the agent of the assured named in tins |iolicy. and not of thi.< (uimpany under any eircniiistances wliatevcr, or in any transaction relating \a> this insurance. 12. It is furthermore hereby expressly provided and in"tually agreed, tiiat no t('4). Property in tniat or on (• iiniiiis- 8i(U(lll>7). Payment to a tliiril p.'irty a8J:{, l»73). Fraud (r^H^\ False ."nvefiiinij (5»«). Arbitration (1810). Reiiistntempnt or robuiiiliiig (1835). Measure of dam- aj!!' il«»()). Doproclatiou (1740). Renewal (fTti). Void In oa»e of change of risk. (IIU). Agent ot the In- bured (7»'i, 1323). Limitation of ac- tlon(ll7a, 1173), I 228 NATIONAL HOAKD FORM OF rOLlCY. Gas Mai'liineg (804). Fixtures, etc cKO.'ii. BulUiors' Risks 1k> eustainalile in any court of law, or chancpry, until afler an awiinl tiluill Imvo been olitained, tixin;^ llie nniuuiit of 8uol) cluitn in the manner above provideii, nor nnless snoli suit or action ."iiuli be coninience'l witliin twelve months next after the loss nhnll occur ; ami shcuilii any suit or action be coinnieneeii against this company after the expira- tion of the aforesaid twelve months, tiie lapse of time shall be taken ani deemed as conclusive evidence against the validity of such claim, any statute of limitation to the con- trary notwithstaiidiii|i. Cfuti—Thf fieneraiing or evaiiorating within the i)uilding or contiguous thereto of any snlistance l(>r a burning gas, or the use of gasoline for lighting is prohibited under this policy, unless permittiHl in writing hereon. Fences awl other )'(tr v-tlH). (3tt3). Subscription. Date of guliscrip- tion t86;>). endorsed in writi" where five days ar. .!■ repairs, without notic. And it is i'kukby between this Ci>iiiiiany except in dwelling houses only, • tin any oni' year for incidental ' 'rdorsement. L'..- :..'.ST()01> AND .4(;iiEED by and and the assured, that the p«.)licy is made and accepteil in'relerence to th'^ foregoing terms and ciinditiops, and to the classes of ha/.ards ;iud memoninda printed on the buck of this fwlicy, which are hereby de- clared to be a part of this contract, and are to be used and resorted to in onler to determine the li Jits and obligations of the parties hereto, m all cases not herein otherwise sjie- ciallv provided tor in writing. In" WtrxKss Whkhkok, — -. have caused these presents to be signed by their President, and attesiei. by tlieir Secretary, or other otticer in (he tnis daV 'if in the year of our Lord one thoilsiiiid eight liuiidred and _ Secretary. President. Where Uie policy is to Ue valid only iiftcr being couiiter- sigiitHl by a dtily iiuthorized agent of the com[)any, the following fofiD of subscriiitioii is used : — l.v WiTNEs.H VViURKOF, the Insurance Coi)i|winy of the city of have caused 'hese presents to bo signed by their {'resident, and att.e.sted by their .Secretary, in the city of , not to be valid, however, until countersigned "b\ tlie dulv authorized agent of the company at. (100.) . . .- l*resident. Seer elan/. Countersigned at . this -day of ,18- Aijent, In some forms of the agency policy, the following is used : — " Not to be vali.l until countersigned by (John Jones) the July authorized agent ui'thc company at {Schcncksvilie, I'a.)." STANDARD FOUMS. 229 The objection to this form is Unit each policy ho.cnmvs a po\V(M' of attornoy in. the hancb of the party therein desi,<,'nated as agent, ami might, under certain eircuiiislances, be productive of trouble where a change of agent might be desirable. STANDARD FORMS OF TUB FIRE INSURANCE POLIOT. 477. In July, 1867, the Legislature of the State of Connecticut directed the Ins\irance Coiumis.sioner of that State to prejare a series of " uniform conditions " f(ir the fire policy, to be used in that jurisdiction. But when ready for jn-oraulgation the form met with such determined opposition from the underwriters at Hartford and in New York, tluit the Act was repealed at the succeeding session of the Legislature. A copy of these " Uniform Conditions" can be found in vol. xxxi., Ciirrie's United States Magazine, p. 70. In 1873, the Legislature of Massachusetts passed an Act, "to establish a standard form for insurance policies." And under chaptiU' 17") of the statute of 1880, liiose of 1873 were amended, and what is now known as the Massachu-xetts Standard Policy was made obligatory upon all fire companies operating in that State as follows : — 478. t'li-vniK 175— .\ii act, in addition to an act to estalilish a standard form lur iiitniruno*' (Kilicies. Be it enacted by the senate and liouse of representatives in General Court aspeml'led, iii\d by the authority ol'the siinie, as tbllDwe: — Section 1. Xotiro tn.^iuancc coinpanv nutliorized to ixHwe policiep in this Com iwenlth riliiill is'uc ; that the conipauv ^hiiH not be liable I iprt tion (it the actuii iHilii'v ciniiiiiniiif; any corKUtion or oonilitio;i3 diti' I Viii ne <>t tt pni|iert\ 1 the whole or any fractional j^Hir- ■d, attiietiriie of the loss or daiiiaj;c, nule>>' .-aul condition or coinbtion re separately iinnicd in h primer ty(M', Roiiian iir old si vie lace, at the head of the and ig also lu the same type in the tiody of the jM>licy : and no -iich com(iaiiy, excepting iiinniai cuiiipaiiits, except as provided in section two of this ,\ot, .-hall issue any policy in which the printed iiarts, exclusive of tlic ilescription of the property in-ured, vary from the .NliiR*achiisetts standard |)«ilicy, sel fortii in the acts of the year ei;;hti'eii biindr'>d and seventy three, chapter three hun- drehat every such company may insert any provisions varyint: from the nrovnions of the said siamlard poficy, jirovided such pr'.>- J' ill visions are prinitHl upxui separate sjiji.s or riders, in type of size not smaller than lonn f)rimer, and are accepted l)y tiu' insured ; and that e\ery -iuch slip o' rider is signed by him as well as by an a^ent or (.ilticer i.if mich company ilnly authorized tiicreto. 230 MASSACHUSETTS STANDARD POLICY,, Skctiov 2. The proviflions of the precodiiif; section shall not prevent any company aiilliorized (u insure (\painsi ilamaj^e by lij^htniiif? from adding iu the clause in fiaid stan.lurd policy enniiitTutinfr the perils insured against, the words "also any damage by lit'liining, wliethcr fire ensues or not," and also from adding in the clause of said policy, iiroviding for an apportionment of lo8S in case of other inmraniH', the svorils " whether by lire, ligltning, or both." Sectiov 3. This act .-ihall take etfect upon the first day of January, in the year eiglucen hundreil and eighty-one. Approved April 7, 1S80. TIio form of the policy as scut out by tlic Stato authorities is as follows : 47». MASSACHUSETTS STANDARD POLICY. STOCK COMPANY. — CASH CAPITAL, $3,000,000. No. $- Premium. THE INSUIIA > , COMPANY OF THE CITY OP Tl)i-i compaM- Mali ni •• liable beyond flie actual value of tlie ir)!-areU p operty at tlic time any lo.-s or damage happens. In consideration of— Dollars, To them [)aid by the insured, hereinafter nimed, the receipt whereof is hereby acknowledged, do insure against los.« or damage l)y fire Amount insured' to the amount of ___Dollars. Property lusureJ. . ^ Sum luriuted. Time. Kat«, Premium, "^col'enMi 'b' iiills of exchange, Doles, accounts, evidence^, and securi- Poliry ties of property of every kind, U)oks, wearing apparel, plate, money, jewol.s, ii,eda!«, patterns, models, scientific cabinets and collection.", jialntings, scnipti.re, and curiosities are not included iu said in.-^ured projjerty, uale.ss specially mentioned. Term. Sjiid (iroperty is insureil for the term of , beginning (..u the day of \n the year one thonsmd .-ight hundred and _ , at noon, and con- tinuing until the ...... day of in th thousand eight hundred ami — lie year one , atnooii,a^'ainsi t excep ~ ^'agaiUt.'""*'^ "" ''""' 'J''''*""aK<^ h' ^•ll"■■. originating from any cause invasion, foreign enemies, civil commotions, riots, or any military or usurped power whatever; the amount of .-^aid loss or damage to be estimated according to the actual value of the insureil property at the MASSACHUSKTTS STANDARD POLICY. 231 time when s>ncli loss or diiniiif^e happens, hut not to include loss or damage cau>ed hy ox|ilosion3 of any kind unh'SH fire ensues, and then (o include tlmt caused liy fire only. jMaiHTH iiviiid This ix)liov shall be void if anv material fact or circuni- stance stated in wntin;^ ha^ not been fairly represented by the insured, — or if the iiiHiired now lias or sliall hereai'ter Tiiakc any other ini^u. ranee on the said property witliout the assent in writing or in print of llie Coinpiiny.— or if, without Kuch assent, the saiii property shall be removed > except that if such removal shall lie necessary for the preservation of the property from fire, this policy shall be valid without such assent for five days thertafter, — or if without :^uch assent, the nituation or circunistance.H affectiiij; the risk shall, tiy or with the knowledge, advice, a;^ency or consent of the insured, he so altered as to cause an inorease of s\udi risks, or if, with- out such assent, the said property siiall be sold, or this policy assigned, or if the premises hereby insured shall become vacant by the removal of the owner or occupant, and so remain vacant for more than thirty days without such ascent, or if it be a niaiiufacturinj^ establishment ruunino; in whole ■)r part extra time, except that such establisiiment may run in whole or !" I'urt extra luuirs not later than ninf o'clock i>. M., or if such estaiUislmient shall cease operation for more than thirty days without permission ii. wririnj; indorseanv olniiiiR insured sliiill as.iign to it, t(i 'he extent of the niiiount so partiesV''''^'^ r**''^' '''' '■'r''^*^ ''* '"'^''''^'^'" satisfaction for the Iosh or damage from any peison. town, or other corporation, exeeptinj; other insurers ; or the inanred, if requested, shall prosecute therelbrat the charge and for the account of the Company- liii^lits of par- If tli'< iiolicv shall lie made payable to a niorlmgee of the ties HI CUSP . • • I „ 1 „ 1 , til.- I'olioy ia insured real estate, no act or default of any perMon other than to'''a'''rnort- *'"^''' '"'"'"'S'^n*''^ "f I''"* asreiits, or those dairninj; under him, gagoe. shall allect such mortgagee's right to recover in case of loss on such real estate; ^>ro('i(/<'rf, that the niortgigee shall, on demand, pay according (o tlie established scale of rates for any increase of risks not j)aid for by tiie insured; atid whenever this Company shall be liable to the mortgagee for any sum for loss under this jKilicy, for which no liability exist.s as to Ihe mortgagor, or owner, and this Cimipaiiy shall elect by itself, or with others, to pay the iiiorlirugee the full aiiiount seciin-d by such mortgage, then the ir.orlgagee shall assign and transfer to the Com- panies interested, upon such payment, the said mortgage, together with the note and debt theretiy secured. (;!imviiation of This Policy may be canokllep at any time at the request of tlie insured, who shall thereupon be entitled to a return of the |)ortion of the above premium romaiiiing, alter di'lucting the customary monthly short rates for the time this policy shall have been in force, 'i'lie Company also reserves the right, after giving written notice to the insured, and to any mortgagee to whom this jxilicy i.s made fwiyable, ainl tendering to the insurcil a ratable pro|)ortion of the j)remium, to cancel this fjolicy as to all risks subsequent to the expiration of ten days from such notice, and no mortgagee shall then have the right to recover as to such ri'^kfi. KiiTereiiocsi tu I^ case anv dillerencc of opinion shall arise as to the amount ho siibmitteU , " , ■ ,• ■ . i, , , , ■ i to referwb. Of loss nniier ilii.s jxilicy. It IS mutually agreed that the said loss shall be referred to three disinterested men, the Company and the insured each choosing one out of three persons to be named by the other, and the tliii'd being selei'ied by the two so chosen, provided that neitlier party shall be required to choose or accept any person who has served as a referee in any like case within four months ; and the decision of a majority of said referees in writing shall be final and binding on the parties. No suit or action against this Company for the recovery of any claim by virtue of this policy shall U:. sustained in any court of law or equity in this Commonwealth unless commenced within two years from the time the loss occurred. MASSACnUSETi'S STANDARD POLICY. 233 In WitiiPHfl Wh("rw)f, tho said INSURANCE COMPAMV lias oaused thi." Policy to \iv pijiiuNi by its PreHideiit, anil attcBti'il liy ilf* Secretary, at ilf nllioc, in Hie (lity ol Hnl tluK Policy Hhali not lie valid \intil counterMgiitd liy I'jie duly authorized Agent of llie Coinjiany at I'resident- Secretary. END0R8KMKNTS. This I'olicy is not asMif^nable for [»urpo:'eH of collateral Becnrity ; Imt for such pnrp.)se, it is to be endorsed " loss, if any, payable," etc., such etidorse- tnent bcinj; on its face. In cu^'es of actual sale and transfer of title, leave huvin;^ been previously obtained, the form subjoined may be used, which must be executed at the time of sai!' .Statr, on or la'Htir tlio ISt'i ilay "f October, iSSd, ii form in lilank of a oontraot or policy of firi! iii.-uraiu'i'. tOLTi'thcr with siuii [irovisiniH, aurci'iin'iit.- and coinUtions an may be ir.dorseii lliereou or added thereto, anil I'onu a part of .xudi contract or policy. Seo. 2. On and after tlie 15tli day of January, 1H.S7. no fire in- auraucr company, eerporiition or association, their otfieers, brokers, a;j;euts, solieitors or (Muploye'cs, shall make, issue, use or deliver for iiso fire insuranei' policies on property in this State, other than such as shall conform in all particulars as to context, provisions, aiinMimcnt.-i and con- ditions with the form of contract or jtolicy filed in tlu' ortiee of tho Secretary id' State, as provid<'.d for in the tirst section of tiiis act ; and no other or ditf.-rent ))rovisioii, asiroeineiit. condition or clause shall in any manner lir made a part if said contract or policy, or he iudorsed tliereon or delivered therewitl , except as follows, to wit ; 1. The name of the company, its location ami its place of business, the date of its incorporation, the anH>unt of its paid-up cafiital stock, tile names of its incorporators, the names of its otlicers and aLrents, the number and dati' of the policy, and if it be issued throusrh an aa;wnt, the wonls ■■ This jiolie.y shall not l)e valid until countersi<.rned by tin; duly nuthorizeil aL'ent at ' may lie printed on policies i-sued ou jiroperty in this State. 2. I'rinf.'d or written forms of di-scription and specification or sidied- ules of the j)roperty insured uiay bi' attached or appended, as a slip or rider oidy, to any policy issued ou property in this State, 3. A company orgatdzed or incorporati.'d under and in pursuance of the laws nl this State or elsewhere, if cntitli'd to do business in this Btato, may, with the approval of tlu' Supiiintendi nt of tho Insurance Department, it the same is not already inelmled in the form tiled in tho office of the Secretary of State, print in its policies any provisions which It is by law r(<((uired to insert therein, if sui-h provision is not in cnnflict vitlithe laws of this State; but said jirovision shall be printed apart from the other provisions, ai,'reements or condiiiiuis of the policy with a separate' title as follows : " Provisions re(|uired b)' law to be stated in the [iiility," but no provision which modities the contrart (d' insurance in such a way as to alFect the(|uestion of loss shall 1m' printed under such title, and if so printed shall hr of no efiec t. 4. A company insuriufj; auaiust damaue by lijihtninyr may print in tho poli(>y. in addition to thi' provisions, conditions and ajireements in the form filed in the otfice of the Secretary of Stat^;, under the title of *' perils by liLditniuu'," the following: " This company will also pay to the assured any loss or dama^'e by liL'htuinjr whether fire ensues or not." 1' \ .1 NEW YORK STANDAKD FIRE POLICY. 235 B. A conipuiiy niay writo upon the tuartriii or across i\w flicn of a fmlify ])roviHiini"s ailfliiif^ to or iiKtdifyiiiii lliOH (ir niuiiud by tlio oflii't'TH or aj^outs of tho company uiaking sucli a 'tUtioii. Ht,(\ a. Any inHuruncc pompnny, itsuflioors, bntlctTS, nirt'ots. siilicifors or cinployrcs, or i-itlitT of flu'ni, violiitinir any provision of tliis net liy making', inHuiiii;, dclivorinii, or offcriiiLr to dt'livcr, any policy of lire in- snriiiKiiMin proficrty in fluH Htatt!, i'XCf|)t as hereinbefore provided, nball be miilty of h niisdeineanor, and upon complain' uiade by tlic Su]Hrinf.en(ie!ii, (d'tbe InHnraucn i)epartnjent, or by any citiziti of tbis i^tate, ,«liall upon eonvietioii tliere(d' bo punished by a line of not b'sH than 1825 nor more, tlian iJlOO for the first ofience, and of not U«« than ^100 nor mow tliari ^'J')!) for oaoh .subsequent otfenee ; but any policy Ko niadi', issued and delivered, shall, uolwithstaudiug, be binding upou th« company iHsuing the same. Sec 4. This act .shall take eflfeet imniodiaUtly. STANIURIJ KIRK TNSUllANCE POLICY l)F TIIK STATE OF N fcW YOUK, 1886. 480JI.. The [nsi'rance Company of , ni consideration of the fitipuhitioiis herein, and of dollars premium, dot.'s insure for tho term of from the day of , IH — , at noon, to ti»e day of , IH — , at noon, ajzain-it all (hrect loss or damaKi' Ity fire, exee[)l an here- inafter pri>viiit'(l, to an amount not exceedint: dollars, to the following. deftcril-ed property, while local('iR'rty at the lime any lofs or damage oecurs, and ttie loss or damajie shall be ascertained or estimated according towuch actual casli value, with proper dt^lnction for depreciation, however caused, and shall in no event exceed what it would then cost the insured to repair or replace the same with material of like kind and (|uality j said ascertainment or estimate shall be made by the insured and this conipany, or, it they dill'er, then by apprai.sers, as hereinafter provid'd ; and, the amount of loss or damage having; heen thus delfrmined, the siun for which this company is liabl'.' pursuant to this ptdicy shall lie puyalile sixty days after due notice, ascertainment, esiimate •nd satiHlactory proof of the loss have been received by this contpany, in accordance with the lernis of this policy. It shall be optional, however, with lliis company t(j take all or any part of the articles at such ascertained or appraised value, and also to repair, ivhnild or replace the property lost or damaijcd with other uf Hke kind and ijiiality, within a reasonable time, on givinfr notice ol it-, intention so to do «itliin thirty days after the receipt of the pro(>i lierein re(piired ; but there can be no abandonment to this conipany Cf the property described. This entire |>oh(!y sliall be void if the insured has concealed or misrepre- ■entei, in writinj; or otherwise, any material factor circumstance conc4.'rning this insurance or the subject thereof; or if tho interest of the insured in the wm 236 NKW YOHK HTANDARU KlUK VOUCY. property l«' imt tnilj Htntcil liort'iii ; or in cnnv of any irRiui or J'uImp pwear- iii|t by tho itiNtircil touching any mnttor relating to tlilM hiHurance or llit' Biilijccl tlir any of its jiroducts of greater lutlam- nuibilily than keroseiu- oil of the I'nited Stales siandiir I (which la^t luay be useii for lights juh! kept t'or sale according to law, but in ipiantitu's not exceedi'ig five barrels, provided it be drawn, and lamps tilled by ilaylight or at a distance not less than ten feet from artificial liglii); or if a buiMing, liereiii describeil, wlieth r intended lor occupancy by owner or tenant, be or become vacant or unoc ipied. This e^mijiany sliall not be liable for lops .aused directly or indiiei'tly by invasion, insurrection, riot, civil w:ir or commoJioti, or military or usiir|)ed jX'wer, or by onier of any eivil authority ; cjr by thel'l ; or by neglect of the insured to use all reasonable means to save and preserve tlie property at and after a tire, or when tlie properly is enilangend liy fire in neighboring premises ; ur CunleKH fire ensues, and, in that event, for the damag(> bv fire only) by explosionti of any kind or lightning ; btU liability fur direct damage by lightning may lie:issumeil licrcon, fur 1)«m (d uwiiingw, Ijullinti, cuhIh, curioHitie*. (lriiwiiij;H, iljcs, iiu|iU.|n('iilf, jt'WoU, inuriii-', mcilul", iiii«lf|-<. |iiitti>rii:<, picliii'i'x, i"i;iciitil'n; itppuiutuf, Hij^iif, nUirv or i.llicc furnituri' or tixinrvf^, Hctilpliirc, t(i(il.M or (iropcrty held on (tturnn** iir lor rejuiirH j iiur hfy<>ti>( ilie viiliie of pliiie v:'!^""! iVcvdocH un>l ilecoratimiH tliun tliat which IIiIh (lolicy ohiill ticiir to tin- whole insuriinue on the hiiililing chvcrilitd. If an application, survey, phtn or (lencriplion of property be referre.l to in tliiH |nihcy, It wlmll he a jmrt of this ciiiilrai't ami a warranty h\ ili<' iimnretl. Ill any mailer rdiiliiif.' to iImh iiiHiiraiice no pernon. uiile>-B liuly aiitiiorized in writin)!, xhail he det'int'il the a^ent oftliin company. TIiIk iiolic.y may iiy a riMirwai lie coiilinued nii'ler the orijjinal slipnlalionn in coii'-MleraiKMi ot pri'mium liir the reneweil icnn.providtil that any iiu'reane of liazard niUMt Le maiie known to tliis company ut the time of renewal, or thif policy f hall he voiil. 'i'hJH policy nliall be cancelled at any time at the reijueHtof the insured or by the company, by giving five dayn' notice of hucIi cancellation. If this policy shall he cimcclled a" hcreinlieforc provided, or hcconic void or cea^^e, the premium hiiviiig been actually paid, the unearned jwrtion shall be returned on surrender of tliia policy or last renewal, this conipany retaining the customary short rate; except that when ihis jolicy is cancelled by ihiH Comjiany by giving notice, it shall retain only the /iro /'n or cxptisurefl of said pnipiTty nince the iHHiiinp; of this [x)licy | by wlioni and for what pnriiop*' nny huildiiij; therein (l<'scril«l and the several part,- I hereof Here i>ccii|iiid al the liiju'of lire ; and •n.s ot any huddiiifi, lixlures or maehinery des- troyed or damaged J ami shall also, if r?(]uired, furnish a (Urtitieate of tlie iMajristrnte or notary public (not interphted in the elaini a.f< a. ereditor or otlieiwisf, nor related to the in-^iired), livinj.' nearest the jihiee ni lire, stating that lie has examined the circnmstaiu'es, and t>elieves tlie insured has honestly fruijtained losri to tlie amount, (hat such magistrate or iiotaiy public fhall cert. iy. The insured, as olU'ii as reijuireil, shall exhiliil to any person designated by this company all that remains of any property herein described, and sub- mit to e.Miiiiinations under oath by any peison nameij by this eotupan}-, and eubsenlie tliesiinie ; and as of:en as rerpiired shall produce t'ur e\aininatioii all books ol' accoimt, bills, invoices and other vouchers, or certiried copies thered, if orifzinals be lost, at surli reas( nable place as may be desi^inated by tiii-< company or its representative, and shall permit extracts and copies there. •( to be made. In th" event of disagreeinent as to the amount of Ic'ts, the same shall, as above provided, lie a-cert.iiii(ii by two competent and di-'inltrested apprais- er--, llif in.--iired and thi- coinpiuiv each selecting one, and the two >o clu.isen 8h lirst si'lect a oonifn-teiit :ii lisinleres ted umpire ; the apprai-ers mir then dilleiences to the togethi>raise the loss, slating separately sound value .-ind daiutii'e, and. laibiij; i.iiiijiee, .-hall siil umpir suv'n and the award in wriiiiiL' of any tw p shall deierniine the amouiitof the parlies 'hereto shall pay (he ai)])rai-er respcctntly -elected by tlieiii and shall bet,r equally the expenses of the apjirai-Hl ainl umpire. Th ipany .,t b eld to have waived any provisionor con liti of 'Ins [xdicy or any forfeiture tlnrcf by any rei|uireiiienl, act or proceeding on 'ts pari relating to the ajipiiii.-ai or to any examinatinn hen in provided for, and (he loH~ shall not becoiiii payalde until sixty days afrer the riuiice, a.scertaii.iinMit, estimate and satisiaen.ry proof of the lo-s hen-iii recpiired y appraisers J 1 have been received by this ci)m]'an), including an avvar when u|ipiai.-al has lieen reijuireil. This <'>'mpany shall nnt lie liable under this policy fora greater projxirli on of any loss on the described jiri'periy (ir for loss liy and I'xpeuse ol removal from premises endangereroiH'rty, and the extent of the applioatinn of the inpurance iirnler this jmlicy or of the ci'iitribution to be made 1 v this com. pany in case ^iit ahall be assign&l to this company by tlie insured un receiviiij; siicli (laymeiit. No ctnit or action on this pohcy, for the recovery of any claim, shall be eustiiinal'le in any cmirt of law or e'li.'ty until after full cotiipHiincc liy the insureii with al' the foregoing rccpiireinents, nor iiniesw coiiirncruM I within twelve month- next after the tire. Wherever m this policy the won 1 " ins\ireil " occurs it shall he lieM to ini'luilo the legal representativeof the in.-iireil, an 1 wherever the wonl " loss" occurs it shall be deemed the equivalent of " loss or damage." If this pi liey be made by a mutual or other company having special regu- laiinns jipplicalile lo its organizatidii, nu>mbersliip c r contrac^t^ of in--urance, Buch regulations shall apply to and form a part of this policy a-" the same may, in accordance with law, bo written or printed u}k)ii, attached or appended iiereto. This ])olicy is made and accepteii 'subject to the loregoing stipulations and conditions, togylher with such t)tiKr provisions, agreements or conditions as may lie indorsed hereon o' added hereto, and no officer, agent or other representative of this company shall have |H)wcr lo waive any provision or Condition of this ]iolicy, except such as by the terms of thi-> (lolicy may be the subject of agieement indorseil h>-reo;i or added hereto; ami as to sui;h piMvisions and conditions nootlicer, agent or representative shall Iiiim' such power or lie deemed or li<,'ld to have waived such provisions or coiiilitious unless such waiver, if any, '•hall be wnilt'u upon or attached hereto; nor shall ivny privilege or permission attecting the insurance under this )jolicy exist 'U- be claimed by the insured uuless so written or atla(;lied. In witness whereof tiiis company ha.- e\ecutii.i and attested these [tresents this day of IS—. IllDKUS. 4>H1. Or atliiitioiial cLnise.-< to cover special conilitions refoiTod to, but not mcludtid in the body of the policy. 1. Application awl Siirvfi/ Clause- This policy is based upon an application and survey of the propi riy on file, whicli is hereby referred to as forming part of this policy. 2. Perrcntage Value Clause. Jt at the time of tire the whole amount of insurance on the property covered by this policy shall exceed jier cent, of the actual cash value thereof, this company, in case of loss or damage, shall not lie liable to pay more than its prn raf insurance on tlie property covereil hy the it"m c>f this policy on shiill exceeil percent,, of the ai'lual cash value thereof, liiis ci.>ni|ianv, in ca.se of loss or diunage, ? or damage ass the ann;nnt iusureil by tliLs [Hilicy slmll bear to the actual cash value of sudi property. 6. Percentage Co- insurance Clause. If, al tlie time of fire, the whole amount of insurance on the property covered liy this |.)olicy shall ne less than percent, of the actual cash value (l.cretjf, this company sluill, in case of loss or damage, be liabh for only such portion of ^uch lo.su or damajje as the amount insured by ihis ptilicy shall bear to tlie said j)erceiii, ol llie actual cash value ol such pro|H'rty. (i. CiiIiiKiiranct' ChiuHe — Fur .Ijip'fialinit to Spei-ijic Items of' l'any shall, in case iif Iciss or diimai^e, be liable for onlv such pirtion of such loss or damajie as the amount iu-nn-d u.-'dcr .-aid iieiii ..... shall bear to the aciu.t! cash value ol property covereil by such item. 7 rcK-riitnije t'o-liiniirance iui4 Li>iiiUttii.if lire the \Oii.)le amount of insurance on the property coveroi by this jM>licy sliiill be less than per cent. k>( the actual cash value lliereul, this company shall, in cased loss or damage, be liable for puch jKir'ioii only of the loss or damajie, as the umount insured by this juilicy shall betir to the said fvrctiit.of the actual cash value of such pro- perly; prin-iiled, that in eusc the whole insurance shall excetjd iK;r cent- of the actual cash value of the property covered by this policy, tbjg Compjiny shall not be lialdt to pay more than its pro rata share of .said per cent, of the aenial cash \aliu: of such property ; aii'i should liie whole iii.= uraiicc at thetiti; piMjiorty Cuvert'd Ky tia' item of iliis jK>li<'y on , fhall l)0 If ss than |iT I'Oiil. of iliP actiiiil cuPii \ alni' ilicrci'l', this coiniiiinv -liall. in ca-e of loi--) or liiiinaj;*', Kf liaKle for only mk-Ii (lorii.in of sucli lo>.s or ilamagt^ iia till' unioiiiif in>iii('(i umlcr paiil it'io shall hear to the .'^ai'l per colli, of th( actual cas-li value ol tin' projuM'ty covitciI hy huoh iiom. 9. /'e?v'(;i/(f//(: Ci'lnstininvf onil LiinHitt'nu C'luuM' — Fur Appliru/i'iu to Spi'.ific It nil a I if I'n/icy. li lit till MiniMiflin- till' wli'k' aiiioiiiit ol' iiij-nrancf oi; ti)'.- f loport^' covertil iy the itt ni of this |iii|jcy on , i-liiill U' Ii-m ihan pt'r ci'iit. (if the actual ca.'-h value thereof, tliif- company sliall, in case of loH.'- or iliu'.iiL'c, he luililc for only nnch jun-iionof kucIi 1o~s or .ianiacrc a.- tlic aniuuiii, iii.-incil uuilcr saiil iicuj sluiil hear lo the -■■uii y.vv cent. (4' tlie acLual ea.-h value ol pr'.ijierly ct^vereii hy -^ucii iieni ; jnnridcJ that in case tiie w hole iii^^uraiici on iIk' property coveret>\, \aluii ol the Hnnie. thi'- coii). pany shall not. on .-^aiil iteni... ., he liahh' to pay more than its ])ro riita Khare ol ^ai't per cent, ol thf actual ca^h value of .•'uch projurty ; and nho»!v> cent., a ;j/(> /'(/(( return of premium on >ucli excess of in>uranoe, tiMin the time nf the lire to the expiration ol tin,- [",'licy, «huli be Jiiailc on .-'uneiMler of the jiohc). 10 < 'ti- liisHrciicc Clniixi for Fli'dtiiKj I'^licy. ll 1- herehy iledai.'l aii.l a^ri'eil that in cas>' ihe propi^rty iifnrei^;.!.] in all the I uiUIinjis, pho-e-, or limu- incl nihil in this iii'-u ran ce. ^liall at the hreak- inp out 111' any lire or fires, he collectivrly ot jrreater value ihan the sum iiisiin-il, then this company >iiail pay ami make <;onl\ tif the loxs or liamti^'' as the sum uiMire I shall hear In the whole value of the propert\ afoi-isani, at the time when such lire or fiies shall tir-t hsippen. Hill It is al the saiii" lime ileclareil and a::reed, thai if aii\ spccitic p.-ircr 1 (>f j;iKi de< hired to he unier the proiectioii of lljis |3olicy and -uhjecl to average as aforesaid. 242 INDOHSKMKNTS Or> UIT'KliS. ft being the- true intent anil meaning of tliis a[,Meetii('iit tliat tliis conijiany shall not lie liable fur any Io^^«, iuiles?i (lie anidiuit of micIi loss ^liall cM'tiMi the amount of tiic s^pecilic in.-ui'ar)c;e or infuraneoi^, anil tben only for mk-Ii exceHs, wliji.'h ^aiil excess sluill be subjeel to averii<;e as above. OSS or Dniriage. if any, utxiov lliis |. 1 1 . Morigaijfe Vlmi.^f h shall I.M !■ iiv;ilili- to. nee, as lo the not he invaliilaled inortjra^'ee [or trustee] as interest may ufipenr, ami this in iniere-^t of the nioriL'aiiee |.or Irusteel only therein, s by any aei of ne;.'li ct of the inorl^agor or owner of tin' u ithiii-ilescribeil |>ro|)erty, nor by any foreeli'sure or other proceeding trnotieeof sale relating to |)roi)i ri> , nor by any elumge in th<' title or ownership ol the jiioperly, nor by the oeenpation \i the pveinises for pui]«.ses more hazanloiis tlian are p'rmitteii by tliis jioliey ; ;//f saiil jiioiigMgee [or trustee], ant), unli'"< permitted by this polic}', it sliunid be nott-d ihereoii, and the mortgagee [or trustee] -hall. einaiuJ, pay the j'luniuiii for.-neh iiicrciiM d h d k r the t( nil vi the tise tlu-reol ; otherwise this ]Mjlicy sliall be null and void. This eiiiiipany reserves tlie right to cancel this policy at any time as provided by its iciiiis ; but in such ea-e this policy .-liall continue in force forthe bene- I'll only ol the niortgagte [or trustee] lor ten days after notice to (he mortgagfe [or trustee I of sticli cancel lat ion, a:.d shall tlien cense, a ml this c«.'mpany -hail ha\e the ri<;hi on like notice to cancel lhi(< ugret iiu nt. \\ hene\er thi> company shall piiy the murtgngee \i>r trustee] any sum lor loss cir damage under this policy, iintion, pay to the mortgagee [or trustee] the tl ir inorti'aL'e ili bl, wiiole principal due or togrow due on the mortgage with interest, and -hall the'eu|Hin receive a full assignmenl and transfer of the mortL'age and of all fueh other vei nrities j but iiu subrogation shall impair the right o; the niort- gagi't [or triisiicj to recover the full amount of chiiiri ]'l. ''iiii'li lliiii It ili' pri'fii uy , real or |KM'-oual to liii niiihrani'i'ii. i!overi'd by tliis [lolic^ b^' or beci tlh Cumbeieil ly u mortgage. tru'olicy eliall be void, null bs otherwise provided by agreement iniorseii hereon or added hereto. \. M' t te [or (riistee), iiii(icr al tlie seciiritios hf!iJ a- collateral to the uiortira>;e ilebt to the extent of isuch puyiiii'iu j hill sucli nuhro;;ation ^hall iioi inipuir the nj:hl of tin; mortgage Lor trustee] to recover tiie lull amount of his claim. 14. Mi)rti/ai/0! CldHse with Full Cunhiliuli Loxs or ilumaire, if anv, umlcr tlil \yj to, • • f « • a."? . niorlgafree Lor tru.-ilei'J, as interest may appear, anil tins insurance. to the niieresi ot the mortgagee for trustee.] (>nly therein, .shall n^t he invali.hiieil hy any act or neglect of the mortgULror iir owner of the within- lii'-^eriliC'l property, nor tiy any tVireclosure or <>thi'r proceedings, or notice .)f ?ale relating to the property, nor t>v any change in the title or ownership .if the pro|)erty, nor l»y tlit' occupation of the premises tor purposes men' ha'.aril- ons than are permitteil hv this policy; />/')(t/i7<;i/, that in ca^e the mortgagor or invner shall neglect to puv any premium due under this [Kilicy, the mort- gagee [or tnisteel hhall, on demand, pay the same. I'roriil/'il, also, thtit the mort.;agee [or truftee] shall notify thiw company of any cliange ot owner.-^hip or iKicupancy, or increase of hazard which fihall come to the knowle of said mori>r iLTce (or trustee] ; and, unles.s pi mitted bv this policy, it shall be noted thereon, and the mortgagee fortrustee] Hhail, on demand, pay the premium for siicli increaseii hazard lor the term of tlie use thereof; otherwise this policy sJuiU lo null and void. Tlii-' couipany reserves the right to cancel this policy at any time i\.si pro- vided t>v it- terms ; hut in siicii case this I JullCV shall continue '1 force for the Mietit only 'f liie niorlgairee [or trustee], for ten days after notice to the min'lgagee [nr trustee] olsn ',h cii Hat i<»n, anil sliall then ei'ase, an i til company sliall have the right, ini like notice, to c.iiice thi s atrreemeni. In case of any olh"r in-ur.ince upon the wiihin-lescribed property, this coinp! anv .shall iiot lie liable under this nol policy tor a greater propirtinn ><( any loss or damage --usiaiiied than the suin iieridiv insiired bmirs to the wlinle aiii'iuiii of insurance on said property, issued ti d I ly any partv or p; ties havirii; an insurable iiitere'l therein, whether a.s owner, mortgagee, or otherwise. Whetiever this company shall pay the mortgagee for tni.«tee] any stim for loss or damage, under this pi^dicy, ami -hall claim that, as to the mortgaui.r or iiwnei, 1)1 liability theretor exi.-ted, I his company sliall, to tbecxttnt of Hueh payment, be thereupon legally subrogated to all the rights ulthe party to whom such |iayment shall be made, under all securities held a.s collateral to tbe niDi'tgage debt ; or may, at it.s option, pay to the mortgagee [or tnisteel the whole principal tine, or to grow duo on the tiiortgage with interest, and shall, thereupon, receive a full assignment and transfer of the mo'tgage, and of all such other securities; hut no snlirogatidii shall impair the right uf the inorlgagce [or trtistee] to recover ihefult amount iif claim. 244 STATL'TORY ('ONDITIONS. ITi. Li), Sbort rUlo 1. Thi- Act Ui\\\ bo cited a- '"'jjif Fire hli^nraiice Polii'if Act.' 2. Wberc. by rea'cpii of iic(H'ssity, accident, or nii>tallatcirn-i.l or proof of loss has been iicii iiiMcle given in good laith by circiii beiialf of the in^urecl, in pni^n.mce ijiHi'lc'^'rii'^'^^thfr "' '^"^ proviso or coiiditit-'ii c)f sindi contract, the ('cunpuny, grciiin.ls tliaii tbrongh its accent or otherwise-, cibjecis t'l the los- npon otiil-r nccM-c(.iii|ili- grouiicls tiianl'or iliifierfecl cc'iiipliance witii sncii conditions, or i'li'ru "'''"" '''^"■'^ '"^'' "'''"" "• in'sonable liinc alter receixing .--neii stale- nieicl or proof, luctil) the assnred hi writing: that siub ^taic- Tnenf cjr proccf j^ cbjccled to, and what are ijic paHicnlar>- in which the >ance is alli';;t-ci icc be delective, and so from time to time; or. wli-ri for an) other rea.-on, the Ctiurt or .itidge, before wjioni a q'le-tioii relaiuig to insnrance i- tried orin.jiir- ecj into, considers it wieciniiable that the insurance slioull be 'ieen e.i voiil <'r forfeilcl by reason of imperfect coni])liancM* with such concjition^ lio objeelioii to tiie 'lllbcieiicv ol such ■si'itement or pi'ocjf or ameiidecl or siipj.lemenial statement or |ir..of (aslhecase may be) shall, in any of such c a.ses. be al- lc ued as a 'iiscliartre ol' the lialility i.f the ('ompain c,n such eontrnet of insnniiice wherever entered into; l.nL this section shall not apply where the lire basinkeii place before the twenty- fir.-l day ccf Decc mbi i, 1^7 (. .;-> \'., o 05, s. 1. JJ. The c:onditionsset tortli in the Schedule to this Act shall, a- agiim^t the in-nrer,-, lie deeuieci to be part of every (x^liev of hre iiisnraiice hereaHtr entered mto or renewed or otherwise, in loice m Oulario witii re-peel to any property therein, and shall be printed on every such {«)liev w'ltli the heading '',S7(/i'm- twy coin/itions.'' ii'J \'., c. 24, s. l.jxirl. or. If full cli<'V iuilei>ei vmieiJ, STATUTOliy COXDITIONS. 215 4. Tin ('miii|hui,v (or otiuT iiisiinT) ilt'sire-: to viirv tlio naiil VanmionH, CoiiiiitioDH, or to >M'iiit, any ol tliciii, or to add new (•oiKliliiiiiH, '"'"' ""'"'"l'"'- thorc shall ho adili'il in conHpitnioiis tyjii', iiml iu ink I't'diller- eiit color, vvoniis to the following eH'.'Ct: — VAlllATIONS IN CONUirrONS. 4S;j. " This policy is i-'«ueil on the uhovo st,itutory ccni'l.- titioiis, with the Hillowliig variations and additions: •' These variations (or iis the cam: mny he.) arc, \\y vir- tue of the ()i)tari'i Staiutf in That iiehalf, in fort:i' so (ar as. by the Courr or .ludiic liclort' whom a i|ii('stion is tried rclaliti^ thereto, they shall lie held to he just aniuMik'c (!'um|i.iiiy, were carrifd to the J'rivy Council, \ov. 20, ISSl, where their rionlsliijis of the Judicial I'omniittee ovornileil th(^ tirst niiuied, ami [lartly overruled the spcoiid upon the ^r«iiii(l that an '• interim imtc " was not a jiolioy uiulor tlio Act ; but loft the (jiu's- tioii o|icii ii.-i to wl'vtlier the ((uaiitity of i^unpowdor allowed to bo kept, III potimls, under the Conip.Miy'.s conditions (while the .Statutory Conditions nllowed 2.') ponmis) \v«s "just anil r 'iisonable," for tlio Court of Queen'.'' Ueiieli, with diveetioii thiu '• the rule (ii- ilisposcil of .iccording to the deei.-ioii lli;i.». iniiy be ei>ine to upon if.'' The decisions of tlio Privy Coinicil Couiiuittei^ in the above cases can be found, it ieiiLjtli, iiitlie Ontario Iii.'iirance Report, 1881, p. Oo, ct iri/. that " (Joinpiiiiie- that have not complied with the taiv relative (o iStalutory conditions, «iul primed them iii their jiolicies, cannot set lip Hij;ai!ist ihe insured their own coiiiiitions or tiie statutory conditions. Die iiHiueil alone, m such cas(^s, is entitled to avail liiDLself ol any statutory condition. .SCHEDULE. (Sect'diis '^ and i5.) 4S4. STATUTUUV CONDITfO.VS. I. If anv tierson or iiersons iii-.iires his or their biiiidinjis or ,,■ I N II 111 ■. .Ml^^^ol^^e floods, iimi causes tiie san;e to he ilescrilied otherwise loan ap taiion or the\ really are, to the i)reiudi(;e of the Com|iany, or misn>|ire-oiui»aiou sents or omits to eommuiiicjite any circiim-tance which is material to be made known to the ('■omjiaiiy, in order to ena- ble it to judge of the risk it midertakes, sindi insurance shall hv. of in) force in respect to the property in !'ci,'ard !o which the mi.sreprcsentation or omission i.s made. tm STATL'TOKY CONDITIONS. ITi. Li(//ilniii(j Climse. Tliis policy slinll (••.vcr iiiiy ilin-cH loss or (iuiii:ii,"' oiui-i'i| I13' lijiiilning (iiii'iining thereby the coiimionly aotopted n~c of the term liirhtiiing, mil in no cii»e to iiHihide lo-*.-* or ilaiii.ii^e hy eycioiie, toriimlo, or wiritl-st orin) n.it exc.iodiiij;; the !»iiin iiisurel, iimi' the iMt(!re-t of (he injured in tlit property, and f.il ject in all otiier rcspee.ts to ilie terms and couditionH of tliis policy P'.ovidtd, however, if there shall he any other insiiriiiioe on Hivid j)roperty, this I'oiiipiiiiy -ihiill he lialile only pni fat I n iii;l: i n<»i ■111 II .- 1 m f •■ 'I wl.al are the parli(ular>- in wliieh the .-ame is allcj/ed In he ileleetiee, atui .-o trom li/neto lime: or. wli"r<' tor an \ other reason, the Court or iJiid''e, befo ec| into, considtrn it ineiiuiiahle that tl re whom a ijMe-lioii relating lo insurance i> tried orit,.j^ le insuranee sliou d Im leen.i'd void or forfeited by reason of imperfect eonijilianee in rihovo I'.'lsos, linliilttv Miitl with such conditioii- fialfiiK'iit or |)roof (jr amended or si ijection to (lie -uthoiericv of .-uch vaulted. ii'v not pplemeniai .-laleinenl or if (as tliecasc niay he) shall, in any of iiu'h rases, heal » lis seel 1011 ue.l as a disehiiriie ot' the liahiliiy of the ('ompanvon suel ecuilractof insu/'aiiee vvhi-rever entered intn ; hut ll shall not apply where the fire ha-< taken place before the tweiilj lii.-t day of l)er< ml \ c. (i. 1. Statutory con (lilii'iis to III) pnrl .if eviry IJolicy uilleBS vuiied. 3. Tl onditionssei ti.rth in the Schedule to this Aet f-lial i^ ai'aui-t tlie in-^urer.'-.. lie deemed t(j fie (lar! of every }M.iliev of (ire uisuruiice liereaiier entered uito or renewcil oi' otlierwi.se, in loree in Oi.i II a I! irio with rt .-pect to any prii|ierly therein, and pniiteii on every policy Willi the liei tury loiuhlions." M \ ., c. 24, .«. \,iiart. Slntn- "~*H§fl& STATUTORY COXDIl'IONS. 215 4. Ila Cmiipaiiy (or otluir insurer) ile^iin"^ to vary t.lio caiil VariniinnH Ci>ii(|iii()iiM, or !•) .iriiil, uiiy of lliciii, or to adil now coiiiliiioiiH, *^ imlu'iitirii, flicrc sliall lie itiiilfd in coiisf.ii'uoiis tyiic, nnil In ink ct'ilillitr- eiit color, woniH to tlic followiiij' I'tl'.'ot": — VAIIIATIONS IN CONUITIONS. 4SII. " Tliiipoli(!y is ismjcil on the ftbovo Ntamtory coiidi- titions, with tlie lultowinsj; variations and additions: " These varnitions {ar /is the. vasi' viiii/ he) are, hy vir- tue of Ihc OniariMSiiiiuli' in that l)ehalf', in force pm tar as, hy theOouiT or .111 l;.-(' heliire whom u iim'-tion is tried relalifij^ thereto, they >liiill lie held to he just and rea-iiiiabie to he exacted by the (JoMipany." ♦$. No wnch variall<)n, addition oroinissioti sliail, unless the Varinteins noi 8aiiie is di-tine.tl\ indirated and set furtii in the manner i/r lo '""'''!'p. "'"li"--' tiie elli'et alores;iid, he iei;al and hindiii;; i)ii the insured; and J.,j(''j/ "" '' no iiiii'stion shall he cunsidereil as to whetiier uii\ sneh vaiiation, addition or omission is, under the eirciinisianee.s, just and reasonahjf, hnt, oti the cuntrury, the pulii'V Hliall, as a;.'aiiist the insnrers, be Hnhjfct to the statutory conditions only, linlc'^s the variatiniis, addition^ or omissions arc distinctly indi- caifd and wet forth lu tiie inaiiiier or to tlie eil'ect aforesaid. .3l> V , e. 24, s. 'L (i. In ease any policy is entered into or renewed, containin2 Pi'licy o is tried, to he not Jii.st and reasonable, such condition shall he null and void 'M V.. e. i;.'., s. •> ; Mi V , c. 7, s. 2, Srhetl. H ; :!!) V., c. 24, s. 1, />arl ; 40 v., c. 7, Svhed. A (IIH). 7. A decision of a Court r.r .liidj;e under this Act hIkiII he Appeal. Fubjeot to review nr appual to the same extent as a decision by Hiich Court or Jiid;.'e in other cases. .H V'., c, (Jo, h. I- ; Hit V ., c. ? b s. :!. N'liTK.— Hy tiie Snprenie Court of C.uiada in the rases of the Citi- zens and t^iieeii Ins. Cos /', I'.ir^oii-; (S. t' Iv 21.")i, it was held that " ("onipHiiie- that have not coinplied with the la'* relative to StHliitory eoiniitions. Hiid printed them in their policies, cannot set lip iigainsl the intsiired their own eoiulitions or the statutory coiiditmns. The in.snr.'il alone, in such cases, is entitled to avail himself of ;tuy .statutory condition. SCHEDULE. {Sections 3 and t>.) 484. STATUTORY COXDITIONS. I'lr hnildiiifrs or ,,, . 1. [f anv i)erson cr iiersons in-ures his or their hnildiiifrs or ,,, . 1 > If III ■■ .iitHrer goods, and causes tlie same to lie descrilied otherwise tlian an laiion they really are, to the picjiiilice of tiie Ci'inpany, or misrepre- ouiissi' senls or oniitH to commiinicate any cit'i;uin-'tnn(-e which i.s Tiiaterial to be inude known to the Company, in order ti) ena- ble it to jmlge of the ri-^k it undertakes, such insurance shall be of no t'orce in respect to the pro|ierty in rcj.'ard to which the misrepresentation or omission i.s made. 24fi STATUTOKY (CONDITIONS, r.)li<'vnriit to 2. Alitor ni'iilicalion for iiiHiirancc, it -Jiall be ilct'intd tlmt !iT.pl'in"''i'!r'uii-"">' jxilicy M'lil to tlif ni'Miriil i^ iiili'ii.lt'd to ln' in iicconliiDi'i' iiH.s variiiiHi.' wiili tlif iciiii.-' (il lilt' iiii|iliiiiiiiiii, iiiili'SH tlic ('omiiaiiy I'diMts pi.tiittUout. out, III writiiii:, the ^)ilrtu;ullll•^ vvluTi'in tli< policy ditliTs< I'rtnii tlie H|i|iiioalioii. Wli.'ii Hcliinipo 3, Aiiv cliiiiijic Diiitoriai tt, till? risli.and wiiliin the control L""i"i'''''j u".'.'.' oi" lill he allowed unless hy tlie con- sent ol the Conipai.y or its ii<:eiit ; and in case of the removal r;l' property to escape rriiiHagiaiion, the Company will latahly foiitrihiite lo the lu.ss and expenses attendinj:; biieh act of Miiiu'V Seciiri- (i. M. iks of uctoiint, declivities for nioiiev, anil evi- dences (if ileht or title are nut insured 1'liite. imirit &u Trior or hlll'SlMpii'lU iiiiwiiersUiii. • ■ ((() For loss *rf pro|ii'rfv owned hy any other jiarty than the assured, uiiles.-j the iiilereolicy; Hf iiivniiioii, {b) For losfi caused hy invasion, insurrection, riol, coiiiitiution, niiiitury or usurped power ; I poll ivil STATrXOKY CONDITIONS. 247 ('■) Whrrt the irj-mnuiCf i^ upon hiiililinHK— for loss (nuiMcd <"'himiie.vic)n to exccnte snc.h repairs hiiM lieen preM(>ii-ly iiinnted ni wriliiiir, M;;ned liy a ilnly anthorizcd iiiient of the (^•nlpllny. lint in dwell in;;-lionse.-<, fifteen day.s are allowed in eaoh year for incidental repairs, without niictt periiiiMsioii i {/) For loss or damage oconrrinj? while petroleum, rock, V"'|''','iV'"«,"'^' earth or coal oil, cainphene, Imrninn llnid, lienzine, niiplithii, '*" '' ' '^' or any li(|iiiiii-<'ti<>ti8 to is to >l)serve the following directions ; II' nlimrved on iiiiikiii^ I'liUin. (ti) lie is forthwith after loss to give notice in writing to the Coinpany ; (/i) He IS til deliver, as soon afterwards as practiciihle, as particular an accuiitit of tlu' loss us the iiuture of the case permits ; (f) He s also to furnish therewith a statutory declaration declaringl (1) That the .said account in ju«t and true ; (2) When and how the lire originated, so far as the declar- ant knows or believes ; (!i) 'I'liut the fire was not caused throttgh his willful act or neglect, [irocuremont, means iir contrivance ; and ('I) The amount ol' other insifances ; ((/) He is, in supjKirt of his claim, if required and if prac- ticable, to iiriKlnce liooks ot account anil furnish invoices and other voueliers ; to lurnish copie.s of the written p^irtion of all policies; ami tnexhiliil for examination all that remains of the property which was covered hy tiie policy. ^ 248 8TATUT0UY CONniTfONS. Proof of lnBM inny l><> in. tile by atjujii. Fftldc time- incut or fruud \itliiU'n oliilin. (f) Ho IN ii> |)T(kIiu'c, ifn-iimri'il, Rcprtillcnic niiilcf iln' IhiihI of ft inii^;iHin\l(', tinlnrv jmlilir, nr clcrirviiiuii rt'siilint; in ilie \'iciiiily in wijicIi lliriiic liii|i|K'iM'(l, mill ii>>i ('.iiik^imiiiiI III rlio Id.-M or ri'liilcil follit' a-o'iii'i'il or HMtli'riTs, fluting llmt lif luis CMlihiiH'il IIh' circiiiii-liiiiit'x hIIoikIiiij: (lie liri' Iiwh (iriluiiiii){(' iill('>;i*il, ilmi III' i-j Mi'i|imiiili''l willi the I'liaMiflcr iinil ciri inn- stuiict'H nT till' u«"Mii'i| I'P ijiiiiiiuiit, iiiid tliai lii'viTily In licvcn lluil till' iiiNiircil liii'- liv Mii'ri'ruiiif !iiii| williniit tniinl nr ivil jirucfii'i' xii-'tiiwn 'I li'Mf< ami ilaiiiaj.'!' on liic "-ill ji'i;l M^furi'il, lu llie aiiiuMiil ifitilicil. It I'ln' aliovi' prinif'iof' IdoH iiiiiy Ix* iiiaiic Iiy llir a^rciit of the nH-iirt'il, ill I'afC nf ilif alwi'iicc or iiialiiiii\ nl' ilu' us-m*''! liiiiiM'ir til inaki' tlic huiik*, .-iu'Ii aliHciici or iiiahility liuiug rtutih('iu;tori!y aci'oimlril lor- I'l. Any fraii'l or CaNr -tuli'iiiiiii in a (i|atiiiiir\ ilcciiiratiDii 111 rt'latiijii to any "t tin' mImhi iiariiriilars, slm,!! vitiaif tlic (ilaini. Ariiiini»inii ill It;, it any ilitl'i-ciice an-<("* a'< tn ilic valiu' wl' tin' iirii|H'rty fiiMi 111 infhv iiiHiirc'il, of ilif |iri)[i('ri\ favi'il, or aiiioiini ot ilic loh-., sin.'li *"^'^"'' 'aliicanil aiiHiiint., ami tin' jiro/n'rtioii tliiri'ut ( it any), ii. Im paiil liv tlit^ CMiii|ittiiy, "-liall, wlii-tlicr tlif inrlil In ivoover oil till' iKillcy I" lll^lnltt■ll or not, anil iml<'|M'mli nlly of all ntluT i|i|<'«^lioiif, Ik' -nliiiiilli'il to till' ailMlnili'iii ol'siunc |ii'r.'«i)ii to be cliii^fii hy lu'tli iiarlii'.", or illiicy iann«>l. a'^ri'f on one in-r-on, tlien to two (ii'rwoii'J, one in In' chn-i'ii l.y lli>' party in-nri'ii .iml flif utlur iiv till' (\)iii(iany, ami iilliinl tn I'l- appointcil liy llio. fiiT'-oiif HO clioHcn ; ami 'i|)t'(lf lialile, l«' ColH'llIHivf H'< tn tllf Kllinunt of tilt' lor-.t aiul proportion tn be pan! bv lilt' ('(iinpany . J/>M due iliirty cl(l^^ aftii 17. rii.' 1. -h it 111' payabif nnlil thirty ilnyn after ipli-tioii of tlic proofn of liw.-, luiK'-'s otherwise pinv •"'""'• by .-taliite or the a);rt'enieiil oltlu' parties. Je.l Cii pany may ri'liHliile, iiii'ttriil I'f pa) nil.'. T Ciinipany. iii'tcail ot niakin^ payment, may rcp;iir. l< ill! or I'l'phn'e, wiiliin a reaMinable tiim , the properly tif^'i'il oi In-t, ijivini; iiotii.'o of tlicr intention within lifU'en ays alter rt'eei| if tl le prnofs herein reipiiii 'retiiiiMn»i'in iif |i. ley 1.11 Iioliri ,.11(1 I (•|i!iyiii''iit |irii|'"rli'iii: !•. T le inMiiani;e inav be tt itetl l.v the '^iiipanv at any time, by ^'ivini.' ten days' nntiee to tliat ell'ei'i, an.i by .1 repaying' a rule tbie prnlMjrtion of llie preinniin fnr tlie unex- pireil term ; ami tlie )ii liey shall cease alter the evpiralioli of lir.'iiiiimm ,1^.,^ ,{^^y^ I'roui ihe ri'eipl nl >\\ch notice and repay ineiil. WdiviT of eoiulitioii. 20. No conilitiot) of tlu> policy, either in whole or in part, f-hull be 'ieeiiu'd to have been waived by the Ooiiipany, nnles.s the waiver i.« clearly exprei-sed in writing, .si^jneti by ati ayeni of the Company. 21. Any oilieer or ajxent of the ronipany, who UHsumt's on behall (if the Coiiipaiiy In enter into any written agreement relatiti;!; to any malier connected witli the insuriuici', shall he dei'mtiilagsntg. d,.,.||ie(l jtriiiiit Jufie. iu \it' the ftgeiil of the Cuinpany lor the put J lose. Officern ju' j" '»• for till' !t'| iIiIn jkiIIi'v, i',[o',',!! yVar*! H)iall lj<' iil'-'iiliui ly liiirrnl. iiiili'-"< ( iiiiiiiit'rii'C'l williiii liii Irriii oCiiiic yciii' iiixi til'lii' ilir IdMM iiriliiiituf.'t' fr.Mii'H. ;i',l V.,<;. "21, iSi/ii'•' /<... (F.ASSES OF [|,\/A!M)S. 4H.1. nV Cilsc til' I'rrclvlirc, uihI Willi ;i \ icW [o flicilitlllt' tlu) iixiii.; Ill niti'.H, tile viiriuiis kimis nl' insuraiico ri'iks, iiiiiviiIjUj tiiiil tixfd, liiivc. lici'ii gr(iii|i<'(| iiitii cliisNcs iiiuldi tlic si vciiil h(;;ii|,H ul nuii-liii/iivdniis, hii/iiriluMs,c\tia Ir.i/.iinloiis uiid Hpci ially ha/Ill ill Ills fill' iiirnliiiiiili.si! uiul im Ills, while liiiiiiliiii's Imvi iiiiiiiufiifliiriiii^ (vstiililisli- 'iM .niiiii'ji'il into si'Vciiil i:nrre.s- {Ktndiii;,' (diiHstrt, A, !>,(', luid 1), inliinlt'd to rcjirt'Mi^nt rcs|icc- (ivflv llicir nliiliM' vuliuis mii' uitii aiiullici, uh iiisiiraiioi' iisksi tiiiii tin I linn III ii|>|)i'ii\iMiali' idi'iiiil till !i|i|ir()]iriiit4' inU •ISO. Till! tenii.s " not haziudoii- llil/Ut'lloU.4, ia/iiiiiiiiis, and s|i(i('ia lly liji/uniiMi.s ai'i' iiuw wtill-iinuii' extra stund Irrliiiir.il liTiiis iiiniiiii^ tiii' iiiidiTwntriH, iiarli li.iv iiij^ ilisl iiii;t. sejiiimti' ihi',iniii'.'s, as apiilicd to ifoods and to tlic Miiinds oc(.'iipalioii.s and tiados, althonyli rxacliy what ;»i)od.Hur(; included in fiH'h desij^'iiatioii iiiiiy not he so i,'en«rally known and iceni^- ui/.ed UH to dis|icnse witli actual pronf ; and ti< thiw end it was custiiniary liir nMny years, iimler the National lUiurd turni of jinlii \ 111' ISliS, to eiiinui;iat<; the several rlassi;.s of hazards, \m11i tlieip re.-^peclive di\ isions and suli-divisimis, ii| Mill til e 1 1' verso of the |iolii V, (lioiii^h in the nioro recent isHiie.s of Jiolic.ies, tl 10 Ml is.saehii.setts and the New York "Stand.ird " forms included, thi^i leiii^tliy classilk'Hliou is uiuiltcd, um is any rururonce made thereto. It was en^ldiiiarv to refer to this dassitication, and make it larl llie [)iili''\, to lie used and reported to m nider to determine the lij^hts of tin; parties hereto, in all cases not heroin otherwise esjieeia 'yi iroVK led fi ir in writing. 4.HT. Ill the ease of Daniels r. lliidMUi Uiver File Ins. Co. (12 CiLsli, Mass. 417), the emirt held that : "Tlu'y lire not to (loiitiiil (jf alU'i' any rxiirt.'si' | rovi.^ion ol' liiecoiiiriict, or hecoiiH" purls of till' policy; but thi-y are pituteiniMiis in a collateral diK'niiifnt NvMcli liotli partii-s ii^^rt'o to, a.-* uii authoriliitive exposition of wluii ilu'\ KolU 250 CLASSES OF HAZARDS. unlie^'^talH^ a» to tlu iact^, in the presumptive triitli of whidi llipy confraot auil till' relations in wi'.ich tliey slainl to eacli other. Tiiey are not warran- ties, hut are to l>e treated as representations." 'iHH. These several terms are distinct and specific, and in- siu'anccs upon goods " Jutzanlous" will not include ''goods extra hazavddus'" or " spec'udly hazardous;''' nor does the term "goods extra /lasarr/o^w" covev goods " specially haza.uJotis," (lliti et seq.) But when merchandise is covered as a " Ck.ss," it will include whatever is usually endmiced in su<'h '* Class," whether ivxtra hazardous or not. (Keyuolds i\ Commercial F. I. Co., N. Y. C. A.) 2 Ins. Law Jour. 63. 4.S!K '•Extra hazanlous" aw] " f^ptc idly hazardous" are not sub-divisions or chiS'^ilic^atious of gootis under the general term " hazarduun ;" they are distinct classes of goods, and are iO recognized and treated under the conditions of the policies, 4!IO. When yiropeity is ertimerated as "liazardous " or "extra hazardous," or otherwise specified as pecuharly exjKjsed to risk, the rule that "the expression of one thing excludes what is not expre-'.sed " is tipyiViaMe. (1I40.) Thus: Tf the policy enumerate only " goods hazardous and extra hazardous,^' anything more hazardous wouhl not he covered. Strict con- structionists even holding that " goods non-hazardaas woidd not he included under such wonling of tlie policy, its liahility being confined solely to goods of the two classes distnictly named and described in the classification of hazards, as if ,such goods had been si)ecified by name. These several classes, in s(jine form, seem to have be* n c(ieval with insurance itself, having been, likt! many other custuras and practices, adopted with slight modifications from the marine branch; and they are now supposed to lie arranged, as nearly as may be, according as their several characteiistics and liability, or predisposition to combnstion or ignition tiia}' be more or less remote, and are rated accordingly. 4!»I. Til the marine ])ra(:tice of early days the several classes were designated as — 1, least hazardous ; 2, eoirniion hazard- ous ; 3, iiio7'e hazai'doits , and 4, most hazard ok s, and under each liead were embraced those subjects which, in the experience ~p CLASSES OF HAZARDS. 251 of under writers, seeraed most appropriate to tlieso several des- criptinns. Weskett, Ins. lOo, 342, 478. 4f>2. Following this, the earliest fire classification was that used by the London Axi^urancc and The Royal Bxchaiuje As(^araitfe, in the year 1720, ^vhere the several elas.ses were designate'! respectively — "common dsstt ranees," "hazardous assurances," and "doubfy hasardous assurances." Shaw's Ellis, Tn,s. 115; Ani^ell, Ins. 55, n. 41Kfi. The first table of hazards used in the United States was that of the old Mutvul Fire Ini-uraace. Co. of the city of New York in 1787. (»a.) This was followed by that of the AV^y/^ Fire, also of New York city, 180G. From this time forward the Table of Classes was not mater- ially altered until aljout 18."3G, after the great fire of 1835 in New York city, when the subjects under each head were much extended, and the special mCTHoirt^rfttm was added ; and this so remained until about 186(^, when the whole was again niate- rially increasot! and subdivided, and ,so continued in use until the adojitiou of the Classes of the National Board form of policy (a. i». 18(i7), which have been much further extended, and eml)raced a very large numK>r of sub-divisions, with whit;h fire underwriters are now so familiar as to render further notice in this divei'tion unnecessary, the more especially as the use of tliese clauses have abuut ceased. 4f>4. It may not be amiss to say, in this conned ion, that it was fur a time a custom am(»ng insurance companies to write their policies to cover "merchandise haz ," and "ex-haz.," or " non-haz.," or " sj)ecially haz.," as the case might be,with()ut any othiT designation by which the jiroperty could be identified, so (hat by simjily reading the policy, not the remntest idea could be obtained as to what kind of goods the [tolicy was intended to cover, for the sev(!ral Classes eacii contained a largo variety of subjects, any or all of which were covered by the policy under this geiuiral designation, not only giving opporttiuity for mis- undi^rstandings between the insured and the company that might li'.ad to the courts for settlement, but making it next to an ini,>o,s- sibility to form a statistical! clas-silication of the business o( the on". ArPLICATION AND SURVEY, com[ifiny. This oini was vtivy apyiropriately termed " the lazy man's |iolicy ; " it may save time, but it tomlsto coufu.^icm, wliore cltiumess ami pr^'citiiou are so greatly to hv, desired. APPLIOATIOX AND SURVEY, 495. ComUlionoflht I'uhcy ■ " If an a pulicixt ion, siirv ey, pi tion of tlu- prupcrty I'e roiii in.^iir('( rcferrei ill til is policy an,orde.scrip- li- suoli .'i|i|>h cutidii, >.llrv^•^| plan, or •It'.-'i'i'iption sliall be coii-sideretl n part of this contriut aiul a wjirrinu liv llio a..*-'ur( ,i. 41M>. An applifatiou is the ])reliininary (hM'.laration made by the. jv.iriy applyiuij for iusuratice, coiisistiii;/ of oral or written replic-i to iiujuires, verbal or written, iiiteiuled to cover all facts or circiimstancos material to the risks ; subject, however, to the principle a])i>licable to all contracts, that iVaiul by either party will exonerate the other from his oliliLtatidii, if he so elects. These stateim'nl> aic made before tiie is,su(,' of the policy, tisu- ally upon a jirinted form, called also "a survey which is declared lo be " a true plan and failhfid (iescri]iti(in of the existing condition, as to exposure, occupancy, ownership, title, value, or other iiKiieiial matters connected with the siibjeet ol' insuratice,'' whether chattel or rcid property, by whicli the umlerwiiter is enable to judge of the nature and h.uard of the risk, and Hx thereto an approjiriate rate of premium, and in so fur an imjilied agreeineii'i that the facts declared shall continue ^ lirouehout the currem \' n f t: le poli(;v and as stieli reiavsi'ntatior C>M) the T. While the application, more or less in detail, was for many years jirior required by insurers as a })reliminary to an insurance', it was nut uiitd the ad')])tion of the Natmnal Hoard !brm of jiiilicy in 18(i7 ihat llic furnishing of an a[iplication, sur- vey and description of liie property was re(piired by the stipula- tions aliove recited. (11V">.) The general principles gov(M'niiig ajiplieatinns for insurance are briell > "■ IbU ows :- 4!>.S. i'l le appliciitioii with its lopreseutatiou.s is a part of HH APPLICATION AND SUKVKY. 253 the ])i'eliTriiiiiiry ]>roceediiigs whicli ]ii()|)(isc the contract, while a Wiirraiity i.s the completed contrnrl. The lattenuu.st he liteially coiiiplietl Willi ; wliilo the former, if coinplied with equitably and siibstaiitiully, will jje sutlicieiit. 18 Ind. :i.):! , Jl Conn IH ; 14 Barb. N. V. 30:f ; 6 McLean V. S. C. C. .IM ; 2 Ohio St. 452; 4!i Me. 2U0; Shiinnon m. Gore Dist. Miit., 37 U. 0. (.^ I;. ;!80 4U!>. To make an ap]plicati(iii a part of the coiitiacl, there must III' an cKpiei^s .itipulatiou that the ]iolicy was iiiade and uccejiteAl in reference to sucli application. 7 WVni \. Y. 72 ; H', /./. 182 ; 1 'M^IToH,, 0. C. V S. .SOO ; 43 N llamp 17r, ; .Shannon v. Hastings Mnt. V. I. Co., 25 U. 0. 0. P. 47o. t'iOO. Xor will ,1 mere references in the policy hv way of recital, or nthciwise, to a. survey fiiriiisjicil by the in.-meil, make the application a pait dftlie [lolicy, sons tc) require ]irecise accu- racy a!i(l eontbrmity to the description as in a warranty. 2 Kail \ Y. ri8:V 032 : 13 W'cnil N. V. 92 ; H Ben. Monroe, Ky. 034, S48 ; 2 Denio 75; 22 Uonii. ■.'.X, ; .i Wend. N. V. 488. mHtiU >,'onI(ies the mere indication in the policy oi the place where an apjilication, which shmihl jnccede the e.xeciitiMii of the policy, can bt' fuund im tile make it, iiece.'^baiily, a jiart i if the jwlicy. (lit Ind. 3'>2.) SOI. Ibit where re fiieiice was made to "Survey Xo. — on file at the ( Hlice of Insurance Company, " and the policy con- tained the custnmai') ci'iidilinii.s nt waivaioy a.s to the .statements therein i outaiued, it was IhM that "the >-nrve\ referred lo can- not be rejected anil tiie residue ol the j'olicy upheld upon the ground that the plaintilV .suppo.si'd that it w.i.s aiujther and a dillbiijiit pa})er whu'.h had lieen tiled in the oUiee, to which reference was made in the contract.". I ' liiirl. \. V. 3H ; : :iO N. V. 13y based on this survey obligated him as to its correctness in all. (2 Ins. Law Jour. 63; 4 id. 874; n L. C. I{. 128.) *S Keyes, N. Y. D.IT ; 2 Ins. Law Jour. (13 ; Sami) vs. (iore Hist. I. Co.. 2(> V. C. C P. 4UJ. made t>4Kt0 I. When ipiestiipiis in a printtnl fnrm of .ipjjlicatiun are left Hihn Ksii-iiu'il liy the applicant, aiii| a jiolicy is issued tliei'e- u])on, it is a waiver on ihe part ol the insurer of such answer. (4 37 N. H. 3." Cray ]\Iass. 2G1 ; it id. 18." May lii^ s^ IGO: 'jl Pa. Sta. 52i) ; i) Ins. T/,tw .lour. .5(il>.) V (IL if I (|Ue.-,tloii he U nails WiTe tl leie is no waiiv.nty that there is nothing tu an.-wer. (7 (iray I^lass. 271.) •>0»"). 1 1 tic answei' toan interrogatorv ix-iii itscll'true, though tl; I'll iiesi lull be icli a-5 lo siiL'U'(!st a fuller and more detailed rcjily, Vet if the insuri'i' be content with the partial answer, lie cannot claim a warranty e.Mending lieyond such partial answer, or \ \. IS.', ; on ,./. -lUQ ■ 0.-5 Iml. o;; .May Ins. ? 200. tlieansw(!r U) an intern igatory m the ap[tiicai.ion .>o<». \V I ere is itidcliiiiif nr tnnhujuoas and notwithstanding which the eom- jiany i-.-ues the po!ic\, it cannot subsetpiently .set njj a bieaeh of warranty in such aj. plication. The company shoulil in such cases demand more sp.ciHc information upon the subject matter of the interrogatory btdbrt; issuing the policy. L».'liiin(in .Milt. los. Co. o. Kepler, Peuo. Sup. (Jl. j 21 (.(liio .*5t. 345; 12 (Jruy Mass. .or). All'LlOATION AND SCRVKV. 255 i: I 507. One who arofipts a policty of in.su ranco in wliich it is decliii'i'd 1(1 lio. " miuk' and acccjiUid iijion an a]i]ili(ali(in on tile in tlie couipanies' oirKJO," is tluTt'liy j.ivecliided liuni denying that the applicalion is his. 6 McLeai), C. C. U. H. 321 ; .lO Pa. Sta. ;«1 ; 1 Ins. I,nw. Jdiip. '20 ; -l (,/. 874. iiO-H. "Written aiLswurs by the iiusiuvd to wi'itten intcrrofra- tories (on [ninted foiin.s) put by the underwriter, and refcrn'tl to in the policy, are a part of the ".vrillen contrijct, to the ellect to whidi and for the jmrpo.-^e for whicli they are .so referred to, whether as warranties or representations, or mere descriptions of the subjent. 12 ('ii.sh. Mass 410 ; 3 U. !. ir>1 ; A Ins. Law Jour 07, 09 ; 1 7 lowii 170 ; .50 IVnn. Sta. :«1. 50!>. Wiie're a jxiliey referreii to the ai)]ilication for " a more full iind particular dttseription, and forininj^ a pari of liie policy," and ileclunid that "' tlie policy was made and accepteIO. When a polif'v refers to an ap])licati(in as a part of it, both aie to be considered as one instrninent (I70), and a mis- stateiuent m ihe a])plicatiun, wlietlier made intentiunally or otherwise, as to a material tact, will vuid the policy. (35 Ohio St. (10('..) »>ll. The fact that the insured was an illitemte Herman, whu understood Knglish but im])erfectly, was immaterial becau.so he was not obliLjed to sign tht! apjilication uidess he understood it ; but having signed without asking to have it read to hiin, he was lii.und 1^' it. (108 Pa. Sta. 5U4.) ai'i. Where an aiiplicatioii for insurance was dated ji]ilication iiad niithiiigto ilo with the policy whatever, altlujugh meiilioned directly therein, as tlu' policy was written and signed on the ^ •■■fv 7 wmm 256 JiEriiKHKNTATlON. first, wliile the applicafiou wa,:; Dot coiiiiilctod until Uie ninth oi tilt! JDtltltll." Shaw .\i Hiipert v. N. B. !«. The iiisurcil i.s luspoiisible for the tnilh (.rin.s apj/Iica- tioii, uhliough signeil hyhis own agent, in hltink, iukI Idi. to be filli.'il iiji liy tlic I'oiiiiiiuiy, provided ihe company has not exceedrd (lie ini|(li(cl authniity cunftiired by .s.'iidiny (],e iippli. cation in blank. 40 \. H!ini|). XV?, : :'.•) liarb, X. Y, I'lT ; 7 (,!rny Mflss. 201 ; j:! Ind ]{\^ ; Wash. U, B. C. C , Sept., Ih86 ; 'i Ducr Ins. 18 : ft Ins. Law Jour. 5, L'D : If) id. 98. For otlier authorilie.'^ on llie subject ot ajiplicalions, .sec IMay Ins., ij 120 ei seq., i\m\ 3 Ins. Law, Jour., pp, r.47 -737. .Applications, as reo;arded by the Courts, maybe eia.s.sed as Ki;n,KH;\TATl0N.s am< WAKKANTiKs, and theso again are aHected by MiSKEl'KESENT.VTIOiN, '.'OM'KaLMEKT and MATKKlAI.ITV. RriPPtRSKNTATION. 51 i.. .\ rrprcsi nl(ifiOit, in tire in.sui'ance, is the eommuni- cati(tn of a fact, or the making of a statement by one ot the parties to (lie uUn'i', lending to influence his c.-^tnnatc of the character and degree of I lie risk to 'oe insured against, and is to be construed accurdiug to the fair and olivious import oftlio words ; and is e(piivalent, nut only to an e.xpress statement of present fnct.<, luit also of all tbt; infeienees naturally, obviously, and n.ces.sarily arising from it. It may be an i>ral or vrUten stat( niciit, (a' may be by nure inipliealion : )i\ the ]iolicy itself, liy a separate writing, nv by words s[.oken, I'.ut to be liinding it mii-L be j/nu/er/^/, and to discharge the iindei waiter musi bo /a/.st, wholly or partially, \\\ f(U-t or in tlu; c/v/'/. Civil Codi; L. ('. § 24P.") , 14 Biirb N. V. :W3 ; A'.< Me. L'lH). 7 I'. Q, I!. 110; 18 itui WWi : !S Vroom \. J. '.'44 ; 7 Nevada 174; 3 li. & S. !<17 ; May Ins. 190 ct set) I linlips Ins. -'74 tt soq. 5I.>. When the insured re]iresents a fael u ilhout knowing it tol"' true, he tah'H the rink uf it upon hhnsilf. -'9 Mich, -m- 27 Ind. 4; 1U3 Mas? 503; i- Mush. Ky, 7J3 ; Dougl. 247, 2(;0 ; Pai-i< In.-; 182. ♦IK!*. When n 'irpref-'mtnti'm is qualified by the expression that the facts are such, " to the lied of hia Lnuvdtil17. L'i;i'hksi;ntatii>ns are atfirinativc and ^nvymssory, as well as iiidtcr'nil antl nmitdfcriiil. 1 Arnoiild 578 ; 7 Wend. N Y. Ti; Aiigdl Ins. lOfl; Garrelt v. I'rov. Iiia. Co., 20 r (;. Q. 15. 200; Hopkins v. I'i'ov. Ins. (.'o., 18 IK C. 0. 1'. 80. fil.H, Al'l'lHMATiVK : As that the fnct is as represented at the tiuK! tlie statciuciitis made. A positive affirmntlie rejiresenta- tii'U iii' yii'iferiid j'i(.vl.^uch representations will defeat the policy if it iiceur ])rior to or simultaiienusly with the coiniuencenu'iiL of till.; risk, or be a i,n'(,uiud of forl'eiuire it afterwards. 1 l'liili|)dliis. 2;i,'i, § .w;!; 9 Allen .Mass. 5I(. ; 2 biuM'. Iiw. 0;>~t ; 4 Pick. Mass -IS'J ; Maisli. Ills i")0, V 1, c. 11), § 1 ; 8 Mi'lc.f. .Muss. 114. aUK rRoMissoUY : .As that it shall remain sultstantially so durin<4 the continuance of the rik, so far as may depend u]ion the insured, rroiulasorij representations of material facts, .so made and referred to in thc! policy, usually ha\e the eft'ect of express (wn'/v/'/tl' (■'(',«, ami come under that head ; liut in ca.ve of a writien iirnniissory representation, referred to in ihi^ jiolicy as a i'<'jire,nenitipra. rS21* A r<']pr('S('ntiition is MAIKKIAI,, when tlicro i.san aflinna- tiou or denial of .-imnie tUet, or an iillf^^.itinn Mhich )>luiidy ioad.s the mind to uu inference ul a fact. ( An iMM.vriilUAL represeiilatinn is one luivin^ no such tendency. The facts as to malti UilUy nr ■nuinuicrialiiy <.<{ a repri'Sentation are for ihi/ jury. ^*2'i' Though it is not riMpiisite that a rcjii'cKi hfatioti. elinuld lie in writing, it is usually .so made, or it is reduced to wiiling by con.seut of the jiariies at the time of Ijeing made. l\lr. i'liilips (vol. 1, 2H2)says:-~ " It 't^ for tlic iniiliuil I'CIk lit of tiif particp tliiit it fhonlil tip in writiii}/, as il itMliiceri cHiiiKiij uiiii (ifliliciuliiMi, uiiil snv(S parlies from torjictfiiliie.-'i, ftiid iiii.'-tBkeK of wiliii'^pps Bii(i error^ of liroker.i uinl clerk.*." <'>i2^1. ]i< i)i( sevfotioDs u.-aially form no part ni the jioliijv, l)ut are simply collateral tu the cniiiract and invalidate it only ii]ioii the ground uf fraud; that i.s, it nui.st be false, as well as material to the risk. Yet a writt(!n rcprcnthlafinn. may bo referred to in the jiolicy in such a manner, or may be of such a matter us to require a.-? utrnt a contormity of the facts to the statement, and c(>mpliauc(^ as if it were an express, specific warranty m the jiolicy. 1 Arnoulii in-,. 1J5, lit".; \ IJii.r [ns. .S3 j 1 I'liilips Ins 2fiO, MS; Park Ins. 205 ; 2 Ii;8. Lhw .Jour. 810; 25 V C. C. 1'. .3i;5 ; iJ. :i72 524S. Ji'i j/ri'SciiliitiDiis luu.'^t be substantially complied with, however, in all ca.-'rc(iter than roiirosontod, or fraud is ovidoiit. If false, however, in iiialorial fads, whether through igiiunuict) or desieii.tlie policy U void. 8 Mclcf Mas,*. I M ; 14 Imib N.Y. :iSH ; I'i Nn Ann. 21(i ; 1 Stoiy C. U. S. 57 ; 1 Bell. :.!iH, liOii ; 1 Hciin. F. I. Oases .'/JH ; 1 I'hilips 30S, J G6l»; C. U. L. 0. s^ 3489. .1»ti7. A stateiiiiMit of ail Mj>''rt(tfli}n,, oplaion, ov hclirf, is lint a repre.^oiitaiiiiii, and will n'.> (Juun. 10; 1 I'tiilips 3ue;; Arijriill Iii.l. 19!). 52M. The applieaut need repre.s»!nt to the insurer r.nly sneh facts as relate to and are material to the risk ; nor is ho recjuirod to iiiak(^ it'pnvsentations of any circumstance which is provided for hy tlie (express stipulations of the policy. (C. C. L. (J. sij 2i8(3. jS^iitK in cases of amhu/ititij oi' doubt, the courts hold so much of the application as is not speciiically declared to be a warranty to lie •Areprexeiitatioti only, and as far as p(^ssihlc such stipulations arc tak(Mi out of the category of warranties and .some less str!u.,'ent term applied to them. 24 Ohio Si. .U,-) ; 12 (Irny MiH3. 54,'. ; 1 I'iiilips Ins. 302, 5 .508. •>!{<>• Whei'c a representation is ambiguous and obscure, the const uctioii will depend upon the obviousnes.s of such ambigiiity for obscurity, If tlaire be no fraud on the ])art of the i lis ■ red and a fact is imjierfcctiy represented, yet is ,so repre,sent(jd as obviously to suggest further impiiry on the part of the insurer, l\n: rcirrcsi iittdiou. is suthcient. And whan n mu Me Lent rcpre- seMtation i,s thus made to put the underwriters iijioti irnjuiry for further information, if they wish for it, and tiic) neglect to make such incjuiiy, they are b<*uiid by the policy. («»l*5.) 10 Pick. Mrtsa. MS ; 1 Phil. Iiia. 31.3, § J,s4 ; 1 Suinii. U. C. (J. .S. 4D1 , 4 R. I. 141 Per contra, 22 Mich. 1 10. 5J$I. A representation ii\%GU only the contract to the mak- ing of which it has reference, and once made to apro])o.sed insu- rance continues to be binding, unless it is subsequently revoked or modified iiefore the policy is executed. 532. I'^nder the recent law of Maine : — (Skc 19 ) Stateinfnts of description and yh\uivHetit(i(il (lie jwiioy, it oiljjlil lo lie ciiilioilied in tile written eoniiaet. Ht'uco, verhid declarations may, by a provision in tlio policy, b(3 made to form directly a ptirl of tht; contriic.t. 1 I'liilipS Ins. fiO, § :,< ; (,/, :!I4:0. Alien Mas-i. f.4(> ; Mny Ins. I!l2 ; '2 Ins. I.flw Jour. 743. See Alhiun Lead Wmlv- /'. W f.sti liesl.r lus. t-n., '■» I a. Law Jour. 43fi, as to Representatioiii by a HroUer. Silit. An ajijilic'itioii fur iiisiinmoc, made at tlie ollice oftho conipany or its agency, and ilidy entered iipdn I lie memonin- dnm ororder book, woiilil lio ((iii.sidcivil a.s I'Vidoinc, a.s furii.s it repre.'^eiitod the fai't.s and could lie iirnveii. I IO!K aiifi. Wlii'irit was agreed that "«(*(((/,//*_(/ -IkhiM he .^trietly pinhiliiiid in and ahntit tie; j t( niisc anil the insured swears thai prohihitcd sinol^'itii/ i h nhil afmvt iln' hii ih/i mj : — JIki.o: That I IIS was u liieial coniiiliai.vN' wi til li to jirol iMiit .-inoKin}; th I'' ■f tl le atrreeinent Me.Doweil, ;■)() III. 121, it se 111' 1 he liisniaiire Coiiipany ol .Vurtii Amer- ><1 I II an^U' r to a i|ii<'sti:a;;eiiient, as stranjrers and others, over wlniiii he liad no coiilro!, were liahie to-ni'iUe aUnit the duiii. Hail the evideace shown tha I Ins ord' rs were di-iej:arded, and it iial come to hi« knowledire, tin n a ditferent quesiion wipitid have l* ri'iiri'siiiliitiiDi. was a noiifiiiniiiif (nic, ami wan a warranty that a stove wiulil nut tie. unedfor warnumj pufjionen." ItltH, " 111 tho cn-'i' of Siihmiili e. Thf Peoria Fire an'I Muriih' Tn^iir- H'lci' (" iiii)iiiiiy, n III. 'ill.'), a !i used iu a grossly liei.'lii;ent niat)ner, ani tiiey liave found it was not " 27 Penii. Sia. 3:!5 ; 29 How. N. Y. 384 ; 2 Gray Mass. 221. ITNDKR Rr:-INSt'R\NOE. mm. The nik'S in regard to irjirrni'nfatwnf^ ^1'1'b' ■''^ ^^aW to re-'ni-oii'iiin'i' as to originul iuaurtince, and h.'ive a Itroader applicatioti in one respect, for the oriojiual insunnl is unt (umml to tuair<'i^''nfafioniind a varrdiilij. They ditVer in tlie iiimlc, not in the duty of performance. A t'i'pi'i'm'nfation is ii ]iart of tho preliminary proceedings which propose the contract, but does 262 WAUIUNTY. not aj»i)0(iv ill tlu', policy — a warranty is ixirt of tlic coinplotcd ciiiitmct. Tho Litter must be Htrldlij arid lllrralh/ cdiiiplictl with, while, with tho former, it H'tmiilicid with itjiiitdMy ftud auhstaitlialli/, it will ht.* siillicinnt. fHI. it is (liHi(Jult, in iiiiuiy cases, to distinguish what phiiidioli/yy iiiiiki'S a ivarraiiti/ from what ia oidy a ri'j'ti'.^i nta- tinn, and tlic |iliras(!oloj;y which will luako citluu- i'nuii what is only (Icsi'riittiuii to iih'iitify thts su Inject inttinvil. And wIkmi a provision has heoii ctdistrneil to auKjunt to a ivo.r,iint>/, or ti> luorelv a rcitrrni'vfdtiini, it is still diflicult. in niaiiy casi's, to dislinj^iiish uhiU is a " lUiidlli/" triio, or .>•/»•<>//// ai'ciiratc stalu- rnout of iho fads from one that is only »iih>,taiifl,(il.l>j true, 1 Philips IiiH. .144. 5 4SH ; i-/, 4IH, suhjccl ; iind aulhoriliPB cited. Civil t'ddt^ L. 0. §S 2Hti); :i57'.' i !l N. J. J II , 1 AnuMild Ins. l;n) ; May Ins. l!)-'. rt'ltJ. Kvcry stuU'iiicnt in llui polii'y ia noi. tu'Ci-ssaiily a warraiifi/. Tu be hhcIi, it iinisi relate to thf risk, arul cdiitain soniolhing more than farts incidiuitally cxjiivsaed or introduced by way of recital, or to identify the subject insun-d, and not purpditiiij.; nti the l.tcc of tlic polii^ to Iv stipnUitiiMis. 3 Cuinsl N. V. I'Jl!; Ki Comi. .'/!.t , 1 I'liilips Ins. U>'< ; .U Mo. 21'J: ij llun. N. V :f.-.3, mil. Till' [)arly warrantinj; undertakes that thi" ni.ittcr is such as he rt'j)re,sents it, ami unless it iw so, whctliir it. ari.se froiii friiud, inistaki', or negliytmce of an aifcnl, or othfrwise, then the cuniract i.^ not cnteri'd into ; there is, in reality, ii contract. Covvper TS.'i; I I'hil. 314 ; I Arnonld ■.s4 ; 8 ins. Liiw.I.iir. 131); Shaw's KUia Ins. 84, ai ; .} Kent. Coram, 288 ; Se.ai c. (Quebec F. I. Co., j II. tic 1^. T'i, 125. fill. WdrrtiHti/ always forms part of the pol't-y when ,so a[ipei.ri ly; iijiou the face of the contriict, or jainled ui the same sheet and dfjivered with it (G Wend. N. Y, 488). and is a stipulatiiiii ihat the facts arc such as represented, iipi.ii tho liferal truth uf which the entire contract depeiuls. Hence, a literal ciiuijiliance with tln^ ti,'rms of a narrantj/. ami not nuTidy ;i suh>'tuntial one, can be exacted. It cannot be di'Via- ted from in the smallest particular, whether material or imma- terial to the risk, without voidinjj; the policy. 4 Ii, I. 141 ; 2 i;urtis, U. S. C. G. '112; a D.ivv. 25.'); Cowjiur 7SJ ; Cush. U&as. U ; -V. V, Cide, § 141»J ; :: K'.'Dt. Cuaiiu. 2(SS. W.VUKANTY. 268 lHa, Wl)rn 3taL(!in(MitH firo imuk! witli lliu (|iiiilitinition tliat '^ fkiij avf tnif. MO far us kuuwu to the uj^iiLUaiU andiiMtiwiid to ffui rink," it is Hki.ii! " Tin' M»oh Mtutcmpnl, llioiiuli in tcrniH u wiirrttnti/, muHt lt« <>( n, matter nmfifrial lo llic i'ink. uipI tliat ihi' in.tiiri'i kiiim ,1/ itn fahilif iit iltc time, or till' viuicliiy of liio |inlii:y >vill iidt !»• iillci'icil tin n.'hy." (CMHtj •1 Winn. 82 ; r»rt Me. 080; 29 Iiid. fiHij ; !i Ins, Law .Fcmr J!2. SiAn. Il is porll'iilly imiimU'iiul Inr wliat piu'iuiso a ivarraiifij JH iiitoiidc'l ; DO foiitnii't •^\i.st,s uiiK'.ss tlio thing Nvarniiitcil la liti^nilly iK-rtoniud. (^lO.) N. V. «>oili', i H'il , Miirnli. Iih. 254, 2M7 ; iimi nutliorilieg »M/ir«i; ^ Keut C'omin. 288; 12 Ciuh. SU^a. U>> ; ai [owa.'Cif); 4 Gray NUm. 337, tl40, {517. "The r)iatervUHijo{' tlic thing wiurantcd to tlie risk L-i not iniportimt ; eonnilUtnci' with it is a contlition pieti'di'nt to ri'covi'vy u|ion th(! cniitract. IJiit when tho insured ti'drranfs /((t'/.s n» /(If iix materliO, [\u' in'iteriiilili/ \h ini|ioftant ; Init a .strif.t compliance ought to operate in favor of, as well a.s adverse to, tlie insured, w hcuievor lie can hring himself within the terms of it." f«ll, «I.S.) 3 K.'tit Oomin. 48H; (iUuili. Wms. ;uo ; 17 Mt 2,'.5 i iH Tns. Lnw Jour. 242, 247. 24II, i:t5. HiiH. If a warranti/ be intciudeil to mislead, it is a framl; a warranty being false, there is no contract, inasmuch as u warranty alhrms the truth of the facts it t nibraces, and, as a necej^sary consecjuence, tlie falsehood of the allegation is an iiilentioual fraud, whether the warraiUy be express or implKul, (Marsh. Ins. 287; Park Ins. 177.) SIO. Stipulatiima, though having the character oi warrant ioM and conditions, are to be reasonably construed in reference to the subject-matter, and not captiously nor merely literally, the spirit of the contract and not the letter being duly considered. (59 N. Y. 557 ; 6 ins. Law .lour. G4'J, 033.) 9JSO« " WitrrantieH are not created or extended by construc- tion ; they must arise, if at all, from the fair interpretation aiul dear intendnuuit of the words used by the partitas." m .Mass. 3ftl ; IS III 5r)3 ; h<.) ii. 123 ; 7 Wend. N. Y. 72 ; 2 lus. Law J. 743, 810 ; I id.'.) ; (1 id. 9:il ; 12 .Moore P. C. Oiisea -175. 551. The inlentionti of the parties warranting, except as S64 KXl'BKSS WARRANTY. to the meaning of the words used, cannot be inquired into. The courts, nevertlieleds, will look closely to the infention ol' a uwr- raafy, and will, not construe it nior^^ strictly th.iu it really injports. The oonslrr.ction of ♦^iio langua.u'e will Ix; detorniined, as ill iithci' oaseti, l)y usage and roniinun ace.epLation. (IIKl.) (2Curtii?C. C U. k HIO; 4 11. 1. 141.) \YvKiiANri]:.s are ••iiher crjin'ss or inijilifJ. iSiit?. f'Jiprt'ss or afprxMilve warranfij is a particular stipu- lation introduced into the written contract by aijreenient of both parties, md u,sually ajipears in the form of a condition of the policy, stipulatinii that certain fact*- are tion on the [tart of the insured, on the face of the policy, whiih relates as a matter nf fact to the risk, amounts to an exjiress warranty + * -^ wln.tiiei thr tiling wuiiuiitcd he material Ol' iK,t, uiid whether the ' »ss happcntid i)y reason of a breacli vi warranty, oi' did not, is immaterial. A lireach of it avoids the policy ah iuiito. {?> Kent's Comm'y. 288.) Sovereign liis. Co. v. Moir. S. C. Can. Fd... ^i : \'' VVr. I'li. 3tJ7, ". Allen Wu-s 213; 4 Gray Muss. :!37, 3.-<0 ; 4ri Me. 20" ; 1 Ml.-o .Ma.w. 3n ., :!0H ; li Oiisli. Ma.'^.s 311) . <) C/i.sey Pa. .A:, . -i id. 32.5 ; '::> Wend. N". Y. ;;74 ; Flanders Iiiii. 204, :>. 13 Conia'ock 044; .14 .V. Y. 193; N. Y. l^ode. j§§ 137;i, 8(1, S7, 97; Civil Code L C, §^ 24011, 2401, and authorities cited , Seotl r i).whfi.: F 1. Cu,, 2 |{. de F., 11!) ; tirant «■ ^'Kina Ins. Co - I'rivy Coiinf"il--i> L, i" . J. 22i 12 L. C. il, :•>*{)■, 13 .Moore's P. C. C. 51(i, 5 L, C J, 2^5, 11 C li. 12S. .\ iiiiii-coinpiiance witli an fixinr!<.-^ u'ltri'dut n that certain things shall i)e done l)y a certain time, does not vacate the con- trat't from the commencement of the risk, but only from ai.d anei sucit Hon couipliancf;. (8 Metcf. Mass 114; I'l Ciish. Mass. ^'4r, ; Civil Code L. C, 5^ 241)1.) ti.».*{. W'lieie insured iirnperty u-.i-: desen'oi'd as "to lie im'ch- pied as throe stores, U\il iim o,*> (,///Ve. //,>». >■<•.•.■." and it wa'; ju'oven that l)efi.re iind at tic time of tiie tire ota- occujiied as a e( the teiiemt'Dts was lilrediouse ; tni' lire (irimnated ne.xt door, Hki.d : "Thill aliliiiuijh. a.-^ a irenerHl riil>', word^ u\ ilesctiptii'H in a y>.lf. Ill <:r/)n-s.i vm'rardies the ads of agents and servants are iiiiputcii to ihoir priucipalH, 55.>. iMi'i II n WMiKANl'Y is . . : ^I'liement not, oxpiv^sed in (he ]K)licy, but which ne(',os,savily n^suh^s from the naline of the contract, or isprcsnmeti from tlie fa^'t of elfcctiu^f the insurance. (1 Phihps Ins. 321, 324; 1 ArnouUI Ins. 41; An;„^ell Ins. T.tH.) What is im]ili.)i1 is as effectual as what is cviiic-simL (4 Ins. Law Jour. 4S7 ; Civil Co.le L. C, J^ 2491.) arm. Matters ot//;////7V'((( a^^reenient in thf jiolii-v ncnl not he renresenteil hv the insur.jd in Ihe lust instance, hut lu- is iionnd to make answers to in([uiries )>y ilu; uii'lerwriters relating to matters of iinplieil^ ■Wirnunt;/ ; and tlicugh no such in^juiries be made, still, if the insured vohnif^i -'li/ iriake niuvseiil.ilions of that desiTii'tioii, he will he hnuml Mi-vehy, and the ]/oliiy will he void unle.ss they are substantially true. As I'ai as a reprcseutati(jn extend.-^ an inij^fd''! viuru.nfy ceases. 1 I'liilir.s Insi. 'Wi ; rt Torm li. l77 ; Mursli Iiis. 28T ; 12 .lolin^. N, V 128. *>,>7. Tlie rule which [irevaiis u|ion tlie side ol ]>r(.j,iTty, tliat a warranty does not extend t(j defects whioh are known lo flie purchaser, i;mo N V 7:-. ; 10 B:irb'..ir N Y. ".ff- ; 2 Caincs. N. Y. 1.1.'), i:i M«.s,s.9r.. .15.H. -If by an\ wonls of reference th(! stijinlati ais in another instrument, sucii as a /iropoKal or api>lh.'SfK A-. a|)plKation hecom(!s a (cuwct ;;/,',' only wh.'U wntien or dirtited and Huincd hi/ the. applicant, or hix nnHinvheil 'Miriit lor nim, and must l.»i' refern-d to in the [lolicy, and iln'ie made a mirr'nilf/ ai)d a jiart diereof. A mere ret'erfiiei in the nohey. by way of recital or otherwi.se, to a snvfcu thrnished i)y the insin-ed, for a description of a building insured, dvn's not make it a })art of the policy, so as to re(iuiro ]U'ecise accuracy and conformity to ttie description as hi a warrant y ; a suhstan- 2GG GKNKKAL AVAUUANTY. tial (!oiifoniiity will sullu-o. TUit, if such survey be referred to "as iViriniiiu! a part tht'ix'Cil'," it Inxonwa a aurnrnh/. {."iOO.) 50 Pa. .St. .iSl ; I Glilf'ord U H. 0. C. 300; 18 tnd. ;iS2 ; Park Ins. ^'01 ; CV^wpcr 790 ; 4 Ins. Law Jour. i*.t, i-K : 2 U«nn. F. I, Cases 6!i6 ; (.:. L. 0., § 2481. »»4S0. A ■n'li.rr'inhj need not iiecivssariiy he ex|»re.s.se(] in any panicnilar formof \V(>rds, if nM-sonably explict. (Aiigell lu.s. I 10.) «5r('.nfiital toil, tiif liurdon is iipoii tho defendant. OEXlvUAl ^VAKRAXT^^ flO.'J. Cuiuliiion of' l/ie /xiZ/Vv/.- -"Axn it is iikkkbv rxDERSToon .\nd ACKKKD, by iiml hi'twccii this cdiiii iiin;iMV iihil lln' H.'iHiuvd, (Imi tl us (wlicy IS ina.ie lunl ac(!('|ii<''l in reWrcnci' (o ilic lon-e.'iii;: Icrni.s and conditions, .■md to the f,7(i.v.s-*'.s of Idiiard-K aivl mrinnnuida printed nn tiie buck l. lie ellec; n f tin; fun-: olIU tiu- siipalatitju-: td' uw jiuhiaes upoi Miditioii is to {Mit nil oj 11 the foot=iii<' of ivarranlien. Th emitracti is luadt.' ana at'cepted V ith irfcrence to thum. nd .inv failure to coiuj)!} with any of the esseiiLial particular^ Wll Vdii: tl u; coutlMct. ^(. CI; isses 'I f IT; uiin (>•>. I'll ihe (ither iiand, when a poliey conuiiiKjtl this jtipiilalMii, tiie I'ourt m the ease of Pavida s ^. Hudson Itivef 1 1 12 Cush. Ma.s.s. 417) sav ; — Inlli IKS t;a-^e til' polii'i, was niiu referenc ' to the terin- anil eoi\ditions annexed; but the'o.sition of wha' ilu v Imtli understand a.^ the factt*, in the pre.-umptiu'! md truth of which they rui.i i uu , aiid liie relaiionii in which they stand to eav h otiier. Tliev are not u\n innlit;:, but are to be treated a.s repre^entalions Wh ere there 18 an}' roorii for con- Mruciion, th" leaning of all ci'iirts is, to liold -tipuiation-j to be leprrseni- atious, rather than uiarranties" MISRKrEERENT^TION. 267 DlAGIiAMS. mm. Lcrarai. or grotinJ-pilaiia of riskt profxjsod for m- suiaiicc, siii»ii>osed to t-xbibit th( dass of Ijiiilding, sizf, lii<»S. The reHi'.id.(dioii, (f'st:'io fnWi) u-ually li;i-> reference to the insured, beeau.se tlte fact.-" are known lo him oidy, and the nisuraiice i.- made n[;on his statements mostly or uhully, and he is therehai.' 'indei .^tiingeu! obli;.Ciitii)ns to make a fair thsclosure of atuiid.mt circiimstain"S. Tiiis doclrine i-' tpially ajiplicabh! to the uiulerwriur in cortain case?. (OI2. ItlOtl.) 10 Pi' k. Ma3^, ln,r);i.-i 1- - /. HO; -t Ma33. tM ; .\f.ir,-?li. \\m S^j; L. C. Civil (.'ode } 2487. .Stat. Oond. Ont., i I \ \ Philipa Ins. 'i&J. ^ >\Vj. 5<»!K .\ ndnrepfeHenfafioyi is tin,' assertion of a material fact, whicli the insured knows to l>e false; or which he tnakoa in an uunualified manner, not knowing if it be true or not. 3 Ht-nn l'. I. Uases 129 . (ir illy «. Stanilanl !ii!t. t\>., II. (J. J. tint., (,». 15 Divisioa 18 Ind. ayi ; SI.HW V. St. L.i«'retH'e Co .Mul., 1 1 I.'. C!. Q. B. ;i73, 8 L. U J. tO:i ; flascy 0. (iul'tsn ih, 2 L. C R :'0l. 4 I,. (; R. lu7. 2G8 MISUl'rUK.SENTATION. rJTO. A vti.sfc/iri'.^ciilKfioii, will void iIk^ pnlicy as a frdiid, Iiut iicii us a |(;til (if liic ajjrcoiiu'nt, as in casi! of u wari'iiiily; aiitl. ((' ivmicr a polic^y vmil, it luiisl. iiot. diily lie /'((/w, ImL it iiiust lie idiiic.rial, (uUiiT in relation In llu' latA' oi' pi'fniinni, or as (iHiTiiit; a talsi' iialuccuiont U> llui unik'Twriti'i; in take t,lio risk at all. (*»77.) 1 Slorv (! (;. [T. S. 57; '1 IN'llou S. 0. U. 8.516; 34 Pii, St. '.'30 ; Gi'odwiii c. in- K I. Co., U; L. C. ,J. '.iDH, IH , /. 1. >> 71. A /r/)/V'.sr/)/'?''"M is /'(t/>r wluMi it fails In ciirrfsiinud with till' fa ts tliat ilaniiiM-*nr stipulates; hence, its I'alsit v is eitiiei liif('iif!i)rfil >t\' itrriili'iit tl. (.Nfarsh. In S. ■>. ),l ) .■>7a. w len an aii |ili(',aiit \'ov in^^nranec represents that tho risk has heen ad'eptiM) liy e-lher eunipa-uies at a rate n;i,ineil, when, III I'lcl, nil sneJi aceeplaniu! had been a,i,'reed fur, oi' d'they had rel'iised to renew a former policy on the same risk, e\ee])t at an adsani I'd. rat(i aho\'e that named, it woidd lit^ a 'm.isvcpi'e- si;iit'tfioii,{iud vitiate til.' policy. ( IO.">7.) (lo l.a. .Vnn. l!4(j ; 2 Dow. •Ji\-A: Civil Code L. C., ;^ 2-1-S.").) >7.i. \Vh Ml repre.-ientiLioiis, wlr iher (rz/i/'/zu/Y/'v; or p mm- ''>/7/, air nial(t with iiiLenI to deceive, tin' /'/v<;((/ vitiates liio conh;e'!, in a.ll easi\s, even t,hoiiu;h the loss happe.i in a mode not elfeed'd hv tlit; falsity. PitrHdl frmiil^ when intenli aial. i.s allv fatal; the test of ii(iifrrii/ of a partial I'r.uid k ilic eiju w recoLrni/e-' no ii,\''- saiii" as of the renre.seiiiation its-df. The la liiil iVau 1; has no scales to wei'.^h the de;.,'rces of fraud. (I'ark. ln~, ITii.'l »>7 I. Wiieii the in->ured allinns a fact which In- knows to he falsi', or di'C-^ not know to he true, if tho fact prove oiherwise, it o 1h> comiili'te, niiHt re.u'h tic suh- is a frnu'l. Tl;e falsity, t stance of the ri-preseiiiation. 2,1 .Mich. :i>!l : eniid 11: lo:! .\la«. ,V):{ ; 12 Hii.sti Ky Till ; HI (Iniy Af-i'i. ,508; 1 Sioiv K.| , § l.i.t ; I'l .V Y. JIH ; X V. Lifrf tiii) Co. /•. I'lin-nl, 3 Q. U. K. |i>:i, .'>7»'>. A^nicii a, ri'pn'.-,cnlatioii o'' an e.xpieciatioii, or h.dicf (if the iiHured, may he reasunahly construed a-; i'el''irin;_' to lii< i a- teiifioiis or his iu/onu'ilioii^ its intention, il filsity will \ aiiatt; the p.dicy; luit, when expressing only -d amtjiu-l'i raf n/ti n inn^ it is numaleiial. 1 t>i]miH're. (.'. 134 ; •> Uuer Ins. I4t ; 1 I'iilliiis Ins. L'ST, t74 ; :' .M.v \2:, 20 Minn. 12;:.. ■mhp MlSUHrUKSKNTATIOX. 269 M. fiTii. Wlicn fraudnJi'iit iiitoiit is iloulilfiil, evidciici; Lliat the iii.i-'<'r>-fliil result of mistake ov iii,i(I\crti'i)i'e, and ii'it of design. (41) Me, 20U.) »>77. If a n']iri'sental inn in- laJ-ic in any luii.h^ria/. ]ii)int, it will avdid llii.' imliey , and, if tin; ])(:inl 1k) not iiinlcriiil, tlio represenlaliiiii ran liardly in any ease lie liaudulcnl. ( AiinislfV Ins. 121. eilin_Lr I.'ird iM.UHlield.) !i7H. Iftlic fact misrepresented he on a mutter cdiieerniiiw wlii.'.h the insMied is not re(iniind to make any repre.scnlatiiriis, still, if snc.li misrcpn'scntations ttuid dirretly to induce the in- siir«M' to nnderw I'ltn svhci'(; he mi>,'ht not othcrNvisc do so, or to write at ,1, lower rale ol' pri'mmni, ii is a, uii-irfitr'^^riifdlioii ; nor is it iini"irtanl that the eii'ciinislance niisre])res(uit,i'd should aetuaily aifeci the risk. (I Wooil. F. Ins., ■'") l.",0 ; IS Ins. Law Jour. 2r.()) f>71>. It either parly, ]nirpo-„dy or thi«Hi,^li niisiak(., ni'j^^li- geuee. i!iad\ ertenee, or oversiijht, itiisrriirt scnf a, i'ie'L wliirli lie i> bound lo represent, tndy, the oih,T \r,t.v\y is e.\on. 'rated from tlie (.ontract, either wholly oi in pai't ; j'n!' it i-; an implied condition ol till- insur.ui'MM'onlrael thaf.it i'^ free fr'Mii in/sfe- j)fi'S'-,tJii,thtii, or eoncealnient, wh;;l,liei- I'l'.jidnlenl oi' through mistake. (1 ['hi!ip> Ins. H72 ; 4 Ins. La w .Jour. H'.O) ."iSO. The suhstaiitia! fnlsUij of a repn'seutatioii in ciiso.s exempi \\>>\n frtuui does not ahvays hmhIi r the contract ifliolh/ Viiid , as wlien the policy has alta(!lied, and the representation may In laLdi d liy a niihsdjucnt m-iif, the hreach docs not, by I'eiroactne inrce, render such a policy void in its e!itation canirit be explained by dillei'eiie«M)f opinion amone c.xperis, the, policy is voided. Any 'ininrfpn'soifatiuii (A' /ill'' or ntti'fr.st v()i(ts tiie policy. Civil 0.ili> t.. C. 2-,\ I ; S.: (J. U. <:. I'. 'JTH ; 18 (7, 74 ; 1 1 t'. C. Q. I?. 7!-, >J Ins LrtW Jour 7f:i; Hj .M.. HH ; 14 .\IJ. 295; 2 (tliio St. lei :i2 N V .111 ; 20 Una. Vii ;! ■: , l In.s. I,aw Jour. U-i , N. Y'. Code, | 13H,i. ;to MISliKPlCESENTATlON. n.H'i. A m'lxri'pri'Si )il(ifn))i nr emicialmuit I)} oini paity of a fact S|iC''iti(MlIy iiiquiiv.l alioiit. l»y (hi' other, th(ui<,'li not material, will rclca-^c tlit; Ijitlcr iVoiii (hu contract as if yuch fact had been material. (»i>({«1. t 8 Fns. I,iw Jour. 382, T'JO ; i I'liilipH Ins. 2sl, § 512. ilSII. It is the duty <)(' the itimu'ed to prove that the re- preseiitatidii was true ; or \v;i,'^ siUjstantially complied with ; or that it was positively or rfdativc^ly iiuniaterial ; or, if iiuUerial, that it was wiioUy di.sre>,'anled by the iii.sui'crs, and had no iiilhieiiee upon theii decisions. 1 .Siunnor ('. 0. U. H, 4:U : S Oii-ili, .Mils.-'. 82 ; 2 Ins, Law Jour. KJO UHl. In the Knirii.sh iiaml-in-Hand policy, S(>c. 1. mis- represeniatidn is made; to a]>ply only to that portion of the projierty alfected by the luisdescrijitinn. lli.Mli. .'58»">. Cnih/iti'iii of t/w //•'//. ■//. -.Ml fraud or iitti'iiij.t at t'liiiiil, In- I'ai.-'e SweariiijT or oihervvi.-o, shall ciins.' u t'ori'iime of all cliiiins iij)uii ihiy •■om- paiiy aixi i\\l< [kiIkt (478, 'J/'.) •"i.Hfi. Fifvuu, iM its ordinary application to ca.se.s of con- tracts, includes any trick or aitifice einjdoyed bv one person to induce auniher tn fall into, nr .Irtaiii him in an error, so that he may niiike an a;4ivtimenl i-dulrary tn his interest. It nia,v cun. sist in misrepresenting f)r concealing material fact.s ; and may be etleeti'd by words oi- actidu.s. Fmud is rarely founl on ihe part of the insureis; they are obliged to be governed b) the a.s.seriidns made and documents exhibited Ijy the insured, and n.it unfre(piently fall victims to their credulity, i^^tat. Ci)ud. Out., \\\\ Civil Code L. C, xV.^ 2487, lir,14.) 1 Chitty Cont. 52(, .-.29; Story Cunt., §§ 171, 172; 1 titarkie ■!:!•*; 2 (Irei-ii leaf Kv.. -5 402. •5'**T. FviUh), lidth in law and equity, when siilliriently proved and as('(Mlained, nvoid.s a contract ah initio, whtnher H\\('\\ fraud be i; -ended to ojierate against one of the contract- ing parties, or against third ]>artie.s, or again.st tli.> public, [l ]>enn, F. 1. Cases (,i7i) ; 5 Ins. Law dour, TOO,) Aw. i nt-ntion to violate, entertained at the time of entering into the connticfc, but not aficrwanls carrieil into etfect, does not vitiate. (1 Story O.C. 124.) Fit A I'D. 271 r rtMH. Tli(! /((/?/(/ of nn a^ciil, liy a iiiiHiupvcsciitatioii uiiirli is ciulxiiiitMl in llio (Hnitract to \vhii;h liis fiLjeiicy rciiiUs, uvoid.s tho (.•uutract. (VVcskott lii.s. xxxii., \xxiv., 2 Ins, i.;i>\ Jouv. 82l'.) J'.iil tli(^ imrly (■oiiiinitliii;^' [\u' Jiunil I'aiiiioL, in any (.•uso, liiniscilt' avoid tlie cuiitiact iiiul i)[frau. Circtinistaiiees of mere .sn.^pit.'ion, h^adiriij; to no certain results, will not !)e held to establish frninl, cither in law or wiuity. A mere intention to violate a nolievcan never have tl effect uf an aetnal violation. (14 Johns. N. Y. 4 ( lie ranen. ;3H7.) Frainl mn.st not be presumed. Fraud without damage, or damage without Hand, ,^iv(.:.•^ no cai.se of action. (.">Teini .U. 51.) Judge Cadwallader, U. S. C. C, Philadelphia, sj.eakin^' on this jioint said ; " ll ( iri^iuiiiice) is |iurt nl (lie i-'tiiniitfil .■security i)f coiiHiiereiiil ucullli, timl while, on tlic one liaiiil, friiuil i>r Irick f>l. Sii8. i»!>*J. S'»)'/>ri'/ /Va^J, yd. liy ihi.> feinli'iii'V III ili'i'i'ivt! ami iiiisleail dUhm.s, are jirohibitcd by law , as A\lic!i the uiidcrw ritiT may be mi.slcd nr deeeiveil Viy an inih'C lit nr (()i.ilak'nby tlif iii^iircd. («<>.>.) Civil Ci.io I, .('.,§ i:48H; N. Y. ('ivil (\)dc, ss. i;-IT.S-i;<33 ; 3 'iuir. I'.'O.'i ; Rar- siloii r. IliiViil liH. I'o, ITi [y. (.'. K I. SfKS* " ('i)iirc(il iiu'iif iuiil reiire>(ihiie)if, wiimi it avnid.s the polii'v, is of ihosc^ tads llial ii'iid In iitlhiHvi : wliiln ri:i>r(!fl. " .\ ; iiisiuMti 'i' is a eoiitrad. of a pin.'uliar nature, ' iiitiii'K' "U s|iei:u];itiuii,' and i>'(|uii inu lli'' utmost j^ood I'ailh iiniU iiurtii's, tlie sli.ylili'.st /mud is usii.illy siiliiciuiit t(j rh-fcat it; and laiyliiint,' that tiie law (ii'i'ins /■■inithihnd will produce that rcsidt : so thai il ili.is ikii. a,v;iil Mic insurod ihal l\\v suj^>- jii'i's.-:i(> fi-rt Iia|)|MMii>d ihrmigh niistaki' nr i^nnrani'i', wiihoiit J'raiid.d.'iit iiiiiMil ; the iiudiMwrili'i was dcceiv*'.! with, d, and the policy is ciiiisi'nu.-iitly \ md." I,.ir I \l iiHlii'id, .'1 iim-r. i;Mi". U'l'.^k.Ml !ii.^. .wviii. •"iO**. Ir is not till; rule that fiunJ mu>t lie shown by aHii'iiiaMvc testimony, i'loof of such /V"^'nl. .U4 ; I Hii! N. V 71, b\ Mj. 3J; J7 N, II 1-IU ; .i Ciimp. 319; I Uil. C. V. 44 1, 44;{, KKAUniTl.KNT SWKAItlNO. 278 5!>7. Fiilxr ftwariiu/ in lioM to idciui any attempt tn (lofmud the insurer iiy swciriiij^ intontioniilly, nii'l \\\[h InkI motive, to the existeufe of ])miioi'ty wliicli the insured hud never lost; or, not iicknowh iL'in;,' tliat which wus saved ; or, by greally uver- charf^'iiig that uhu^li was desUnyed. (iiWJ-H., ]•: tl C. I'. 19:! ; : IJonn. F. I. CiiHts ,m4 ; 4:1 I'n. 8tu, Sr.O ; 2 Hull N \ . 280. BttH. Any aUi'r»j>t at fraud in making a claim lur lo.sa voids the jiohcy nndei whieh the chdin i.s urj^ed. " Iri t'nci, il'tlK' (iliiiiitill Imd (Iclilicnitolv inirodncod iri(o liiw cliiim ono article wliit'li lie iu'vit f)UN.w(■(^^il■l|, w pliicid u|ihii miy one lie ihd not puM^esa B fniihliilciit iiml liil-e viihif, III' \va.s mil ,11 ),.iiiiiul law i-nlitli'il tu Kicover from llif ilcfctiijants." f,0 N. II, 2,i9j 2-1 Mich. -Ki" ; r llnsli. Ky. ln! ; Ulns. Law Jniir. ti4y, 608: 9 P. C. (". P. "6 ; I>i .inil iireliininary j)r"of presented by the iiLsiired to the insnriiuce cdiupany were false and t'iau(bilent, these circum- stances, 01' eithiT of them, would be evidence from which the jury cnuld infer such guilty hifvnt. both a.s to the fillinL,' out and tht intent to injure such conijiany. But the jury, in deciding' ihi.s question, must take into consideration all the evidence in the case, and must be able to lind from it the gn'il'y intcnl afoii'said, before they can convict tlu' insuicd. 3 In.-i. l-aw Jour. 79 ; T L, C. ,t. inn 18 f. ('. g I? .'4G, and aiilti(iriii(s(oJ)S) inipni . I,arocc|ue r. Royal Ins. Co., 2:: L. C. .1. 217 ; Grenier i< .Monarcli In.s. Co., 3 1.. C, ,1. 100 ; Thomas i'. Times & Macon Ins. Co., 3 L. C. J. U!2. ttOO. Where the finding by ajurywa.s for leas than Jialf tho amount claimed in tho atlidavit of the claimant: Held to be evidence n{ false swcanng, and to void the entire claim, unless the claimant can show that thi> diflereuce was the result ol error, and not of frai((l>i lent interJ. So, also, if the siatement of lo.ss, sworn tit by the insured, bo s 274 FKAIUULKNT .SNVi;,\lilNG. disproved l»y witnessi'S, In' is prodiidctl, iv. .Sta. 3M ; 7 U. 0.0,1'. 54R: '7 Ncv. 174 . X> .Mo. M«. mm. The following doci.sion in a ,snit wIhtm aison and fraoiiiiloif avearing v,\'YG jiUwK'd in definso (Ciuijinian v. I'oli.^ 2U Legal Times |N. S. | 3(K)) covers the giuniid of /Vi'^i/c/ot^ siviiii'uKj 80 eonipli'lfly lluiL it is given soiuewlial i ii cj:tiii>i(j. JMk. .Ilsiick VVii.Ks .said : — "Till' cotitnict of lire iii^urniicc in a I'oiitrnct to itKlciniiily nL'iiiiisl tlif con.''t'nu(-iiei*>i of u lirr tu't inlljiil. Ol ooiiixc, it tlic ll-^llll■ll Mt lire lo lii.i iiousc, he coulil not rt'U(jver; iliiU «u.'^ clebr. lint sii|i|hicv he nmdc u I'luiiii fur twice the aniiiiiiil iii-^iireil uml l^l^l, t|iu.-i neekinj; to put the (rilice ntlit.s iruuni III, HI tl e.^ult, to re(;uver iimre lluoi he wii-^ eiiliiliil id, liml, e cnuM iKit rceiiver wonlil be :i wiUj nl I'rouil, tiiid the euii>ei|uerue «us iliat h aiiytiiiiif?.'' <>().'>. •' Tliis wa'^ ii (lelt'ii.-e quite ihilireiit fnnii thai ot'willfn ga\e the go-hv lo the origin ul tlie lire, ami it amciiiiud lo tlii.i: Thai llie It ildtilerit ciaiiii u. one ui' pi r/ert tjoniljailfi un both .siden, and it wa,s iiiu^t ini[)ortaiit tiiat -iucli g joud taitii >huu d lie niaiiilainei It i S llll)lll,S.1l ■xiiHid policy 7(/ aiidZ/vM/'/ in the ch-iiiii, tlio iDMire forfeitei ill ell ini wiiatever ti|K.)ii the policy iicml- iiig liiiri^iiiii , ami wliiih, if i nuiiniiniciitivl, would ti'iul ilincLly to jireveiit tlm iiiiilLTwriLtT t'lum .'iitering into the cniilract at all; ui' woiiM imlucti him tu (loiiiainl a lii;^luir ratti of iiiinaimj u|inii till' risk. I rhil Ins 077, .'till. ;UI ; Bniiyon FiiH, 2il. I'll. n ol" what is falsi'., and it is to bi^ cousiilcred, not with refori'iico to tho «vent, but to its nfl'oct at tlu; tiuii) of niakiuy thu cuntiaut. (Marsh. Ins. 1548.) Tin' uon-aiiswiTinga spocdiu(iiiiistion would amount to conctnilincnt, if llic a]iplicant kiu'W (if thi'. fact and was able to ansW(!i . Ijimdou Assiir I'll. r. MaiHoll, ;> Littleilile, U ch., p. 3uii ; Laiii.iuliiro Ins, Co. r. Clmimiaii, 1'. C, 7 U. 47, 13 L. (' J. 30. 007. The yriirrid in'lneiples alut' df the risks iiiLonded to he covcied; and lluit each, in his own comniunjcations to the other, is bound to state tlie exact and the whole truth in relation to the facts that he rejire.sents or, upon inquiry, disclo.ses. ^lO^l.) 1 Illack. K. 4«ir., 5fM ; Aas^vM lus. 20:) ; .Mny Ins '.'lo , Civil Code L. C, § 2488 ; Wilsi'ii I . St.it.; Tns. Co., 7 [,. C J. 223. OOM. The giiirral, rule i^^ that it is the duty of the insured to comnuiuicatc all facts niatcrial to the risk, and whicli are not known or presumed to lu; kiinw n to the underwriter. Those fact.s only arc necessary to be disclosed whicli, as vvxterld to the ri.ski?, considered in thuir own uatnres, prudent and e.vpe- rionccd nn.lc'rwritcr-, would deem it proper to consider, and which would alTect the mind of the insurer in either of these two ways, viz. : — Fird, as to the point whether he will insure at all. e> i>. 'f 1# '- IMAGE EVALUATION TEST TARGET (MT-3) 873-4503 ^v &^ \ \ % v cS^ C/j 876 CONCKALMENT. SfroutJ, as t. I(i\V;i, IHCI ) iiHK Tlic rruitcrloHhf nf n .sii|i|)ri'ssititi or {■niiccahiu'iit, witc- thcr frainluliitit or not. in alouc siiflicipiit to voiil the iiolicy. (044.) r-'5 (oiiii. ."lii. i; lv'(,l.. 1,11 L'Gi;.) oil. \\ iii'jterinl (wrciiinstniiiTS, known to tlic appHiiint at the tinu' of in.snmnce, are Hiip|tiv.s8('(l or oniitLt'd hy him, through acciiient ur 'lesi<.Mi, tlu' polic} will U' l.reachtil ; nor is it of any iiiijiurtnnce that tlu' tiivunistana's .siij'j.ivfsfd or oniittt'd, or tu \\iii«'h tile t'oiu'«:aliiicnt mlalcs, prove ai'tually not to alVed the risk; nor thai the si)piires,-iit)n or on)i.•i^ion should hajipen ly nii.stako, without fraudulent int«iil , iln- result is that tlu- under- writer is decoived ; hence the pohey is void, because the ri^k run id really diihrent from the rit^k undertakt ii and intended to he run at the time of the aLTieenient. < 'r, d the fact suppressed ntlates to a portion only ot the floods ur suhjeets covered, Imt yet <, idiaiices the risk u] oji \\\v m liole, it is riiuialvieni in redpect to the whol'.'. I llAnd> (>. '.'08 ; 'i Rob I,i». 2rtti, '.JA Conn. 51. As to expogjnp hiiiMiiijr?- »*(■ M Barb. N V. :s.. ,;. li.ll .\ V. Ism; is .\. Y. K. :ii'); I AU-ii AU.s^. 305, ;WH, 53 Me, CO; II I'. Ci H. 1.!'.' iO T. i;. 0. I'. 447 ; Civil Code L C, i 24RS> <(!!!£. Any eircuiuslanot .s evidently .md matt liiUy eidiaiHiu:.; the risk of Hre, known to the ajtplicuut at the time of insuring and iiol .so. or presumed to he so, to the underwriter, and •<{ whieh he is not hound to inhnin him.self, or to take the risk of, must he diselo.sed, Liumgh iio iii'|uii'v is made respecting it. I'Hik. li.s IW,-. ; 1 Philips Ins. 2s| ; jf) Ciinii r.l : I Ilttiidy, C . 2ox jo ^fo. \i'>. 0. (iiunt Ch. I9H: 4i 1/. 4IM ; IS Md. '-iu; Ooodwin I l.iincafchirt; I At L. his I'o., Hi L C J. -'9S, Is "/ OlJi. The underwriter is under corresponding obligation to withliiiM no mloiniatioii u, the injury n( the insured. (ilOH.) ll IMiil. Ills. :{(»0 : S Howard. I'. S.. I'M'i. ) Ol !• If ilie insult d l»e iuduued to take out insurance by au CONCEALMKNT. 277 ^^^^^^^^^^ attenipt to Inirn liis own or an uiljioent house, the dnstnif-tion of which woiiM hiivo li'i.stroyetl his own ; or, if by riuuors of thn^iits lo Imrn his own promisos, and conceals these facta from the unihirwritor, he cannot ro.jovor. f.Ttiiiriton mS; 10 F'ick. Mass. 535: jriConn .".1; 17 Wend. N. Y., .150 ; 2.! Mii'h. 14() , y (fray Mass. US I'er contra ; Oampbull v. Vict. F. I. Oa.,4L. N 7a. ntH. Tlie conccjiihncnt of the fact of :i fire havin<^ pn?viou.sly occurred upon the premises of the applicant, even though the omission he tlirough iuadvcrteiico, and without fraud, vitiates the jiolicv; but if eMout>h lie made known to put the underwri- ter upon inquiry for more, and he fails to make further in(|iiiiy, the in-^ured is not bound to force his knowledge upon the company. 25 Conn. 51 , 12 La. i;U , 10 J'lok. Mass. 53,S ni«. Hut the S. ('. Mich, (22 Mich. R. 146) ui«m appeal : " Held, that the disclosure of the fact of the fire and of his reasons tn fear danger from incendiaries was material to the risk ; that it was not competent to sulimit to a jury the qiiestiou of materiiiliLy ; and that it was no deiciise that iufuriiuition was given snllicient to put the .agent of the comi>iViiy upon inquiry." olicy void. (Auth(M'itiesasaboV''.) Such knowledge, however, if» never presumed, hut must be i'stablishe.d in all aises by positive evidence. ftlH. Noi can it be -.aid that a ((Uiceuhucnf is mufi I'ial^ utile.vs the court or Jury is satistiod that a di.sclosure of facts con- (;ealed might reasonably hiivc induced the underwriter t<;> decline the risk or tmliance the premium. 1 Phil. Ina. 304, 15 L. C. li. 1 ; 2i U. C. Q. B. 214. 01 tt. IntelligeiKie of an additional viatcrial fact, obtained by the applicant after hi.s apjdication and before the .sub3cril)ing (if till' policy, mu.st be communicated to the underwriter by tiie earliest and most expeditious usual route of mercantile coia- muiiiciitious; but duo and reasouable dili^eui^ will auilice. 278 (•OKCEALMENT. Oiuiftsion to use the same etlect as actual knowledge concealed. 1 FLil Ins. 283 ; 8 lus I.hw Jour. 71« GiSI* A representation Drcouredimfmf hv an agent for i>rocnr- ing insurance i.s that oi' lii.s princii>al, tlioiigh not known to hiiii^ md hai the .sune ellect uikhi the pohcy a.'j if uuide by audi principal. (1 rhii. liw. 2W.) Ad to what is nut concealment in law, ( >r, K.N'OWLKTMiF. OF TIIK UNltKKWniTKR. ({tits. The underwriter 's hound to know pvervthing that is open to his imiuiry, and nothing need be di.sclosed which he waives heins infornu'd of; but lie is not bound to si-ek el.-iowhere fur information winch sliowid be gi\en by the iiKsiiivd. Emerigoa Ins. 627, 6;i7 ; 1 llliicli. It. M)3; Tark lus. 184,185; N. Y Code « 1.383. k wi'liotit incjuiry, relying on hi.s own knowleilgi', there uiust exi.st something unu.smil to entiance the risk in order to vitiate the ]iolicy. 29 I'a St rsi , s llowHnl U. S. 2:!.') ii*2!i. The repre.seritatioiis of the insured are immaterial; tlanigh withholding information tending to increase the risk wiiuld be incompatible willi good faith, and wmild void the contract. 10 I'Uk. .Mftss. ."i.^a , () Taunton :VS\ -. 4 Ins Law. Jour. 208. iV2i%» I'nderwriters are )>resiini^i:r/rn of the l)aiticula] trade in.sured ; and the.se accordingly need not l>e wi CONCKAI.MENT. 279 repre onti-'d by the iriHUivd. (5J07.) This, liowovor. will not exc .30 tlu' itisuiud from rt'|tlying to tlic iii<|tiirit;.s nf tlu' muier- writtn'M ill ix-lutiou to the fiicis to wliioli tiiey cxtiMul, such ini|niry iiiakiriL' the answer matorial (3 Burr. 1905.) «a7. In ihc r. S. C. C, l>ist.. of Ohio (m the caso of Washburn /•. Wi'st. Ins. Co.), it was held that "any 8[M!c,ilioiilly inflaniniabl(! or hazardous condition, due to the presence of tlour- d\Ht, must be jiresiuued to Ik* known to ihf insurer, if nii iin'idont of llie busme.s.s." The risk was a llnurin]L,' mill, and tlie lo'-s was by explosion, or so presuuied. KNOWLKIKJE OF THE INSURED. H2.S> Knowledi^e of the insured or his agent, of inater'nxl facts alleged to have been concealed, is never presumed ; but must be established in all cases by positive evidence. 4l!£1K (Sii/^'/*ct'is not eonccalmciu ; or, as the old batin maxim exjiri'sscs it, *•' Al'nnl e>tt irUire, tiiiiul laccrr'" " It is (Hio thing to conceal and another thing to be silent." llenco the insured UNiy be innocently silent ujion many matters. 1 Handy O. tos \a (Jranl's cham'y 77 . 41 Georgia R. 060. Among them the following : ({30* It is not heltl incumbent upon the insured to describe his property ])arti(udarly as to the material the building is constructed of, to what use applied, or how heated ; or re])re- sent its situation in respect to other buildings ; other insur- ances or mortgages, proriili'tl, that there Iw no extraordinary circumstances in the case, unless iuc^uiries are especially nuido in regard thereto. , 3+3. See 11 I'a. SUi. 393, cited J Benn. F. I. Cases U)8, per cotilra. 280 CONCKALMENT. iilt'i. The iiisiiruil is not iv(|uin!d to coinmuiiif.'att> to the uink'iw liters iiitollif)[onco known, or jiresiime'.H: ! Hurr liiOi . 1 I'liil. In«. :ii>4, :Vi5. 4(it;{. Facts known at the j»laoo of business ol' cfV/zt;/' party to the pohcy art', prima facie, jMvsuint''» , 1 Itn. I.nw Jour. Ill; Civil Code L. (\, J 'J4st>. 5. The insured is not bound to oominunieatp his own conrlii>ions, .specuhitions, ajiprehensions. ]io)ie> or fears, as to the risk. His duty of eoniniunicHtioii is hniited to fnd^. Nor needh>: sl.ite that other unil<'r\\riter^ had decliiu'd the risk; nor what Wire tlieu' apjuohen^ions or opinions respecting it. n he Mib.si'vibed the jiolicy, but all the kiiowU'di^'e and information he had Hulixetnieiitly acquired. The cancialiueid, whethi-)' from fraud or act ident, of any circumstance then known to him, material to the ri.sk, has the same elfect on the validity of the contract a.-^ that of the original insured. (14I5({.) 1 ^ar^.on3 Ins 'J'*!* ; I Philip? Idb. 314 ; 17 Wendell N. V. i5T ; K< La. Ann. 246- Olt2« The oliligation to make a tull disclosure is even more extensive than that of the original insured, for it einbruo*'s facta in respect to which the latter is permittfd to be silent ; such, for instiince, a.s iuay affect the moral character of the original insnivd, provided it has, plainly, a bearing on the risk to bf re- iusiu'i'd. out. Fai ts having come to the knowled'^e of thf insurer that til.' insured V)o re a bad character; that his premH(!s had been several times destroyed by tire when fully insured, the insurer then re-insured without commumeating these fact.s to the re-insurers; the sujipres-^ion defeated the policy of re-insurance. 2 Am. Lmding Casts 45S , 10 Pick MasH. 535. MATKKIALITY AS rONNKCTKIi WITH UErUKSKNT\TIO\. in I. The l;i\v iuijinscs iiitnn (ho iuHiiU'd, us a jiii'limiimry duty, in the iiaturc of avondition precvihnt, the »lisrlii. ( deehiie the risk, or write ii|.on it only at an iulvanced rate of preniiuni, it is deemed nmterUil to the ri.^k ; and whatever may be tlie form of e.\])res.sion used by the insured, if it h, ve tlie effect of imposing uj)on or misleading the in-ui't r, it will be nuilerud. and, on due proof, void the jxdiey. («I«.) 2 Dow 2i;:! . 2 Iu9. Law J.mr wo;) ; I Benii. P. I. Oascfi 701, 705; 10 Peters D, S. 25. 017» Mdtrriitlifij may result as a necessary oonsecnietice from tile fads; or may depend upon the testimony of witnesses, or niav be ileduced from tlu^ rate of premium , whicli, if proved to 1k' much le.ss than prudent u-ulerwriters, havinir a knowltujife of the ficts, would liave chaiu'ed, wnuhj be deemed sutficiput evidiMice. (»'5I7. «I2.) 4 Ins. r.iiw Jour. V..:i : I'Hrk Iiis. IS.'i ; 1 Pbilijw Ids. 281 ; '.T- Conn. SI , 1 Mtiiulj O. 2<» ; 20 .Mo. 125 ; 47 id. 403 ; 18 Md. 20. <{|.H. The doctrine of iiniiititerialit>i doi'a not aj>]dy wlien the ie)/re.seulation is a part of the eontract, ami espeeially when it is in reply toa direct ijuestion. If u fact usualiii ininKilrrial he si>eitjicall>j i iiiiitirrd ahoot h// thr iiLfnrcr, if v.'ili be con- siilcred i.f< inaferial. Any substantial mis-statement of such fact '\ould void the policy ; for it is held that the covenant in the apjilicjitiou of "a full and true exposition, etc-, etc., t>(> far as kiioivn to thr aj^pHcant, and material 'o llw risk, must be NUTKIUAI.ITV, 283 cnnstriic"! in cnniK'ction witli tha siHrijic iiKpiirtf; and tliat tho iiiititTwritiT, It} nmkiiis,' a #/>nvV('c iiNiiiirij, slidwcd tlmt tho an.iwfi Ut it was u-j^anlnl a^ nuitdial tit ihu n>k , ainl ilie iiisuro'l mnhl not U: ln-anl (in cnurt) to siiy it wiks iimnittrrhtl." (•to I. am.) I'.iii a ilisriusuri! wuiveil i.-t an uilniissinii of uuniatidialily. 5 Hill N V l:i2 ; rurtii ('. (J. U. H. lUn . 13 (Uiijr MaM. 139 , U . /. 4.'.ri 1 Pliilipst Ilia, 4Hl, '.".tX <(I1I. lntolli<,»onc<; and nnndivcl facts arc "([ually nmfi rial to Ix! rcpivsentvd. A siupitrcssion or inisreproscntalinn nf tluMn will tlt'feat the conlract, thtint;li ihiTo did not exist any cir- iicrtiv to dt^teiniino tho underwriter to cmnstaJife.s tend Mi;: < dt'ilint' the risk, or demand a higher rate of jireuiium (st iimired are Diatfrial, and any e.iine,eahneut or iiiisrejiresentation thereof woidd void the jioliey ; while the courts of New York and Mivssachusetts hold that the intttiie of such interest is not mate r in I ; ami, // th/; iiniienvritir Jfi'iu such iiifoiifiinti(ni material, it is his fmsi}i(i.Hf< to nuike sperific in, the court say, in the matter ot misrepresentation a- to his titli that— " Having gucocpded in deceiving the comprtiij as to bis titli', tbc a^i.surcil Imd a ' siri'tig U'iii|itati(iii to u[ |)ly ilif brmiii witli liis own tinnd.' IIis iicrdoniii ctiiiinctfr nmtti'ioii not. The company m.-jiiiid \yi inlire.^is, and imt \ua juincii'lt ^, ami thig they had a right to do.' 1 Sunt'. r.51 , to rick. .Mass. 40, 5.VS , is (,/. 417. 41H; 1'.! M'end. \. Y 5it7 ; 2 I'eters U.S. 2.'i ; il. U. S. C. .'>07 10 iW. 4;o ; i:) Shipley IW; 1 Giltimn TM i 2 Ina. Law- Jour Hl:l; 3 »,/. 437, H',t4. li H. iV.i «*ll. Th dt .f skilled .■h of lie (.'vulenee' ol slvilled partU's in the |H.*culiar brancli ot husiiie-ss at issue will he necessary for thr proof, though the fads are for the jury upon the evnleiiee. (I ItJJf.) 0*^2. The hiirden ni proof of compliance with a reprts- .seiitation lies with the insured ; hut the proof of the materiality of a re{)resentution lies with the underwriter, especially wheu such matoriality depends upon the evidence of witiies-ses. INsriiAHIJ-: INTKKKsTS. (t>'t!l> Till' insiirnicc contract Ih (tiu; of indtMniiity simply : it oppijitjiiiis only to lliM |K.M9"ii or juirty riuiiii'd in (In policy, iiiiy ilic insurance ivh tliu Huhject of the risk or piTil a),'uinst w hiili the owikt i.s jtrotcctcl. flO^. ) 0»!H. it is not :i contnict nnuiing witli (lie pioiiurty, reui or fiiatiil. Idrniinj^ tin- snlijt'ci of tlif iiiMiriiiici' , it is a porsomU contract 1^107 ;• and has ln-nn 8o liuM frouj thoi'iirlittst days of lireinsuranct.'. In l'2~. Lord (.'lianc»)lli'r King, in lh« tirHt regu- larly riportt'd Urt' insnranoi* cfwo (Lynch v. l)ulzidl, 13 Brown's Pari. Casus, 107), said : "Tlii-Hc |M)lu;ie-. liw ui\ iiiinniiict'!* < be iiioiirctl nor i|u mu(!|i in.iiii'uiKfH tittiicli nn {\w r< with the iicrcoii iiiKiiring a^rainsi snch loss or (l.iitiHi;'' a-* ilicy may Hu-taiii" <»>V>. TImi insuranct! .'onlract is thus an ohlignlion to make gof)d til tilt! party ri-ally insurrd cvciy loss that Af may sustain from the jterils iii>iiiril iii,'Hiiist, acvordiiiL' to tli>f natnn* ami ttu'iiis of his insuraiic*', nnd not an oltli^rfition U> niakf good ovtMv daniagf that, from tin- .sjuih- causes, the property covcrttl hy the insiiraiioc may sustain, without regard to the ownei'ship. (lOtt.) Marjli. Ins. so, 119; 'iAm L"ad. CH8e.s 40^, note liitiiirable [iiteregts ti Hum- phi-eys ITi. ; 18 (.Irant Ci'y. 280, reversing 13 Grant 337; s iJ 562.; Miiligan v. Eq. Ins. Co., 1.; U. C.Q U .!14. nan, Ev:'r >jiiuf the iiH'mnra''Ii.; di.'cisinn of Lord MaSskikld, putting all end to wag'rr policies, a century since, an inimrahU interest has been a condition piec.-deiit to all insnranre, and such inti'iv'st must he at risk. (♦»0.) (1 I'liilips Ins. lH(i.) 6»1JT. At the time of insurance the proj)erty must be in existence, and not on lire, tind nf)t at tliat moment exposed to a dangerous fire in the immediate neii.'ldtorhood withiii the kiiuuledire of the api»licant. (HOtt. .H07.) 2 Diitcii. N. J. 2(jS, alfirnie'i in a|.peal, t Dutch (>45 ; 21 Karb. N. Y. 311! ; I M. C. ti4; 12 H ltUcl<. .143; H Term l{ 16 n 3 Curnp. l.'iO; C (iniy Masn. 214; Emerigon ttia 621 ; 2 Vniius Com. !i3 ; l I'liuips Ins. 1 1. tlu' Icj^'ul owiifisliip, linl jH.sMcHsiii}^ ii value that may 1m> jieciimanly luiu- imlod, iii(| of Hiidi a nalure that it may Ih* dcstrnyeil, loit, ilumai^'eU, tliiiiimslitHl, nr inli'irejiti'd tiiivclly, I'V tlio ri^k iii>iirts4 when! none existed for itw |»ivvtiition. Hence, an 'ihhh riO>l>: iu.tcirnt may b.-. ilc>ii.'nati'd as any existin;,' leLjal or e(juiUil)lt! e.slate or rij^dil, alisoliite or eontin^eiiL, which may be iinniii and int'juilicially atl'ectcd, or any respon- sibility whiili may lie broiiLjlil into , /. , N. V Code 5 K!.;ii. 1.170; 32 Mil. 4'.M 2 Pick. Mii.«. 24:»; 2:^ (,/. UK, Hum I,:hv Jour 7:!7 i i \i<'H7, 8H9 ; 'Jivil Codi- Ii. C , 5 2»7'l ; 7 U C. C. P. ,14.S ; If. U. C. Q. B. 314 , 13 Griint Cli y. :!TT • Con. Hi U. (J., c 02, J 7;< ; c t;8, § 27 ; 14 L. C. J. 20;i, Mil. H!i%9» Su''.h 'nittrcut must be in existence at tlx! tiin(> of the los.^ upon the subject covered, as well as at the time of elfecting the insuraiue;but it is not neces-iaiy, in the absenci- if any speoihc condition in tiie [)oliey to that ellect that the niUri'si covered should be the same, either in quantity or luiiuic, ,ii the time of the loss, as when the contract was nuule. lleiie . the intta'! ase of loss, ii his remaining interest is not one which the pcdicy reijuires to be sju'cilieally descnlwsd. (Ii I'lek. 24'.> ; 1'^ ><(. 418. and authorities fii.tii red may exist without any estate or interest in the corpus of the thing under protection of the jiolicy ; as the guarantor of a mortgage-deed jiersoiially liable for its payment; so also w-ith an insurer; but the insurance must ctiver 28(; INSl'KAIil.F. ISIKUKHTH. (he I'litjicrtv iiioitj^aj^cil, ill wliicli tlu' mnilj^a^or iiiusl Imvi) an iiiii h >t All iiisiiruiKv cotiiixiiiy c^iiiiiol ni.siire a . V. :u■^ . 6 III, l.iiw Join 717, u I,, c J ;ioi,2ia. l,IKN.s 0li' ihhfsl will exist, m omc of Heni*, until C'ViTV limit; liiis Ihtii il'iin- wliidi iiiiv lif iiei'i'Msiiry l'al t'flccl iiiiii vulnlity (IJHO.) 1 Mnson l.:7 ;i nl. J'..' ■ 4 Inn. Law Jour <»l lUnk nf Mimtrt-Hl i llutrnur, S Out. n l^i, 10 (lul A|i|.. R :>!».! . Siiini- r. Woriwick, S. U M»y, IMH,'!, Ml'ST l!i: LKdAL. 0t!rty hy ri'u.snii of il.H U'liij.' iiii|ilir;iti'(l iii an illeijtil Trmlt', m uiiplii'd to an illfijal use; or which, airoiiiini,' tn tin; law.s of tht; country wli.T<' the cniitract is nuulc, ii i.s iiKi'lf criiniiiiil lor tin- owner to hulil, such contract is "(>/'/, uikI I lie owner has no UtjitUif ia- minihle intfiYst , for thiuccjin 1"' nuinore tliirrt encoiiraj^cmcnt t<( the viol.'itioii (»f liiw. than ;i rontiuct that .secures iiiilcrnnitv to tht' t iiiu.S';reshor. ,wo2.:i. Hit I. So :ds(» .'in act sulpjt'ct by the law to pfiiialty, llioui^h nut innliibilcil ill direct terni.s, is iUrjitl. lint the mere fai't that an unlawful business wa.s carried on in a Imuse by others than the i.wner, mch as - M.iHt. jmh , !i hii l,«w Jour. II "ii tlif iitlur hiiiiil, it lii> l'»'<'ii litltl " (hilt ilic iiisiiraiicc attll(■ll^•^ only tu iiioiM'i'ty. iinil llio viHliM insurnl HpiiiiMt nif ikiI tim (;i)iisf«|in'iii'('« of illeij;al^ iicls, Imt o| .icrnltui " to ilir pro- l-Tiv , ]-: Mi. I,. 124.) 4MHt. Whciv ii iiolioy ri'(|nii(!y tMifoi'ii'il, or (III iiisiiniiicH' will not hi' siistaint d. 1 Ariiuiild Ills 7j;i , I, Mres \ Wt'lhy '.'Jl. I lliiinty I'n. 5.'9. OTIIK.If (OU ItOUHLK) INSUH.KNCB. 4S<(.H. A>i )nany .-n'Vi'val ami distinct insurances may exist n]K)n the ^iaIn^' iirojierty a.s thcfc may he scpaiate innnrnhhi 7/j/c(".s/.wcoiiin.'ctid thii'cwitli, without crrnting " other insuianoi' '* neco.s.sitating eontiihtition. (1MM.) (lio l'. ('. g. H. 4i'0 ; 3 i;. C. ('. 1'. 4(17.) .Some jmlicies hold oil othtT insurance on the saiue .siilijout, hy any party in interest, as co-insuraiice. (I.HIII.^ For authorities see 1M>0 et sc' description in th(! policy, a party brt it. A pledge always imports a transfer nr delivery of the thing ])ledged. He also has an insurable interest to the full value, so long as the light of redemption remains. Joiim' Biiilmeut 117; 6 Ired. .V. C. .SO!), Parsons Cont. 591; I Vcs. Ch. 278 r 2 Taunt. 2i;s ; 15 Mlss. 389, .534; 4 Deuio N. Y. 227 ; 1 Stock. N. J. 667 ; Civil CodH L. 0., ?201«. <>7!{. Vkndee: Any int(>rest, inchoate or equitable, ludd under a valid executory eontract, and while such contract exists, is an insurable interest to its full value, though the purcha.ser may not have obtained posses.sion, actual or constructivt; ; pro- ridel, the destruction of, or injury to, the property would uot affect his liability to the vendor. If he has paid the purchase money, or expended anything upon the subject insuriifi, he has a direct insurable intert>st in the nature of an etpiitable ow nership, without regard to his lia- bility to the vendor. A purchaser, liable for the price of goods, has an insurable INSUKABLE INTKHESTS. 289 i ■ ; J' ' ! ■ I interest in tlioin to their full value, after us well as hefore they may be stuppeil in frant^iln. (H ; 77 id. 65; 8 Ins. I. aw Jour. 134; 1 Philips Iiis. IW, 1 1'i, and auihorities cited , 16 \na. Law Joiir. 129. 6T-I. Dkbtor: A debtor has an insurable interest in the subject umler execution or other jutlgment lien, as long a.>^ the equity of r('il'MU[)tioii reniiins in hiin-iiilf (G7I), or if there be any rem lining interest after payment of the clel)t. The attachment ; 10 Ins. Law Jour. 227 ; 7 U. C. C. P. 215. 234. . ©75. Reversioner : A reversionary interest is a vested right or estate by o})ei'ation of law, and not by deed or will ; hence, one having such an interest in projterty, after some ])articular estate is determined, has an interest iu the preservation of such property, whi(!h is insurable. 2 Grai. Va. 408, 3 Ins. Law Jour. 371, (t 20. 070. Devisee or Legatee: Has an insurable interest in aa estate only after the death of the testator. The bare possibi- lity that a right to property might hereafter aris*;, cannot be con.sidered an insurable interest. . , An expectation may, in some ca.ses, be insured against certain risks, by a policy particularly specifying its nature. 1 Arnould las. 262 ; 2 Bosw. & Pull. 323; Angell Ins., § ?8; Cowper R. 693; ttV7. Partner : A partner in a firm, when equally interested with his co-partner, and largely iu advance to the partnersJiip T S90 INSL'RAISLK INTKKKSTS. conoem, has an insuiable inLtrest in the LMitire stock to its full value. (i:i7«.,i r.! Miclj. 2V2 ; 2 ('nines. N. Y. 203; 2 Johns. Caa>& 329 ; ir> Wcud N. Y. 187 ; 4 Cow. N. Y. V2 ; 2 l>uer Ilia. 22, U. A ■storkhohlcr, ill a coifxinition, hns no insurable intprost in tho iijiil or personal lU'operty of siioh corporation, as owner. (20 Ohio 174.) r>ut having a 'lualitied intcre.st in the property of th(! ooipoiation, he may insure the eorjinmte ]iio])erty, for his own lieiiefit, to ihe extent of Ins interest as a stockliolder. (31 Iowa 404.) ttT.S. A AIauiukd Wom.\n, Femme Voccvt, owning' the fee to premises, may insun.' a l)uil(ling lliereon in her own hhuh:, not- vithstamimg tlie iact ihul her hushaii'i lias the rii^ht, during' mar- riage, looeeupy the jn'operty jointly with h'r, ami has a life estate therein. Nor will n policy to her, npoii her pro])erty, he ren- dered void by the .sa'e of the projiertv nr ;i jKirtioii (jf il liy her husband without lier cou.seiit. (OOJJ.^ .'■•T Ills.S;^; t;3M(l. 490 ; iif) il. 24'> , 17 1-. J. 27. M < ' l{ I, S. C 33r.. Tll(> riglit of nmirifd women to Imlil iiroperiy will U- conliullKi Ijv Uh- l.iw.s of the rpspt'itive jiittU's. Civil Coili^ L. C, 'f 2472; lioupsi-iiu i\ Koyitl liis. Co., M. L. K. S. C. ;i:"5 u 071). Iiitcropt without ownorship as coiuicctcd witli jroperty tlii(>ugh (i n)uit::afro or kIIi'T lien ilureoti. .H.) 2 Wend, ,104 ; \C. Peters U. S. 495 ; 5 Pick. Mass. .13 : 21 U. C. C. P. 291 , 8 il 415; 25 r 0. Q. H ii)o ; lOL. C. ({.8; 5 Johns. N, V. 2,')S; l(» , /. 741 . 12,,/, 146 ; 4 L. C. J. ,J7 ; ../. 10 L. C. U. 8 ; Civil Code li. C, 5 2671. OH'i. Vendok or Seller ; Who has an equitable interest in IN8UUABLE INTERKSTS. 291 the property sold to the araDimt of the ])urchase money unpaid upon the contract, or as kiny as he retains the legal title. Such interest is insurable. Propeity sold, and left with the vendor as collateral security, gives such vendor an insurable interest in such property to the amnuiit of his demand. {i\H4t.) Hi Wend. N. Y. 385; 1 Philips lus. HO ; 16 Ves. Oh, 3'iit ; Iti Io3. Law Jour. 129. O.HII. 1 11 most cases, the ))osses;ii(pn of the corner is considered that of the vendee ; but when goods have been sold on credit, and delivered to the cirrier for transportation, tiiey are still subject to the vendor's right of stuppage //(- framUio — ,in extension of the law of lien — at any tiin ) b.jfore they come into the actual possession of ihe buyer ; and the vendor becomes reinvested witli his urigiiial right of po3se.ssion, as a pledge ior the price (jf his projierty. (roods in a warehon.se awaiting delivi-ry are still In IruiiKifn,, and the vendor h.is an insurable iuti'.rest tlierein. (1311.) 1 Llo^-a k \V. 10(1- 1 Philips Iiia. los, liij; 12 Pick. .\Ia«. 313 ; 8 .Mees. & W. 341 ; 2,'> Wend. .V. Y. lUO ; .Story Coiur., ;> :,\'' ; i ll.iU .V. V. .Ui . ;! .\Iee3. & W. 37.1; Oliawit las. Co. i'. [.,iv, k L, ltn. <"o., '.'& U. 0. Q. B. 518; Gill v Cinadii F, & .\1. In3. Co , Cliy. Dlv'n., Ontario. O.Sl. I'LEixii'.K, PwvNKK : One who has made advauccs upou property has ;i special pii'[>iirty in the iileilge, and is entitled to exclusive possession during th > tiin.! and for I lie objects for which it is pledged . an 1, bj.ing responsible to the plelgijr for the proper custody of thi: prop;M'ty pledged, he has an insurable interest to the amount of his advani'.es, interest and charges, until the property is redeemed Story Bail, § 290 ; .". Duer. N. V, 207 : 16 N. V. 397 ; 15 Mass. 389, 534 ; 4 Deiiio .N'. Y. 227 ; 1 btockt N. J. ('07. una* OitEKiTOii ; One having a judgment or other lieu upon the property, as security for del»t, has an insurable interest therein. S(.T. A- R. Pa. 10:i ; 1 Philips In.?. 213 : 14 Md., 285 ; Civil Code L. C, § 2571 A creditor, merely as such, has no insurable interest in the property of his debtor; but u creditor to whom goods are as- 292 INSURABLE INTKKKSTS. siijned ascolliitciol security has an insiirabli' interest in them to the anioiini of his ilobt. 11 PaiK'"' Chy. lift; 5 I'ick. Slnat. 3^ : 1 Unll N. Y. 84; Clark v. Scot. Imp. Ins. Co., 4 a. C K. 1(12. Whcnguocls are consigned hy ailebt(>r with orders to eonsigiiee to pay the proceeds to a creditor, .such creditor h.f the iiisuf'nict of prujierfy. A party having the ri(,'litful possession and use of a thing under an agreement to pay all losses ami rejiairs has an insur- able interest commensurate therewith ; bid, the mere n.se of pro|)erty is not insurable in the name of the uon-owuer. (^lOOI. Ilt2l.) 1 Philips in*. 216, Itunyon I/is. 1st Eit. S, 10. IS ; 3 .Mass. 133; Kf iolicy. (1 IMiilips In.s. 212 ; Vt I'a. St. 198.) iHyj. Tenant for lifk, Ccsfui qae vie : Or, a life interest in property. A tenant for life has a freehold interest in lands the duration of whieh is confined to the life or lives of some particular person or persons, on the happening or not ha]i])(miiig of some uncertain event , such interest is insurable, and its value, in CAse of loss, is to be estimated by the ordinary lift; tables. ?. Grat. Va. 408 ; 30 Me. 414 i Waphbiirn Real Prop. 7, 88, !15 ; May Ins. §85 ; 3 Ins. Law Jour. 928 ; 4 «,/. 611 ; 7 id. 032 ; 2 Black. Couim, 330; Caldwell v. StadHCona lua. Co., II S, C. R. 212. Wiumv'B DoWEU Intkrest : Power is an estate for life of a widow in the lands and tenements of her deciMised husband, and is such an estate smd interest as she can hold ami enjoy for life, 294 INSURVItLK INTERESTw. or, nt lier option, roli-aso antl (lisclmvge to 8Uoh persons as are iutoreptud in tli(i fee of the realty. 20 U. C C. P. 179; 10 JIass. 313; 7 H. A J. Md. 345 , 3 Mil. Cli 71 ; is Me. 428 ; 82 N. Y. 188; Civ Code L. C, §5 U.ifi, 1427. Mti%. Tknant liV THE (OURTESV: A husband who, niidor certain cireiinistrtnces, after the death of his wife, has a life inter- est in her estate. He may insure her perscmal jiroperty in his own name, while she still li\es. (tt7H. He may, as 'innanthn Oic vourti sy^ make valid insiiranee iijion the wife's real projeity, to its full de.stMiotilih.- value, descnbing it us "his" estate, without .specifyinji his interest, or the capa- city in whirh lic msmes, the j'uliey being silent, 2 B. Monrw Ky. 47 ; 50 Pa. Hta. 41 ; 3(i .Mo. 414: 1 Plilips In». I«4, 249; 18 La. 431 , CiTi) Code I. C . 5§ 1290 ,:i /i,-j. ; Caliiwi-ll r. .StaJacoiui Ins. Co., 11 S.C. R. 212. OIH. K.\RNINGS AND I'KoFlTs; (hie having an insurable iuterest in property may insure also the prospective earnings or profits likely to gro.v out of that i/rojetty; but these interests must be covered spe ;ihcally as .such (UIJl, ;iO»i}i),and usually at a valuation. Angell Ins. 131, 13J; Park tn?. 2t;7 , 1 Philinj In.^. 122, If.l, 191, 2Vj ; 1 Arnoul.l fui-'. 2tn, J'M : .! lios. i Pu;l. lo2 ; 2 , an insurable interest to the ani'Mint of his interest in the estate In a policy by a trustee, on trust projierty, nslu'i. (fUi Irm^f, being the equitabl(> owiier, has an equitiible interest in the policy. Wash. Real Prop. Ifc3 ; 1 Philips Ins. 214 . 17 Vcs. Jr. 257. IV. <51Kt. \\'lit'i) holJiiig the control (»t" property of ntliers for opccific uses ami Iru-I.'^. Such are the interests of the following : «!>7. Executor -. One having the control of the iropciLy of a decedent, under a will. He may insure iii his own name, even before the probate of the will. 5 Barnfiw i Aid. ;45; Williams fixec. 175; 3 Atk. Oh. 300; 4 Youok & C,.!l. 221 ; 5 Gray MasB. 3a ; i'A'a. St. 2r,j . Civil God.- L. C, § 910 it scq. for decisions. INSLRAULE INTEHESTS. 298 OflN. AmnsxnTRXTOii, Adminstrd.ti'lx : One having control of ])iopevt,y of an iiilostiito decedont, by ai)j)oiiitnu'nt of llio sur- rogiilc or other jiropor oliicor. In tlio prosocutiou of his trust ho acciuires a legal jiritperty in the .issets of the intestate, incident to his office ; and, being liable for the management of the prop- erty, and having poH.session and control, ho may insure it. G VVrR. Tenii. I(!7 ; 11 Viner's Abridj;. 358: 2 Ves. Ch. WT ; 5 Coiui. !'•; 10 Iretl. N, <'. ■MVi ; 20 Muth. N. V. 'Jl ; 27 N. V 103; Civil Code L. C., § •J'.:]. <11I1I. Ctuardian ; Curator : One having legal charge of the estate of an orphan minor, by ajjpointinent of court. From tho nature of the trust, he may insure the real property of his ward. ReHVf>s I).)m Rclat. 311, 3.'ii; 1 Johns. Ch. K. Y. 90 ; 2 <,/. 43'J. TOO. AssiGXiCK : One to whom an assignment iia.t been made, as (iiie having in charge the property of an iiistjh ent debtor. From the nature of the trust, he may insure himself against loss by fire. (lOOO.) An 'i.'^i^i(}}i.ie of any subject, for a valuable consideration having a Ilea ujton it, and jtossession or control and disjiosition of it, may insure it under a general description, without s})Oci- fying his interest, the juilicy being silent. 2 Siiiiin. C C, 345 ; 10 I'aige Ch. X. V. 7 ; 1 N. Y 101. 701. Sheriff; Constable: Holding projwrty under execution, may insure it; the proceeds, in case of los.^, being held in trust for the party in interest. W V. V. 117; (Mvil Code L. C , § Hfi5. TOtJ. Keghiver: (Jne appointed by a court to receive rents and profits on lands, or the product of property in dispute. Having possos-sion, and being responsilile for property lost or injured from negligence, and liable for damages, he may insure to the full Nalue of the pro))erty. His powers are limited within the jurisdietitm of the court by which he is appointed. 1 Johns. Ch. N. Y. 57; 3 Abb. Pr. M. Y. 235 ; 2 Duer -V. Y. 052. 70;$. Trustee: One holding the right of property, real or personal, for the benefit of anotlier, under a deed of trust, or by appointment of a court; he is, in law, generally regarded as the owner of the projterty. (1 1117.) 5 Wall. n. S. 509; 1 Philips Tn3. 210; 45 N. Y. 454; 27 id. 163 ; 3 Kent Comm, 311, 418 , 5 Paige Ch. N. Y. IG ; Civil Code L. C, § ysia. 29 r> INSURABLE INTEUE8T8. TOI. A tntSfCi' )iiivin<^ Ihe title to property, and poHHcssion aiiil iii.'iiia^'Oinoiit of it, iii;iy insuri' in his own niiinc, without iipecifyiiif,' Iiis iiittTt'St, lo its full value, the j)oliiy bein^ silent aa to ownership. Either or all of the jibove-nanietl, being tnmtci'.f to a certain extent, having possession and being liable for the due care and safety of the trust property, may insure and recover the full value in their own names, or aa "executors," "aiiniiiiistratnis," etc., f(jr the use of the several estat(!s in trust. (^700» 711.) V. 70/>. When one is so contn'cto.l «ilh propfrty, cither bv oontrael or by ink' ot' law, that lie bei'oine.s liaiile to intlenmitx ilie owner in ea' A common rarrirr may be reinsured against certain risks, subject to the conditions of the originid insurance* (1024.) ' N. Y. Code, J 1368; 3 B. & Ad. 478 ; 1 Philips Ins. I(i6, 220; Civil Code L. C, J 1672 ft Kiq. 707. Wharfingek : One who owns or keeps a wdiarf or i tire, if goods be stolen in n'nioval, he would be resjionsiltle for them. Hence, he possesses an -iNwui'it^/!*' into'cst in the goods of lus guests. 2 Kent's Uomni. 5l»4; !^tory Bailni. 4(35 ; 2 Pars. Contr. UG ; Cifll CoJe L. C, § 1814. VI. 711. Wliore parties oilier than iloaler.M, having no ownership in property have i\ lien upon it, or Hueh ai\ interest connecleit witli its safely as will canHc them to Hiistani a (iirect loss from it.s licslniction. Or, where une has taken profierty of anotlieral !iis own perwonal risk ; or has agreed to keep it uniler insurance lor the lienefit of the owner, and who will be liahle lor any loss liy tire thereon if he fail to do so. Sucn is the interest of the following : — 7IiS. AiiKNT: One who transacts business for another for hire. Having a jtarticular right of lien for all of his necessary commissions, expenses, advances, and services in and about the property intrusted to his agency, he has always an insurable interest to the amount of his lien ; and when, by the usage of trade or the general course of business, he is authorized to act as owner or principtil, and has possession of the property, he can 208 rNSITRAOLE INTRUKSTS. instiro to the full value in his own name ; iinlo.ss tlio slipulntions of the ))olicy iwiuirc ntht-rwise. TItia. A iiicro aijent, without jMissossioii or licui, hus no insuiiildc intrroat; htiiici', tlie boiit'ticml owner I'liiiiiot iiike adviiiitau't'. of" insiiiTincH cnbctt'd hy an ai/enf in Inn ovn titime, Kiiilrr •iih-h riiriiiiiKfitHci'M, wuch contract bein^' simply void. ^i:ti7, i:t:tH.) :i H. fi A. t7N; 2 Am l-c«(l. <'iw* 4:ii , 1 M.inii A Or. IHO; r> Kll. .1- i!. H"o ; 51 Me. IHH ; Civil Coiii' L. C, § I7:f,"> et .seq.; O'Connor v. Im()"l. Ins. Co., 11 I,. C J. 219. 7i;t. K.vcrrii: ; duo I'lniiloycd to .sell <,'oo(ls or incnliandi.so L'on-i^uod to him hy or lor lu.s princiiial, for a comiKMisation. He may hoy or .«i']l Inr lii.-* iiviucipal, in lu.s own name, an well as in till' iiaiui; of lii.s ])riu(iipal. Hi- is alloueil a HiU on the jtroct'.ods of jjjood.s .suld as well as on the <,fO(Ki.s tluau.si'lves. Honof, he may not (mly insure to the anmnnt of Iuh lien, in \vay of advance.s, cxjionsi's, and oommission^ ; but Ik; may insure, and recover for the j^joods in lii.'it custody to tiieir full value, in his own name, holding any surplus aliove his lien in tru.st for his principal under the restrictions of the policy. (ltJO»5.) A fiirfor is a niereaniile ((C/rnt for sales and purchases, who lias ]Missession of the goods. An ri nctlotwrr, in posses.sion of liMjierly, stamls as a fitdov. At roniinon law he id agent for both buye)' ami seller. Aiigell In9. -197, 510; 2 1?. A .\. 14.3; RiiRsell. I'rtct. A Hrok. 2, ;f; :^4 Kftrb. 4.'i4 ; Civil Ccie L. C , J l":J5 tt teq. ; I Amoiiid Im. \\'> ; CiiSHO.k. «. Ins. l.'o., L, 0. J. 07 711. A nuoKKit is such ((//r;//, but without possession of the go(ids. Hence, while ii/f his enniinissioiis, und other lievmiu ;,'(iO(l.s eonsii/ned to hiiii tor sale, fmin the, time of such eonsianmenl ; and may, like a f Hill N'. V 3!i;i ; 2 Oiui N. V. 227 ; Mftcf. .Muss ;!Si!. 717. N'endor of " (iOODs soi.n but not Pia.iVKUKD." When the owner has sold the snhjeet. agreeiny still to stand insurer in resp(;e,t to certain risks, for a certain peuiod, nnd(a his then sul)sistin<,,' policy (eoverinj^ under the altove eluuse), sueh agreement will constitute a suiheieiit still subsisting iusurublo interest under such a policy. (I20.'5.) 1 ihill .\. Y. S4; 4fi \. V. (lOB; Calif. Civil Ci.do, § 2.W9; I Diinr In.-, .a n ; 1 Pbilipd Ins., §§ SO, 91. 71 H. I'NDKRWBlTKn ; An underwriter, by snbsciiliing a jiolicy, acquires no jiroperty in the snbjeet insured, yet he (h)es acquire an insurable interest therein; and having rendered himself directly liahlctolosH from certain perils, he may stipulate to be indemnitied against those perils. His interest, however, exists only iu relation to the ]ierils insured aguiiist in the original policy. (I02H.) .Aiifrnll 1119.20, l.!S, i;i9; O Roberts .ilrt; 17 Weiul. N. Y. ;159; 1 Smuif. N. Y. 137; 2 Ci)tri8t. >f. Y. 2;i5. 7 111. In a fire policy in favor of a coimgnec, fador, or i^nhifn Union mftrhctit having a lien, the calculation (if the amount of the 'nifmrablc interest must depend upon what coo INHr'lAIiLK INTEHE8TH. interest, :i|. pears hy the otmtraet to be intiuih'd to be insured, or wliii'li may, by tlie terms dl'tlie iioliey, be eovereil. 720. N'di.UNTEEH lNsruAN('K: One in held to liersoii aeeejits that wliieh is lor his own benelit, th(! general hui.chn.'^ beiui{ "that a subserpient ratilieatiou is enuivalent. to])ri(ir autliorily," and " taeit permission is e(iuivnlent to an express iiulhoriiy, and supersiMles lliu necessity of a subse- «|Uent adojition." (IJIJII.) 1 1 I'l.ist. K. tl20, IV>:\ ; 1:1 „/. 271. i-i 1 ; ■.' l> irion^ Iim. U 7. (.; . ; 4 JohuH. V. V. 84 ; .1 MiKM, \.i-i ; ItroDin Lrg. Miix, Hlrt , ',' Du.t t is, IS , !' Hnrr. I'a li»H ; 2 Mniilt^ * Hcl l,•<,^ , 1 V V, t.!.!, .Ii./. Kill l> n. I. U'J; I.tg, li. R 4 . « L, C. J. l»7 ; Civil I'ode I.. C, ^ 2171. TJOn. When one without order or authority eftects insuraua; intended partly or wholly for another, in a form available to him and applicable to his interest, sueh other has an election to be a party to such policy, or to decline it, Ihit he will Itecome a party a/lcr iiofici'.nud as such liable for the, premium, nnh'ss ho declines to be so without umieces.sary delay. It must then lie the entire act; a supposed principal cannot adopt a part for hia own benelil imd repudiate the rest of the suppostid agency. (!>;i»5.) 2.rolin8. Cased V>'>, 424,31111; ir. N V. .'177 ; 10 i./. I:t7; 26 (./, 505 ; 2ai(/. C4; 30 /(/. 71' 7UI. Whom ft >fAV roxcKKN: One may in.^ure in hi.'* own name tin.' iimjierty of another, for the benefit of the owner, without the latter's previou.s authority or sanction, and such action will insure the interest of the party intended to be protected, U|pou hi.s sul)se(|uent ad(,i[ition of it. even after a loss may have occurred. But, before one can recover upon a policy of insurance, he must show that /ti'.s property was intcuilcd to be prottcted by the policy, or that he caused tin; insurance t(j be elfecteti for his benefit, or that It iviut intended, at the time it wa,s taken, for INSIIUAIILK INTKRKHTS. sol liirt Hi'i'iirity. In llii iiltsciicc «>r piHitivf |iini(t' of uiluptimi, tlio fact ftlllllllt ll<.> IIHSIIIIIIhI. (^|!ltli<«) Angi'll Ins. 134 i :i Uiirr. I'k. I'JHj li Kii^tt It 27 1; I l>liili|)« Im». '2U'2, } 388; llii|;li«ii lii:i. 41. VII. 7*2*2, Wli'-ri pHni('?4 hpi- liulili' In iniliMiuiifv "tlior* f'^r low or injury to projitriy, I'liii-cd liv iliciiiti'K'i'H up ilicir I'liipli'yfvM, i>r rt'iidliinf iruiTi acci- ilent", rtii li'riii>; llinu liiilili-in tlnrl |»irti<'<. Siicli ,nv \Ur. iiiti'icsis (if the t'ollowiiij^ : — 7;«;i. l>.vii.u\N Cmi'wiKs : "S/nrli liinkn. niilwiiy compuiiy liiis nil iiisiinihli! iiituii'sL in l)iiililiii^.s, fciici's mul fiii'i'Hl.s, iiloii^ tluf liiir of its hiiiil.s, wliicli liiiiy 1"' lialili- to l;ikt' tire iVoiM i.lit> sparks . iiLu'l liy llioii locuinuiivos ; mul I'm- wliii;li injury tlii' cfHiipaiiy wuiild lio ul»li^(!il to iiulciuiiily llm owikts nnlcss it hiul tiikcu (;vory rfiHoiiiible priiciuition aj^uiu.st .siiuh dangers. !)H Mii!i3. 420; Si> Me. 4:li1; :i> y, Y. :V!9 ; 4i) i./. 421, rpv.irsinR .1.') \.V. .'110; 62; IViiii. St. :!-);h ; i:i \\,'lr{ .Mua.s, iW; 42 .Mn. 4?.'. 37 Me. 92; 40 (./ STii; :tM N. Ilaiii|.. 212; 2 Pelers I'. S. 2'> , 2 IJeiiii F. I. Ciued SiiH; :iJ SUl. Ur., 14!i, 2r.l. I'.iit ilii;" must be ('(ivcrcil as their intcrost may lie, and nnl lis ciwiieis. 3 Ins. r.aw .Imir (it)H. 7t{|. Til some lit' the Ka.storn States, Maine and Now llanip- shiiv, parluMilarly, the I e are slatiitos providing. that raiiw 'ly coiapanies shall have an insuraUk^ interest in any buiMiii;,' or other property, along the line of their several roads, to tlu.' extent of any loss by (in; eoininuiiieated l>y their locomotives; and this has been held to oxteiul to growing timber within three hundred feetof the line of any road. 37 Maine 92 ; 4ii i.l. ,'iV-J 3S N. Hump. 242 ; 43 U. 627; 13 Metcl'. Mtiss. y9 j 17 I, R 1G7, 15 g I.. It. 9,!. T'-iUm Where tlie sparks from a passing locomotive set tire to a woodshed and stalile, and sparks from the^e burning buildings veve borne to, and set tire to a house more than fifteen hundreil feet away, it was held that the railroad company was liable for the loss. (2 Bennett's F. I. Cases 5tJU.) 7'-iilo J Wit in another case, wlitire a wixrehouse near the track Was set lire to by locomotive sparks, and communicated tire to a 302 INSL'UABLE INTEKKSTS. hotel buildiug tliirty-niue feet disttint, it was held in the trial court that the railway company was liable for the loss. On appeal to the Siipreuie Court (of Peniia.) this decision was re- versL'd upon the ground that the burning of the hotel was from a secondarv cause. The locomotive sparks did not ignite the hotel, tiiey tired the warelmuse, and the warehouse fired the hotel ; they were the remote cause oidy. (lOOO, Ii570.) 4 Iti3. Law Jour. 'M^S•, 02 I'li.St. 36;^, ciiie cited. TU7. Chief Justice Tindal (in the case of Piggott v. East. Co. liaihvay Co., 3 C. B. 229, iO Jur. 571) speaking of the responsibilities of railway companies said : — •* 'riic iltferulants are acom|iany eiuruMted liy tl>e Legislature with an agent of an exfiniiely diiigerous ami iinrulj' cluiracter, for their own private ami particular ailvantujje ; ana tlie law requirert of tliem, that they t^hall, in the exurci->e of the rights and powers so conferred iijxiii them, adopt Hiich pre- cautions as ma}- reason »1.1\ prevent lianiage to the property of third persona througli or near which their railway passe.-i." 728. " The evidence in this case was abiin C. 1'. (KxcU.) 14; 2.1 L. J. B*ch. 2t7; 49 L. .1. App. (^ U. fJ.s. 7!3S>. Whore it was proved that a raiUvay company "had reHorfed to all kaoivn nttans of precaution " to prevent such accidents, it was held that " they were not liable, as there had been no negligence." May Ins. .')b2, § 4,")!), and the authorities there cited ; Smyth r. R. R. Co., Sup. Court. Calit. Aug., li:JH4, 7JIO. Steamboat OwNEits : Inasmuch its steamboat owners are lialile for damages caused by sparks from boats having no (jrille over the chimney, they have an insurable interest under the same contingencies as railway companies. Cranilrtll r. (Joderich Transp. Co., Milwaukee Sup. Ct,, Dec, 1884. 7!{0a. In an action for property destroyi'd by fire, where it is claimed that plaintill's' j'l'oiierty was consumed and de- stroyed liy defeaUaul's actionable negligence, it is no defence that 'n^'^11 MOUTGAGE INTERESTS. 308 plaintiffs' ])voporty was insured for its full value, and that he has ivceived ihe insurance money. In su(;h case the iihiintiffs are entitled to recover their entire loss from the defendant, and the fact that the insurance comjianies in which the property was insured have; puitl jilaintifl's the amount of such insurance cannot constitute any defence. (135 N.J. [Law] 409; 103 Mass. 219, 105 Mass. 213; 17 Mich. 47; 38 15art. 581); 37 111. 333 ; 25 Conn. 265 ; 39 Minn. 255 : 71 N. J. 574.) Nor can the paynKiut of insurance money be used in mitigation of dam- aj.(es against the wrongdoer. The insurance is s(jmething with which the wrongdoer has nothing to do, and, whether received by the plaintitls or not, is no concern of such wrongdoer, nor can he have any V'enetit from it. 1 Lutli on DiiiuaKes 242 ; 4Hn(i. 1S4 ; G9rnd.3'7. ('ase of Cunniugliam «. T. II. &. A. Railway (Jo., Sup. Court lud., June, 1S81. MORTGAGE INTERESTS. 7lil' " Whatever may be the form of a conveyance to secure a debt, it is held in equity to be a mortgage, and is to be treated as such." , . Uolbrook (). Americfn Ins, Co., I Curtis C C. 19.3 ; Kinnersly c. Mes?en, .") Taunt. 204 j Fori ('. Hun'h, .'i Dciiio 18" ; A'organ v. Clmiuberlain, iO liarb. 103, That there is a material difference, especially in the law of insurance, be' ween a mortgage and judgment lien, is beyond question- Mortgagt.-i are in form defeasible, and in substance grants of speeitic .si curity of interest in lands; but a Judgment is a general not a specific lien. If there be jtersonal properl / of the debtor, it is first to be satisfied out of that; if there Ije not, then it is a lien on all oi his real property, without discrimination. A jiulgment, though to secire payment of unjmid purchase money, does not ])lace the hoklei in a position analogous to that of a mortgagee, and as he retains no insurable interest in the promises, he is not entitled to recover on a policy of insurance. Talntor v. Keys, 1.1 111, 332 ; Holbrook r. Americnn Ins. Co., 1 Curtis C. C. 198; Rassell i-. Southard, 12 How. 139 j Lazarus i'. Com. Ins. Co., 19 Pick. .Muss- 81. 304 MORTGAGEE CLAUSE. MORTGAGE POLICY. Tiiti' A inoi'tirage policy luiiy be directly upon the ])roperty by llie iiKirtgagee, or a mortgage debt may be securud l)y coiidi- tiun.s attached to or inserted in the policy of Llic mortgageor, making any loss payal)le to the mortgagee as hia intcsrest may ajipcar at the time i)f the lo'ss. (I070.) The tir>t form is a security upon tlie debt wlieiv- the ))remiiim is paid by the mortgagee ; in wliich case the owner receives no benefit wh.iiever from the insurance in case of loss, as the debt still remains unpaid; the want of i)rivity between the mort- gageors and insurers is a conclusive objection to the mortgageor's claim to .-uch discharge. (16 Wend. N. Y. 397.) Under this form tlie uuderwriLer is entitled to be subrogated to the claims of the mortgagee, thus changing the creditor of tlu^ mort- gageor from the mortgagee to the underwriter. (T03.) In tho second form the property is the subject of the insurance ; the policy protects both mortgagi'or and mortgagee, as, in tin? event of loss, tlie mortgagee collects tlie insurance money as payee (77iiU giving mortgiigeor creilit upon the mnrtL,'age to that extent; and if there 1)0 any surplus it belongs to the mortgageor as the insured, while the underwriter has no right of subro- gation, for, the mortgage being paiil, there is notiiing to which to be subrogated. (l.Hai,) MOirnfAGHK CLAUSPI T!i!t* This clause is a siieijial stipulation, operative only be- tween the insurance company ami savings banks, or other money loaning institutions or individuals to which it may be conceded, usually accompanying a mortgageor's policy when loss thereunder is made payable to such parties as mortgagees, and intended as a protection against any acts or omissions on the part of tho insured, the mortgageor, by which tlie insurance might become invalid as to such mortgageor, in which event the jiolicy would continue to cover the interests of such mortgagees, though tho insured may have set fire to the premises, or otherwise wilfully caused the loss. Thus, as the mortgageor ha^ no interest in the clause — it not becoming operative until his legal interiist in the MORTGAGEE CLAUSE. 8G5 iiisuranre shall have entirely ceasinl — it is difricult to ooncnive whj' it should, uh in jireritiut praclict', form one of the stipulatioiia nttachod to his jxilicy, which was not the custom in the early days of tlie iisu of this clause, which then, very properly, was considered and treateil as a separate transaction altogether. 7:Slu. Till' first use of this clause was by the Mutual Life Insurance Coniiiany of New York, early in LStiO. It was very exacting upon the Ci)nii>aMies, entirely nullifymg many of the most saving stipulations of the policy as issued to owners directly. This form soon Itecame conin)oii among other loaning institutions, and for many years subsequent, the clause was a source of mm-h vexation and annoyance to the Companies and the Courts as well, until some of the more prominent offices refused to write them. From time to time, however, improve- ments were introdu(;ed into the clause, such as the right of can- cellation by the Company, theretofore denied, cO'Coiitril)ulioi), etc., uniler which the fact thai the Com[(anies had some rights that these grasping mortgagees should respect was recognized. The following is the NEW YORK STANDARD FORM. Mortijagee Clause irith Full Coriiritmtwn, TAit. l.osn or (laiiinge, if any, (unlfi tliis policy, hIihII lie payable to.... aa iiiorij;a>;i'i' [or tnistt-f], as intcrost may appear, and tliis inseiance, &s to tl\e inlore-xt of tiio itiurtjia^ee [or tnistoc] only tliproiii, shall nol hv iiivaiiilatetl by any »t'l or iifjilfcl of ilu» inorti;ageor or owner of llu' witbin- (ii'scribi'i.l property, nor by any forocloKuro or Dtlier prooeedinjrs, or notici' of Hale nlaiinj; to (lie property, nor liy any oluinge in the title or ownersliip of the properly, nor by the occnpation of the premises for purposes more liaz- anlouc tlian are permitted liy tlii> ])olicy ; jirni'Hlfif. that in ca>e the moil- gageor or ourier shall negiei t lo pay any prfniiiim due under this policy, the Tnort{;aj:ee [or IrusteeJ shall, ou demand, j)ay the same. INCREASE OF lUZAUI). 7iU». rmndi'il, also, that the mortgagee [or tnisti'el shall noiify this company of any cliange uf cvvner.-hip or occupancy, ur increase of iia/.anl wliii'.h shall come t_v il> tcnns ; luit in mull cum' tliin polirv -liall ciintiniic in Unxe for (lie liriK'tit only ot the niortgugee [or tnisiec], for t'Mi ilay.^' after notice to the niortiriii;i'<' [<. Whenever this company shall pay the TMort^Mitr<'e [or trustee] aiiv sum for lost: or damage, under this pjlicy, aiid nhall claim that, as to the morljjra^eor or owner, no liahility thereior e.xi!ayment, he thereupon lej.'ally suhroirated to all the rij^hls of the i>arty !o whom such payment shall be made, under all securities held as collateral to the mortgaj;e deht ; or may, at it.s option, jiay to the mort- gagee [or trustee] the whole iirincipal due, or to grow due on Hie morl.iiage with interest, and shall, thereupon, receive a lull a'or it owner, .sliill 'le paid for \>y tiie m )rt)j;a:;c'es on rs-ason- ftblo iliMiianl from thtMlatc s.ich iri/ar 1 I'xi^tfl, acv.oriiu'^ to ihe osiiiliji.siioil Softle of ll.vteH, for the use of suoh itioreased hazard duriii;; the contiimance of tiiis insurance. 7-45?. // if 'if.sit fiirfhi r prari h I. mil ai/ri"' I, that \vh"iK'\-(M ti;e (;oni|)any sliall pay tiic int.ri;ia4i.'i;s any -(mii for Io-'h nii l-r tlii-* (jihcy, an Isliull riuiin tiiat us lo the niorljrasreor or owner no liahihty tin'rclbr exi-iled, it siiall at oni;e ' .uily rtg-i;^'>e^ uniler all the securi- ties li as (!ol lateral to the lnortJ.^lL;e debt, to the extent of siirli payment, or, at iiH option, the com[)any may pay to the i)iortga.;eo< the wliole principal due or to grow due on the iiurtjrage, wiih interest, and ^hall ihereupoD receive a full assignment and transfer of the mortgage, and all other seeiiri- ties h'ld as collat-ral to the inortjrage debt, but no such subrogation shall iinpnir the lights of tlic niortiragces lo recover the full amount of their riaini. 74r-l:. /' /••-' 'ilx" fiirt/nr pmriiU'l (tnd aitrecA, that in the event cf said pro|>erty lieing further insured with thi-J or any other olKee, on h^'half of the owner or mortgagee, the ciunpanv, ('\cc|ii '^iioii othf r iiisuranee when made by tiie niorcgageor 'U* ownnr .*hall p'Mve invalid, shall only hi' liable for a ratable proportion of any loss or damage sustained. At the reipiest oi the as-iured, the Iosh, if any, under this polii-y ir, jierebv imide payalile to as interest may aopear, .siibjcet tn the coiiditions of the above " Mortgage Clause." Thi.s clau-^e, thoiigli nut as formal ami pfoi'ise a.s that of tiie Now York jiolicy, Vi't covers the Siitiie gf(^iiiid.s, and i.> lial»l»5 to the saiiK/ oli,H'i"tiiiiis, whii'h teiulily ,stitri;'est tlicmsc.lves to any lire uiiilorwriter. :7T55.) 74 l«i, Tiii'.sc " iiiortgagoe cliiitses " are distinct waivers of the conservative .stiiailations oCthe policy ; tlie ]irop(!rty in.iy be Sold and resold, tjr htirned by the raortv^igeor during its currency, but the liability of the nnderwriter still remains ; and just why .such special "concessions" .should be mtide to "money-loaning in,sti- tution^," to jirotect tlieir intcrenfi< when they tire tht; very last to make " concessions " to others, is one of the, •' niy.steries " of the btisincss, ospeeially when the efTcel of such concession is to debar th(! underwriter from tin; benefit of the saving condition.s of his [lolicy in WLsea of fraud, or other voidable circunistatice.s on the part of the mortgageor, without any corresponding beiielit toliimself in the way of extra prcnuuni or otherwise fur such coucessiou. 308 THE MOUTGAOEOR. ClIATTKL MdKTCAnt;. 74a* A flmttcl inoi'tgiige is a lion ii|w)n personal prnporty securc'tl liy uiurtgage ; .such IIlmis arc treatod in law like iitliur nioiti'af'cs. Tin. rhiiiitills sold their sUick to C, luid took u chattel mortgage lor the imrchase niuney. Sundry other artiolcs, the projiorty of C, were included in the mortgage. At the time of tlie sale the sherilf held executions against the jiropeity of C, co\ering Ids goods set out in the mortgage : — Hki.i): "That tlie ficcejitaiicc by tlie plainiiHfi of a TiiorlKajje on gooils wliiili tlii'V knew lielniifiiMi to C, tliuiiirli already Ummi liy the cxeeutioii, as tliey were aware, rendered tlie wliole iraii>aetioii vnidami iVaMdiileiit a;;ainst creditors, i-o that tlie wtoek in trade sold liy llu' plaintill'- tn (' lioeame sub- ject to tlie executions." (Caiiiereii v. I'errin, Court of Appeal, Ontario, T4T. A chattel i.iortgage is m)t alitiuntion, so long as the projicrty reniaiirs in the jiossession of the inortgageor. ^llice v. Tower, 1 Gray Mass. 42G.) Ai'pleton Iron Co. '•. Hi'iti.^li Amcric.i Fiis. Co., H U. Wis. IH7S. X Ins. bun- Jour. ITV J Ilibbard il ul, v. Ibtrlt'ord Fire ins. Co., !S. C. luwa, 1 Ins. Law Jour. 178; Ogden i\ Montreal Ins. Co., ,3 t'. C. C. P. 'I!»7 ; Driver v MebanKhhn, '2 Weud. N.Y. .'"iW. Rowley v Uice, 11 Metcf Ma.ss. 353; retti.s ». KellogK, 7 Cash. .Mass. 456 : Excelsior F. I. Vo. v. Royal laa. Co., C A. V. V. 1878, 3 Ins Law Junr. 3.J0. THE M0RT0A(;K()I{. TIH. A ni. 'Where the owner of property oxocutes a mortgage llu "ori, and assigns the policy to the mortgagee, as collateral to 1 . erigage, with the consent of the insure), the as.signet; takes I'jvct to the conditions expres.sed upon its face, or necessarily iidkriiig ii: it unless otherwise therein agreed, and no recovery THE MOUTGAGEOR. 309 can bo had rncn^ly in ('unsoquenco of thu etiuitici of tl\('as>ij,n;iui if tlu' assignor has lost thn li^hb to recyver by vioUvliny the terms of the contract." (I0«0.) 8 (Srny Muss. L'8 ; 17 N. V. :Wl, 401 j :U Punn. 438 ; 17 Wis. :W7 ; 5:t 111. 151 ; 10 Wftli. V H. Xi. THO, It is the ]tiirti('s insurerl ami so iiiiined in tho imlicy, and not those to whom loss may be made |iayable, who nre boiual by the terms of tlu- ]ioIicy ; the designation of payment to the mortgagee is not an in.snrance of mortgagee'.s interest; ho takes it snbjcct to tlie conditions of its face, and .subseijnout insuriu; 'i^ tiikeii by tlie niortgageor wilhoiit consent of the Hr,st company will uvoid that policy. C()iitii!i'iit:il Ins. Co. r. Ilcilinan .t Cox. S. 0. Mich.. Oct,, 187lt, '.) Ins. Law Jour. 91, rtnd luilhoiitics citoil ; :il IVnu. 4;iS ; .■•;i Wall. U. 8. :«. Till. Where a tuortgtujcor took a policy in his own name, "payable, in case of loss, to murtgagee," and afterward.s sold all of hi.s interest in the property to a third party, it was held '■'Tliat the contract was with tlie niortgagcur and nni with the mortgagiH^ , and that the sab; of the iiro])erty divested the niort- gageor nf all iiisnrabic interest, anil the mortgagee conld not recover." (7»»0.) 5 Ins. Law .loiir. 1 1.^ ; lO "A'all. I'. S .Tl . 42 Me. 221. TfitJ. In answer to a question in the ai)]>lication as to incumbrance ujion tlie pro|)eriy, the amount as then existing was stalled , an additional niortgagt^ was sub.setiucntly e\eeu»ed, and an existing policy assigned as collateral security thcrefur, it was held that the execution of the latter mortgage, uitlmuc notice to the company, ilitl not avoiii the policy. Peiiplc's Ins. (Ji>. V. Iripcnccr, 5 I'. I Smith H'):! ; Kiiroka Ins (>o. c. Ilobinsou, U iJ. 251.; State Ins. Co. ii. Tcdii. »i li;.-. Law Jour. HUH. • Per CuntTii: McOuin v. Waterloo Co M. V. Co., 34 U. (.'. (j. H 370; Iluwki' c. Niag. Disc Ins. Co., 23 (Jratil Ctiy. 13!). 753. The sale of mortgaged property by a master in chan- cery, under a foreclosure, termin;ites the interest of the murt- (jfil/ao)', though luuleed ha,s ycabeen executed. (I Sold. N.V. 151.) 7f>4. A mortgofieoi; whose et^uity of redemption has been soizetl tai execution, may recover the entire value of the buildiiKf n'lt exceeding the sum insured, subject, however, to the terms 310 THE MORTGAGEE. of the policy. The luortgajioor having an insurable interest in the property n)ay sue. (Crawford v. St. Lawrence Ins. (Jo., 8 U. C. Q. B. 13;".) Per Contra, N. Y. Sup. Ct. (3 Bosw. 516), a niorti^agcor cannot sue unless the mortgagee lias been paid, ■\vliicli iif must allege ; hut if unpaid, both may join in tlu; suit. (My overcij^lit in mimlieriu;;, seoiioii nunilKM's 755, G, 7, were inH uscmJ.) THK ^roRTCACKK. T«"5.H. Miirfijiifice hhsurfinre is a wjiolly (.ollateral contract, which I lie law allows the innrtf/fKjec, to make, and with the result of which the moilgagcur has no concern. T»»!». A mortgagee's iiiicrcst is in the debt secured by th(> property. He cannot b(! lield lo cover liie spcrilic jiroperty mortgaged, but only so mnrli tliereef as may lie sulhcicnt to satisfy the mortgage debt. [u ellect, the security only is protected by the insuvai'.ce, which is limited to the interest specified in the jiolicy, nor exceeding llie moitga.ge debt. If the debt be paid before the loss, the moitgiigee's interest in the policy ceases from lack ol interest iijtoii which to attach. S I^wl, Ev. R. i:;S ; 1 B. k C. Cr, ; 1(1 Peters U.S. 512 ; 10 /,/. VX-J^il ; 8 Paige Chy.. N. v., 4;''7 ; Kiclmnl-nii c. lluiue Iih. U'>., Jl U. C C. P. 301, 2 ; ifiirtdii r. Ooii' JJiit. Ins. Co.. IJ (Iriiot Cliv. liw ; Iticlmril-i r. Liverpool And liOiidoii l''ire Iii.s Co., 25 U. C. y. It. 400; Ogdeii ., Monlivnl Ins. Co., :'. U. (J. C. P. 4:>7 ; .Math(>w.soii (. Western Assnnince Cd., 4 L. C.,riii. .'J ; Klaud. Iiia. .'iOO ; May [ua. 525, .54 7; 1 Philips Ins. 1.55, § 295. T<»4>. A moi'tgiigee may, at liis option, insure his interest generally, or .sjiecifically ; generally when he insures as entire owner, making no mention of the mortgage ; or specifically, wlien the nature of his interest is specified, subject, however, to the specifications of the policy as to title or interest. TIH. The h'.lder of a mortgage as security for the jmrcliase money may insure his entire interest, and is not bound to look to the laml for its value. It is Lot comi)etent for tln^ insurers, in order to diminish or ilefeat recovei'y by (he insured, to show that the mortgaged premises, notwithstanding the loss, are still am 1 lie security for the debt. ('^74.) 7 Gush. .Mass 1: CGIlland J. M.l. .372; 7 H.irl). .S.V.SCiO; ,5 15. ami Ad. I{. 1; 5 DinT S. V. 1, aHinned 17 N Y. liS ; Kiirton .■ Gore Din, Iih. Co., H Gi iiit Cliy. 523; 12 ill. 170; C.awford v. St. Lawrence Ins. t'o, 8 U. C. Q, 1!. 135. ,4 THK MORTOAGKE. 311 703. A lien uihju property creutcta no lien iipori any policy held l)y oLliL'is ujion such property ; lienoo the mortgagee has no claim upon the policy of u mortgiigeor, and vice verxa. White ('. Hiown, 2 Ciish. Mas?. 412; Ciishing r. Thompson, 4 lied. Me. 490; May Ins. C, n 3, Cor aulliorilies; ^uranoo in made upon the propertij direct, by the owner or mortgiigeor ; nor wlusn the mortgageor jiay.s the insurance premium; nor when, by agn^ement, the premium is t.o be paid by the morf;g;igee, and charged to the mortgageor upon the mortgage. (i»2».) Howes i: Dom. V. [. Co., High VA. .Inst., Ont., Chy, Division, 188"! ; 2 Oiish. M:i3S. 412; 7 id. 14 ; .\liiy Ins. 80, H'j ; 3 his. Law Jour. .'i.'JO ; Watts d. Gore Dist. Mut. F. I. Co., H Grant Chy. 523. r>iit when the raortgaget; takes out insurancie upon his mort- gage interest, and pays the premium out of his own funds, any money paid upon a loss under the insurance is not in discharge of the mortgage; and the underwriters, on paying tht insurance money, will l.ie eutitl d to .subrngation -^^ the cocurity pledged to the amount by them ]mjd. It is, as to th.» mortgageor, sim{)ly substituting one creditor in the place of auoi.her — the insurance company for the mortgagee, 5 Diier v. Y I ; 17 N. Y. 428 ; Hi Peters U. S. 501 ; IG Wnud. .N.Y. 385 ; 22 Eng. Law and I'^q. H. 7!1. 7<84. Where the agreement was *' that the interest of the mortgagee shall not Ijc invalidated by any act or neglect of the mortgageor, provided that, if the mortgagee fail to notify the insurers of any change of ownership or ot octmpancy more haz- ardous after the same shall have come to bis knowledge, the policy shall be void : " The property was covered as a dwelling, but was occupied by the owner as a workshop. Held : that the ]iolicy was void, as the warranty as to occupancy was a con- dition-precedent, without compliance with which no rei'overy could be had. (Gassner v. Metropolitan Ins. Co., 13 Minn. 483-) :f7 1 »iri' t , f , ' ■■ 1 aia TIIK MOUTGAr.KE. 7,'(M)r \vii:< niiido piiy- ivblo to tlu' TiKtrlj,'aj,'c'0, and contiiiin'd l)in tullowiiij^ Si ijiidatinii : " It is hereby a^'i'i'od tlmt tins iiisuriinco, us to tlio iiitmest of till! nioi't}»a<;t' niortgfu^for ; tliat the party inaurt'd was tho niort<;a;;oor. liltH t r( snf.) Wins r. RoKcrVVilliiima Ins. ('o., U. S. ('. C, Hiat. N fl., .Inn, IHrtO, fi Ins, Ijftw Jour l.'W, and aiilhoritioH llicre cited. 7<{1K WhtM-i' a Tiiortpirrf'o oovors liis intf^nist jirid a snhse- qutMit nuirt;,'ii^'('(i also covcix hi.s iiittTcst in tlio iaino proiicrty, in the event, of lus.s, the tirst niortiL;ii;,'t!C3 i.s not Ual)le to he apjKjrtioned with tho second insured; but may recover Iho whole amount insiu'od, if less lliun the loss or dania;,'e to tho property. r.2 Me. :vri. ;):« ; 12 Wcnd. N. Y Ml : '2 Ooinst. .V. Y. iSf) , 1 Allen Miin.'t. 03 ; 4 lU'uii. K. I. CiiSHB I'M . 6 lu8. Law Jour. 4.'.7. 7TO. The N. B. i'^ M. Co., and the li.C I'o., issued i.olu'ies to C. and R. ujjon a certain woolen mill, with loss payalde to, and nmrtgaj^oo clausi; attaehed in favor of Ihe (!. 1'. L. i^ S. Co., raortgageos. In addition there was a separate contract between the nuirtga<,'ees and each oflice providin<,' in j,'eni'ral ti rnis that the usual conditions of the policies coverinj^ upon jiroperty liidd by them undei luorl^^age should be waivi il and canceled whcjre they should be found inconsistent witii siu-h special condivions, and tiiese .special conditions were applirable to sncli policies. C. and J{., the insured, also had {xdicies in live other oflices. concurrtint with the first named, but, not payable to the mort^^a.gee,s, in the ev(!nt of loss, 771. I'pon tho occiuTence of less to the jiroperty at risk, the live last-named oHices paid pro-rata among them.selves, holding the fir.st-uamed two as specitic, uon-coutriliuting in- surance.s. The N. B. & M. and the R. C, wliile admitting their lial)ility, claimed co-contribution from the tive other offices, covering C. and II. alone ; invoking in their behalf the ])rovisions of the Statutory conditions, jtroviding for ratalde apportionment of loss on the same subject matter amongst all concurrent insurances, and claiming that these Statutory con- iMil II 311 nil', M(JUT(;A(iKE. (litiniis, tint tiiortj^'afroc ('liiUM' niid tlu' spncinl ftj^roi'inoiit fixcil a liiiliility nil fjiriii for tlicir mtatilc |irn|M)rtioiis of (.lie lo^.s i>n\y, 77tf. TIic iiKtrtga^'iM'.'s, mi the otlicr liuiul, cluiiucl th.it a.s tho litss 11)1011 the Tiiiil.-j was in excess of tlic aiiiomii of tim nmrt- ffi'fio, tliuy hail .si|iarut(' rights ai^aiint tin; l\V(»riiiii|iaiiioH, u|i to the ainoiiiit of llin iiini'tyaj^'c, within ihi- amount of those two jiolicics : aiiil thai tlpir cLiiiii i-oiiM not be iviliictjil l»y louwn of oihi'i III oiranrc to whii'h tlicy hail iicvci liccn ussiMitingiiiirtins, Th.' \'iii' ( 'Iiiim'.ollor, after .liic i'nii>i(l(>ration, (loi;iik'il that the (lofeinlant eoii)|iiuiie,s were entitleil t(» co-contribution with tho other oilices. (Caiiaila I'eriiiaiieiit Loan ami Savings Co. v. North Hriti^h ami Mereantilu and Koya! Caiiatlian Ins. Co.s., lli<,'li Ct, Justice, Uhaiicory Div., Ontario, 1888.) TTJf 'iiis riilinj,' is in full accord with the ])rece(liiig decj. Stotl.H. T U! iiiort!ia''eo clause am thcoth r special aj,'reonu'nts in their favor did not make the Loin (Company the insnred, nor tl'i' policiiv. of tile two coiiiipaiiics iiiorii>agee insurances; tho L ■all <'oMipanv was simply payee to receive the money for any loss that niiiiht occur to the iiiorl;;ai,'ed premises, at least so lon;^' as those policies were valid as to (.\ and H., who were the insured theivuiidi'r ; heiicM all of the |)olic.ies, eover- inj,' the same ])arties upon tlie same risk, became co contribu- tors to the loss. {7iVi. 7.>0. 7ilH.) lilUNSTATEMENT. 77 •• Where mortgaged premises had Immti relmilt iifter a loss by fire, by other parties in interest, anrtgag(!e subsequently brought suit upijii his pulii y lb Id, tliai :.h con- tract of insurance was a contract of indemnity ; and as the buildings had been restored ami the security of plaiimi; thereby maile as valuable as before the tire, and this had been ilnuc before the commencemt.'nt of the suit, tho j)laintiff hml sustained no loss or damage, and eoiilil not therefore recover. Matthewson i . Western Ass. Co., 4 L. V. J. .17 , 10 L. C. S O., Mmitrcnl, 8. P,r Cunli-ii, I-'oster /•. Equilalili' .Miitiml lii.^. G'.. 'J (Jr^y .\!ii33. 210 ; IG I'eters II. S. 495 . 2 Bean. V. 1. Cases 12,'.. (701.) PREMIUM. TTH' I'lviiiiiiiii i^ tilt' " foHt " uf iiisiinuict!, tins ]iiii't> dl, or cDUHiiliratioii for, tlic jii-ril iii'-uroil a^;iuijal. wliicli llic uiiilcr- writi'i' miuniiitoii.s in cus*', of uociiU'iit to tin- Huhjcnt of tin- iiisiir- lUK (', Tlif |irciniiiiii |i;inl In tlm iiisurrd ainl llic peril iis- siiiiii''! Iiv llic itiHinci' (111! two oomtliitivcs, iiiHcpiiiiihlo IVnui t'lK! otlliT. K^ir union couHtitiUcs the cv^i.scne .f til contmi't. Emerigun, McrcilitU'a E'l r.l ; I IMulipH Iim. 'J"i7; Maj iiH. 100. I'AVMKNl' IN A I) VAN. I). T70. " < )| lioht, mill liy llic onliimi v nifiiiiiiii; ol' tlm triin, tli> jHviiiiMiii, wlii'li is till' fost III the iiisiiiiiJii't', oiiv'li'' to In5 piiid \n \\\v. iii.siircr in liaml." (1! S'liliii's (.'omiiicntury 47.) All liiv imlirics iiicliido iv stipulation for tliH pr«miuin clOtJ), usually fixed at u certain rate j^er cent, upon the sum covered by tlie insiiraiice. It is ni:ide ae.ondilion |>reeedeiit to the insur- ance lakinj^ ell'eot, that tins premium shall hrst lit; paid to the company or its duly authorized a','eut, or otherwise sjieeilieally waivdl liy lliem ; and inasunuh as the funds arising from pic luiiims arc the resources ol' the eompaiiy fiU' the payment id lossi's and expenses, such condition is held by tiie courts to be valid and obliL^atory, as the risk assumed therefor by the com- pany i-t a full, merilorious and sidid considerution for the jire- miiiiu paid. BrcwiT c. In-i t'o, i:i deny Muss. 2(>.i : Mulvi'v i. Wliawmiit Mat F. I. Co., 1 Allen Mils'*. II iiilTum ('. l''iiveUe Miit. I'". I. V.it., :t AUon Mms. .'itiU : Kiiiit Dliio \i\A. Co., S Oiiio .")0j ; lU'i'tliDuJ ('. AUanlic Ins. Co., IH lia 5:i!), Uraillcy '•. I'otomiio lus. Co., 32 Md. 108; Ferobee f. N. C. Home Ins. Co., -> ; 7 i.l. n , i) *./. 21 ; 1 Pliiliiis Ins. '.ifiH, i M:> ; iMDnlri'iil Assurance Co. r Mi'Uillivray, 13 Moore's 1'. C. Cases s7 ; Walker i; I'rov Ins. Co.. 7 (Jninl Cli. IIH ; aflirnied H i omittcfl. (4^0a.) Where the ])oHcy stipulated that the " insurer shall not l>o lial)le under th',; policy until the premium shall be actually paid to the I'limpany," i)ut the policy had been delivered and aeknow- ledi^ed the receipt of tin; premium, it was held that " th(^ defen- daut coidil not be permitted to prove tliat tlio premium had never been paid, for the purpose of dofeatinc,' the riijlits of the injured.' Tliat " th.; acknowledgment of tlio consideration cuuld udt 111; contradicted by parol evidence if thi object was to make the deed void." 3 Kent Coitiin 2i3n ; 49 111. 180 ; 35 .N. J. 12!) ; :i Taunt. 493, 497 ; 4 „/. 246 ; 1 DUney (>. 217, afVirmed 2 id. 12H; 4,5 .M«l. .19 ; 4 Wig. 20; 10 La Ann. 737; 1 ("amp. .'")32 i :> Uran''b N. Y. 100 , 9 Bii.-;h Ky. 430. 777a. Wluiv the policy had become void from a material nii.srejjre.-entalion, not fraudulent, it was nevertiieless held that the policy was conclusive oviilence tliat the premium had been paid. (8 E.xcheq- R. 425.) ACKNOWLEDGMF.Nr NOT ALW.VYS CONCI.USIVK. 77.H. Such ackiiowledguunit of receipt of tlie jiremiuni is not always conclusive. The insurer may recover the premium notwithstanding the formal acknowledgment of the receipt of it in the policy, which \iH not inserte. In cases of parol agreements for iu'iiiauce, prior to thi' is.siie of the policy, the usual sti[)ulatinii ivijuiiiiig ]»ayment of iht' [ircmium in advance of dtdivery i>f the pulicy forms no ]iart of the contract, unless by express agreement. In such cases it is helil that the naturfd course of business would be to pay the premium when the p'llicy should be ilclivered. In r PRKMIUM. 317 the rneantiiiK' it is a d(A)t for which credit is given until the actual d^divery df the }>olicy. 10 Bosw. \. Y. «2 ; 2 [ns. Law Jour. 807. QUAllTEIl-DAY PAY>[ENT3. T.SO. Tilt! nialsiug lire i)reniiuin3 priyable upon the regular (juarter-days of the year was a custom m Great Britain as early as ahnut \. D. 1700, the object being to make such payments less burdensome to the insured by dividing them into f mr parts. The practice ceased, however, about A. n. 172(), but was re- newed in A. D. 1782. to facilitate the collection of the percentage duty imposed by government upon all insurance policies and renewals, the collection of which was made obligatory upon the uflicos at tlie time of issuing the pohcies, and ibr which they accounted to government (|uarlerly, receiving a small per- centage for such service. The percentage duty was abolished A. D. 18G9, after which time reguhir rpiarterly payments were no longer obligatory, although the practice is still maintain d to a large extent, especially with annual polii'it.'s C(jutinuel year after year ; policies expiring ctt otiier dates are now comm^.n also. 7.*«»l. These quarterly premiums fall due upon the rcgidar quart(U'-days, and are payable within tlie ensuing lifleeu "grace days," in England and Ireland, as follows: — 4r.\HTi:i{-|iAYrt. )"AY DAV>. LiiHv-niiy Mar. 2') ...April 9th Kiisuing. Mid-smuintr Jiuii,-24 . . ..Inlv Utii " Mu'liiu'lniiis St|it. 25 U(.'t':jl)er i:Uli " f'lirisiimis , ..Dee. 2,'i lanuury Dtli " TH2. The })roi)u.sals for J- .-iiris > ef the Livt',|)nol Othce, dan. 1, 1777, Art. li, r':ad as. follows : — *' On bospeiiking policies ii; ■■ suns are to deposit 1';*. Oi. fur tlie policy, stamp iliity, atiil murk, ainl .iiuU puv the premium to the next (]Uarter-iluy, ami from Iheiioi- for one year ii- n ore, at least; and shall, as l"t ; "" the managers agree to aecept tl.*: same, wake all liUiire paynu-nts annuuii^ at the said ofliee within .'^y/tv'/t days of the day lin.ited dy their respective policies, upon forfeiture of the benefit thereof." Unilei this article, all policies taken out between two (juarter- days paid for the odd time to the next quarter-day, tr-.tirarred usually by weeks, iv. addition to an annual priuinu:; if 'ess than one week intervened no charge wn.s '^•'.ade. C,>uar'.cr-day PUP ««PBP 318 PREMIUM, policies hail the benefit of tlie fifteen days grace for payiui'iit of premiums, which dther policies did wal have; nor wcit; the first- named entitleii to the grace days when tiie company declined to renew. THIS. Ill Scotland the practice in tiiis re.si)ect is tliesaiue; the (j[uarte)-days are ; — ('niKlk'inas Feb. 2. Wliit-iiutiilo Miiy If). Jjiiinniu-^ iliiy \u^. 1?^. Maitiniiia« Nov. 11 . n.-WS OF GhWCE. 7X1. The custom of allowing days of grace after the ex- ]ar;ition of the term named in the policy iiad its origin in a statute (L'2 Geo. HI., '■. 48,!$ 1 2) fur the collection i.f the insuram.-e duty, whieh i)t'ovided tliat the insured by any lire policy, " At the fill "iftlio year for wliicli the same was granted, or witliiii lii'teen daya, aiiii r»o at the eii'l '.>r every MiliscijMeiU year, sIkhiKI pay ti) the iiiMirer one yeiir'f- iliity i I he iii«iirer to r(Miol)t under this clause; hut the courts held that, under the eitVet of this advertisement and the terms of the stipulation, tlie policies were liable until the expiration of the days of grace. Salvin r. James, 2 Kast. 571 ; Doe v. Shorwin, :>■ Camp. I'U : lUcDoiuiell «. Can-, 1 Hayos & Joneg 25i) ; Priicliard c. .Mpnijants and Tiadcsnich'.-J Life In.s. Co., 4 Jur. N. S. .-{07 ; Sirap.son n. Aecidoiital DcaUi Iii3. Co., 2 0. I!. N. S ITm ; 3 Jiir. N. H. 1079, 7H»»ju In i]ic American cas(> of Bradley v. Potomac F. T. Co., 32 I\ld I OS, under a similar clause, where the premium hud nut been paid, liut was tendered within the lifteen day.s, but subserjueut tn the los.s, Held ; " Tjie j.olicy did not altach until payment of th) prendum, and the comi^aiiy Wiis not bound to accept it after the loss occurred." See also 1 Ins. Law Jour. 443 ; 5 id. 817. PAYMENT TO BIJOKEPv. 7Hil. Til England and upon the Continent, insurances, especially marine, are almost universally made tlirough the medium of professional brokers, who assume all re.s]tonsilality for the premium, and are recognized by the companies and ihe couiis. Xenos r. 'Viokhani, 1! He l^anls 29..;; Power r. liiitclier, in D, A: 0. 3(0; 1 \i Ji Ai. 1 I ; V Tom. B N. H. .t)!t ■ 1 Arnould Ins.. pp. 10,S, ]ir,. Bi.t in ur country an liisuranfe broker is not distinguished fi-i. . .\v otlier broker or agent, and as Mr. Philips says : " He is uoi, 'Mself u party in resp(!ct of the irrcmluiii any more than in rc.-.p,H't yS any otht.T liability or claim arising on the contract negotiated by him for his principal, unles.s he iMuanio 90 by special agreement. In the a!)sence of any .such special agreement, tlie parties in tht> policy are such in re.spect to the preiaiuia." (1 Philips Ins. 2()U, i$ .588.) IlIE BUuKEK AS AGE.NT OK THE IXSUKEl'i. He •;-. (ionsidered simply an agent for any party that, may e^iploy .uin, and possesses uo more power or authority than .f VFIWW. •k* 320 THF. BUOKER AS A(!ENT OK THE COMrANY. is cnntidod to him by his princijiiil, or may he r<>quisite fuv the proper perlbrma^ice of his maiuliit. He may be ('ither a special agent for some particular purpose, or a general ageut with more extended authority to bind his principal, in whose name only he can act ; or he .may, ulicn liaving possession of the pro- perty of his principal, liuoome a factor with power to sell, deliver, and receive i)ayment therefor. A broker employed to procure insurance for his ])rincipal is a special ayent for that purpose; his employment imjilies the extent of his authority to act in the premises, and when the insurance is procured his authority to act for his \ ■.ciiral ceases. Iltiuce, if the insured intrusts the money to his ' ■ < U pay the jiremium before receiving the policy from hi; ii. . .-, the broker is ^tili the agent or factor of the insured for the ^.yment of the pnnnium, the position of the broker toward the coiiipany being unchanged. JInrinc Hunk i . Clements, 13 N. Y. .'<3 ; Mutual Ins. Co. c. S'anion, 2 Ins [.aw .Jour. 2St AlexnndtT r. Gerinanlu Iii.-s. Co , .''' Ins. Law Jour. SCO ; Rothscliilds v. Am. Cent. Ins. Co.. fSt. Louis (^ Ap)!., 11 Ins. Law Jour 182; .V. Y Cent. Ins. Co ('. .Vat. Prot Ins. Co., 13 N. V. (4 Kern), SS , overrulnig 20 Baib. -'G8 ; Lentilhoru (• Vorwork, HiU k Uenio X. V. US ; Corning v. Calvert, 2 Hilton .36, t^\ns. Law Times 2!i7 , !' iW, 177, If^O'; Grace t. Am. ('ent. Ins. Co., S. C. V. S., Oct., 18h3 Tlii:: case covers the whole broker question. THE BUOKER .^."^ Ai;KNJ oF BOTH PARTIES. 7S<»;i. The hrokci i.s for sonu' pniposes the agent of both ]iartir.s but not simultaneuusly, tlioiigh he is primarily deemed to 1)0 merely the agent of the patiy by whom he was Jivst employed until the negotiation is dehnitely settled as to its teiiii- lietweeii the parties; he may then become the ageut of the uthi'i jiarty to carry out the teims of the agreement; as wh>ii agent for the insured to obtain the insurance, and sub- setpsenily for the coinjjany to deliver the policy and collect tlie premiinu llu-refor. liclliune '•, NeiUou, i Caines N. Y. 129 . Aoey >■ . Fernie, 7 Alces. k Welby l.')l ;. Davis/'. !>liielil3. 2t! Wend. N. Y 3-11 ; fciiewart c. Maltbee, 34 Wis. ;U4, 351; Youiigliive ' T., Exch. ;t87 , Howe i . I'nion Ahit. Life Ins. Co., N. V. C. A., ',» Ins. Law l.jiir. ISO : <'olwell c Kejstoue Iron Co., 9 Ins. Law Jour. ItiO ; Angell Ins. 50!i i 1 Artiould Ins. 122. IIU; liJioKKK A.*^ AGENT OK THE COMPA.N'Y. 7.H7. Win II ,1, broker is eulrusted by a company with a \ ! PREMIUM. 821 ii ViM policy, aolicited by himself, for delivery to the insured, and collection of the premium therefor, he at once becomes the factor of the coinpany, hiiving its property confided to him for disposal, with iristriiotiuus. imi'lied if not direct, to collect the money therefor. And as such factor he alone becomes liable to his second principal for the proper disposition of the property so entrusted h) him. ShouUl he collect the premium on delivery of the policy, and fail t<)pay the same over to his new prineiital, it will be the loss of the comijany aud not of the insured, for whom he no longer acts. Hence it follows that, imder such circumstances, a payment of the premium to tlie brisker, upon delivery of the policy by him, is payment to the comjiany; and any ])erson making such Itaymeuts to the broker will ubtain a good title a.i against the company. LentiUiorn v. Vorwork xit^ra ; Hij^giiH v. Moore, 3-t N. V. 417; Biickbe*- u. Browa, l'.' Wend. NY. llo; Wiiiie i>. Cbout-au, 10 Barb. M'?. ; Case «;. Mech. Ba ik. Asso., 4 .V, Y. I8fi ; 0.^ Camp v. N'. J. M'lt. Life F-is. Co.. U. S. 0. C, So. Dist. N. Y., 3 Ins. Law Jour. 81) : H )we i'. DnioQ Mul. Lif^; [ns. Co., N. Y. C. A. tupra, six out of se»en juili^i's concurring ; llaynolils o. Glob^ Life Ins. Co., U .S . C. C. D. Mich , EtnmoiH, J. , I C.impb. iVM : 14 \Uii. 101, lil ;Olm|). lu ;, Law of .Mass., makes the brok-*r tlie ageu of the co iipaiiy, aQii it he fails lo p.ay over the premium, he is guilty of larceny. In N'ew York it is fmbe/.zlement. HHH. Entrusting the broker with the policy for delivery and collection of the premium therefor by the company is evidence to the insured, from which authority might b^ presum^^d that the broker was authorized to receive the money for the premium; and this the more readily as the broker receive.-* his brokerage from tlie onin[i;iny and not from the insured, thus lulling the latter to sleep by the reasonable assurance, that the broker, being the representative aud trusted agent of the com- l»any, by payment to him the condition of the contract as to payment of the premium would be properly ctjiuplied with, and his indemnity be duly secured to him in the event of a loss ijy lire to the sul)ject of the insnraui'o, Brydcnburgb v. Lowell, 32 Barb. N. Y 9, 17; Huu ilut. Fire Itis. Co. ». Saginaw Barrel Co., S. C. Ml., .Iuq", 1SS3, anJ authorities cited su/ira ; Lycomiiijj Ins. Co. o. Ward, S. C 111, 8 lus. Law Jour 80.3; 10 La Ann. 78". 789. It is an axiuui in insurance law, that whore either party must suffer by the act of an agent, it must be the party 322 PREMIUM, M'lioae agent lie is. (May Ins. 123, § 122, and autlioritiea there citefl.) TOO. Any une brincjing risks to a company for a percentage, is au agent o.* such company. (Meadowcraft v. Standard F. I. Co., 61 Penn. St. 91.) 791. It was for many years lield, in the New York City . Courts especially, that the broker was the agent of the insured througliout ; and many suits wrre decided against the insured where the broker had pocketed the jiremiums. J3ut under more recent deeisi(>ns the status of the broker has been fixed, as the agent of the insured to obtain the pulicy, and of the company to deliver and receive paviiunit therefor, as jier auihorities here- inbefore cited. PAYMENT IX KIND. rfttJJ. An agreemeni. by jm^ ageii' ♦."' credit the insured with payment of the premium up.ju hs policy, in settlement of a personal indebtedness, is valid in the absence of frautl. Home Ins. Co. of N. Y. c Gilmati, K C. Ind. 1887, 17 Ins. Law Jour. 12; (Jhickering v. Olobo Ins. Co., 116 iUas. 521; lus. Co. w, Neyland, 9 Bush Ky. 430; Ins. Co. v. Colt, 20 Wall. U. b. r.rtO ; Anpel v. lus. Co,, rixe of his farnily, and ctharged such ])remiums to himself in his monthly account willi the oliices. The com{tanies r;onteuded that sucli contracts were void upon their face, as an attempt {<> [»ay the agent's debts with his principal's insurance. ilii.u; A jrenetal iigont of an iii^^uraiicc company niny wnive tlie con. i.iition of tin' |Milioy for i:n>ii prt'niiuni. Uis |joHt'r?< ililiiT from piiriners An insurance agrtit may keep an account current witli iii.s coiiipmy, and he may therein charf;e himself with any or all [iremiums. In such a cane the agent may char;:re hn; ptT.«onal credit with the amuiinl of liiw premiums and credit tiie company as against himfitlf. ♦ * While the defendants' ("i ompaiiies) po.«itioii may be a sound one in llie general law of principal aiui agent, an cKception iias been admitted in the law of iiifiurance, and if tlie agent hud agreed to give credit to the in.f. Am., U. 8. 0.C., Dist. Mass. April, 18 0, N lug. [.aw Juiii-. U.'); Post v. .'Kina Iin. Co., 43 Biu-b. .V. Y. 851; Bullion (1. AnHM-ican Muuml Life, 25 Conu. 'iVi; Hhelilon v. Connecticut Mnt. liife, 2r> Conn. 207 ; TayloL- v. .Mcrclmntd Fire Ins- C). 9 [low. (U. S.) 3!t0 ; llohiiiaoa c. Internatiomil Life las. Co., 42 N. Y. (3 Hind.) 54; Stewart V. AbiTdi'in, 4 Mees. A W. 211 ; Catterall t'. Hindle, L. R. 2 0. P. 3ii8, 370 For advertising . .Scliwarz v. Germaiiia Life lus. Co., Minn., 2 lus. Law Jour. 4 I'J. 7»»}U 111 the caso of the Mutual IJ.'iiefit Life v. Nioolls, S. C. Ky., a special agent, authorized to take and forward ajipli- catious, and to receive and receipt for the iirst premium therefor, agreed to liave a policy SIO.OOO issued to the upplicuul, and accepted a.s payment for the first premium, amounting to S190, a horse valued at S-00, the ditlerence $\0 was paid by agent out of his own pocket. The horse was taken by the agent for his own use, nothing was said betweeu the parties as to how the company was to be paid. The company repudiated the transaction, ami the case went into the courts for settlement. On ajtpeal, the Sup. Court held : "The company was not liable • and the trial court .shouhl have given peremptory instructions to the jury to find for the defendant." TOl. On the other hand, in the case of Hoffman v. John Hancdck Lite Ins. Co., decided in the U. S, C. C, N. D., Ohio (92 I'. S. 161, 5 Ins. Law Jour. 389), where the sub-agimt of the comjiany acce]>ted in pay nient of premium ahorse valued at $460.00; a note payable to himself SU'O.OO; payment of a debt owed by himself to insured #53.37; and a ]iremium note, payable to the company $369.00 ; thus leaving, as the j^ro- vertji of the company, the horse and the prcndum note only. Wlien the transaction was reported to heachjuarters, the whole thing was repudiated, and several lew suits resulted in con- sequence, during which the plaintiff, Hotfmau died ; his widow then brought suit on the policy, whereon Judge Swayue, U. S. C. C, presiding, made the following rulings : 1. An agent caii only bind his company by acts duuo in the way usual in the line of business in whieli he is acting. 2. The acceptance of a horse in part payment of a life premiuni by the agent was ultra vires, and did not constitute a valid contract, binding tho cotiipany. -^^^m PREMIUM. 3. It wa-i ul/rn fires niid a frniid an rosjiectM (lie coiiipfiiiy; riotrinan must hftve known tli'U iicillier 0(X»clwin nor Tliaver (gi'iii'ral agent) liod any niitliority ta eiiior into taid fur by Jones with insurance ]>reiniunis was for/07' his own utavnient of the premiinn due upon renewal of his policy, the agent to as- siuno the jiaynient to the cxmiii.iny. The renewal receipt was given to plaintiif, but the agent failed to report the transaction to the company until after the pro) erty covered was burned, when the report, with the money for the ]iremium, was for- warded. The company on learning the facis denied all liability, and returned the jiremiuni money to the agent. Suit was brc'Ught and carried to the Court of Appeals, wliere the ruling cf the trial court was atlirmed as follows; — " Where, in cunsideration merely of the fettin.'-otrof vlebtp as lielw(-eii the apeni of an inHur.ince company aiid a policy-lioider, the former wronglnjly delivered a renf>wal rectipt to the hitter, the receij)t did not hind the com- panv and the jx)ltey lap^ed." 707. It is worthy of note here that the trial court in its judgment overlooked the fact that " an assured is not boujid by any rules of the comiiany governing its agents, not known to him, or waived by the agent's not insisting upon them." Also that the Court of Appeals overlooked the fact that the agent did not agree to take the harness "for his principal," as the dicta of the courc would imply, but for himnulf, which he bad full authority to do, as the foregoing authorities upon this point amply testify. ji PREMIUM. 325 WAIVER OF CASH PAYMKNTS. 79ft. That a duly authorized agent of a company can waive the stij.ulation of the policy reipiiriiig paymetit on dolivory is beyond all doubt, as wlion' the insured pioposeil to pay tho premium at the time of receiving the policy, but the agent asked him to " let it lie and he would call for it when he wanted it." It was still uncalled for when the property burned. Htdd a waiver of the condition. 20 Barb. N. Y. 46S ; 8 N. Y. 153: 2 Dutch. N. J. 2B8; Shear v. Phoenix Mat. Life Insurance Co., 4 lliin. N. Y. SOU; I'eun, las. Uo. v. Carter. .S. 0. Ponn. 1887. Notwith.standingthe condition of the policy that no insurance, whether original or continued, should be considered binding until the actual payment of the premium, it was still com- petent for the company to di.sregard thi.s condition, and upon any removal of the policy to waive by parol tlie payment of the ciish premium ; and the waiver could be by the company or any of its authorized agents by deliv(!ry of tho policy without requiring payment of the premium. 20 S. Y. 4W ; :i5 id. 151 ; 20 liarb. 4CS ; 2.5 id. 1S9 ; 4 Hun. V.Y. 800: 12 Wall. O.S. 285; 20 iJ. 500 ; 7 l{. I. 502 ; 2 Dutch. N.J. 208 ; 42 Me. 2.'<9 ; 25 Goon. 207; 24 Ohio St. 345 ; 43 .\lo. .38 ; Hroom's Leg. Max. 547 ; Howell v. Knickerbocker Life (Jo, 44 N'.Y. 276; a. c. 3 FU.b. 2«2 ; Bap. Churcli v. Brooki.vn Fire lus. Co, 28 N. Y. 153; 19/,/. 305, Per contra: Foudrinier v. Hartford Ins. Co., 15 U. C. C. P. 415; Mutual Company eannoi di?peu.so with condition. McGillivray «. Pruviacial Ins. Co., 13 Moore's P. C. Cases 87; 18 las. Law Jour. 289, 717. NOTES IN PAYMENT. 71>0. The acceptance of a note for the premium is a payment of such premium and performance of the condition of the policy. 14 Mass. 121 ; 5 Ins. Law Jour. 820 ; 25 Barb. N. Y. 189 ; 20 id. 4G3 ; 3 Kent Coram. 200 ; Biisli Ky. 130; .\griciill. .\3sur. Co. v. Graminon, 3 L.N. 19; Casey v. .Vaj,'le, 2 Abbou U. S. 150 ; 1 Philips lus. 201, for authorities. A failure to pay a note given for j)reniium does not always affect the right of the iu.sured to recover the whole sum insured. 101 Mass. .'),53; 32 Ind. 447 ; Klli.s t-. Beaver 4 T. M. Ins. Co., 21 U. 0. C. P. 84 ; Sorms V. OanadaF k M. Co., 2J U U. C. P. 75; Curtin v. Ins. Co.,S. 0. Gal. 1889. The note must be the note of the insured, and not that of a third party. 1 Philips Lis. 209 u. ; Mat. Ben. Life loi. Co. v. Davia, 12 N. Y. 309. 326 PREMIUM. TllllM. Wlii'vc tho Tioto pnividdd that the pfilif3y should be vniil ill CI181' that it was not paid at riiaturity. ll'dd : "By agrooiniint of tlio partios, the i)ayim!iit ot the noti'. was a coiulitinn sub,se(|>ient ; and to cnalile tho insurors to work a forft'itiDv they uiiwl, on tlie day tho 110(0 bocomes due, diiiiiig the business liouM of tlie day, dL-inand ])aynic'iit, and, if not paid, diiclare the policy forfeited. In absiMico of sindi de- mand and declaration, the ])olicv must remain valid, and the note liec.nmo a mere debt." (2 Cincinnati Sup. ('. U. 321.) For other jioints relative to notes taken for insiirane/C pre- miumy, see May Ins. 688, et seq. itiKs NON Jrumicus: sunuavs, holihws. SOO. Where the premium falls due npon -^uudiiy it may be paid (HI tho Inllowing day, the rule a|i])ertaining ■■> negotiable notes entitled to grace, that pMyment must be made on the day preceding the last day of grace, when that day happens on Sunday, not obtaining in other contracts. Held; "The law authorized the postponement of j)aynient until anv time on Monday, for Sunday was not a day for the perlminance of contracts and iloing of .secular business. Had the premium been tendered on Sunday there was no obligation to receive it so it did not become payable until Monday. Huiumond /• .Xmeriean .Mut. Life Co., 10 Oruy Mass. 300; Campbell v. iDtenuilioiial Life Assiir. ISoc, 4 Kusw. X. V.. S C. 208. This citse contains an elaborate resiiiiu: of the iiistiiry of the Siindav l.uw, so-called. .Vialter c. Hush, 20 Wend. N. Y. '205; Ligb r. Knickberbocker Lite Co., M I,u. Ann. 4.HJ. As to holidays, no doubt exists as to contracts made on such days being valid. All that the law imjiorts is that business laws and requirements cannot then be enforced, so thtii. where bills without grace, premiums fnr insurance or other ter''i pay- ments of money, ftdl due upon Sunday or legal ludidays, they are not payable until the ne.xt day, thotigli payments made on those days would not neces,sarily be illegal. L'N'DEK VOID POLICIES. HOI. Where, from any Ciiuse, fraud excepred, tho risk assumed has not been run, whether owing to the fault MEMORANDUM AKTICLE8. 327 plensuro or will of the insiirod, the preniimn, if paid, shiill be rtaimied. Rut if the ri.sk has once comnioiicod there, ahall h(» no roturii of iho preiiiiuiu. Tyrie v. Fletcher, Cowp. OOG; Steven'on c. Snow, 3 Burr. 21^7 ; Fowler v. Scottish E iniiahle, 4 Jur. N. S. ll'Jfi ; Amlcrson v. Tliorut.on, 8 Kxch. 425 ■ Miilvny i.. (;oro Dial Mat., 'JS U. U. Q. H. 42'1 ; Bleakley v. Smg. Dist. M. Iiia. (,'o., 18 Oraat Uliy. 19H ; Ulsrk c Maiiuf'rd. Iii3. Co., 2 VVooJ & Mia., O.C.U S. 47a. UNDEU FUAUUIJLENT rOLlCY. HOti. Fraud upon tho. part of th« insured or his agent will prevent the necessity for return of the prenuuni paid, even thouj^jli no risk has been ru?i. 8o also where the insurance may be unlawful, where neither a oouit of law nor equity would entertain the suit under the policy. Prince of WaU.-a Iih. i'o. v. PKlmer, 25 H^a^r 605 ; Lowry p. Bourdieo, Dou(?. 4«8 ; McFaiil v. Montreal Ids. Co., 2 U. U, ii. B. 61-2 ; Gray v. Bima, 3 Wash. O.C. 276. MEMORANDUM ARTICLES. 8(>.) H07. Articles required by the stipulations of the policy to be sjiecificall}' insured are termed '' mciuoraadmn articieti." HOH. These memorandum artuicn' differ materially in dif- ferent countries and different policies of the various companies. 328 MEMOIiANDUM ARTICLES. In tlic Nt^w Zealiiiul policy tliem* articles are covureil liy the term "j)ernoual})ivpertfi i>feveri/ (fescriptioii." HOU. WhtjH! a policy Htipulateil that "jowcls, plato, nuulals, atul utlicT turii)siUo3, paintings and sculpturL!, shall not be included in any insurance nnlesM sjx oitiod in the policy." i\in<>njj; the itcnvs of huusoludd furnitniv dninicd for, M'cro "firejn)rtriutt< irifh lliiir fi'iiincH, and twcl'rcach tiilvtu- lea und table npov)is, and a mlvcr smjar'tonris." The court char<,'cd that altliouj,'li " plntt; and paiutiiKjii" wore not covered by the policy, unless opuciiicd, yet he doiibtcd whether the condition could 1)0 njiplied to the portraits ov silver yjioons specitied iu the claimant's s.hedulc (L' IJall N. Y. 4'Jt),) >*IO. Pi.ATK iiH'ludes all nitides for hoiinrhnhf jrvr- posKt* made (jf i((:e, tifiin'iilive paiiitiu;^, !'tiiciU and fiiiicy IliKiriii;^, over the ci.i8t of plain puiiiting, plastering, ami llooring," Other'' odil '• fresoocs tir wall decoratidiis exceeiliiij: in value tive ilollurs per (^^jiiare yarJ." W13« Oas: yencraiiiir/ of (jof, in this connection, would iiicliidt' iho 2>iiteiit (jas-niitchi lies and " rarhurefteiv" for increas- ing the intensity of the ordinary gas-flame, by passing the gas through naphtha, benzine, or similar articles, the reservoir of which is located in the building. MI4. Pdtevi gaH-macMnes would be embraced in this stipulation if "within vx contiguous to the building." Where the vanlt or ga.s-house containing the reservoir is fifty feet removed, it is deemed not to increase the hazard. FIXTUKM. 329 Nin. FRNCK.a AND OTHF.U YAUI) KIXTUUKH, IIKKENIIOI'HKS, PKiviKH, AUHOKS, or out-lioiiHes, uro not covorcd uiik-HS Hpccilic- ally imnii:(I m tin? policy, Hlil, .Stoke i'uunhi'kk \vill incluilo niovulilu rlmttols, gt'iii'mUy, such as may bo ust't'iil or micosHary to ihc liiismesfl, Rn "^liow-rast'H, (li'skn, comiloi'H, cliiiirs, utouliH, lookiiii^-^^liusstjs, Ri. . ujinois for uhc, vvlicii wiiliiii tlio ijivsciibctl ditiu'iisions, stoves, scales •when movablf, triickH, oidinnry tuols, antl all similar ])ro]i<'rty fuT unc, ami woiihl not bu covoreil under tho jilirasc! " Hlore lixturcs." .Fancy gluBs or othor sij^ns, in an ollioi), Would also bo nicludcd. **IT. Safe-s oto not included in store funiitvre. FIXTURES. SIH. Much confusion has existed anion^ fire nmliTwrltcru as L(i what con'^titutcd '• lixtiireg " under that, term w1 ii tnund in the policy, and the law givt.-s but little aid in detormininy the donbt. The authorities are far from being harmoniou«. HIO. [t would 8erm to be a palpid>lo misnomer, so far as the law is concerned; the term "iixtures" in its nidinary legal signification ia oxyiressivc ot the net of annexation, as that wliii'h is fixed or attached to sometliing as a permanent apjiendage. And when articles are removable-— not jiermaneiitly annexed — they cannot be called " fixtures." Hence it i^, here ns well as in some other casost in the policy, the term is not linnted to the technical legal definition of the word " fiirJures," In cases of doubt, great weight must bo given to the a:^tual or presumed intention of the parties ort.^cting the structure claimed as a " fixture." Dooley V. (Jriit, 26 111. 561; Ogden v. Slack, 34 irf. 622; Kelly v. Austin, 46 /./. 150. W20. The t rm '' fixluren " is always n])plied to articles of the nature of personal property. (4 Benn. F. In.^. Cases 485.) M31. " By the term 'fixtures' are denoted those articles which were chattels, but which, by being physically annexed ^HSiwmi* 330 FIXTURES. or afTixed to real estote, became a part of, and accessory to the freehold, and the proiierty of the owner of the land." Annexatieu by screws, bolts, nails, or even by tacks, has Iwen lield to constitnto sufficient fixing to make the thing so attached part of the freohold. Where till' attacluiieut is but slight, and does not enter into the ])hysical construcLion of the reality, the natiu'e of the article and attending circumstances must decide its status. A church organ, under a mortgage, lias been held to be a " fixture." (Cha)iman v. Union Mutual Life, Appell (.'ourt, 111.) Hill, Fix. 13,21, 26; 20 Barb. N. Y. 407; 14 Allen Mass. 177; 13 Mich. 134. ^32* If the only impediment to the removal of any particular thing is its own weight, it is not a "fixture ; " but a colossal structure, resting by its own weight wpon a pedestal, is a '•fixture." (2 Kay & Johns 536; 16 111. 480.) Haa, A cistern standing on blocks, in a cellar, was held to be a ''\fijctv re ; " but a cistern antl sink^ fastened by nails, or set into the tloor by cutting away the boards ; or a water-pipe fastened to thts wall by hooks, if put into the house by a tenant, tlidugh not considered "fijctures" in law, being per- sonal property, would be covered by the tenant's policy " on fixtures." (4 Gray Mass. 23; Kill on Fixtures 17.) •H21. The original rule of tlie common law subjects every- thing affixed tt laud to tlie law governing the land; but the general rigjit of removal of certain things affixed to land has grown up into a system of judirial legislation, and instead of being an exception is regarded a.s an ''stulilished innovation upon common law rules. (Hill on Fixtures 17.) H!i»i. l*rivilege of removal is conceded more fully to a tenant occupying premises f(jr the purposes of trade and manu- facture lluin to an agricultural tenant; and again this privilege is more fully granted to an agricultural tenant than to a vendor, upon sale of the property, or as between heir and executor. As ])etween these lattej', growing cnjps, manure lying n})on the land, and tixtui'es erected for the purposes of trade and manufacture, pass with tlie land. 19 Conu. 154; 14 I5arb. .N. Y. 602 , 40 Me. 300 ; 16 Ohio St. 446. FIXTURES. 331 TRADE FIXTURES. M3 ■• J'liat a lime kiln is a necessary inipleiiient orjix^ire for Liirning Jinie, witlioul wliicl' tl)e LusineaHor trade of burDirig lime cannot be carried on,Rnd is a trade fixture, however firmly it may be attached to tlie soil, aud is to lie regarded ae personal property.' Hilt »n Pixt. 3fi i 9 Cowen N. Y. 63 ; 4 Masa. 35'J ; 3 Johns. N. Y. .5 , i 7 id. 116,4 Waits Pa. .130 ; 2 VeU-rs U. S. 137, 144 ; 4 Pick Mass. 310 ; 11 Vt. 133 ; 30 id. 443 ; 32 id. 372 ; 4.'-) id. 317 ; 20 Wend. N. Y. 630 ; 33 Pa. Si 522 ; 79 id. 403 ; 10 Harb. N.Y. 157; 2 5 id. 4^'^; 40 Mo. 91. ^ttiT. Whatever a tenant affixes to a freehold, A»r the purpos en of the trade for lohkh tlw freehold is oceupled^ he may remove at any time before the expiration of the tenancy — the law holding it not to be "fxtures" but personal i»roperty ; yet, as bctwei-n the tenant and his insurance, the same items might be "Jixtares,'' to all intents and purposes, and so oijvered by his policy. (1 Denio 91 ; o id. 527 , Hill on Fix. 18, 20.) ^tSH. Annexations for ornament, or domestic comfort or convenience, as gas-fixtures, gas-fittings, rhandeliers — lajiable of being removed without injury to the house, or leaving it in worse condition than before such annexation — may be removed by the tenant, before the expiration of his lease, and may bo insured liy him as " fixtures." Hill on Fixt. 19 ; 9 Oa,wy Pa. 522 ; 10 Riclid. S. C. 135; 9 Ins. Law Jour. 589. H*J9. Gasfudures, water pipes in the null, gas and water jripes h\d in the ground, are "Jixtures" in law, ami go with the realty. These cannot be removed by the tenant, though put in by himself, except by the consent of the owner of the freehold ; and without such consent for removal, the tenant has 332 FIXTURES. no interest in tliera after they are put in place. (l.&WTence v. Kemp, 1 Diier N. Y. G83 ; McKeago v. Hanover Ins, Co., 81 N. Y. 41.) S30. Stork fixtitrks are trade fixtures, including shelving and tlie glass doors thereto attached, if an}', counters, drawers, stools, and all similar property, permanently fastenerl to the premises and pertinent to the business, whether in or out of show windows, and which may be used or intended for the purposes of business by the owner. In heavy nicrcuniile establishments, /i.re'7 scales and hoisting apjiaratus by hand would also be included. In Ohio, store. Jixtnres, when the property of the owner of the bnilding, are held by law to be covered by a policy on the building, without furthur specification, and regardless of any restrictions in the policy. K!fil. Signs of wood or metal, or when painted upon the building outside, are not included in e[t\nn\pxtures or furniture ; nor is a siijn painted on the building included in a policy on the building. Hii2. Furniture and movahles are chattels, and are not covered by a policy on /z^'^in'es. Also a fountain fixed upon the counter has been ludd as furniture, (Fore v. Hilliard, 03 Ala, 410.) Pianos and billiard tables in a l>illiard haU, held to be I'urniture. (Sumner v. Blake, 59 N. H. 242.) PLATE-GLASS Hlt^. In doorg, windows, or show-cases, or mirrors beyond a specified size — three feet square — or stainccl glass, must be specificallv named in order to be covered l)y the policy. Coramoii (jlass, even when of large size, is not to be considered as plate-r/lass. In th(^ case of the Royal Ins. Co. et al. v. Westniiiiiter Fire Office, for co-contribntion to loss upon a " building," where a portion of the roof was fitted with stained glass, the question was: Did a policy on the "buihling" cover the "stained glass" roof ? The case was tried in the Q. B. Division, Baion Pollock BUILDER 8 RISK. 333 presiding. The jury were discharged, aixl decision left to the learned judge, vho decided as follciws : — The questioji ti.irned upon the liuigiiiige of the policy entered into with the }yest- minsfcr Ollice, which showed tliat "the huilding" was the Bubject matter of the insurance. The stained glass in question performed a tlutible purpose, as lir.st of all it ])rotccted those in the restaurant from the weather, and secondly, it foruKnl a higlily ornameutal decoration. It was, iu fact, a highly exjieiisive work of art, and the essential object of it was to attract llu! (>y(.', and give additional beauty to tlie building. It was nfit requisite fov the ordinary purjioses of a building: and he came to the conclusion that it could not necessiirily be cou- sidcn.d as coming within the words of tlie pnHcy, " tho building." lie was strengthened in this conclusion, luuking to the fact that these decorations were not contemphited in the first instance in the erection of the building, and that a separate policy had been effected upon this stained glass. He must therefore give a verdict and judgment for the deffiiilanta with costs; but considered that the i|iiestion had very ])ro]ieriy been brought before the Court. SJJl. Fkkscokd walls, ornamentations in stores and dwellings, such as carving, gilding, stucco and similar work, must bo specitically named iu the policy, or it will not be covered. BUILDER'S PJSK. HfOi. Builder's risk, without consent endorsed upon the policy, exceitt as stipulated therein 'HOO), would render the contract void. When the policy stipulated that if the insured premises were used for the purpose of carrying on therein any trade or occupation of the class denominated specially hazardous, it fihould be void unless certain conditions were complied with. Among the hazardous class, carpenters were named. Hki.ii: "Tliiit this tprni Imv' no relterence to tlie einploynirnt of carpenters in iiiuifini^ ri'jiairn or new ereK.uons on the preuiises, when they were not used a? a norkshoij Lylheiu.'" 334 EXCEPTIONAL RISKS. Held, by the Maryland Court of Appeals : — " When it is necessary to employ niechanica tlie year roiinil to keep a building in thorough repair, the building lieing in constant use for the pur- |)08es of business, such cniploynient of mechanics to keep up repairs doea not rt quire a special • builJer's rink.' But the fact should appear in the policy." SS5il. A builder's risk in contradistinction to a carpenter's risk is -wlieii a bnilding is placed in possession of the buikler for the ]mrposc of rebuilding, alteration or extended repairs ; while a " carpenier's risk " apjilies more specially to light repairs and alterations. The former is usually under a contract ; the latter by day's work. The policies usually allow from 5 to 15 days in a year for repairs without requiring notice. (HOC) 2 Ins. Law Jour 620, 643; 4 id. 3,5, 1,5, 19. BETTERMENTS. N!SG« Betterments or improvements are additions to and alterations of a building which render it better than mere re] airs. When such improvements are made by the tenant under a special covenant with the landlord to that end, they are the property of the tenant, and he can insure thi;m ; but if there be no special agreement in the premises, sucii better- tnenttf, being permanent, cannot be removed by the tenant ; hence, he has no insurable interest therein. (171H.) 11 .Me. 432 ; 23 U. 110 ; 24 .'li<-y.—0-) " This company shall not bo liable bv \ir!uf of this policy for money, ballioH, bills, noUs, accounts, deed.i, evi- dences (if debt or securities of property of any kind." 8Ii8. (2) " Nor for for any loss in buildings unprovided with good or sub- stantial brick or Btone chimneys." 839. C-^) '* Nor in coiisei^ueiice of any neglect or deviation from the laws or retiulations of police, where such exist.'' HiOm 1) Money is coined gold or silver. Bullion is usu- ally uncoined gold or silver, iu the mass or lump; but may iuolude coined metals when reckoned by weight or iu the EXCEPTIONAL RISKS. 9m mass, ns foroign coin at the mint. Philips Ins. 223, 249.) (2 Metcf. Mass. Ij 1 HfLl. Cold and sili:er coin, bullio)i, dlamomh, nntl je.iods were formerly covered on the continent of Europe, under transport policies, as mer'chandise for transportation : such puli- cies, from the nature of the articles, being valued, as no value other than the actual one could be agreed upon in case uf loss. The earliest English policies against loss by lire exclude these articles especially. (Park Ins. 21.) H4*2' Bills, bonds, notes, accounts, deeds, and such like are only endetices of valne — hence, losses of such are consequential not direct; and beyond the value of the saleable material — which classes them as goods— they have no insurable, value. (Sumner C. C. IT. S. 434 ; 1 Philips Ins. 223, 24y ; 2 Hall N. Y. 490 ; Hopkins Mar. Ins. 235. H-i3« The Hambiirg policy excludes from insurance the following also : — " DocuincntH ami paptTs of value of all kimlH, jewols not 8ft, j^eniiine poarl.O; gtiiipowder, gun-cotton and manufaiHoriea tliereof, and tac-lwiiuig cetablishiTieiitH." H4'l. (2) " Such a general condition as this second sec- tion imposing a burden upon the insured will be strictly con- strueil, and not enforced against the insured unless misrepre- sentations were luade in the application. Ml.5. (3) This third stipulation is — Held: To rofer only to articles of an intrinsically dangeronw iiature, a8 liable to cause injury accidentally or by carelessness, and not to refer to liquors, the tralKc in whicli was made illegal by statute." DATE. 84U. Comlitiuns of the policy. — " Ami said Inanraiice Company lieri'l»y a;;rei. to inuke good unto the said fissured _., oxpciitorn adiniiiisirHtoi's anil !iM8ij.^ns,, all such i)nrnedialo loss or damage not exceed- ing in anio int the sums iuHured, nor (he interest of the as8ure. Where the true solar time differs from the time obiurved in maimfacluriiig establishments, the former being faster than the latter ; Which shall be deemed the correct time under the policy ? (^iOl.) Sf53. Where a tire commences in a building occupied by several tenants at 11.30 A. m., but does not reach the property under insurance on same premises until afrr>r twelve o'clock noon ; yet the fire has occurred in such a maimer as to {)revent the removal of the insured property : What Ls the liability of the insurer ? (HUH.^ HSili. Many sinular delicate cases might be imagined, and might, some of them at least, occur. But up to this time there are no precedents upon American coiirt records deciding such cases. (HOI.) May Ins. 487; Groiissel «. In?. Co., 24 Wend. N. "S. 209; Walker n. Protection Ins. Co. 29 Me. "17 : Bradlie '•. Ju'riJi-ii Ins. Co., 12 Pi;lers U. S. 373; Ainould Ins. 452, Case of Mamony v. Dunlop, 1 Term li. 2(10. LEGAL YEAR. S54. At common law, the term "year" in a contract signifies a calendar year. In ordinary contracts a "month" w "• "•"^mmrmmmf^mmiHHIIft 338 LEGAL YEAR. signitioH a Jvvar and not a calendar inontlj, imloss there was somutluiif,' in its terms, or some custom of the trade in rciference to which it was made, to rebut the j)resuuiption and show that a calcmJiir montli was intended. ChUty ('oiitr, 5G4 ; Alolloy, de Jure Maritimo '288 ; 2 Ins. Law Jour. fi40. ^55. In oases of bills of exchange, promissory notes, and other niercaiitik! contracts, the rule is otherwise, and wlien rnoydJia ate named, citlemlar months are intended. In New York the term month, used in a statute or contract, or any instrument, is construed to mean a calendar month, unless otherwise exja'cssed. In computing the time, the day of making the contract is excluded. N. Y. Rev. Statutes 606, § 4, Reviser's Notes. *ili6. In I'ennsylvania the general rule ns to computation of time is, Uiat \\ hen by an act of Assembly a given number of days IS allowed to tlo an act, or the act may be done wiihin a given number of da3's, the day on which the rule is taken or the decision made is excluded. HS7» Where a policy wa.s issued on the tliird day of September, 1797, and the death uf the insured happeiiing on the saaie day, in the following year, just after midnight: The policy was worded "from the (hdj of the date," no hour s])ecitied, which Chief Justice HuLT decideri excluded that day from com].iutation, but which would not have been the case hud the phrase from the date oimply been used. Second: ''That the law makes no fraction of a day ; therefore, the policy was binding until tlie ch)se of the day on which he died.'* Howard Case, :; Sslk. 62"; ; 1 Philips Ina. 5U, n. 6 ; May Ins. 484 ; 2 Parsons Ids. 445 ; I Lord Rayni. 480. Hli7iu A day begins and ends at 1 2 o'clock at night. To commence on a given day begms with the day unless uu hour be named, HUH. Again : Where a firo policy was expressed to take effect //w/i February I4th io August 14th. Between ten and eleven o'clock on the night of August 14th, a fire occurred on t,he premises, which did the assured j£ 3,500 damage. The plaiutifl's claimed to recover this loss, on the ground that the DATE OF SUUSCKll'TION. 389 policy romainotl in force till the last inoniont of Augutjt l-itli. Def( rcsist>(l, on the groiiiul tliat the policy l)cgan ou Febniiuy 1-itli, and determined on the last niomeut of Angwst 13tli. The court held that the policy was in forco till the end nf August 14th, and gave judgment for plaintilfi. (>4^'i7ii.) ^*."S». The Chief LViron of th ?! Court of P^xchequer, in de- livering judgment, said : — "TIktc couKl lie no (loiil)t lliiit, upon Hip author, iv of ailjii>liroil cafos, \]\e Utli of August was covered, ami it uiiglil In' tliut the 14th ol February waa also covered " Raron Marun Haiil that, " in his opinion, botli days were covereii, hut certHiiilv the lltli of AuguHl wap." ^^00. This distinction has been overruled by subsequent decisions. The Court of King's Bench has decided that " from the date " and " from the day of the date " mean the sauae thing, and they are to bo taken to be incliuilve or exclusive according to the context or subject-matter. Isaacs r. Kojal Ins. Co., 5 L.ll. Ki. 290, 3i) L T. K\. 189, 18 W.R. 982, 22 L.T. N.s. tt.HI ; I'erry c. I'rovideiU Ijifo Ins. Oo, 9.1 .\Iii«. 16J ; lOH Mass. 242; Atkins ». Sleeper, 7 Allen Mas.^. ^87; 1 Philip:! Ins. 372, j 921; Knigbt «. Faith, 15 Q. H. e!i;t ; 2 Parions hid. rt5 ; Johnson r. lI;nnholt Ins. Co., 91 III. 92 ; Fiiemon's Ins. Oo. ('. Powell, 13 U. Monroe 311 ; Fletcher (■. Im Co., 18 Mo. 193; Howell c. Proiectio!) las Oo., 7 Ohio 11. 2S4 ; Fiiruuaiu i'. Bradley, cited by .Uarahall, p, 501 ; and hy Park Iffii > see Abjlraci ol' tiilinenial bawi ou this subject, to be found in the '' Anii'rioan Kxchan^''» and lleview," Pliiladelphia, issue of .March, 1881, and comments thereon by Or. Fowler, Editor. Tliis decision of Lord Holt gavti rise to tha phrase.g " both iucliisive" and " first and la.st days included," which are to be found in both marine and fire policies. (SlH,) Httl. The decisions HfSH. HSIIf would also seem to imply that the liability of insurers for loss by fire is co-existant with the coinmencr/incut of i)ie. fi.m, without reference to its duration, as nothing is said as to the e.xteut to which the in- sured coidd recover, though evidently the fire burned until after midnight. DATE OF SUBSCfilPTION. HttS. The date of sixbscription of the policy is only pre- aumptive, not conclusive of the facts it attests. The actual 340 CONSUMMATION OP CONTRACT. date of execution iniiy \)o shown by parol evidence, tliongh difti'reiit from tliui wliidi the policy bears. (KMl.) 1 Phili])a las. 2 1, J 25 ; 2 Fursona Ins. 43 ; 1 Diier Ins. l)it won. If the written ,k will be a.ssiiined to have taken (dl'ccl fiuni .sueli tlate, no rea.son ajipearijig for a ililferunt consinietion. (..HO.H.) 1 I'liilips Iu3. 21, S 25; Anncsley Ins. 48; Urowii r. llHrltonl Ins. Co., ."t Day 58. ^*^»*l. The (fate of an in.strmucnt is so far a material ])art of it. that an alteration of it by the holder, after execution, will void till' instrument. (iMJ7.) 2 Duer Ins. 218; 1 Philips Ins. VI, § 115 ; Lanfflinrn c. Coldgan, 4 Tiiunlon 330 Nicliols V. JoUnsuti, in Couii. lOJ; 2 Boiiv. luiw Diet. '>\i>. CONSl'MMATION OF THK (.ON I'lJACT. 800, Where a j^toposal is made for insurance upon pro- perty at a diritance, il may happen thai, at iht; tiaie of making such ajjplication, the properly has actually Ijecn de.stroyeil by fire ; it is usually held to be a sullicieiil eonlraet !/ both paiiiea were ignurunt of the loss at the time of ci>n.summalion of the conimct. (HOT.) 1 Philips hw. 512, 5 !'21 1 Biiir u. Gibson, 5 Mies, ,v- W. E\d\. .IW ; H dlock v. Comim'icial lu?. Co., 2 Dutclj. N. J. -HH ; Commcrciiil Ins. Oo. / ■ liiillock, ;! H. 645; Eiuerigoii Ins. tijl ; Bmiyou Iiu. 49; 2 Viihii-'' Uimira. "J! ; Wliittaker v. Ins. Co., 2£» Biirb, N Y. .■!12 ; Uay of Diiveiiport w. lus. Co., IT Iowa 27(5. ^iCJ7. When the property is distant, itud its sfiitufi unknown to either party, an insurance against lire will bind the insurer for a loss occurring before the date of the contract, if ,^arh apprars, cither from the policJ/, or from attinidiyig circum- stances, to have been the intention of the parties; upon the well recognized theor}' of " lost or not lost," in the marine branch. {Hiiii.) 3Ainer. II..W1 ; I Diicr Ins.SD; Bunyon Ins., 2nd Edition, 53 ; Mead c, Davidson, 3 Ad. & Ell. Hm; Fitzherberl v. .Mutiier, 1 Term It. 12 ; Pmiiklia Pire I. Co. v. Coll, S. C. U. S., 20 Wall. U. S. 660, 4 Ins. Law Jour. 550; Angel v. Hartford Fire Ins. (Jo.,N. Y.U.A.1875. ^ai liTilin^iV II I I I CONSUMMATION OF OONTlUrT. K4IN. But, \f the ptopertj) was . Wiioii an ugrtsojiient is made botwoon parties ))y their agents (Ml tin- L'Otb, and on the night of that day tlic jimperty was destroyed by fire — on tlie morning of the 2lHt tho policy was executed and delivered in aocordaiice with agreement — both parties being 'ignorant of the loss. IT(;K1 : a valid contract. Jtiillock V. Ins Co, H. (J. N.J.. 4 flenn F. I. ('iiat-s 105, 210, lioiitlyi'. Colnmbift Ina. Co., 17 N. Y. (3 ^milh) 421 ; Franklin Firo lus. Co. c Colt, id Wall I'. S* .^6, citiMl 4 h\». Lrtw Jour. Ml. STO. The effect of tliis ruling is : that where the property was in existence at thi- time tho contract was made, tlio com- pany will be bound by the act of its agent, though the policy wa3 not issued until after the fire, even if known at the time of such issue. But where there was no piojerty in existence at the time of making the contract, there was nothing to insure, hence no valid contract could be made unless under a sjieeial agreement, both parties being ignorant as to any h)S3, — like tho " lost or not lost " clause of the marine policy. H7I. Where an agreement had been made for insurance on 30th of March, and priiuiiuni pai'l, though the policy wa.'^ not made until some ilays thereafter, in the meantime the property was burned ; a policy of the same date as the day on which the premium was paid was made and delivered to the insureil. Held : " the policy took eifect ; by ndation from the ilay of the date thereof." And the agent had full authority to make tho policy after the tire, according to the prior agreement. EUiH I'. All.any City F. I. Co . ;.0 ^f. Y. J()2 ; Woody o. Old Dominion F. I. Oo. S. C. Va., i:i West lus. Kev. B22 ; 4 Henn F.I. Cases U»j, 210, -lOii. ST3. Where a company offered to insure upun cerUiin terms, by letter, and the insured accej)U}d the terms and inclostid the prtimiuni. Held : That the coutract was consummated from 342 UKNEWALS. ii;^li tin' jirojwrty whs l>unic(l lielore tho roceijit of tlie reply by tho coinpiitiy. I Philipt Ing. Kt, $ IG ft itq.^ \) llDiriirit U.iS. 390; A Ins. Law Juiir. liH!). W7{|. Where jipplieatiidi wwa mvdo Miiroh .'inl for insuiunco to taki! the jihicu nf u policy oxpiriuj^ Aliiivh llllh, on which day, bt'foro noon, tho conjpiiny nuidti out thu policy luul nmiUid it to the a^eiit for delivery. Tho proporty biirtied March ll^th at 8 A. .\t. The eonijtany, on he(irin<; of the 1(».hs on Miirch 15th, tole;.,'ra]>lie(l to the a>,'ent to return the policy, as " the risi^ had not been tiik'-n when it burned." ilehl : "The accoptiince of the jToposition to insure ci.ini)U^ted tho contniet," and after the policy had been forwarded by mail for delivery, tho contract could not be rescijided. (IIOJIO 'J'hnt " In the Hlwence of fraud or f^oncoalment, tho coiu[)any was as much b,>nnd for the loss as if it had occurred after the delivery of the poliey." Ameripan Home Ins. Co. r. Fattj-raon, 'i8 Iml. 117; Western v. Oonesee Ids. Co., i Koru. N. Y. 2.')8 : '29 Harh. N. Y. 312; Eanit"* v. Hmni) Itia. Co., tJ. S. S. C, 6 \m. Law Jour, 6'^^ ; Iu.^. Co. n. Cull -'o Wall. U. S. S. C. MT. RENEWALS. 874. Conlition (if the I'liUni. — " Tiiis in-mi'ttiici* (the riilc nut heing clmr)>;('d) may Ix- cuntimiecl for micli fiirtlier lime an shall liea^reeii on, pro- viilcii the prt'iniuii) ihcrct'or !.■< puiil imd iiii|i)r.>*('il oti this policy, or u rt'(!oipt given t'or llu- M undfrwritor to riMicw it afU>r fX[)ii'ation. H75a. Tho nun-piiynii'.nt of }tr(!niiuni for riMU'Wiil, as in tho orij^iniil policy, voidjj tho nmn'uncH, unless ilistinctly waived. 10 his. Lnw Jour. 8;io ; Phmnix Mm. FiifB Ini. Uo. m. Hinesly, H. (3. Ind. ; Cuckerell i>. Oinuiiiuati Ins. Co., 10 Olilo Ml*; 1 Phili|)« laa. 52, } 7.5. .H70. The exact legal status of a ivnewal, as to whether it is a new contract, or simply a revival and nontinuawe of the old one, has not boon dufiniU'ly si'ttled by the coiwta; the cou- stiuction will depend npou the wording,' of the renewal receipt. N. EiiR. P. & M. lD8. Co. V. Wetmore, 32 III. 221 ; 4 Bean. F. I. Oaacg 05!). Thr rulings in several of the State.? are : — .S?^. In Michi|^'an it wa.s held that each rpvewal <^1 a policy (.)f insurance i.s a ntnv contract, subject to the local la-.v? in force at the time of vni'wul, but in no waychan ; 4 Benn. F. L Caset 736 ; 43 Barb. N. Y. 35. HHl, Of the praZ occurretl, it, under the terms of the policy, became the liuty of ilie a.sfured to give the eame notice that was reqiiiretl under tlie orii.'in(il contract of insurance, and obtain the consent of the company, (1128.) 9 Allen Mai?S- 231; 10 id. 228 ; 8 W. Vii. 605; 6 Ins. Law Jour. 728, J 164, S^2. Notice and consent under the original contract. Notice to the agents of thi-, company, and their constant, wlule the policy was originally in force, could not be regarded as ; *l^%apAUW«nM^»^M>^l'«Wi >i W,»H.H(l-l|t OONTINU0U8 INSURANCE. 345 notice to Iht! company and binding on them under the re- ne'val thereof. SHU. Onusswn to indorse consent on the lyoUcy, But it is not essential to the binding force of tlie consent of the agent in Rueh case, given upon proper notice, that it shouhl be indorsed upon the policy. Pitney »>. Glenn Falli Ins. Co., N. Y. C. App., 4 Ins. Law Jour. 780; Brown V. Ins. Co., 18 N. Y. 381. WAIVER. HS4. If a company, with full knowledge of a risk, renew the policy, any mi.9representation.s in the original a]>p]ication, or omission to give notice of other insurance under the original policy, must be deemed to be waived, and the company will be bound by the cont'act. (1151.) Maryland F. I. Co. v. Giisdorf, Md. C. App., 5 Ins. Law Jour. 3S4; Intemat Life Ins, Co. c. Franklin F. I. Co., N.Y.C.A., 5 Ins. Law Jour. 371, 404, HOB 502, i 1^8, and authorities cited. HS4a. hidorsenients. No indorsements should be made upon renewal receipts ; they should be mad' upon the original policy of \vhich the receipt is the renewal for an additional period. It is better, when the ri.sk at the time of renewid of the insurance has been in any way materially altered, to issue a new policy instead, thus avoiding all occasion for misunderstanding in the event of subsequent loss. In the city of Boston no renewal receipts are issued, a new policy takes its place. CONTINUOUS INSUiiANCE. NS5. Where a verbal agreement existed to the effect that, "I'ntiloneof the parties dissented, the .ontract of insurance .should be continuous, and the company should U)ok to the fur- nisliing of the renewal receiptf. and the collection of the premium as it became due," and t!ie company sub.seqmmtly increased the rate of premium, which increase was assented to 346 CANCELLATION OF THE POLICY, by the iusured. iTt/rZ; That tiie change of premium termin- ated the arrangeineut, and a new bargain would be necessary to effect a coyiiimdng arrangement as before the change, Frauklin F. I. Co. r. Chicago Ice Co., C. App. Mo. 1872, 2 Ins. Law Jour, 609. M85a. Agreement for Renciaal of an existing Insurance. When the iu.sured was about to leave home for a time, anil reijue.sted the agunt of the company to renew the policy in same conipauy and for the same amount upon e.xpiration of present in.surau(!e, but no premium was paid. The agent agreed to attend to the matter, Tiie policy contained a condition that it " should be void if the premium rem lined unpaid ;" also the further provisiou that the insurance might bj renswed for any agreed time " provided the premium therefor is paid and indorsed on the policy or receipted for," Held : That " the agreement was to effect an insurance in future, not a valid contract in preserdi, and contained no waiver of the policy condition requiring pre-payment of premium." Taylor c. I'hoBuix Ins. Co., Sup. Court Wis., 8 las. Law Jour. 851. CANCELLATION. 886 Condition of the Policy- — " This insurance may be terminnted Rt any time, at tlic r(?(]ae.''t of the a,S'tions, and without further agreement, may, under the agreed conditions, withdraw from or rescind the]wlicy. The cancellation of the policy Ijemg thus optional, subject only to the will, wish or whim (jf either contractant, the clause possesses the element-j of equity and equality which should mark every bu^Jine3s contract, but wliich are not present when the stipulations of the policy renirict the right of cancellation to but one of the amtracting parties, and that one tlic company itself; the policy then becomes unilatend indeed, but in a sense and manner altogether foreign to the intent ami purpose of the insurance contract as heretofore u ndeistood. HSH. From " Le Gmdon'" (a. d. 1554) we get the early law upon this subject, guverniug in marine insurance, and thence transferred to the tire branch, as follows, viz. ; — " If it liapjK'ned that the insurers, or any of them, after having sij^neJ a policy, repent or becomt' iiiannml, or i)rt fer not to inMiire u|>in suclj a sliip, they are at liberty lo reAinmire with otlier.s at a j^reater or le^J pT-eminni, hut cannot release themsdvex so as to prevent the sliipper from looking directly to them ; he<;auHe, tx>iiig boiuvi under their own signature, notwitiistaiiiiing all protest^! or asRii^iimcnt.a to the contrary, they shall not be freed without consent of the assured." ((.'leirac, Us et Coutunies de ia Mer.) H.S1>. A policy of insurance like all other contracts may be canceled by agreement of the parties ; and nearly all forms of the modem policy contaiu a stipulation, like the condition above reoiteil ; SHO), 2)eriaitting either party to cixncel, with or without allegetl cause, at their option. GENERAL I'RINCirLES OF CANCELLATION. HflO. The C/Ustomary Kules to be observed in the cancel- lation of fire insurance policies are : — CanceUafions by or>hr of the company are made at pro Tata rates for the time expired, Caiicdlatioits mad'' by order of the insured are made at short rates for the time the policy has been in force. 348 CANCELLATION OF THE POLICY. Fractional parts of a month, where policies for one year or longer are to be canceled, are charged a,4 a full month. " A month begun is a month completed." If less than one month remain, on policies for one year or over, no return premium is paid. It is a custom in cities for companies, after finding the amount of niieanied premium to be returned, to deduct there- from tlie ]iercentiige of commission allowed to the agent or broker when tlie policy was taken. Tlie Nebraska Insurance Code provides for the cancellation of policies by the insured at any time ; the com|)anie3 to return the net premium received after deducting the actual C(jm- pensation of the ag(>.nt or solicitor, and deducting the cus- ttnnary short-rate premium for the expired time of the full term for which the policy was issued or renewed. Tin; LAW OF CANCELLATION Of insurance contracts, as recognized and a2. A dmniirrer on the ground that the condition re- quired £1 terniinution after election and notice, was overruled. Caiii V. Lancashire F. 1. Co., 27 0. 0. Q. B., 217, 453. Sliaa. Where the company instructed an agent to cancel a policy, but, instead of doing so, he only notified the insured of the company's dedre to cancel, and at the same time agretid to let the policy remain until the insured could ellect unotlier insurance. Ileld: "That the pohcy was not canceled, and the company was liable." Goit V. Nat. Prot. Ins. Co., 25 Barb. X. Y. 189 ; 16 Wall. U. y. I'JO ; 33 Pa. Sta. 221 ; 8 Lans. N. Y. 28. HSKt. Where the company declined to continue the insur- ance, on account of an increase of risk, and offered to surrender the premium note without charge ; insured asked for the return of cash paid by him also. Company declined to return the cash, but (jifercd to make no as.sessment upon the note. l*ro- perty sub.se(iuently burned. Held: This was nolico to the insured that tlio c(jmpaiiy declined to assume the "increased risk," and elected to terminate the insurance under their by- law, and thereupon the policy was void. Fabyau v. Union Mui. F. I. Co., 33 N. H. 203. Hii I. Where the agent notified the insured of the can- cellation of his t'olicy, and that he would send a check for the return pivmiuui, but failed to send the check until after the tire. 11: Id : Not to be a cancellation. Franklin F. I Co. i<. Maasey, 33 Pa. btiv. 221, »upra ; 65 Barb Nuw York, 28: H!>la. Therr ntust be notice and cancellation, and not a mere notice that the company desires to cancel. Held : That " notice should ])recede cancellation, but they might Ijc con- temporaneous, and the company could terminate the risk by giving notice and refunding the unearned premium." Alb.my City Ins. Co. c. Keating, .50 N. Y. 402 ; 33 Pa. Sta. 221, tiipra; Grace i;. Am, OiU Ins. Co., 8 loa. Law Jour. (D. B. C. C.) 95 ; 10 id. 779. 84>3i. Af Option of tlie Company. — Where the company's policy provided that " if during this insurance the ri.'^k be increased by the erection of buildiuga, or by tlie Bale or 350 CANCELLATION OF THE POLICY. occupation of iieigliboring premises, or otherwise; or if for any other cause the com[)auy shall so elect, it shall be optional with the company to terminate the insurance, after notice given to the insured, or his representative, of their intention to do so; in which case the company will refund a ratable proportion of the premium (the English clause). Held: That "this clause con- stitutes a com})lete condition by itself, and gives the company an absolute right of election to tt^rminate the policy at any time by giving the notice and making the payment prescribed there- in. That the words, " any other cmise,'" are not to be interpreted by the rule " noscituraaodis," and reference to the preceding specified clause is not requisite to ascertain their meaning." International Life and Trust Co. i'. Franklin F. I. Co., N. Y. C. A., 5 Ins. J.,HW .four. .t71, overruling (.,'ourt ot Uomm. PI., N. Y. City, where it was Held: •' Thr causes (or wliicii the coui(iany could cancel iuu.-jt be of the kind boiore specified in the condition of the policy, and that the Ctniiany could not arbi trarily cancel." TENI»EK OF THE UNE\RNED PREMIUAI. iSlNl. Where from any cause the insured refuses to accept the return premium, a tender .should be made to him. In making such tender ellective several important points should be o)),served. Fird : It must be made to some person authorized to receive it, and should, for the .safety of the company, be made in the presence of a witness. 1 Camp. -177 ; 14 Serjr. and R. Fa. 307 : 11 Maine 475 ; 2 Parson's Cont. 151 Secovd : A tender of bank notes will be good if not objected to on that account at the time of tender. Pick Mass. 639; 1 Johns. .N. Y. 476 ; , 1 Bay S. C. 115 ; 5 Yerg. Tenn. 199 ; 8 Ohio 1 7 ; 1 Rtiwles. Pa. 408 ; C Harr. and J. Md. 53 ; 7 Mo. 556 ; Ala. N. iS. 226 ; 19 N. H. 569. Third : The cxiict amount due must be tendered. (1 Camp. 370 ; 5 Ma.ss. 365 ; 2 Conn. 659 ; 2 Ins. Law Jour. 208.) Tiie produ Uon and counting and actual offer of the money to the party may be dispensed with if, when it is about to be produced and the amount is named, the pai'ty declares that he will not take it bticauso more is due. 10 Cush, Mass. 3^7; 8 Me. 107; 15 Wend. N. Y. 637; 6 Md. 37; 51 N. Y.465: 55 Barb. N. Y. iQ; May Ins. 574. CANCELLATION OF THE POLICY. 351 Fourth: If such tender be inacle and refused, the party making it must hold liimsclf ready, at all reasonable times and proper jJaces, to pay over tlie sum tendered if subsequently demanded. 10 I'iek Mass. Mi ; 24 id. 108. Fi/fh : Such tender must be full and unqualified; that i.?, there mu.st bo no conditions attached to its acceptance, such a.s asking for a receipt or for change. (See third paragi'aph, ffuiyra.) 9 Mete. Mfws. 162 ; 25 Wend. S. Y. 47 ; 23 *,/. :!42 ; 18 Vt. 224 ; 1 Wis. 141. i:>ixth : It must be made at a suitable hour of the day, d\iring daylight. 7 M.;. 31 ; 19 Vt. 587. MIMia. On giving notice and tendering the amount of un- earned premiums the company may cancel the poli(;y. Held : that " In exercising such a right, however, it i.s clearly the duty of the company to refund the pro rata premium before cancellation is complete, as they cannot elect to cancel the policy and still hold the premium. The clause wtniiot by any reasonable con.struction be held to confer that power. By it they reserve the right ti' declare the contract ended and to return the money. Tlie two acta are essential to the can- cellation." .^tna lu3. Co. u. Mnguire, 51 111. 313 ; 15 Barb. N'. Y. 28, supra. Whatever negotiations take place between the parties, until a return or tender of the anu)unt of the unearned pre- mium i.s made, the policy remains in force. (9 C., 221 Pa.) S07. The company has a legal and technical right to cancel its jwlicy by refunding the unearned premium. The plaintiff (insured) possesses no powtir to prevent. The return of the unearned premium is the essential part of the conditions to be performed. This is a pre-requisite to the right lo terminate the risk. Notice without a return or tender of the pre- mium would amount to nothiug ; the policy would reuiaio in force until the return or tender was made. (S95.) ' PfT^ry,iK.ywr'T-w*'W>-'i 332 CANCELLATION OP THE POLICY. Ilathorn v. Qprmaaia Ins. Co., 55 Biirb. N. T. 28 ; Peoria F. k M. u. Itotta 47 III. r>iii; .Kuia «. Miiguire, supra; Iti Pick. Mass. 40; ■l\ ii. 158 : 2 lus.' Law Jour. 200. H*.i7i\» " Call at (he Ojflcc and get ths rcfiwii prcin'nun." Wluii'O tlic insured was uotitied to " Call at the oHice aiul get the return premium," the Court say : " We think it incumbent on every insurance company acting under such a clause in in this policy, to tender the unearned premium with the notice of cancellation. The tender must be held to be a condition precedent, else in case of litigation growing out of the trau. saction the company would, all of the time, have the use of the money of the assured, and he be, to that extent, prevented from effecting any other insurance. We think that justii:e and fair d'?aling reciuirc this, as nothing .short of it will [nit the contracting parties in statu qiw." (Peoria F. & M. v. Botta, .s-a I'm.) Ilchl: " It is not sufficient to say: 'Your money is ready for you, subject to your order.' The act of refunding and cancellation must be simultaneous. There is no obligation resting ui)on the assured to dance attendance at the place of business of an insurance company and await their pleasure. They know when tlitiy determine to cancel a policy, and forthwith, with their determination, they should tender the unearned premium ; until this is done there cannot be, slh we understand the condition, a cancellation." (.^itua Ins. Co, V. Maguire, supra.) HUH. Where notice of cancellation was sent in November, stating that the jtolicy would be canceled on the ensuing 6th of I)ecember, unless the premium was piiid by that time, and on that day it was marked off as canceled, On the 30th Uecember sulwequent, an agent of the insured called at the office and re- ceived and receipted for the unearned premium. The property was destroyed by tire on Dec. 25, unknown to the agent who received the unearned prcniiura, and to the company. Held : That " the policy was not canceled at the time of the fire. By the condition of the policy, in order to terminate the C\NCELLATIO>J 01'' TIIK I'OI.IOY. 353 projioitiuii iif till' ]n'(iiiiiiiii, nml Tor tliis ])urjiosc the coinjiuny •was Ik mild to si'i'k tlif iiiMircil luul UmkUt him the amount.''' H1»ia. 'One \\lio h;is ii imyment to miikc is bound to seek his ri!». Cttiicrlhifioii liii ItrcWrs uikI AgevfH. "A broker cnipldyt!! 1(1 [irociire, nindify oi' have u poliey caneeled must lie r(<,'ardcartiea." titaivlnril Oil Co. v. Triuiiipli lud. Co., .0 in.s. l.,iuv Jour. .5^4. .S!M>a. A lirokcr was eniphiyed to phicc fu'tairi insurance, wliich lit', did. Sub.seqiienlly ihe company ;^'avc notice to the broker of the canciUaliuu of the policy. Jlndl : The notice so given was imt notice to tlie insured, and that a clause in the policy, til ti;e otVect tluit the brukcr should Lie deemed to b(' the agent of the insured in any transaction relating to the insurance, did not affect the question. Voii Weia i>. Scottisli Uuiouaml X:it. liis. Co., .V. Y. Wiip. Court. 1M>0. A broker who effects the, insurance is not the agent of the insured to receive notice of canceUution. (Keller v. N_ Orhiaus Ins. Co., U. S, C. C, Mo.) " As a matter of law, the notice of cancellation to the broker wht) effected the ii ura.nce i.s not notice to the insured. The clause in the policy that the person wlu.> procures the issuance nf the policy, is deemed the agent of the insured, relates and is limiLed to tlie issuance of the policy. ((Jrace v. AnK.'rican Central Ins. Co., 109 V. S, S. C. 278.) It is one thing to procure a policy, and ipiite another to X •^^""T^ ^mmm 354 CANCKM.ATION oK Till". I'OMCY. reinvsiMit ii larty m ilic oiiirclliitinii oC ii cniili;!.!. Ildwcver CXJ1108H the imiinliitcus tn tin- I'diincr, itcortainly tlors not exU'iul to thu Itittcr, wliicli n'(iuirc.s f(ir tin; iv^vnt cxpivsH uinl special ])0\vor. C'lirri >v Soil r. I'llicHii Ins. ('o., Civ. I»nt ('oiirl, Now UrU'iui.s. OOOji. Tliu (•.•i. of ciun-elliuioii. For fur- ther tuMtiiuiit a.'^ to the rii^hts of a^^'eiiLs to eiiiieel |ioIiM,io.s, see the En;4hsh ea.se of \eiiiK c. Wickhiim, '2 IIcmi-i' of l.u'ls, I'.lG, and tlie mmieroii.s aiithoriiies there cited. 1101. If an aifeiit, aitiii',' for hiiii.«elf, idvaiiees tlie pre- :iiiiiiu to tlie eoiniiany, and aftiTward takes ihe iiisiiri'r'H note for r^iicli pnnnuitii, and nci^'ntiates it a.s hi.s own, tiiis is siitlicieiit ooiiHilianee '.villi tin- ]ioliey coiuhtion rei[uirinL,' ]iayinent of ]ire- miiinis, all! the eiini,iany may not eaiicei t!i.' poliry wiihouL notifviiiL' tlie iiisureil and nMiiruiii^ th ■ iiie'.ini 'd pioininni. It \va^ of 110 conseijueiice (to the ooiiip.my) who paid the pre- iniuiii, iluiiH Iii.s- Co . O,, <■ Ciirti.s. .') lu^. K.uv Jour. 120. 1KI!:2* An x\(j<'iit cdiuiol nda'd Policies a(j'. — IIclil : "No .^enoral power of an a;4ent to act for the hest iiiteivsl^^ of tln' conip.my can li" cunstrued into an authority to cajicel polieii's against the wishes uf his prineipal ; ,nid the in.surod were not haind hy his ad under any .spe- cial agrecinont, or on any general ]irinci[>lt!s of la.w ; and the policies eaunot be regarded a.s canceled hy him." (I'. S. F. (^' M. Inr,. Co. '('. Tardy, Siij'. Court, Ala., 2 Ins. Law Jour. 072.) This was a case where the company had gone into li(|ui- dalion, ami Tardy, its agent at Mol>ile, oaucelud the outstanding policies for the security of his customers and hiinsiOf. It will well rejiay any agent to study whose company ceases Imsiui'ss wiiil'' ill his haiuLs. S>OJ5. t.'niicelJalloiiH hi prn^ance of Impendi iiij DdiKjcr — The plaintiff covered cordwood upon the line of a railway. The C.VNCFl.l.AMMN Ol' I'lIK l'.>l,K'V, 35'. nji(>iit uf tlui ciiinpaiiy iiutilit'il the iiisiiri"! of tliu cancoUiition of till' )iiili('y wliiU) (irea wi-ru l)iiriiiii;^' in lliu (ili'uriii^'-* unci forest surroiuiiliiiLj tJK^ cnnhvociil. Hrhl : " Tin; I'ninpiiny luul the ri^ht to cjiMivl till' policy on ^'ivini,' notice iunl ret uinin;,' tlii^ prtiiniinn, altli(»n;j;li the wood \v;n in ^'iviiti'V dan^jTof tiro tliiin iit tluf lime wii'ii ii wiis insiircil. The in^'l^l'l ciiniint., iiowi-ver, ciimuil the jioliiry when iln' iii'c is !i]i]iri>:iciiiii'_' ilic |>n»pi.'rty insurtid, or in tlio fiic.c .if thrciitcncd and iippinai'liiii'^' diin;^cr." llomi' Iiirt. (',)., N. v., r. Ili'( k, iy> lU. Ill . J liiM. I.HW .Joiir. \M. IMKtii. I ''iiin'llafiini of' oin' Pulic;/ I" tiihi Aiiothrr. — Ihld: "Tin- cLiini of the iMtlicylioldi r lo the money is not impaired liy his not d(diverin^ np the policy (o he ciincoled, it heing re<;iii'(led ,'uid treiUed both l)y iiinixdt' and the agent as wilhont value n\ their negotiution-i us to the roturii of tin; pruiniuni Ulnlley." iSinitli r. Himler, S. (;. 111.. jDiie, ls",S. not. Tlh' insured, upon leal iiing llial the insuranee company in uhi 'h he had an iusar.mc • Iim susp -n 1 mI, .surrend -red hi^ policy to the agenl, ret'oived th,; nnearned jivi'mmm, and took out a policy in another company. In an action had upon tho second policy, Hi'hl : the tiist inn.st be con.sidere.i as canceled from tho time of its .surrender. II 1(11. 'y r. .V II. l-'irt' Ins. C )., -I lin. N'ov .!„ ir. Oil ; .'>:< \ II lla. SKHii. When, ill ]iiiisuaiie,e of an arrangement made with an agtMit, a new policy was ta,ken out, and at ihe .same time mi old p'lliey in another cotnpany was .surrendered, with instructiona to caiu^el as of that dati;. Jlihl; That, as between tho insurcul and the former company, in a <|iie,stion of further insurance, tlni ohl policy was to be deemed canceled as of the ilate stated, tholl^dx not actually received and canceled by the company until aftor- \vard. Atlantic Ids. Oo. v. Gooilall. 35 N, II. 32tf. O05. The insured surrendered his policy in C iinpany .A. to the agent for cancollalion, and requested him to obtain otln'r insurance in a good company, and credit return premium on p day of t;ompany A. Agent procured insurauce in Cotn[)atiy K, bat 350. CANCKLLATION dK 'illK T'OLlrY. uoijk'ctoil to vnnoA'] policy of ('miipiiny A. f)r n'lnrn it. to tlio I'oiiipiny. No icturn iiioiiiiiirn was jiaid iijKtti it. Af'Un' the fire tlui itisiircd took tho [uilicy from tlio agciil. In an action againnl C'onnxiiiy A tor tlir ani'ima of tlu; polify, di-ffuco wa.«i made of " otbtir insurance" without consoiit. Jfi'hl : "Iftlnru wun an oii;,'a{^('in''nt bitwiMjii the ii^^'piit ainl the iiisiuoil, the -.iir- rendiT of tlic poiicy of (.'onijian} A was h virtual cnui-cllatioii, and tho siib.st'nucnL ni-jifis.scMioti of the polit-y may liavn Imcn iin asHiTtion tliat it had not hei'n stirrcndorcd, or sitn])ly a ]>iv- eautionaiy nt I, and was a (|in's!inn for th»! jury." (Train v. Holland I'm-, iii^ I'o., Ti Ins. Law doiir. 177.) 1l05a« Whore J!. a;,'tMit of tin; insiiri-d, j.rocurctl a jiolicy in Company II from its agent, (", and ( 'omjiany H roquistcd a le- duotiun of amount or (■anccllalion, L' wndc to ll to ri'diicc tlio amount or let him placi' ihi^ liotfl in another eomp,iiny, of wliich hu was also the aj^cni. Ii dcsiriMl (; to plact.' tlu) wholt' in the L comjiaiiy, an(i sent liarlv llie II poiiiy to he " caneeletl," tlie unearned j)reniiiini if) pay ilic prenuum on ihc I. ] olicy, (.)n receipt of the II poliy, v." marked it " caneelfil," and, with the amount of uneainctl premium, put it into his safe, intend- ing to take them to U the next day, hut did nut go; nor did he make out the j)olicy in the L conipauy as agreed. In the meantime tlie pioprrty luiriifij, the owner kno\\in<_' nothing of the proptisud change ct jiolicv, and Ii imt knowing that tho change had n<,t been i'i,ijij,lott'd. The pmli.'y I'ou- tained the eu.stomary canetdlat ion <;hiuse ; C sent. Oie amount of unearned prcunium to It after the live. Held. Tlie agree- ment was to cancel, coiijded with a re-iiij>urance, and it had not. been com]i|ie«l with by C, tlierefure iIk; H conij.any could not insist upon tlie cancellation; there had been no agreetnent of jiartios. The ])reniium had not l.)eeu returned in comjtliance wiili th(; policy jirovision, and whether C acted a.s agent of one comjmny or both in the matter wa.s a question of fact and not of law. Poor r. lliiiisoii Ins. (!o.. U.S. C. C. .N. H. (,.M(iy, 1880^, 9 Ins. Law Jour. 428. 006> Where notes were given for tim 'premiwmH. — " Where the policy acknowledges tho receipt of the premium, aud the OANCiELLATION OK lUK I'Or.lCY, 357 iii.Hiimil has a sultmupiont right to a rotiirn of pivmiiiTn, Im miy rt)«'ov<;r f»»r money had rind rm pivod, tliough, in truth, ho ijavo a {ironiirtsory note for tho pnuniinii, and llio note romainH unpaid." If.'iiiiii(riway IV Ilradford, 14 Ma*: \n , 101 i,/. 6SB. IMMia* Policy i.-»sii('d liisn jhii/fiblfi to a l)iiildin>» ns.socia- lion ; a iioti' f,MV(!ti for tho iin;iiiiiirii was jtrotcstod lor uoii- jiaynieiit at maturity. Aftor thrm^ niontiis the cuiupaiiy uo- tifii'tl the IWiilling association of tho otincvllatiun of the policy, for iinii-paytneiit of iirciniuiii. Tho propurly was destroyed by tirn dmiiin tlic ori','iiial iciin of (hi? polii;y. Th(! coinpatiy dmiit'd all liability. UchJ : " Noiico of caiu-pllaLion wan rf- qni.silr upon M (the iuHiiri'd). or Ins ropri'sontativcs, not on both. No ono could better answer as a ropnsciitative than ho who had the custody of the policy, nnl woiiM be cntillod to thci iiioiMjy in cast! of loss. 'I'he notice was suflicicTit, and the can- cellation took effect from the service. The company had rc- ciived no money, Xo lej,'erdemain wouM make that; protested note appiear as cash, since the company had nothing on which to nfund a ratable proportion.'' KoiilliMide F. I. (Jo. ).•. .Vliioll«r, Sup. C. I'a., Nov. 18, IH78. OOOb, Where a policy provided that if a note taken for prcniiuiu l)e not paid at maturity, the ])olicy should be void, 111 Id: "The company must exerciso it.^ option to cancel in order to terminate the policy for uon-paymenfc of the not-e. That when the policy had bi'cn thus cancidcd, the fact that the note was only paid atV'r the loss, and without iiotifyinij; the company of the los.s, W(Hdd not alfect the lial)i1ity." We.steiii Hurde I(i«. Co. i'. Slieidle, H. C. Ntb., Dec. J, 18K6, 15 luj. Law .Jour. 204, !>07. Ditc-hill o>nc,) for Rdnrii Premium. — Whore tho aj,'ent canceled a policy and j^avc the insured — an illiterate woman- -a due-bill, or certificate, iti tlie name of the comjifuiy, for the unearned premium. A fire occurred before the thie-bill was paid. Hvld : '' Wln'n a dued)ill ohcy itself, wherein the receijit of the premium wah acknowledged. Held : That tliis acknowledgment as between the conipajiy and the insured estopped the company from saying that ih^ broker h.'id not paid tlie premium. 1 Cftiiip. 532 ; 4 Taunt. 'J4(> : 'JO Wall V. S. oOO. f>OH. Invalid policies. — "Where ilie policy reserved the right to cancel and the coniiany gave notice to the insured (who had not paid the premium, l>ut bad assigned the jiulicy without the company's consent) that uidess the premium was ]iaid on a certain day, the policy wuuld be canceled on that day The premium was not paid, and a loss occurred sulisequently. IIdd.:"T]ie ooni])an} had a ligiit to treat the policy as can- celed on the designated clay ; and no fiather act was required of th(.>m after the recision of the contract." Bergson v. Builiiers' Ins. Co., .S" Cnl. 511 ; ('oles n. Iowa Slate Mut. Ins. Co., l.S Iowa 4L'fi ; Emmett r Stale .\Iiit I" I. Co., 7 R. I. ."ifij. 1>0Hji« Notice of ciiiicelliili'Di is not necssary where a policy is voided for breach of contract. Held: "The ])olicy i.s void ipso facto by the act of the insured in obtaining additional insurance, and cancellation by tho comj>any is un- necessary." (90^*.) liayfield, Ri^'gen A Co. < FHrui .Mut. Co., DeL. V. S. C. C, Sli. tlOfK /-Jndorsemeid of runcclldtinii iipon. the policy not ntC'ss((rij. — A surrender of the policy by the insured to the authorized agent of the company, with the intention on the part of botli that it shinild no longer be a contract between the in.surcd and the company, wa.N, in itYect, a cancellation of it, and any physical defacement of tlic policy is unnecessary. It was a giving up of the f )iitract by the insured, and a "taking of it up" (which was the langmige of the agfeenient) by the agent. CANCELLATION OF THE POLICY. 359 That tlie ai^ont did not send it to the oonipany as he was to do, did not afleet the insured, for he liad put it in the agent's power to do so, and as to the insuretl, the contract was annulled. (Train v. Holland Pur. Co., N. Y. C. A])])., 5 Ins. Law Jour. 177.) 1>01>a. Cancellation of Policies in hands of third parties. — An agent issues a policy to B, with " loss, if any, ■payahle, to C' to whom the policy is given by \\, as security. The agent pays the premium to the company, but gives B credit theruftu'. B Fails to pay the premium, and the agent demands the policy for cancellation " for non-payment (if the premium." C, the payee, refuses to surrender the p''^' y and thus lose his security against B. The agent cannot cancel ll'O poli",y under the above cited circum8ta.Hces for non payment of jireniium, for, as bjtweeu the comjmny and the insured, the i>ri'iniiun has been paid ; by whom paid is to the company a matter of no consequence. (5 Ins. Law Jcur. 120.) The. amount of the unpaid premium is a simple matuu- of debt between the insured and the agent ill v;hich the company has no interest; and the agent has no authority to cancel a policy for an unpaid debt due to himself, even though the deb', may be for a premium which he his paid f(»r the insured. When an agent pays, or assumes the premium, he has a lien on the jKilicy for the amount only so lonif as he retitiiis svch pulicy in his possession ; if delivered to the insured, his lien goes with it ; and in the event of loss under the policy, he cannot stand in the place of the company and claim |i.i lueut out of the sum due the insured, thereunder. (5 Bin-;, Pa. 538.) The iiayee, (; i:^ neither the insured nor owner of the policy • he is unknown to the company exce})t as payee in the eveLt of loss under the policy, and then only to the extent of such loss as may be payable to B by the terms of the policy ; ia any other mont^}- paid to H l)y the company, he has no sha- dow of interest. Martin c. Frnnklin F. L. Co., 5 Ins. Law .lour 144 ; 10 Cu.^h Mass. 4.13; .T Orny Mrts-i ■M: Kelclimn n. Ins. Co., S. C.S. It. (I Allen l.W). '> lieun. V, I. Ciwes 198. The insured B is the S(de owner of the policy ; the contract is with him mily ; and he tady, under il.i conditions, can cancel •^mmwmmmmimmi 360 CANCKLL/VTION OF THE POLICY. it at any time lie .sees fit to do so. (10 Cush. Mass. 433.) Or he may .sell the property, and thus render th(> jjoliey void for want of interest ; and when the interest of B in the policy ceases from any cause, the interest of C, as paye<;, ceases also. The mortfjage contract is between J5 and C, in which the eonijtany has no interest whatever. (10 Wall. U. H. 33.) In case of the refusal of C, the payee, to surrender the policy for cancellation, a lelease frcmi B, acknowleilging a consideration fur the surrender, ami releasing the company from all further liability under the policy (duly descril)ed in the release, with the reasons why it was not then SMrremiercd) would he a valid cancellalion. upon the broad [iriticiplo that the parties who made the contract can unmake it upon mutual agreement so to do. 10 Cush. 433 i 33 Midi. 133. On the other hand ngain, the agent, as the representative of his company, has the option, under the customary cancellation clause of the policy, to cancel any policy, at any time, an Cavcdlation aftr.r arty to the contract has the ojition to rescind the contract at any time; the occurrence of a tire loss to any part of tln' properly at risk docs not affrct tliiij option. The right of cancidlation is ojierative as long as there remain-^ any portiim of the ^lolicy at 'sk that can be canceled. If an insurance of 81,000 sutler a loss of 8500 only, the remaining SoOU is subject to cancellation for tlu.' uiicxjiiiud portion of its term, l>y either party, the sanif, as if that had been the original sum of the policy and no loss had occurred. Had the loss rtjachiMJ 81,000, the face of tht> insur- ance, there woidd hav\ Ooit i». Nat. Protection lag. Co., 25 Barb. N. Y. 189. Hy statute and the Ktundard j^olicy of Massachusetts, ten days' notice of intended caiicellatiui must be given l)y the com- pany. }\y the New \^ork Standard policy five days' notice mu.st be given. lllliU J'ollcff under seal. — The cancellation of a sealed policy, by tearing olV the seal, airimo canrellundi, with the intention to cancel it, is a h'gid cauftdlation. Uiuniay W. C. .Mf. Co. n. Miiiiml Ins. Co, U U. 0. Q. U. r.l6; Miall t>. Wesleru Assur. Co., 19 U. C. C i' 270, liTO, 362 UNIFORM SHORT RATE TABLE. ai •^ ii -' ii ^ !^, 02 'I M O W Ii O •810 'I o C^ »- •«K-) S -^ »)3 i,; ■siO I o >J0 o •810 ^ •^■10 '1 •''to ^ o •sio » •-^la 1- >)0 F- ■810 O •^•10 '-5 ■810 ? •Hjo I,-? •sio ^ •< M lO —1 CM o rc o o o >o — . — M ^1 3i M o o o p-^ c-4 ro -t X ^t 1- ▼* !•- .— * >0 r^ r- O ^^ r^ t-T r. TJ CO •-= :7) —I ^* i.*^ '/J ^ c^. k'i y. M lO (— =-- C-) -r t- c^ IM •* -X /I M ■» -O I— ct n k.-. t~ iM n in -.3 <-< f^ -^ lO — >^ tC >.- I— < ?^ :c t o •X) 'ft o o o I- IM c 1^1 >fi iri IN o 11 O 'fi >0 f- O lO O M O •= o X o — — r-j ti i~ K O X: -}■ O X — • ^ I— I f— < ri o •- "^ *^ -r ,-, I- o c-i X ■- X e r-. o o — C<1 X ^5 o o cc o X (M c ID o o IM O o CO O '.-5 ■o •/:■ C' IM O cc OD CO CO ! " ■M r-i 1^1 1 -2 X CO :r i -g CO o o r— _ — . —I -H — 1^1 O O o O O O O 3 X o -1 T lO 'J r~- X — ,- X C-4 C^l CO X C-l ^ O IQ - ■ ■} •^ 1- cr- o CO O X o 1^ X c1 c-i I "5 Cl^ O C — 1 — • o CI ■.r 1^ CO X -* a; CI o o X X ri X X 1^ r- _ -j; r-i CO -*• in '— I- f- c^i c*^ -t i.o ii r- ^ ;:; ;_;.:--■■>< rj O X' :s CO '■*' "^ liO ~ X >o CO CO ro -r liO X i.oi c-J en ci CO -r -t 'J o X ^ ■X — ' O I- _ — . M O ri X C-. •-. ^ X o CO 3> 5r o --; n O >-0 O >ft ?4 CM CO cc CI 1- r- I- X 'M o X — < -* t- O CO ■i o — ,x — • C^l C^l IM -♦••/— 1.-5 t-c — IM d CI l.O X — O X X o •M fO cj n re -r '^ X CM c-i »■•■••** •»•••••• • • I • t ' 'J. f /. a V. r/, r,. «; X 7. '- " XX X tr t: *x — "i — ■^i^ - "^ "^ "^ I o 3 e d a, s r; sd ca a iM 110 C5 i.O O ■M ~ S 1?; S 13 CI CO -^f o •» * t- OD i?> <=> TABLK OF SHORT UATK. 363 oi». For reiiods of One, Two, Tlirfie, Four and Five Years. 1 -n ■s s o < m g ■3'^ B *> c 5 a %^- s Ci — " £fe o •J **- i- O rfi a "" .2^ a E a> O Mo •a \_i 2 (-,=! I* '" .2 05 g 2 >. §^ 2 = ■i,.- ~ o t « -3 - *^ . — o 15ft. I-. 'o t 'S ;:2 c lh c * :i .i; -c 3 t; 3 = C 61 = i5 C w '7- •r: a- a ^ O 3 w O — '"" s f) a> ■' o I TiMK KxiMitiin .MonTliT 1 1 I 3 4 H U 10 11 ii; 13 u 15 I'i 17 18 W 20 21 22 23 2-1 25 2H 27 28 29 .-iO 31 ■52 ■i3 ■M .'f5 a*) 37 38 39 40 41 12 43 Onk Vkak Two Yi'.Aiia. per cent.'l'er tfot. 20 30 40 50 00 70 75 80 85 90 95 lOO O) ■14 ,-, 4,1 "' 4i> '/J 47 4J 48 j: 49 to 50 — 51 a 52 53 ^ i 93 ill 95 I 9,'i I 98 112 100 Ff'I B Yr;AiiH. per cent. 08^ 13 18 1 20 22i 25 27^ 2 30 32* 35 37* 3 40 42i 45 47J 4 50 52i 55 .57i 5 fill 62* 65 67i fi 70 71 72^ 74 7 75 76 77i 79 8 80 81 82^ 84 9 85 8(i 87^ 1-9 10 90 91 92J 94 11 95 96 97J 99 12 100 Fivi.j Ykahs. per ciMit. 07i! i;t 18 20 22 24 26 2 30 32 34 36 38 3 40 42 44 46 48 4 50 52 54 56 58 5 60 62 64 66 r.H 6 70 71 72 73 74 7 75 76 77 78 79 K 80 81 83 83 84 9 85 86 87 88 89 90 91 93 93 94 95 96 97 98 99 toil 11 12 c fl E s -,-T-t g c- U -c a. :c: ■a .£ !t 1-. 0^ a t:; c 1 * a 3 .V » L 'S ■fl "^ * . » , C-,iJ « •"* .2 o c:5 T ■T) < 1^ 1^ .2 1^ «< u J^ b- ■£Z :;> fi AJ ~t *3 a •< o; -a 1 ^E-- u a 5N| T{ . O < M n K 5; >-'» •"^mmmF 364 »M. VRO RATA CANCELLATION TABLE OF CONSTANT MULTIPLIERS l''()K COMI'UTINT. KARNICD AND UNI':AKNI;D PRO RATA I'RI MIUMS Casting Intarest for any Number of Days at any Given Rate percent. AND C.KXl'.kAII.Y I'O COMPUTE CURRENT HUSINESS EXPENDITURES VOK l.ROKKN PERIODS OF TIME. .^66 DAYS 10 THE YEAB. 44 46 46 47 48 49 eo 11.7»il 93 laiKw 94 I'j ;«• , 9S IJ H03 : 96 12 ^:7 97 1.1151 98 13 l-T) 99 Ja.fi9l) 100 2« >i! 2li 1127 •.!6 .Wl 2i> r>75 •21, SI' 27 VSl a7.3!i; 144 146 146 147 148 149 160 3!» l.->2 .'!!» I'M ■in 000 W.L'74 111 fvlH 40 HL'2 IJ .Oi«i 194 196 196 197 198 199 200 .■)3.ir)i ^■! '.IT.'I M L'47 54.rvit o-tros V 305 914a. PRO RATA CANCKIJ.ATION TABLK OF CONSTANT MULTIPLIERS FOR COMPUTING EARNED AND UNEARNED PRO RATA PREMIUMS Casting Interest for any Number of Days at any Given Rate per Cent. AND GKNEKA) 1,V TO ( 1.)M1M TK ( URkKNl' HLSINKSS EXI'ENMIt'RrS FOR HKUKKN f'KRIOD.i Of 'IIME. 366 lAYS TO THE TEAR. 1 Days. 1 Multiply 1 llV 1 1 Days 261 Multiply I'.V Days 1 301 Multiply l.y 82.466 Days 361 Mu'tlply by 201 55. (ma 68 767 r-6 164 202 &r..;n2 262 60 041 302 82.740 362 06,4;W 303 fiS.tilti 263 611 air, ' 303 83 014 363 06.712 204 65.8H0 264 (.:i.580 304 83 288 ,1 364 00,086 30B 56.1fi4 266 60. W3 1 306 8;i..-62 i 366 07 2(K) 206 5(i.4:M 256 7ti.l:i7 306 S-f 8;!6 :■ 366 07 ivH 307 60 712 2B7 70411 1 307 ■"'4 HI) i 367 07 M)8 308 66.ilH6 268 70,6s5 ! 308 84.;)84 ![ 368 08 082 309 57.260 269 'O.iViO ! 309 M.6.-.S 1 369 98 ;C)6 310 57 .flW 260 ;i.2;« ' 310 84.!i;i2 1 360 OH,(ji«J 211 57.808 261 71 n07 1 311 .v.. 206 ; 361 US, 0114 212 .W.OK'i 1 262 71. 7!)! 1 312 85.470 i 362 00.178 213 r»< ur,n i 263 72, OW 313 85 753 . 363 0:1 462 214 M.IVM 264 72 320 314 86 027 1 364 00,720 316 W" WM 1 266 72.61);) 316 86 .-ioi 1 366 I'M) 000 216 5ii.n8 266 72 K77 1 316 86,.'-,7f. ^ 217 218 219 f)9 iiy^ 59. i a; 10 (KIO 267 268 269 7:11,11 1 73. 42.-) 7;j 6H9 317 318 319 ^■W i! ..--OFABAY^ 220 221 60. ■.'74 60.648 270 271 7;i 073 74.247 ! 320 321 87:ll« i o^y- ,n»'''p»«r- 222 60, HM ' 272 74,r.21 1 322 ss.iiio jl .- •-' 223 111 0ii6 273 74 705 323 t8 403 1 1.5 055 224 (il 370 274 7.^.ih;u I 324 88 767 1.4 060 336 61.tM4 276 75 o42 : 326 80 041 J.3 89;tl6 {J ,001 336 61 018 276 75 f,16 326 137 337 338 C'2.4U6 277 278 75.S0O S27 328 nn p.,9 1 •*"* 76.164 ■■ SO si>:i ' H'ark S(tmv lis Jot 229 62.740 279 76 , 4;)8 , 329 00 i;!7 1 w/ioU day a. 330 331 63.014 63.2-i8 280 281 7t!.712 ! Te.OMi ! 330 331 90,411 1 IHI.IWJ 1 Number of Days in Years In excess of Five 333 233 63 662 63.836 283 283 7-. 200 1 Ti.fM 332 333 !H) 9f,<,i 01.2.33 334 236 ('4 I to 284 77.808 334 iii.noT ; Years. , I'ays. 04.. 184 286 78.082 3<)6 !'l 18I -■ ■ ■ 1 . 236 64.658 286 78.3,'.6 336 02,(165 6 2100 237 64.031i 287 78,6;!0 337 02 ;t29 7 2565 238 65.206 288 78,004 338 92 (;fl3 8 2020 239 65.470 289 70.178 339 02,, -7 7 9 3285 240 65.75;! 390 70.452 340 •M.Kl 10 36.M) 241 66.027 291 70 726 341 03 42o 11 4015 242 06. 10 I 292 80 , (100 342 at. 600 12 i:380 343 ^iti.,^;6 393 80.274 1 343 03.:)73 13 4745 344 •Jii.mU 294 80. M8 344 04 247 14 5110 246 67 12.1 396 .S0..'>22 846 04.;V21 ^ .■>475 246 67.;i!»7 296 81.0;K) 346 01 70.-. 16 .■i840 247 67.671 297 81.. 370 347 05 06U 17 1205 248 67.1M5 i 298 SI 614 348 95 342 18 6.'>70 349 lis. 219 299 81.01f( 349 0;).616 19 6o:t5 360 I* 103 : 300 1 82.102 360 1 05 890 20 730U m 1M5. TIME TABLES SlUmiNG TlIK NUMHKi} OF DAYS INTERVENING BKTWEKN ANY TWO UIVKN UATFS, For Any Period of Time, FKOM OXE DAY TO FIVE YEARS. Month 'h s ^ ^ r- Feb. 1 3r!i:t Mar. ■J 5!i 14 API. :t ilO l.'i May June 4 5 iL'O Hi ir.l i: July f; l.**! IK Aug. t ■Jl-'jm Sep. Oct. X 24;3 120 11 :!7;t:;ui ;iii4!;2L' ^ov. 1(1 Dec. 11 ■.>-M\ a* Jan. \\2 ;)fi,'>l 24 JANUARY^ \Jl^.; 3 Vt>.||"4 Vrs.;|S YrH'.' 424 4,-)0 4>',' ,-)lK 577'I;tii Cnsj:t2! Till 'niiivn 7.S:i .w.ii.-,! Mii;:i'.i|iis;-i «5M 111 U'lfi 8»<1,41 1.'46 1(11, ivii;?*, 1)42' 4,> l:iOT 97::: a i:m (i,w!i.i;! ioii;i. 4r. mhk fli)!)i;<4 io;i4' iii,i.iii!» (I!)|iitall01iti47;142!l 7.'«ii!;w'io!f.!4«'i4(i(): 4!'! 1 l!»l , l.-.lll IPWl itni 11141' 11172 ITIW 17:0' 17m I7!14l IX2."<, i ~ "2ii(r Mdiilh FEBRUAEY. I Vr. 2 Yia. 3 YrH.i 4 I to Month S ^pl. May June July Aug. , ■ Sep. : • Oct. 7 Nov. ! s Dec. I " Jan. i Feb 1 Yr. MARCH. l2 Vr- .i VrsV'4"Yr»T .11 i Days! Mar. Apl. May June July Aug. Sep. Oct Nov. Dec j Jan. ' Feb. 2« ni) 8!1| 12(11 /fiO| 181 2' 242 2731 303|22 H.I4|23 .St;.')ll24 a C ,'«i;t 424 4f)4 4»r, Mfi 577 (107 (i.W (ilM C9li ( 2H YrH. n Yr8, s ,Sl) Mill KM I t; 7(12 -.Vy lar. !!i2| 3(rii,24l 73oi:;i*i Till 791 822 .Vi2 8s:i 914 944 97.15 KHi.-. lo.'u; 10t!7 1095 1 .17 1121;' ■M> ll.i-ifi. ;?9 11x7 4111217 41 I2I.N 2 YrH 1; 3 Yrs. 127'i 1,'iiw 1.1-10, l;!7l>' lilil 1 l:iJ 141.O1 1191- 1.V21 l.Vi2 I.-*' I til 3 lr,44 ic.:i 170.'> 1 ;:!,'•. i7tii; 17'.i7 1K2.''> May 1 June 2 July 3 Aug. 4 Sep Dct- (i Nov. 1 Dec. ,s Jan. '.) Feb. 10 Mar. 11 AdI. 12 311 i 13 1 tU 111 91 15; 122 111 1.')3'17! is:i IS 214|I9; 244i|2il: 275i21i 8(M-)'i22| .334 123' 3115 '241 39.1)1 '2,5 12'i 21; 4.-.1; 27 4X7 L'*- r.\f '2' I .■,4>-' 311! r.79'j3i: "5119 ,12 640|3;i B7I '34 tl99 i3r, 730 I.W Q i 76IK 791 H.'A KHI 913 W4 974 100.5. lo:,i; loiU 109n 4 Yrs.;: 5 Yrs. rt — [v, , ^ .37 1 12.-.' 19 IHH) 3S n.-iC, '.-,0 1,-,21 .39 1 Wi, ,-,1 |r>.M til 1217 .^2 Ifi.vj ltil24K ,"..1 I1II3 4211278 ,'i4 11143 '43|1.109ii.■),^ )(iT4 ;4tii;i39;',i6 1704 ;t,')'137(l ,'>T 1735 4111101 ..IS 17fii; 17 1 1429 .59 1794 ■tKlHtlO.'CO 1S2.5 June July Aug Sep Oct. «ov. Dec Jan Feb. Mar API Ha 311 13 mil 92 1.' 11114: 42Bll26i 79l!'3?'il-ii!!50;l;i2I t:)7:27l H22'.:9 11^7 ,.-|| l." 1, 12.1 1*>1 488;;28l Hr.:i.lOil..lo .,52:i.>:i 5; l.'rfUl 51* 29l 883i,41 11248 l,-,3 1(113 49il30l 91ll;42il279'.-.4 lil41 7 214,19! 679 31' 944l'i:i 1.3(p:i ;i\'; Hi; 1 8' 2).'i 20I 111(1 .12 97-.1 14 l.(4ii f>il;l-|l". 91 271V2I ii-tl 33'loi)ill t.-. l;,",1 ;,-.7:17:i(> 10: 304122 (1()9 .11 Mill! II. Moil ,'.»- ITilt II] :«'. '23 (00. :!.', lull.-: '17.14...' .-.ii 17:i.'. ay .,12; 3(k5;:24| 73ul,3Glll'9.-i;,l'!lHil« ;(I0 182,-. July Aug. Sep. Oct. Nov 30i 2' (111 3: 931 4' l'22l '■ \r<:\ (1 i.>.i I T 214i Dec Jan ;Feb. H i-l 24.11 iMar. 11 9i 2731 \pl. 10 S(U May ! u .I'M (line; 12: 3(1,'): 3951 ;2S: 42fill2« 4.".7i,2T 4K7I128 ;118,!29 ,-48* ..'111 7)79- 31 610|l32 t«8n:<3 &;:i 34 i;9',i 3.5 730 :3(: 769 37 791:381 s22 39! 852 '40 883:41 91. 3 42 944143 9:n ;i4 I0».3'i4,'il 1034 ml llnol 47| iM9,5;4,s| 1 125 149 1490 11.5C.1 50,1.521 11H7 1.51 1 1.552 12171 .52 l.->82 1248 .-)3;iiil3 I2"8i.')4 1(143 1.109 1,55 1()74 13111^5(1,1705 13(1H'W'1733 la.)!. i,5s!l7R4 if-"i ;-.9 1794 14(10 loo; 1>25 TIME TABLES. — Continued. 367 il4i|2';; ivist '.h hum ;>A"i ;2a 700 :;.">: I ipii.> 3(;f)ib4i TaOii-'tCiiOiifr 37:nav4ii um :ii< 1I.-.7 .'.0 1522 :« ii>.") M I -.51) 10 I'jio r.2 i.-vHi Hii.4t; 5;i inn 4L'1277:,V) liM2 4:i;l;l»7, f'.'l 1073 ti l;w':.o 1703 4.-. i:iO:i,-i7 17;U '40 riO'ilfiS 1701 ,4; H.lci.Ui 17'.'5 48|l4t.0ii(i(),lH25 I^KAl' YEiLllS :— 1«8«, 18!>2, ISOfi, 1904. iW^, 1912, lOlfi, 1920. Add one duy. HOW To USK TIIK TIME TABLES. TiiDKic AiiK TVVEr.VI', Calkxdvu ^f()NTiir,v T.vnLKs. OIO. Tm iiiixnijmliitG Uio T.vm.Ks wiili tiicilily iiiul satisfac- tion, tlie ibllowiu;^ (iniliiiiiimrics rtlioiilii ha well unilt'i>st(io ii;iiii(m1 ; a day l>otc. o. — la coiniiiiliitioiis of Iww froiv o\n\ diii; fc) an of her the Tiioiitli or day of coiiifinnii'cMii'jiit is (^xohidod. Tlin.s; tlio •laniiary lahlf coiiiiiioiici's witli F 'hiiiury ; \vliil(! with days, frnvi .luniiary 1 to January Iil an; l)iiL liU days, tbo first being f.vclndrd. 4. — FiMctioiial poi'tioiis of a year: Wlicti tiiontlis oxtnid into tin) next or siiea'cdiiiLr year, thi' coni]>utaiir "no day," the 28th and 29tli forming but one day. A policy chited August 28, 29, or 3o, fur six inuiiths will expire Fehr, 28tli or 29th, as the case maybe. G. — Fra.ctioiiai ilays in a month . In these tables the number of days intervening luitween two given dates are from a certain day in the initial month to tlie siarnc day in the terminal month. Should the days named in the initial month ex(X'ed thi.ise of the termmd month, deduct the excess. If, on the other hand, the days of tlie terminal month exceed those of the initial mouth, add the excess. From January 1 to May 21 will be days 120+20=140. From January 21 h May 1 will be days 120—20=100. now TO USK 'I'lIK TlMl" T.Vlit KS. .I7. '\'n Ji'^i'crtiiiii llic iiniiiltiT of t(X])ii'*Ml or UTioxitirmi luoiitlis (,i davrt iiitcrvi'iiiii^i iniwiicii iUiy two jiciiods: Out of tlio twclvo iiioiitlily tiililt's, 8i'U.ct tliiit of ili(.' iiiitiiil iiiontli from wliirh till' tiiiu) ln'i,'iii.s to run ; in tlic left \mu.[ ooluiiiii uf Miis tul'lc liiid tJic Irrniiiiiil month dnrin^ uliich lljn tinK' cca.ses to rnn : m llir. un^ih of tlu' coluums of yoars, 1, 2, o, 4 or 5, an tlio ca.st' may l«.', will ho found tlm numlicr of moutlia and of days intervimiT)^, ilus or minus tli" dilfcrtinfo between the days of commenei-nient ami of torminntion (see No. •)). OIH. I'or j'criods in exee.s,> of tivo years, find the number of months or days within the live years, nnd add iheK.-to 12 months, or .'{<>5 diiys, for tvi.'h adiliiional year. . As the niuabei' of days in iho several uiomhs, or any combiii;itio|i iif months, vury materially, care shoidd be exercised to work ihe tallies by the ii[)|iid|ii iate month to aV(iid errois. A K'^mI o!' t alendar year .'oniains ].:.' mouths or 3Gd days. A. legd or calendar haU year contains months ur 182 ilays. A legal or calendar quarter year contains o monthsor 1)2 days. An averaf^e month, when n-i panic ulai numth is specilied, contains ."iO.-ll? days; (^stim;ires basi'd ujion this tigure wdl 'appro Kim ate correct results sulKcienlly f..rall practical piiri)oae3. lltSO* A policy wriltcn for one year from Ian. 1 was, riri the Idlh of the next Aj)iil, riMlm-.cd in amount onelialf, and the remainder extended 18 months: When will the policy expire i Solatia II : From .lanuary I to Ajird 10 -dw. :\ months and [) days, plus 18 months extendeii time, equal to 21 months and 9 days; whi'li time will fall under the 2 years' ccdumn whore the (>xpiration appears o[)posite 21 months, us < )cto- lier 9, ol 2ud year. 1121. A jiolicy written Aj.ril ], 188."^, for five years, is to bo canceled in February, 1880, the third yiuir; What will be the expired lime? Turning t,o the Ajiril tal>le, oppo-ite February 111 the an;,,deof the 3rd year, we iiiid ihe iuiswer, ;>4 months or r';5r> days pl>'^ o'^' niinus the iliilcreuce between the days in the ujitial and the terminal month, if any. Y AS ^ ^3^ W^^^^ IMAGE EVALUATION TEST TARGET (MT-3) I 1.0 I.I l:^ |28 IIIIM 11 2 2 1.8 1.25 1.4 1.6 .^ 6" ► Photographic Sciences Corporation #> V S ^v <> ,1>^ :\ \ ^ \ <^ "^ ^ 23 WEST MAIN STREET WEBSTER, NY 14580 (716) 872-4S03 r^>^ o ^ Jk 370 TAHLE OF COXSTANT MULTiriJFJIS. HOW TO WMiiK THEM. f)2ii. K.qiircfl time will >;ivt' iiinioil |inMiiiiiinH. riii'\|in'il diiii' will j^ivc uncrirneil pnniiiuiis. Working \>y uuexpireil timo will jirovi' work utnlor exijir^ij time and tier rtrsa~ CANCKLLATION OF YEARLY TOLICIKS 1)23. Fiinl (lie mill)!)' r ol iliivH expirt'il or unexpireil, hh diwiitil ; op|K)- site ill i8 number in l!ie lulile will be fdiiiiil ti.e ii|i|irt)|irmte " iiinlliplier,"' which niultiplieil by llie aiintiul jui'iiiiuin will gi\e llie preiniiiiti Miiiglil. KXAMIM.ES. 1. — A yearly pilii-y, uremiuin S20, is to be cainu'leil ufter 200 daya. Wliiil will [n> till' I'liriiel premiiiiii ? Si^lutiun: Multiplier of 200 ,|iiy^ in 54.71)5 x 20.00- |10 <,)5 9 Itv'if': Unexpired days 1(J5, inuiiiplier 45.205 x 20.00^ ;>.()l.l Total, 'M\j davH eiiual 1 yenr or |i20 00. 024. 2.— <"'t1ice A Las it jxilicv of J^JdOO, date Jiiiniary 1, fireiniuni $75 aniMiiil. On .hiunury Jll, Mibsf(|ii('iit, one halt, ?2,5(iO, is reinsiin-d in Onic< 1{, to expire concurrently with the re-iiiMireil jwlicy. Wluit will be the prit riita pro[Kirtioii of tlie prennuiii to be paid to Office H? i^olutioii: ;i(!5--2.J--^M40 liiivs. iiiuliiplier W.l;")! x S7..')0 ..$;{4.93 Proof- Kxpireii 25 day-i, iiiiijti|i|iei' 6.'^4y x .'H 50== 2.57 i'oial. 'M\u diiyw i-qiial I year, $37-50 LONG TERM INSURANCES- 92t'>. R(\luce all policies to annual terrnti, for which there are aoveral proC'^ccs. I. — Find the number ()( (Jity.-< expireivide these diiyn by the nuinlM-r of yars fur wiiii.ii tlic policy was written ; conipiite as an inu;iial |X>licy of that iiiiinber of days, at the teria preniiuni. LXAMIM.K. A policy written November 21, 1«S4, for three years; term preminni $2L'.H), canceled pro ruia June 1, IHH7. Wliat was the earned prcniiuin ? isuhitii'H From November 21, 1884, to June I, 1^*H7, are '.121 days Then: 921-3 yeurH-307 lays, multiplier 84.110 x 21. 90 =$18-42. D2(t. 2. — Or, divide the tmm iireniiiim by the number of days iii the term ; muUiply the result by the expired d.tyrt (or earned premium.^, or unexpired days for unearnei prciiiiuins EXAMIM.K. TfiK'iiif^ the futures i.if the last above Example we have, preiiiiiiin, f 21. ','0-1 095 (lays in -H years)=;2 x i'21 days--. H18.42. A iX)licy for 5 years, from .N'ov 27, l.^'SO, term premium, $30.50, can- Cfiled June !, I8ti5. Whut was tiic earned preiaiuiu ? TAIILK OK CONiSTAXT MULTIPLIEUS. 371 Solution: Hv «ec(.'ii(| nietliol, Hint prcof liv lln' tirst : From NVivPiiilier 27, IHSO, to .luiK' I, IHS'i, arc Ui4.") (Iay»-T-.'> ycarR — ;<2;t .liiys. Mult iplier .ti;> .luys, '."O-U" x ;t(;.50 $:«2.'jo. = <(;f2.i)(). I'roo/. I'reiiiiiiiii, $;IG.jO' 1825 (|5, iluyn fxpireii, x 2 UU7. •'^. — Anoilicr very "Iniiile mfilin.l fur trealimj loiiij; term insurances wlicrc niorelliut) w bimj^U- year reiniiiii^ niiexpireil, > lu estimate tlie t'Xpire davH expireil, leaves l'^.' days une-vpired. ear.--, $:!(i.5(l ^^ $7. .Id per annum, or $2'.). 20 fur tbui years. Multiplier IW days, SO.H.S.'j x 7.30 - 8.70 I'remiun 1, ;. V l*ln.-i 4 year.-^' preniiun = 21V20 T.aal earned premium, $32. UO SHORT TRHM IN'SURANCE.S. iVIIKN Al IWI or l>OUIIi)S> (IK \ YK.IK. \yiH. Find the iPiinher y lheali[iiijt |y)rti of the vear lor vviiich the [jolicy was writtei ijompute ret«nil as aa animal policy fut liiai nuinlcr of day? at the lull term preiiiann. I'',XAM1M K. A policy writien for .3 munths. premium Sfti.OO, canceled with GO days yet to run. What will lie the unearned premium ? Sohiti.in Three motiihs .-ire one-fourth of a vear. Then 00 x 4 ~ 240 t day« annual. Mnltiplier i>.'' 754 x tJ.OO = $3. 'J.). Proof: Time tiiontlH eipial '.U.2.) day>i, less tlO days equal 31.2.") duvft expired. T'heii 31.2.) x 4=125 days anniMl.. Multiplier 125 daya in 34-J7 X t'l. 00— .52.05 earned. Then !8-.;.05 eiir;ied plii^i $.i.'Xi un- earned eipuil $Sti (10. (H)MI»UT-V1U)X or IXTHHEST. (Bank and commercial interest is always computed at 3G0 days to the year. Lej;al 'titereMt is conipiited at .3G5 days to the year.) 0120. To lind the ii\terc8t \ipon any jjiven sum, at any rate jjer cent., for any nuinher of days, multiply the principal hv the annual rate per cent.; then tiiid the number of days to run, and the multiplier therefor, ninitiply the atmnal iiitore-'t thereby i the result will b'- the amount soui^ht. liXAMl'I.E. What will he the legal intere.«i on $1000 at 7 per cent, annual, for PO (lay.s, |)la8 customary days of i^riice 7 Solution • Multiplier for G3 ilayy ic 17 2G0 x 70.00 =; $12.0B. mmmmt 372 AliANDOXMFA'T OF THK rOLICY. 0!tO. The holder of a policy of lift; iusuninco n.'fusiHl to ji!ty a |iiiiiiiiiii] no'e when duu, aiitl ilfclaivd that "hi' won id nut have anyihiii^r uwve lu do wiLli the iu.>^iin:rn, and alia)iduii>il{.hG vh>de tiiiii.;;" but he retained thu ])olicy, and the company retained the UMte- ; nur did it appear that they ('.i>nse,iitod to tiie abun(h:)nnii lit. Held; " Tlie policy it^uiained in force." Mi'AllisUTi- N K. Life lus. Co., 101 Mass. ; HImriistein's Difji'st 3:J, § I ; I'lntpd Stf'tes F. 4 M. Ins. ('o c. Tardy, S. C. Via. 2 hw. Lnw Jour. TJO ; Amur. Iu4 ('i*. i>. Woodruir. S, C. Mich., 5 i / tWiS. ItETUIlN I'JiEMlUMS. ttJ$l. J'he general nile.s relative to return of proininnirf, upnn policifts that from any cau.se an nut in force or bindiiii,' upnn the company, where the [>i'liey may he silent upon the .>jiil>ject are as foUnwij : — !l;i3. If the })<)li('y ha.* not attached at all, the wliole premium luunt be returned, il j'aid. l!ut if the ri.sk ho entire and the policy ha.s attached, even fir an hour, where by any po«;sibilily the itisi.iier (.1)111(1 have been leiulered liable for loss theieuhder, there sliall be no return ol premium. 2 Pli lip< 111*. Oil", 324: Steviison ' Snow. 2 Kiirr. I4.''.7 ; Tyrie v. Fletcher, CoW}i. '■)';> • Miiy Ins 1. 5 4. 1lifc lus. (' I'.ireni, J g.L.R. lf.3, F'tirk Insi. 2}:>, 218: 2 .^rnoiild Iiip, I'ilO; Hoi'kiiis .Maiiiie Ills '.Ml : 10 Cush .Ma.s.i. ,^HT. !>;il. .'^(1 also, a pivmium n(yt<' in a mutual company, given fill' a ])oliry whirl) has iHNcr taken effect on account of breach of warranty on lb • part ot ihe inaureil, is void from want of consideration. FroBt (. Surntoga .Mm. Ins. Co., 'i Dcnio N Y- 154. t i HETURN nU'MirMS. •M^, ii -1^ !>35. If a ]^arly vdluiilarily t^ffucts insurauro for anotlu r, who could iivail him.S(.lf of it to nseover for a Iosh, the jiiemiuni cannot ho roi'ovcrcil back should such olhur disclaim the, transaction (730, 18:i4.) VHO. If a policy be voiel on acooiinl of HUgalHif, or in casod of fraud, tlio insurod is not eutiilwl to a return of the premium if i»aid. (llSiJi. ) McFaul r. Mutual Ins. Cu., 2 U. (;. Q. IJ. Gl-2. 1>:i7. It was hold in former days, in the marine branch, that premiums were due and payable at the conimencemctit of tht- risk, under all circumstances. The relurniu;^ of premiums under exceptional circumstances l>ein}j; of niore modern ilate. Stevens, in his exctdleut " Ivssays 'ix Avcrai,'.!" (v. i>. 1813), I'nrt iii., Art. 2, .says: "The whole premium is considered as earned when the risk has commenced." ttJi-H. Another wiiler on the suliject of premiums says; " The nature (jf the contract does not permit of the divisicnis of the premium. Hence it sulUces that the risks may liuve been covered by the policy for any portion of the year; the whole jircraium is !<1I. When a policy rejiorleil by the agent to the home olbce is not accejited, the premium not being earned, the company is entitled to a return of, or credit for, the eouimissiou charged thereon by the agent. Bm wlure the risk has been accepted \;ed to liave bDiind hinfelf liij any act nianifentinj; an in- ti'iition to pnt the nHtrinncnl bi'Vunil lii-i coiiiidI, and render it llie pr"|ierty of the ijilicr party. I f lie did not, tlie oMi^.ition is />rimrt /!/<•(>, incomplete, and those who allege the dontrary mn-t make oni their case by proof." Iloiikins Mar. Ins. ><5 ; I Inter Ins. Ill; Perkins c. WhsIi. Ina. Co., fl -lohns. Cli., .\ V Ih3 : 4 Cow. N. Y. 04'> , .McCulluck r. K.igle Ins. Co., 1 I'ick. Mass. 177, Tlmyei c. .Middlesex .Mut. F. I. Co., 10 id. :iib ; Myers v. Liv. i Loo. Globe lua. ('()., S. .J. (J. Mass.. (J In.s. Law Jour. 440. 9%'2m Delivery of the policy may he actual, when delivered to the insured or his agent by tlie of!i('ers or agtMits of the coiu- pany ; or conyfrucfive, wlieii the policy is made out and reiuaia-j at the ottice of thv company, subject to the order of the in snred. 1 Philips fns. 11, § 14 : Inbnsh c. Ins. Co., 4 Ins. liuw Jour. 5;">7; Home Ins- Co. V. Cnrlia, i id. Un ; .May Ins. i GO. 1H!{. A policy may take efl'cct on actual or constructive dtdivery ; and uitiy be retrobpective where such i.s the intention of I lit- parties, and neither party knows the ]»rior circumstances. Sie anthoriiies last abore cited. im. When a policy has in fact been executed, and notice tliereof has been given to the insureil, if the contract is corapleto ENTIPKTY OP I'OLICT. 375 and the premium has been paid, or its payment wnivod, its actual ilcliveiy ia not essential to tin? validity of th(; contract. The policy is held by the company for the; benititi.f the insured, and ready, for actual delivery in an action at law for tho delivery of the policy. (941.) 1 Arnoulil Ins. 40, n. 1: 1 Pliilips Ins. 22, 23: 4 Ins. Lav Jour. 557; bid. 12'i, Tart; May Ins. ii9 ; Hrajjilon ». Aiiplpton Mut. lug. Co., 42 Me. 'ib'J; Xenos e. Wickham, L. R. 2 Mo. Lonli 29G. 1M5. Where the aecretary of tho company stated that " he had either sent the policy to the insured by mail or ])riv,ito hand," it was held " to be conclusive evidence against the com- pany upon tho (luestion as to execution and delivery of tho instrunuiit." Susaex Co. Mut. lua. Co v. Woodruff, 2 Dutch. N. J. 641. ENTIRETY OF THE POLICY. 1I4<>. Where a, ftolicy wa.s taken upon nhop, U>oJs, fixfii,rt'fi, ttud ■•ittK'k-l !>.-( lude, in specitio .sums on each, and one ileposit; note given for the whole, with an amount of cash as premium, and such policy was vuid (ii account of concealment of in- cinnlirance upon the land upon which the shop was built, and another on the tools, it was held that the entire jiulicv was void. (»4H, tt50.) Friesmiith i'. Agawam .Mat. F. 1. Co., 10 CJusli. Mass. Per Oontru : /Elna Ina. Co. V. Resli, H. C. .Mich. 1S80, 9 Ins. Law Jour. 547. tt47. The stipulation of the policy required that "the true title of the assured, and iucumbrancc thereon, should l)e expressed or the policy would be void." lleld : ''The failure to disidose a deed of trust on the house and lot, though avoiding the coutract as to the hou.se, would not avi.ni it as to the furniture named in the same policy, but separately appraised." Loclimer II. Home Mut. Ins. Co., 17 Mo. 247, affirmed 10 Mo. 628; Wilson o. Herkiinur Mut. Ins, Co., ti N.V. 5."?; Merrill v. Agrioultutal Iiis. Co., X.Y. 0. A., 7 liis. Law Jour. 531; Dale v. Goro Dist. Mut., 14 U. C. C. P. 548. 370 REFORM OF THF POLICY. II'IH. Wlioro ft |t(iliry covered house ainl fiiniifnrft, eaeli in a spi'tMtic, suui, aritl the policy wa^ brfiichfil by .m ineuiiilii;inoo ujiijii tlio house, not noted. Held; "Such jfohcy was void, not only as iu fiie huuse but the furniture also." .1>iO.) Haven v. Homo int. Co , S. »'. liid. May, Ih87 ; ,) Itia. I^aw Joiir. "IM, TKlfi : 8 id. ''iW, ok;, and uulhorities cited; A Honn F. I. Oaxos I.U ; Cnsli, Mass. Mi- 11111. Twd houses were ouibniced in the same policy and insured lor difl'erent suuiw ; tlie policy jirovided tlial "if the insured premises should reuiiiiu viicanl f(jr a certain time ■without notice to the eonipuny, tlie policy should become void." Held: "The fact that taie of the buildiiij,'^ remained thus \iicant ■without notice to the insurer would not invalidate the jioliey as to tht; other." Ruas ». Mill. F. 1. Oo. ot Clinton, 29 U. C. Q. U. 7;j ; CommercittI Iiu. Co. i>. Spankneble, 52 III. S3. 1ISO. A-^ a general rule, when the consideration j)aid or to be jiaid \h entire, the contract should be held to l)e entire, though the subject of it should be a separate and inde|)ondent iteni ; bui. when the {irice to be paid is iijiplied to the separate and distinct items, the contrict should be construed as separable. •2 liar. \ .-Vdol. H82 ; 22 I'ick. Muss, -l.-)? , 10 .folitia. Ch. -V. Y. 20'i , 9 Iowa 403; 6 Ins. l-inv .Tour. .'■>;).'■>, 740, T.'jT ; KunU v. .Ma({ Dist. .Mul. lua. Co . 10 U. CC. P. 573 ; Gore Dist. Mul. lus. Co. v. bnir F. I. Co. r. Ournee, 1 Paige N. T. 378; 12 Wheuton259. UKFOKM OF TIIR POf.ICY. 377 flAit* Errors or niisitakes in firo pnlicio^ aro oitliov of fad or 'if Oi*' hnv ; eiTiifn ,if fuct inay be t'orrM'.foil l.y (.'uurtH of K'luity ; but, as >la« An agreement, oral, or jximl, may explain an ambiguity oi' correct a niistjike ; but Llie pr^licy niu.st e:;liibit the ambiguity or th(? agreement must dtjuionstratc the miHtake. The court cannot supply an agrecMiient that was never made, but which one of tho parties iidcndid to make. Nov, in tho absence of fraud, can the court alter a policy as written if it he according to the understanding of <»/tf of the |)artios, although the otJter did not so understand it. 3 Hfinn. F. 1. Cases ,«1 , 17 La Ann. 22rt ; 23 N. Y. 3.^7 ; 1 Paige Ch N Y. 278 ; 3 li. .Monme Ky. 231 j H ins. Law .Jour. 17, i:{4, 2!>H, .'^Ji ; 18 id. :l7;^ , Continoi.Ul las ('<} > (iiu'liiiiau, 8. C. III., li' Ins. Law Jour 251. 1>«Vi. \\ iuMi an agreement for a policy, and the judicy as written, var}' ; or, where misUike has been made by the agent of the underwriter; or, in the tilling up of the policy, a Court of Ei.juity will compel the performance of the original contract and correct the mistake. But the proofs of such agree- ment must be conclusive ; if any matter be left in doubt in the whole evidence, the bill will be dismissed. 378 REPdUM OP THE POLICT. Whiij a Court of I \ ity is cilled upon to reform a wiii.ten contract on the groiihl of niiatuko, such inistiikt' muat bo provfil in Iho mont clour tiiid tiaeiiuivociil lUiiiuior ,• the proof rriiiHt lie fr'io from all mwoinilile Joiiht, if not quite inconl,rovtrtii)lii, ami cli'iir, ainl ovor\vlii;liuiiif;. I l'liili|i« Ins. 73, } 117, and aiilhoritii>ii oilod, n\in Ti, n I 4 Inn. Lnw Jour. 68, 214, f»H i H Ifc-nn. F. I. Own .134 j 4 •/. 209 ; Phiuuix /o». Co. v All. n, S. 0. Imi, Fell, 18H7 ; Liviinfiton c. Weit. Asiur. Co.. 14 Grant (Mi.v. 4t!l rurion*! Iduiitiiy ; Tiftvia v. PoHbody Ui«. Co.. H. (!. W. Va., \<} Ins. Liiw Jour. Ifil. <>«Ki. .1 uilgu Story siiys : " A court ouylit to he e.xtroniely ouii- tioua in the e.xercise of ,-mcli an iiutliority. It oii(,'lit to witli- hold .till where the niistake is not lunUi out by ttiu oleare.st fvideU'-o, accordiii",' to tlit; undcrstiindini,' of hoth paitios; and upon testimony entirely i-xiict and .sati.sfactory ." Story Kfj. Jur 5 Uil .t .Mrshi 0. ; I Aru'xilil hu. 51 ; 1 I'liilips Ins. 11; I Diier Ins. 134-8 ; a Ins. I-aw .four. Wy ; .J Scam. (11. 439 ; 4 id. 18 ; 1 (Jilman lU. 606. 1>»17. It luis Imh'U h(dil til, it to afford ground for roforining a pijliry on account of error in draflin;,', the mistake must appear to have been mutual ; and both the agroemeut and the mistake niu.st be dhowii by eiear and conclusive evidence, that the contract, as expre.s.scd, in different, acconhng to the under- stamlinji; of both ixn'tm at fhn time it was made, from what it \va.s intfuded to bt!. So. Mut. Ins Co. V. Yates, .S. 0. A|>. Va . r Ins Thw Jour. Oi!i; '. Quoen Ins. Co., U. ri. C C.,E. !)•, Pa. ERUOUS OF LAW. 1>5H. Where the holder of a mftchanic'.4 lion wag, hy mistake of the agent of the company. de.scribed as a niortga<,'(;(\ in the policy, and on trial the parties agreed that any evidence to correct any mistakes in the terms of th . Fiiber .; Midi. .Mnt. Lift. Iiia. Co., H C. Mich, IRiO, 4 Ina. Law Jour fi64 ; ifi. 214 ; Davega i Crescent Mut. Life, S. C. La.. 17 La. Ann. Ti^ , 21 .\. Y. R. 30.^ ; <> How. V. a. ^'Ju , ,'. In3. Law Jour. 821), i Ji;-907. Not allowpil on lapsed pulicios . 13 Ins. Law Jour. 0)1. un\ i- 1 ALTKR.VTTOX OF TllK I'OLICY. Ilt'^ll. AIteiatii'rt8 in thr policy an; coimaonly mailo l«y iiulorscMiuiits (IIOO) upon tin.* instrunn'ut it.solf, oi upon a .slip or riilcr uttachet I thereto ; nevor ujtou a renewal reoiiipt. I>il1la« Alterations duly in.strli'd in the policy by tlu? undoiwriU'.r, without any new signature, will Ixj valid if assented to by the insureul to (il)Uiiii suuh ounsuttt An iiaimUaial ull^'ro- tioii, honc.^iily iiiait<', will not annul tiie ioiidiicl. (OtfT*) 2 Vftllii fl I'lmiii). IW ; Kiirlio v. CliriHlJu, , Tiuiiit. 4 Hi. t i. Molt S. I*. 331; I Moore 117; Li>Khi>rn r rologmi, 4 Tniint. VM); ('timpboll c. Chrintie, 2 SUrk. 57; Liiinl (■ (loh.'rriioii, j Bio I' H HH , Kon-shnw ... Olmwb.'rl, 3 H. * IJ I3H ; i; Mtiore m:* French r. J'alton, 1 (iiiiup Ti. HOh, s. > 'i Kinl. 3fil i i i*hili|i8 Intl. 47, >> Wiicn tilt; [lolicy is allo'i'd for tlio puriio-so of varying or t-iilarging the risk, the ijljliL,'iitiMH to disclo.so all of tho material facts then known exists in its full extent, as if for a lu'W policy; aoil the e (tout of a comxialmont that remlors V(»id the alteri'd portion i.s not to restore the uvigiuul contract, but to annul the policy. 1 Bouv. Lhw Dicly., Title " Alterntioii," 117. fMi5;i. When a poli''y is altero'l to correct a mistake, tho nndtiwi'itir shall not afterwards object that he onght to have had an ini;rease of premium. M.ii-ah. (us. 217; 4 Ins. Law Jour. «3 ; Wubkutt lus. 3ti3. ^^m^^r^^ VI AimiTIONAI, INHIiUANrE. 381 IMMl. WluMi tlitiri) liUM U'ru iiiunif'i'.-ttly lUi altiTiitimi «{' :i l>aii>l iiHtiuinciit (without soal), tln^ |Mirty I'lnimitif/ under it luuHt «!Xjiliiiii tlu' iilttMiitioii. (Hmiiv. Fjiw l)\i'{y. tiiijtrit,) aPOI.IAI'ION. 1III7* The altcmtiiiti of ii policy 1)y a " stmiiytT "---otio wlin hiH till luiiiit'Clidii Willi tho iiiMiiaiict' — williout ctiiiscnt ur privily of tin; itusiiruil, is t•• rc-ttorcil with certainly. J L>iM>r IiiH 2V, I l'hili|H InK. 71, § 115; I Orot'iiletif Bv SiJU ; 1 I'ariont Coiiir. JJ-J, i Taunt. :i3o. Al»i>lil()N'AL INSl'U.lNTK. \m OTIIKK INHUUANCK— DOUHIK INSURANCE. , \MH. (.''JU'hticn <>j (li.':]>i)liry,—" ll'ilic assiirdl hIihI! have, or nIiuII Inn-- allor make any other iimuranceoii lln' inoiH-riy lirebv insurwl, or any piirt tliirtut. witli'iiit Uie (•oil-cut «( tin- ct)iii|Hiny wriitcii licrcon, (ii.'n ilii, pdlick- fliull I* \oi(l.' 1M&1I. Tliir! condition oontcjaplali^s that consent to fnturti insurance shall he given in ailrniicr, for the jtolicy becomes void if th'tre ia any n'lbucijuettt insurance without consent. A sahxequeiit written consent for other insurance is not, on its fa(^,o, a consent to piisi insurance, l;ut iuij)orts rather ix/utvre inHiirance." JSfCiirity Itis c. Fay. I Ins. Law Joiir. lOK ; Suttierlfttul r. Iti3. Co., 8. 0. A.Va. ; 8 i'.' IS.' ; ContineiiUil Ins. Co. v. Heilnuui A Cox, S. U. III., vl . 92 ; Bukfre, IiiH. Co., l'.'. Gray Mass. 2U& ; In the earlier form.9 of policie.s the conditions required that nil })i'ior insurance must be. noted at tlie time of takin<,' the pulley , and all niihsr.qneiit insuianee was to be Ufited with " all veasjuablo diligence," and endorsed upon llie i)olicy. Kimball v. Ins. Co., 8 Gray .Musa., 4 Heuii. F. 1. ("am-s I'm , l H. r.HO ; Uoiao Ins. Co. r. Gwalhmoy, a. C. Va.;12 Wtind. N. Y. 507, affirmed Ui id. .385. mm 382 ADDITIONAL INSUKANCE. 070. Tlie object of this stipulation is to providi'. a.yaiust owj'-insnraiice. for, considered iu any other light, it militates against the interest of tlie underwriter, as is very pertinently put by Mr. IIink. He says : — " In Aini.'rioaii practice tlie first underwriter, ichih he. sfands alom', is nnJer tliut nil". He pays all the Iuhs ; he is iri the umlisturbe'l [lO^tses- Rioii of «/(' his ri^litH. But, if 'otiier insurunoe ' be taken, wliether large or email, j^eneruUir special, its 0!ily eflect U|X)ii him is ti,> share liiri loss and diminish his liability i and to just that extent it is to him a favor and a benefit, insteiul of a Imrt or detriment. The only rir/ht he is thereby de{)riveil of ih the ri(;ht to lose more money than he oihervvitie would.'" 2 Yienn. F. I. Oases U2, 134; Peun. F. I. Co. v. Kittle, 8 his. Law ./our. 326, i US , Graves v. Ins. Co., 43 Wis. The giuierally recognized priiwiplea applicable to tuldi' tional insurance, under the above-cited conditions, are em- braced ill I he following points: PERMITS. 1>7I. The privilege of " other iiitiuranec irlthoiU notice till requested " atliuits of any amount of lutJitional insmance, either prior or subsequent, without question, notwithstanding the priuteil condition of the jiolicy to the contrary. VI W end. N. Y. 507 ; Tyler i. -Etna Ins. Co., It> i,l. 3S5 ; Flanders Ins., Ist Ed., 4.'). 07la. The privilege of " other insurance to the araount of ten thousand dollar.^," or " total insurance to the amount of ten thou.sand dollars, iacludinc; this policy," limits the further insur- ance to the Slim named. Any other insurance beyond the limit spinified, without furlher specific consent of the first insurers, voids the policy under the stipulation requiring " 7^o^^C6' and consent,'^ absolutely and at once. (9751.) tt^a. Hklu- Tliat the in.l;<6; 12 Gray Mass. 265 ; 3 Benn. F. I. Cases 114; 19 N. H. 580 ; Oscar l: ProTineial Ins. Co., 19 (J. C. Q. B. 257 ; 12 U. C. C. P. 133 ; Winuaugh «. Provincial lus. Co., 20 IJ. 0. C. P. 405. i ADDITIONAL INSURANCE. NOTICK OF OTHKR INSUBANCE. 383 1173* Whore the condition of the policy required that " if other insurance is effected on the same property, the insured should glut notice thereof, and cause the .same to be indorsed on the policy, or the policy would be void." (lOlO.) Held : " The iiisiired uiust prove that lie gave smch notice of suliHequent pohcies, or he could not recover. Notice of an ' intention ' to iirociire .siib- ( U. C. Q. B. 316 ; Burton u. (Joro Dist. Mut. Ins. Co., 14 U. C. tj. B. 342. By mail ; Shannon v. Hastings M. V. I. Co,, 26 U. C. C. P. 380. 1>T4. Where the condition of the policy required that " notice of other insurance must be given and indorsed on the policy, or otherwise acknowledged and approved in writing, or else the policy shall be void," the insured made a second insurance and notified the company of the same ; to which the secretary replied. " 1 have received your notice of additional insurance," Held ; That this was an " acknowledgment and approval in writing " within the meaning of the condition ; and that, after receipt of the notice the policy continued in full force until the companv rnaile their election to termir);ite the policy, and nsnie such determination known to the insured. Potter It. Oat. Mut. Ins. Co., .5 Hill N. Y. 147 ; Angell Ina. 143 ; 1 Parsons Ins. 119, n. 3. 1>75. Where the condition of the policy was " that prior in- siiruncf, unless expre.ssei! in the policy, should avoid it," and a prior insurance was not thus expressed, though claimed to be known and assented to by the company. 384 ADDITIONAL INSURANCE. Eki.d : Thai thi; policy was void, nnil that parol oviilence was not admin- eiHe to mIiou tlini tlie prior iiiwuraiico wa." known to and asHonted to hy the company J an'l ihul tlio jnilioy was reci-iveil by tlie int^ured supposing lliat it contained a recital thereoC. (JI81.) Carjifntcr -■. Wasb. Ins. Co., 16 Peters, S. C. V. S. 4J),'); 2 Benn. F. T. Cases 120 ; Coucli t. lud. l"o., S. C. £., Oonn., 1 Ins. Law Jour. 13(5. ADDITIOXAL INSUKAXCE. 1>76> A rucitation of "priur" insurance, in the Ijody or on the niurjiin uf a policy, is a conii)liaiico with the coiKlitinn requiriti!:,' .siieh insurance " to be noted on the application or indorsed on the jiolicy, "i" othcrvise approved in ur 'dinghy the secretiiry." Stueey v. Ins. Co., 2 Rinn. F, I. Cases 108 ; 3 id. 113; 3 Ins. Law Jour. 191 ; Ins. Co. . . (iallatin, S. C. Wis.. & iU. 00 ; 14 N. Y. U. 258. 1>77. When, at the time of the insuranee. the insured gave written notice of prior existing in.surance, wliich tlie coraiiany failed to indorse on the policy : — Htu> : 'J'iiat the conijiany wa." e.etopix'd from setting up rtuch prior in'Mir- ance n'- a delVn.'^i' to an action on said policy. Uki.d ; That a recital ol'" prior in.surance" in an application i.'< nofici: to the company of sn di insurance ; hu! a recital of a wish to obtain suhse'jnent insuraiia u-a.i not iicticc of such insurance, when obtained. Hti.o: That it was the duty of the company, u])on being notified by n8 own agents of the aiiditional insurance (notified to puch a^ent) to in- dorse the same upon the [Xilicy o( the in.sured, or notifij liitu of th,-ir refu.sai to do ho: and, bavin-; failed to uo po, they were estopped from .setting up a8 a defense the tiiilure to have sucli aiiditional in.niranvc indorsed ujx)n the pol icy. N. tt. Ins. >. (,o. (Jriffin, S. C. Te.vug, Ifi In?. Law Jour. W.i; 1 i West. In.- Rev. ISO. 1>T.**. When tJie charter provides " that the con.sent of the presidoiit it! ivritinr). t-tu," shall be necessary to the validity of the {iolicy in ca.se of any subseipa nt insurance, and the in- sured notined the president and secretary of a second insurance and they verbally con.-iented to the stinio, the failure to ulitam the rvritti'Ti connent of the pn-sident wn.s fatal to the ]iolicy. IG I'eter.« I'. S.4'J5 ; 13 Cusii. .Mass. !«:>; 61 I'a. Sta. ■tO'i ■ 18 Iowa 42(1; Bil- liQglon e. Provincial F. 1, Co , 2 S C. K. Iti2. M OTEIEK IN.'^IIltAXCE. 385 WAlVKll (.iF TUK CLAUSE. ■"A ;■-''■ 071I. '' In 11 miitiiiil company, as a gcuoral rule, no ageut or (illicer of the company has authority to waive its by.la\v,s. An agent cannot accept notice of other insurance, or waive its ciin.se'piences." U) Otiiu R. U!» ; 4 Zahr. N.J, 417. Per Contra : 22 Coon. 75. Notice of after the fire: Atwell v. West Asar Co., 1 [.. 0. J. 27;); Souprnsr. .Mat. F. I. 'Jo. ofOham- bly * fiimtiiifftloti, I 1,. C. l!)7; I'l. Council 17 t{. L. 47, \.i L. C. J. 3'!, 1 L. Q. J. 279; lUm-iiy W. 0. .\I. Co. r. Mnt. I'. I Co., 11 U. 0. Q. K. ,'■.10. No tic.> after (ire, under short polioy, sullicient ; LafU'ur w. Ins. (Jo., 22 L. C.J. 247; Eraiiui Kittle I'. IViiua. F. (. Co., 8 C Pa. ; Finsiibeck i>. ini.enix lua. Co., 54 Cat. 422 ; V'hllbrook u. S. E. .Miit. Ins. Co., 37 Me 137. O.HO. The .stipulation that '' per-;ous instiring property must give notice of iiu>j otji.er insurance on the same, and cau.se such other insurance to be indntsed on the |K)licy," applies to subse- quent as well as prior instirance. (. S>8!>. i Sirtc'v r. Franklin F. I. Co., 2 Bi/nu. F, [. Cases lOa, 2 Watts ,k S. Pa. 500. !>S|. Parol notice is not a cotniiliance, at law, with the condition of the j)olicy requiring otlier insurance to be iniloraal in writing on the policy. (OT.H.) lUi.ii: That, ill the nbscnci' of any stipulation in tlie policy reipii ring niitice (if other iiisnrnnre lo he. in inritini/, and no ipu'stions in the afip|ii;ii- tiun concern infi; tl, parol nii(i<:c wa.-i sutticieiit. Hki.d : That pariil notice to an a;;eiit, wiiu wa< only authorized to receive anil forwarl appiic.itioiis, .•'olicit insurance-', an! receive preniiiou notes and c.ish percentage-, and wliili acliially en.;aieclni preparing an application for the polic> in (]iie.-1. 9H'i. Mt;re knowledge of '' other insurance " upon the part of an agent of the company or a luoker is of no avail to the insured if not indorsed ujion the policy, whicli contains a coii- dilion re(|uiriiig such 'inili))'>liaiico with the stipulation that the insured shall state what dther, if any, insurance has heeu made on the same property, will be too late, 22 \. V 402. Per Contra: ] L. V. i. ir>:, 27K : 22 L. 0. J. 217 ; 11 U. C. Q. R. 510; Priv. Coiiiicil. 7 R. [.. 17; i;i L. (.". J. 3t!, cited (). O.H4. Wlieiv an at,'eni fur two companies issues a policy in each company to the same party, and fails to make a notice of " other insurance" un nne or Ixitli of the policies, the iMtlicics are valid, as the companies must be kiken to be aware of all of the facts in the case since tlir prccioiii^ p(jl,icies were in their ovm, eoinpiuiieff. (1>7T«) FlimdiTs In:?., Ut Ivi., 12; Rowlty r. ,Ktn« Ins. Co., 40 V. Y. R.r,')!. iisa. Whore tlie stipulation of the policy recpiires votice of any '' other insuiiUice " Jiuide on tludr bfih'iri-il, !iiiil ikpI \iy :x third [iiirty witliout, liis kiiowk'dfr'i i.ir rt'i.Dgiiilioii. .\s where a miinini'^-iori meridiiint or warehDu^eiiitiii (•over.s ^ooil.-^ by " ttif' if-'Hiil i;oiiiiiiis«i(iii (jlaii-*e," an I sonic ot the ;^o(idH may l)e covi red by the ouiui nnlera tto'ilrr : Hki.p ; Not to bewithiiitheclan.se, and thai the owner i>r oumiin.'^f-ion iiitrchant might jointly or ciimiilativelv rec(i\tr tlie .single and tull v;iliic of the gotid?." ^.1 Pn Sta. 350 ; 7 (!i;li. i.a. ;^.".l : 2 i'.. Monroe 47 ; [lough c. People's F. I. Co., SG .Md. 31I.S, lionnmge v. Ins. Co., •>:;. C. N. J., 1 Green 110; 1 !Vnn. l'\ I. Cases m). Perf'oMlra: Home c. Bait. Warelio. Co., U. B S. C, Oet, 1S7'!. {|.H(>. Other insurance, not cun.sented t(j by tlie cotnjKiu}', but acknowledoed in the proof of loss in a coni[Kiny of bad repute, not authorized by the Federal government, is ntjt an infraction of the I'ondition as to nllicr iu-,uranc?. (lo ii. L. R. 2'.)5.) II.HOa- liut.ole insurance by mistake. See case of Guathier V. Waterloo Mut. Ins. Co., (.'. Aj.p., Out., Mar. 26, 1880, 44 U. C. 1*. 40(1, and authuritii.-s cited. DOUIiLE INSURANCE. i>.S7. Double insurance is additicmal, and valid insurance prinr or subsequent, upon the .same subject, risk and intere.st eil'ected by the same insured, or for his benefit and with his ¥ I ii f I DOUnLE INSURANOK. 387 kno\vle(lj,'ft and consent, in wliicli wise the policies are considered as one and the sanij, tho underwriiers being liable -pro rata, and entitled to contribution to eijualize payments made on account of lo^iscs. Mai-ili. Ins. 121 ; Park Iii3. 280, 2'^2 ; Hopkins Marine Ins. 2(U ; Annesly Ins. 291; Atigt-ll Ins. 22; Fla'iders Ins. 3(5. § tl ; Muson v. Andes Ins. Co., 23 U 0. C. I', .ii; Gilo.liriS!I. " Double insurance is anotlier name for over-insur- ance, but is more api)licable to ' (Inpllcate ' insurance to the whole amount of the intorest, which d^e.s not exhaust the insiirable interest of the insured, uiiles.s the policy contaiu.s a clause prohd)itin!i^ other insuranc ' ; nor even then, for he can, notwithstanding, make douhlc Insurance in sirnufJaHcoas policies ; which is, in ellect, a m^re insurance of the solvency of the underwriter by the policies of the others; for he can recover bui one indemnity from all ; and if he ompel full indemnity from some of the underwriters, they may come upon the others for a pro rata contril)ution to equalize the }»ayment.s." (Ill.StJ et scq.) 1 rtiilijis Tns. 187 et ser/. und Huthoriliea cited, .Simultaneous Insurance: I Magens' Ins. 13, n. 3 ; 2 id. 34, Old. of Spain ; Ord. Genoa S5 ; Wnsliington Ins. Co. c. Davi.^ou, 30 Md. 91 ; Manhattan Ins. Co. «. .Stein & Zaiig, 5 llnsh Ky. <;J2. The Contributiiin clause cirectunUy does away with Simultaneous policies. imi>. In Frame double insurance is not pM'initted, (Code de Commerce, § 35'J), and Eaierigou (p. 23) thus refers to the law and its operation : — " Since it is allowed to have insurance only upon what la put at risk, it follows that it is proliibiti'il to cause to be insurci by a second insurer wimt ha-' already been insured by tlie (ir.st. It is plain, however, that tlii.« prohi- bition does not exteiid tou plurality of policies, when their amount does not exceeil the value ot'lhe subject insured. An in-iurance is not the los- unc for being contained 'u difTerent wrilinjijs. It is not multiplying iiisur;ince to have tlie risk which one lias taken re-insurcil,or to have insured the solvency of one's own insurers." (1019.) 188 DOUBLE INSUUANCE. NON-CONTlUnUTIVE CO-INSUHERS. ll!ll. Other iusiirance is not always "(Imiblo" iiusuranco. All insuivil may take pitliciL's upon difTerent parL-t of tho same buildiiii; ; or of ttic iiU'rcliaiKlis(i witliiu the biiiMing; or upon cliffiTiHil interests in both, without oifectiug ilonhle insur- ance. Insurance by different parties of distinct interests in the same subject, as njortgagor or mortgagee, owner, reversioner, lessor and lessee, vendor and vendee, etc., is not double insnvii.nce. Of>2. Where a i)olicy in one company covered -a huililiii;) only, and a subsequent policy .if anotlier company covered tlie hulUling, vuichi tiery, /oo/s, heltiiiff and stock for the same owner; it was held not to be duuhlc insur'ntce wilhin the meaning of a (dause in the first policy ]>rohibitiug double lii- surunce without notice to the insurer. (Xot sustained by .sub- sequent rulings.) (1M>;$.) Kloat V. iJoval [lis. Co., 40 Pa. Hta. 14, nniri.'; c. Ohio Iiii. Co., ,5 Flaramoud O. 4Cti. over-ruled 5 Oliio 4i 7 ; 5 Hill N. Y. 2(>s, ov<'r-iulcd ,Mi N'. y.399. 'UO:{* But on the otlier liaud, in a case where a jwlicy covered goods in one company, and a subsequent policy in another company covered stove and goods fur the sime owner, the first company claimed their policy to be void by reason of the second insurance " not notiried and indorsed thereon." It was • — Hkld: " To constitute (/i/i(/>/e innuiiuire the same risk mn-^l be covi'reil hy tlie second policy, for tlie benefit of the same person, ainl in, tn any e.r/e'i', 'loiible insurance, and tliej:uO'l>' beini; protected by the sei'ond policy from the perils of fire made it '/!*H6/f' i«.VM;v//i(;'.', and broached t be policy." " It iloe.'? not appear that if asulyect in'ured in the policy is then insured again to an amount iti the aj;gre^:iteexceedin{^ its value, it i* less n double it) eq. DOUBLE INSURANCE. 389 USDER MORTGAGE INTERESTS. fM> I. The iiitftvost of a viortgageor is so entirely distinct from that of a morhjagee that the siniiiltaaeous existence ui two policies on the same property, one hy the fornu^r, the other by tlie hitter, does not create douhle insurance. (7JII.) Fox II. Phoenix F [. Co., r.J Me. .133 ; .Cma Ins. Co. v. Tyler, 12 Wend. .WT, s.c. K! ///. 3X") ; Mm. 8»fety Ins. (."o. v. Hone, 2 ("om^t. 2 1;^ ; Flanders Ina. •'(.)('. ; 2 Bcun. F 1. CiLsej 72 ; 4 (•/. 781" ; Franklin In-t. Cd. v. Onike, 2 B. Monroe Ky, 47, !>!> lil. 1 ii.-siirance by a mnrtgngi'c of his interest is not within the clause nf a "prior insurance;" but if .such insurance bo made for the betielit, and at ttio expense of the uiortgag^'or, it is within such i-liusc, and would avoid a prior poliey, Fljlbrook ('. A'li. Iih. Co., 1 Citrtia U. C. 103 ; Cirpentt'i- r. Prov. Wii.sli. liis. Co., n; [\>tor.iU. S. 495. A policy assigned to a ritorfg ^/^'f as a collateral sociiri'.y is within the provision in a subjeiiujnt policy reipiiring notice of prim insurance. BliiLs V. Stinstead A .Sherb. Mut. M. S. C. 1S.S7; M. L. R. 25, C. 117 ; 14 R. L. 130. Seco id mortgage ; Livingiton u. West. A.sj. C >., 14 Gnnt Ch, 461 ; Barton V. Gore Dijt. Ins. Co., 14 U. C. Q. B. -UJ ; 3. r. 12 Grant Uh. IGR ; I Beim. F. I. ('a1: .N'orvTich F. I. Co. «. Booimir, 52 111. 442. 1>!>5. A policy is not avoided under conditions re(piirin2 notice of subsequent insurance, because a .second policy has been taken without notice, in the name of a mortgagee of first insured; fur if the second policy was for the exclusive benefit of the riKirtgiigp'', it was not within the condition; and if taken fir the beui.'lit of the mortf/ngi'or (and this should be deemed within the condition), then the second policy was void, under a condition in itself, requiring notice of prior insurance. J.ickson (.. Masj. Mut, P.I. Co., 2T Pir'^. Ma33. 418; /ox o. Phceaix Ins. Co., 52 Mf. 333. UNDER RE-INSURANCE. 1>1H». The clause as to doiMe infitraiice or over-insurance is inoperative in a policy of re-insur'ince, unless those insured made other re-infurt thereof," iy lii'ld to refer entirely to re- insjirnnct on the same interests ; and if there be no other re-innuranixs, the re-insurer is liable for the amount of the poliey. Milt. Safety Ins. Co. v. Hone, 2 Oomst. N. Y. 235 ; 2 Benri. F, I. Cased 590, 692 VOID AND VOIDABLE TOLICIES. VOID I'OLICIES. !>1»7. The procurement of a void policy is not a breach of the ciindition a,<>iiinst further insurance without notice, so as to avoid a previously existing policy. (lOOO.) IIki.d : Thv first pulii-y hming lieeii uvoiilud by sub-i-qiiciit insurance witliout notice, the second pulicy wan liable for thf wliulo Iocs, ruitwith- staiiilintT It'' itipiiliition that " in case of other iaNiiruiice they wouM be liable ouly tor their p/V( rut'i projiort'.oii." Where i\ first policy was void from " increase of risk," or other cause, ami a xerond policy was subsequently taken with- out notice of " prior insurance." IlEi.ii;"Tiie ///.'.» ; Hand i<. Williamsburg l<". I. Co., 67 N. Y. 41 i Jackson i'. I'urmers Mut. In.^. Co,, 5 Gray .Mass. .02 ; Hardy v. Union Mut. F. I. Co., 4 Allen Mass. 217 ; Scli-nck «. Mercer F. I. Co., 24 X. J. (4 Zab.) 447 ; 2 Ins. Law Joiir. 113; 3 t:l. 525 ; 8 «,i. 181 , 10 id. 354: 3 Benn. F, I. CaseH 131. SHIN, [f the insured cannot at any time recover upon a second 'olicy, coiitainiug the condition against other insurance without notice and cou.sent, the fir.st policy is not thereby made void. (Authoriiies swpni.) A second insurance, which is vo'td, does not avoid a first policy containing .stiimlations tigaiast subsequent insurance it ! m VOID AND VOID.VBLK I'OLICIKS. 391 without notico and conHCut, evoii flioni,'li (ho iiisurera wlio made such lU'iil ] policy conipromise and pay the h^ss. Uigler r. N. Y. Ountral Ins, Co., 22 N. V. 4W ; 3,1 Fii. SUi. 397, and aiilborilios tujirii ; Fliiiiders Ins., lut Kd., M, n. 2, mUhoritioH cited ; Oiile v. Ins. Co., 41 N.II 170; Hiinderliind r. Old Dominion In?. To., S. C. Va., 8 Ins. Law Jour. 1hi, und iiMtliorities iherc cited ; Wilson w. v^tiecn liia. Co., U. H. C. C. Pa., 10 In.t. liiiw .foiir 137. t'i:r Ciinlri : (.'iirponter v. I'l-uvidence Ins. Co., 10 Peters I'. B. 4'.'") ; •a S. Y. 402, ^itiim; 5 R. I. :)«. 1I!MI. MMiere a jh'"^'' hi/durance in represented to n siibst'- quent iiLsurer to be on tlie .same property, when in fat;t it dues not embrace (dl the property covered by the second poHcy ; or where the fir.st jKilicy is in spooiHc amounts, whilst the second i.'5 f;eneral. the policy i.s not a voided, I)i3c,ui3(^ tiie insured is nut bound to give any details uide.ss in luiiunl of, or required to do so by the by-laws or conditiims of the contract, Be.iedict c. Ocean Ins. Co., 31 V, Y. R. 3W, s. o. 1 Duly N. T. 8. 1000. Where the questicjn raised was whether an excess of insurance, which exi.sted during the currency of the policy sued on, but which had ceased (o exist before the L)ss occurred, would (t.vold the polieij, it was lield that the contract was aoid from the date of the over-insurance. Bigler V. N. Y. Central In.s. Co., 22 X. Y. 402. 1001. Ou the othei hand, in a case in Illinois, under a policy which stipulateil thai " if the insured should have existing, during the continuance of the policy, any other insurance not consented to by the company in writing and m intioned in or indoivl upon the iioliey, then the iusurance sliould be void. ; there existed during a portion of the terra eml)raced in that policy " other insurance " not consented to in any way. Hki.u: IfHuchotluT insurance liiil C('a. .Schettler, 38 111. 16(5; 2 Benn. F. I. Cases 83, n. 109; Forbijs I'. Ag^awam Ins. Co., 9 Cusli. Muss. 470 ; Clark r. M. E. .Miit. Ins. Co., <; Ciish. Mass. 342; Gale y. Ina. Co., 41N. H. 170; P'landers Ins. 51, n.; H Ins. Law .Jour. 212, and authorities cited; Geo c. Ins. Co., t^Ct N. H. 04, 14. Ins. Law ,Iour, 489. VOIDABLE POLICIES. 1002. "Stipulations as to prior or subsequent iusurance are designed to apply to all cases of policies then existing in point "•^^m^ i^^^^9!rf-"VinHH!l 392 VOID AND VOIDAIlI.K TOLICIES. of fiiit, whrtlicr ilu'V I'f riiiil or vit'iiJabh:" (.liiatico Story.) Hince, us ii policy ohtaiiu'il l»y misiopri'stMitiiUon of cost and valiK! of piciiiist's is vo'nhihh' only an'l not void, so, under tlio condiliun n-qiiirinj,' notice and constant to prior or other insurance, tlit^ second undorwrifer is ciititliMl {i, notice of such other insur- ance. Iliblianl (' riiirtfoni p. I. (7o., ar; Imvii ri'J;") ; McLarlilnn i>. .Kliia Ins. Co., 4 Alkn .V. n. 173 ; Hftpr r I'hti-iiix Ins. Co., 4 Hush. Ky. '„'4'2 ; May liis 4:w ; Wood lus. .'.Hf. : CnniplKll r. .Kiiiii Ins. Co., S. C. .V. S. 1m60; Riunsiiy \V. 0. M. Co. 1'. .Mat. I', r, Co.. 11 r. C. (J. U. f)lG; Cnrpenlcr « . I'rov. Wn.-tli. Ins. Co., 10 IVtpra (' .S. -In;, , Firt'Micn's Ins. Co.i .lldlt.lJt'i'eivor, 2 Ins. Law ,/onr. IHSO, '^li; Con- tinental Ins. Co. r. lleiluiim and Cox, S. C. III.. fiJ III. M.") ; '.' It..s. I.uw Jour. !U ; Gee (■ Cheshire Co. .Mill. Ins. I'o., ,M'. N. H t;.". , Allison u. I'lKx-iii.x lu.s. Co., V. v., C. S. C. C, 4 Ins. Law .lour. 148. IOO!{« Wlieri; a policy contained a stipuhitioii that it .--hoiihl l>e void if other insurance should not he endorsed on it. IIklu : The existence of prior insurance did not make it (ilfuliitclif void, liiit invalid and loiduhlr, thou^di cajiabli; of hcinii con- finncil and made valid by acts of the insurers showing a waivtir I'/ the defect. (Authorities -iitinv.) lOOI. A company irceioinrf notice of "additional insur- ance," and failing to rc/i/ the poliey in consequence, cannot resi.st recovery in case of hiss on that ground ; sudi waiver of right.s in regard to additional insurance, however, will not debar the company from the beiiclit of a pro rata contribution with the additional jiolicies in ca.se of loss. ( 2. C 199 I'a.) Hki.O: Tlinl wluMi a imliev for "oilier iii.«uriiijce " wuh ftpparently valid on it.-i lace, and coiilil only le i-leiwn lo he roiil hy |)reoeiliii<^ nuiller.-* in avoidance, it was to he deemed only i-nUhihh,. 'Die pleadiiij; of such iimtterH in avoidance rtpiieitiiined solely to tlie iNiinpiiny i.ssuiiij^ the jxiiicy ; the plaintiff i;^ not eiitit!e(| to .set ap such niattei's. llibhard v. Hartford Ins. Co., :)3 Iowa aj.j ; I Ins Law Jour. 17,S ; Jackson v. Mass Mnt. Ins. Co., 23 Pick. 418; Knight r. Kuteka Ins. Co., Iiis. Law Jour. eo ; 8 Phila. 32. iOO»5. Where other policies, which are alleged to create the over-insurance, are void at the time of the loss, they are no obstacle to recovery on the]>oIicy on which the claim is made; but, \i voidahb' only, for some breach of condition for which the insurer might avoid them, l>ut which right they had waived, the over-innnraixce still exists. iH>02.) VOID ANP VOIItAllI.I'; PoLKJlES. 893 Tvlor !■ ^ttm \r\n. Co 1'-' Wciul N. Y. 3s") ; Flaiidprs Ins. 49, FIrrmiin's Ins. Co. (■ Holt M I'll. Stu. 40J lolt, :) Ins, \jiiw ,iour '21 lOOO. .V iHilicy wliitli 1ms lu'coiiio voidnhlc may \h- a.ssij,'ijed. It the insurer, wiili tlu' kiinwIiMli^..- of tliiit tact, c()!iseiit.H to the a»signiunnt, ho waives tho right to avoid and must stuud by the policy. (Authorities *t(.tp;«..) • I007> Stipulations il«H'Uuin}j policies ?v)/'i! in certain cases liave lnH'M jjjonerally hcM or construed a.s rendering them not nb.S()lutely void, but voidable at tho option of the uiuli-i writer. Anii stich right of avoidnnee wa.s 3ul)Joet to waiver, either by e.\]'ress agreement or by the acts of the |>arties. David r. llurtfurd Ins. Co., 13 luwa 6U ; Mitcbell v. Wycotning Ins. Co., 51 Pa. SU. 403. lOON. When a policy is neither I'oiil n^r voiilidile x/hih its face, but merely voidable l.iy the underwriter upon duo proof of the facts (prior insurance not noted), and the amount of which had been paid upon the happ(uiiug of a lo.ss, it was hehl to con- stitute such " '(ddiMonal infittratice," although it might have bet-n avoided by tho company issuing it, by extrinsic evidence. (I002.) I'lifiic r. Johnstown Di^t. Mut Ins. Co., 7 U. 0. C. P. .55 ; Lackey u. Georgia Hoiiii' Iii3. Co.: -1- tJii. 4")i;. lOOfK When the condition of the policy stipulated : " If the insured shall have, or shall htuvaftur make any other insurance upon the property hereby iiLSure'd, or any part thereof, whether valid or othervme, without tiie consent of the company written hereon, this poUcy shall be void," all such jjolicics, whether void or voidahh onlij, will be "other insurance without notice," and will invalidate the ]>olicy containing the stipulation. (lOOS-JI.) Continental Ins. (.\). /. Ileilmai & Co<, !) las. Law Jour. 'Jl, § 1(1G. Per Con- tra : Allen (■. Merchants In3. Co., S. C. La. IS80. RF,.\SOXAm-E DILIGENCE IN GIVING NOTICE. lOlO. When facts are not in dispute, the court slioiild deter- mine, as a question of law, what is reatMilionnl insiiritnce, i^iveri to thc> coin puny or it>< ii;;<'iit, lu' a cniiiiiliiincc wiili tiic coiulition M>qiiirini{ actual notiev of tiii iiiHuriiniM'. (l04fK) 4 Ini. Law Jour. 'J44, «rtl ! r. /./. MQ, 730, 803, H06 ; li iil 707, 724, } «0, 7;iO; 2 Bonn. F. I. Oaaoi (17, il5S, tJilO; 4 ../. 2iiU. HKNKWAI- f)F DOUIII.i; INSUHANOK. lOII. 'I"li(! rcufival of II jtrior iuHiiriuico, inciitii'ii il in the a]i|iluiiti(iii IVir a .subset jiiciit policy, is not wiliiin lln^ toriiis or sj»int. III'.! pnivisidii in tiic siibstHjiiunt policy, reijuinng notice in I as»! of iniikiii<^ otliei' instinina!. Tilt' insnicil lit'M a poiicy ior Jice yours, sij,Mii!(l by tht.! jircsi- ;llio wliulo icriii I aiiilat ihc cxpiratioii of the Conouril i^nduy, tlif iii>mrfr wif at, lihoriy to renew it, or luiio a policy for the Haiiiu amoniit m any oilier com- |iany wiliKiiil {^iviiii^ any lurtlu'r notice to tlio company. First Hap. Soc. v- UWUboro lus. Co.. li) N. II. 580; ISruwn c. (Jatlaran^us lug. Co., 18 N. y. .•W.^; Parsons r. SlatidHrtl Ins. Co , V. S. 0. I{. 23U ; Dielz v. Mouml City Ins. Co., ;is JIo H5 ; ;! Bonn. F. I. Casc^ 104 ; 2 iW. 20A. JOIti. Where a ."^t'fOiitZ jiolicy had endorsed upon it.s face, as well as in the a]»pliciitioii, "!?2,0()i) on .same property in the Peopl(''.s Mutual." llfci.o t Tiiat this st.iti'inciit w.is not a conliimiii); warvautj, ami wa.s satif'tif.i hy tilt' e.xistpnoe of such in.-iiirancti at tiinlimeof Ls-snint; hucIi sot'oiid jioIi(;y, thon.'li it. mij^ht afterwarils have e.xpireii, bei'ii canceled, or a\oi(ii'il by acts of tiie insnreil. Forbiish v. Western Mut. Ins. Co., 4 (Jray 337 ; 3 Bonn. F. 1. Oases III ; 2 Ins. Law Jour, (iil ; 14 Gray Mass. 45'J. To iiiiike other coidhivmis insvranre obligatory upon the inbiireil, such agreenieiit must ap]iear in the [Milicy. The follow- ing is the customary form : — " The in.^ured to keep other insurance (coiipurreiu herewitli) to the amount of dollars, or be held as co-insurer for any deliciency in such amount at tlie time of any loss." 1 Bonn. F. I. Cases 532 ; Liscora i'. Boston .Mut. F. Ins. Co., 9 Metcf. Mass. 205 ; McMiihon v. Portsmouth M. & F. Ins. Co., 2 Foster N. H. l.'i. RK-INHUKANinC, LIMITKII AM(»l'NT«. 30S I01!t. \Vlit rt> im iusnriincc by-liiw indVuloH tliut " llic ii},';,'r(!- giiti' aiiiiiiiiit iiisuidd ill tliis mul ollinr i'i(iu|)uiiios, on tin- uJiovo- montiiiiHMl pnijK'rty, hIiuII not excfiMl hoo-thlvdH of tlio t'Htiiuattid cash viUuo, any fiiitlmr in.siininii! ulmvc th« two-UdidH valuo V'oiiltl rciiilci tlic policy void." fliiU'yi |Ii)P'!h'hUt Idm. (Jo, 12 Ornv Miws. r< must Hj,'roe to any chau},'e ill this amount ; then! i.s no authority at law or ill equity to reform the contract, hy sulwtitutiiijj; " actual " for "estimated." Insured .should have had the amount chanj,'od when takiui,' the additional insurance, and made to conform to the aui,'iii(!ntcd value of the jiroperty ; but failinj^ so to do, it, unfortunately, is not within the power of ohaueellor or jury to help him. (2 C. 199 Pa.) Ridiiiiondville Seaiinary ii. Ilatnilion Mut. Ina. Co., U Gray Mass. 459; Single- ton ('. Hoonc Co. Milt. Ins. Co. 45 Mo. 250; 4 Metcf. Mass. '.'Oii. EIMNSUIIANCE. lOKl. CoiitliHon of the. jxiUrij. — " He-iiisurunco, in cuho of li^s'^. to be settled in pioportioii as tiie sum rfinsured uhiill bear to llie wliole m'.iu coviTi'd by tin- reinsured ooiiipany." 1017. Chiof-.Tu.stiee Takk says : — " Ili-iissuraure, us understood by the law of Enj;laiid, may Ix' laid to be a coiiiract, wliicli the lirnt iuHurer enters into in order to relieve himself from those risks which he has incautiously undertaken, by throwing ihein ifVPHHOH wmmm 39G KE-INSURANCE. i\\K>n otlnr iiiulcrwritcr.'^, who are called re-assurora. This sjiecieH of oon- tract liart olitaiiit'il a place in tuont of the commercial aystemf of the trailing ))o\vers of ICnroi).-; anil it is alloweci hy them at this day (\- u, 17^7) to he politic ami lesal."' • • • n |3y the ancient laws of France such asmr- ances were reckoned valid and perfectly consistent with equity and good conPcieiM^e. ' Le Guidon' (\. n. 1")")')) observe)?, ' that it' it so iiapp'ii that the insurer-^, after iiniierwriting the policy, repent of their enj;agenieiit, or are alraid to encounter the ri>lc, they are at liberty to reinsure.' " Park. Fn.-. :.!ii7 «/ .If'/. ,• 2 Valiii Cuinm, (35 ; 1 Arnould Ins. 286, liOO; Weskott Iu3. 1j7 . 1 riiilips Ins. 254 ; lUiiiyon lii.s. 127. lOI.S. /^-/'/(^7//•(/,H(V i.s gtuioi'iil tlifoiigliriut tlie continent, of Kiii'oiK.' its wt'lhis in the Uiiik'd States and Cauaua. In Kng- Liiid it ua.s formerly I'ild to be a special contract, limited by dtatnte to ea.^e.s where tlie insurer became in.solvent, bankrupt, or died; in t-iiher o.f wiiieh events the insurer, or hi,s personal re]>resentativi.'S or a.ssign3 respectivuly, may re-iusuix! to the amount of tlie sum before insureil; but it must be specified to be a re-insurance. This restriction wa.s imposed a., v. 174G, repi^aled a. i>. 1864 (19 Ueo. II., c, 37, § 4,) in consequence of the use of re-iiiauiuncc as a method for 8j>e.culating in ilie rise and f.ill of premiums, and for " other purpo.ses pernicious to a commercial nation, and desirtictivc to those very benefits it was orioiiiidly intended to promote and encourage." But at the jire- sent time it is practised extensive!}, among agency comp.tnies ospeciall}', it being a peculiarity in England that no agent can have niuYi: than one company. He is at liberty, however, to tiike any amount upon risks otl'ered, and, whi>n reported to tho home-ortioe, any exi:'ess aliove the line tleemed safe to carry is duly ieiiisurt;d, without any reference to the agent. Einorigon 2.'i, n. 207, 208 ; Marsh. 112; 1 .Maidens Hi), 85, U3 ; 2 i(f. 100, 2.'!3, 271,419; .Viidiew n. Fletcher, 2 Tenu R. lOl ; '.i id. 201; I!' awes Lex Mercitoria 4ti7 : Wesk. 4,'.ii ; Civil Code L (!., § 2477 ; Angell Ins. 20 ; I Purpo.is In.t. 2l»7 ; 1 Arnoiild 28(!, § 118, el .«-■«/. / 2 Heun. F. I. (Jase.^ 581 ; Gantt c. Am. Central Ina. Co , 8 Ins. La«' Jour (:lfl. Ji':-' asurauce has fre(|ueiitly lieen confounded with double insurance. They both havu relation to the perils embrac- ed by a subsisting contract. The i\r<:t,re-i U'-m nince, is a contract made by the insurer to cover his //a6/7/Y//. The .second, doahle inniintnce, iH a contract made by the insured to increase his aeeurlty. In double insurance the underwriters all share in the. KE-INSURANOR. 897 loss pro rata; in re-insurance the re-insurer i)ays all tliat he re-insuroft, whether it be all or a part of the original insurance, without reference to the ainotint retained by the re- insured. "While re-insurance is recogin'zed in Fraiu-e as a valid contract, (louhlc insiuance is prohibited by the Code. (!>JS!>«) In England reinsuranrc is permitted ami donhle i)isurancoh uinvstricted, except that the insuretl is limited to but one satisfaction. In this country both kinds of insurance are recognized, but with restrictive and modifying clauses. (I04H.) 1 Park Ins. I'-'O ; KiiicriKon W, n. 201 ; 2 Valin Conim. (j5, 73 , 2 Miigcns 171, §§ 20, -2 ; I Paitfons 2!»7, ii. 1 ; Augell Iu3. U2 ; 2 Beuii. Uaseg 584 ; Amiesly Ina. 64, uiul aiilhorilies .vipra. 102(1. It is recognized as a valid contract in Canada by 27 & 28 Vic. c. 38, ij 8; iK.niinion (Life Oflices), U Vic. c. 9, § 4; (Oat.), 31 Vic. c. :i-l ^ 4; Civil Code L. C. ij 2i77. lOtil. On the continent of Europe this system is carried to such an extent, that companies are organized for tlie pur- poses of re- ills lira ace only, ^uifuiuig their business almost exclusively to sucli excesses as olfioes doing a general busi- ness may liave to dispense of. ('72«) Hyi*2» Under an org tnlzed system of '' nautual guaranty " the most satisfactory results are ol)tainablo without friction. The assured has uo trouble in placirig his insurance or in collecting liis iufl'mniiy ; he l.ijks only to the individual com]:)any with which, he deals. Thtu'e is no cutting of raten, competition being u i mecessar}'. Over-in.^urance, wliich can so re.adily result under that ominous phrase, " other insurance permitted vnthoid notice" is liv this sysiem uuist eifectuaily checked and prevented — all tlispufes in the adjustment of losses are precluded, and through the mutuality of interest thus engendi'riid, not only is the solven'.\y of each guaranteed l>y the others, but the business is made I'eiuunerative to all. I03:S< On the other hanil, in i nt ti vid uid o\)iirntiims, when a company takes lines too heavy to be safely carried by itself and re-insures in other offices — or where a company retiring from business re-insures it outstanding risks, without the pre- caution of tiiking up its own policies and substituting therefor 808 RE-INSUUANCE. those of the rn-iiisuring company (in which case it wonld be aellitiij, not rc-in.'iiirlng) — such coiniianies He may not only reinsure the amount he has already insured, but the premium also, wdiich he may pay the re-ijisurer. And when the pcilicy nial:e3 no provision to the contrary, he may eifect such re4nsurance without any dis- closure, in the policy (u- otherwise, that it is a reln8urai>.ce. 2 Valin Gomm tJ5, 07 : Emorigon Ins. 201 , i Philips las. 2j5 ' B Ins. Law Jour. 23j, '173, 4i3o; 2 Benu. F. 1. Cased 582. RE-INSUBANCE. 399 THK CONTRACT. ]03(i. Rclnxii ranee, is a inoditication of the insurance contract. While tlui Huhjoct- matter c»t' in.surance is the same in the policy of re-insurance, the interest of the re-insnred and the liability of the re-insurers are quite dillerent. It is a con- tract against liability — not merely an indemnity. Codpof Ciil. § 2048 j Aiigpll Ins. l.iS, N ; 1 Rciin. F, I. Casps (ir)8 ; 17 Wend.N.Y. 357 ; Provincial Ins. Co. v. vKtoa fns. Co., G C, c. Q. B. 13."(. l1>.) 103M. If the contract were one of hideriinUy solely, it might be contiuuled that tlie repayment of the amount paid by the re-assured U]ion the original [jolicy would be the measure of liability, in which case proof of such payment only would be necessary; no proof of hjss would be ie([iiired. (See authorities cited supra.) lH**iK If the liability of the re-insurer depends entirely upon the solvency or bankruptcy of the re-insured, in many ca.ses he will not be(H)me chiirgeable at all, or but to a nominal amount only, according to the extent of su h in.solvency or bankruptcy, and the paramount intention of the re insurance contract — which is full indemnity against liability — would be subverted. ,•5 I us. Law .Jour. 769; 1 Sandf. .V.Y. 137, s. C. 2 Comst. 23.5; 2 Benn F.I. Ca.se3yS8. THE UF-lNStTKEI). i030. The (daini of the re-iasured rests upon the liahility to pay the loss to the original insured, and not upou the greater or less ability to pay it iu fnll. (71H,) EmtTigon 201 ; Marsh. Ins. 692; Shaw's Ellis Ins. 61; Angell Ins. 100; 2 Ucnn. F. I. (.'ases 568; Gault v. Am. Ctnt. Ins. Co., 8 lus. Law Joui. 664; \i) Cush. Mu39. 4.i3. 401) RE-IXSUUANCE. IO:tl. The ri'-'insure ; May Ins. 10 ; 1 Arnoiild Fiis. 2S8 : 1 Parsons Ins. 300; 3 Ins. Law .lour. 7o7 : !) Pliila. 292 ; 2 fcfi-nn. F. 1, Ca.ses 589; 4 ul. 230; Flanders lus. 32 ; Gantt «. Am. Cent. Ins. Co., S Ins. [.aw Jour. 004, tni. 10:{2. K.MERIGON goes further and says : — "Tlie ri'iiiniirer is held (o pay tlie wliole ainoiiiil for wliich he re-insures tvithoiii rciianl to tlie circiuii.-'laiice tiiuttlie r^'-a^'Slu•eti may have priKV/ral an tili^ifrmuit J'rviii thi: Jir.-it assariul, <>v may iie luialjlej in ooiisei|Ut'fice of biiiiivruptcy, to pay tlie latter in full." Kmcrigon Ins. 201 ; Valiu Coram. 70; Park Ins. 277; .Vlursh. Ins. 113. And such is tin' recognized doctrine under re insurance to this day. Indeed, it was under the operation of this ])rinciple that so many frauds were committed in England, when 'U.mjcrinj was rife (i>0), and caused the enactment of the restrictive statute in tliat country. (lOIN.) THE OlilGlNAL INSURED. 10:{!{. The original insured has no interest in the policy of re-iasarance, even though the re-insured com]»any should become bankrupt during the currency uf the original policy. Hcrckenrath r. .Mut. .Safely Co., 3 Barb. Cby. N. Y. 03 ; Hastie r. De Peyster, 3 Gaines N.Y. l;'0 : Carringtou i-. Cotuiu'l. Fire Ins. Co., 11 Barb. N. V. l;:)2 : May Ins. 1 1 ; AngeU 141 ; Eincrlgon Ins, 301 ; 2 Valia Art. 20 ; 2 Magias Ins. 233 ; 2 Benn. F.I. Cases 589, Co4. J O.'Sl. Chief-Justice Pakk , says :— "It was a distingnit^hiiin characteristic of flii.s species of contract, that, notvvithHtanihng a re-insiininci', the (irst contract subsists aa at lir^t, with- out clian're or amendment." (Park Ins. 272.) RE- INSURANCE. 401 Chancellor Kk.xt says; — " It is a piivfectly distinct contract," which is the purport of tlie decisions of all our courts. 1 Parsons [ti>. 301; ;-! Ins. Law Jour. 757; 3 Barb. Ch. ''3, supra. IO:{5. PoTHlKR says: — " Tlie risk.^ of the insurer form tlie puhjcct of tlip r -nsiirunoc, wliicli is a new (iiid '• ' pendent contract, not at all concernins^ tlic insured; wlio, L'onsei]iu , can exercise no power or autlionty witii re^^iird to it." 10:{6. "The iiisvirer cannot turn the original iusured over to the re-in.-^urer without his consent." 1 Philips Ins. 55; ifell's Liiw DIcty., Title •' Insurance," 403. lOli7. Kmkkigon says: — "The re-iiisnrer is wholly unconnected witli the origiihil ovner of the pi't'peity insured; imd, a-^ there was no oh' jjaiioii ln'tween them orij:inally, i-n none is rais^'d by the suhsequeiit act of the lir.st underwriter." (Emeriyun, 9,201.) 103N. TliH re-insurer having no connection with the origi- nal insured, is bound by the adjustment of lo.ss a.s made by the re-insured, unh'.ss fniuil vv error can be shown. " He, nevertheless, has an interest in any fiaUuign, and has a riirht to - The iliiuse as to double, or other insurance, is inoperative m a policy of rc-imurance, unless the re insund Las made other re~insiirances. RE-IXSURANCK. 403 1 A clause in a policy providing " in case tlierc is oiher in- surance, prior or siiliseiiiienl, on llic property insureil, the ro- iusiinMl sliali be entitled to reeover, in event of loss, only a propiirtionato part thereof," is hekl to refer entirely t-o double re- insurance on the same interests, nnd if there be no other re-insurances the ve-insurcv is liable for the amount of loss within the policy. (1MM>.) Johnson v. N. B. & Merc. Ins. (Jo., 1 Hnlmeg 0. C T. S. 117; Afnt. Safety Ins. Co. 0. Hone, 2 Comst. N. Y. 2:i5; 2 Henn. F. I. Cases 590, 592. CONTRIBUTION. 1014. When the policy of the original insured contains provisions for contrihution between the several insurei-s, and there .should be more than one polioy on the subject of insur- ance, the re-insured will recover from the re-insurer any loss he has to pay, or may become liable to pay, within the amount of his policy, notwithstanding. Howe '•. Bokee, Receiver Mut. Safety Ins. Co., 1 Sandf. N. V. 137, s. c, 2 Comstock 235 , 2 Benn. F. I. Cases 5('J. PROOFS OF LOSS. 1045. In the contract of re-int^v r"• Unb, .\. V. ;!lt! ; Consolidated F. I. Co. v. Cashow, 41 Md. Till, bee (U:jr.7-H-1); '"/'<,. MMITATION. 10I4>. Wlicre loss occurred in NovcMiibor, A, n. 1854, iiml was piUil liy lliL' origiiiiil iiisuriM'.s Augu.st 9, 18o5, win) then brought .suit Uiiiiin.st the i-e-iu.suivrs Aiiou-^t 8. ISol) — H(;i.i> "Thai the Iosh or daniii>,'e referred lo in the rr- hisu ranee pohcy wax the injury to the property, and not liit payment of the hw.-< by the ori- iiinal iuHurerH, ami the action wan ti • late"' ri'i.vineiai Ins, Co. r. AlUiix In.s. Co., U i;. C. Q. B. l:!o.) M.V(.;I->1'K.\TK'.S CKUTIKICATK. IOI7. Thi( .same .judge (Buonson, 104*1.) fuitluiv hf.ld : •' The same remark i" applio.ahle to \\\q rcrtitinttf of a notary. * * * A (w///f(.7j/(; concerning tlif ciiaracter and circuni-lunee.*' of the re-ii!sured, and that there had heen no frau.l or e\ d firaclice on their part, would iiave been an idle and unmeaning o<'reniony. To hold that thi.'^ wa.s what the parties intended, would be following the letter whilf we lo.'=l fight of the sfMrilol'the cunipact." (HH-t.) (IT Wend. \. Y . ;;.VJ.) I'KO H.vr\ .vN'i" unn:i{ sriPUbATHiNb. lOl.S. UjHiu llie Emnjiuan coutiueiiL, wiierc llie coutmot of re- insurance Ims beeu in constaiit use, and its piiuciiiles firmly establislie. " Los.^, if iiiiy, payahle to the asMured upon tiie same ternif: and condilidiis, and at the same time, as contained in the original policy." 10<">(>. " Re-iiHurance for any otli(;r in-tiiranco company to be on 'he hasi< of joint liability with naid company, and in no event will thifl c ,iu- pany be liable for a sum greater than hucIi portion as u.? ;;iiin hereby r;^-in*ured bears to the vvliole wnni insured on the iiropert\- by the company re-insnred ; and in case of loss, thin cumpiny to pay their pro rata propor- tion at the same time, manner, and form as llie company re-insured." This clause is to be found in the policy of the /Etna, of Hartford, a. d. 1858, and is the lirst printed .stipulation ap- pearing in the policy. It would seem, however, that it had been claimed to be customary as early as A. D. 1847, in the case cited above, to apply (die pro rata clause to the adjust- ment of losses under re-insurance. Such usage can be readily accounted for bv the fact that re insin'auce was Jirsf used in marine underwriting, where the conditions of average are always operative, and losses would naturally bo adjusted in the same maimer as under the original insurance ; and the transition to the fire branch was a very natural one. This ^tnu clause was adopted by some few of the Xew York city companies, in A. D. 1864:-'5. 406 RE-INSURANCE. 105I. fn A. P. 1860, wc find tlif following in the policy if " The In 1^1 1 ranee Coiupdin/ of Xorth Anieriai" : — *' Ilo-inMiirumo lor any otlier iiisuriinco ciaiiimiiy to l>e on the hnHtu nf joint liiiliiliiv wiih ■'ui't conipiiiiy, ami in tlu^ ommiI oC 1o«s, thin oonipimy to pay itH proiwrtiiiM of miiil lo(t» Hiistaincd by f*n\d conipmiy under their policy." lOotS. " Mnlijeft to flie nani'- rinks, vnlii(ifi iiccupt {headJKst- vii'iit, as made by tlio re-iusured, (lOJIII.) The second parajTraph refers to the /niijinunt of any loss, and i/i a njateria' modification of the contract. I:t. In considering the effect of these several "modi- fying clauses " upon liie reinsiu'ance contract, but ^wo points wouUl seem to re([uire further comment,: — l8t. " Ptiyahle ut the .lanation of this first stipulation, and those of similar meaning, it would seem to be enough to refer to the fact already stated (lOIt!*), " tlmf the fenns and cunditinns of pffifuient hy the re-hisu irr>^ arc ijoverned h>j the conditions of ttif ori'jinal puliey,'" where the time, form, and manner in which the ro-insured was bound to pay the loss will be found fully set forth; and there is nothing in this clause to alter them. The fact tliar, liie ri'-insured 'annot live up to his con- tract as to teniis and tinic is no .dief to the rc-in.mrer ; if solvent, he must pay as therein agreed. 3 Ina. Law .Jour. 390, -JiJ, 7i!.l ; Phil. Siife Dep (^o. v. Fame In3. Co., 9 I'hila. 292. 2d. " Vayiildi' pro rdta," ot " mich jmrtion as the xnm hereliij insured bears In the ii'lu.l ' sum insure'/ upon l/ie jniijier/^." I4>5»>. Under the sevond stipulation, there can be no question as to the amount to be paid by the re-iusurcrs ; the meaning of the term pro rata becomes at once apparent from the context. But the effect of this pro rata stipulation, ivhcit ^1 4 3 RE-INSURANCE. 407 operative, ia slniply to tranffoiin the contract of re-inav ravce into one of co-hiHiii'anc^, tidiiuu'n thr n'-inf^incr and tin' re- insured, and ciicli ])arty Ix-coiiu^.s individually liiibln for his pro rata slnu'i,> nf tin; loss, williout rcfevLMico to thu othoi, t-xoopt that the re-insuivr will pay lii.s proportion te fully itidmuni- fied ; liul wluM'u a ])ortion only is ri'-iusuri'd, the idause trans- forms the contract into doulde insuranee, and eaeh com[)any is lialtje. />/■() rata, as llie amount re-insured by each hear;} to tlu' oriviiiial insurance, as if they had resi»ectively insured those amounts. The following examples will illustrate : — Int. ()n;.'iti!il in-iiiniiico |.'>,0()0 llo-iri-iiranuc 5,000 Ia):?i* intfil. cir ill I'xccsH (if .5,000 Tlie rc-iiisiuvr |i:iyH tlio whole, h-j the pro rata clause becoiiK.'H inoperative, bin iiisurnni'e lioini^ for tin- full Hiiionnt. 2d. Oritrinal insiirance |5,000 Ii('-insiiriin<;c' 2,'>00 Lo.su partial 2,500 In (his cvonl, each company will he I'ahle for it« pro rata share of the los.s, a.s the ri'-inmranue hours to the original insurance, or one-half; each company will h( liahle to pay $1,2.">0; withmu the jtro rata clau.-'O, the re-insnrer,s won M pay the entire $2,. ")00, (lO-l'S.) CONCE.VLMKNT OR MISUKPUESENT.VTIO.V. 10'Ki. Tlie duty of a full and complete disclosure of all material circumstances by the re-iiisured is no less binding m ctises of reinsurance than in those of the original insured; and sometimes the rule is even more strict in the former than in the latter, as the party ajiplyiiig for re-insurance is ol>U(i(id to ooininunicate all ni'iteelal fait>) in relation to the chiiraete,)' of the original iii.surod — a duty which is not incum- bent upon the latter in making his own application. The re-innured, however, is not bound to declare his own opinion of the risk. (OOS.) 2 Mrt!rin=i K^iays 2:vi ; I Parsons Ins. 203; Gantt i'. Am. Cent. Ins. Co., 8 luf. Law Jour 664. I mmmmm 408 RE-JNSUItAN(!F, IO»T»Oji. Ill cases of lU'-insuranri; the ri i iiniiri'(f is bontid to coiiiinmii'iitc, not only all tlui reineHi't)tiit'u)v« mi;if. Y. aM. lOiliUb. Facts (niiiiiig to the knowledge of hti insurer that tliu insured bon; a bad rharactor ; that his iin-niises had been Hi'voral times destroyed by Kre, when fidly iiisiiit'd ; tlm insurer then re-insured, without coiniuiinicating these faets to the re-insui'ors. The su])] ires -.ion defeated the policy of }v> hmtriinci'. (»'5T.S.) 2 Am. Lcftd. (.'hsi's -ISS ; 1 Bonn. F. I. Cnsoa 654 nmT' When a company ajiplied for ami obtained ve- inffuvaiici' en sugar and molasses contained in a iilantation sugar-house, saying : " We have buildings ;" an I al'lei a In^s it was as.H. Where an agent of one company was, unknown to that company, also the secretary of another company, and re-insured the couipaiiy of which Ik; was the secretary in the company of which he was the agent, wiihoiit the know- ledge or consent of such company, it was helil that such poliev was invalid. On the other hand, uiuler a similar sUite of facts it has been held (lUARANTV I'Ol.ICV, 409 nticft liu'. Co. K. Toll-do Inn. Co, 17 Hnrl., N. Y. 132 ; \. T. CuLliis On, «. Nal. I'roteclictn liii. Co., Kern. N. V HP | Merc. Mat. Inn. Co. c. Hop'? Inn. Co., 0. A|). St. Loiiii, Mo, AlRfch, l«8o j m, Nicliolm K. I. Uo. v. .MercliftiiH ina. Co., N. Y-, U. A., 1880. lO'^tlK 'Hk! following is the for/h nf a ro in.surajioc policy in U80 in London, whens it i.s desigimti'd ii.s "/V/v (iuunuiti/y" oT*'Vounter'aiiiurancc": — (JUARAXTY i'OMCr. No £ Mknioiiavdim — Tliiit tlio Glohf. X^rtMrnniic^iVMOly licrcliy ,'/'<'"v»/(/<'c,«, out of the fuiiils ofllioMtiiil Socii'ly, to tin- nirciitorH nl i\\<- H'mlil \..< IB...., to tlio liny of , 18...., hutli iiicUiHive, and "o ioiiji; lIuTe- after as ftliall lie expI•eH^'ed in tl>c u^^niil lUounval Kccii'ipt of tlio Society, and is enlijt'ct to the Fruvii^ione of the Di'i'd of SfttlenuMit and Coiulitiiins off^re A'^iurance of the ^..,. i'!('?'ent payment, £ Cc^nsideratioii Future uiiniial payment, £. Signed in presence of Directors. It will be noted here that the re-iiisiirance is niadt- .sub- ject to the terms of the re-insuring policy, instead of the re- insured, as is the praetice iii most other countries, and as woukl be the case if the policy M'ero silent upon the subject. ASSIGNMENT. lOOO. Ci'ii'litinn of the policy . — " If tlii:* policy bo nssignoil before a loss, without the ooiiseiit of the company indorsed hereon « • ♦ tlieij this policy sliiili be void." lOOl. All assiijiirni'Tit is a transfoT by writiiij,', us dis- tiiiguislu'd fi'dtn out; by delivery. IVieir ran I"' no (issignment without a i-haniji' of Interest ; hence, one oannot assign an itistniinent to himself; nor can two men, equally iuterested, assign to thouiselves. Bniiyon Ins. 10, 11, 12, It:^; 1 Philips Ins. 08; 1 lienn. F. I. Caaes'lll, 600; j\:ig('ll his. 9; 5 Ins. Law Jour 200, ;.(>.'!. KMSS. A valid assignment of the inr^nratice contract, will, consent of the iinderwritor.s, in the broadest Ie.,L,'al sense by statute or otherwise, V(:sts in the assignee all riglits of the assignor, l('<;al and et|uitable, including that of action. The stipulations of most, if not all tire policies, require that all assignments of the contract, or of tlu; subjects at risk thereunder, to bt^ valid, must li" assented to by the underwriter, in writing thereupon. Tins ctuiditiou has formed a part of the fire policy from the earliest days ; and has, in numerous decisions of the courts, betm held to be a " perfectly legal .stipulation," and one to be strictly construed. In Kngland the periods within which notice of assigiunent must he given vary with ditlerent othccs, as ticrafg-one days, forty-two days, three moydhs', " as soon as possilde." Such assigiunent of the contract, however, vents the assignee with such rights unly as the assi.'Tior enjoyed under the instrument at the time of the assignment, which he takes subject to all of its ttrms and conditions. Ellis I. .-^tftte Ins. Co, S. T. Iowa ; 3 Valifi Conini. 45; Wi(;?i,i v. Suffolk Ins. Co, 18 I'iek. Mass. li.") : Waters i. Allen, 5 IliU N. Y. 421; Laziirus «. Cotninonwcalth Ins. (Jo., .1 I'iek. .Mtm. 7il ; l!» if. 81 ; Brichti v. N. Y. L» Fiiyptte Ins. Co., 2 Hiill V. V. :i72 ; Clark v. Mi nufrs.' Ins. Co., 8 How. 235 ; .•smith « Ina. Uo., 1 lliU N. V. 4J7 ; a. o. 3i'/. 50l'. ^i^imimmm ASSIGNMENT. 411 1003. The fire insurance contract being a porsonal one, not ncjfolialilo in its character, and the undi-rwritor having the right of perst)nal .selection, may he willing t(.» insure one person and not another, as the transfer might materially ailect the risk, or might virtually create u new risk wliich the underwriter might not be willing to assunu;. ller\ce, the consent of the insurer would seem to be absolutely essi'nUal, an'J,3 ; Courtney r. N Y. City Ins. Co., 28 Bart) X. .Y. lOG : Bayles .•. Ins. Co., 3. Diitcti. N. J. 1(53; Lycoming Ins. Co. r .Mitchell, 48 Ph. St. .'leB ; Le Cluire ,-. Cra.'^iier, M. C. 11. 22, C> L. C. R. 487; Crosse v. Br. America Ina. Co., 2 II. L, 7.35. JO<(-l. When underwriters consent to on aSi^'KjniHcnt . tliey may reserve ; ill of their rights. Tito form usually adopted for this purpose, and printed upon the policy, is as follows : " Till' Coiiiiiany hereby consent that the interest of in the within [lolicy, snhjecl to nil tin- terms ari'i conditions thcroiii men- tionei) iin.l referred to, he a.ssjgned to " 2 Duer Ins. 07 ; 3 .Metcf. -Mass. 6(! ; 2 Benu. V. 1. Cases 107 ; 3 Ins. Law Jour 408. KHtfT. Tt is not necessary that reprcsentiort of the nature of the interest of the assignee in the piw . rt} o made uyion ap|)li- cation for a.«sent to an asi^iguitii:,!. Iav. ruio requirino au applicant for insurance to ,s.t !> ■ •■' die nature of his inti^rest does not apply in this case. Cinnb. Valley las. Co, o. Mitchell, 48 Pa. St.. 3,'4 ; nl .368. OTIIKR INSURAX:K ASSKiXMrNT, ]00». If tlu' underwriter consent to an asaif/nnienf of the clause rei[Tii ring notice of '' other in sura nr,e" tlioivafter made becomes a condition between the company and the oyt:i, j .-^7, ami aiUliorilies tliure cited ; 1 Itunti. F. 1. Cases 568; 4 i./. 2^^; 2 id. 104, 127, 297 ; 1 Ifili .V. Y 4^7; 3 i i., oOG ; Hill k Denio N Y. 133; 69 Me. 469. ASSKiNMEXT OF THE CONTRACT. lows. "The assignment uf a policy oi insurance may be viewed in two dilfcrenr aspects: In one of them it passes the insurance, considered as such; in the other it is a mere equita'nle transfer of tlie right to receive any sum that may be due in tlie event of a loss." It is helndent chose in action, it does not pass with a sah' or transfer of the i)roperty, unless by au assignment or delivery, and that an assignment of the policy, made after the transfer of the subject, is wholly void. ASSIGNMENT. 413 Shaw's Kills Ins. 145; 16 Wend, N. Y. •'iSS ; 2 Bcnn. F. I. C-scs 120, 154; 1 Hill N Y. 407 ; S. C. 3 I.J. 5u8 ; 3 Brown'a Par. Cases, 407 ; 16 Peters U. S. 502. ]0<>f». When the coii not asrignable ; ami it is a transfer or termination of the interext of the apsurei! in the [wlicy and not in the prernif-es insured, which, wiien riKiJe without consent, is to avoid the policy under this condilioii." IG Peters D. S. 405 ; 29 How. 0. S. 71 ; 2 Aikyns 564 : Brown's Par, Cases 407; 1 Ptiiiips lua. 477, § 879, and aiithoritios cited; 2 Benn. F. I. Cases 05 ;-6 Angell Ins. 2J9, 207 ; Park Ins. 452 ; 60 Me. 409 ; 10 Pick Mass. 81 ; „ c. '> id. 7i-. ; Hill i Deuio N. Y. 133. 1070. Wlien loss is merely made ])ayable to a tliird party, he IS entitled to recover onhj the interest of the insured tlierein, whatever that may prove t(j be at the time of the loss. (107I.) Held, and aflirnied upon appeal : That the simple indorsement of " For value rec'ire'l /"t// the within, in na.ic or/r-.s,-- to A. H , even when assented to bv the in^itn'T, is not an (i.'^.siiinmcnt i)f the runtrart to the said A. 15., but only of the right, to tlie iiiotiey that, ni.iy be due to the as.signor in case of losB. 107!. Ill tiie oiise of a sale and transfer of sugars, under insurance, the poii.^y was a.ssigned therewith, indorsed as follows " Payable i'-i .:<■ of loss to Edward C. Bates" The policy thus indorsed '-.ay. s- a to the company witli a reiTjiiest " that the indorseni ..' he approved," but nothing was said of the sale and luULsier o! i!. i cars. The policy was returned duly indorsed "Con,sent is lieve .y gi :a to the above indorsement. " A loss occurred iu whicl' the siigi;rs were destroyed, the company de- clined to pay tlie insurance on the ground that the insured was not the OLvner of the property at the Lime of the lo.ss, ami that the ovmera of the sugars were not the party i?i,s«rc'(Z under the policy. At the trial, a verdict was given against the company. UjKm a)tpeal, this verdict was set aside, and a decision given iu favor of 'ho con.pany ; the judge, in the course of his remarks, saying;-- -jni5"™ 414 ASSIGNMENT. "Viewed in any liglit, the plaiiilifl cannot recover. Purchase of the prop- erty insured was nmtie hy tho plaintiff, Imt he did not secure the consent of the lonipuny to tlie sale, and tiiey had no notice of tiie transfer prior to the loss. Tiiey c(insented, in case the property of the aisureil should he de- stroyed, that they would pay tlie anioutit to the plaintiff; hut tliey never consented that the policy should continue for the benefit of any one except the assured." BiitM r. N. V. Equitable lu3. Co., 10 Wall, U. S. 33 ; 10 Gush. Mass. :U6 ; 6 (Jray Ma.ss. 172; 8 id. 29; 109 Mrtss. 573 ; 3 Dallas Pa. 510, 511 ; 17 N. Y. 391 ; ll 401 ; .SI Pa. St. 438 ; ,'>3 111. 151 ; 6 R. I. .117 ; 2 Ins. Law Jour. 769 ; 5 id. 146 ; G id 434 ; 8 id- 577 ; 9 td., 91, 1(55 ; 29 How. U. S. 71 ; 1 Bean. F. I. Cases 2.-)4 ; 4 id. 299 ; 81 Me. G33 ; 9 Vroom. N. J. 140 ; Gills & Johns. Md. 337 ; 8 Granta Ch. 52.i. 1073> The depofi'd of a policij of ins^'r'ance with a creditor of the insured, a.s security for a debt, giv oucli crt-litor a lien upon the jiroceeds of the policy, and his i.. .. not affected by the prohibitory clause agiun.st assignment w, ;- .it consent. Bibcml c. Liv. & Lond. & Globe Ins. Co., 30 Cal. 78; Wells v. Archer, 10 Serg. Ai K. Pa. 412; Ins. i Trust Co. ,•. Neve, 2 Mo.MuIl, So. C. 237; EllLs v. Kreutginger, 27 Mo. 311. Per Contra (1075.) lOT'-Jjl* " A policy of in.surance, void ft6 initio, is not inado valid by assignment willi the a.ssent of the underwriter; the asseivt of the iii.surer to a transfer of a policy does not give force to a policy already utterly void, but simply atithorizes a transfer of the jiolicy for what it is worth. The assent of the underwriter to an assignment does not operate a.s a new con- tract, and does not enlarge the engagement of the insured, or enable thcin to w;iive any of the conditions of the original contract." City Tiro Ins. Co. v. Ooll, 35 Md. 89; 4 Benn F. I. Cases 822; Eastman v. Car- roll (.'0. Mut. F. I Co., 45 .Me 307 ; .Merrill c. Farm & Mechs Mut. F. I. Co., 4S id.28o : liobiTt,* <■ Trader.s Ins Co., 17 Wend. N. Y (;31 ; Conover )', Albany Mut. Ins. Co., 3 Deuio N. V. 2.H ; .s. o. 1 Comst. 290; Tillou o. Kingston Mut. lus. Co., 1 Siilden N. Y. 405. 107Ji. In the matter of ]>artuerships, where changes are made in the hrm, the adjudications Iiave not been harmonious. The general principle in sucli cases is well expressed by Judge Millar, U. S. C. ('. Dist. Minn., in the case of Drennan v. Lond. Assur, Assoc. (13 Ins. Law Jour. 706). He says: "The sale or transmutation of the various interests between partners them- selves, nobody else having the contixtl, and leaving the posses- ASSIGNMENT. ' • sion wheio it was, does not invalidate tlie policy ; but the introduction of a nevv jiartner, with an investiture of an interest in him wliich he did not have before, does avd-'d the policy." For particulars of partnership interest see (i;f79j. 1074. By Sec. 27'i6, Revised Code of Georgia, " A policy issued to several may be transferred to one of the assured without the consent of the insurer." So in New York : a ». Where the condition of the policy stipulated that " the policy shall not be assignable without the consent of the company expressed thereon. In case uf assignment without such consent, wheth(>r of the whole policy or uf any interest i)i it, the liability of the company, by virtue of such policy, shall thenceforth cease," and tlu; jiolicy was iissigned as cuUateral security for money luaned, without consent of the C()m])any being tirst obtained ; and before the loss the subsequent annual premium was paid while the policy was thus held as collateral. Held : That the condition was perfectly legal, and the insured could not recover. , Farrel v. Oxford Fire & Life Ins. Co., S, C. Pa., Feb., 1871, and authori- ties cited. 107<>. If the insured he pe-rm>ttef1 to retain possemon of thejiulic>/ (iffer assignmod, and afterwards assign.s and delivers it to a third party, wliethor absoluttdy or as security for a debt, the eijuity of the jierson to whom it is thus delivered, when act- ing in good faith, and without notice of prior assignment, is superior to that of the original assignee, and entitles him to retain to his own use all moneys that the insurers may have been compelltjd or have consented to pay. Wi'lla I .\rchpr, Id Serg. & R. Pa. .)12 ; 1 Pliilips Ing. 74. ?§I1?, 100 ; Brinsley V. Cilj' Fire lus. Co., 2G Coaa. ItJ5 ; 2 Duer. Ins. lil. ■■»«>f"»«T^ IP 416 ASSIGNMENT. ASSIGNMENT OF THE LOSS CLAIM. 1077. No (t'^signriient of a pollc}) should he assented to after a lo occurs, CMrries, not the poliiiy, liut tlie claim or debt agaiMt the iasinwr fur (he loss, ami is therefore not a bicacli of the re- strietivf i:liiuse aj^niiist ast^i^nmenl witiiont consent. Tiie condition iia« no ap]»lii:ulioii after the ri-^k lni.'< ceased. Goit ('. Nutional Protect. Ins. Co., 2a liarb. N. Y. IS!) ; Courtney v. N. Y. City Ins. Co., 23 id. 116, 4 Henn. F. I. Cases 8 ; Brichui v. N. Y Lafayette F. I. Co., 2 Hall \. Y. iU ; Carroll c. Chart. Oak Ins. Co., .^8 Rirb. 402 : 8. c. 40 id. 'J.in ; 1 Abb. Dec. :^16 , Mauley /.'. 'n.q. (^o. N. Am., 1 Lans. N. Y. 20: Carter!'. Humboliit lats. Ins. Co., 12 lo..^ 7; West Hranch Ins. Co. v, Helpenstein, 40 Pa. St. 289; Walters v, Wnsi' ngton Ins. Co., 1 Cole, Iowa., 404; 4 Menn. F- I Cases 181, 184, 260, 505; Ungues c. Mut. F. I. Co., New C'Mstle, !> I'. C. 0. I{. 3S7 ; Spare v. i.ohif Mut. hie. C'). C«L, U. S. C. G. Lij^l. Ori'g'in, Aug.. '8.':, 6 ItiS- Law Jour. 1><.. ASSIGNMENT IX BANKUUPrCY. I07S>. A general assignment by the insured, of all his per- sonal estate, for the benetit of all creditors, vAthoid the consent o/^/ie i/wujvr, ijoes n )t void Ids policy, as ho still holds an insurable interest in the estate, unless it is made a condition precedent of sui^h nssi'javi':nt that till debts sliall b:; rele;ised ; and even then an insurable interest will remain, if there bo or prci ttbly may be a surplus after paying the debts. 4 Benn. F. I. Ca.ses -107 ; 8 Ins. Law Juu •. 2(57 ; Shiw'.s Ellis las. 72 n. lO.SO. It is a general principle of law, that when jiroperty insured against tire is taken into custody of the law for the benefit of creditors, tht; insurance will remain valid without (;on. sent of insurers until the pro[)erty is sold by the assignee, 2 Abbott r. S. 07 ; 5 Foster N. If 289 ; 3 Henn. F. I. Cases 401). 10^il> An assigvec in tnt.nl-ntj>tcy finviluntary) ha^, by law, the power to control the property committed to his charge, paramount to all others. l'>iit the law does not give to, or invest iu him, the absolute ownership, in his owu right, of the pro- ASSKiNMKNT. m t [)erty. In citlicr words ; tin; assijjuee is a nifire n<:^(nit of the detUor, to uso !iis property in the payment ot his dobt.s. It fol- h>w.s tlicn, tliat tho bankrupt remains as much intert'Sted in tlie insnred pro]:)erty after, as befoi'f; hai>.kriipic}i ; and the nmgnee does not aci^niio such interest in tlie pnhoy, nor in the property nndov his ]iti)t('ction, as in work a fDrfeitiin,' under llie condi- tion of tlio ])ohcy. 4 Ins. \m\v Join. G47 ; a (.7. 182 ; U. 50 j Mt. Vernon Mfg. Co. r. Hiimmit Co. Mil'. Ins. Co., 10 Ohio St 347. IO.*ilit. " < 'ovcnants iKjt to assign or transfer arc broken only )iy rohtiihiry iransfor or assiginnont. Hence, inf/, beinif a roln tilar/^ proceeding on tli(; ]iarl i.'f th.' debtor hunself, is a breacli oi tlie coveniiul not to assign, and works a forfeiture of the contract ; wliih; in hdnkrup^cy — ijeing an invoinntary proceeding — \\liatever passes, passes liy force of the st-atute and for the puijiose of elfecting the objects of the .statute, and works no fm'feitnre. Adams r. las ('o., .';» .Mp. 20i, 3 [',.,'iin. F I. ''h3C3 -'iO ; Porry v. liis. Co., iV. Y. C. .\., 4 Ins. Law Jour. t>7:<, 40.'!. lO.sa. In the V. S, D-ist. ('ourt for N. JJist. Oluo (Stark- weather '•. Oievelaud Ins. Co., 2 Abb. U. S., (SI (1870), in a case of loss under a policy Indd by the assignee of an hnvoluntary bankrupt, witlioiit consent of thi; company, Uie presiding judge lield the following language : — "On tlio^e aiitli>)rities, it -efoi-! clear to iiil' tlial tlie olause.s in this jiol- icv t'orbiiMmjr its iis.^ijrnmcnt, iiniJ liic ciiange iio'l transliT of tlio title to the ].iroiKiiy, have no nmre elfpct than similar worJc in le.'i.'^e.s. Both are con- traet-i lictwceii two per.-diis, with tlii.s ihttereuoe, that leases are iimler seal, and tiierefore ot a higher nature. Tlic I'ci.si'n c.Hcil estahliiili l/ie doctrine tluit biiiiki iiptiy nnd /itdijmentH ari' ini-olunta>\i/^ and do no f avoid cooenanti (U/ainst assi;/iHHe(iU and transfers, cither in hidsc.^ or in pdiries of inatir- unrf.'' " [n this ease the Irtiikrnjit' y of Wells, the uvvner of the policy ami the property, was inriAinitttrij. I'.y ojierrition iif the law, the policy and prop- erly \sore taken oiil ot his cust(^ly aiid control, anil placeJ in liie hami.'i of the assignee, as the agent of tho law. to .sell the >aiiie and pay his debts, 'I'lie entire interest in the priif)erty is sold, under the law, by the as.signee 'J'lie loss pro\iiied for in thi,« policy accrned while the properly was in ihi.? <"oiuiition. It was still in law Weils' pro|)eny, hut by operation of law in Uie liand.s of the assignee, for the Hole purpose of selling and of applying the [)roeee(ls tbrVVelln* henelit." BB MHF 418 AMKNATION. IOS;{. I 111 (lir ntlier liaml, wIktc tht- cojulliidii of tin- policy provulcil '• iii;ii if till.' iirojHTiy .•^liall bi-. sold or trfiusferred. or any oliaii;i(i laKr |iliiot,' in tim title or j^o.ssi'ssioii, wlii'thor by le, if tJio company, ♦ *■ * ti,,, |„,|i^.y shall I'f \i>iil." Ii was hcl.l liy K\iM()\s, .1., V. S. . <*., 1>171, in tlio case of Slarkwt'aihcr /;. • !Ii'Vi!laiul Liis. Co. above, "that tlic adimlioation and assi^ninnMit; in bankiaijitfy chanj^'ed tlio tido to t-ho properly insiavd williin tli'- ini,'aniii;j; of t lie terms of the poliey, and wa.s. for that reason, a breai'h of the eontract, and the jiolicy therefore void." This re\er.ses tin.' dei'ision til' the I'. S. I). C,, above (lO.Sti), and is in har- mony with (IO^»»»j|.). Ailiiiiis • lioi'luiipliam Miit. liH. (Jo , SO .Mc 292 ; Poiry u. Lorilbird Ins. Uo., G Laiis N V. li'il. •» Ins. Law Jour. G'i'.i. IOointment has not been officially comimmicated to the iiisuranoo company before the tire; and under the circumstance.'? of tlui; case, there was not any change either of ownership or possession.'" (Q. B. EUiott y. National Ins. Co., J3 L. C. .1. 12.) Moijucpn (', Pliuni.v Mut. Ins. Co., 4 S. (! (I. tjtii! ; ,McNicliol-i «•. Cmin'ta (Jiiaiauiee Co., Quebec. Sup. Court, 1H^0 ; Rous c. Atig'is, S. C. MoniriMl. ALIKNATION. lOS'T. <'m4ilinii i.f' lfi<- /i/'/zfi/.--" Or, it the properly he .sold or triiim- (erreil, or iinv change t.ikc place in title or po-ses-ioii, whether by legal pioces.s i)r Jiiilieiul lii^cree, or \oluntar; transfer ur eonveyanoe." ''*^2 \ai. Law Jour 81:;, 814, V'ih : 4 / /. OTi; ; f) iiL 54!' : Savage v. Howard Iiis. Co.. 52 N. Y. R. r.02 ; s, c 4;J H.^v I'r. 4(i2 ; 44 id. 40 ; Youni; >: Bagh; F. I. Co., U <5rny Mass. 1.50: t. !n? Law Jour. 7G4 , Angell Ins. 2.58. lOHH. AUeaafion a}i]iHes particulaily to an ahsoliUe con- veyance of rcc'.I pro])erty ; henrc. any tran.sfer of real estate, sliort of the conveyance of title, is ]iot i(li<:iu.ition under the above-c'ted condition of the policy. mmmmmtm AMKNATIO>r. 419 Til'! mciuiiii^ of iho words, " Siilo," "alienation," or "Iraus- fvv," in '^nch a comlitioii, is held Lit be. Confiiiod to acts wliicli absoluUdy divcist tlio title of the insiirtMl. Neither a niort^ago nor levy of e.veciilioii, \vit;liuiit chniigo of I'osse.ssion, is an alienation. Wnahington K. I. I'o. '■■ Ki'llj-, .I'i M(i. -121 ; Plinnix Ins. t.'d. /'. Liiwrrnce, ■1 Mel. Ky. 1) ; vKtna Ins. (.'o. c Tyler, IC. Wond. >i. Y. 3«!) ; .lack.son c Wtwi. Milt. Mre las. Co., 2J Tick Mass. 418 ; Gilbert v. N. Am. !■'. 1. Vo., 23 VVund. N. V. i:i. JO.HT. " All of the varioii.s expressions — sold or eonveyed in whole or in jiart, — -shall noL he alie.nated by sale or ot.lior- vvise, — tile title .'shall not be (;haii;a;ed or transfencil, — are hold to be in -mbstanoi! the same, and mean iin aet \vherel)y a thing is made another man's; an act whereby a chang(> in the owner- 8hip of ]iroperty ismade h<>m one person loanotlier; and whether the words an; used in their active or ))a,ssive senses can make no difl'erenee in their constru(!tion. These covenants are, that he will not assign the policy, or in any manner ehange his title to or ownership of the jiroperty insnn'd." 2 Abbott tl. S. 67j 4 Ina. Law Jour. CiT ; J2 N. Y. R. 105 ; 1 llisa. 511; 32 .\I.l. 42r>. lO.H.S. When, by the stipulatinu of the policy, it was " to be void if there shonhl b(! any alienation or chaiuje in the title." Hki.I) ; •• riiiil aiiv material c/iuni/c, llioiii;li not a/ifiuifioii, wuulii have that t'llici." Barnes v. Ins. Co., 51 Mo. 110 ; 2;- How. N. V. 71 ; 21 id. Pr. 40; 52 .V. Y. R, 502 : 20 Vt. .54(J. RECONVKYA.NGE. ' lO^tU* Theeifectofa conveyance is to terminate the insu- rance, and a reivirchme cannot restore it. Hkui: Tiiii ivi, alienation luni occtirr^^i wlien the insured hail given an absolute di'i'd iiiiil tiikiM) luick an utrrceinent for leconvinniico, iiiid prDviileiJ lie «licinl(l pay a certain puin in u given time. 3 lienn. F. 1. Cases, 30,35, 80; 2 id. 81; 1 Philips Ins. 03; IG Ohio 148; lit Lii. 105, 2S ; 11 Met. Mass. 429 ; 29 .Me. 21)2 ; 30 i,/. 414. liMK>. Hki.d: Tliiit a cumieijance al)S(>liil'' in form, though given as i\ .security lor debt merely, avoids the policy ; and this though only an un- 420 ALIK.NATION. divi'leii interest ill the property i- iiisiireil. lint ii merely iioiiiiiml triin-fcr ii> I'lilliiteiiil M'. iiiity (or liebia wliicli me Mili^iHimj^ lieiiH upon tlie properly II not liv.ilil I lie polluy. J. licMii. K 1. (v'liHes 71. i;7!> ; -' fnH. Lhw Jour. H14; I /,/ 7|H , fi i.i. H'j5 ; 1 iMrsoiis riH. ti2 n. . H» Mioli liTii ; ' SeUvyn .V. Y, 151. I01U. IlKf.n, vu tlic nthcr li;mil ;-— "'riie .>-iile ol' p'operty , uiid i.iikiii)^ Imek ii iiiorlijiiiji'. to ."^rTure the piiri'liUiT- >l ('liitiiL'c iIk; title wiiliiii till' iii> iiiiiii:.' oC ii ('(ih'litioii in a properly, iiione\ , tloe.-' ik j;M)li(7 of insiiriiiu'i', llmt in civf e of ' (my tiliiiiij^e ol' title' in iln' pr iii.Hiired, llie poliey r^liiill eeiise iind : siild I II ]Mit only, till' |Kili('v \\ i 11 Jiold onod its to the [lortnpii mi.sdjd, iiiilc^.s o\|irt,'ssly (illier\vi.so pi'ti-' idt'd by tin- polif'y- \Ve.st Hi-iiiicli In..*. (;0. lielHliill. Ill l';t. St 'i.SD ; h; W.iii.l. .V. V. a.Hft Ii Iii3. Law .lour. iVl. I'er Doni.ra: lifthtwiii v. IJ.'irltbrd Iih. (.'o., S. ( ,, .V. H. I'J Cent. Law .Four :i'.>4. \ liiiLse is simply a cliiiiioc of |iropcily will avoid it. ^17 lowix 17G.J I\KTNE1{SHI1', IO!M. WIkuo cliaiioi- of tide v()i yood.s, before Idss. eacli part- ner taking a pdrtioii, is cluir/c/n of title and coitsfiiw iit (dlmia- tiuu. I5. Where oiie of three partners, before a lo.s.s, sells his interest to the other two partners, without notice or con- sent the entire' poliey i.s void liy rea.ion of such transfer. (107», i;i7tt) for authorities. ^^^Ip mmm A.LIK.NA.TION. 421 •-I l(] is iiol (iJiiiinfJori, V'llr.T- riM(!(! MO by t,lu; PDiiilitioiis ol I he. pnliuy. A iiiorti^nt^o and a fnivclnsiire tire both inM^osHiiry to inaki- u clifiii^i! of title. no Mo. i)r, : ('iiiiov(^r (. IiiH.Cd,:! DiMiio N. Y. Us, attinricd I OoiiiMt. N. V. 'Ji»0 J 1 Philips \nA. (>■> ; 1 (;..):ii8U)ok \. V. JDO ; .18 N. fl. 2M ; H \',\nrk\voi lii.l. 30 : '• How. I'c. S. V. '"ml ; :i D'RT .V. V. •^54. |0!>7. Tvihi\nfn' ()\ iiHiiivd jn'operty to an a.ssi'^in^', uiiddr a ihxvt'C of h'l iikiiipffi/, is aHeiKiHon. V>\i\ a policy h riot voided liy a coiujinlsioi'y Xiile on exociitioii, H tli.' iiisdic I rotain the rUXni ofredinnptioii. (IOHI2.) I Ins. I.fiw Joiiiv i;47, i;?;!; 1 I'^iliiHitid's Ciist'ti jlld ; :. Ton. iN II.'JHV; 'J!» .Ml' ■im. I4M>.H. Wliero, duiiiiL; liu! currriicy of ii policy coiidi- tioiu'd that, " If the property .shall in any way be alienated till' policy shall be void," a njoi'tga.i^e, kuowti and consented to, was foreclosed, and tlie |)ioperty sold. Ilrin: " Tliiit liio iillc tliiit |]i'(amo voslcd ;;i (lie inortf^a^ijcc liy lln; Ioivi;lo.y ti»i' ini)i't;^iiLr')f t.'j tho mciftgiii^i.'c Wr- caii- IK'I. liicrcfc.p-', '•••,i'iU''i Uic run'i'.lo-iiiriMiii.l ."ali' ii.-^ ill) ulieiiatioii." (lOHO, lOHl.) ;; AUImti fJ. S. 07 : C, Fojier N. If. 2^.1 ; .1 Bcuii. V, I. Crtses 'ItU) , i> Ciisli. Mii3i. 'J42, . , i lOfMI. Wluin the iinder\vi'it,er ha.s assunii'd the atriniiative of tlic issue of ulifiiatiini of insui'cil pro|)ovty, tli»! lairdtui of proof iH upon him. (13 'iray Mas.s. 4:50.) IIOO. \\) ai^'reenient to sell, but where the deed i.s not made ner the purchase money paid, doe.s not dive.st the insured of hi." interest in tlie pidjjorty, so long as he remains in pos- session and the eontrad is not iierforined. Davis I), tjiiincy Mut. F.I. (.)>■>.. 10 Alli:ii Mass. 113 , Ftirmera Mut. Iiis. Co. v Graybill, 71 I'enii. 8t. 17: Trumbull /■ Poriiige .Mut. Ins. (Jo., i2 Obio .io.-. ; VVashiiigtOM fn.-- Co. «. Hayes, IT Ohio St. 13^ ; 10 K. Monroi; Ky. 'Wi : 10 Cush. Ma.?s. :!f)0 HBUKS XT r.,V\\', IIOI. Where, by the terms of the policy, the oom])any agree "to make good unto the said as.sured, his exei^ntors, ad- ministrators, and assigns, all such immediate loss or damage, not exceeding in amount the .sum insured, as shall happen by ■"^Pl "^ 422 IIKIHH Ar LAW. lim to till' prujii ity us nhovi' Hpucitit'd." It wjis hkld Ky llm MiipniDio ( '(iiiil of Nt'w Yolk, on ;i|.p(ial : — That "llic ilcitih nf till' iliHlllVil vests till' tifli' of iTiil ('>,t.il,c iu llic hills ill !;iu. OiUisJuj^ lluToliy Htieh cliim^'t'. of titio ,i.s to render iiolirif't of frwiiniiioi', eiiiitiiiiiiiiy tlio ixliovi' stijiiil.'itioii, void ;i> to such lii'iis,' (I,a|t|'iu r. Cluuter Oak F. & M. liu.. to., 5a JJuib. N. Y. l^2o.) (I Ids Liov Jo'ir. -l^l, 107 : 'M Mil ISO; MiiKoiy <■. ThompfiiHi, .M IVxih 7; lliiii' )'. Ili)!ni!8lfiiil liiH. (-0, N. V. Cn., l'> Ins. I.inv. Jour, 71, llOtJ. A jinlify ('[' in-^iM'smiji', which hy it:^ torms \vm pivy- iihlo lu the lu'ii.H ui ariHi:^!!.-^ of thu iiHiUi'd, i.s not ii itaii of the estate of the doeeii.stMl or liulile for his debt.-*, but the Iwiis will t;iki' liy virtue, of the r;oiitnu;L imd imt by the law of iidieii- taiii'e, (^Miiltci's V. 'rhonipsou, 5 1 Texas 7) IKKfi. Where jnoperry ix)\cii'i.i liy a niutual (he iiismanco Coiiijnmy is sold and i.'onveyed liy tie- iiismvd, iie i-. not liable to be a.ssessed on Ids preminni iiii|.t! Ibr lo.sscs uecnrriiig after .■juch >ale and eonveynnce. (l^JII.) IIOI. lUi^ccnt of title to heirn, as a, general jiriin-iple, is ni>t alienation under the oonmioii law mle. iJut when the policy requires notiee of such change to th'' heirs, to keep the insurance \alirl such notice must bi yiven. \Inj Ins. ZH'J ; 4 Koster N. H. 550 ; 5 Ins. Lnw Jour. 2.'!9 ; 7 il. 520 ; U il 71 ; liirfpll las. 120>1 : .Marsli. Ins. (JOfi ; Biubank r. Rockiuprlinm Mut. Ins. Co., !.!4 ;(. 11. (4 Fou.) 550 ; ri Benn. !■'. I. (.'usi^s 'Mi: .1105. Siil<' by ft Maslty ni ('Innvery, It is clear, lioth rU'eii priiicii'le .ind authority, that by the sale of the preiui.ses iT'8Uied in der the jirocecdings in the, Orj.hans' 7r>0T?SKArKNT.^. II4M(. ■■ A rdiitnu^t s'luyiii.,' llu^ pnli.N <,\ to ("un','! it, i.s ii.s Hdli'inii III! 11(1 a-i tin; coiili'iHt I't' iiisinuiu'i! iisclf, ulic- ili.'V iloiic l>y iiiilorst'iuiiiit or \>y ii .scpaniti' instriirnoiit." Siicli (.'.liaii','! s ill tliH jiolii'V liiivc Im!(.ii iMHtutuiuy in uuiliir- wntin;: Irnia I lit! {'ailicst iliiys, mid iirdvisimis wciv ukuIc loi' liicm ill ilir variotiHOoritiiioutal " ( tr.ldnuanrr^, ' wliirii uiv to ho rdiiini lit liiii^th ill MiiKins' Essays, vol. 2. I AniMnlii Ins. ".(i. II07- I lulnisemnnfcs ]mi'|M>vt lo In" tlir wiitti'ii cdii^i'iit nf tlic iiiidrrwri It r, aliithrr iim1(iini(| ii|iiii llic iii-.liiiiiii'iit iImII or wpiitiuncd in a. hciuirati' priiiti'd -Iii- i>\ ' inlii'" (I7U), attaolifl tlirri'lu ntiil niado a jiai't llu'ri.'ul',--to any ( liaiigr »\' tlio oiii'iii.il !■ iiitnu't, Viy IiiuhU;!' of ihr contiaui., or of iliu .sub- ject eovtired thuifin, to oIIkm' parlies, or i>y ronioval oi' tlio pvojierty at risk, or of any cliiui^ii.' oi allonitinii of ihi,' pn'iiiiscs, or of any of llu' tciins, coiidiiiou-,. ci stipnlarion.s of iho policy itself. («5H.) In France sucli imlorsivmonts arc formed avevavts, piii](ort- iiig to dhow that tin.' contract has^ ht'on anicndod, (|nalilii!d nv fvcn canceled. (Knierigon 381.) To bu valid llii.s avcnanL nmsf 1h! sigiii'd by both parties. I Anioiad Ins ."3 , Kiiiiies i.'. Knightly, SkiiiruM- 54. IIO.S. TIk^ elfcct of such consent is a sinij)l(>, a.«.'reeiiieiit on tlu' I'art of tJie iiiidcruriler.'^, that the (iliauge lluis indorsod shall nut prejudice tlie insurance originally inadi\ whnh .shall remain in fo!ct\ subject only to any niodilication lesiilting from the nature of such ni(li>fHKHU'nt, which may be to waive sionie ol tlio conditions previously exi.^ting, as wlien an rndorHC- nient written acro.s.s the face of a policy, giving privilege for atlditioual uisuraiu'c, was held to be a waiver (if lorfeituro on account of such uldilional in.-urance. II4H>. I inln,m,ii('iifs uiity be made on a separate piece of paper, and |)a^tcd or wafcred to the original contract as a "rkler;" but, tn be valid, it niit.st be signed by the insurer, ospe(Mally when such indi.r.scmeiit is made a condition jive- m 424 ALTKRATIOK OF nuiLKlNGS. cedent to the coutimied validity of the policy. And where the indorsement imposes new obli,ij;ations to tht prejudice of the insured, his signature will lie us ueeessury to the validity of tlie new agreement. (iHili, »0 1, !M»f1J.) llOfliU No indorsement of any kind shriuld ovt>r be made upon a policy after a loss until tlu; adjustment has been made and the claim settled. (1077.) N'or should indorsements be made upon renewal receipts ; they shoidd, when necessary, be entered upon the original ))oliey ; or, better still, a new ])olicy endiracing the proposed change sliould be made. (4 Bcnn. F. L Cases 184.) Shiuzer r. Mtiliml V. I. Co., 8 Ins- I^kw ./our :2 <'oui'tnf'y c. .V. Y, City las. Co., S. 0. .V. v., overruling Dey v. Pokecpsie .Mut Ins. Co , 4 Iji-dii. F. I. Cases 181, li?4. ALTEK'ATION <.F BUILDINGS. INCliEASE OF filSlv. UK). fonilHions <>/' the pulicy "If, liiirinir Hiii* insurance, tlic iibove- iiuiiitioneil prriii, -if- sliill he ii-^ci itr any ti.ile, li i->iiit'ss .jr vocation, or lor storing, u«iag, or vi'mlini,' therein iny of the .article.", gooii^, or .tnercliandisi> ili'MOininati'.l liazaniotis, or e,xtra ha/.ar.lons, or .ipeciuUy liiizar.liiu.", in tlie uiODiorHnilnni ot liazard.s priiiteil on tlie l)ack of tiii.s |iolii\v ; or, if t.he occupation ot such premise.^ be cliitii<.'i i tVoni one of the chi>-( denoniinateii extra hazardous or specially lia/ardo i.< to that of another of the same cla^.■^, e.vcept as iiereiii s[)e(;ially a:neod to in writiui; upon ilie |)olicy, tluii and from thenceforth, so long as the i^aiiie shall ite so appropriated, aiiplicd. 'ir used, thi.s policy shiU! tjease and beol no force or ( ^ect." C^tr, .V. 11. 2:i2 , .T Ins. Law ..'our 766.) AI/liniATIONS OF Oli .\nr)lT10NS TO RISK. Illl> Tlie iusufcd in;iy iiu'ui addition il risk \>\ alterations or addilii'tis, without prejudice to the insurance, pruvithid a loss oc(3fisioned by such additional risk can br. distinguished from one happening inde|)endently of il,. But wlien it cannot bo distingui.shed whether a loss has been occitsioned by sucli additions or alterations, voluntarily made by the in.sured, the underwriters will not be lia))le under the policy. Or, if iiny e.hange be madi> in the subject, not iiK'idental to the ordinary use of the i)roperty, so as to render it a dilfeient ALTERATION OF BtaLDINOH. 425 one from tliai described in th(! i)olicy, the underwriter will be wholly discharged from lialiility under Uk; contract. (lltJ5>.) 1 Philips Ins. 351; JuH'orson Ins. Co. r. Cothcai, VVeml. N. Y. T> ■ Giranl F. dt M. Ins. Oo. I'. Stephenson. .'{7 Ponn. Sta. ^:):'. ; Cnrry r. Ins- Co., 10 Pick. Mas'. .535; Station r. Ins. Co., 4 .Muss. R, .iiO; Darn v. Qerman Ins. Co., U. S. C. C, N. I). Ohio. Jan., Ih7('> : 19 I'enn. St. 45 ; 58 i,l. 44;! ; 1 '.VriKlH I'a. 298: i id. 311: Civil Code I,. C, § '21S5 ; Liv. it: Loud. & Globe Ins, Co. v. Wyld, 1 S. C. R. t)04 ; Chapman '•. Ins. Co., 13 L. G. J. .30 ; Sovereign Ins. Co. (■ Mohr, 10 L. N. 7il, 14 8. C. R. tU2 ; .Moonny v. Imperial F. I. Co., M, L. II,, 3 S. 0. R. 339 ; Peck v. Mut. Ins. Co., C. Q- U., Onl, , Citizens Ins. Co. v. Rollnnd, M. L. R.. 4 Q B. 3ii2, C. U. 4 L. N. R. 140 : Kiinty. o. Niagr. Dist. F. I. Co., 28 U. C. 0. P. 32H ; Lomas i-. IJriti.sh America [ns. Co., T2 U. C. Q. B, Jltj; 4 BiMin. F. I. (Jascs Gr,j ; Reid r. Gore Dist. Ins. Co.. 1' U. C. Q. B. .345. REQUISITE REPAIRS. HV2' ]\e(jui.site repairs, such a.s corao within the ordinary acts oi' ownership, may be made in ond about the })renu,se6 under insurance, where there are no expve.ss stipulations to the contrary iii the i»oIiey. In most policies permission is given to make sucli repair.s to the extent of fiftenr! day.s within tlie year. 2 In.s. Law .Jour. 944 ; 4 id. 6, 7 ; 5 il. ? 7, 9. 15 ; 8 id. 420 ; 15 /,/. 371 ; Rann »i. Home Ins., Nf. Y. C. Ap., .Jan.. Hi.") , 3 lienn. F. I. (■'asos 151! ; 3 N. Y 122 ; 18 *:/. 168 ; 59 id. 387; Ottawa Porwd. Co. v. Liv. & Ljnd k Globe Ins. Co., 28 U. C. Q. B 323. 1 1 lit. If a .shingle roof bo replaced by a metallic one, seuurt'd by soldeiing, which is a hazardous opeiYition, ;i.iid tlie building takes fire in ..oi.^juijucncc, the undurwnter will be discharged unless permission for such increase of hazard be obtained from the insurer (S;{»">. Il«fi!{.) i Wis. R 20: Grant c. Howard F. I. V«., :> Hill N. Y. 10: O'.VeiU r. BulKalo F. I. Co., 3 (Jom.'itock 122: Deljoqupmarc r. Tradesmen'.^ Ins. Co., 3 Hall N. Y. ,"589: Lotinsbiiry '■. Proti-ction Ins. «/'o., 8 Conn. 45!) ; 1 Bcnn. F. 1. Cases 0S7. nil. If the alteration be of a. permanent charactttr and niat. An alteration whereby the character of the risk is not ehan,!.red, nnr the tire hazard increased, iloes not discharge the insurers from their resjionsibility : where no stipulation against "uich alteration exists in the policy, a material increase of the hazanl must ht ,>hewii to avoid tin; policy. In such cas(S, not ciiK tlie fact of the alteration mi addition must be shown, luit tin farther fact that the use and enii)loyinent thereof followed, ami that the risk was thereljy increased. The fact of such increa.se of hazard is a iptestion for the jury to decide under the conditions of the i)oIicv ; the onus such niaterialitv lies with the insurers. Hiirrett Jcromv, 8 W ei.-:., liiul A" (l')ril, l'].\.|i pr( 1 Sflilen .N. Y. ISO Uorastocl< N. Y. 12J ; •! Id.s. Law .lour. 4Vi), SO. Alteniiioii by acci'letit : Drenuer .'. Liv. it Loiul & Ulobe, .■^. C. X. 0. Oct. 8, ls75 : Cond. Suit. U. C, c. .52, 'i 34. If the underwriter desires to make it a comlition-preciHlent to the continuous validity of the policy that there shall be no altei'ations in the circumstances surrounding the risk at tlie time of th e issue of !.he pulicy, he nuist do .>o indistinct tiM'ms ; and when such alter;itiniis are thus ex)iiessly forbidden by the .stipulations of the jiolicy, oven a casual infringement will not be permitted, iind no question of materiality t an ari.se. IIKJ. Policies stipulating that there shall In: no cliange of or addition to tht jiiopcrty at risk are subject to close scrutiny in cases o f 1 OS,-; where such clianjies or a' iditii )ns uvc t>een made : and, while the facts are subniitleil to th.e jury, llie hitter of the contract will be consideii-il in n.niu'ction witli what may be necaasai'ii aihl'iHons or rhanges. «'ii.\N'i;i". oi'' orcri'A.N'cv. 1117. To invalidate an in.suranee, change of occupa.'iey nf a building under insurance mu>l be a permanent one. ALTERATION OF nUILKINGS. 427 A mere tornpovary oxennse tlierein of a inor«i liazardoiis Iradc' or vocation will nut, usually, invalidatii tlic insui'anci' in the akseueo ui ;:'>p(;ciHc stiinilations against such teniporavy occupation. (lllO.j 1 Seldou X. y. 4G0; v: l/iisli, Mass. 472 ; 8 Conn. 4M ; 20 I'a. Stii. i;»tj ; 2 InH. Ljuv Jour. 5; 4//. IC" ; i:> 1 7. 5'_' : Plunder.^ las. 2'-'2, '2:JG, n. Ill7a< A change in the nutiire of tlu; I'Ccupaucy docs not point to a nu;i'e teinporaiy ctvs.sor of tin'. occu|);itii)n, l»ut rather to an application of the jircuust'S umlcr in.suranci- to a per- manent iiuri)o,s(.- dilfcrent from tiiut de.scrilied in the a]ipli 'ation. 17 Hurl), v. y. HI ; ■-' Hull N. Y. riHU ; 3 Oomsl. >f. Y. 58;> , .-> 11 ill .\.y. lO : 4 ]ni. Liiw .lour. Ii;4, ln.'i : I. If the policy ])e titndilioued to be ninde Noid l>y uiia.utii')ri/ed use, the cau.so of llie lo.ss is iinmati'rial ; and the liiet that it was carried on by a tenant, without con^^iUit of the landlord, the insured, or by a niortgageor, aftm' as>iignin(!nt of the jxilicy to tlie mortgagee, is no defence, Srtverei(rn Ins, Co. /', Moir, 10 L. N, 70, 14 S C. I{. 012 ; I'latuIiT.-* Iin. 25i! ; Jeuning- r. Fire Ins. Co., 2 Denio N. \' . 75 ; Wall /;. B. Hiv, lu.^. Co., ;{ Seld. N. Y. 37ii Lawless V-. Ins. Co., cited Aij^ull Ins. j 1G:>, n, 2 ; Hun Fire Ins, t^o. v, Ttxarkana Foundry & Machine Worki Co., S. C. Te.xas ; Harvey v. Mm. F. I. Ci,, I'rfscoU, 11 U. C. C. P. 3l>2. ■■P 428 VACANT AND UNOCCUPIED. 1130. Under u policy cover in (^ goods of one tpiiant in a speciticd liuilding, the enhancement uf the risk of fire by the manner of ocenpnncy in other respects does not discharge the underwriter, except ii])on the ground of express warranty, or implied represiMitation in the application. (Appleby v. Ins. Co., 4.". r.arb. N'. Y. 454.) 1121. Where tliere are uo express provisions in the policy to the contiiU'v, unauthorized use of the ])roperty, after insur- ance, by whicli the hazard is increased, su.spen<'s the insumnee during the continuance of such unauthorized use, (11150.) (3 Gray Ma.ss. 583 ; 45 Barl\ 454, sitprd.) Ilt22. A.s a general rule, where two buildings are covered by one [iolii;y, under stipulations ai»plicii,b!(! tn both, an un- autlnai/ed use of one of them vitiates the insurance on both. (»4«.) .! Iiii. Law Jour. 8'.il, Diif) ; 6 (' /. 41 1, 4H>, 44.-' I iJ Ciiah. .Ma.5S. iilJ ; A IJeiiu. F. I. Oases 131. II2:{. Cndcr a clause against increase of hazard after insurance, tlie insured made akerations and a hlitions, and removed a Jurnace from the original building to the addition, without consent of the insurer. The jury found the external risk was increased, but the internal hazard \va,s diminished, and on the whole the lisk was dimiiiisheil. JM. Ciinilitioii o/llir. poliry. — "i)r it tlie iitiove-mentioned premises aliall be oii'iipifl to increase tlie ris^k, or become vacant m- iiiioceupieii, nd j-o iiaiiam for more lliaii thirty duy.s .vitliout notice lo iind consent of his iHaiijiany in writwig." VACANT AND UNOCCUPIED. 429 .I12, 7.^5, 803 ; 7 id. I»i7, ^'20, 228; 9 id. 38, <)5, 79; 3 Com.s. .V. Y. 122; Sumner 0. C 434 ; 12 1owh:!71; May ins. 268, n. 2, 2Tn ; Flanders Ins. 257, n. id. 259 ; i B<'nn F, I. Crssa 759 ; 11 Handy 0. 208, 40.'- ; 12 Gush. Mass. 1i57 ; 45 Me. 108. 1127. Where the plaintilV inude application for insurance upon hi.s dwelling house and furniture therein, giviny notice at the same time that the house would lie unoccupied, as he was going to tlie United States to re.side, but would leave a com[ietent person in charge of the jtreniises during his ab- sence, '["he agent thercuj)ou accepted the risk, ani Wood c. Ilnrd\vart> .Mrit'g. Co., la Conn. .Vt) ; r> Benn. F. I. C. ."iii" ; Caley r. llarpor, S'i Penn. St. 403 ; Am. lus. Co r. Pailtielil,":! 111. liW ; McClurec. VVaterlowii Ins. Co., Ina. Law Jour. 209 ; I>(Minison V. IMui'nix Ins. Co., 9 Ins. Law Jour. G,'>. Whcri! nono(HMi[)aML\v does «£)/ ry/i the policy : Ncill c. Butt'alo Ins Co, 3 N. y . 122 ; Carter i\ Humboldt ln,«. Co., 17 Iowa 426 ; Prioger n. Exch. .\Iut. Ins. Co.,il,\. Y.H7; Am. Fire In.*. Co. c.Fo.stcr, >S. C. III., Oct., lf<7!t : Shucklcton c. Snn Fire Ins. Co.,S. C, .Mich., .Vov.,18H4 ; Woodruffy. Imperial Ins. Co., S. Y C. Ap 1880; Ph(fini.v fn-s. Co. c. Zucker, 9 Ins. Law. Jour. I'.i3 ; Hotnan c. .Mcrch. Ins. Co., «. C. N. Y. ; Kelly -. Home lua. Co.. N. Y., U. H. (,'. C, Dist- Kansas- Cuu- uell I'. Phd'ni.v Ins. Co., 6i» Mi-. .082; O'Hrien r. Coinni. Ins. Co., ti J. A Sp. N. V. 517 : Hartford Ins. Co. v. Smith et > any meariH wliatever within the contnil of ihc a-nnrecl, willidiit the a>^.-enl of tlii>^ CDiiiiiany indor.-ed hercdii • • • (liis in.-5uriinco fihfill lie voiil." ||:2!K Uuder the gtnieral provision Ihiit "if attei' insui'ance i.s olfoi^teil tlh; I'i.sk on tlio property Hhall hv, increased by any m 'iuis loithi II //'(' control t') enhance the risk would incur a forfeiture uf the policy, (llll*,) Rarrett <■. Jeremy, 8 Wels., Hurl i Gord. Eich. K. 535 ; 3 Benn. P. I. Cases S3, anil authonticb .';//'/■'/. SUSPENSIOX OF THK COXTRACT. ^IJ$0. Where a condition of the policy wa,s, that if the premises should be appropriated to a prohibited use, without consent of the conii)any indoi.sed du thd policy, " th'Mi and thenceforth, so long as the same shall l.)e appropriated, applied or used, these presents shtdl cease and be of no force and eflect." (Il»a.) IIei.ii : " Tiiat the iiicaiuiij^ of tlie ooiidition wa-i,if the house or jiroinise:i ,'^hall be appropriated lu tiny prohibited ti^e, tben, sr; Inmj as it is so ap- prupridled, tiie jioiicy shall cease to bind the inaurero." (/Etna lu3. Co. v, Myer.sS.C.Ind., Jan., 1^78.) 431 STORING AND KKKPING. 11\n ihonei'l'orth, so k>iig as llio same nliail be so appropriiiii'd, appiiod, ur usod, lliir: pulicy .-hall cea-ii' and be of nu force or (.'tleul.'' STOKING. li:{tS> SiMi'iii^r mucUis tlto kuciiing t'oi safe ciist.ofly, to be delivered out in the same oouditiou, sub^taulially, as when recoiAcd, and apj'lies only to where storing or safe-keeping was the principal object of the deiiosit, and not wdieru it was nioiidy incidental. To be OH storage, articles inu.st be in the building for the purpo.so of being dorcd or kept. The mere kee])iiig of certain articles (deemed hazardous and extni hazardous, and prohibited by the policy), in tjuantities not unusually large, for the [nir- pose of ordinary rc'tad sales, is not sfori.Kj, and does not invali- date the iiolicy, nrdess its jiroMsions specilically forbid the keep- ing of such articles for .sale. (1IJJ»>.) 3 Ina. Law Jour. 261, 2H8 ,- -l id. 413, 503 ; ' il. 'i.iii ; 1 Bi^nn. F. 1. Cases 103, 340, 348; 2 id. 140, 142, 147 ; 3 i-l. 973; 6 VVoiul. N. Y. ii2:i, fi2-i ; 3 Harrison N. J. 48; H Oonii. AM* AngoW Ini. I!t2, 212, 220. llStt* Under the stipuLitions of a policy, "where no fire i.s kept and no hazardou.s goods deposited," a tar-barrel, which was hazardous, was introduced into the building, and from it the building caught lire. (1113.) llia.n : That tli ■ stijjiilations referred to the hnhitnal use of fire, and tho ordinary deposit of good.-;, and not to the nccasional introduction of eitlier. Taunl. 430 . 1 Holt, N. Pr. Uii ; 1 Wood .fe Maltby 00 ; Aajrell Ins. 222. llJit. At the time of the fire, the house was lieing repaired and painted, and " oil, turpentine, and i)aint " (prohibited articles by (Iks policy) were in the building for that purpose- Ukii) • "Tiiat tlie repairing of the insured hou.se, and the de|n>8it of the oil, turpentine and paint for that purpose, was not the trade of ' honse repair- ing,' or 'storing" of the artiides within th(! meaning !Si 432 rudiiiisiTKn AimcLES. Ii;t5. VVIiero " oil, sulphur and matdics " were mciuidueil ill till- policy as ''hazardous " unil "cxlni luizardouy," and were kept Ujioii the promises. Hi'i.H: Tliat. ilic pulidv wuh iiunU' void, iind tlif fact tliat tlu' propfi-ty was iiisiii'ril "'us ". jji'iivinioii urjil tri'nocrv .xtmc " ilid luit fiulliunzc the k(<])iii.' ol' iiii cxci ptcil articlr~ us a | an of Ilic ^locK a|ipi'rlaining to .v)fc.7(. il/.x//(r.M. (1140.) I IJtO. Among tile classes of " ra'tra hazards " were enumer- ated "nil, (allow and gla.ss ; " (ho policy was on "stock intrude, cnnsisting of mcrclianiiise no) hazardous." It appearing that " nil, tallow and glass " Wire kc[.t with the stock insured, the policy \^iis held to be void. ('. 2!);i, I'a. ; 1 Ins. Law Joiir. :!4 ; .'iO Mc. 273 ; 2 Ailin Mass. 581 ; .3 Bonn. I', t. 11117. Pliicing gun])owdir in a hiidding, with a hghted match, for the pnrjio,se of blowing it up to iircvent the spread of a cnnHagration, is not a f^htV'iKj of it within the lueaning of the prohibitiiry clause against "storing gunixiwder on the premises." IIJJ.S. A ])olicy "on a stock of goods and merchandise con- tained ni plaintitl's store " stipulated that the keeping of gun- powder loi' sale or on storage, upon or in the /yrcruisati insured, should render the jiolicy void, (I III.) Hki.I) : That iho vvnnl " preiiiis*.'.-* " refcirt'd to bnilding.s in.-^ured, and that gunpowder was not kept "upon or in tlii' pn'mise.* innured " within tlie inraninj' lit the above proiiil)ition. (1 In«. Law Jour, 24.) IMlOllUVITEl) AKTICLES. li;?5). ('(i)itUtioii of the poIi< I/.—" Il'llicax.s .red shall ke"p gunpi)wder> tirc-work.s, niti'o-^lvcerino, ph().- Wend. N. Y. 623 ; :; Benn. F. I Cases 7ti. rROIIIlUTKIi AIJIK'I.KS. 433 Tlie eiiumeratiou of otjitniii kimls of business cir traiK-.s ih 'pvt>hihitcd, on the grouml of luiiij; liuzanlniisj, is lu-ld id he uii admission, that all olher kind^ art' lawful iiiiihM thi' contiaci, LiiiiK'lon V. N. Y. K((. lua. (k>., 1 Hull T^i ■ 'J Wvmi. iiJ;i j 2 Jidiiis discs JOO ; 13 M. Monroe Ky. :Ul. II ll> A CMiiditioii not to iiso ctdiipli.i itc prohihit.s its niaiiu- factui'tj ; and not fokei'p it includes it-* iihc for lights; yet wIhtu a builiUng is insured as a printing-nnict!, the proliihition of tho UH(Mif naniphene is held vjo^, to extend tn i(s usi> fur elfiuiin^' Hurler r. Alhnny Iiih. Co., 17 N'. V. l!'4; Flanders 1: 3. (1st •■,] ), 7H, 7;t ; Kriiffe r. West. t''. k M. Ins. Co., 8. C. Cat, 17 Inn. [,;ivv Jour. ,'i4 ; Sti'linor c. 'tranilc Ins. (Jo., 5 Duel-. S.Y., 791; Mcail r. .Noi-tliiiinln'rliini| Ins. Co., 3 Selil. N. V". ;);iO ; Westfal '.'. Hnildon Riv. Fna Co., 4 K'Tn. N. Y. 2K;i ; PI)o?ni,x Ins. i' Taylor,,') Minn. »92 ; Mall /'. Ins. Co. .V. Am.. .! Ins. FvUvv .lour. SSO. Per ContrH: Lan- caster I'". I. Co. V. lieulieim, H. 0. P.a. ; MiiconiluM' /'. Ins. Co., 7 Gray Mass. :in ; Whitmarsli o. Cli. Oak. In.s. Co., - All'^n .Mass. ;'>81. II II!i. AVliciv the c'oiidLlions nftln' )inhc,y reqniri'(l piMinis-^ion to use can)})hene t\)i lights to lie inilorsed on the policy, and an additional preiuiuni to be paid for its use , and oaiU])lnMie had been used for lights without -vUch ]K'rnu.ssion having been indorstd upon the policy, ainl without the payment of extra preniiuin therefoi. Helu : Tliat tlif ii!-o fif it wai (iroliitiitrd, niul that tin; |j(^li<'y wa<^ vuiil. Lainolie r. Hurt. Riv. Ins. Co.. 17 N' Y lyy; farm, ■'it Mec.li's Ins (h). t. Simmons, 30 Peau. St. 209. GUN]'0\N'I)F,l;. Comiitioii of the polin/—-" Whenever f.'un|iinv(|ir, or any other .'irtiole suliject to legal re.-triction. shall be Uept in nuiil pi-etiu.'»e.s, in i)ii.inliiies irreater thuntiie hiw allcjw.", or in a, manner ■iill'erent i'tom tiial preHtrilieii hy law, unless saiil u.se or keepuig i.s specially pvovidtd f'oi' herein, tin.-; puliey shall be iinll atnJ vonl." Il-i:<. A condition limiting tlie ([uantity of (/uvi/)0'?yr/('r to he allowed in a building has been held not to be an unreason- able one, although inserted in the policy of a dealer. Dnncan v. Sun Fire Ins. Co., 6 Wen'l. X. Y. 48s ; Faulkner v. Ins. Co., 1 Kerr N. !'.. 27!.); McKwenu. GuthrUlgo, 13 Moore's P. C. Cases 304; Protection In.-. Co. i\ HarmtT, 2 Ohio St. t,")i ; H>w:uan r. Ins. Co., 27 .\lo. 152 ; Peoria F. Hi. M. Ins. Co. I', li.all, 12 Mich. 202. ■ CO ppMmpiM 434 rnoiiiniTED auticles. 114-t. Where a stwirnsliip was prot-octed atruinst fire uinler a IVinn of policy fi.i>]>li('iiMc to Iniililiii^jfH uiid ccniteiits, in wliidi the iiuiount of gtiii]M)\V(ler iHTUiitlcd in be kept vimii tlie prewisf's v'H,« limitcil to twenty pounds. The steiuner win destroyed h\ lir.', and the Jury found Unit then; was a packa(), 73; 7 L. T. N. S. .'"74; U W. R. Utl. 111*1). Where the eonduion applied to the keeping of '/c/i- 2)0iciltr ou the pretnisos. It \\a.-< ciiitended by ihe company that kee[iinL '_;uiii»n\dii' in llic slme, in (.///// qua utit;/, vacated the policy, while the assured insi.steil the [lulicy is not defeated if th(^y did not keep Tuore than owe fxin-d at a time. Tlie clause of the policy out of which thi,-> ditlerence in opinion arose is as follows : — "()i- it' gunpowder, jilio.«))l\ui\i.-. ■^aitpcin'. iiii|iliilin, honziiie, iicti/.iiic vaniisli. bfti/.ole, pftiuleuni, or crude earth u\\>, an' kept on tin; |in.iiii?-is. or if cii!i)|ihene. biiniiiu' fluid, relincd cotil or eartli oils are kfjit fur sale, fitori'd, or iij^ed on tlie |(reii(i.'es, in (jiiaiitilies exoeediniriD/c harvfl at anv one tinii'i \viti;oiU written pcrinis.uioii. or indi.r-i'il u|i.)ii tiic jiolicy, then and in every .-inch case rhis p(dicy x\\n]\ W void.' Jt ua- lield l\ tlie ti. S C.C. So. Di.-^i . ,Mi.«s., that (as t nneliiatcd) "it is jiianifi'>l that im greater re.>itrictioii can he applied to yunjiowiler aini .■^alipeire ihan to eaniphene and hnnniig-Hnid, iiid that, tlierefore, the words ' in quniititiefi oxoeeclini one liurreJ at any one lime' are applicable alikv to all the iiiaienals which arespecitied in Ihe e.laui-e in controversy." Jt'liu'iiix Ins. Co. ',;. Slaughter, 12 Wail. U. S. lui, 1 Ins. Law. Jour. 'jOG, NArilTHA. l]-ff>. A stipulation in the printed form providf>d tlnit the policy should becoiu(! void if naiMlia, camphone. chemical oil, .spirit gas, or giin|)owder were used or kept on the jtrendses insured, (rutuani v- Comnionwealtli lus. Co., U. S. r(i|.K:'ty. u'hether workii'jr ruMicr h\ the aiil ol nn/'/it/m ov nOl ; lluit, if the firintcil \v.)i-.|a Jtartlinj; tin- ll^e of iKinhtha ■'ti mil rega mm iif tlie tloiieiiiiil n;ieoiHri)lleil liv aiiv i ithvipi ovi. n', there liui 1 lu ;hHh )f t! leeohtnii'i tlun lu |iluiii tills cdiilil iKil recover. Hut the written leriiis of the noliev were to have elleot und •I'l" .il or contrary to the printoil piirtion, lluit imisi yiel 1 ui, (jf no force ; that the policy ^avc to the plaintiili- le ri^rhl ami pnvilej.^e of cl he.;i It >mo carry 1 the hiLsiness of a ruhher-lhreail factory; ami it thejiuy fouiui that ii'ip/ifha wa>», at the date (jf the policy, a necessary material, or one orilinarily uwe.l in the bii.^ines.s uf riianufaoturint; the ravv nihbtp into tlireail, ami it was a general cu.'^toiu in estahli>hiii(nits like the plaintilfi' to employ that inatori;il, ami the plainiitls used it for that jmrpose, then there hail been no breach of the contract, even if the plaintitis' t'act(^ry was the only one ia Anierica using machinery requirin'.' tlie usoof aaplitlia" SAL1"PETI{E. II-IT. Where, by the conditions of the policy of a meat dealer, the keeping of saUpelre was prohibited, a keg of saltpetre 4S6 vitoiiiiurKn Aiiiui.KS. le was Kopt ill tlie ahfp, lUid, oti one oituhIoii, n a oiiHtoincr. Tlic jiioot' I'urtlua' slmwod that it \v(H ciistoiuiiry fov (k'iil«i8 in uwni to hmo Kullpcti't' in Biimll 'lUiintities in tlicirlxiflitu'Hs. (1 Ins. Law ifour. 50."3 , li a/. 84c).) Tlio .SuinHue Court of Illinois iikmj : — " Tliiit r^iich oiif^ioiiittiy mv ■« iiriiclf iiii|i)ic.i ii It imwk'ilgo ot'tlio fncl oil llif purl nf lln' uiiilorwritiT; umi I lull I lie nicn' fiu! of tlic iim', or of kcfp- iii^; CuI' um', in ft riiiMnniililc (|imiiiily, vvcmhl imi viiiutc lliy |i(ili(_v. lint a keji? ol'.«altpetro wuh, uiKier tlio prnotV, more tliim li rcaHonuliliMiiiainity . iimi wlifllier (liiD^croiih or not, if* iininatcrinl— tlic ljii;t of svllinij to n I'liHiuin.r IDtnle iho butclicr a tloaliT in llif iirlii le to mch an cxicnt, hh . Ic:n-I_v to vernier tlic jxilicy vnid innicr it« lerm." ; hikI, Miuugii tlic HHMircil iimy keep iirticlos in'co-nary to carry un ilic busiiies", llioujj;li proliibileil liy tin- policy, it IS not true that lie may keep tliein lor i*ule. CAMniRNK. 1 1 I.S. Wliorc claim was niadi! Inr loss iiiidor a [loliry, ono of tlic conditions being "thai (H'litjihi'iie cannot lie ns< d m the Imilding. unless hy sjiecial pennission in wiitin;;'," it was j.idVi'n that cii'iii i>ln"nc had hoen in the Iniilding, but liad licfii feinoved beh.ie the lire. (2 Ins. Law .lour, 843, Sfjl; 3 hi. 850 ; 4 Eenn. F. 1. Cases 4.) Hkio; " 'Dial ilie ciiiiise was a p'dliihiiiuii, Corni'nir part of flie contract ol in-iii!incf, and if invaliilaii^d, wlifilnT r.hiit afti'ctiMl ilie risk or noi, tlie policy was voiiIimI ; atni it .vaw iniinatiTial wlietluT ilie i-iil'joet i.:f the lireaeli Conti'iMi'ii up to the tiini' of tlii.' \ot<> <'r not.'' II 80. Whci'e it was kieiwii to the agent of tho uiultruritei's, at the linir the jiolicv was effected, that the insnreil kejit a pro- hibited article, and iniciuli'd tn keep it in the biiildino insured, the keeping of it woidd not inva.lidate tlie policy, win Uier periuis.«ion to so kee]i it was indorsed as instructed, oi neglected to I'c indorsed. (1»(> spci'ially writli'ii in tho j)oHcy, otherwise lh(*y wen; not to l»c covcrwl by tho iii.snrnnoo. Th(! loss arose from ii luv whic.li oriL,'in itcd in I hvk!* are incl'ufi'd unihr the name, nf fivf-crnrkcrs ; i»nt tlu; j)hiinti(1' con' •iidf^l thul Iht-y wen; included in the description, "othor articles in his lino of busincj^s." Thisovidenr^u was vcjoctod by tho (juint bohjw, ami jndi^incnt >,'iviMi f(jr the dofendaut. Upon Jippoal tho Supreme Court of U. S. (13 Wall. 183), CliASi;, (J. J,, JlEl.n: " T!i(' jKflicy itMelf ivijiiire-^ timt firf-io"rki .^Icill lio aiicciuUy written ill it. Tlii'y ipt> Hiiioiia llii' li'i'iit-i iloiirilir'l uh -|iet"ially Imy.iir'li'ii", iiml :i>iil tit^v co'itH 1)11 till' liiiii(irc'il (1 )iliirH [•> i.lu' unliiiiii-y inie of iri-mrjiiicc. It m iiiipd.ssitilc Up il)iiii< llicy fii'e iI'Mcrilit'il liy tli« ^^I'lieral Icrms iited in Uie pdliiv. TIk' iti-^uniiM'.:' was itt the Mnhimry ruli's. TK^ro cun Umi" 'Imht tliiit till' eviil('nc;i' win proju'rly rejcirti'il ; tilt' juil^meiil of ilii' ('ii'cnil e iviliri.'ii'ii'" yieiiibeck v. Lnfi*yeilo fiii<. Oo., .V, V, (.5. Ap., 2 Ins. Law Jour, si.' cyturn. WAIVER. llilil. Cniuliiidit iif till pidii'tj. — '-'riio 111" of ;i;Hi)i'ral tcniii, or anvtliin;» le«.« tliiiii ;i (IJMliiii.'t, specific Hgrocmont, clearly expreHH*-!!, atnl m.lorsfil on tlii-i poluy, >liiill not he coiiatriifl a.s a waivor of any printeil -tv u riU''n cou- ditiiMi or r('-trii;ti'iii tlu'roin." 2 [nsi. Liiw Jour. i5l:»; .5 id. 3S(, 104, 501, 5tJf>, 781 ; Ooiuiii.'iit.il ?. 1. Co. u. Riickman, S. 0. Ill , 2i> fMiic. Li'p. News 2'J4 ; Pitney v. GIlmi Falld (ub. Co., til Riri >f. N 3:!r) I H Ins. Liiw Jour H17 ; 10 //, bi) ; Stat, tlonii IT, , §20. II>>'J. W.ii\cr, in law, is tin; act of not ni.sistiii.^ upon 80mo ri' . cliiiiii or privilege seonred, as in ari insurance, by tlu; con- diii.iu.s of till' policy to the insurer. It is another name fir an estop]icl, which is the truts grouiul upon which the doctrine of waivf^r in .such cases rests. Such waiver must be the act of an ofticer or didy 'thorized agent of the company, and may be by ! t m 438 WAIVEU, direct iiiUiiition or hy iiiij)lioati(iii (HKIi) dorivoil from the iirfc of till' iiisiD'i'r or his iij^'cut, or I'rnin a i'aihirr to act at tho ))ro- \icr tiiiK!. Ill (itlicr case it i.s final, and cannot lie rccall(id. It, can n.-vir ariyo l>y implication alouc, oxcopt from suinc coiiduct which induced action l>y tlic insured in reliance iipou it, t,o an extciiL tliat would ri'iidm' iL a. fnnid lo r^icede from what the party had been inducctl to expect. (lltlS.) Where sncli waiver distinctly appear^i, the roasonahle rale of law is that the party Avill bi' eslopi' 'd iVoui in-iisting npoii tha.t whi' h is inconsistent witli wh.it ha> bci-n said la done that alTectH the rii:hts of others. It is in such cases that lIjc doctrine of eHt(ip[)el ii> I'liifi linds its just application. 2 lui. tjinv ,lmir .15, M', (WH: 4 '.1. 801 ; 5 /,/. 2;i, 9?, .W) ; f, (,/. 2,'-)l , S ,d. 143, OOfi ; IH id. 54.: \'i,le w. (ternmiiia Ins. (^i , 'Jii Iowa !• ; lioiipfr (Jily Ins. (lo. c. Sorry, ivi 111. IJ8 ; I'estimr i PinTJiii.v liia. Co., (>.') N. Y. 19."> ; Van .MU-n c. Ina. ('o,, 4 lliin. V. V. 113; HoU-likids c. Ueriimiii.i Ins. Oc)., 6 liiin. N. Y. i)i> ; Storey i». Hope Ins. Co.. S. 0. I.,n., l.'i Ins. L:iw Jour. 1!); \V'..od li3., :VU>, ;>71. 1!)6 ; Brady ('. West. Assur. Co., 17 11. 0. C. 1'. r.-.)7 ; Jncob? •>. lOiuiinbU' T. I. Co., 17 U. C. Q. b. 35; Smith v. CotnniertiHl tJniou Ins. Co., ;t:t U. C. Q. H. ti!) ; Mnlvpy r. Gore Dist. M. Ins. Co., 2:i D. t". Q. H. 424 ; llatton c. M-hcod Im.-< Co., Ml;. C. Q. 15. :n7 ; Scott v Ning. Dial. .M F. I. Co . 25 U. C. Q. 11 119: Tliiime.-4 fns. Co. V. Royal M.S. I' Co., i.'! 0, B. N. S. ;!5S ; Ilawlcy v. Sheldon, liar. ('liy. Mich. 420 ; CL'tty (.'oni. (iib lid. ";!, liail' Nothing, however, ia a waiver of the rights of an insu- rer tliat Would I. it, under the same circumstances, be enforced aj'a.inst others ; aivl no act of the insnrtu' can have tlu) effect of a. waiver on accoinit of a bre.ich of condition, unless it lie sh own to h lavc been done with t fidl JlnW led'''!' tliat a forCi ;tuie liv L^uch breach of condition existed, and with a. design to include it 111 such pi'i'inis .SlOIl, K! Lit. Ann. a75 , 22 Conn. 5r,5: 25 il 2i'>0. It i.s iiul to In; takf'ii for granted tiiat uii cxjiirfid ])()li(',y would borovived in all cises whore an e.xisliiig one iiiiijlit be mi'dilicd oraUowoil to be ull'cotod by new iuHiir.uiceel.'iewJKM'e. (2 jMoMullea, So. C. 237 ; 1 Ins. Law Jour. 201).) Il>'i7< Tile (Hio.stion.s of waiver, and what anioiints to a waivrr, ai'e iinestioiis oi tact, and arc for the jury to decide, under proper instructions from the court. 2 S. Ilamp. IJO, Ui.T ; 1 (Jonii. ?;•; 7 id. 1.'. ; 1 1 Wen.i. V, V. 41:1, 1 Oliio :;1 ; 1 lii'Owii'.s Pur. ijiiai'H, 2«1) ; H I'ick. Muss. 2'J3 : :> Iii-i. Law Jimr. T.in. - liUH. Any acts, ch.vdaratidusi, or course of tlealini,' by the insurers, wiih kimwledge of the f,u;ts con-itiluting the hi'' ifh of a con,'lUlu)i in the p>lioy, recoguizin^ and trwiting the policy as tjtill in force, and h;ailing the insured to regard himself as .still protected thereby, will amount to a i.o th'er of the forfeiture, by reason of such hreach, and i)revent the insurers from setting up the same as a defence in a sub-eijuent .suit for loss. (Il»'>ii.) Wchstor (I. Phnjnlx In.i. (.'o., 3(5 Wia. (37; Greoulicld v. Mass. Mut. Lifi; lii-i. ('o., 47 iV. Y. 4?fl; Horingor v. Ktnpirt' Mil, t.ifu Im. Co., 2 N. Y. ;S. (J. (iiO j HiU v. Pof>iile'9 Milt. Fin.' Iiis. Co , G Gniy Miisi. 185; 7 id. 201. tatU) ll'jll* 'i'he forfeiture, by reason of a kn.nwih m.isrepresen- r concealuien ■•^y by iug a new premium, olfering tn nibuild umler a chiuse authoriz- ing tiiat nude of payment, or by renewal of the poli(;y. Bat it ha.s been held that it wu.s no ■waiver of a forfeiture, occurring ufler the date of tln! policy, lo collect a jireiniinu note actually oarne( 4 liis. (/iiw Jour. 770; (^nrroU « . Charter Oak Ins. Co., 10 fiarb. V. Y 292; Railihoni r. City Kire Ins. (Jo., 31 Couii. i'.n ; Tihbols ". Iu3. (Jo ,3 Vlt'n Mass. 509 ; Slieldon '•. .-Vtlaotic F. 1. Co.. 2i' V. Y. 117; Kr.ic.t/ v. Niaj;; Uist. M. F. I. Co , IGU. C.C. P. i:U. Per Contra: Gilbert c. N. Am. F.I. Co., 23 Wend, i.i ; N,vly r. Fire Ins. Co., 7 Hill N. Y. 40 ; .Mei/.'nheiin(!r v. Cotilinenlal Fire In.t. Oo., :'< J. A; tip. N. Y. 2.i'j; I'jlliott I'. liycoininK Co. Itis. (."o., (i"' Pa. 8i. 22: Hc./tt / . Niag. .')i8t. M. F. I. (,'0., 25 U. C. i^. U. at); Mulvu/w. U. .c Dist. Mut. F, L. Uo.,a5 U. C. Q. li. 424. 4-iO "SVAP'ER. II (SO. A duly authorized agent of tho company may waive fort'tMtiires, (itc, the same as tlie eomiiuny. Universal F. f. Uo. )'. Weiss Bros., S. C. Pn. ; III. F. I. Co. c. StHiiton, .'■)7 111. ^54 ; li Ins. Law Jour. 708; Olmpman w. Lancaster Ins. Co., 13 L. C. J. 491 ; We^t. Assnr. Co. r. Alwell. 2 L. C. ,J. 181 , Lauipkin /■. West. Assiir. Co., 13 I,'. C. Cj, Ji. 361 : i V. 0. L. J. 20. mil. A ;4(!nt cannot waive. Ratlibonc r. City Fire In^. Co., HI Conn. 131 ; Peoria F. A M: Ins Co. v. Hall, 12 Mich. 2i''J; Lindsay c. Xiiifr. I'isi. .M I. Co., 2(5 U. C. Q. H. :i2ii ; Scoit o. ^ime. ■>'■> V. C Q. B. 2C, 117; Jchniitoii r. .Same, 13 V. C. C. P. 333, Lumpkin i>. West. .\,.^iar. Co., 13 U. C- Q. B. 237 (unik'r stal). lUiti. Xa a general rule, parol evidence of a waiver is held inaiinii.'?,l* t'ustoni or jironf tliat matters in question as to extra liazatdnus occupation forhiddi'u hy the terms oi' the policy heinga neces.sary part of the huisin-'^s (iI3!> et .seq.) will not avuil a.s a waiver of the rdndiriou.^ nf the policy, or act as an osti'jipel. Pittsloirg Ins. (.'o. !'. Fra/.or, S. C Pa., U Ins. L.iw Joiir. .'J12 ; Herman /, Adriatic Ins. Co., .V. V, C. A , in Ins. Law Jour. 743 ; Ins. Co. v. Lenbeine, Pa. S. C., 89 Pcnn St. 407 ; Bi.'ininpliani F. I. Co. v. Kaacfrher, S. C. Pa., 83 Penn . Sta. ti4 ; (trace ik .Vm. Cent. Iij.-*. ( o., U. S. S. C. on ajipeal, I.i Ins. Law Juur. 127; Steitibiuli r. Relief Ins. Co., U. S. S. C., ) Ins. Law Jour. 1.^8; Lewis u. PLipnix Mul. Life In.-. Co., Suj). C. Error, Conn., ti Ins. Law .Four. 820. WAIVER. 441 11<»5. Coiiiitcrsigniiig of the policy by the agent when rcciui- site by the turnis of the iiistruraeut may be waived ; for aulliori- tie.s see ( I <»<»)• ll<>(». Noil -payment of premiura : Where insurers phiad non-payment of premium as bar to recovery, and in a supph;- meiitary answer allege misrepresentation and concealment, plea of non-jiayment of premium is waived. (Michael v. JNIut. Ins. Co. of Nashville, Tcnn., 10 La. An. 737.) 11<»7« Notice of intention to rebuild or repair damaged pre- mises IS a waiver of defense based upon misiepreseniatiou by the assured in obtaining tlie poHcy, if the fact of such misre])re- seutation v/as l. A geiu^ral agent of a eomi>any sent a policy Ity mail to au applicant for insurance, with a statement that the premium charged was Inglier than usual, and saying : " Sliould y(ni decline the policy please return ; if you retain it, please send me thi^ pre- uiiuia." Held: a waiver of the condition recpiiring prepayment of the premium, (hhcddon v. Atlantic Ins. Co., 26 N. Y, 117.) 1170. The non- waiver clause of the [lolicy (llfll) refers to those contlitious and provisions of the policy which enter into and fill in a [i.ii't of the contract of insurance, and are esst-ntial to uiake it a binding contract between the parties, and which are properly designated as co)ulifionf<, and not to thuse stipula- tions which are to be performed after a loss, such its giving no- tice and furnishing preliminary proofs. (Franklin Fire; Ins. Co. (.'. Chicago Ice Co., 36 Md. 102.) The object nf the condition is •"r^mm^ 442 LIMITATION. to jmni'iit agftiil.s from \vai\'int( any of thest* conditions witliout a wriLlen iii'lor.senieul to that ollect u[ion the iiistruiiu;iit itself. Being ail integral part of the contract it becomes equally liinding with the, others. Pilney v. Glea Falls Ins. Co., 01 Biirb. N. Y. y3J : 5 Tm. Law Jouf. 3K4, iOl, 562, 6(i;i, 5ii9, '■.,')l, 731 ; 6 Id. ISi ; Coiitiiicutal Um. (Jo. o. Riickmnn, S. C. 111., 26 l!liifHi;a U-gal Svw>> 22:>. ]ITI« Where objeotioii.s arc made to claims under the poli- cies of the company, on any point therein, the addition of the folluwiuL,' will prevent a waiver uf any vlhcr rights that may be subseijiiently discovered. " Reserving all objections to a re- covery in any form, and without intendhirf to lvalue any right.s under the jiolicy." Citizitiis Ins. Co. (;. Doll, 35 .Md. 80; 3 Gill. Md. HO. See uIbo Waiver of roxi'KAr.MEVT (0;{5). 'V J.,i.MiTATio.v C'l^vrsK (1 185 cf sc.i/.). •• Ma(;i.stk,\tk'.s Ckktu'ioatk (liKJS). " NoTicic OF AniiiTiovAL [nsi'ka.nck (908 d .vt-y.). NoTlTK (pF Liiss (J.0-«{ •:/ .). PllKIIMlVAllV PrOOF.S (IS78 '/ SCI.). Voil' OK VoiI)AH(,K F(.l,li:iKS (lOOo). .AhlliliATlON Cl.ALSK (1083). ■ ( « , ''a ye.ir and a d.'iy ; " Wesk. Ins. 33; lUcon'i Ahridjil. f.08 : 21) Vic. c. 37, § 3 ; 30 Vic. c. 21, scIkmI. ; 40 Vic. c. 7, sched. .\.; Stat «'ond. Ont., J 22 IITifi* Tlii.s clau.'^e was introduced into thi> I 'iiited States policies in LS'iG ; na above cited, it is innch more extended than any iieretofore in tise, and upon which most of the rulings inthia T.IMlTATIOJf. 443 ooiinoction hnvo been made. Tt, also ombraccs un entirely i«nv stipulntioti, viz. : " until after an avjard shall lutvi' been obtained fixin [I the amount of such claim in the maunrraboce provided." "In the manner al)OV(; provided" is indrlinito where so many provisions have been made. If it mean that tho amount of tlie loss shall be first ascertained hy an adjustment, as provided for by the conditions of the pfjlicy, the stipulation is lawf'd, and must be complied with. (IHIO.) Duke of Ueaufon i<. NeiiUl, 01. k F. itS, 280: Jom's v. Jubervillfi, 2 Ves. jr. H; 3 Benn. F. I. Gases Ij 4 Ins. Law Jour. 88, 709, 917; 5 id. .')47, fi^H, Hill ; 7 hi. 52(i: H id. 1)05; Upton r. Tiibbh^cock, [I. S. S. (!., n Ins. l^aw Jour. !>7 ; Dray v. llarUoid In.^. Co., 1 Blatcbf. C. C. U. S. 2S0 ; Fullam /'. N. V. Ins. Co., 7 Ciiiy Gl ; 15rown v. Rogpr VVillianis Ins. Co., 5 R. I. ;«t4 ; 7 id. 301 ; Hickcy f. Aiiclior Ins. Co., 18 I' . C. Q. It. 41:5; Lanipkin ". Wost. Assurance Co., 13 D. C. Q. B. 3GI ; Tallman v. Fire Ind. Co., ^7 (J. C. Q. B. lOO^ Unuly v. Wi'st. Assiir Co., 17 U. C. C. P. 507; Hrowii v. Firo Ins. Co., .:t (in. 97 ; M Ooiin. 518; 30N. Y. 546; id. 136; 13 Midi. 202; 25 HI. 4(i6 ; May Ins. 5ti7, § 404, 583 § 478. 1171. Zn7ii^f^('oJi8 established by statute difler in their nature and elfect from those agreed upon by contract. ^\\ ca.ses of Umitations l)y fttufatc, the law imposes the disability ; l.iut, in castas of limitation Inj ayrecnient, the terms of the eontract impose the disability. Nor does tho same evil consequently folLiv fn)iu reiudving tlio absolute bar of the confnict, tliat would from removing abstjlutcdy the bar of the statute ; for M'hen tlie bar of the contract is removed, there still remains the bar of the i^iatutc, and tliough plaintilT may show, hy his disabi- lity to sue, a suthcient answer to the time provided by the con- tract, he must still bring his suit will an the reasonable time i\\M\\)y i\Q statxde of limitations. Il77i, Hdlii, by the Suprenn' Court of Michigan : — "•'Thiti. if tiie condition wa^j valid at ail, it wus valid as acontrael only ; and that the liniil ti.ved i'V it, mit^t, upon tlie general {.irini.'iplos j^iivfrning con t nil t.^, be iiiDre He.xitile in il.s nature than one fixed by titatute, ami be liable to be defeated oi e.ttended by any net of the inHiirer wliieli prevents action from bein^' bronj^nt within tho pre.-cribrd lime." (Pe-iria F. &, M. Ins. r... r. lle.ll, 12 Mieb. 202.) 1 1 7«. < In the otiier hand, Justice Field. C. G. U. S. J )i,st. Mo., .speaking of the conditions of liw.itation (7 Wall. 830), .says : "The (joiitriiet of inrJuranco is a vohintaiy one, and tlie in^-nrerM have a right lo de.-^ignatc the ternis^ uijou wbioiithey will be rospoiirtible tVjr losses," wsm mmmm 444 LIMITATION. lie coiitinupp : " A .stipulation in a policy to refer all diuputes t<:i aibitroiinn slHiidsi ii|i()„ a (litlereiit looting : Tfui' is hi'KI it)V)ili(l bcCJiune it is mi attempt to oust ilie courts ot juris'liction, by excluding tlio assured tronv all re.'^ort to tliern tor liis remedy- " IViin is a very ditrernit, iiiatier from prescribing a jjeriod witliMi which Mw\\ re.-iort shall Ix- had. The o.indition of tin- policy in this ca.>^fi docs not inicriere vvilli ilu' loilliority of tin; courts ; it simply exacts promptitude on the part ol the .a.-sured in tlu- prosecution of his le;.;al remedies, in case loss is sustained, respect itii.^ which ii controver>y arises between the parties." And lie t'urtlur adds ; '' We have nu doubt of its validity." 1177. JIki.d iilsu in Miiss;u>lnis(?ttM, Illiodo I.^lund, Comiec- tii III, New \'.iik, (n'orojn, ri;iiiisylv;uiiti„ ainl luwa : " That such C'lnditiiiii \v;m v;ili(i ami liiieliiio' iiimii tlu; itistired, and operates as an LilTt'ctual bar evi.'rywlioie." Cray v. H^irttbni Fire Ins. Co., I Dlatchf (J. S. C. C. Z.SO ; .10 V. Y 13G, 54G ; 4.3 N. H. I'lil : 31 Conn. .iTH ; and Hiilborities ciied mipra. II7.S. Whi.'re the policy .stiptilates, " that all claims under tlii.s p(dicy are haricd imlfss prosecitttd within ono year from, datf of lofiii : " — IIklf', in Texas : — That s»ich a condition in a policy of m.-urance is not ngain.st public 1" nor is it (nerjred in tlie ireiieral limitation laws of the state. And tliai " the failure to bring tlie action within a year frinn the. date of the loiis is an elfectiial liar to all actions on the iK jHilicy. Uki.I) That the word 2)rii!if'ni.'i:d is eijuivalent to wuitor action." (Merch'ts. Mat. Ins. Co. i\ La- crrii\, > Te.xa.- 2:59.) le 1I71K Where the policy contained a jn'ovision that tl aiiiuiiiit ui lo.s.s shall be paid a'lxly dny s after due notice and jmnifi fth(d/ havti bceh made by the assured, and received at the (ittice of tlie coiiip.uiy ; also a provision that iin suit or action Sll.'ll be siistaiin d iinliss cm luaeiiced within si.N lurmths uoxt (//'/('■ df l<)! (1 11/ •>/ the til':. k>t at the tc if inn I if i ha sij tij da'/.f when the lo.^.f hi )jii/(ililr. In the Mayor of New York e. Hamilton Insurance ('oiufiany ('ilt \. Y-, 10 Hos. -k"i>, ihe Conclusion is reached that it was tiie intention, as is the fair eon-itruction of the policy, ihatlhe twelve montiis limitatioti shuiild cii'iiiifiicr til run tit the ixpirnlinn of sixty daijx after tlie notu. and ))roofH ol I OSS were received at I be defendant's oflice — tvvelve moiitlis alter il le ciinse of (uti'iii 'lecrunl.' Killin.« *'. Putnam Fire fns. Co., 28 Wis. 42' Ketcli Ins. Co.. ) Allen N. P, 13(1 f) las. Law .Jour. 425, ? 2fl ; I id. 811, t i^i. 1 K, , .Stout ». City F. I. C N'ew Haven, \2 lona 371 ; IH luwa 3t)4 ; Loiighurst v. Fire Ina. Co., U. S. D. C, .\. D. lov.a, Oct., IHiil ; Klias v, Ins. Co., 3 Iowa, 19 Cent. Law .Jour. 377 j Levy V. Im. Co., U. S. C. C. D. La., U Ins. Law Jour. 113. LIMITATION. 445 ■1 117!>ii. Oil the other liand, wliere the cdinlitions of tho iinlicy wen; the SiUin' an those hisl above citeil (II71>). the Su|)ie.iiu! Court of Illinois, June, \\HjS, usk : '• Wln'ii (liii llir lij-is occur ! M.uiif'otly ul tlic time llic liii- i|i-i|r(i\ i>.| the property. In wlml ci.nsisleil the lo.--' V Obviuiir'ly the ilf>lnntii>ii ot llie biiililiii;^ by lire. \V (.■ iirc wli'illy uiialile ti.) i;uin',i:i\e tliai laimiiaj^e coulil lirtvo lii'di ii^iod tliai cv.mlil iia^e reiuKrtnl tin riK'uniiij; plaiiior. • • It, is, liowL'M'iv in.si.sleil that tin' cluu-o in liie policy, that tlie los.^ wa-i to l,e p.iid fiixty (lays alter due notice ami proof of \\w same .>iliould lie iiiade iiy the a-i.-^ured and received at tin olli.:e ot' the company, iiniitrt and i-urlails tlie after- iiifierted conditioti pioiiiliitinj; tlie liriti^m^r ati action more than twelvo montlis after the los.-! should occur. We are unable to ()ercoive that it con- trols tliiH comlitioii. Jt either Iia.** that ellect it W(.)uld seein that ilie latter control.-* the former, 'riie two elausejj, con-idered to;^etlier. otiviously [ird- vide that the company .shall have sixty days within which to make payment after notice and proof of loss; hut in \\ij event shrmid a suit (jr aclion be coin:iK'rieed after the e.\[iirHtion o'( tw(-lve moiiths fr'ini tlie dale iif the lire pro luciiig the los,-j. Any i her meaniuj; ailae'iu-d to the lan^ruavie, it .seems to us, would he stranii'^l, iiuroa-ionahle, and in direct \ iolation of tnr plain iiitenlion of the parties clearly expressed." Johnsi.u V. Ihnnhdl.lt Ins. Co., .S. (-. 111. \l. III. 5;;i, 8 In.s Law Jour. (517 ; Upton 1'. Tribblecock, 11. S. S. C ."j Iuji. Law .Jour. 97; .MeicaiUile In.-;. Co, c. Lacroix, 2;j Tex. 'J49 ; Llarraway v. Soa. ('o., 20 La. An. 298 ; Quiiin r. Capital Ins. tyO., S. 0. luwa, 10 las. Law Jour. 9H0. 1I.SO. Where ii by-law of tiie company reqiiir-!*; suit (o bo brouoht within a .specifietl turn' ami 'in a particular connh/ ,■ Hki.o: BindiiiL' as tu the time, but iu%alil as to I he locality wliere suit was to be broui;hi. Ameabiiry v. V. \. * -o., Gray Mass. 500 ; Nute v. Ina. Co., Gray Mass. I7i. IISI. All aii,iveiiieiii in a policy of iiLsurance ':xecitte(l l»y a foreign company (of another .slate), that the iiit'uved waucs the right to bring an action upon the jiolicy except in the loiiits of the state iacorpitrating such (company, is voi'.l, both as tigain.st public policy and the statute of the State (Mispunri) relaling t'» foreign insurance companies. (Richard v. ^Manhattan lafe Ins. Co., 31 Mo. 518.) II.S!i. liegulations exist in .some sbxtcs. that where a Jir,st suit is abated, and a seciiiul suit is brtaight within the prescribed time, the statute of limitations shall cease to run froui the date of thi' tir.^t suit. Hid cliuiKitii.!, abiiiiilons or discontiuiins it, tho ijiti.!nn|)i'' a sliall bo coiisidtjnni as having tiovor hii})|icneil." lliildirHbiirger r lliuiford Ins. ilo., 7 Wiill. \J. S. 38(1; OT.ivuglilin r. Dniuii OoiiH-al Lifi! Ins. Co., II. H. C. C, Dist. Mo., Mar., \Wi ; Artluir v. lionit'silert.i liij. ("().. 78 V. \' . 460. IIMI. T\u) Sliit(( (if li)k Ins. Co., o McLean C. C, U. 8. 461.) In Afaine, the law makes lindlatiuns le.ss than two years invalid. Se( Ih'Mwn >'. RoLjer Williani.s Tns. Co., 7 li. I. 301, as to the right ol' States to imipoi't. intn c.intrai't,:-! qualifying terms, which the eoini'aiues have not seen lit to adu[.t. \VAJ\ i;i!. llSfi. Hen; the authorities are .it issue also; some ridings of the courts <1( ciding that there can be no -j^niywof t!ii.s condition ; others, that it may Ik; waived — tlu' weightof the authority being with the !;ilt(M', however. (II5I.) ll.'^fJ. Hkli', ill Ciinada and New Urun.swick ; — " That >1 iMiiM imt \iO iidinai. L.a|w<' o( time c.vtiiijrui.-licil the li;tl>ilily of till' iii^'iii.'i'-, wliii.'l. cutiM iKit he revived by ir'Uiwr ; Imi tlicv iniLrlu dis- ju'ii'ii:- wiili tiie ceii'litiim liy it '' (ici'il.'" (Ki'tclmiii r. fii'. (.o., I AlloiiN. B. 1.U.1 1 IS7. Hii i> fil-^i' : " riiut il C.11IS0 of iiclinii lUhlci tliii c..iii, Co., 1! Pluiml. J 'a. 230.) H.S«K II Ki 1 1, in Illinois:-- " That ilic i'iinli(ioi) was valiil ami ria.-'onal)k', tlioiigli there mijiht be a if'iinr by the coiiilm;! I'l'lhe coiniHiiiy." (I'eoria F. JcM. lu.-. Co. v. While hall, 2j lil. 4tiii. LIMITATION. 447 1I1MK IlKMi. m New York :- Tliiil " tlio ci^nditioii irt to 1(0 Hlrictly ooristnicil. That Hli^lit fvidfiicf of iC((/i'('r, «M in (itlit'i- I'H-ie- of forfeiiun". w ill br -iiilticifiit tn lUi'i'iit us a|ipii- Cfttion. ' A jxisitivc act of lli'' coiniuinv, iritciiiii.il lo iinliicc iio'^l|ioii<'iiii'iil,' is not iicirH.fc.iry. The court, eHfH'ciallv to uiil a tDrfeiliire, ivihI a vpry harsii one li'Oi will not Hcriitinizo very closely ilic M'nlict of a jury on such ft jMiiiit i nor till.' ruliiiji.-of tliojuiluic ut tlir iriul, unions very flearly t rronoouH." RiiUey i. Mina Ins. Co., iV Uaib. N. Y. U^'i ; .'iO <■/. 13<; | 5 Ins. Law Jour. 88. llflOii- 'rii'- ]">lii y pi'ovicK'il thill- iiri suit shouM 1h' .^iiistiiined anlc8.s I'loup;!)! w itliiu sIn nicntlis afU;i' tho los.s. ffcli/. "the jury were loopcvly iu.stiiirXcd r.lml if tlio iii.surcd Lleluyod liriug- inosuit until iit'tov the c. \]ii ratio ti ol xix moutlis, in cuii.seciiuuioo of imliiceui'.^nt.s lif.ld out by the ciiiii])uriy's ollicters, ('.iUisiii!.r hiiii to believe tliat the loss would be |i;iiil without suit, I bat would ojii.rate to reiiUAe tlie Inir ereateil by thi> condition of the |iolicy.'' Ripley '. Asfor Ins. Co., 17 How. Pr. 444 ; (inmt u. i.ox. Ins. Co.. o Ind. 23, 2 IiKS. Law Jour. U< '• Amea e lus 'o., 14 N. V. 'dXi ; Miokoy r. Ina. Co., 3r> Iowa 174; Bluett r.lna. (;<).,38 Wis. 472 ; .Mann. Kfceivcr ". .Meyer, S. C. HI., .s.-pt., I,s79. UNUEK RE-INSUUANOE. I l!>l. Wliere loss oceurred in November, 18. 14, and was paid by ibe urij^inal iii.stirers, August 9, 1855, who brought suit aoain.'^t the re-in.garers, Auii;u,^t 8, 1850. l]i:i,i) : Tliiit the losn or ilariiuge refcrr was the injury to ilie |iropcil\ ■il Ui ih tho re insiiv.ihi'e policy ai;il no! tlii' paytnent of (Ih'1i).«.< I\v the oriffiiial insurers, and that the action was loo late. (Provincial Jii.s- Co, ». .Eoia In.s. Co., 16 U. C. Q M. ir).) SUSPENSION OF CONTKACT. Illi:2> A .state of war yuspends all eontracts in cxi.stence between eiti2t!n,s of the resjiective belligerents at t,he time the war commences, and all contracts made through its existtuice iire void. As the doctrine is ex])ressed by .Knglish jurists, there cannot exist at the same time a w.ir for arms and a [leaee for commerce, the principle being that the belligerent condition places every individual of th(! respective governments, as well as tlie government themselves, in a state of hostility. Hki.I) : That th\A doctriro^ applies to our late civil war. That, upon the termination of the war, the reineiiy u|K>n ohlii^ations contracted before the war iH revived.. 'VvUi and alter tlie dale of micli termination : au'l .•"ill suits 448 iiMir.vnoN. tnii Ht 1)1' liVdiiclit witliiii ttio tiiiu' !iii)!t(>il liy (lu' |)iilicy, cxcliiHive <>r fl le roil I'luniKl ri'c'.iivfr. wliolf piTKxl uf iliKikliilily, (ir til Mm. IVn. Life Inn. Co. v. Ilillyurd 't kI , N J. K ,t A., 4 hia. Lmv Jour 127 ; 15 Marlwui \. V. -lU. II«;i. llKLl), by the U. S. .S. C, .Mii.l.Klt, ,).:— " Wlicrc nil at'tiijii wa.« livoiijfht on an iiiHiininci' policy whieli i'ihiIuiih'iI a claiiMo tliHl iioaetion hIuioI'I lie iiiaintaiiu-ii unleHR broiiglil wiiliin twi'lvo iiiDiitlin iij'icr the loss ocriirn.it — liial tlic |i(M'iiii| of twelve nioiillin wliicli ilie C'uiilriict iilloneil llie pluiiitid' (ur lii'iiiginn 'li"* ''i"' '''"'^ ""'■ open :u;.i (•.vpanil it>elt' ■>o a- 111 receive williin it three or lidir year-, •if Irjriiljiy cre.ited \<\ (lie war, aiel tlieii cloMO tii;retlier at, eaeli eri'l ot lliat peru.il so as to comiilete il.self a.-. Ilii)iij.di llie war liuil never oi;(.iii red.'' " 1 lial liie tliiie of liiiiitiiliou liy .i/.dlul'' inay lie mo eoiiipuled, lull tli'-ii' tlie law iiiipu-e- the liiiiitalioii, and the law imposes the ilisahility ; liiil iii thin case tin' det'eiidani imposed its (uti, special .md liai'd provisions on tlial siiliject. • • • And (he e eirl has no riv'lit, as in the e,a-r of a .\'fnliiti , to construe it into a niiiiilier of days epial to twelve iiioiilhs, to be made up to the days m a [teriud of live year.s, in which the plaintiH' could lawfully have Commenced his siiii.'' " We have no doubt that the disability to pue iin|ToHe(.i iin plaintilV by the war relieves him from the conseipiences o( failure to brinj.; -■nil within twelve inonilis at'U'r the los-, ln-ijtm'i: it rc.iuh ri'fl n ii'in/iliaiio: ivilfi thntrini- diiio iiiijiix.iU'h , iini\ removes the presumpuon ^111(^11 the coiih'act says shall lie conclusive iiLjainst the validii v of the plaintitPs claim. That part of the (wiitraii, therefore, jirei-eiil.-- no bar tu plainiilf"- n^ht toree.o\er." (iSemnies r. Ins. Co., 1.'! Wall. V. S la-^ ; Kiirnsbaw r. Sun .Mut. Aid Soc., Md. (• Ai.p. ISSs.; II!H. Justice Clifkouo, U. H. C. C. La. (lUiilities tin; Joio- goiiig vSijiiievvhut ; he says :— " Wh, 11. a debt has not been vnnfisiMied rbiriui) '''** ""«', the rule is now lllli^■er-illly acknowledged that the right to i^ue revives uhen peace i.s restored," i.'ic, and as above. IIU5. Hki,i> further, f>y STKONd, J., U. S. C. C. Va. : — "That llie Hlatnte requires .ill of the tune to be deducted 'Inriii;; ivbu'li the suit could not bo prosecuted, by reason of ret7. Cdiufttton q/' the yvi/iV//.— " In cuhc of Lism on prop-rly licll in Iriiii or on ctmimiHuioii, or it tlie iiilercHt oi tlic ii-'^-urcil Im^ other thiin ilio ciiiitv and file uwiicivluii, till' immi'H ol' llu' r»'H|pi'i'tivf owners slmll Ik- ^et tuiili, tii^rctticr with thi'ir ri'w|M'i'tivi' intir\'>trt llici-f in," II08. Hki.d: Tiiiit llic riniil ol tli. in'MViT to lintit llu' extent of liif» risk liv .-nil!!! 11 conililiiiii iH indinpulixlile, ami, nnlc.-H u'oocis "held in trn«l " or "on (ioniniiH.-^ion '' Hre so (ii-i.-lareil when the iiiHiirance ih laken, tlic jwlicy Woulil lie void. Turner v. Stitls, 28 Ala. 420, Wntcri i', Monarrh tns. Oo., 5 ESll. A H. H70j Home Ins (Jo. ti. Favorite, 40 111. 2G;J ; 5 Benn. F. I. Oases li»3 ; Home Ins. Co. V Hallo Warehouae Co., !t3 U. S. ft^T ; (5 I la. Law Jour. ;W i Wood Kire In.i § 73 ; 111 Inn. I,?iw .lour. .M" ; Siter r. Morris, i:i IVnn Ht. 2lv<; Lniuion K. W (',,. ,,. Glyin, I Kll. .t Kll. U.^'i'.J ; lii'*; «, Ilowanl Ins Co., 11 Umh. .\ltt.«. ;i2l; lUlio. [•'. I Co. c, l,om"j-, 20 Md. '.iO , 17 1,, 0. J. isl. II!M>. Tlio condiliuii 1)1 ilu> jiolicy ia lield to include every- thing covered by tlio policy in \vlii( h the iiisiifed ha,s only <(, quail/till iiittreKf, udth iiossrusion, tlie reiniiinder of tlie owimr- shi|) hciiij,' ill other [Mirtie.s— whether under a d'cd of trust, or under liie ii|i))iii!ilnieiit of u cnuit of hiw, or held as a collateral security, ov in material hidd fur otliers to be niiinufactured. In some jiolicie.s the term is exjilaiiied and qualitied as fol- low.s : — " By ' proptrty lield in IriHt ' is inten/icd property held nndor a dee.l of triiHl, ur iiiidi'f tlie appointinent of a couit ol l:i\v, or |)rupi-rty held a.s colla- teral fiecnrily j iii which latter ca.«e thJH company siiall he liahle only to the extent of the interertt of the assnred in such property," Ili:i.i), in Illinois: That the lerin " tntsl " in the cuniiition of the |)olicy m not it.'^ed in that connection in any technical .lense, hut applie.s to onliiiary hailnielilH. 4 Benn. F. I. Cases «, .U+, 725 ; 5 it. 173 ; Story Agy ^ ? Ill, llS; .A'.iwa v. Jack:i()ii, IG B. .Monroe Ky. 212 . Plicumx Ins. i Favorite, 49 111. 259, Hougli v, Peopli''^ Ins. Co., 3G .\ld. :W8, 2 las. Law Jour 3j;t. A "dry trust" of legal titlf of another, would nut prevent recovery. (9 Ins. .Law Jour, 598.) rjSOO. Good-s described in a policy a.s " merchandise held iu trus^t" by warehou.seinen, are go;)ds intrusted to theiu for iv^'i;()- iiiij;. The phrase "held in trust" is to be under.stood in ii,i mercantile sense. Justice Oaklky holds the word "yoods held in ti'ii.d" or " othtiuin nuide I'oi' Ins ' nw ii goods" nuly, tlie\' heint,' of }^re iter vahiLi ihaii the amount of the insurance; iin owner of "trust Sood.s " rdainied a iiortioii ol' the insnraiKie nioni'y i'lnin the insured, tlioiii^'h he was ij^'noranl ol' the ixisteiiee ol' the iusuianee until alter the i luiiii had been made hy the insured tor the loss : — Ili.i n ■ I hi»t, •' iiiiilcr tlic ciri'Minsliinct's, tlic iti.sinril .lanic wiifs ciitiiicil tn llic iii-iirarii'c fiiDiii'V ; aiiil timl lii.i clcclioii Id eldiiii uuly fur t lie leu- df 111- iiuii :.Mim1<, \Mi.'« ( i|MivHi»'lll to an (■U'ctioti tucailfl'l ^o imUi'Ii et the |>i)li(;y as |iiii|Mir'i'il Id II, -me ' l;i.(hIs liclil jti Inii-t, w}iicli In- W'u.s m lilicrly tu .Id." Martini'Mii '■• Kilcliiiif,', I.. R. " (I B. i?.') ; Stillwdl r. .Stiiiilca, 19 N. Y. 4ul, revfisiriK '> Duer S. V i'>3. ii|iun llil.s pdiiit ; 1 t'lirsons. lii.s. M ; Kolti'iibucli ij. .Jiiliu.son. .s<. J. (.'. Mass., l.'i Am l,n\v Ki'v, IH.so. I20t. When tin identical thiiiL,' dtdivered is to he returned, thouyh in an dti'reil fdim, the contract is out;- of haihnent, and the title to the ]iroj>erty is not (dianj^ed , but when there is no ol'ligatioii to leslore the specilii articles, and the receiv(;r is at liberty to return .tnother thiii^' ef etjiial value, he liecomes a debiiir to make tlie return, and the litle to the jaoperty is r.nom SOLD HUT NOT DKMVKItKU 461 chiuip'd, — it is 11 xii1<'. (Wiiflviiia ''. Donmud, 1 V<>\f. A In. 2,') I ; Aii^ull Ins. l:i(l.) Ktorv, Hail, j 4311; To.ld ». Ins. Co., 18 IT. C. C. V. ivi; r, Bwud. F. I. C«4)'rt '■!i>7 , JiiiiDH Kail. (>t, li.'!. I20lii« Wlirn^ .fiilmsdn & Co., coniinissioii iiuircliiiiits, tuok out iii.siuiiiK't' upon ;ill tlit'ir HliM'k, iin'Iii(liiij;» tliiit of (.'nMiplMill & Cm., for the lictirUt uf their coiisij^MimN ; hut owin;.,' to tho fill lure of lUiiiiy of the couiiMiuics iu wliitli the iiwuiiiure wus tnken, I'Ut sixty por cent, was vt'alizctl hy J ix)lu'\ ill liis liHiicls. Tlir iiiMiiraiitu- ii(ioii iIr- ^ooiJM ili.j not n'.stiiut th.' inii- olii ot ilic iiixiiriincc to the ]ini|)iii'tiiry iiitHreni of tin; coiiiigiiecK, hiii. (iptT- ulc(i lo tin; ln'iicflt of till i'oiiciimkmI. If tlic (:oiii|inny in nolvcnl, ut llr lnri< of iti"iiriiiu 0, its Hiili-i'i|iii'iit lFUMlii of Ih'' luilici/ (written.)- -"I'roperty his own ; or held Uitru.-i; or on coiniiii-si,,ii ; or ni'lil hu/ imt tiflirrreil (/tr ' Kolt/ but iint re- »/')('(■(/'), cinimonly known us ' thf: I 'siial (omniLssioii clause.'" (717.) Siler V. Morris, lA .Penn. St. 218, 3 Uiim. F. I. Cases 117 ; E'.irt et ul. r. Ina. Co., f' I'iik Mass. 34, 1 Benn. I'\ I. (^ases 1.^4 ; ISriclita c. N. Y. L^Fiiyetle Ins. Co., 2 Hull N. Y. ;V, .i, 1 Ik'un. F. 1. Cn.^es 2S4 , DcForest r. Fulton Ins. (Jo, 1 Hall N. Y. 84; -Eina Iuh. c. Jackaon, 10 B. .Monroe Ivy. 24J ; Wood Fuv lus. 548, J iZi i KroDk V. lus. Co., 1)1 Penn. «t. :JIK), !» Iiih Law Jour. i<; ; 10 ^./. uf.tj j N. BritLsh A Merc. Ins. Co. t>. Moffult, 7 L. li. C. P. '25 i 41 1,. C. P. I. ; 2', L. T. N. S tJii'i; 20 W. U. 114; Ijiin(^a.sliiro Ins. (Icj. c. Cluipman, 7 L. I{. 47; 13 L. C. J. 3(5, i'rivy Council case, not repoiieU. 402 (iilillil! Mdl.n lIliT N(M' IH'MVI'ltiai. IU07- Till' //*■■'/ III" llii' iiImivc cilcd I'niiililj. n I i'm I'ihiikI niiinn .; lln |>iiiil.tl mI i|iiibli()iin ul llic pnli \. iiml im iiniiicnl ly .stMiiul (111(1 |if'U'l iriil lui Ihi' |iiii|i.i,M' I'lir wlinli il wiii iiilrndi'il — -lll:l( Is. Ic ICilrii'l till' Il,'llilh(\ (it till' nilili'l W I lli'l In 'UK'll loss ;ill(! iliiuiiliM' il ; llii' Itl'dpcil y 111 (III" |iii|ir\ liiilil.T mil', llliiy mistuili , ,mil, \\ 111 II iiiil I'liiiiili r\ nilrij ti\- iiii\ ;iiili.r(( iii'iil n'l'illrii iiiiliir.'K iiii'iil Its clli'rl will III' iliiirl mill ili'iisni-. ,-i4 iiili'inlriL ItfOH. TIm' mrinil rmniil imi is ;i icrithii s< i|iiil.il imi. iji'M^ n':ill\ Kiiiiw n lis I 111' " iisiiiil i't>iiniiissi)ni iliiiis'" Il is cMrn- simIv ml 11 ijiii'i'il ml" Mn' I'mly il iiiririnililc |i.ilirii's, ils ctVi'i't lu'iii;'. (i> i'iiliii'.^i> (lie si'iijic I'f llii pi'liry iiivl i vIimhI ilin Imlnl- '\{\ ,i| lln> iiiuli'i'w I'lli't' Mill' llii' ii'iiituis I'l till' imlviiiiuii, liy IliMlslrlill):', llisliliillrr liiMli lilt' pnliiy ImliliT win' is llMtiS" r,,il)iril mill II till Ire Inr ulllil'' lllliicl' Ills iiwil |iiilir\— lo \\ lniiii.-iiii'Vt'i' iii;i\ iliaui'i' ti> III' ilir uwiii'i' I'l llic |"ii|m'i(\ .it, thi' imic iho lu-is iii.iv lU'i-iir il'JS'JJli. mnl it;, mtnuliii't nui, ill 11;. pirst'Ill I'lirill, illti' till' liiMiy nl' lllC ]iiilli'V. Illii;:t I'lli'rl ll;llly iiullilii's ami roiii fills I lie I'll'ii'l nf (lie ri'strii'livi,' i.'iMiilitiiMi lirsL uhi-w I'iloil. ^i'£'il, i'niiU) |'.2(M>. Willi ;t \ii'w to t'lirllicr illii-ilriilc lliis suliji'il. :mil (ti rll.lMr I 111' ;l ill :i. I'lUfrrt jliili.;iiii'iit n> til iiw iii'rtati's tioiu J>'J:"' lo !!?")l'. IS \ali'l ami I'liti'it'caMc I'dwiTii llu' jiarllrs, iiiilr;,s (lio Inn i>r ui'l iialK ii'i'i'ivi's smui' iioilinii nl' the ^omls, or ^ivcs .sonutliiii;; lii I'l""' 'Ih' litugaiii us •'lU'iii'st, m in jiarl |i:i viiiciit, ; or uiilt'-'is a iiu'ui.iiandiiiH. in wrilini;;, of tho liaryMin br iiimlc, sif^ncil I'V till' l''"ty to li' iliatjM'il tliiTi'willi If I ho |irir(> nLjrci'iI iiiii'U I'l' Ir-^- tliiin ilio aiuoimf Uniili'd l>y llic .'^taliid' of Vrauils, tin- salo is roni]'lcIi''l wjii'ii (lio icrnis olViTril \<\ ilit» vrmlnv lia\i' lu'cii ai'Ci'i'l I !'\ lIu' vciiiloc. \^ \ Ins. Law ,10111'. I r nil, (ir hoimi) lnH'tinn ni' tlni gijoiJH as Hl>;;nlnlc nwnrl', liy (lir, |piii(1iuhiT. •MM Ills I'lKUl unlcHU uunt ; Ulfuli", (:;.■ of >\ \\\c .liiiir. liKMVKUV OK (iOODH, 1t2l4K Tnilir (•nntniclH (if hmIi', wlicrr, liv Omm h i'ium, nulliiii'; iiKHi' iM In Im^ diinn liy IIh' vindm, llic tilif ;.iimm(i-4 I,o Mir vciidi'i', and llic ntrlit In |iaynii'nl. (if i,]u> pncfi \h iicrfucl, in tlio vendor, and lie may rcl.iiii poHHivs' 'on nf vlii- |irci|)i'rty nnlil payniiMil. is made. 'I'lic ili'llnrr;/ must li(3 flic nci m whudi liuili vcmlnr iinil \('nd('i' rnni'iii'. AiiilrKWH r Itiiniiil, II N. V. (5; Wiinj r Hliiuv, 7 Win. I. N V, 40 1 , h ||>'|i V. 'Ii'iirli, ir, Wciwl S. V 2i\ I (Miiik (I. TiickiM', i H<\w\( Ir.V 1 (Jniy r Hhvm, ID N Y ;:Hri ; JStimton w. ,Siiiiiil, ;i Hiindr. N. V. TM) ; I'lHUiIti I'. IIhW'K, U VVcnil, N, V MO. Dr./'nicri/ nmy iic of ///cm' kin'l. : AcTHAl,, ('oNPi ri"\ A!,, and (jiiNS'MtiicriVK iiviiij/ payment, llioridnc, cilJim in cimli i.i- liy iL pinini (•iiiiy niilc, draft, or ].[]' (;," '\\('.liaii).j<', or liy ciiari^inj,} till' same aM a. siinnle Imok di'M, \\lii'ii sindi li; 11 Im'i'II lljC CUH- toiii lii'l.wciin till', nart.ii'.i, i;ii ik1i iIh propi'i'ly may not, iie n jniivcd ul. tlif) timo of flic iriiLsiimmafJon oflJic, rinitrant., or l»y any iit't of the vendor wlicndiy tlie titio to flu jirojiirly i . iti file pun lia.Her, ho that lie nmy imiiiedidtoly remove il.. (Soo aiillhirilien lust. alio"e eihd j ItillS. I'.iit w lier(( 111 'le re!iia.ins ;'onie!liili;L,' yet to li(! do/io to liie pro|.eilv hy I lie Vendor Ipej'ore dejiveiy, i\H weiolijnj^j ('.mint inji, iiu^a.-iiirin;.', nurkinj^ or otiiei wise .^fparat in^ ijie pro- perly sold I'lom otlier .dniilur piopejiy, HO I/ml il ,;iiii, In: ul.ciUir' GOODS SOLD BUT XGT IJELIVERED. fied, the title does not pass from the vendor ; and if, after the contract of sale, and before .snch thing or things remaining to be done are done, the property be injured or destroyed by iire> the loss falls upon the vendor. It is only after such acts, necessary to be done, an^ done, and a delivery, actual or cort- stradive, is made that the title passes to the purchaser. 7 Weud.N. Y. 405; \-> iJ. 221 ; t;l K.ub. 3:!5, in/ra (V2V,i, 1214). It2i:{. Where a party contracted for the purchase' of a lot of cuidrwood, before it was all cut — the wood to be meas- ured and delivered by the chcjipers when they had linislied chopping : — Hkm) : " Tliui the iiio;i'-urpfi)etii was rcijnisite ta the ))a-Hiiii^ ol' llie title; anil that, until siicii nica^iiivnunl, ilie vvooil wax siihjwt to seizure and sale under execution again.-l liie vendor." (Homo Ins. Co. t'. Heidc, G5 111. 111.) Pitnej V. (il('n^• FalLs Ins. Co., (il Barb. N. Y. 3.T) ; iScbindler u. Houbton, 1 N. V. 261; Urguerre c. Luling, 1 Hiltim N. V. 383; 4 Ins. L>iw Jonr. 91, 727_; Crofoot «. liennett, 2 N. Y. 2!t8 ; Klmberly v. I'atchin, I'J X. Y. 330, 335. 121't. AVhere ati article or articles sold are perfectly identilied and p;iid for, a simple stipulation to deliver ihem at a jiartii'iilar place does not prevent tlie title from passing to the purchaser ; and, incase of loss prior to such s[)eciHed de- livery, the loss W(Uild lie the purchaser's, unless such debvery Avas made a condition of the purcha.?e. (Adam v. liiehards, 2 H. Bl. 573 ; Logan v. Alesurier, 6 Moore's P. C. C. 114.) Sands r. Taylor, 5 Johns S. Y. .^t>r> : 2 Kctit. Comm. 49.«, 49!> ; 4 Barn & 0. 481, 41)1 ; 1 Bouv, Inst. ■JS'.t ; Terry r. Wheeler, 25 N. Y. 520, 625. 2. (;ONL>ni(t\.\I. DEI.IVEltY. 121fS. Conditional ddictinj is wlien, by the contract of sale, certain terms or cotnlitions must be tirs' complied with before the title will pass, as wliere upon the sale of an article upon credit, the condition wns that tlie titU; shall not j)a.S3 until the price is paid by the jmrchaser. (OHJi.y Hrower ik Peabody, l.^ N. Y. 121 ; S|iaMlding v. ISrew.mer, .')0 Barb. N. Y. 143; Uenneiinm I'. Sands, 2:. Weud, N Y. 'UO : 15 N. Y. R. 409 ; 1 Pbilipa Ids. 113, § IS9. and HUthorities cited, n. 2 l'il<>. Or, if the sale be made for a promissory nofe or accejdauce, payiible on time, to be furinslicd in u given time GOODS SOI.i' BUT NOT DKLIVERED, m the [jurcliaser, in the rueantirat*. being jH-rniitt^id to take the property ; if such noto i»r acceptaoce be iioi tiiriiishfcd aa agreed, the vendor does nut lose tht title to the property, the delivery being conditional only. Pitney (■ Olcn.s Falls Ins. Co., 4 Ins. Law -lowr, 727, and inithoritiesi cited. l'£17» The riA: atteivU apjii the title, and not n|>on the yjn-;,sHS>*ii.'i whore no specilic agreement upon the subject ex- ists. It 18 an old maxiui : " Eju-i ed periculem cajnn ed di>m- inium nut oommodum." fUi.s is the risk in win mi is the ownership or profit.) 8o also with " (//inholical deliver!/ is whore the title is ill the purchaser, but the property, or some part of it, reniaius in the custody of the vendor after the consummation of ■'•! intract. Such delivery may be periected by passing the Key of the room containing the goods to the jturcluiser; or by marking timber on a wharf ; or by tlie act of separating, weighing, measuring, or counting and setting apart the property so purchased ; or by a deliver) of a jiart t\)r the whole ; or by passing a warrant or warehouse receipt or oixhu' upon a ware- heu.seman or in any other way whereby the contrul, without the custody of the propcMty, is passed. Uttiiu)!! I'. Oaborti, 1 Pick. 176; Olyiihant i'. Baker, 5 Denio X. Y. 37S) . 2 SiHiv. Law Diet., title ''Symbolical Dtdivery." t'IDi. FiMiu the legal coustruction of the contract of sale, by which the act of deliver;/ is to be decided, it is evident that the phrase 'not delivered," in the "usual commission clause," is one of those contradictory ones, like ■'/u•^u/■M" (winch, in a policy, mean 'movables'), and can only mean " goods not taken out of the keeping of the vendor," or m other worils, 'not removed," I'ui the\ are rli'livered the mo- ment the title jiasses. A text of otoiierxhip uytnUl he the liahil itij of the vendor to replace the hmt goods, without insurauoa GOODS SOLD mil' NOT DELIVERKD. l:320. TTiider tlie general (printed) condition of the policy when standing alone and unaffected by any subsequent ivriffm stijiulation, u]ion the sa/f and delivery, actual ov coiistryctive, of insured property, and tluj con'Sf({m:ntjCe8iiat ion of the vendor's hiferest therein, all liability of the insurers thereon ceases im- mediately, as the risk will follow the title unless otherwise specilically agreed. CONTINUOUS LIABILITV AFTER SALE. laai. Hut if "all interest or liaMUiy on the part of the assured herein mimed has )ujt ceased " — a contingency recog- nized by the wording of the condition — if there beany continu- ance of personal liahiUty of the insured, cotuiected with tlie *.'((/(' and delivery of the goods, such as an " agreemetd to dill stand, i)uwrerin respect to certain, risks, for a certain period, under his then subsisting policy, this will constitute a snfficient still suhsistintj iriterest under such policy, and the insurers will be liable." 1 Philips Ins. 112, 5 I'^f* ; Reed y. Cole, 2 Burr. 1512; Pireraen's Ins. Co. y. Powell, 13 B. Monroe Ky. .'-il 1 . 2 Diier Ins. 50, § 5 ; Parsons Contr. 3G7 ; 1 Parnons Ins. 302 ; May f>"t1, n n. 1. 2, 3, and authorities cited infra- (1224.) I22ti. Or, if there be a well-estal)lished usage in any jiar- ticular ti'ade, as in ihe purchase and sale of flour, in the city of New York, where a courtesy of seven days is allowed. 1:22s. Or, as in the city of London, where, by the usual public sale conditions, it is provided that the merchandise sold will l)e considered at the risk of the sellers until the prompt- day (day of settlement), or delivery of the warrant (order on the warehousenien), or day of payment (twenty-one days allowed [3IJ), whichever may tirst hapi)en. In Ixjlh or either of these last-cited cases, the policy would b-.' lialile under the law of usage, as cotUhiued liability for the customary days uf courtesy. (laai.) Martineau v. Ketcliing. L. R., 7 (j. B. 430 ; Riinyon, Ins., bl ed., 118 , 7 Wend, N. V. 405 ; lo /./. 221 ; 0) liarb. ,\. Y. 8;i3 t - * M Sm^ GOODS SOLD nar not delivered. 457 V2ii4, Under the customary clause, covering " and terms .■^clccied !)>• the parties tln'inselvn'*, for tlie cxpros.sion of tiicir meaning, and are nccfcsariiy inserted from de.'^iirn ; tlie printed words iniiv not e.xpress thr intcnUon of the parties; the writlen eertainlv do." (U(K>.) The general principle of law is : — 1st.. If the insured Helirt agreeing to stand tritste'i of tie .•^iihifct for the veii- dee hi" will hold the policy an anch trustee. And, 2ii. Where iho vendor retains (KjHsesnion of the pidicy, an action for the recovery of the loss can only be broiiglit in his name, and the moneys recovered belong to the vendeei nor can the underwriter set up tlie transfer of t/ic jiroperiy «6' -.< defense. 4oS GOdDS SOU) n\r not hei.ivkukd. '' liiH. Liiw Jour 0:.i , May Iiis. H4 ; Wiiud [us- Mlt, iinil dUthorilies Su/.tra. 1221. 122<>. Till! distiuntiuti between the plmises "gn;ids sold iunl not del ire red " nnd "i^oods sold iitid not rmiovcil" is .simply the differouce Ihitwecii an executed and !ui execiitoi'v eoutnicl of sal(\ 'I'lu VMvv trier.-* to a I'ldly executed ,s;ile, \\\u\\x- (he title lias pa8,*('d from the, vendor, and carrying the actnat delivery (ItJII), or where ihe cn.slody. hut not tlie title, reniaiii.s in the vendor a.s and (Ui.^itom of th.' trail.', the oil remained ill the HMivhi.ase vvitli uu n.Kpuis.' to the viiilees, and in jMissessiou of the vendors, and while there was destroyed by fire : — Tlr: '■ " A jiili'v ot' io'^ iraiicc i-- I»l,m1 when -to frauic'l tluit, the insurance sh til i.e iim^ii'irii'^d!/ alttirhed to thi'. prDperti/ lUJiiif tn hi, corrrnl, .«< that awri'SHloe oiouu-s. il'iriiiij the ^•.')\\\\\u\x,w.e o ' the rHk, slmll lie ili'- p.irties r-.illy iji.'.ure.l. (1237.) * * ' Flir;i-iP.-;iies,Tili,ng itrDpei'tyas " Ik-M in ini-it," "on cdininis.^i'iD," aii^l kiii'ire.i tonii-. ure iu'l J ii-i K'^'i'i-iJ '*> 'I"' owner tlie rij;lit ti.) take tlie |)ii;;e nl' llie in-iui-i' I an 1 i'nf')rce the coniiMct. ' (, Waring V. Indemnity In.-i. Co., -to X V. (iOiI.' 1 ins. Law (our. i"4 , 2 id. Tii'J : May tus. ,').;7, iiud autlioriiiea cited , 2 Duer Ins 4:> ; I Parsons Ina. ^02. ItitiOb. I'mler this niliiig the |(olicy follows the good.s specified, and loss, if any, bocomes payabli; to " whooi U )ii'iy CO), rem," at the tini'^ nf tin- loss, as in the marine braniih. (ia»7.) Tiirii'T /J. [j.irrow3, H VVonl. N.V. 141: H irgiier ;.•. Columb. Ins. Oo., irBurb. N. V. 271: Ne^vdoa v. Douglass, 7 H. A ,J, .Ml. 417; Wool Fire Ins.. H 127, :; JO, 282, 520 ; Blodgu-tt l.uvv ol' Firo Im. Contiract, I'j u. * .# OO0D.Sj SOLD BUT NOT DKLIVEIIED. im 1^237 • The following artiori had by iho Nlw \(j)t!C BoA.Kn OF FiUK IInderwriteks, upon the sul)ject; of " groda sold hut not delivered,'" and .siil).se(inenlly adopted by the National Boakd ok Fiue Uxhekwuitkus, sets forth the difH- culty, but fails to j)oint out the remedy : — 1. " UesoheA, That nuTcuiiiile policicf< us prinlO'l (iml onliiiurily tilled u;-, to wit : ' On mac/idinli.te — tlieir own or hi Id by them in tnint, or on com- minxion, or Hold but not delivered,' iirf itilemled to prou-ct, atui do ftillv pro- tect, ilie interest of ownem, coinniifsion inercliaritH nnj fiictor?', wlio liave ailvjiiiced on said nieroliaridise, to the eiilire valiie ot'tlie gouJs they have in charge, not exeeeilinj; the ainouiil iusund iherecin.'' '1. " Z?(;.voZ(vvZ, That when llie party or parties in-iired have ^old and delivered inerchaiidise, and their renponniliililf/ for the prcicrrnlion of the -iome /('(.v ('(;«.9«(i, they cannot, in such e.a.~e, take ilie r('()nireii outli of intere-t in the nicrehuiniise, and coiiseiinently have no ciuiin for any losri thereoti nnder tiie policies ot inruranoe." '.\. " /i'wo/cf(/, Tiiat the re(|iiireinent in fiolicies, tiiat tlie consent of eoin- panies in writinj? must he obtained befure the inierect can pass to cover a fiarty not ori^mally insured, is of 8ound practical value; and that it is diUKjcrouKb) U3e written words it) policies which might be construed into a waiver of well-considered and importiint printed conditionc." 4. "A'r.ii-i/yeii, That claims for loss on merchandise sold, where it is truly set forth in the ' proofs of loss,' that in the sale note or contra<:t of sale, there was m writing the li)llowin'4 words (or others to the same effect) : De- liri'.rot)le, af the option of tkt liuyerr, at anytime within ddi/.i or, if an order on tlie warehouse has been j;iven, and such order wa'< made to read, ' Delivered to A. B. & Co. (the purciiasers) at any time within daija' (or words to that ellect), insurance companies will rect)j:;nize the assured m the iiulicy named a- the owner of the jioods within and np to the time of such 1 mut- ation, providetl the numher of .lays is fixed at the time of sale, and then Krilten in the eontruct or ordnr . and provided further, that the buyer shall not have presenteil his order and had the said nrrchandise placed to liis or other account in the warehouse or store. (52 1» 1^23.) These resolutions suooost the following criticisius as to the elfect of the clause •' >^old bat not deliccred " : — ItiSM. The Jird resolntioii i.s simply a truism, as far as the interest of owners, commission merchants, and factors are concerned; but it i^^'itores the continued liability of the m.T- chant Viuidor (Ititil). wliich is also covered by the vsmd comynlsfdon olause, as ([iioied, as long as he may elect, utider the limitations of the policy as to time, ami always will lie, so long as these words form it jiart (jf the contract. (122Ca«; 460 GOODS SOLD HUT NOT DELIVf:RKn. ItitilK TIk' seco)id reaolntion is another Iniisiii, iiiid loaoa sight nl' tlie fact that tlie liability of the vendoi for tho pre- servation of the property from hjss or damajre, by Hre maij v,ot hare cetistuf, (tftcr (he Siile ami ooiistructivo delivery ; and, in case of loss umler tiie asmd cainmiifioii daum (V■iiH\)^ the insured ceiidor does not have to make oath to any intcrctit in the property, beyond the fact that the goods wore " f(old but not delivered," and that they were so covered in Ids policy. i*-iiHK The tl'ird resolution is another trnism ; but ua- fortnnately, the cnnscnt of the underwriter tvas obtained in adnijKc, when the p(dicy was issued containing that clause. I'ilil. Tie fiiiirih resolution seems unnecessary, nnless thf ciausf referred to is omitted from the policy; for, as it now stanils, it gives unlimited control to the vendoi, wliich, of course, ('iul)ract'.s all of the limitations of this rosolutirm ; all that is needed U) be set forth in the proofs wdl be the fact that such pi'dperty was held and covered by the ]M>licy under the clanse "tioldhut nut delivered" 1t£<{tS. \i [\\Q usutd commlmlon dansa were stricken from the policy entirely, and the substance of the y'o (//' dt tint jicisnns intcmleil lo be iii.sui'i'd ; aiul vvliilc liicy ini^lil iiiclinlc iill conct'iiird in iiilon'st, yot .such i.s tidt its noces-sary cnnstnu'tidn ; it iii;iv 1mi U|)|)lii'i| hi till' Sfjiiiiati' |>iii|i(jrty of rarli as wi'll a.-, to tlio joint jiiii|.cily of all tlh' oU'iKii'.s. Siiiiii jiolioics iUV upcii to exiilanatioii hy (.'Xtiin.-^io i>\ iilfncu. 'Co iciidov a contrart; payabln " lo hain'r" valid, its a cun- tiaci "f indfiniiily, it i.s ncdc.s.sary to prove lliat ''the bciirrr" is not. nieri'ly tln' liohh'r of tho policy, l)iit tliat lie liad an interest at tim tinit' of llii' lo.s.s in !lu' |iropi'i'ly covi'ied by it. Ciillt't r. I'aciHc In.f. Co., 1 l^iiiiu' <'. C. 594, I W.-nd. N. Y. fifil ; s. r. 54 id. 12;J7. Ml. 1>'KH Mv tl If ll-l' III .'ItlltT .ij'lll'' mil tciiis ' III the. />,' 11' ml (icci'iiii/ el' ir'ioin it iH'li/ '•unctni ii.f tin', limn "fihe /n.ty,' nr * on ii'-<')iiiit of tlif- uinii'ix,' ;x [njlii'v iiiuv tii' su fi-iiiiii'il liiiit ilie iii^iiraiicc eliull lif iu.-t'iiiiiHlily altiiclu'il t > tiu! iiruiitTty inttiiilcii to be covcri'il, .so that ,-u(M!cHHi\f' owner.-* ^liHll, iliirai;.' tin' ciiiiliiiiiuiici' ol tlu' ii-ik, Iiihuimc iij mill tliepartic' rciilly in.suri'.l.' (1221, 1220.) 2 l>iiiT Ins. 50; Siivrtgo <■. Ins. Co., S. Y. (,'. A . 2 \aA. Law .lour. 7i!8. Uader tlie.se provi.siuii.s the policy is u.s.si^'na.l)le with tho .sub- ject, without consent of the umleiwriters being indorsed theieon. Iliil.H. Xone of the-e '' 'jnu'iul "hh'iIs" arc coninion in lire policies, except "for vhom it laaij conrera;" they more legitimately belong,' to m;iriii(; insurance. I)el-ore:>t r. Filtoii liia. Co., 1 Hull N. Y. 112 . Alliaiicp Mur. Ins. Co. i;. La. .Statb ItH. Co., y La. II. 12:S!K When a |iolit\y is procun^d liy the insured I'oi their own protection, and in respect to the property in whicli they claim an ownershiji, they may, nevt-r the loss, recover theieon, though it be expressed to be "for orcouni of ■ivhoni it ma.ij concern." .# ■\VII(iM ri MVV CON I TUN. 403 I I i I'^IO. A \Hi\icy iiiiuli' in tin- iiaiiic of a iiiirtioiilar in:r.iuii "/((*• vhoin. if indfi ronrrrn," or with iiiiy otliur eiiuiviilciit duller will 111' apiilicd rn the inU'roHt ct tlic piiriy mi' |.urtie,s 07il'i for KhiuH it ('.s i)il(;n(leil liy tlin person wiio I'tlectM or onli'iH it, ifsiK.'li piirty or iiiiitic.s mIiuII luive juitlioiizod its l)i'in«f Iliads' lit'toinliaiid, or sliall .siil)H(M|iifiilly adopt it, t'vmi aflcr a loss inuy have oci'iinisd, and, in niariiic insurance, )>ven after a loHH is known to liini. iTtiO. 7iil-) linl hr oiihi fitv wlumi, the fniitract wof inttnihd ciin ln'cuuii' a, iitiifi/ la it In/ its adDi'tioii. Angtill Ins. 134; 1 Pliilips liig. nu/na ; Hntjlirs Ins. 11 ; 1 Arnonid Ins. ^f), } li»: Tiirnrr >• UiirroWH, 8 Wi'nd. X. Y. 141; Fliui'lcrtt Kin: ]i\:>. :i;8, n. 1. 1211. Wlniii tlio i«oli(;y expresses tiui insiiraneo to ho made liy tlie peiscm iianjed therein, "for liiiiisf//' <( iid irlumi it vuiK coiicn'ii," the words in iheir Hteral interpretation imply 11 joint interest, yet a recovfM-y may iio liud on an averment (if a, .separate and e.xchisive interest in any one of the {larlies for wliom the insuraiictj was intended. Tlie iali'iifion of the party ordering the policy dijitenniiies who are the " concern ed" under a general ilescription, though tiiuse mclii(icr sni)..,.,|;ifnily m due BOason ado|it('d. All olln.i' piT-on^*, llioujrii tliey may equally fall witliiu till' de^onption it! the [iolit'\ , are iioi paitiefl, /*(// iitrpli(;atioii is governed by the i iitntd of the i)arty originally <'ivin<' the order ; if it is not ordered, its application will be to the interest of the party intended by the one alTeoting it, whether for him- IMAGE EVALUATION TEST TARGET (MT-3) k /. O .♦, ,v /^, W- / /. 1.0 I.I _ J 2.5 Ui — '■• Itt 1 22 1.8 1.25 1.4 1.6 ■ -* 6" — ► "/ <^ /: ■/m fi^ A Photographic Sciences Corporation 33 WEST MAIN STREET WEBSTER, NY I4S80 (716) 872-4503 ,\ -b N? % V •V 6^ '^^^^ ^ ^^^ % >^^ -f> r^ k ^ «'?*i f/j 6^ wmm ^^■lW^"^»l|ip(W»>«i^^^'^^^IP^^lB^*" 4«4 WHOM IT MAY CONCKRN. self or uDotlior. But ho may iiitt'iid it for whatsoovor party sliii.ll piDvc to liavo ttu lusinMlde interest iti tlio specitied siil)- JDCt, 111 which i-aso it will be appluMble to the interest of any jKM'soii s(tlMrqiit)ifl ts not inieiuM to bec<»vernl, its necesnary le>;al el^'fct is to cxrlinie him t'rorii all privily in llie coiilraot." I*JI5. A parly expecting a remittance of .specie, o» Itlx o?/macco;<»t<, etlecteil an iii.surance thereon in hi.s own name and in tin; name of " all jvr.-iDUi^ concrrncd," luit with the intoifiou of covering only his own j)roiterLy, Thon>. was a total lo.ss, and he receivetl from th; underwriters the amount of speci) shijtfird on, his account, which wa.s muith less than the siHii iiisuifd. An action was brought by other partie.s who hail shipped specie on board of the same vessel, and svhose intere.st, hiKl.Kiichbeeatheintenlionofthi; inmrrr, would have been }»rotected by his policy, un Icr which tliey sought to recover the amount of their lo3.s, which was within the sum covered by tii ; policy: — Ih.i.i' : Thiit .IS llic^e parlies ha'l not requesteil any iusiiranco to \ie ni'ule on their hi-odhhI. aii 1 llie policy elfecti-ii mk/.* not iiitendud i.j cover their interesi.s, they had no f.laini iituler it. lilts. If the nominal insured be descirib^^l in the policy as aijeiU gen^irallv, without .sj)ecifying for whom, it may be shown who.se interest was intendc'l to Im'. insunnl in the sam? manner as if the policy had contained the goueral wonls " for whom it maif roncern." C. Uasjell IK S K. Mar. Ins. t'o., 4 .Vfiws. 821; Divig v. lloardraan, 12 Ma.«. 80 i Hibbert ". Martin, 1 Oamp. .'•38 ; (Hbson « Winter, 5 Bar. & Ad. 96. rjl7« Where there are divers per.son.s answering the description of the insured, the policy i.s applied to the interest of thi jiarty for whom it was inlendeil, or by whose order it was enectcd, {'.'liureh v. Hubbart, 2 Crunch. 187.) MISCELT.ANEODH (ONHTRUt TIONS. 465 lli IS. Hki.I) : Where one, wiilmui order or aiitlidrity, clFoctpi iiisur- anci', iiiieiuicil partly or wliolly (or uri<)tli«T, in a funn available (u liini, and applicable to his interest, Huf!li other lian an ek-i lion to he a party to hiii'h [jolicy or to decliiie it. But he will become a jiarty thereto aftrr nufice, and, a« Kuch, liable tor thi j)reiiiiiini unless he declinefi to be "o \vithout unneiM'B.'^iiiy delay. C7iJO;, and aulhoriiie.^ there cited. liJ41). llKi.n, alco ; Belore one can reco\eru(Hin ii policy ot' inKurance conlamiiiji; " jetwrnl words," he uiust .-how that his ]ti',puti/ wis iutni'ltd to lif. jiro/r'ctal III/ the polinf , or, that he caiiNeii the iiiHurance to be ettected for \\w I enelit ; or, that it was inhinlcd, at the lime it imu taken, tor his security. I2>>0. \n the itlisciioe ul' pusitivo j-pruof of adoplit.m, tlio fact cuiuiot Im! Hssunic'd. I'i'll. The liurdrn of proving that hif> property was in- tended to h(.' proti!Cted liy tlic poUcy, vests npou him who a.s.S('rt,>j it. Either party may prctve for whom tht; policy was illtfiidcd. AIISCKLLAN-KOUS CONSTRUCTIONS. I2«'5U. Any word or f.xprcsdion will ordinarily be liherally construed as including whatever may be neces.sary to fill up its fidlest and ntost perfect meaning. But oidy those things which by tiee^'ssary implication beli.ng to tlir principal subject, or are incliidod m its descii[itii)n, are covered l)y the polii'.y, under the uiiiNuu iliai "general words are restricted by pauie.ular recitals." {HHn I140.J United (States I'. Auiedy, U Wbeaton U. S. .192; Ins. Hoa. r. Wriu'lt, I Wall. C. H. 4:».; Citt r. Lansintj, 4 (.'amp. 66, ri7 ; SucKly i; Furse, 15 John;-. Oases .\. V 'M2 ; h'in.-ingtou n. Ingiis, 8 East. 2 i.i ; [taker e. Liuilow, J John,-!. Cases \.Y. 'JbH ; N. V. Rqiiitable Ins. Co. e. Lan(?don, tl Wend. N. Y. rt23 ; 1 Beun V. [. Cases 348 , 4 a. 31 , Bigler .'. Oent'l Ina. Va>., 10 Barb. >f. Y. fi.'t.Tj 2 lus. Law Jour 024. 1253. Furs have been htdd us applicable to bears' skins, and those of various other descriptions, chiefly valuable as furs, (Ast'.r V. United States fiis. Co., 7 Cow. N. Y. 202.) 12>>l. A i'ucKKT OF UuPo has been proved to mean one hun- dred |>onnds. (Spicer v. Cooper, 1 Q. H. 42i.) l:^^^. C(mN, in its most coni])reheusive sense, as used in insurance, signifies every sort of gi'ain, as well as peas and beans , but it has been held ^iot to include rice. " C»mi and m 4CC M1.S(;KLLANK0U8 consthuotionh. seed," 'u Kiigli.sli nmriiie iiiHumnw, ure held to einbrace all dcs- crijitions of those iirticles in \slii(li ilic " LjtM-niiiiiitinj^ jM)\v(!r " continucH; Iicikh' Hour mills, griiidiiiL; wheat, ure calkMi "corn" mills. (2 Aruouid Ins. 858; rfirk Itus. Hi'.) t'2!Hi. Insurance covering a "steam saa-mii.i,;" heM to incliidi' not oidy the buildiuLj, hiit nil miV(.'.hini;ry necessary to make it a steuiu t«i\v luill. 3 lus. Law Jour. 350 : 4 nL »U, i&i : Biglor v. Ins. Co., i HixtU. N. Y. 03.'.. In.suraiice on a "STAfu-H m.a.ni!KACT0KY " will indudo all fix- turoH and maohinory noee.s.iary to the proces.s tA starch-making. (lti<{5.) d'euria K. »V M. Ins. Co. v. Lewis. 18 111. To.S.) 12«i7* Where the insurance wa.s upon n'\fiii.r. fitcforj/," and the iuaured notified the agent that he intendeil lo put in rupe machinery; and wa.s infonned hy him that " it wnuhi make no difterence, vh the term ' jiax factortj ' was lnund > iiniiol, lo cuihrace *io|»e-making.'" Hki.d ! 'J'lial the decision of the agent was corn'ct. 1 ins. Law Jour. 7,V.> ; 12 Gray Mass. :a:, , J Hall N. Y. KKi. Uryant r. Fire Ins. Co., S. U. N. Y. -t Benn. F. I. Cases ST ; Wall -•. |!owarii liu. Co.. 14 Barb. N. Y. 3«.3. 1!2r>.S. Insurance upon a ' lumse'' is (i)7; I Honii. K. [. Cases :!T8; Hlaku v. Ins. *o-, 12 Gray .\lus8. 'M,5 : 2 Hall N. Y. 4!«J ; Angell lus. IWa, I 106. A kouHe built upcii lea.sed ground is persoiud property. (ti71H» and authorities there cited. Iliflfk. A policy upon a '' huildhifj in course <>f predion" does not include any material not actually built into the house. EUiuaker'.s Kx'r. o. Franklin F. I. Co., 5 Pa. St. 583 ; Ins Co. V. Stewart, 19 Pa. St. 45 ; 2 IVnu. F. I. Cases 519. liJ."t)a. Ilti.i): Tht'Ownorof i\l/iirt}and upin'r stmy of a buililin;/ must kt" 1 iln' !Ot»f in r('|«nr at ljif> own e,\f)eiise ; and lie cannot rfiCiiver from the owners of ihe Btoiiei* l>elow him any portion uf such e.\pfn.>'e, although tlie repairs wr. in legal contemplation, owners of distiiicl buii.ii'iyK, the one situated otvT tht other MISGK.LLANE0U8 COSSTRl)(niON8. m It200. Ill Uk; Iliiiuhui'L; li'iin of jxilioy " insiiriiiuv iiputi a hiiildiiif,' C()in|)ris('s all piirts tliurtMif ivhick are, not en'^x'"dl,y cxrepted" (i:«o. i;ia-'j.) ItiOI. A ciiliir i-^ iicvtr nilK'fl a stoiy in doscriliing tlie litMj,'lit ; iiiiil tin* Wold " Imildiiij,' " iiuliulo^ it, imiifTcotiMl l»y tlio idea of its hci'^lu ahovt" the fi)iin(liitio!i. (Erwin n. N. Y. ('cut. Ins. Co., 32 N. Y. 213.) Bpiip.lii-t •• Ocean Ins. Oo , 27 .\. H. U!». ltiO:i. A "oo/^Vr, //()i<,st' '■ has been held not o Ic iiij iiiu. (rill?'. Liusing, 4 Camp. 76; Hobby v. Daaa, 17 I3aib. N. Y. 111.) I '£<{:{. A " hiirtt " may iiu'iin a •' farm building ; " Imt " rartn- irig stoi'k " docs nut imiludu growing; orops. I'2(»l. Wliciv cue policy road "on their two-story fraimi papor-iiiill building, owned ami occupied by thorn a.s a paper- mill, * * * ;iin{ on tht;ir fixed and movublo macliinery, (.n;iine and holler, >lial'Liiig, gearing and belting, aH fonlanuiL in the anid mill ; " and a second policy road, "on thoir Iwostory iVame paper mill, with one story atldition, * * * j^,j,i ,,n machinery, and tools and appliance.«i, other tli;iii engine and boilor, used in llu! n):iiiutactuiv, cover ever^tlung pro|ierly beioiigiiig to tlu' "look of" a iM-rk. house, without regard tu tlic jHirtitiilar ownership ufeach and every urti- cIp <'oiitiiint'(i ill or a|j|)nrtcii!tiit to the huildiii)!;, althoii)»li the clausw in ihe policy rcijuirea ' goodH uneomini'^sion ' to he 'iisiireil as such.'" Home Ins. Co. v. Favorite, lU HI. 25'J; .Etna Ins. Co. v. Jacksou, 16 B. Monroe Ky. 250. mm MISCELLANKOim CONfiTRUCTIONS. I24M(< Wli'Mv II ji'ilicy coveretl " lilt lie ami lin>»s. miil tin- product of the siiiiic, ami .salt, conpcni^c. I'oxcs, iiml inticlos wwd III jiiuikiiif: 111 tlmir .stoiu; aiul friiiiie |mi'kiii<,' t.-sliililislimi-iit, sIk'iI anil yanl^ ailjut not dilivcrtHJ ". — Hn.li : '• Tliiit II i|iiuiilily c.t cdiil m llic vunl, wliicl, wu» uIidwh to Ix- :iii ariiilc iieijrHsury luln'u.-.il in ciirryin;.' (in llir piickini; liUHinenH j hiuI ilif 'IManlily en liununulil»' tor llic aiiKiiinr nl' lin-nuf-'s lioiic in tin- (••■liililifli- Iiii'lit, was i'(H 1 r<'i| \i\ lilt' |Hili('y ' Ais.' IIkih: " 'I'liai acjiiaiititx of liiirnls unil licices licltl \\ llic Minmcd on sl.>ia;;(' niTc alsd ccivci'i'il \i\ llic ilaii-c ' ln'M in tni«t.' " (I'liu'ii.x Iiih. C". r I'Hviir;!''. ■!'• III. 'I't'J. anit aiiilmiiiK'- lu^t abuv. ciit'ij.) 124(7. SjM.K iNiiiADK: Tlic nu'iuiiii^ nt .liJH turiii vanes ill colli iiij,' til the kinds nl' liadc lo wliicli it may 1m; apiilii'd ; but in all i'a.>t'8 lliu tfrni is restricted to jieisonal or chatltd |iroj)erty only. Where tlu; poliey coMifd •■ .-tuck in trade as ,i Ixiktr," llr/il : •• The wiirfl.* ' stock in irailc ' iniisl liavf a niorc exlciiiieij Mij^niticii- tion llinii when iipplicil to tlic liiiHiiK'Sf" of a im'r<;liant j and in thin ciii-v, they cuveri'd all the tool:- anil iiii]iU'iiipnlR n«'ce.''.>'ary for curry i up on the bii«iiipnH •»' ami iurt an vvi-ll iih arliclc:-! m Ins lloll^<^'' ( M(ia.liiiij;«T /• Mtcli. K 1. Co., 2 Hall .\. Y. I'XI,) I Hi'iiii. F. [. Cases 'JS.I ; Angdl liis. 1.''.2 ; I I'hilip.t Ins. ^onJWJ. :< WiiK. Oyc. 4'J7, ciiinp; 1' 'J8 Vic. c. Ih. f !». duliiiing" .atock in irude "■ •.'rnziert). PhuRnix III?. Co., ■-' Hannay N. B. 2oO. I24{.H. Where a ]>olicy covered ' >tork in trade, hon.sehold furniture, linen, Wfariiij.' n|i{iarel and ]ihit(>, it wa.s h' Id that tile jioliey ^\a.s intended lu cover hovwhohl linen, or a|ij»iirel, :iii i Hot a stock of linen t;ooda." (Watcborn v. Liini,'ford, 3 ( ',11111,. 4-J2) .Vngeil Ins. 148, § %; Clar} r. Protfclion Ins. Co., 1 Ohio 2:'7 ; 1 Philips Ins. |!2(it>. .'^rncK LN TK.\i»K, ill a .spec i tied bu.siiiess, im ludi'.s tho materials, and every thino needful for carrying on the bii.sines,s. Thus tilt; stoilv iif a "io[)e maker" \va,s held to cover .stock to he niauiifaitured, ami not that mad.' ii^i. (Wall v. Jlovvard lu.s Co., 14 Barb. N. Y. oS3.) I -TO. In tho case of Kraus i^ ("o. *•. Gernuinia, Howard und I'alninore lu>. Cos. (,S. C Md ), covering ujion a pork-jiackin^^ house and coiitent,s, it was held that the phrase ".stock of I MIS'^ELLANKOrS CONSTIinCTKiNs. 469 jMirk " lid not cover l;inl lu casks; imtl tlml "stock of jiro- vision.s " included all incntsand everything n,si'd for fooil, includ- ing siiit and coiidinn'iitH used in ciirinvr the meat ; Ittit did not include " ice " m the coolinp ''.handier. Also that einpty hni'i'ds, V()}ie, etc., were not included in either of the above terms. 1271* " STor'K, UA\V. WliOrr.TIT OU IX PT{o«'KS8;" or tlio (■()iii\aleiit, "niunnfictnrcd, nimiutinfacttiied or jn process of maii- ufuclure " These phinhes are held to incliHle everything neces- sary and usefnl to the ordinary and successful prosecution of the particular hiisiness to which they may be ajiplifd, in any porii-ai of the act and process of inanufactnre. i ItJiSS.) Sprailcy <-. HHrtford Ins. Co., 1 Dil. 0. C. Conn, v.y> : Pe..ria F. A M. Tr,3. Co. ('. Lt'Wis, 18 III .^S't; Crotil))- r. Friinklin F. I. Co., 5 Ortiy .Muss. .'jDJ ; Hume Ins. Co. I'. Favorile,4> " i HJuiini(/iM fit fill " iti- '' Jiuiv," will include any or all materials or ingredients u.sed in the manufacture or pre- pai.ili"n ul till tinished articles, either in their original packages, 01 bixtken lor the piirpose of manufacture ; and if cans, boxes, biinels, cases, etc., are nttedfiil for their economical keepitig ami |ireseivation while so in use, they will also be covered under the term "stock.'" Moiidiuger r. Iu8. Co., 2 Mull N. Y. 400; .Spnaky !•. Hartlbr I fiis. Co., 1 Dil. C. C. Conn. 31)2. I*i71«.*. "Ill process of loamifadure" or "uufinii>hed,^' will include all materials or ingredients already used, and the value of the labor bestowed in the manufacturi) of the articles, in their nidiiiished condition at the time of any loss ; but will not include the utensils or im[)lements of manufacture, nor materials not included in the untinisht^d articles. 470 M18CELLANK0U8 CONSTUUCMoNS. Alijili'by I'. Aiffi' In.-i. (.'o., 2 Iriii. I-iiw Jniir ">».l. ciliiiK I'inilfir i'. In» Co , .18 N. V. :i<;i , Ln I. Iliiniiril Inst. Cn 't (}rH_v '»!».; Mn< niiilicr <■ Shiuc. 7 i/ 257; W'liitniarnh n. Chnr i lak F I. Co., '.' AlknMnHii. .''HI ; Richards r I'rotcctinn Inf. Co , 30 Mn. 37^. ItfT^I. " A7 Crtera, Wliorc a ]iiili(y i-ovorcd ".stock nf watclus, wittcli- tiunniiig.s, lie" JlF.l.h " to inrhide the entire stook of (lie insured, consistinf; of jilatc, silvor-ware, tool?! of trade, and sucli ctluT gfK'ds as form part of siindar ^)toi'k.s in Boston.' (Crosby v. Franklin F. 1. Co., T) Cray xMass. 004; 4 I'.mn V. I. CH,se8 35.) 1274. \'ks8KIM ; InsnraiK.t' ujon a " vessel" in cgiir.se of (on.struotion dues nnt cover niateiials anil other work ]>re- jiand to lie put into i(, ami lyiiitr in the shiji-yard, and in thu sail-loft therein, until actually bnilt into the vessel. (Mason i^v' Lea]. 7' Fiankliu I. I. Co., 12 Cill .<; -I. Md. iCS.) llo.-d /■. Manlmltan F. lub. Co., 11 N. V. i>i'i ; 1! Ouer N. Y. 101 ; Ellmaker i. III.-. Co., .■) liMT Pa. 18:i. I'JTH' Where the insurance covered U]>on " hi.s .stock of tim- ber, including jdaiiks, fiittocks, knees, linVHts, .standanls and .st airing's," it wa^ h.-ld that " the locust cajistans, jiarlly jire- ]«ued for the vessel, which wa.s coveretl by insnrance, wore covered by the policy." (Webb v. Katioiiul F. I. Co., 2 Sandf. N. Y. 41)7.) ;< Brnn. F. 1. I.'. SI ; 1 Pliillps his. U.M, ii. r>. I!!i7<»« Location <>f Prujir.rt)) .• A policy uf insurance npoii machinery, con.sistiiiL', among other item.s, of cards and jiickcrs, "contained in the four story and ba-ii'iiient brick build- ding." Tlu' pickers were in a < me story building of brick, with lliior on a level with the first story, and joining the main i)uild- ing, entering from it through a frame building, and then through a large iron door, " as if going fi'om the hou.st; into a kiichen." There were nu pickers except in (his one .story room Held: " the picker room was apart of the tir.st story in which the pro petty was iii.sured." ■it MIH(Kr>LANEOUH CONHTIU^OTTONS 471 11277. "TliP inMiirnncr agent who of1W;ipil (lit- in«iiram!P, knew titr loo'iliofi of (lie iiickiTH, nriil tlirr«' vpRM no mihri'preitoiiliiiioii lo liiin. The ciiriipiiny wii" IhmiiiiI liy liiH m;tn." I27H, " Till |.rim»ry object wan loiiiBurr the pro|MTty deMcrilxHl, it«pre- c\xv ItK^iiliun wiiH MilionliiDtlc, und, in the iklinrricc of niirtr(>|ireM-tiinlioti uh lo th<' li-K'iition, till proNiiniplioi) \f thiil the piirlien trvalrii thai u» of Ies8 iiii|>iirtHiu'e." 1ti7U. " UiclarationH of the principal agem of the aiinpany to the agent who eilci ti.'il llif itiJiiraiic.e, that ' Ih'.' oumpuiiy woiikl iioi niMirc ihf pickcru,' wuulil liuvf w< idi'ci iii^iiiiiHt tlic wntieii |Kjlicv." (MfiuJoworufl i\ SinnJard F. I. Co., II 1'. r. Smith, (11 Pa. St. III.) Lycoming Ids. C!ak(i-Iii»iifje tij the flout hou.so." (Moadiugor (;. Jn.s. Co., 2 Hull N. V. 4'.M).) lt2MI. A |Mi!icy covering "goods in tlio storr jmrt of tho buililiii^;," uliic.li were siili^i'()\n'nllv rcnutved to tin- second and third stories, the store being oceiniied by fithcr jiurticH at tho time of the loss. Hkld ; "That the goods wiu'o not ^vitlllu Lho 8]iirit ami Itttter of the policy. (5 In.s. Law Jour. 744.) I2H3. I'ndtM' tlie .«!tipiilation tliat 'the hnuxes, buildings, or otiiei' places where guoils are dejiosited and kept, shall bo truly and accurately described." Hkld: "That such condition related to tlie a mytrudion o\' i\\e house, and not to ' the inter- est ' (if 111.' parties iu it." It2.s:t. VVheri' iin indorsement \va.s made upon the pnlicy that " the communication made in the adjoining stores docs not piejudiw this in.surance.' Held: "That thi.H indorsement did not. of itself, extend the insurance over the good.s in the ailjoin- ing .store, though the insured occupied both stores." ItS.HI. Will re a policy covered "/u/"r»'< u re" generally in a liou.se. Hki.D: " To coviw furyi'i hi r<' stored in the oarret and seldom used, as well as that in daily use. (Clarke v. Firi'men's Ins. Co., 18 La. 43L) wm m MJHCKr,LANE0t;8 CONHTKrCTIONH. im^iti. Wht-rt' llio jtolicy nl' u coiniuiMHion aiiy th«> jKilicy, aii'l the in^iirtHi wcn.' liiil)le to tin- cwnor fm tlif uiuotiut til" Ins Idhs, (Hit of fliti ptocet'tls of such iiohcy. (Sitor t'. Morris, 18 IVnn. SI,. iil3, 3 Rt-Mii. F F. CaseH 117.) Itf.Mi. ''Furniture" jiresents sonio jxHiilinritios : In [Mt.s- BCMHJon of hixI in ii8») by this owner, it wonM lie hou.*ifhoM fur- niliiri' ; lint, in .m luiction or other storf for siih', or in (he li.-ul.s of wiirehoiisenien iiti itorayu, it wouM Ui UHirchamli.so, and u ])olii'v i'ov('rin>4 ' nit'rihan»li>»(' on stonij^c " wowM tovcr it. Sue authnrity ht-^t above citt.': " Thf wonls ' containfJ in' when fontui in u poliov to a railiMiKl coiiifmnv, i.in • oar.'" conlaiiK-.l in ' cHrlioiii'e Nn. I. iiml on i'ni»ines. ' ci'iiluined in ' iMiiiine Iiohhc No. 2, wi «■ ilfsigncil to iiinit tlio liiilnlity i>l tlie cuiiipiiiiy to llic time iluriiit; wliich the curs ami ciiginen wtTc acliinllv iti tlu'ir respertive lion-fs, N..-, 1 iiuil 2. That tin- «'T)):in(' having hopii ilaniiiufcl hy lirf, whilo nifikiijg a trip out of tiie huiise No. 2, no ri'coviir} on llic p'jlic^'couM he huil for HiK.h ilitinaj;p." Scvoratiei; c. Continental Ini Oo., 5 Wm. V. S. I.SH; Fitohb'ir? II. H. (Jo n. Ine t'o., 7 (Jrtiy Mass, till, 4 Bvon F. 1. Uit.se8 114 ; I'rov It. R. t o. ,<. Vonkcru In«. Co., 10 U I. 74 ( Leibeostpin v. Tdb. (,'o., .(5 III. MOl ; iSarae v. JExww lus. «'. Iiis. Co.,!'. S C C. .S.JO . Lyons V. Prov Wash Ins. Co., H. C. R. !., 10 lua. Law Jour. 77? ; Wall v. K. Riv. Ins. Co., ;i Held. N. Y. :i70; Hartford Ins. Co. v. Farrish, 73 III. lOC: .Sch.»rtztr ». Ins. Co., 4ii .\M. .iO'i, 3 Ins. Law ,/oiii 72 , Harris p Royal Canadian Ins (l<»., .S liuai lion. COD-'litiiU'il itii i'»ttiri|iti<' . "f t\„- prii|i<-rly ; him) lut tliul ili'HCPi|)lii'n wiiM u |>nrf i>t llir t iiilrui'', i( wuh tieoPMiiirily inutoriiil, fur il Hfl^ till' piiijHTiv l('-i riU'il, unit II" iilli'T, (liiit wa«* incluii'nl in thi ri-k." .Iii ii.iil'.iilit tliiit if 'III' (|ueHtii>n wiTt' to Ik' ilcitiili'.! ii|ii>ii mitliontv, it inoKt lif takfii an tlie jteiicrHl nilo llnit ull tlic mulrriiil Mutt'iiiint« <>t'i|ie jMiiieyol iiHurunrt', iiKiliiiiiiijj tlu' Hluli'iiii'iit« us In l/ir plun in whfli Ihf. iii.iiirftl jirujH'rly /V nlhiul) lire irurniiihi i . liinl hiii'Ii wttrruiilifM niunl he Inn; liml mimt rntifinue to Im Inie, iluriiig (lie whole life ol llic jiolicv, «h ili« C<)li .liii if rtiiv tt'Ciivpi'v tlirTciiiiil'r. |t2MlK I Ml till! iitln'i liuiitl then.' iiiv ilccision.", iiio.'jLh uf tlin Wi;steru StiiU' (Jonrts, totlic f'oljowino off«H!t . — 1 i.ocHtiun, UH .leHcriboil in llir |i<>licv, ih a warranty h*< to tlnU i:li4-l \fi' clc, ('to 2. Thai location us ileHiTiliciJ ni ilio jx'!!!'/ mi r>'pri'ficut( win h '/<'<■■'' I'.oiilotnplHtf and einhract t<'in|Rirary i>r 'laily rt'iiioval thfrtof, lor .-mcli iiHe uiui eiijuymi'iit . ^nuh aH wciinni; apparel, liorxfa, iiiiile-., cnrriajT'JS '*«"nt for fjiairn, etc , etc. , ami that it !•- Iht pio- viiici' of the court to iixsuiii' that it ah" '.he intention uf the parlies to the Ci'iiirai't tluu iht' iiisuraiii'c Hhoiild proiiit the Si'M-ral Huhjci'is \vhil"'ilmn ahsciil fri'iii the de'ignaleil |ilace Cor the [iiirpoi-es of Mil iisi ,iH( enji'V men! l2)IO* In liiu', it' llu' ]iidiK;rt\ oovciinl be ol' .suili 'iiar- ackT ;is to vendor it.s rotenlion in oik^ place corf am, the; words "I'ciiitiiiniHlin " slioiild roiit'ivi' a restrictive construction, if siusli rett'Ulioii would diifcat Mic [nopcr ti.so find enjoynioiit ol tlie pro])orty iintler iiisiiramu', th«n iIk! words are U) iw held as ihscript'nr (iu\\. In mipport of these propositions the following cases are cited : — llSttOa. Vchirlfn : Al a r.pair nhop. ami lliiri luinied, iMPVercii In tlit? policy an "contained in a certain burn." MeChur v Girard F J. Co., 4S Iowa m, 4 Inr- Law Jour. lU) ; Niag. F. I. Co. r. Elliott, S. C App. Va., If Ins. Ijiiw .Tour ('i28. l.ond & Lane. lus. Co. v. Grasefc, S. (.!, Ky., Feb.. 188H ; carriage burned at rejxiir .'^hop. ipp 474 MISCKI.I.ANKOTTS OONBTRIHTIONH. llilMlb. Wiiiniiii Ai'i«irrl i,oiij{tlfMl|c r In-, ('.,., S (\ Iohh. H ftid. I/Uvi Jdiir. MIA, rdvcn-il liv |K)li('v »m ('(intniiiril iii ii (itvelliii); hoimis \*»h ditiiiii^eil liy II ■^(j'lrk Irotii >\ ciiMir tvliilt- llitt M-piin-r whh on h wlfi^jli ri, lf> Inx liiitv .l>iur, A9 : ll.tlmaii covfrvil liH " I'DiitHiiit^l ill n dwitlliug "; biirii»l lii ii hI)o|i wlit>rt> it wm Milt lor ri'iMiiM. TiMviM !• I'lrc A<*iii., Appol. P.tnrt III., IHf*-*, ('umpmiy iml iu'lri Ilulilc, UH I'liiililiiL' Ui\'\ l'<'*'ii ri-iiii>vt>ritl iiinntlti*. rjl»Or. liimiK l'"lcrM4>ii i'. MIh*. \'uI. Iiim. To., 24 I >»a I'tl. oimTi.'il liy iii«iu'iiiu'r nx '' (■iiii(iiiiii'< •'■!., -W Imvii ■Ji'tO : itovfrcJ liy iti«y li;;lilnin;{ on tin' wny Uy mill. Ilolhrook K. St. Paul V. A M Iii'«. Co.. 2'> Minn. .!2'J, 4 Init. ItAW .four. 8ftt mull'-. ( iivcri'l wlnl.' " iMiiLiiic'l in a liir i," ri'in ivcl fUewlierc i*liilo burn ttuH liciii); ropiiiri'il, anJ mhiiu' ()I tliciii kilio.l \U- (imt\ I (^neen Im- <'o , S C Minn., 17 lun. I.nw .lour. >H(i( : coMrcil by (111' |Mi!i(v "ill tlic iiliicf herein hoI liirtli iniil noi cUfwUcre," r«'iiioveil tu u iifw iiiirn Hiiil liiiTi' Itillt-il by lii^litning. Sec atiio 'I'rtiilfrH Idh. Co. t\ Barclin, 43 N. J. &4.'i, a Hiinilar caxe. IIa«i« r. Fire AxHocialion, S. C. Ill I'enn. ,Si -Htl, coveriiii; liorMCM ' iiil Coiitami'd III 1 lUMv iwd-.Jtdrv (riimr barn, flc ,'" witli ordinur) lijfbtinng cinii-'f atliiclieil ; (trrtain ol' the liorricri MtT<' kilittd hy ligiilniiig wiiilo in llio fielij. Coinpanv lii'M li;iblc. llaw.-^ r. Ht, I'aiil F. ik M. In«. Co., same ('.oiirt, IS ln«. liavv .lour. •')(J1 ; Uiiijcr ffwue lorm a- to loiialion, wiih the ordinary li;(liliiin;j; niauHe, and dm fiillowiiii; ailditional Mrtviiijf ( lauM : " TliiH fxiliey dofH not cover oi injure Iimpt-rty 'if iiiiv kind wlii'c runnvi'cl from tin' piirticiilitr bMildini» 'luri'in (li'MiTiUvl, .>r kept or n'-rd in any oibt-r place or location, unlcHh otlioi'wisp Bp<(Mli«l in tli«' |iolicy." Till! trial court s^tivc jiidoiinrit in favor of the company, whiiili WII.S iillirniwl npon a|i}H'ul I'V llic Snprcmt'. (.'nurL, thusovwrruliny die pi'i'vious ca.>i(.;, la.st alxivt' iiLcd. I21H»(1. U would seem that the clause of the St. Paul V. S:, M. (Jn., aliovti quoted, wa.- ro precise and oxact that the court •viiiH not ionort) it, and Just hort'iu it wa,H that the two aiHes dilVi'Kd. and jnil}.',ment wan givou ar til*' court (in lowu), wluirt* ull of tla* ciHtuiiuiiy oliium^H, iiK to tlu' locatKiii of pruiM-rty tit tli»' litiic of loss, liiivr Imhmi sfl uHidr. it mii,'li( 1h' wt'll to inukf ii trial ot llicho two, whicli lmv<' bH»Mi rucuguizutl an t.'n'ectivc whcru tho othors were lull! im^iitdry. I'Koi'Kin'V. I!lfll< Pr-ifH-rty is h tluri^ ownwl ; ntiylliin^' wliicli a iicrson may Imvc a Ii'}.mI litln to, iii<>\al>li: or iiniiiovaliliv Wliiliiri •'. Hid Col lus (U>., : Mvt't \\tu)f. I , liolbiook r. Ilrown, i Mum. 200 ; Roiiv. Law Dictjr., Titlii. Ahtiohitf' |irojM'rty, wlu^ni the ri^'ht and iiitorcHt arc lit M to the ('.xcliiHtoii of all ollirix. l/t/iiH/iid jirojH'ity, wlitrc iiiiHt' iici, iim than oiio may liavo an uit»!rtj8t ; or whttiv thtj inteivst i^ m'parutiMl Irotn ijit- [ioh- BDSBion. (2 SharswtKxl M. (Join 301) , ','> liiii-'. I'a. 64ti.) l',iso)iitl |iro]t('i'ty is the .i),;ht or irit icai which a inaii has in thinj{8 jitTsoiia'— nuivalile or 8i paii.i-iU' Ironi n^alty. A house may he, ami oftm Ih, ix-rsuiiiil jtioporty. I!t21>!2. I'Mipcrty may tiinn hnw ilifl'crent i '.'anin^s th- jM'iiiK'nt ujion lilt I'onneiition in which and tluj purposes for wliich il in nsiil In one in^tanco "piopcrty" svm held to cover bank biil« as within the iulenl of thy contract. ;^1 Ins. Law Jonr. C9 ; 2 id. 814.) In a clause jirohihiting over-inMuranco, the t(M'iii may mean tlie intercut of the insured. In a dause forhiddin<4 alienation, it is l\cld to designate tlie thing covered hy tho policy, and not the interest of the in.snred. Holbrook V. Itrown, 2 Mass. '"^i', I Ins Law Jour. ''lO, (51. Articles kept for use in a store Imihiing mv. included in Mio toTUi " pi'oi)orty," hut not in merchandi/e. M(!ichandi/e may be property, but property is not always merchandize. (I31MK) (l'urge.ss ('. Allianio Ins. Co., id. v. N. Eng. Ins. Co., 10 Allen Ma.ss. L'21.) 131*:t. Esr.ATK : When an administratrix took a policy on the " Kstulo of Daniel 1?oh.s " — 47 (i PEiOPERTY. IlKi.n: The wor.ifi iiflcil wero intoniled to (lesiirnalii the persons liolding the Iciriil title ; •" 'I lo Hpoak of llie propiTty k-tl by the dt'eeii.^fil piT-. DaUv 1" AbiS'^ M ; 6 Ins. lyftw Jour. -IMi : Weed v. Lond. A Lane, iii.-i. Co., C. App. .N. V., IN id 8'ao ; 51 Harb. N. Y ;.51: 2n Iowa .iH. Itifll. Cn.VTTKLS; Every spf'cies of property, ninvfiblo unci iiniiM (Vault.', less tluiii ;i frwlioM. Personal cliatteLs iiioluih) «.norytliiii>,' mov. title, a.s iiniinal^, hoiHch' Id sttitV, intiu'y, joweU, iiU'., (.'verythiiig that cuu he jtiit in tnotiou and trausfe.iTed from cue place to another. (7 Ins. I>;i\v Jour. 4.57.) ]t2!>«>« (.lOuDs : A *"erm not ,so wide in its application as chattels. It applies entirely to inanimate things, not incliiiling tktiiri .s. Ill ;iiarinc insurance the term .ipplies to merchandize only (IVk Inw. Ill; 1 Ariioiild Ins. 21:3, 222.) Goods and Ch'tffch : An expre.ssion as nmch niore eompre- he;i.si\i' than ijoix/k alone, a.s cJiattcU is wider in its application tliuii ;/o..'k (l!i«l.i (I'.ouv. \m\\' \)u:iy. Title.) Vi\Hl. (loons, W\UKS, and MEitcifANOiZE : A form of ex]ire.s.sion, tVamerly ti.sed in polieiiH, a.s intei'ilini.i' lo inehiile everything in the uatui't; of mercantile i^omiuoiiititts. Wares ajiply more ]iarticulurly to manTifactured artichis of trade. Tlio phrase .seems to b(! surplu.sage, a.s the term goods inidudea not only wares and njerchandize, luit )nucli other inanimate pro- perty, which is neither wares nor nierchandi/e, as household furniture, pi-rs'inai or nidvalilc estate, etc., einiiviileiit to the Ireiich ttirm "/n^'jt.s." The exprt',s,sion does not embrace peri.^hable commodities. Its use is ehitdly confined to the marine branch. (I Philips Ins. 22o, § 43.1, and authorities cited.) I2!>7* JTijiischold ijodds : This phrasti includes all per- manent articles of hoiLsthold use, v\hicli are not consumed in their employment. (^ 17540.) MERCHANDISE. 477 J20.S. Jlovschohl, shtft coniprif^cs all pprsroial olmtlels that may contrilmte to the iisf; or convenience of the lioiischuld, or ornament of the house, whether useful or ornaniontal only, as plate, china, heiiw, bedding, linen, musical instruments in use, pictures, paintings, etc. (1721), but does not include wearing ajijiard, or articles of personal adornment, ISJtt.Sa. Household -. Family : Those who dwell under the same roof and constitute a family. It is not necessary that Lliey slioald he under one roof, or that the father of the family should be with it, if the mother and children keep together so as to constitute a tamilv. 1 Houv. Liiw Dicty. tlTS; Carmiclmel o. Ins. Co., 8. 0. Mich. 1883, 9 In.-. Law Jour, -m i Williams ;- VVilliimi.s, I Him. .V. 8. 3o8 ; High C. Cijy. Div , 24 W. R. 101."). l2!».Hb. Wearing Appard : Family weaving apparel in- chules all articles of clothing or raiment owned and in usi' by any and each of the members of tin; insured'.s family or bou.se- hold for whom he provides, but does not cover watclies, jewelry, artificial limbs, nor other articles of a personal nature that are in no sense clothing or raiment. Clan-y v. Protection Ins. Uu., Wright, t.ihio, 227 ; 2 .Johns. N. V. 2U1 ; 9 tns. Law. Jour. 108, 111. r ! il 1 ' \ MEJfCfLANDISE. 121>tl. Merchandise .- Held to include those things which nierchants buy and sell, either at wholesale or retail ; jnoperty not to be kept unchanged, but to be used for tratlic and com- merce. (17«2.) The term is more particularly a]»plied to pcmonal chattelH only. The fact that a thing is sometimes bought and sold does n(.t make it mc.rclumdif'e. Nor does a single act of trade make a ■/'urcltiint, 1 .MiiRPus' E3say.s 10, § 15 ; 2 it 40, 89, 13 ; 1 Arnouki las. 210, § 'M ; Wcskt, 201 ; (5oyntoii ,. Ins. Co.. 10 Bwrb. N. Y. 254; Liddle v. Market Ins. Co.. 4 lioaw. N. Y. 179; Siorn c. Ins. Co., 45 Me. 175 ; 45 Ills. 182 ; 51 id. 282 ; U Fost. N. II. "is i Wr. I'a. 2'i8. 478 MEUGHANDISE. Mt'io t'vitlences of Viihu', us bank-bills, are not merchandiHe ; though, iMnlor certain contiiigoncies, specie ilullars have been covered iiinkr tlio term 'goods, wares and iiiercliandise " in marine praetice. (.HJtT, I21>3.) 2 Benn. F r. Ciwcs 115, 110; " (Mean policy," Md. 120 ; Siler r. Morris, )3 I'enn- St. 2IS ; 1 Story U. H. C. C, 10, 53, 54 ; H I'eters V. S. 277 ■ 4 fk-nn, F. I. Casei 333; ,') (./ 504 ; AntfeWs lu8., § ;;03 ; 4 Iv- Law Jour, !»:« ; 2 Haniiay N B. 200; 9 L. C. i:. 44'^ ; Wi>od Fire Ins., f» "tU , Watt? A Serg, Pa. 506. i:{00. Merchandue, icifhout e^eept'ion : In reunsylvania, and Maryland policies are frequently wnttAiu to cover " vter- cJuindise grneridlji" and "' vtcrchaaduc tvifhout excepfion." These jihra.ses, niKler th.' lorm of policy used in tlioso states, are synonymous, or nearly so, with " merchandise extra haz- ordous" and " merchandiHe specially hazardous" ui tin; classes of hazards of the National Board foiin, as including tlioso classes under the expressions " generally," or " without <:X- ception." This expression, " without exception," or its equivalont, " of every descii[)lion," i.s peculiar to policies of the cily of riiiladclphia, where it seems t,, b^- .ipplied on every available occa.sion, many times to the injury of insurer, as follows : " fixed and m ivahle machinery and apparatus of everij de- scription ;' "stuck and materials of ererj d('scrij>fioi/ ;" " merchandise without exception.," etc., etc., the effect being to rendtsr the underwriter liable for anything and everything in the remotest degree connected with the risk. lliOOa. Jf'iisi'.i \v ■ Mjirinc practice, 1 Mugeii s Es,«iiy8, Ui; 2 i'l. 7, ;W, Ml, 43; Aileyiif »'. Marylan.l Ins Co., 8 Gill & Johns MJ, I'.ti). •' A tPiuii of liorsi'.s" li) Barb. N. Y. .W.S ; 5 How. Pr. 2P8. 2, GuoCERiKs : Thi« term incl'Kles t.ea.'i, cofl'ee, sugur, spiocM, fruitn, liquors, ami otiier articles of fixul for tlio table. (4 Benn, F. I. C 712,) 3 Phovisioks : This word embraces food, victuals, faru, j>ro\ encler, — atiy tiling t<> eat for man or bea.st. 4. Pkoduck : Pi-odurl That which is made, foriiu'd, or produced by naturt', as hay, grain, fruit" or nietalH, etc. 5. CoM.MninTY : The general produce of tlie country, as articles of com- merce; everything movable that ie Lought and sold. 479 MERCANTILE ALLOVVANX'ES. iJlOOb. AUowiinces, socalleil, are mailii upon incroliimilise, unik.-', barrels, boxcH, bags etc., coiiiiiiiiing tiie guoils. a. lii'al 'jr Open Tare : The actual weight of the package. h. i'lislamntj T'irr . An t'Htablishe'l allowaiirc (or woiglit of lioxe«, etc., acconliiii! to iis'ige in any tra^ip. c. Acerage Tare : Metliuin tares, where only a few of a munU'r uf pack, age.-' are weiirlioil, anil their average taken a« tlu- rate of the weight of the whole. d. Computed Tare. An agreed t.tre. 3. Siiper Tare : An aiHitioiial tare whcM-e the cumtno-Iity or package exoeeil--a certain weight. 4- TuETT -. An allowance formerly maile of four pound.'^ in evei'y 104 poumls of .«w7//c' weight, niHtie for Ullage, that i.-, for liii.st or .sand, or for water, or for wear and tear of the coiniU(jdities. It.s use lias now been aban- doned a.'^ a cUHtoin. 6. Ci.oKt'or Vlviiijli A fiirllier additional alli>waiice of 2 jwuniisin every 'i cwt . of the «ero/i'/ xuftle, or net weight after the trett luvs been deducted. 6. Nkt Wek'.ht : Tlie re.-^ult alter llie tare oi ly has been deduute{4>l. Condllionx of the Policj/. — " It i^ a part of this contrnct that any person oilier than the insured, who may have procured thin ins\uance, U< be taken by this cimpany, shall be deemed to be the agent of the assured naui' d 111 this policy, and not of thin company, under any circuniHtances whatever, or in any transaction relating to this in.'siirance." This f.onilition ]ia.s been cnnstrned to mean that tlu; aot;nt or broker obtiiinin*,' tin; inauranco is, .so far, tlip a^ent of the applu;ant for that purpose ; but when the insurance has been 480 l.\W OK A(;KNUy. seiMirctl, liisfiu'i-iK'V for the iiisiirod thcreupitn ceaKcs ; ami if In- i^ intnistuil with tlio policy lor delivi-ry and ce'llfcUoii of the j've- niiiiiu therofiti", hi.' becomes the agent of the conipuny for tliis ]iiir))u.so. Shoiilil he collect tlu^ premium, aud fail to pa} it over tu tlie coiniiuny, it will he the loss of the company and not of the in.^ured. (^T.SWll, T.H7. 7>i.S), and authorities cited. 16 I11.H. [aw Jour. I7s ; Ki'blor n iN. <.>, liis. Co.. I'l. I'M: [ns. (-"o. k. llBrtwrll, .S. C. Inil. : I'atu-reoii ( . Royal Ins. Co., 11 (Jrant Cby. 109, 9 Pliila. 50. tiHV2. \W tlio common law, am [lerson having power to do a tliinir in hiy own ri^dit may do it by an ai;fent; and i;oriv- latively, that which i.s lawfully and liy authority done by an at,'erit i.s to lio deemed aud treated as if done by the ])rinoi])al himself, witliin the power d'.dej.,'ated to such aj^cnt. Wornill '•. .Mmin, :> X Y, L':!;) , 1 Ins. Law .Jour 405, GOO ; 8 id. -lirj ; :i d. 100, 104; J I'lirsons lus. 410; :;i Coua. 017; i'uUetMoa v. liayiil Ins. '?(>.. 14 (riiiiit Cb.v. IHr». i?r.sruxsii'.ir,iTY ok aoents to Tiiiau I'liiNCicALS. ll!SO!S. Agents are imund to know the law, and act accord- ingly lor the beiiitit of their priuci[)als. 'I'h'y are bound to execute orders of their [iriticipals wlienever, for a Viduable cou-sid- eration,iliey have undertaken to perform them ; and their lia- biliiy in eahO of devi:iii(in is, as in cases of negligence and ium- coii'luct, measured (july by the e.\t.enl of the damage sustained by their piincijials. It mailers not in what trilling details spe- cilic instructions are di.sobevod or neglected, as the, writing of risks at k ss ihan authorized rates; writing upon for)»iddeii li-k.s , failing to cancel policies promptly when so instructed, or in any othci respect failing to cotnjdy with the requirements of their princiiials, whether through ignorance of the law^ ur by design or simple negligence, the same dcgriie of responsibility rests upon the ag(uit. (Wallace 0. Tellfuir, 2 T. K 188 n; 1 Ksp. 75 ; .Smith v. Price, 2 V. & F. 7-i8.) He is also required to exercise the same degree of care and skill 111 tile busii.,ss intrusted tei him which men capable of properly transacting such business would bestow upon it. It is also an agent'.? duty to keep his princi}>al informed of his doings under his ai)|iointmeut. and gi\e lum reasonable notice of whatever may be impoitant lo Ids interest to know. t -? LAW OK AGE.VCY. 481 Di'lftficlii I'. Ins. (Jo., 2 ITill N. V. 15;( .luck-on r. Vuu DulfViftn, ,'. Johin V. Y. 43; UatToll V. Olmrter Oiik lii.v Co., W |{,irl.. .V. Y. ■.'!)J ; I'o^t c .Ktna [us. Co." 43 lim-b, N. V. 3,51, 372 ; 2 l'.iisr)na Ins. 124 ; IVikins v. Wiisb. Ins. Co., ij .Johns'. N V. 18-. J ,,y. J Cow. V. V. i;4.') ; May In.s., 12.1 et .vy. : U Imrton Agwcy, § 2t!tJ ; 1 Ditly N'. V. lyOj Iti Jus. Law Jour. 7 J ; Pratt A Cntter /•. Pli.vni.x los.'co., S. C* .Minn MSt>. A.s t(i instriioticms to i:nM'v] policies : if not caiici'luil ;it oiico theac,'ciit i.-< Iial)lo. Maxim, ■' C.iuviA first,, hvI ar^riie nl'tcrward.s." rii(.-nix Ins, Co. N, Y. v. Pratt .fr (.'utter. S. C. Minn, m.-^ii; Fninklin Iib. Co. V. Sc.u-s, V iS. C. C, So. DisI.O,, I,'! tn.s l,a>v Jour 7(H : Wa.-lpinKion F. .t M. ,.'. Olie.si^boro, i:. «. C, C, 17 Ins Law Jour. 58; Ptuuni.x L Oo. N. Y. «. FrUsell', S. J. C. .\lu3d. AI'IUOIMTY OF AGENTS. I»t>l. A corporation can bind it^rlf and act in any iv.spect only liy and lluoiigh it.s '. Bancliiu'il, 21 towa 1^,1; To|.i.int: ,;. Hickfonl, -1 Allen Mass. 120: Connver k: Im. Co., 1 V. V. 21)0: s. r. liow. Ap|). Ca.ses (ilM ; 3 Oeuio 254; 32 N, II. ,'!1.!; 50 111, 111 2. Ihc appointment of an o7 Mil. 107. 0. Jleriiay be at,'ent of the underwriter alone, or a .sid>aj:ront, or a surveyor, or atieiit to solicit ap|>lieation.s for iiiHurunee, or agent of tlic insured, or both iiurtic*, or lie may be a volunteer ag».'nt. • Drtvis t'. (^c-(itti.fli rrnviiioinl Ins (Ji>. 151'. V. ('. P IP.'i; Henry i. A sivicnllurnl Insi. Co., 11 {Jraiii 3 i'hy. 125; PtMilcy u. Honron Ass Co.. 7 (Inmt Chy. 130: IIeii(lrii»ss('s.si(in tiini uhc by iiii ugciit 'A an insiiianof^ idin- ])iiiiy's CL'i"lilicjites of lonewal, ti);^t'tht.T vitli tlu' Dxorci.sc of ilw aiUliKi'ity ill utlicr instances, indicate tliat the })i)\vt!r "f ii'iiew- in.n and oonlinum^ iiHiuMiuts lias been cnuferred uj>uu sucli Aleuts eluthed MJth iieii''r.il aiithurity as to lillin<.f u]» ;in(l issiniiL; polu ies. and to maki- original contracts of insurance under the terms of theii jioUcie.s, have authority, betore the delivery of the policy, to change or modify the description of ihe jiroperty insinvd. (( rloucester Mfg. Co. f. Howard K. I. Co., o (h'ay Mass. 4'.t7.) Au agent intrusted willi bl.uik policies, and authorized to elTect iiisuraines for a piirticidar cily and its vicinity, insured property in another city, where the company had another agent with similar authority for lliat city ,ind vicinitv : — Uki.I): Tliat till' com|)iiii, wun Kounil l>_v -lu'li |ioh('y, as lie was a 'leiiiircl iii/f.nt of the coinjiiuiv, .'iiiil actiii;^ wMliiii tin.' ^eo|ii' uf liis tiiulioriiy ; anil lliiil I lie oetii|jiiii_v were esloppei' fl'uiii i^ettirii; up Uieir private iii-trui'- tuln^ to siuli amiit, vvlieii they vm re wlmlly unkiijwn it> ilic insurei! at ilic tiine oflakuig liie policy. yKtim im Co. r. .Miiguirc, 51 V\. .".42; Lisflitbody c. N'. Am. F. L Co. 23 Wi'iid. \. V 18. I!I0H. An agent to subscrilie piolicies is nof, merely in virtut! of such agency, aitthorizi^'l lo Kefllc lUi I puji l.n><.iie/< aivli'.r policies issued lii/ kintself uk such ajoit. Such agent's author- ity does not extend to the adjustineiit of los.s, uules.s specially .so named. 484 LAW OF ACKXCV. ". liif. I,nw Jour. 71. 'JOT; B i-/. 472 ; 2 Phil. Iiig. .i2.V 55 1H7;«, 1874; lt<-ll .; .\iililj'., t PiMijJt. 48, Aiigfll Ins "i(Mi. In tli(M.'fiso nf Kicl);inlsi>n r. Aiidcisnn (1 rmn]!. 4.'>, ii- "). I,uvtl I'.llciilioronu'li s<'ii*l : '• H" ;ui ii.Ljfiit has luitliority tn is-"ii; ami ili'lucr )>(ili('ii'.s nt' in.sumiicf, h« is (iicsuiin'il ti' to list! all I'e.iVsonHiiIc uit'iui.s to I'llecl .siii'li iiilju.sliiifiii " (of Ikss". Till ' !i<_;('ni '' lii'i'i! rcl'i'iTi'il to was nui' lin|(liii^ l-i7:!, 1^74, 4". Barb. N. \ . Xd; flU V Y. ."i.-Jl ; '>■> S. Y. :.'■;<>. liiOII. Wlieivilii' (|ue.-tion was wliethor verhul pennlftsion to liti- inhured, ))y tlio iKjcjd, to ntain on. sule rerfalii poirdar Oil huiiil at till tihir of i)iKUraiiei\ and additioniil iiniiraii''(! in iinotlier coin])any liy tlir .>aiiii' ni/i'nf, vvon- I'art.s I'lmsiiiLr ilh; condition.^; of tli>' policy au'ainst tlii- s;ili' nf j.dwiIi'V, and ,'it,'aiMst addilii'tial insniauce on tlir L',i">d>, to Tail as a deft-nn- to (hi- action, till" (..'oiiit below iliarjjed in tin- allirniativc. The com- jiaiiy .siiiiLtht a reversal of the jud;.;rnent, l>y couteiiiliiiL!; that the knowledge of the agent was not notice to the coiMiiany of the facts alleged ; and tliiit rlie a-ciit .■muM iiui, in .such a inaimer make new contracts to hind tli'- compiiiiy hy iii.s acts. diiilg- nient aflirnicii by a divi'led (■ouil. rUuk «. .Maniit'. \n-> Co, :' W. X M 47i; s. c. H How. U S >>.'> ; Glou- rpstcr .Mfg. (Jo. !■ Hinvvnl lti3 Co , fi Giay y\nii, 4[iT , C'tjwns Mul. lii^ Co. I . ^^iirtwcll. H Allen .Miiss. 2i7; Itunforil Ins. Ci> r. Karrish, .S (! fll., '> lua L iw .J(>;ii -Im; Mitch, liimk >'. Hiiilc Krtiili, 10 Wsill. If. S. iU4 ; Lnngstiiiss f. Ins. Co., ii .Mo. 107 ; Viele '■. iri^rmaiiiu Ins. Co.. -li Iowa d, mid cases citiid. i:;iO- Siiicio A grill At 1 .igeiii ajipointed lor a jiaiticiilar piir|io,sf, and under limited powers, (.'a nnot, as a vnle, bind iii^ principal, if he exceed his authority, (5 In--. Law dour. 730 AGENT OF Tlir; UNDERWRITER. litll. It an agent of a. com pa iiy neglects to incorporate, in a.u iifipl.icalii^ii 'liinrii uji hi/ hhriMtf i'\x tiie insured, facts essential to the validity of the policy, which facts he hu'l prom- LAW OP A(!ENCY. 48 r (l to inst'i't, tl II! fornpaiiy ciuniot st'l wp siu !i mni-^'-iim ifli for tin' |)iii|»')S( III' ill f 'utiiiL,' iiii ui'limi nii tln' jioUi-y. (4 I.. J. '.•■j.) 4 Ins Law Jour. UO ; IMc/, 77U; IR i/. S'.m ; Ins. Co. c Wilkiinon. I.l WuU. U a. J'rJ; 42 Iowa 4U ; c. h. 2 Dil. 0. (J. N. S. 570 ; Wing i>. llarvfy, .1 Di'ij. M * 0. .!•):>; t H. I. 141; Kelly V. Troy Iii8. Co., 3 Win. 2r)4 : Ri.wley i, Einiiirw liii. ('o , Hii \. Y. T),".!! ; i; lovia l!7i5; r.O V. II. '.J:i7 ; I't V.onu. M. i:{lt2. Xutice givt'ii to ii application or policy 1".! defective \ipoii a point well known to thr agent, the company .im! iml ihc instinni slionld lietlie .«u]f('rer8. No com pany has the nglit to select and send out to solicit patronage and 1)iisinesa for its lieiielit. and then to sadille tiieir l)lunu"r.s ujtou its cui^toinerd. (IJJ»1iJ.) (.lolumbiiiu ln3. Co. v. Coojicr, 50 Pi-un. fcila. iiUl ; 1 Ins. Ltiw Jour. 11; 2 ('.'. 12 ; 5 i. "Tiie Insurance Liw of Maine (sec. 18) provides that a person anthori/ed to receive applicitioiis and payments .shall he deemed agent of the company in all matters of insiu'- ance. Notice hy the iii.snred to .siich agint u binding upon the company. 1^(17. In Michigan, an i)h'<>rr((iii'( (njcnt i;- deiined hy law to l)c "any acknowledged agent, snrveyor, or broker, or any iiilii't person or persons, who shall in any manner aid in the tiaiLsaction of the insurance bu.sinos3 of any company." l^tlS. The State of Connecticut requires, that where an iiijiiirance company has an agent in another Sta.te, upon whom 486 I AW i)V AliKNCY, srrvicf 0/' mill can lie iiiu'lt', iis iviiuiicti hy tlu' law ot -iiicli State, it ciinimt ifvi.kc tlu' ri'iavsttitativi'miiliDvity nf stidi iij^eiit, tlii'i'f I'ciii^' till dIIkt nt,'tnt iii hikIi Stnte, iiiiil lliiis |ir(jvniit aervict', wlulo it hnn cuntructd nf iiisiiiiinc*', iMitstiin priiRMpal, tin; tinii|iaiiy'H aj,'"iit, (•mii- pttcnt (d inakt' iiiHUiaiin's, ainl issue jHilicit-s tlujrcnii, such a|i]iiif'al hiii> 111 ln' sulijfi't to thr .ijjirMval 'ir ivjci'tiini nj' tin.' agriit.. Su{-]i ^iili-iiif III raiuidt liiinl tlio riiiii]iatiy, iiur ("an lio take an n]i|)licatinn 1Y< in liimsi-lf npnii liis ouii jn'^iievty, aii'l bind thcniinjiiiny tlioich). 31 Conn. ,'il7 : 4 Ina. Law Jour. 4ii8 ; Knun v Joffeiaon J'V 1. Co., S. C. Ohio. 1P83 t -J, Ins. Law Jour. IJ, An agont inay t/inploy a suI)-n,i;i'Ht, Imi r-.mnf't, willimit consent of bi.s i^rincipal, flrlcirate his uiiihority, and t'iinsfcr ll)^! .iiUliiii'il y t't luu ihvY—JJehydttis uon postsif (hlifjarr. Jf t\w )irint'ij)al adojit tlie .snb-a^^'ent, lu* bt'conies thereby the direct agent ol' the ooniiiany, and is no lunger a snb-igcMit. liS'JO. Clerks of Ins n run o; Af/mls arn snbavent.s. The acts of such clerks are tlic aets of the agents eni]jloying tluiu. AHfii \. St l.ir)ui-i Ins. Co., .V. V. C. A 10 In.^. Law Jour ."io I ; StephtMi.s A Dowe ('. Lyconiinjf Ins Co.. V. S, C. (1!.: 2 [ns. Luw Jour, fi, 12. 23; .'! /,/. t'f.2, tJTT. V,')! ; 5 id. 4H , G i-/. 450 ; 7 id. 4;".; 9 iJ. i07; 40 Mo. 450; 4 Camp. M , 5 N. y 60ti ; (''H IIL 403. rHE SCRVEVOB. l!ilH. A surveyor is an agent vvho.sc authority i,s resit icted to .soliciting insurances, and taking aiiiilieation.s therefor. When regularly apjiointed for sucli esjiecial }iurpu.se, and .supjilii.'d wit'i prirUed blanks ilicrefor, he lias, iis incidental to sui;h ap]ioiutinent, the re(iui.site authority to make all needful exi>lanatii«ns as to the int^ining and elfect of the terjus employed in till mterrogatories in tin' apiilicalion form, and to agree with the applicant as to the term.s he shall employ to e.xpress the facts stated 6^ himself, in an.?wer to the '[uestions. LAW or \(;i;ncy. 487 Siirvoyors, whilu they inHV, u'hen, iiccemar*/, mil as amuiiii- t'liBGrt for tho aiipliciiiit, in (Ulinj^ up the applioatinii, yi;l it will Im) Ixittiir lu Icavi! thr aiipliciitioii to l»o llllcl mit liy tin* uppli- canl ;iH tiiv ,i.s iiossildi', ainl tlms pruvunt fruuljli' in llu! cviiiit of disjiiili'U oliurns for losa. « Ins liHW Jdiir. 't'.Ci- •! Kern. N Y. •»!« ; 25 Conn. 46S. i:i:j:!j. A ^mvfy.ir imly aiUhun/iMl to Uike apiilinitiou^ ami rocitive tho oiisli pcrociita^'o thi^rcoii aini ivo(Mpt. for lln- saiiu; (thf iiioiuy til ill' n'tunicil in caso n\' tli>' iion-iip|ir(i\;il of the risk liy tlio local iv^o.nl or iiuupany), is nol th('i'(ti)y tMiipowerctl to niako conliacts fm' insiiraiicf, iiur luinl the oonipaoy to tho issMiu^' of a policy; nor to svaivt; any (■nnduion.s of, III niaKi' any inilur.si'ni'nts iijion, policies alrcaily i.ssiuid. Notice t'l a surveyor is not, notice to the company. .')1 III. .'.It; , .'. \.!V,iilu258 : 22 I'euu. btu. 72; 22 Barb. N. V. 5i7j I K. I. Ul , 6 Ins. Lnw .lour. 3. AGENT OF THK INSfKl'D. l^t'iii. liisurinj,' as "a^^ont" foi a iiarlieiilai jjevson i.s equivuletit to insuring on his account. (7MOa ), anil authoritiea cileil Aiigfll Ins. !)i':>: Mnrsb. Ins. 2ii« . Shaw'a Ellis Itid. 157, n. ; G;! IVnti. Stu. 87 ; May Inb. 123, n 1 ; 11 Ins. Law Jour. 844 ; 7 ri. 214 ; 9 il. 4,'ir>. A concealment or uiisrcprespntation hy an a^cnt (a liroker) for elTecting insurance*, or making a rejircsentation as to tho .subject of insurance, is that of his principal, and will have the same effect iipnii tin- validity of the policy, as if uuide hy tho princij)al himst.'lf. ^♦5^l7* OO."*.) Miiy Ins. 12:1, S 122; 7 lo.s. Law Jour, "n'l, 214; Richardson c. Iliiniaton Ins. Oo.i 21 r. 0, (1. 1'. 2:»1. I5$ii-I« Instructions of a company to its agent to authorize him to receive and forward a})plicati(ms for insurance, to con-- sider himself the agent of the aj)plicant, does not make him such, unl(!ss tho applicant chooses to recognize him as his agent. (i:iOI, 1S»3), and authorities citeil. i:fi!25. Where a by-law of the company declared that " the agent taking the apjilieation should bo the agent of 488 I.AW ith AliRMrV. tlu> n|i|ilii'iiilt," such a law tlofs iint tlivcst, tlio aj,'tiit t) (lalOl), uiul uiu thoritii's ihtii' citud, H liM l,.iw J.air 802 ; 7 i /. So ; I Henri. I". I. CMeii ti:i, 3li« i It Hurl. N. Y. 'II III'*' ^>'*- tH'-itl' Till' insured is iospnnsi)ih> for tho truth of roprtsput- utioii.-. ill lii.s apiilic'itiun,- -llit; sij^'nalurn auil uiilhoiiiy of tlu' insiir(; upplicatiou would l»o incfuupt'tciit. ( IW»"¥ ft ^^'(J,) F. rry r. IJrIlisli Am K. Iii». Do., 4 U r. CJ U. .CiO lit'-irT. An aj^'ont iia\ in^ Lji'in'ral authority to msuiv for his principal is not thoit'liy aiitinnizod to in.surc in a mutual (•oiiipan\. th or more compnnie.s takes a rii^k in one of iheiu, ^Mid re-insures in iho second, for which he is also ageu; ; and before approval or rejection at the head olhce of such company, the ri.sk was burned. Hki.H: " 'I'liat as hi' was agent for both ofliecs, the policy was made umler circuiJistaucea which would unable the company, of which he l.VSV (»K AGKNCV, 480 viis ii^'oat, til iiAiiul it, miiiii till |>iiiiii|tloH iif iMjuily. (.'un- tnn't lit*lil iiivaliil." (S. Y. C<'iitiiil Iris. (Jo. v. Nat. I'mfoo- tioii Iiii. Co.. 4 Kcfn. N. Y. 85, n-viTsm^' 2U Unili. N Y. 40H. t'O.T^H.) i:t:ll> I'liilor till! 'iti|iiiliiiiwii tli.ii "III nil riiM'^ tlit> iiiniiii'l will Im' liniitnl liy tlie jipplii'iitiini. t'ni' \.)\<' |Mii|iiisi> of tiikiii;,' vvliii'h the Hiirvoyor will !»• ilcoiiU'il tlir aLfi'iil nC till' n|iiilii'iiiit, .is well as ul tlii- CDmiiain " llri.it: ' Tin- smvcyitr tiil iihuh'iI, Im.' was (\M'('Ctfj(l l'\ aiiv niiii.-i.sioii lii tin; slirvfycif." (I!t:(tl.) i .'i Ins, J^iu -Imn. 1^40.) l:{:{'i. I'lnlir till' I laiHc [truvidijij^ tlniL " iin} i'«'i'?on itli.-r iliaii till' iiisnri'ii wha sIimiiM jiIimmui; tlitj iiHi.iiiicn, sliouM III' ilffiiH'il the u^iilit lit tliii insiii'iHl aiiii imt <>{' t.lu« company." Ill'in: "Tin' a<.riMit (nf tlin "ninpany) luiiM nut be tilt' ai^Miit I'lti hiitli jiailics. Tin! provisiitii ii'ipiirin;^' llic policy (\nd I'ciii'wal ti' In; (irnintcisij^nctl by ii duly aiithor- izi.'il a'.;i'nt was a!itu;.;i)Mi.sti'' to tlic (itlicr, ainl I'fiid' rcil liim the agijiit (if tlu! ooinpany iiiul iml (if tin; iii.siired." (V\liili'd V. r.t.rniiuim Ins. ('.•., X \ ., 7(5 X. Y. 41.'., S In.- Law Jonr. .SdS.'i 8|irHi.'iio V. HollHiiil liifl Co.. iVi N. Y I'h ; I'olirback r. GerniAniit Ins. Co., (i'J N V 47; AlcxatiiU'r v .Smne, i;i) N Y. 464. i:c:t:{* l.'nd.'r (111' liisuranci! Law of tlir Stair uI'MaiiiH, an iii.siirince iv^cnl caiiiiiil In- tJui iii^'eiit of Imlli [lailit's to tlic niiiirai.'t. The Law says : — ''Any ftjiplit'atioti fur iiisuninci.' or valuation, or ilc^criptio!! of ilio pro- perly, or of till iiiicr.«l of tlieiiisart'il tlicrcii , ii'lrawn by >*ml u'jrt'in, slmll lie rAirii;lii.'»iNr ii)x)ii llic r.c,iiii,,iii\ , Imt ih.a upon ilic lu.'Jiiroil, ftltlioui.'li -i^'iuhI by him " VOLUNTEKlt AliKNUY. i:{:i4> Volunteor agency is wIuto a person acts, not only witlunii the. aiitiiority, but vvithoiil tlio previous knowli-dge of tin intended priii-'ipal. (7tJ ouh for w'lioui llii' iiisi, aiK'c \\a.- lulrndt'd can liccoiuo {•arlics in ih,' t.onlract ny adi>iilioii. lii-iKiMiV t.i'j; Mux >* t(i , I'Miiiiii'. I'liiiiiroM, I I'orlei Ala, 'i'M \ I liis- l-iiw .IiiiU'. .I'.o , i Duel- Iii,s 1,'i : ;! l'iir.no niav insure in Ins own nauio flic prMjicrty of annilicf, I'dv the h.'iiclit nf ihc owiut, williniii Ihc laMcr's ))r('\iii!ci aiil!iori(;V or sani'lion ; and siidi sanction will insiiro till' iiili rest of the parly thus insured, U|m>ii ]u,s siil»,se(|Ui'iit ado|riinii 111' it, even alter )i loss may have occuricd t,o llie |>ro|nr!v sul'jei't to the iiisiira.iii'c ; inii claon mist lie niadi! Willi ii as(iiia,lile diligence, siu'li as pulieies ' Ini wlmui it may coiiecMi." (rJ:{:$.) (Milteulna;,' r. I'.are.oiii, i> l'a,M. I'a. I'.t.s.) Walk, IIS I' Dillrtiiil, 1 I'lirliT .Via 251 ; llii>tlii'!l hn. .U , Mivrsli. Iii.s. 207 ; t Ins. liiiw .lour i'tli'i ; (>);(loii •■, .Moiiircjil Ins. (,'o , '.'■ V ''. V. I'. .'Ul; l>o Koo t;. Ins ("i... 7 r. (;, ('. I>. ■), llttlTm \ \-iiliiiiteei ai/eiit. is iMiiind to a,el, not niily in ujooil lailli. Inn \\ith ;i,ll llie priideiieo and skill tliat (he proper e\.'euLion dl' tlio trust may require. M.'O' Ins. I'jl, ^ r.'l; Kill r, French, 2 ,V. II i.''i<; ; Tracy i. W.mil, .Id. MiLSDii. t'l. .S ('. (". i;rj, Thome /■ I»»'Hs, I Jnhns. \. V. H\ . Wiill.aci' ,■. TelCiir, M T l{ is.>< n , \Vj hi i<. I'ukhinl, x .\lc.s .t \V,.|. Kxcli 4'i:i; WilKon ,.. Ilii'u, :; ,.i. 11.1. l.'fiifi.H. Where olio, willidut order or aulhorit-v, effects insiii.iuee, intended paiily or \\liolly fur aiinLlier, in a loiiu availaliK' to him and appliralih; lo his inlercst, stie.li iitliijr Jias an oleetion to he a parly to siieli policy, iw (e dodiiuj iL, hut' he will liecoine. a I'itily afftiv imf.ux, and as snoh liahle foi tli'i |ireiiiiiiiii, unless he dcelines to he ,so, uiihoiifc nnnecessaiy delay. ' lUJiJl. < / .scy.) (( iitford '>. (^)iu,'eii lii.>. (^o., .1 llaiinay M. 15, [o'J , J)cl''oe r. liis. Co,, tHApiu.) I AU OK A(>r,Ncy. 491 A supposed lii'iuriiuil cjiniiMt uilupt a part, for liin own hcii.'fit, ;mi(I r('|)inli;it,r llie nat ,1 Ih,, siippns...! n^rUry Si'O (j;i;t I ), ;m(l antlioritics fcfcrrcil to. t'.ilUK A \,,|inite.-r a.^-cril, like aiiv 'ithrv ii,i,i>Hrd. will. 11 Uio biisiiicss dcIcj^aUd is (■(,iiipl..t,.(l ; or in c.isf of jMHiiiT.sliip ii.L'cncy, i.poii iho deaUi of (,i,c .,1 l!ii« part 1 1(. IS. Mcr.v Au'cnry, ji MO; l',Ucy Ag'y. 18H : 2 Tav.-rmore A!,''y :!00, iKi : ■• Kent I'oMiiii. i;ii i:ill. A ,!.••»' lu Til I a,ui,Lnrily may con! iiiuc to hnnl a ]irniri),al .ilYcr ils actual 'vvoc;i!ioii, it the a-cncy wviv |.:ii.,\vn diul llii' rnv:,oatioii \h'. wholly mikiiown to tlic part,> 'LmIIiil; V)Mi tlic. ugciut, willioiit, siiili party's ranll. Mo.Veilly r. OontincMl.il Ins. Co., Oii N. V. 2?.-. wS.dto ,-. Fid.J, r. Ti'.ra U '.iW . ■::> WciwJ. N. V. IK. i:il'i. The iworatiou of the authority ol" 'Ui ;iL,'ciit, lo cflcct iiisiinmrt;, will not (l,.|',.;,t aii\ noKM.iiK.nt such iicvnt m,i\ li;p r. 'iiadc for itisiiiaiR..;, thou-h Ju! will (•(^t,-..; to he a,iil hovi„..l lo hill'! !iis principal fiirlhci'. .MiN-iilv .. ConliiiniiMl I,,-: ('„., (;.; },, y •:;! ; |>„i,.y ,\e.. .'ISH-') ; ,.l JiCA ; 2 l,iv..im(.r.. A>,o. 2iiii-l ; :i Vlanlc A Sel. 31-1: 1 Ciiini,, ['.•jil t'.iV.t. Wheiv, ii poli, y was ,l(iIiv(.Tcf a staff at war with the stale of liis prnicipa'. He might la« fully receive payment OM a conlrai't rnaile hefur" tin; war. It v\rpnli| he his dnty to hold anil take cure of the [iroixnty of th, iirinci|Nil in ins ensiddv Knr, bi'yondthis, hei,'ould not lavvfnlly art.'' riir-; ikincii'al. I!tf(». rh(> ))niicipiil i^ luililf fof tint nesligt'iiee or mi.>ki II- fiiliiess of his .lociir, iti tlie traiisiictiiio' oflni-iti CSS but In.' is imt Imlili of Sll'll ilLTIlt. tl or tnc wi llfiil a.'ts ii,ii(.l (d' llie ap".'!!!-.}' ; Wlolio- (|()lii,-);»; IG Wis. '^41 ; 1 ni' : II N. H. 2;^ Jour. G'J8; 2 id. ^2:' ; 10 .\. V. Mb ; :>8 Harb. U'.t ; 'I~> S. Y. oUO i./. J''0 Ki Ins l^aw 2i; id. .'K'lii ; :s GrNEUAI. LVVVS OK AiJKNCY, IHtT* ITe wlio (li!il> witli ail aj/i'iit is, a.s a jroiKTal iiilo, houiisl to a^ciTtaiii !i\ iii<[iiirv lln- uxtciit. ami limit of lIk"! ii.'lciMtcil aiiilinntw and w ln'ii the u bliyal loll exi.st.s, it is at li.s own risk and jn'ii' liiat. hi' omits tin' ii!'|iiiiv 11 e IS ai-o I'liai aldo \vi!h I he know Iciloo hi.' oiiLtht U> have ji se.ssi.ll, ami tin; oontract < lii-^ ]iii\vt;rs, is whollv vniil. iho iiL;;rnt, if he has i;.\:cei.'(l(:(l < iiH|inKin ('. hiii'-ii-ihiri; Ins C 12 L. 0. J. 41), Wist. Assr. V .\ tvvel L '' ■) \'*\ : l.ampkiii (. Wi'jt. Assr. Co., U. C. t^. U :iiil ; Davis ". ."^col. Prov-. las. Co., I'i C. C. C. P. \m. I!SI.S. \ ni'.n'c a.<:(iit with jiossfssioti or lien ha.'* no iiisiir- abli/ iiiii list ; hc'iioc, the btMiofioial owner cannot take atlvfintairo of ail Insiiiiiiii'i' C'll'<><'trM.i by an agon'', in his ovr/uiatno, undor sn/li cirr'nn^taiii:!'.^ : such contract is simply void, ((.'ivil C'liU; L. '.'., ij 17;-;7, 'f "''q.) 3 H. k A. 17H i 2 Am. Lead. Ca.^e.s AM; 1 Mann k C.r. liO , o V.\\ i p. w,-,) . >1 iMu 'M. \.^^y or AfniNcy. 403 i;il!K A C(iiii|,;iMv cniiTidt 111' iifVci'tcd l.y nny net of an figf-nt not williin the .scope of Ins autliority ; ]>ui a cririipiuiy cai:m>r be (lisoluiri/e.l by privafr iu.'^tftictioii.s to an aj^eiit, l\uf in:^un,Hl being ignorauL of .sndi instructiou.s at the time of niiikiiiL,' til.' contract. So far as thinl ]«ivties are eoneei'ned, .sui'h j)rir<(t'' iii^truclions an' inoperative. (Mav Ins. i} 154; Angell o\ Ifis C,,., 4 Ins. Law J(air, 127; 2 Kent C.,iuiii t;29 : Cili/en.s' Mat. F. I, (Jo. v. 8<-rt\vel], S Allen Ma^s. 217) J'eikiiis/L Wiuh. lug, Co., 4 Cow. .V. Y.Ou,- (.lorn. his. Co. r. Vn Mill. Ins. Co., la How. M. .•<, 318, Ii..|,ry V. Agiic. Miit. Ins. Co., 11 Omut Cliy. 1J5 ; Merrick c I'rovinciiil Ins Co., It I'. C. Q I!. lA'.). i;sn»0. \o p,.r.soii can act as agent in a transaetion in Mbien 111' has an adverse intere.st ; hence, an ag-.^nt eaiiiiot receive an a])])lication from hinisi.'lf and insure Iii^ own property, so as to bind his eompaiiy. The agent desiniig to lia\e a poli :y ii[iim hi- own properly should make out an apphca.lii.u in due form, and s'-nd it to hi.s coinpauv, to isa. It i-, a nia.\im that •' if eilluu- ji.nty tini-,1 suffer iVom the mi.stake.s ol' the agent, it must be th.(^ party who.se agent he is." Ffii-ni. Ins. Co. p. .M..,nn, 111. Appel. Court ; •■ Allen .Mass. 56!); 2:> Barb. N. Y, I Slorv IJ. IS. 0. C S Wood & M., G. C. U. S. 529. i:m:s. ii a fiarrneiship agency, each partner has all of th power< of the tivni. I'pon the death of either of the partners th.' .igeiioy ,;.ea.se.s, and m w arrangomeuts will have to bu made with eoiii|iaiiie,s of the agiiiey. Ins. Co. I). Ins. Co,. N. .\ra hi.|., «. C Ins, Law .jonr. Hi'.), Dill its of an ag^.id iu cases of lo«.g at hi; thi.s Title, ij U''^<>S»* agency. Soo lIHSiipviniliiililiiMHHI 4'j.i: COMMON C\I{i;iF,l!S. AGKNTS' UONDR.MKX. 135't;i* TliP surely liniiM (IcliviT to till' ('(iiiiiiiuiy ;ill |ir(i|ii'tty l>e- loiii'iii'r Lo it, wliicli rtluMiId ciinic into his liiuids as Hifcnt, is liiililo LlnTiMmder wlii'iinvcr the agont hcujomoa in ainiat:', to liis CDiiipaiiy. (9 Ins. f.aw Join-. (Kil'J 2. It is lint neci'ssiiry that llic coiniiiiiiy should notify !Im' snivtiivs upon an au't'ut's l)oiid of any in'ivions didin(|iieiK'y. (Tlonif Ins. Co. N. V. v. JfaUoway, S. (1. Iowa, Jan., iSSf).) Firu Assoc, of Fa. w. CliiU'l""" '^ * "i i^- ^' Pliiltuleliihiii ; ,5 Ins. l-aw ,Ii)ur. 824. ,'). yi'itlicr is it necessary that tlic coniiiany'a oomniissfnn to till' aLjent sliould bo reuowci] annually. The rcquiiv.nR'nts of iui annual Stato license dotvs not, i'imIuci! the aj^iMu'y to an annual I'Miure. (Scot. Com. In.*. Co. >'. I'liuniner. S. J. C. Mass.) ■1. In tile event of the, hoiidsinau's diMtli, where tin' heirs, executors and aduiini^trators were ,<;everally a.nd joiittly iiouiid with the agent, .such h gal iviire.sentativos are hound IVir any dt iiii|ueiieies of the agent occurring during his agency, and after tleath of the \»ondsiiian. (4- Ins. I,a,\v Jour. Sij('.) 5. .V geui'ial agent is liilde for the dofalcations of lii;^ suli-agent, and an action might he had to recovei via' sums allegi'il to lie due. ^^hoIli^ Afui. Life Ins Co. (,'. ll.illoway, S, C. Fowa, dan., 188,"..) COMMON CAHRIKHS. |;{'>S. |i no! uni'i'ei|Ueiitly occuis that ckiujiid}!, r.d.rrifrr ri.-^k'j .iie covered l.i\ insuiance, and in case ot loss under such contract it hecomo.s inijiortant to know t)u' liaiulity of the (•arvnr to ascurtain the li.il'ility of tiiO underwriter. 'I'lie following are the, geneia! )aiiici]iles apiilicablii to this class : — lit'l'l. A roriuiion nirriei', an distinguished from a lar- ricr niilni'if Jiire, or a /.wivafe c/irrier fur hire, is one making it a regular liusiue.«3 to carry or transport persons or [iiojierty /o/' /u'7'c. (7iiii>j Aiigell on Carriers, ch. II., 111. IV., 4j5} .17, lo. Civil Code L. i:., It;:2 ft sr^y. ; Robort.s c. Lfoirier, '20 L. 0. J. 37.S ; ■> L. .V. 302, 17;'. COMMON CAUKlKltS. 495 man. K.rpveHH coTDipariirH arc coiirDi.on cicrnrrii wIkmi nsiii;^' tln'ir own caiH or oilier im iiiis cf eonvoyjiiu*. iJiit wlicii tli(. niilroiid (•oinpiinics Innii^li (Ik; cars, cnitcs, etc., for the traiis|ioitati(.n of tlicir frcit^lit, tlic; railioad comiianios arc tlu! varri'u-s^ inul ih,. rxi))r..ts cotinianicy an; hcM to Iju the agcnt-j ol tlic sc\((ral uwiiurH, N J. Kt. Nftv. (,'o. V. MiTcli. Hank, Mow. .Ul; X) Unrh. N. V. -ish ; iijli, M V. I^ Dorr v. N. J. Hi. Niiv. Co., 1 N. Y. I.sr, ; Jeri'iiiy Vnr. jC. ; :i lio' <<{ I'uil. 117 . Viip'll Car., S VI',. I.*{F"^ .4J7. I KM) 1 ti Wisconsin, I, von, J. " Wlii r,. 11 <;,„i„i'./i iitiriiT (111 jicconianc. wiih lii,« coiitrncl) ooiivovh jroods ovt'i' oiilv a jiortioii c/l Ihr nmlf Ik'Swocm I.Ih' points of sliiptiioiii and ooii-iirii- iiiciil, .'iiul hulilH tliciii t'ur (Iclivciv to .some comicc.tiiig ■.•'irricr, (lie liilicr is tlie owner's or c;onsi;:rit'u's M^icni U. receive the ileliver\ (Selmei.lrr v. Evans, 25 Wis. 2\\); ftml liie Iml.iliiv ..(' il,r t'lrriner ii.- n r,,„n,inv ntrrier contiruio^i until the good-; are readv ibr deliviMy lo ,-u(;h a^enr, anrl hi' has had a reasonalih' time to take tliein iuva\ " l^t'lH. IJ ,1 coiiiruDii carrier uiiitc with lii.'^t loisiucss of carrier that, of triirrhoiisen,a'/i at either tcrniiiiatioii of his route, lie mav receive ooods as ■ir'i.r('Jii,ii.s,'-i)ioils for tran-iportalion, lie at once assumes the responsihilits of rarricr. (G. T. IJ. U, o, Giitniau, W. C. 477, 8. 1.'. L. 452.) i:$.>.Ha. V, h(! carrii'r is in lia Me foi (let erii. ration to I 'I II II enrned (inniiij; transp^wlation arisino |V,,ni aiiv mh ■rtiiit defect or teinhiiiey to decay fl<»<»7), or neoliiieiiee of th 0\v iier ill projierly preparing them for siieh t HM as from leakage, fenaentatioii, deatli of from want of due caro. ispoiUitioii, aiiimal.s m irising Angeli C ; § ■\0-2l3 ; Civil Code L. C, « ir,75; 2 Fveut. ( Story llailm, i* VJla ; 6 Watts I'n. .n omm, 3!i',i, fiOO Wl lere hruto tninials are trati.>pr>rie(h carrier.-! ihle for their carriiigo and di^Iiverv as for otl are re.-ipon- riU( di responsibility will not cover hiim peciilif ler goorls ; hut s occasioned 1 v the 1 risks to which animals are necessarily exposed by ^m HHIBPiP 496 COMMON (JAUlilKiW. till' iiiiurc. of -iur.li tr,iu-|ii»riiitiiiii. imlIi'T oh vossuls ov mil- I'oiul I'lus, iiii'l \viii«li !)>' the rxcn'ise of cure and dili^fuce caniiMl tif! pi'i'vciitoii. (Cliiik v. Uim.Ii. X: Syr. It. K , It N. V 570.) IH>>1>< A commoti cuivicr is responsible na inauror of tl Hi ''i HV. i.s uitiiisttMl to liini fur triinsjiurtation, fnuii il tuai.' of i'(.'i>'iving until Jilivciy ul' iIk-iu to the ton.ui.'iiiH: ni die |il;i('(.' of (iijstinalion, airuin.st injni'v or loss, iinlosH il Ixs occ.u'-ioni'i 1 l»v '-till', iit't of lied" ol' "of Oh pirhH even iliiiii''li uo a* ei)i'ii(i/, liial negligence exist. (Ci\il Code i.. C, § fiiT"' ; l'oi'Uiii',1 /■. Pittanl, 1 Tenn K. J7 ; McAmIud' o. Sears, 12 Weml. X. Y. 1!U»; 1 T.thi \l. 'JT; 3 Ksj:. U: , 4 l>oiigl. 128.) " fh/ tlf<: (vf of G'xl" 'liiKilis natiM'al accidents, .«ue,h an ligbdiiiig. e,irllii|Uaki', and t.ein|'.esl. aid not ac^'idents aiising from tl, ■ fault of luau, willi oi' without negligence. I^SiiO. ■ PuJilic (nwrnicK." J^osses cnnsed \>y " cueniicf^ of ll(r itjuiitvij " f'tiibraco sucb as may b(> caused by acts of \\a!ft!i coniinitti'd iii/oinnf v.itli ^vln(■h tiii' country luay \u- at war, and by piiuU's on the bigli seas. Tliiivi's. rol)l>trs, iiisurgenis and rioters ar>' not iiu hided .inioiig " puhlir ''iiunu't-.s." Arig(;ll iV Anus Corp. ij I'Ot). I.'t<»l. DitliiKNi'f : He IS linimd to use Ji I Igrnri', and peiiiii'. Mn nniuce-^sary dtdiiv in the transportation of goods intrusied i., In-^ care, Nor c.ai 1 III avail Inni^eil ol liu; e\cepiioiis tij his liability which the law has created, unles-i tej I- fnuii I'r'/Jnjrace and ftuli hii •If !!lnckstock ( K. 11. Co., 1 IJ i.ii w ii:t! cle)»n(- of n<'!;;li>;ciic(j liat* b''eti occasione'l or conlrilmifil lutlit' lo'-^. ,\ carr cr can no inorc Ptijiiibii. f.ir a sliglit licgroo ol u,<.'li- gcncc than li<, can tor gros- nej^llj;i'iii'c. ( I*t74.). MU'limls /. N. Y. C R. II.. :w N. Y. :>Q\ ; Keel v. Si>aiil(liiig, liO N. Y « 30. i97 rASSKXCiEIl CAJJlilEKS. I !{<>:<. I. •' In rc>;^r;ii.,i (;,, 111,, friuis]K)rtatiuiiof ])as8tni,oration, but al.-o any defects arising front want of can' nr s-kill m th<: nnuuifactiiro of the niacliinery or materials used in the slriutiire or opratioii of tlie road, whether discoverabh; by any exercise of care and skill ou the part of the iiainediate agents of tlie road nr n.jt," (Hegennui n. West. li. U. Co., l;3 X. Y. 9.) Dorr. (1. N'. J. ,"^1. .\iiv. Co., 1 .V. Y. .t-^r, ; 3t; .V. Y. ,37s, o. "The carriiT is also respon.sible for the had conduct of it.s eniidoyees. if siieli eni[)loyee is retained in the employ of the company ' (Ifiitlieiford c. Gr. T. Ji. 1,',, .20 L, V. .1., 5 i! L. -183.) I'mln'ti ( . La CdUip. du Noni, « L , N. 1 1 1 j frigalls i . iJiUs, ;) Metof, Mass. 1. i;$<»l. ir a ecjniinoii carrier of jxusscngcrs and of "oods ,uid mi rcluindise liavo reasonable groundt, for refusing to re- ceive and carry per.sons applying for passage, and their ha'^'- gage and i.lb.:r (irep.-rty, he is himud to insi.st at tlie lime upuu such ground, if desirous interfeituice is attemptiHl with his control of the jiroperty earriiid, that the owner of the ]aoperly accompaiues it and keeps a watehlul look-out for its .safety. McI)oui,'hI1 i>. Allen, 2 L. C. 11. 321 , MenouKall .i, Torrance, 1 L. C. J. i;'.2 ; Roli.sni r. Ho,.l(fi-, ,"! L. ('. ,1. S6 ; Brotou v. Gr. Tr. 14} , ?. H. C. 2H7. j:fi4H>. [ )., - issen gt-rs nmsl call for Iheir baggage^ at the entl n[ t)ie route, witliiu a reasonable lime, or ihe resjx sibililv therefor a; jewidry carried as bagga.,/e, forming,' a portion of female auire, the family bein^' on a journey. Civil Cxle L. C, i 1071 : Cadvv.i.ll.vlcr - . Gv- Ti , Ry., 9 I. C. R. log. A VMlch, carried in ono's trunk: })ook.s fur read iu^ or amuse- mont ; a harness-makm'ri too.ls to Uie value often dollars, and a ntjr, have all been hei.; t, be baggage. (.Merrill c. (Jriuueli 3U N. Y. o9i, Oil, Cl/t.) l3«Sa. U ha^ been held not to include ^peeit beyond what the traveler might fa.irly expect to require for his ex- pen.ses and necessary i>urehase.s for himself and familv, including/ the replenishing of wardmbe, and calculating for' such con! tingeucies c-f sickness ^u' accivlent as might not bo considered altogether improbable. (Little Miami K. 1!. Co. v, Kiiivka V. & M. Ins. Co., 8. C. Ohio. 188L) 1»«.Sb. l^aggage of i.assengers checked throu<;h to desti- nation over a number of connecting roads, the company become liable for the whole route. (S Is. V. 37 ; 2 E. 1). Smith, X. Y 184; 7 Rich. S. C. 158. ) IJa.ogage cheek is equivalent to a bill of lading. (Eedfield liaiUvays, i$ lL'8.j mniiliiipi r>uo I'ASHKNGEK IIAtlGAi iK, I3HSK Afri'(liaii(lis«! cimifil in tiiiiikH us Ixigndnc, ^^■itll- oiit till' knuwlrd;^'): of tin* cjinivi, iy iiit. jirotcctuil U8 liiii^- gn^t'. (IJI07. ) M.'iritii' Iih. ('o. f. J!. IJ. Co., Ciiiciiiniiti (/uiiit. A trunk "I ji\vi;lrv Hrtmi'le>< i.s not Ixiu'j^'iige. Ill ()lii(i, inr/i'iitar's ((.uiIh to flii' viiliic o|' Ijlty (lollnrs, oarncil in a trunk, wiTt; found hy ;i jury to be tlic rniMMi uI'Ih tools of a caipcnter, and wi-rt' hM to bo bii<:,t:u!.;v. Ill till! sanio State a vatrh worth ninety -fivo dollars Wits liflil to lit! liaggagf, and " tlic traveler''^ Iriink a laoju'r ]plai,'i' to carry it." Surj^'ieal instiiinKnts, in the case of a snr^eon in tlif army, travi-linjL;' witli tvorips, constitute a part of his l>aif;_'age. i:(TO. In Sew York it was lield thai the Icrm 1iii,>,'i:agt' iloea not |)iiHH;rlv inclnde mowif (.■arvied in an ordinary traveling tiuiik; nor an> ariirdo n-nally (•arrnd ubont, the person. In lUliiols. a ]iau' of 'IkiIIuii/ yo'.-7o'.s and a pocket pistol, in a carpet bag, W'-re licid to be baggage. In Ti'unest^ee, a sUver vvatch wortli about thirty live dol hu-. with medicines, handcuffs, locks, etc., wdrlh aixiiit tm iity dollars, were lield imt to be baggage. i;$70;u H' a passenyer retains his baggage, or any jioilion of It. on his ]'ers(ai or in hi;; o\\ ii hands, ov witliiii his sight, instead of dchvi'iing it to the caniei or jns serva,iit, the carrier is not liable, as rarrier, I'or any lo^s or damagi' thereto. (I»<>*>. , (^MudLrett t'. liay Stale (-o., 1 Daly \. Y. l.'ii ; Torrance c. liichelieti Co., It' L, C. J. [V.]o.) SLKKI'lN'r; CAR < OMtWMl^.S. Ilifilb. While sleeiiine ear conipanie-; aw. ueitlier toninion Ciuriers noi innkee]iers, they ,u'e I'ouiid, as other bailees, tu US'' ordinary care in the protection of ]'assengersand their baggage while asleep in the ear. Tlie (| nest ion as to thf lial)ilir}- of common earners for lost articles, caui^d alioiii the jierson or in the iiiiiaediat(! possession of passengers during sleeping Lours, has often ari.sou; KAll.WAY CUMt'ANIES AS CAltlUKUS. 6U1 liut the decisions m actions a},'aiii8t ship and Htcumlio it compa- nies an; hv )i<» iii.jans liurmoiiioii.s. Tlio i,'r'ti<'iiil dootiine in nuch ciise^, iiicliidinj^ ,-ilrc|jiii;^' cars, !,■, us ^iv,.|, in tlie case of J»iche V. WoodrutrSlot^piuy Car Co., Indianapolis Sup. Cuuit, Jan., "'111" lacillmt iiitii'i.,s ut' iMi.ncv lost ur >l ovpt'iihe.«," I'llliiiioi (;.ir Co.-.' I'ljildck, S. (; Tevus; Cro/.iere. lio«t()ii,(.tc., t'o.,4.T How, Pr. N. v. .|<;i: ; liiitin i. Suuili. I'lillnnin (.'ar Co., fJeiatnil Law Jour. 59 ; U Allniur Juiir 110, 13 id. 221 ; i3 N. V. S. C. 4.57. K'AILWAY C'nMl'AXlES -VS COMMON CVKKIKIM. l.'tTl. llh'i.i), in lllinoiN ; "That iuilr lll7.').) The .d)ligiitiojis and liabilitie.s of a coht.viou cirrh'r arc not do|.('ndent, ojion contract, tliouyh tla-v niii,y l.e modifled !uid liiuited Ijy contract; they arc imposed by the law, from the jaiMic nature of ids eni])hjyiiicnt. Tlic liability of a common, carrier of goods and niorohari- dise attach(>.s when the prupcrty p.i.sscs, with his ass(>nt, inio hi.-< )io.SM!.; tninsportci], or the fact thai, the carriage is h)a.Ied hv the owner. The common carrier is an insnicr of the property carried, and upon Idni the duty rests t<. see tliat the packing and conveyanee are siieli us to secure its safety, i;J72. WiiKN- Li.vnn.iTv Ce.\SK.s.— Hki.d : ''That, the liability of the vvmm<,it •■arner commencuiir witli tiie receipt, of the goods, it !iece.«sarily continues until they are delivered by bin) at their place of destiiiiUion, where the owner or con.-i-nee is bound lo be pre.sent and receive them, and pay the Ireight if it 1ms not been previously paid: and if he i.s not piesent tu receive the good.s, they can be placed iu a safe and .sullioitut wareliou;?e, ri«i2 UMl.W \\ icMl'ANIKS. U'lu'n the liitltilil;/ if'/hi- runif- 1,11.11.1 utnl llitil of tlic wiiri'liii:i."tMimp loni- l"^ M.'tcf. \U!>ii. 47'jj -il S. H. KO , •» TiTDi K. r.') ; 2 Maul. A Mvl. 172 ; i K»>nl Cuiuiu. fiui, 5UJ ; Siorv It.iil , j ^ ki. i:t7:i. IvsiKNi' 'ii' LiAHri.nv; Tlic njceijil ')f n.Hiils I»y Wiiihioii oatriei's is nil that ]■* nftii'ssaiy to fix tliciv liii.liilit'/, m that if a \ni\vA N' tlclivfrcil to a railmatl ('()in]iii.iiy mnrkt'd fur any j>la('f oW tlioii route, .iinl flicy rcrcivc il in cuvry, tliey aro bniiinl liy ihn rule nf tKc ('(.iinnoii law, il tin- |iiut»'1 Ix! lost, lo acciiiiiil til till- iiwiici I'lii \t< valiii tjic (■(HillMct .f (■u>f(M|y In |iliiccil th'.' parcrl. (I.'l'"i7.; MiT.in. l-'Khitiiir ovuh Iiikkium- R.ui.iiuahs.— I1ki.i>: " Tlwil i'OMNi<;ri. ctt> ui^;. .)ili5 l)\ niiliMii'i> iui ih'i vi'(|I1iim1 ill cii-o of JoH'j iir li.uiiiiyi', ii) liK'k for rcmunerntioii to iinv oilier |iiiiiv tli;iii lli<' one to wliuli ilicy ■li'liMiui (lie ^'oo,|8." (IMO-la.) )[o.lv'.- Kiul'x. i.l.M s M.rs A: W,'!. (,,"e.v,;1,. C'l ; :; Kii;;. I- Jk iv|v. )"; . is iii. In Iho L'liiicii Slates tsu'.ji >^ iiii|(aiiy i~ oiilv hohl liul.lf! ovcf its own road, cvcipi vvli'ic 1 ai'li uf ilii; st.'Vi'ial corniianies give bills af latlini.' i'nv Uu- iiuirc roiiti!. ■j;i Vl, l( ; 1! lliU N S. 1.".3; '22 Conii. 5ti2 ; I (liiiy Mass. .".OS ; 4 Am l.aw Rep. -^M. Kkmov.ai, 1(1. Common I,\av I.miiiihv • Hkih: '• Tli it llif nciiving coni|wiii> Ciiii at till' outs. 't relicvr itself li'oin itn i oiiiiiion Imv iiuliilitv Kv ,1 (i|M(:ial and vlefinilt ni^nu'iiipiit " Wells c. iliul. R. 1{. R , i;» \. Y. \M ; Pcrkiii^ c. »,iii,., j,/ l!i.;, M.TtJi. lin Co. r. (.'itlel.a, JO N. V. 178; Ho.^wcll v. Hudaoii K. K. U. t.'o.,. 6 lio,'w. iJiO ; Dorr f, N. .1. Si. Shv. Co.. 11 N'. Y. 48.-. Irl74. Ni.(a,ii)KNi!K.— Hki.d : " That il wu.s ilie liiity of the coiniiuiiy to jirovide rea-'-oiiiiMy fiifi- ilrpot ImiMiiij;'* iii wliicli iVfiiiht aiei property fiun.H- ported over its road itv^lit lie seciirelv stored wlien ''onvenien. c and tiecostsity required tiidt 8ueh projoriy sliould Ix; plai ( iii si. Snrnuol c. Ednionsiou, i I.. C. J. Ht) 'la tuul.^ ri;J77. .V, Y. Cent. II. I:,, 3.1 \. V Dt;i. A.S .\ W.\iti:H(r ^,M.\N 1<{7iti!(H'sEM.vN. - IIki r> : ''Thai the court beiow jiroprrly instnicteii tlie jury, if the dt jnt was I. timed by rejison ot' the 'Spontaneous coiiilpiisiiun of wool-wi te stored therein, aiid \ , tiie fervaufs ii, cliurKe of the de|H>t would iiavc (Ji.scovered such daiii/erons article, and so stored i( that, in ease olspontane- riAILWW COMI'WIFH. .lOS .m« 0,->mliHtiiMi, it woiil.l not liavu cmlmiifiTPil the nitin- contfriin ul tho hiililiii>! ; mill il ilie\ fuil^il to to .l.i ilio Je(Vnilatith wvrt (.imrnvnUU- with n('j;lixini'(i nn warnliouxciiich " ia7«. l.iAnriTv ,n V\'aiikiicMsi.jman, -llri.n : " Tliftt li.i' roni|»«ny, • w* ix wuri'lioii-i iiiiiii, \\nH liable lor all diuiinncj' caiiHcd to tlic wool Uy ihe WUiit of ordiiiin; .lire ittnl ililigtMice ii) ^torin^; iiij know of noroahon iii law or pnlilic policy wliicli rcqiiireM iviiy "'lior or ilitl'tTMit riilf or liiil.ilily to U> uppli. .1 to rnilnxnf ,;.mi„i,ih-, whm arliiiij 11.1 irarrhoiininHH, than iw )|i'r.luir;i(' of till liutit'H incident to iIh' bnHint'«N ni wliich th-y are cnita^cd, i.nd tlif railroail cimi/ani/ whh lioiind fo i'Xor(;i««> tlu^ hhuw d» grt't' of ili/i;l>-nrr. If . ilie conipany i- unwiltinj,' to aHHumc that rt'sponr-d^ility, i( Hhoiild, wlicn I Ik- ii-anHit is IcJ, drposit ihc proiKTty in tiit' wimdiO'.iHe of .1 lliird iM-u." (1;|A4.) It v.hh nKi.n, iiirtiivi-; "' 'I'liat a railway company loh.'li* l..' liahl" ii|K.in (he Mitiiic lot 01 vvooj, HN to a porlioii, a-* nirricr, and, aH tollic risi. n.igla tic liiililc oriK an a wnnliniist'iniii." WcUonald i>. Western Ity. L'n., 21 N. V, ■tu? ; l!i N. H. 71. i:?77. VVIicru a I'nilway cotiipimy pluctKi poods in cnio of it.s UiuvlidusLs Iu('iitc'(l so ;is to be lialilo to l>e ivaoli.'d — iiiiil \va^ riMclujd liy ati exli'iionliiiiiry riso of a iici-'liI-oDiiiT rivi'f, liy mIiIl'Ii means tho good.'j wore damaged: — Ilt.iii: ■' Tliat Ihc coiiipaiiy \va.« Inihk' on the j»ronnd thii'. it ua- //, «///- (jfuirlo place sroodH in the wurchoune, aJthonjrli it was believed saf.'." Tlie conn further said : " If, liy the carrier'^ un/H./flure property eon, inUted to him is bronj/ht luider the operation oi' nnliind .niisci that work it?* .lestruc- tion, or is exposed to such Iohh, lie is respoiih-ilile."' (i;J7'l,> ^Mi(;haels v. N. V. Cent. U. H.,;;OX. Y. 5G-t.) i:i7H. Dkl.w • In th..' Uuiti;d States ConiL tin' jmy in the ca.so of (Jharlos W. Marsh uoainst tlio IMioliig in (Joiitrul Eaili'oad Company fotni'md a vufdict of 5!2,550.70 f(jr tho plaiiitilV, to pay fuf goods dehujvd in transjiortatiou, and tliun meeting with destruction hy tho hurning of the dofeiidanl's wiirehoiise at Detroit. (l.'tOI.) Pontbriand v. Gr. Tr. Ry, M. L. U., ,'i S. 0. '!! •. Delormo e Van. \\ !U., 11 h N l(i« : Civil Code L. C, § 1G78 ; Heeit w. iSpanlding, :i(t N. Y. -iSO -, " Har- muuy V. Bingham, li N. Y. 99 ; Conger v. Hud R. R. R. Co., tj Du(;r N. Y. 375. PARTNEKSnir. 1J?7!». Ill the adjustment of lusses it not iinlVoi|ucntly becouio-s impovLaut to know who are and who are nut partners in interest as claimants. The foUowinjf will Hufhoiently illus- tratt'. thi-^ jioint to tMuible the adjuster to ju resp< ct is ^•ery broad, eaeli being consivlered the agent of the other or others. PARTNERS in r. 505 story Part. 1 ; Collyer Part, i 195 ; It Meea ic W. Ex. 11 , ,indley Part 192- 1U5: Civil Code L. 6., 5 5G36. i;i.S7. A partner, as such, has an insurable interest in the 1(1 L'ht insure his jiartner's interest as well as his own. l\\ii it' the insurance be expressed to be on his sole account, it must be limited to his individual share. 2 Otvines N. Y. 203 ; 2 Johns. N. Y. 329 ; Ins. Co. v. Hall, 12 Mich. 202 ; 2 Diier Inn. 22, 24; Irving r. E,xcel:iior Fns. CIo., 1 Bos« . .107; I Philip.'; lus. 190, i 380, ami authorities cited; Collyer Part., ? 438 ; Siory P.art., i lO'J. The interest of each '][)artn('r in the assets of tlie lirm is not a title to nny ali(iUot part, as a half or a (ourtli. Ivich partner being liable in sol.ido for the engagements of the partnership, has a right, termed his equity, to have (he tirra as.sets applied fir.st to the payment of the firm debts — an e(|uity through the instrumentality of uhich the partnership credit- ors have a priority over separate creditors, to bo paid out of the partnership funds. (Story on ^'art., § 97", Collyer Part. 65, GO.) . The interest of a partner, therefore, is only such a [iropor- tion of the cujiital and profits as, by the original ;ii'licles or agretnnent, lie may be entitled to receive after all of the debts are paid and the affairs of the concern liquidated and wound up; hence, each 'partner has an insuralde inteiest in the entire stock, and on rijceipt of payment for a loss on insur- ance he must account therefor to the partnership. Murray II. Bogiirt, H Johns. N. Y. 318. |;{.HS. Tl'i' adjudications touching the eflect of a transfer of interesr iiuo'\. "';.;rLnor8, underinsurance, have been very con- tr.idic'.tviry, de]'>eiiding in some instances upon the wording of tlir o u nation clause. (H^.SiS.) The sub ect will be cunsid- ered uide" two phases ; — Pirf.t A tiansfor of intereat among tlie partnir-i ilieinselves, one mi'mber Belli/i;,' Mut to ti>o others. S'toitd. Wiiert' oiin partner sells to a ntrangiT. thus introducing a now meiiilicr into the firm. F'lrsst : Alic-uaoioD among partner,^ dc js not avoitl t;he policy. l.'$.S!K TJiider the /"'.s"^ head, i* is held generally in New 506 PARTNERSHIP. York that such change docs not avoid tlio policy; so also in ( tiHtrgia, N(!\v Hampshire, Alabama, and Lower Canada. Also in Teiino.ssee and Oliio, in tlie .disence of the ulienatioii (jlauae. Wilson (.'. Merc. Ins. ('o., 16 Barb. N. Y. 61 )j 1 Hob. N. 7. M)\, ani.med 33 N, Y. 405 ; 19 Abb. Pr. 3'.J5 ; Uovised Codo, Gooigin, 5 27i;(i; Civil Code L. C, i ;i577 . Holl'inan r. AUna liH. Co., 32 N. Y. 105, iviid ciisesi iliere reviewed; Burnett i>. Enfanliillomo lus. Co.. S. C. Ala., 1872 ; i Ins. Law Jour 134 j 50 N. H. 297; llobb.s u. Meiiipliis Ins. Co., 1 Sneed Ti'iui 44t ; VVost v, '.'itizon:* Ina. Co., 27 Cliio; I'liwera v. Uiiardiim las. Co., S. J. C. Mass.. 15 lus. Ijuw Juur. „0!). ]:i!IO. I'eu Cuntua ; A y alienation among partners voids the policy. Gordon 0. .Miami Val. ins. Co., Oliio, citing. Halto In.s. Co. v. McGowan, 16 Md. 17 ; Hiickley v. Gainnt, 47 Piiiin. St. 201 ; H iward v. Albany Ins Co, 3 Deuio .\ Y. .301 ; Drehrer u. .Etna Ins. Co., 18 Mo. 128 ; Keely v. Niagara F. I. Co., Ui Wis. 523; Dix i>. Mitc. Ins. Co., 23 III. 272; 1 Parsons Ins. 30, 57, ')S; U'lgga V. N. C. Home Ins Co., S. C, N. C, IKS.t ; Holloway r. State Ins. Co., .S. C. Iowa, lH-14 : Klandora Ins. 42s ; 2 Ins. Law .lour. S4.' ; 2 Peters D. S 25; i> Casey Penn. .Ill ; 11 VVrlj^lit Penn. 204; 33 hid. 17!); ,51 Maine 110; 10 Oliio .'547; Tillou c. Ins. Co., 7 Barb. N. V. 570; ul. C. A., 1 Seldea N^. Y. 405 ; Murdoch v. Ins. Co., 2 Oorast. N. Y. 210; Girard P. A M. Ins. Cvj. v. llnhliard, S. C. P KS,-*1, Id Ins. Law Jonr. 42 i ; Ins. Co. v. Doale, 18 Md. 52 | Sherlzer v. lus. Co., 10 Md. 510; Piuly v. Lycoming Ins. Co., 30 Penu. dt. 811. Serond: Sale by one jtartner to a stranger, outside of the firm, voids tlie ))olicy. Hobb.s I'. .Mcnipliis Ins. Co, 1 Sneed Tenii. 4»4; Firemen's Ins. Co. Bait. v. Floss et >il., Md. C. Ap., June, IHSl , Wilsford v. Wood, 1 Ksp. 1H2, 183 ; t)id ^.f al. r. Pd.stttI, 3 Camp. 340 n.; Ege c Kyle, 2 Watts Pa. 222; McGre^'or v. Clevi'land, ,"> Wend. .V. Y. 475 . 2 ('tceenle.iC Kv., § M-<. Piou Conth a : Dnmnen I'. Loudon Assur. Corp., U. S. S. C, 13 Ins. Law Jonr. 38. The S. C Minn, declared the insurance void. Ou appeal the U. S S. C. overruled the decision, and d''elared the policy valid. 1>S!M. Tlie SuDicnK; ( 'luiit of New York has decitled that as the statute makes the use of tlie word " Co.," in a lirm nanio where there i.s no p.artner to represent it, a mi.sdi;meau« or; oontriict.-* made in siieh tina name are vtiitl. (Laws of 1883. rh. 231.) Clark I. Ins. Co., 17 Mo. (' . Ap., 1870; Robinson 0. Ma^'arity, 28 111,420; Breuuaiic Pardridgo, S. <;. .Minn., 1 Wo.-it Repr. 5t2 , 1 Cliilty PI., 10 Kd., 27 n. ^. l!fi!>:;i. Policies are sometimes written with the phiase "as noic constUuted," re])resentiug that, while the old linn name i k I PAROL AGREEMENTS. 507 is retained, some one or more of the pavtica may have re- tired, or new ineinbern entered into the firm, ITnder this jihraso the piirties actually constituting the tiim at the time ot the insurance are the parties covered by the policy. PAPvOL AG UEKMENTS. i i:Sfl!S> A 2)arol contract tor in.surance differs i'rom an exo- culod policy in the fact that, in case of the latter, the holder (van sue in it court at law, while under tlie former he is compelled to go into a court of e(iuity with his case. (Taylor v. Phicuix Ins. Co., S. C. Wis., H Ins. Law .Tour. 854.) The words verbal, jxirol, and oiul are very frcqiu^uly, though (UToneously, us(m1 as synonymous terms. Their leyaL signitications are as follows : — i;j{»4. \'iciiuM. : Krpresse.d in, wonl.i, wliethcr writli-ii or apokcn. It i* iuiicciiraip to diHlinj^uish verbal from vritfen, as coiitracte arc oqiuillv cerfiuL wlit'ther the words arc written or sjjokoii. J;J{)."5. Parol: By wordu, including verbal, oral, and written, ^vitliout fceal. I'urol cridcvct: is evidence verbally delivered liy :i witnewH. liJtfK}. Oral: Hi/ won/ of mouth ; Mpuken, not wrifien- Vfii-bal ami oral contracts are simple contracts, or contracts not of .specialty or record. W)Ut(n contracts are those evidenced by writint;, Tiie only ili^linclion between r,erlwl and toritteti- contract!^ i.s in the (n7. VV'^h'itlier a contract of insurance will he valid, ex- co])t in writing, is not definitely settled. In Ohio, (.icorgia, and Louisiana, such contracis are reciuired to he in writiii" ; in New York, Alabama, and Lower Canada, jxtrol contracts are valid. (11J$ c.f scq.) Cockrell v. fna. Co., 1(3 Oliio R. 149; Waldeu v. Im. Co., 12 La. R. l.^'. : Cini Code L, C, § 2181 ; IVrkinB v. Ins, Co., i Wend. N. Y. i-iS. The vahdity of parol contracts in the Province of Quebec is doubted. See Montreal Ins. Co. v. McGillivmy, 8 L. C. R. 201. 2 L. C. J. 221; Moore's Priv. C. Cases 89; 9 L. C. K. 488. 608 PAROL AOItEEMENTS. IIJO.H* A contract cannot cvid partly in xvrltinij and j)artli/ i'lj parol. Agreenients luadu priur to the U»ue of t.'ie policy, aiul not appearing therein, are held to have been waived. (1407.) Whitft -. Ashton, 51 N. Y. 280, Bignlow Estop. 437-441 ; White (.•. Walker, 31 111. 137; Fiwtoii c. Fiwton, 28 Mioh, 1.59; Dell v. Ins. Co., .'". RoIp. La. 423; Union JIul. Life c. .Mowry, U. S. (J. C, Oct. Term, 1877; U Paigo Cliy. X. V. 278. The principles governing parol agreements may bo stated as follows : — 1!{0!>« If made by an agent, it must be within his author- ity, in oitle. '» bind his principal. Hariford Ins os, !)7 N. Y. 180 ; Ins. Oos. v. Colt, 20 Wall. U. S. 5fi0; Ins. Co. V. Howai.t ' ■.'o., Jl) How. f'r. N. Y. 318 ; Coreira, Union Assiir. Co. ». State et «/., S C. In '.., Ins. Law Jour. 333; Perkins i'. Wusb Ids- Co., 6 JoliDS. Chy. N. Y 485; Same ou Appeal, 4 Cow. N. Y. 045. I400. Ayreements for insurance, like other contracts, require the nuuiial a.ssent of the parties ; and remain in force until .such a policy as i.s agi'ccd for is made out, or tiie claiin f(jr it has been waived, ( 1 IIS.) Kelly IK Com. lua. Co., 10 lio.sw. N. Y. 8-; Bragdon c. Apploton In.a. (vO., 42 Me. 'iW.); iiaxion V. Massassoii lus. Co, 13 Allen Mits.s. 320; Port t. ./ICtna Ins. Co., 45 Pari). 3.51 ; Com. Mut. Ins. Co. v. I'nion ln-5. t^o., 19 How, I'r. N. Y. 318; 4 Ins. \jA\\ Jour. 405; Revere F. I. Co. i'. Cliamberlain, i'^. C. Iowa, -Mar., 1881, 11 Ol. A party is not legally bound to the full extent of all the ordinary risks by an affreeruent to make a policy, the saint} being executory on both sid^s, without some mem- oranda signed by hi:n to that effect. (140^i.) 1 Philip.s Ins. U, j 14, and authorities cited. I-103. An offer to insure does not constitute or create a contract ; and may be withdrawn at an)' time before acceptance. Eliiison ( . Ilenshaw, 4 Wbeat. 225 ; 1 Philips 21, § 21 ; 3 Bonn. F. I. Gapes 04 ; 1 Parsons Ins. 37 n, I'lOIfi. A u-rittev offer by tht> insiirer.s, <>i terms on which th.'v will insure, where the subject, risk and terms are ade- quately specilied, becomes binding on the dispatch oi' an PAROL AORKEMENTS, acceptance, provided such acceptance reaches then ]>rlov to a letter cniintermamiing it, and witliin a reasoiialjlo time, or within the time prescribed. i^H7il.) 1 philips Ini). 18, § 18; Adaras ;•. Luiidaell, 1 B. k Adol.; Taylor n. Mcrcli. Fns. Co., 'J How. N. Y. .596 ; MacUor/'. Fiitb, Woiid. N. V. 1G4 ; Halluck i: Ina. Co., ?, Duich N. J. '.;45. A 2'Mrol acceptance of a written contract for insuriuute is a binding contract, in the absence of any statute requiring sucli contracts to be in writing. 4 Ins. Law Jour. 694,680 : 3 Uomst. N. Y. 260 52 Uarb. N. Y. i.VX ; n Paigo Cby. 647. Unstdmjjed Utters have no effect. (Blake v. llanib. Bveni. In.?. Co.. S. ('. Te.xas, 13 Ins. Law ,Jouv. 151 ; /fi. appeal, 17 id. 43(5.) Mailing of letter duly damped afford.? no legal ])resurnp- tion of its having been received, (18 Ins. Law Juur. 307.) Bi'gidi'ring of letter: While (Government does not thereby liocome resi>onsibl(', it att'oi'd.s niean.s of pr(jving th" sciidino- of tlie letter, 'but not of the contents, which must l>e jiroved (diiualf. (McKenua v. State Ins. Co., S. C, Iowa.) I'lO'i. An agreement to impure is biuilinu' u[Mni the un- derwriter ; but an acce])tance of the offer as made, without any cl'.ange, must be signified, with a tender of the jiiemium, within II reasonable time, if such time be not limit-'d by the agreement, or the agreement will be considered void. I Philips Ins. 18, § IC , Ander.son c. Excelsior Iiis. (]o., 27 .V. Y. 216 : Ins. Co. r. Duffy, 2 K.itia. 1347. Any qualification of, or departure from, tlit! terms of the agree me nf by the acceptor, or any conditional or contingi'nt acceptanci', will annul the contract. (1 Philips Ins. 21, •^^> 21.) A mere determination, or determination without action, can never be au acceptance. 1 lOl^u A merely executory oral agreeiment for a j.'ilicy, so long as nothing is done on eitlier side towards executing it, will r it he binding. But where tlie premium lias been paid, and the oval agrtenient has been in all respects exe- 510 PAROL AGKEK.MENTS. cuted by tlie aiiplicant, it will auiouut to (ioiielusive evidence, by adiui.ssiou of the underwriters, of the constriwtive delivery of ii jwilicy containing the usual provisions, and that the same is in tiieir odice sulij.-ct to the order of the insured, and will preclude any proof to the contrary on their part. (!MO.) 1 Philips Ins II, ;> 14 ; (JoodiUI v. Ins. Co.. '25 N. H. Itiit ; Chase v. Ins. Co., 22 Barb. Ti-'T ; Wliiltaker r. Ins. Co., 21* barb. 312 j -l Ins. Law Jour. 940 ; 6 iU. 514; 5 Punu rit 329; 12 Barb, N. Y. 5'J5. llO»>« A court of L'qnity will enforce a contract to nuike a policy of insurance, and treat that which was agreed to be done as if actually done. The same court may compel the delivery of a policy agreed and contracted for either before or after a loss, and may enforce paymtTit of loss under such a contract before the delivery of the policy. (Oil.) Pfrkins '• ..sh. Ins. Co., 4 Wend. N. \., 045 ; Oarprnter c. Ins, Co., 4 Saudi. Chy. 408; Chase v. Irs. Co., 12 Barb. N. Y. 595; Kolme v. Ins. Co. N. Am., 1 Wash. C. C. R. 93; GooJall v. Ins. Co., 6 Fust N. Ii. !09; Neville II. Ins. Co , i!>0, 4.52. 1-I06. The plaintiff applied to the agent of the defenil- anta for an in->urancc on his house, and the agent agreed to insuivi it for a certain sum, which sum plaintiff imme- diately paid to agent. The agent })rotni3ed to give the policy to the plaintiff in a few hours, but it was never delivered. During the term for which the insurance was agreed upon, the iiouse was burned. ActiiKi was brought for recovery of the insurance : Hki.d; Tliat ihc pdral conti'ict lor iiisiiiraiice ii{)on Cdiiipiairianl'e hou.se wa.'* vixM, nii'l could be enforced vvitliuiu a policy ; lliat tli'' failure to issue a juilicy by tiie ocni|)any after the payment of t)ie preiniuin could not be taken advantage of by it in a court of Equity; thai tbe action of the conij-iany'.^ local agent aiuuunted to a waiver of the provisions in tlie policy a.s to strict proofs and suit within one year. Hamilton v. Lycor/iing Ins .Co., H Penu Sta. 339 ; Audubon v. Excelsior Ins. Co., T: N. Y. 210. 1407. In case.s where verhal contracts to insure have been helil bimling, aueh contracts contemplated the issuing of a polic}' : hence, the agi'eement may be called a contract to issue a policy, rather than a contract of insurauco. Such au agree- PAUOli AGREKMENTS. 611 ment is, in fact, a contnict tliat a pnlicy uf insiiranee sliall be made ucconiiiig to the funu in ordinary use Ity tlie ii gent's company, unless otherwise Hpecified in tlie agreement. Audubon o. Excelsior InE. Co., 37 N. Y. 21i; ; 3 Ins. Law Jom\ 071. ] 107iu Vt'i'bcd (i(fvcenu.ntfi to insure upon certain tcrmg and conditions, prior to the issuing and acceptance of the policy, arc li(dd tu he waived unless inserted in the contract. Hifiginson v. Dali, 13 Muss. 06; 1 Grcenleaf Ev c. 1.5, § 275. 31,'> : Pliilbrook II. Ins. Co., 37 Me. 137 ; Howml Ins. Co. m. limner, 21 Penn. Si. BO ; 1 Phil- ips his. -ii, § er. ; i'l. ir>, n. 1 . UhU. II. West. F. & M. Ins. Co.. 5 Hob. La. 423; Pha'nix F. 1. Co. v. Guriiee, 2 I'ltige Chy. \. V. 278; Eyre r. Ins. Co., (! Whiul. Pa. 247; HuUiiinsoa «. BowkiT, a Mws. k W . Evcli. 542 ; H i.l. S>?. ; 2 Vulin's Coram. 44 ; Todd r. \Av. k Loud. & UMk Ins. Co., 18 U. C. Q. B, lf>2 ; Harris h. Cole, 18 Ohio lltj; 3 lienn F. I. Cases 116; 4 iJ. 2(1H, !»; Union .Mat. Life Ins. Co. w. Mowry, U. 8. B. (3., 7 Ins. Law .lour 203; Franklin Ins. Co. ». Martin, C. K. & A., S. J., 8 Ins. Lftw ,Ioiir. 141, and aiilhorities cilod. IIO.H. A 'iiiemorandum that a subject "is insured," or ".shall stand in.sured," or shall be " lielarvl uKjrte- ment unless expressly adopted by tlie piarties. 1411. "A provision in a charter requiring that 'all j^dieies and coutiacts of insurance shall be subscribed by the president,' relates only to an executed insurance, and does not alaidge the common law right to make an oral executory contract foi insurance." m AD INTERIM RECErPT. 1112. A l)iiuling rcceipl for ninney jtaid us premium upon au insuniuct!, provi.sioniilly ?, unless sooner aete/ the thirty daya* I'unii in the rocc'ii»t witliout the issuing of the ["'Hoy, diil iK)t [>iit an vi\A to tho insiininct! mulfr tlie r(;c.ci|i( (Tiu'L^tJon '•. Cil.izeus Ins. Co., 9 Q. L. li 3 CIrant VMy. 442.) 8. Nut cocered tvy the Ontario SfatvJory condifioti.^ hi iho decision in the case of Tarsons v. Queen Ins. Co., Nov. 26, 18S1 {in he found as an apjiendi.x to the Ontario Jn.s. Report, \. i<, 1881, p. 76), the I'luvy Council came to "the oonchision that the interim note in qnestinn iii not, a pi)lu'y of insurance witliin tiie meaning of liie Aet. (Ontario Stalutr ) I'.iXMNi; ..sa further ai;rfi'i)it'Mt oil the part of thi- iii'^iirer, for a |ieriMiiiuiit ami detiiiite ccjriiriict, \v thin a reasonable lime, .ml it hetonit- ihr ihity of the iiiwiirnl within hiicli time 10 complete lln' .'irninj^enienti." (Coe A: Co. c. Wa-h 1'' A: .\I. Ins. Co., U. S. C. C, I>. N. ,1., 17 Ins. Law .lour. 717.) Mohr Distilling Co. c. Ins. Oo., IJ. H. C, Balto., 12 Iu3. Ltiw .lour. tUl . Ina. Co. V. Johnson, 2,'i F'enn St. 'J2; Kurv r. Ins. Co. .V. A., H Fu.-i- Lnw Jour. 79, 109 ; 16 id. 2:56. 1414. A policy contained the following clause : " Tiie insurance in tliis ajiplieation is to tai7;i,.) JIU 514 KVIDKNCK. Eurlc t't nl. ''• Willi chestiT F. 1. Co., H. t,V Mich., 5 Inn. liiv« ,luiir. 04 ; 10 (iiay Mass. 438; 10 Bo3W. Hi; 27N. Y. Z16 ; Huxter r. Mii89iH,a Ins. Law Jour H70 . Putiiiiiii I., Homo Ins. Co., 7 Ins, Liiw Jour. Tiiio ; Linslry v Lovely, 2(1 Vt. , Wccki r. Ly- comintf In.s. i\>., U. S. C C. Vt, 7 Ins. Law J: The nxlt^, " Ihat vjr if ten agrueniouts, iiiium- biv;uous 111 their toiiiH, (tri'. not to he oaried or cxplnl n.i il hy P.MiOL, is «o ol\ Harnilto'i v. Br, America Assur. Co., 13 J /. it!i ; Lomas u. Same, ;i:3 U. C. t^. \i. 310 ; Curry o. Conn. Ins. (In , ID Pick. Mass. .5.35. EVIJJENCK. vi A8 TO rUOOF OF LOSS. Ills. A statement of the in.sun-d, in a claim for loss witb aflidavit attaclied, is not adini.ssible as cotud'tslve evidence of the amount of loss. The policy in itself is neither proof of the existence nor the value of the property at ri.^k under the insurance. (U> In.s. Law Jour. "JOS.) Aljiddv'U, account lA' loss, anl other piclitninary prool's, are ,sini{ily evidences that the requirements of tlie p(jlicy have Ix'eii complied with in that respect ; but are not admissible us to the amount of loss. "They are not even prima facie evidence to the jury of the quantity or quality of the goods hjst. The insureil cannot thus prove the particulars or extent of his los8 by hia own ax parte statement, even under oath," (Commonwealth lu.'i, Co. r. Senuette, ;' Wright I'a. 16 ; 8 id. 269,) " It was clearly improper to send such papers out with the EXPEUTS. 515 iU;r ■en U) Inot iwu U?i, ItliP jurors to hi? exiuiiiin'l by tln'in in t.luiir dolibcmtioii.s. ]c woulil bu oi'idi' Lo [loi'init tlie iiisiir^il to f,'iv(3 thoin in evidonca to till' jury on tho trial, ami tbo tjrror was f,M'oatc!i' in por- niittiiiy till' jury to oonsiilrr thi3 several avernionts tlu'roin, wilhnut iluiii havinj4 btjuu given in cvidoueo." (ivittaning Ins. Co. ('. O'Neill, 8. C Pa., 15 Ins. Liw Joiir. 30J.) Ina. Oo. r. Lawi'uiici!, 4 Miitof. M m. U ; U. II Cj. i'. Wmil.jiV, ti i 111. '210; Lycoming F. I. (-o. v. Sclirefflei, (J Wright Pa. 188. Such alfidavit, however, is evidence a^'ainst the claimant, and e.stops him from deiiyini,' in a sul^sequent suit any of tiie material fact.s therein slaceil. N. Y. Cent. Ins. (Jo. r. Wrt.stoii, 2,3 .Mich. 4<*i , N Am. F I. Uo. v. Zieiiger, 63 Tns. 'l''t ; runtincniul Uh. Co. r. ir'ilnwti, !) I is. L uv Jour. Ul ; Hrowao r. Ulay F. * M. Ins. Co., S. U. Mo., 8 hn Law Jour. 4.JI IIIO. Fkauu: When the intent to del'rauil is ehar^jeil, tho poliLV is the best evidence for the in.siuer to show that the property was in.-;ured , and the record>i of the company are not evidence, wiiluiiit jirovious notice to tlie insuicd to produce the policy. (iSO.Hj, and authorities there cited. I ItiO. Where an insurance company is informed, after examination by its adjuster, soon after the loss, of i-ertaiu breaches of warranty by the insured, and does not then claim a forfeiture, Vdit allows successive pi'i.>ofs of loss tu l)e made, to which it olijccts nii various ^rouiuls of form, such acti-.m of tho company will constitute a waiver of forfeiture for the breaches of warranty referred to. (Cobbs v. Fii'e Association, 17 Ins. Law Jour. 868.) lltSI. I iver-statements of value of goods destroyed, not fraudulently made in the proofs of loss, do not vitiate the policy. (I'owne c. Springfield F. ifc M. Ins. Co., 17 Ins. Liuv Jiiur. 281.) EXPERTS. E.Kperts are " persons instructed by exiierieuce." 1 1^23. As a rule witnesses must state facts, and not draw conclusion.-^, or give opinions. " Cases where opinions of wit- r.K KXI'KIJTH. uesscs wern (illowalil*! constituto except imis tv tlio ^njiifnil r\\\c." That "(111 (jucstioiiH (tf vuliio, ii witiioss imist often he iiciiiiilted to testily to iiti opinion a^ to Viiliie ; hut the witness nunt Iw shown eonipcleiit to sptiJik upon thu subjeet. He iiiiist liuvo (leiih. in, >)! liiive suinu kuowlodgo of tlio urticlo couoornin^ which he speaks. " SU>inl)iioli r. Ins. Co., 0. A. V. Y., 2 Ins, Law Jour. 0\!i ; Hiirppr c lug. Oo , 17 N. \ . ILij ; i'.! (./. 411 i Ti'i-|)cniiini{ v. Ins. Co., N. V. C. A., (> Iud. Law Jour. !i ; 1(1. llUi, i Vi ; FowliT r. Iu8. Co., 74 N. (;. 81). 1 l!i:i. In reijiinl to tho admissibility of thi." testinion) of nn'lerwriters, policy-brokers, and others skilli'd in the business of insunuicu, as to tlieir opinions of tbt; inateritdity of re- presontation.-j or conceal nx(3nt, tlie authorities uiv cuuriioling. CoNruA: licwis (. liiirl iiijfton la Ins. C().,S. (,'. lowii, ,Miir , l.-'S" ; floine [ns. Co. V. Wflile, I'. 8. H. C, .May, 1H71 ; 1 I'lul. Kv. :'!)(); Miicoln v. II. H. Co, ■« Wouii. N. y. 433; Hriii (, FiiiKler, id. 3J4 ; Norman w. Wells, 17 1 1. 130; f.atuoiire |i. Citryl, 4 Di'uio .N. Y :iii); Murelioii.sc r. .MHitliinvit, J Comst. .V. Y 574; Clark v. B.iird, ^ N Y. 's3. 2. The weight of autiiority, however, is in lavor of the admis- sion of sueh evidence, ui)on the admitted iuid well known maxim, " Cuiqueiii nua arte credendu.n id." {iiiil>) In FAVOR: Dnvureux o. Sim Kirc Ollice, S. C \. Y., IHS'j (overruling 7 Wend. 71'); Quin ". .Natl. Ana. Co., 1 Joni's k Carey, ."I'j ; 1 Hciui. K. I. Cases 702: Baiilwcll v. lai. Co., S, J. C Mll3.^., (i Ins. Law Jour. Ill; SlnnilftriMJu. V. Triumph im. Co , N. Y. C. A., ."> Ins Law Juur. .oot ; Hill r. Houh' lua. Co., S. J C. Mus-., 9 Ins. haw Jour. H14; Iiyconiiiif; K. 1. Co. /. .lackson, 83 III. 302, i; lus. Law Jour. 3i);i : WooUniH'M. Imporial F. I. Co., N Y. C. A., 1880, 10 Ins. Law Jour. 12.'). • 3. Chancellov Kknt say.s: — " li.jtli the w if^lit of autiiority anil the tniinifosl reason of tlip thing are in favui' 01 till' adniiifi.siun uf iho evidonci'." (.2 Keni. Cuiinii. 2u.S, n. 3 j ;} (,/. 2S.|, ■ 4. Judge DcKU say.s : — •' It is n mistake to mippose that, on such a fpie.xtinn, .ill jwrsonH of uriiiuar\- uniltrstauiliiig, wlit'ii tlie facts are a.'^ccriaincil, art^ coniix^tcut to tlif- proticr iiift.'rt'ticc'M from known fact.s ; thi.-; i.-. the jiro])or oflii'e of liraw prolie.''sional I'kill ajuJ tact which arp only acquired by previous study and fxperiencc." (2 Duer Inri. (i82,) 5. It is held in Ohio that such evidence is proper, ami furtlier : — \'K\un. KVIDKNCE, r.i7 " Tlial ' it iM iml Inie, fin u icgiil propOMiioii, llial. ;i(/ mi' Intt itit ijrimrt can give an o|iiiiuiii to h jurv.' From tlie very iinoNNJly ut" \\\v «!»ni', it'sti- iiiotiy iMiiMt oceft-iotmllv U- u i'ii|ii|i2f> ; Snow v. Slroudo et iil., S. C Ala., 7 In.'?. Law Jour. 484. J 120* The true meaning of the rule excluding i)an>l evi- dence is, that sncli evidence shall never be received to show that the intention.^ of the parties were directly opi)osite to that which their language expresses, or substantially different from 518 PAROL EVIDENCE. anj- meaning that th: words tliey have used, upon nny con- struction, will admit or convey. (IJtOS.) Holmes i<. Ins. Co., 10 Metcf. Mass. 211; 1 Philips Ins. 75, ? 122; Angell Ins. 01, J 23; Colt ». CotnnitTcial Ins. Co., 7 Johns. N. Y. 335. WHEN NOT ADMISSIBLE, 1'I27« The stipulations rinpUed by the language of tho policy of insurance are as nuu?h a part of the instrument &H iiny (if its express provisions, and cannot be countervailed by l)rooi of oral agreements, understandings, notices, or representa- tions between the parties, since this woidd be adding to or subtracting from the contract. (I-lOTil.) Lochner i'. Ins. Co., 17 Mo. 247; Hough c. Cil}' Fire Ins. Co., 29 Conn. lf> : Bariet c. In.-*. Co., 7 Ciish. Mass. 17.5; Lowell v. Ins. Co., 8 ; /. 127 ; Jenknis c. hn. Co,, 7 Gray Mass. 370; 11 ii. 1G3 ; Jennings i\ Ins. Co., 'J Dcnio N. Y. 75; Franklin Fin; Ins. Co v. .Martin, S. C. R. & A, N. J., 8 Ins. Law .(our. l.')4 ; 1 T.-iunt. ll.') , 2 Valin's Coram. U5. Parol n'idi'iice of con.sent to a non-compliance with an expre.'is sli]Mdation is held inadmissible. Tho subsequent oral admissions of one party are not per- mitted to he proved by the other to contradict the written contviict, as iliat would gi\e them the .same effect as if inserted in the oontracr. Xor is parol evidence conijtetent to show a verbal agreement to make any change in the conditioiis of a ))nlicy, as no such agreemejit could be binding unless as.sented to by the insurers in the manner Indicated in, such conditions. So. Milt. Ins. Co. i. Vates, C. .\. Vii , 6 Ins. Law .Jour. ()2.t. Parol evidence is not admissible to v;iry or explain the terms of a policy or an application, when tiic luttiir Ipi.s been made a v-arraviij, ;ind there is no ambiguiry in either. Xor can that which is a 'varrantg in a policy of iiisuranco, by its terms, be .shown, hy parol evidence, to have l.K'f-n inserted by mistake. ({;o()i)er r. Ins. Co., 50 renn. St. 21)1).) Nor is it admissible to vary the terms of a written ccn- tract, or to sliow what risks were intended to be covered and protected by the contra(!t. Or, to show that other interests were meant to be covered : or, that other persons wure inter- m ' 1 I'AROL EVIDENCE. 519 ested in the subject insured — whetlier offered by the insured to enlarge, or by the, underwriter to diiainisli, the muount of recovery. .; acli evidence is not exi)lanu.t.ory, but jepuguaut, and contradictory. I Anioiild his 7H, § 4r) ; Houghton o. Gilbert, 7 Carr. k P. i'Ol , Ins. Go. r O'Neill, 13 111. 8!i; (Jlendale Wool. Mill Co. v. Ins. Co, 21 Conn. li<- Sheldon v. Hartford Im. Co., 22 i'l. 23,') ; Hovey v. Ins. Co., 2 Duer ?>. Y. 554; N. Am. lus. Co. v. Throop, H. C. Mich., 1 Ins. Law Janr. 98; Alston «, his. Co., 4 Hurd. N. Y. 32;j, reversing 1 Hill ,510: Lee v. Ins. Co., -i Gniy Mass. ."iH-'J ; Locliiier -,•. Ins. Co., 17 Mo. 247 ; atlirmid 19 id. 628; Miliar In= Co., 1 U. r. 141 ; Honiiifk v. Ins. Co., 20 Mo. 82; Ripley v. j*)tna Ins. Co, ;iO N. Y. 13(5 ; Hure ji. Biir.non. H Jiir. 928; Mc(}ivern v. Prov. Ins. Co., 1 Allen N. B. 64; Todd f Liv. Hi Lond. In,s. Co., IS U. G. C. P. 192; Connolly v. Prov. Ins. Co., ^ Q L. R. 0; Bishop ". Clay Ins. Co., 45 Cam, 4.'J3. WHEN ADMISSIBLE. mi .irs r ! i'> luce fled l<'n- lud :'StS Iter- 1 ItJS. Parol evidence may be received, not to vary the legal contract, but to explain the true .meaning of the policy, in the following cases : — First, Uelatiii;j; to vv fcanHU usoi/e, so as to ascertain tlie .^^ense and un- .ier.itaniiint' ot'tb(> jiartifs hy their oontricts, wliicli are inaili' with refr.reiirf to Hiicii usmje or omioin, wliu^h u.iuge or ru'itom then becomes a part of the contract, and may not improperly lie con-idered the law of tlio contract. " Such proof," say.s Justice SroKV, " is always to be adniitteil with cautious reluctance, and to be vvatclie;h t to be adopted . In sucli cases the evidence is merely exphmatory. ^Standard Od Co. r. In.s. Co., N. Y C. A., 5 lu.s. Law Jour. jOl; .Mickey c. InH. Co., 2 Ins. Law Jour. 8(5, § 21 .) Third, Kelatinj; to the re|.re^eiitation3 of the insure 1, an i lo correct (rriirs of description by .showinj: the identity of the subject tn whi(;h it relate-. (Eilenbergere. Ins. Co., S. C. Pa., ••< Ins. Law Jour. '.Wi ; Fenuiugs ( . Ins. ('o.. 2 Deiiio N. Y. 75 ; Mulicrc r. Ins Cu., 5 Ilawle Pa. .'it'i ) Green y. Equitable Ins. Co., 11 II 1.434. Fi'Urth. ill remove latent umliitjnili/, and enable the court to understand and enforce the contnu',1. (Stone r. Klliotl liis. Co., 45 Mo. 175.) Fifth, A? to the extent of the interest of the iii-sured, if it does not cou- 520 LEVY. tradict the loriiis of tlic jiolicy itself. (Pitney v. Ins. Co., N. Y. C. A., 4 Ins. T.aw Jour. 7<;5 ; Roots i\ Ins. Co., 1 Uisn. 0. 138 ; Franklin fns. Co. i'. Drake, 2 \l Monroe K3 . 47.) Sixth, To exj-Iaiii technical terms, or wonl.s jiecnlinr to sotne trade or business — lertiis uf art, .science, meeliiuiicf^, iuni (lie like. (t2l7.) LEVY. 14*29' W'licro a stipulutioi) of tlic polioy itMjiiii'es notice of an inciunljiance or levy made upon the jji-operty in.sm'oil, .such notice is a .substantive and niiiterial part of tlie I'ontract. A levy of an execution lui.s reference only to a l(;vy on sonal luoperfy, a.s a levy on rati inojierty is unneces.sary and now unknown to the law. (Uolr '.'. I'hfenix Tn.s. Co., N. Y. C. A. .54 N, Y. 505 ; Hummel n Queen Ins. Co., oi Wis. 72.) 1430. Where the stiindntion is that the policy shall cea.se upon ]iro])erty insured, ".should it lie levied on or taken into custody under an execution or other proceeding at law or equity," it is held to be valid. (Schroeder r. Ins. Co., 2 Phil. Pa. 2S6 ; Wily c. Standard In,s. Co., Hiyh Ct. Ju.stice, (.J. P. Di\,. Out.) Put does not ajiply to a wrongful levy made upon the pro- perty insured as that of another party. (Ins. Co. v. Mills, 44 Penn. St. 241 ; 4 Bonn. F. I. Cases 730.) I4!S1« After notice of lien aouiirst his property has been given by the insured, as retiuired by the policy, to the insurers, their consent to stand as insurers woidd be implied if there was no dissent expres.sed. 14-32. llici.u : " :\ stipulation ol tiie policy. ' that the iiiisnranoe hy tins policy shall (•(■a.>,n,n.ent in his answer, in case of suit, or b.fi.re i-„|.- luent IS obtained. B„t, havi,,.. received such ..olice, if the insurer ne'leds to show u in defense, he .annol resist a sub.sequent daiir, of an assignee : but, having shown such notice of assignment, he cannot be char^n^l as garnishee.' e>>^ ' "^ Hebel .. Amazon Ins. Co., S. 0. Mich,, 5 Ins. Law Jour. ,509 . HartfoM Ins Co. ..Owen ;w Mich. 441; OrieniHl Bank r. Tremont Ins. Co.. 4 Metcf Miss B;n7r , • ^■'':"'"'^"-^'""-^'^''"'^''"''- I t.V.'fWaUa&S.Pa: 76 <; nenn, H . I. ('ases 2'.U. .1437. Any a.ssignment of the claim by the insured, after se.-vico of the garnishee upon the insurer, does not afte'ct the attachment or relieve the insurer from liability under it 522 PREMIUM RESKRVES. I 137a. Gamisliinent is (equivalent to tho comraeiicement of a mil. riira.) 1 1:{71>. Tlie proceeds of an insurance [lolicy are exempt from seiziiiv, uii'lcr the Homestead Exemptio)) Law in Texas, (t 'ase of Frielmrg, Klein A i'n. v. Ins. Co., in a lower court, not rejinited.) In tiie aise of Wuosror v. Pa^ye and Trustee (54 N, H. 4 Ins. Law Jour. 483, § 107), it was ilKLD: "That an insur- anco company wnuld ht' ludd as trustee in execution process when the debt wliich it owes the principal defendant is solely due on a jiolicy of insurance upon household furniture, which at the timi' of its destruction hy fire was exempt from atlach- ment." riJEMiuM reserve:s. 11.;.S. The ({uestion of " Insurance Ileserves," though a vital (ine, seriously affecting the solvency of lire underwriters, and ouf that has been a theme of frequent and earnest dis- cussion under various phases, seems, nevertheless, to have received no satisfactory solution, as there still is no little diver- gence of views and undi>rstandin,trs upon the subject. More especially is this true as to the intention of the law compell- ing fire insurance olFioes to set aside each year a certain }»er- centage ol the premium incouu- of siu;h yeai, as representing that portion of unexpired insurances on wliich the premium has not yet be(?n fully earned, hence to that extent not Je facto the property of the company. I !!{!>. IW many persons this compulsory reserve — kjiown as tho " unmi'iieJ prenn'i um ftind" — is supposed to be thus set aside to cover the probable losses of the companies for the coming year upon the unexpired insurances of the past year, with whii'li. liown-er, it ha,s Jio connection whatever, though it may occasionally occur that the sums thus set aside, espe- cially by the larger offices, will exceed the losses of the year; but they woidd not he ample to pay losses and secure the unearned jtrcmiums at the same time, ^a discussing tlieques- PREMIUM RESERVES. $m I tion of insumn''e reserves, the subject will be treated uruler two divisions: lieinsicrance, ov uiumvued premium, fund and Surplus. IJEINSUIIANCE FUND. IJ lO. As a rule in insurance practioo, all prerniuins are supposed to be due tuul payable at the tirnc; of issue of the policy, that U iu advance, and the policy stipulations usually so reipiire, so that the underwriter's ownership in such premium is commensurate only witii the pui ion thereof earneil day by day, the balance being held by law, as the property of the insured, for wluch no equivalent has yet b(;en received by liim, and hence a liability against the c inpany like any other debt. The New Vork statute makes the repayment of unearned premiums in full obligatory upon all insolvent com- panies, before the. payment of all other claims, which latter must come in only pro rata as the available assets of the estate may pay. Hence, this fund or reserve is simply such portion of the pnnnium in(>,ome ^et aside yearly as will be deemed am])le to repay so much of such premium income, at any given date, as may not ha.\o been already earned l)y carrying existing risks, more ov less nearly to exjnration, and only aftects the companies in the matter of existing ])olicie3, and not those that havi; had losses, yet unpaid , or in other words, it has nothing to do with the payment of losses. The whole theor} of a reinsurance fund is practically illustrated in the cancellation of a current insurance and the return of the unearned premium for the undetermined time of the policy. nil. The doctrine of '•unearned premiums" comes down from early marine practice, rescing upon the ja'inciple that, 'if the risk be not absolutely run" the consideration for the pre- mium fails and it must bo returned. In charters granted by the States of Pennsylvania and Massachusetts, 1794-1800, it was provided that "The moneys and notes receive0 percent. l.iO 7.0.00 Cof". Writiiiij. A $10,000 M 10,000 C 10,000 Thus tlu' highest rate offices, B and (J, loyal to the tariff, are called uixui for a higher reserve upon the same lial^ility than the low rede othce, simply because they obtain a hiiger amount of preniium therefor — upon which the reinsurance reserve is predicated — and not because they have a greater liabdity at risk. ] 14fS« Taking these various factors itito consideration, even then the amount of bu.siness done throughout the country must 526 PUE^^IUM KKSKUVES. nei'il'j ;ippro.\iiiiate iiiiifoiinity to warrant, an avcnij^e of six iiiuiitli^i u|iuii each uiitlcU'Viinuftl iusuraiioo at tlie I'hjso of any givon year ; for should the business have fallen off tuwanl the closing months of the year, jiro raUi reaorve wonlJ fall off corres- pondingly ; while had there been any marked increase of busi- nc^ss during the same months over the previous months, the [pro- portion of leserve to be .set aside as unearned [iremium fund would l>t' much greater. I'llO* Dut inasmuch as apjiroxirnati! accuracy only was deemt'd essential for this purpose, the aversige system was adopted generally by State Insurance Dej-artments, assuming as th(! basis of ''omputaticin that the majority of fire insurance policii:s are for one year only; that the short-term risks, with increased rates, are abmit counterbalanced by long-term risks at lesser rates, but in larger numbers, so the average duration of the aggregate might be safely taken as one year, and the pro rata ol llie unexpired annunl business shoidd be taken as fifty per cent, to constitute the unearniid preununis of the yenr. In later years, however, this fifty jier cent, average on idl business has been changed s(» as to apply oidy to annual and short -tertu risks, while long-term policies are computed pro rata for their actual unexpired terms. 1 1 17. From what has Ix'cn said, it is evident that unearned prijuuuui upon undetermiurd policies is a current liabdity, to meet which the company must be prepared at all times, as the policyholder nuty, at his option, call for the cancellation of his contract at any njonient ; or the couipany may desire to cincel some policy and tender, or |)ay the unearned la'emium for the undetermined time of the insurance. It is upon this principle that the law treats " unearned premium " as a del it, and insurance Commissioners charge these amounts against the conijanies as a liability; and if this charge, together with unpaid losses or other debts, creates an imj'Uirment of the capital, such impair- ment must be made good within a given time or the comjiany wdl be declared insolvent ; in which event the first payments made by receiver oi' assignee will, under the law of New Vork, be these same unearned premiums on outstanding policies, after PliEMIUM UKf^KKVH3. 527 which the remaining a.ssfits will be marshalled among tliu other claimants, lawyers anil receiver. 1 I I.N. Fortnnately for Llio iinburned policyholders, niul tlio company as well, the hgal premium reserve is always held by the otticein interesl-lntaritig 8eeuriti<;s ; henee it will, or .should, always be ready for such enierj,,'eneii'<^, for this fund stands ratlier for gain than loss ; it eiirries with it a productive as.^et always eijuivalent to, if not more than this liability, as in <'a.ses of rein- suring, such v(due could, upon a good line of business, be disposed of for a sum considerably above the actual unearned i»reniiuni liability; for in such transfers the cost of olitaiuing tht- business is always a factor in the estimated value above the naked pre- mium, but one not considered in computations made by iusur- anc(! departments. 11411. There is nothing exact aboui this reiiuinuuent of the departments ; it is but a " rule of thumb," to avoid the necessity of an actual itemized valuation of unex])ired risks. The reserve created under it is more than ample for the ])ur- pose intended ; yet its application forms no absolute test of solvency; and that it woiks unjustly, and sometinu's miscliiev- ously,uo one familiar with its operation will deny, (I HI-;!.) 14.SO. A very simple and practical nu'thod of arriving at the e.xact amount of unearned premium, u})on the current business of an otticc, at any given date, in detail and in the aggregate, with a minimum of labor is compared with tlui ordinary means, where such detail is practiced, would be to have appi'opriately ruled sheets, uj>on which each risk could be entered by the entry clerk, with but slight adilition to the ordinary entries, as it comes into the oflice, whether over the counter or from an agency, each agency having its own sheet filed with its office reconl. (>!) these sheets tlie risk sh ;ild lie entered, and where the term of expiration overlajis the close of the year, the nn- carned portion of tlie jn'emium for such excess of time sliould be entered in the appropriate columns, any policies canceled in the meantime being marked off as they drop out so that fm 528 PUKMIUM HESKRVKH. at \\n' closo of the year, ur at any othor lime, l)y siiuply footiuf,' this column, the amount of outstancliug unearned l)reiniuin could he at once fnuml. At the cl»0. Ai."'PKy I'olicy Niiinlicr.iXiiiiiljer. j.lO 971 329 i 1079 970 j 2ir)9 Date. Term- July 1,'H9| 1 Yeiir. .Ian- 1. "89 3 Years Jan. 1, .89 i 5 Vears. Amount written. To.ooo 2,500 2,000 lixpiration J'lvl. 1890| Jail I, 1892! Jail 1, 18941 Premium. lOOi 00 2:)i 00 20i 00 (/?(///// /('()((/ piiiK.) Brsi.Ntss OF 1890. Unex- pired Time. iTNfo";' 2 yearft.i 4 years. I Unearned Premiums, Dec 31, 1890. 3 Years, 1 v'rorless. 2 Years $lt),67 4 Years. $lu 00 Years. Reni'ks Caiicl'd While the result of such a stat(!nienL would in)t in all cases meet the requirements of the insurance departments, it would (?how to the company just how much of the premiums received duiiiig the year were fully earned and at their disposal, u fact which the department requirement does not show. SUUI'LUS. 529 KIliK lAiSS ttESKUVKS. 1151. ill iililitioii to hottirii,' iisidu tlie lt'>,'al reserve to meet tlie iinciiriitMl [irtioiiiiii Imliility, tho coinjtanies Imvo a Ljuiitingc'iil. liability of aliDiit <;(|ual or greater aiiionnt, arising t'roni currtuit losit^s \vliii;li m,iy dcrnv upon llu; und'^terniiiu'd ])n]icies of ttie year, for wIikL ihe luw makt's no provision, each olfiee lieiiifi left to |iiiivi(l(> not only I'or ordinary loss olainiH im they arisi;, Imt for cxtraurdiiuiry coiilIat;ratioiis vvliicVi (locnr from tiine to tinn, and hy wliicli the financial ability to inoet tliHse obligations will !»■ sonnrr or later bron^^dit to a test. The lU'ce.'^HiLy for adeipiafe rcserve.s to meet iho rcmning contingencies, to vhieli th(> bii,siiie.s.s is constantly suiiject, be- ing acknowledged by all practical underwriters, tlie question looms up how to reconcile a legitimate iccuinnlatioii of reserve, with the rights of both iiisuit'r and insured ; to wliicli enany occuniiiif subsequently to the setting iipnrt of sucli .sums, provided timt an ei|uul iuiiount of the jirofits shall also be set aside at the same tinu', to be (.n^led a "yiiaranioe fund," which shall be niaintainL'il as lon<^ as and to The same amount as the "safety fund ; ' but sluill, like the otiuir assets, be liable at all times for payim-nt of losses and other claims against the eompany. If at any time from any cause, the " guarantee fund" shall lie reduced l)elo\v its noiiiial siini, no more shall be added to the "safety fund,'' nntil the '■ guarantee fund " shall be fidly restored to its pro[ier proportion ; after which protits may again be par- titioned siuive and share alike, between the two funds, which are to be iiiv(!.-,ted in interest-bearing securities, and held to a\vait events; llie "guarantee fund '" l)y tlie company, and the "safety fund" by the insurance department of the State, the company liaving t!ie option to draw the animal interest 0:1 the securities deposited, or leave it to incri'ase the deposit fund. ll»>T;i« Slionldthe company's capital bcimie impaired at any time, till' deliciency is to be made good out of the " safety fund ' to its full extent, if need be. Or should the sum of tlie lo.ss at any time exceed the "guarantee fuml" and other as.S"ls, the " safety fund." together with tiie unearned [iremium reserves — the property ot the nnburned policy- holders, y'.^., ])olicieson wliicli there was 1:0 loss — liecotnes a new basis for the company to operate ujicii, so that while the other assets I'emain in the lutnds of liie Company itself for distiibution among the burned, or loss jioliey-holders, thus obviating the exjiense of a recciv^r- shij), tlie business is crtntinued exactly as if no misforttine had occurred; ihe imjiairniunt being made good by tlie safety fund iii>t«Mdof by additional calls upon the stockholders. TIksc occunuilitioiis ai'e, to continue until the two funds shall jointly equal 111'' aiiioiint of the capital stock, until which t'nm; the divideibls dc, hired u])ou tla; capital are limited to scvet) per cent. ]ier aiiniini ; alter the joint accumulations shall reach the sum of the cajjital, the dividends are unrestricted, lu this restrielaou be^ ihe key to the system. 'I'lie Safely fund law was enacted by the Legislature I. BOOK KATE, OR VALUi:. 638 New York, A. D. 1874, the result of experience arising from the conliagrations of Chicago and Boston, 1871-2, where juoporty to the extent of hundreds of millions was swept out of existence, swoej)iiig into the flammg vortex the total assets of scores of ooniiianies, and seriously iinpaii'ing the cap. itals of ina.ny others auKjng the largest of the American offices, thus involving hoth stock-holders and policy-holders in heavy- losses, which by the oi)eration of this law might have been largely averted; and yet, although Iifteen years have now elapsed since tlie law became operative, but nine offices have availed themselves of this simple method of averting a similar disaster at any time. PIlOaRBSS OF THE SAFETY FUXD RESERVES. Gapital. 1871. 1875. 1877. 5 Go's. 9;>(l,0;i0 Uiichanirei! $4,000,000 2 Go's. 185,000 ;t Co'h. $-19l:,850 1878. 1880. 1885. 1889, 9 Go's. 2,789,177 6 Go's. 1,.S04,300 7 Go's. 1,653,000 8 Go's. 2,659,952 BOOK BATE, OR VALUE. 145.H. What is technically known as the " honl rale " of a company is the amouut that its assets would net to the stock-holders upon clo.^ing l)usirie,ss on a given day and return- ing its capital to the subscribers pro ratii. The " rate " is found l.>y dividing the amount of the capital into the .sum of the net assets, thus : — Capital, if.'iOO.ODO. Net, a^.^ets, $570,000 : rate, 114 " 500,000. " «' 490,000; "98 But, inasmuch is the net assets, shown by the ordinary annual stutemeiit.s of the com[)anies, would ' e liable to con- siderable shiinkage upon actually closing uii luisine.ss, such " book value " must be taken with some graiiLs of allowance fnmUPHF ^34 CLASS IFICATIOX OF HAZARDS. AS INDICATING THE COST CF INSURANCE. 1 I51>. The 8ul)ject of classifying tho various fire liazards and loss(33 then.'on, with a view to obtain reliable data as to the cost of insurance, and tlie values of tlie several hazards so classified, has long occupied the attention of fire under- writers of both continents. But after the lapse of more tlian two hundred years, with exceptional instances among some of the leading offices of the country, however, — wliicli tlius far have been carefid not to contribute anytliing to the general stock of knowledge upon the subject, — in the language of a veteran fiie nnderwritei' ; 1400. " Wo may safi'ly buy tliat we have no lata from wliicli we can vleieniiiiK' the actual co^t of a single c'ass of risUs fur a jierioil of ten years ; we may approximate to a rate on some of tiie safer classes, but, as a whole, tlie liusiner. IHOI, .said very peituieiitly ; CLASSIFICATION OF HAZARDS. 535 1402. " Tlie prosperiiy of all fire insiiriirice companies depends very niiu'li on a knowledjrc of wlial i.s the average value of ttic risk ot each species or cla.-is of i)ropei-|,y, and Oiis can only l.e approximated l)_\ tlie wide-t and most careful .stati^licai inquiry. No such inquiry has ever heeri in-^titntcd in any country, to our knowled;jre. In this country it is certain it has nut been. Our countrymen nuist have gone into the businesH with no better liglit than (he experience of companies in other countries, and a i-ort of dim instinct teaching them that a carpenter's sliup or a liverv stable, exposed to ignited cigar-stumps and other incendiary missiles, must be several tinuM mure iiazurd) is tii iii a w dl kept ilwL'lling house."' 1403. A voliiiiie might bo filled with .similar extracts from " high authorities " in tire mi(k!rwritijig,theorizing upon the sul ject of das,siJimtion of pre hazanh and lo.^sr.-ias the biisi.s of all cor- rect rating. Unfortunately, the matter has been permitteil to stop with the acknowledgment of its ab.solute necessity, and no combined effort has been made to e.stabli3h such a system of uni- form classiacation as would meet the needs of the profession, although abundant material therefor is to be found in the posses- sion of every olhcc in the ci)untry, fully equal in range and breadth of averaj^j to the present " l.ife Tables," by which that branch of insurance is so successfully controlled. 14(S I. Wliile the individual experience of any single oom- j/any would lack that variety and comprehensiveness needful to a complete generalization of any special subject in couse- queiice of its comparatively limited sphere, except after a series of years and close observation, the combined experience of a number of ccniipanies, presenting a In-oader average of risks ;ind lo.s.ses, wouLl furnish more exact data as to the "hre history ".,f hazards generally. Nevertheless a critical record of the business of any single oHice, duly persisted in for a length of time, would eventually present a condensed fire history of its own bitsiriess that would .serv(i elfectiuilly as a beacon for future operations. I-1«5. Tn estimating the value of a class of hazards as an insurance risk, something more must be known than that so much money was received for jjiemiums ami so much paid out for losses thereon, w hether the former be in ext;ess of the latter or lio' versa. The hihcrcnt hazard of a risk is the standard of its classification, exposure is but incidtintal. Hence it is that all 536 CLASSIFICATION OF HAZARDS. general iufonnaticm fournl in census reports, or elsewhere, sh(nv- ing so many risks of so many classes, valued ut so many dollars, or a list of burnings of ,so much projiorty valued at such an animint of money, are of small account to the fire underwriter as factors for classitication ; such inibvniatiou being too general, and lacking in essential jiartieulars, and furnishes no inficination as the insurability nf the properties named, or the causes of the several fires from which the fire history of the several risks can be discovered ; such discovery must bo niade through an entirely dilTerent and more jmictical process. It must be known, so far as ])racticabli-', just why any class of risks burns or is likely to burn, and this can ordy be ascertained by a thorough inspec- tiun of the several hazards, inherent or otherwise, attending the risks, and when these have been discovered and their liability to burn ascertained, there is an impnrtant point gained in the making up of tiie " tire history " of the class. I 166. Not is this all that is needful. Very many risks burn from canses not inherent in themselves, such as accident, exposure, inceiu''".rism, etc., etc., which should not be charge- able, in classification, directly to the hazard of the risk itself. Thus, if a planing mill be set on lire I)y the burning of a neigh- boring cinuch or dwelling ; or if burned by the willful act of owner or others ; or from any cause, in fact, not inherent in itself, and from which any nun-hazardvMis risk might have burned under similar circumstances, ii does nut necessarily make tiie plaiung mill a bad risk. Hence there must lie a classification of the ruuses of fires as well as of the risk> themselves ; and at the close of the year, when it is ascertained that so many risks of any given class, out of the number written, say ten out of one hundred, and of these ten, two or three only l)urned from a cause inherent in the risk, the remainder burning from remote, dishonest or accidental causes, and this record repeated for a series of years, even with the experience of a single oftice, there would be small dilficulty in approximating the rate of a normal risk — that is, one ordinarily insurable, of which the classification re- gister would indicate the fire history with almost inevitable v.yi- t.iiuty. Thus will statistics create knowledge, and eventually 1 CLASSIFICATION OF HAZARDS. 537 fix basis rates; and if nnifona rates are ever to be made ijer- inaaent, it can only be after some reliable system of classiHcutiou of tire liazards and losses ,Jiall become general and interchange- able among tlie coriipanies. JHi7. No system of classification can be made In embrace every class of hazard in detail, without rendering such classify- ing more cumbersome in bulk than valuable in facts. :N.)r is this minuteness of iletail needful for piuctical purposes of the business. A few of the moi'e prominent mereantili! and nuinu- facturiiig hazards nuiy be made special subjects of classification, while the remainder may be grouped into classes, with reference, as nearly as may be, to a common inflammability and enmbus- tibdity ; thus presenting, at a minimum of both time and labor, a system of practical classihcation within reach of every lire othce disposed to avail itself of its own ever-present opportunities. I40H. IJniikt! the life risk — where once rated, despiti> of increase amount cov(;red by the policies thereon, and the aggregate of premiums received therefor, on the left hand 538 CLASSIFICATION OF HAZARDS. page i and the amount of losses on each class opposite its respec- tive uumVier ; the aggregate of losses on each class ; the aggi'cgate amount of the policies of each class under whi(;h losses occur, and the aggregate amount paid upon eacli class, upon the right hand side. Any difference between the amounts received for premiums on each class and the amount paid for h"is on ihe sani" classes will be the profit or loss gross upon each class for the year, and when these results have been ol)tainc(l, the loadiny for expenses, etc., can be added, thus shewing the actual profit or loss tipun the busln.ess for tiie year. (147-t.) 1 l(i!la. But to complete the "fire history" of the business, it will he necessary to chissify the several losses, witli a view to learning why and wherefore each risk burned, whether from inherent hazards of its own, or fi-om exposures, which will require a separate classification for this purpose, siiewing the various causes of fires, and how many of the losses occurred from one or the other of the spe(;ified causes. A continuous nnnual aggregation of these results will afford a very fair approximaliou of the value of each class, as recorded, as a money producer at the rate uf premium charged for the year. (1 470.) Tiiaf such a record will involve the expenditiire of both ti)ne aiul lal)(ir is self-evident, but, properly carried out, tlus j)lau involves a minimum of both. Any business tliat cannot afford the time and labor for its proper conduct is not worth follow- ing. 1-I70. Efforts have been made to induce companies to i-om- bine, for the purpose of exchanging results of individual <.'X- periencesin classification, holding such information priv.atc among themselves. As yet, however, few of the offices have deemed the advantages of comlrhwd experience sufficiently inviting ro counteract the disadvantage attending an exposure of the details of their business to the ins2)ectiou of their coifieres. 117 1. To facilitate this desirable end, and, as far as possible, simplify the method for recording experiences upon the several classes of risks, " GuiswoLu's Classification of Firk Hazauus AND LossKs " was prepared for use in the office with which he CLASSIFICATION OF HAZAKD8. -.39 was then conncoteil , it was subsequently offered to the public, at the request of the officers of several companies, and is now in use l>y a number of companies throughout tlu; conntry. It comprises a Ekoistkr of 180 demy folio leaves, sufficing for ten years record of the business of any liompany. liir^'e or small, or IS loaves for each year, including one page fur writings, and an opposite one for losses eacli month, witlt ruled columns for 80 classes of risks, brick or frame, shewing premiums received on each class. (1472.) 1173. There is also a daily memoranda, or day book, in which the risks arc entered as they come into the office, under their respective class numbers, and these at the close of the month are, after cancellations are crossed oft', aggregated and carvieil to the appropriate monthly pages in the Eegister. A similar record of losses paid is made eacli month from tiie "Loss Book," and transferred to the Register, the two pages of which will then exhibit the transactions of the month, which atraui at the close of the year, are carried t(j the yearly pag(i, and results thereupon obtained. 540 CLASSIFICATION OF IIAZ.VRDS. o - B 00 3 g E ^ >1 1 b No. ut' Itlitka Cur* ^ ^ § § 5 Iiiviilf iJit^ I'ri'iiiiiimc reoeivert liy the ^ 'r' ^ A riiouiil covered. w o S ?f ii Average Knle. l-H Aiiiinnit (■■■vort'il by ilid Pulicits on « lik'li lusses not'iir. " No. of L0H8OH. i 0> , it 'I'liO iiuMilicr lost, ns to tlie whole iiiiiiilier writti-n. IHvide iiiiioiiiit '>f [,<«« J'ltiil liy Amount (■overwl l)V 1-o.sf. I'ulii'y. I 3 «,__! PtTct.ofLoi'Hm, •^"1 Nmnbers. 5 •r. •/: K 23 Wviile the Amount of Loss I'aiil by total Premium Ueceived for the C'lasa. iJi'ilurt Ihe .Amount of f,os(i raiil from total Premium roccivi-d, balance to I'rotit Acrount. Diviilf Balance of Profit Account by Premium Kecelved. Deduct .\niount (.f J'rcmiuui received froui Amount of l,iis« Paid, lialanco In l-oH» Account. l>i>lilc .\niouiit of IjOSB by total I'rcMiiium Hecclved. Kor I'rnllt.— divia- Hnlanco of Profit by total .\ mount Covered. for [..(ws,- divide .\niount of Loss by total .Aniount Cnvered iJiviJe the Amouni Paid for loss by the iiiH-riuje rah: obtained Per cent of VVriti)iK Per cent, of Premium. >-^» C 3=3 8 i;alanc«t lioas Accounu ►- M* to s at -."■ 3i3 >\ {tdi m HI M ■0 E n 00 a « 3 ■<5 I r I' CLASf?IFIC.\TinN OF HAZAlinS. 541 m E n a m -J 1471. 'l\w second form {XVTtyV) rc]in'<''iit.s the Caisks OF FlKErt for the VMsir, ayjJin'giitcil lunl avom^'e-.l. Tlii^ fdi'in in made uji IVmii an original till >le of (V^' >«(.:«r tlu! liros occuiring midev any one of tin- classes 80 lirick and 80 frame — are duly re.cordcid and t'nte.reil in the "Loss IJook," and at tlio end of the yeavthese are gronixMl under their respective fjrnrr'd headings, and their nutiilMrs and ratios uhtiiined. Tliese yearly results iir(> carried forwnrd year liy year, and a "-rand aggregate of the entire classification is thus kept up, by which not only the results of a ])resent year, laii, of all preoeiling ones, are to lie seen at a glance, and a systematic record of the causes and frequency of fires, and tlicir cost to the company, is constantly at hand lor reference; so that the risk itself, and its own peculiar hazard, outsiadily ascertained, and with a certainty fully eiiual to the niiirtalilv tables of life insurance. fl-KittaO I I?.!. Till" following ar(! tlie iUnnized and classified C'auses of tire losses : — Iniierkst. DlKECT. FRAltDl'I.KNT. Hkmotk. I Unknown. Expliisinii •ir|UunpoW(ler. H|piiiii:iii»>oiiH ,l'"iri'-wi)rll■|^i^|Il.■' iif jA<-fiiloiit. siciiin li')ilt'rs— :( avi'lcssiifCP laril eiiiks. |.\sln-s, spni-ks. SttNiiii-|iip>'.i, ile-il'i|(es, iiiiiti'lics. IV.'tive llii.'!<, Krrnn.Mio UiiiipB fiM-iini'e» :(.aHoliiie rickri> ill L'ottMi I'heiiiicnl Dil? or Mouli'ii mills. ItHiiziiii!. Sti-nni clrytTH. N.'i|ilitli.'i, Kridioii,' ln'iUeilOaH j..iini:il8. ''rdliMi'co. (Ivor iiipurmii^e. Eximsuri' Sllp|"i.S«(l illOHl. I ili^irisiii |(ir(iss iiejjli>;<'ii<"o. Ai»i>ii or iiiv'oii- diiiry. I'y ntfigliborliig priMuiSOB. llnkiiown Clahsikii vTuiv OK FuiK- ! Ia/ AHPS AND LossKs : Comprising ft :iYsleni (if A ILT MbiMoraniia. witli MosTiiLY iiQil AsiNi-Ai, Classification. By J. (jriswold, (k-u- eral Ageut. Tbird K(liii(jn. 541 CLASSIFICATION UK HAZAUI»8. 6 ? ii 10 — Totiil Niiinliar of Lohm uf each C iMii (f> (» »l T' &l 4- U U t^ Ti'liil Aiiiduiii I'liiil (luring llii'Year for l,(>'<'i( that'll (luiiii Nunibor of liusnet frora"Iiiher«nt"CaURea. s g si ClHtm Niinilj«>r. Toiiil Niiiiil)or of I.ii!»iiit I'Jiii) for l,(iM*i'H, 18..- . Amonul I'lilil for l.ci«ni»8 tniiii " liiUtii'iit " (.'iiuttos oil eueli (jlasK. 'i I s i Number ot 1.0HK*. fc 2 I'niliortloii of llio 'lotal I.omdh of tlio ,i jSl Katlo of lotitl Year. f" m ', i,M..M.s. Niiinbiir of l.omos from " Dlrocl " Oauiea. „ a X Niimbor of I .o?»o». A Milium riiiil lor l.oHscn from '• Dlnot" C aiiKiB on I'lioh (,'luit.^. 8 rroporllon ot lUe Total Losgos for the \ ear. g Niiiiiliir of I,...i»ii;b liom" Ueiiiole " Causes. Co ' 3 Uatio of 'I'otsl I.OSSt'S- Niiiiiliiir (if l.,n»M>8. Amount I'niil for Lns-ien from " Keiiioto ' CHU4U8 on ROrll ClllbS ?3 Si Proj-ortion of .Total Loss for the Year. a UatIo of Total w I.oDBes. 71 Jsiiiiiber of L08HVR from " FrauiUilciit " ^ CauHi'H. Number of Lotiseni. Aniduiit J'aUi for I.iibs™ from " Kriiudu- § leiii " CauHUK oil each C'laas. X p-S Pro|iortioii of tbo Total Losses of tlir Year. Itatio of Total J'O^tses 1^ I > 73 ,71 1 Number of IjosBes from Caudeu " Un- known." Numbtir of LoBses. Aiuounl, I'nlil foi LosHi'S from " Cn- ki.own " Cau.ios in eai li (litss. I I Proportion uf the Total hosscs of the g Ji Ratio of Total I -r 543 JJATKS. > I— ■h 73 11 r k— 4 I ^ I ITT. Wliilc it Imsheen tritely roniiirkfiiUliat " tlie |iiiiii!\iy ■jiiili^ii' I'll nctviti of (III iiiHuranoe coiii)iiuiy is tliti imyitii'iil of lussrH to lis jKilicy-liuldors," it is iin Iosh true tliiit tin' |iiiiii!iry pvivaU. finictnin is iJie imynit'iitdf dividiMHl.s tu it.s stncklKiIiiiTs ; ami lis the caintul stock of a coniiuiny is not the iiatniul riiiid U)V the payment < f I'ither losst^H nr dividciuls, th*; pnssession of mi " auipk' prciiiiriii n;si'ivt' " i.s a shw ijiui iiini, ii|ion v\ liicii liici porfdiinaiior nf I'illui nr lioth of Iheaa fii nctiunn must Ik; iHiiitiii- gent (IIHH); heiici^ it lu'comes a (Hicslion of primary iiii)nr- taiic. Insurance, as EMKiaooN truthfully says : — " \< a s[)eciesi of play ilemamlinj; <;;reat prudeni-'p on llic part of llio^'e who ine(iilli-' will) U, Perils must lieanalyzed aiiiJ cliaiicea acciiraii'lv lak'uliiti'ii ; the liiiiileii dangers of tin- fica foresiei'ii, a.s well an tlio.^e of bail failii, and rare and extraordiiiary eniergenoiea taken into view. All those nuist we combine, ami riK'dytiif with nili'.t of ))>•(• mi am, to cnalilc us tojiulne of die final reHult; s|iei.'iilatioiiM like these heloiig to tiie province of genius" I IHO. This mutter of rales is managed ([uite difl'erently in England among the best offices, where all the companies, with scarcely an exception, act upon one fixed scale of rates tln-ough- out the United Kingdom, so that stril".) and competition for 544 UATKS. iMisiiu'ss rostiltinjr in fiittim,' ratds — so provulotit in tliis I'onn- try—is iIr'Iv Llin exi'np(.ii)ii ratlu'r tliuii tin' nilc. All tli(.' iHiUur cluBS ol' otMnpiin'OH (ii'« nniu-d umli-r wliuL ia tcnnod TIIK UMTKH KINODOM TAKHr ASSOCrATInN', I LSI. Tlir !niinaf^»!rs <»!' I'ltnipanics Imld statdl ni(i>tiii;.'s in J,i.iiil(in, lit Nviiic.li tht.' exiPorit'iH'c of riicli, iipuii .my [icirtiiuiluv clas.s of liazanls tiiiit jiiay clumoe td ni'cti n virion, is ^'ivcn, .iiicl now rates il' flofinoil ud visa'. In are nj^rei'd ujion, and gn inlo (i|KMiiti')n tlir(in;;liiiut the United Kmjidiini sinnillani'dnHly. To ilir fK (111 lit' ilif ('i)m[ianie.s lie it said tluii. tai.tl rates arc ni.ini tiiiiii d I'lyallv, I'o^hat tin; resjiefitive lunm- fjtlices .iml at the several agencies. The ie^>idl ia tlieitj is iv writing lieldW tlio fixed rate^, and this is so well understood hv tlu' insnriii}' i.'oin- nmnity, that no rebate is asked or exj[ie<.'ted \vlii;n aiijilyiny (or intmrance at Tariff oHices. J IMtj. 'riif ooiiipanies tlius aetin^^r liMrinnnionsly, ami sntitain- iii'' eaeh other m ohtninin'' aiieoiMte, rales, the voun'rer cum- ] allies reapii'i: tlic liciidit ■( the cx|i('riciice of the ohler ones,. — il is nut ^urprisin;^' that the stoeks of the several (oni|)anie3 ihi'OM^'huiil the Tlii'ee Kingdoms reap the lienelil ol tiiis unan- iiiiit}, and ^liuw an averayo market vahie ol' uiie, hundred per cen!. ur niuiv ahove [lai. I'l.Sit. 1 1 ih a iiecniiarity in the aooncv system also, tli.it till (iiieiil ri'/nrsents iitore than one noinpdni/. If hiismess is ollcriil in iiuuunts larger than his aj^ency can carry, the excess is c.ied lur at the hoine oflie.e, so that he does the same aiiiunnc of l'ii>iii(ss and realizes the .same annnitit of eoininissionh as if he held a large niiniher of cuiiiiianies, as i> custoinar) in t!ii*i coniitry. The vaiiuiis risks are classified ,ind the rati'S allixed with grt;at miiiiitcne;-.-; of detail as to the class of hiiilding and (m.-cii- paney , ;in irrangoinent much facilitated hy the great iiiiilurm- ity anuaig buildings of the same class, and similarity in trades and maniifacliii'(!s of the country, which have no ronnterfiart on this side, Mhere scarcely .iny two risks, nominally of the samo class, present the same insurance characteristics. M'lUAI. II,V/AUI)S. fi^ ll.Sl. Ill Uh> iilmiMii f iiiiN tiiiifF iiii: II w.Aiti) llu' Kit^k. Tiivil: J'llK ('i.AA-t iiK lli'ii.luNii — //(■/ /A^ ,l^ea. Fourth: Ihk ()rvi:v\s(\ i,/ (/{•liiiililhii/. Fifth' Hxi'oHiHK-*, R.etfrnof iiihl Inti-indl. Sijth l''iiii, KxiiM.i isiiiNt, !■ v( ii.iriKH, Fa'tfrntil itml hilutuil. Sei'inlh: pKOIIAUr.K [jOSH /» t./lr in nt uf t-'iii:. Kiijlilh : T.*XKi. I^icBx-KN, i:tc., .^'^/^■ iiwl Mimirifril. ^'int/t ; A.MI1I NT (jk iNsi'HANeE un lo I'altie of lilt i'lDinrli/ III Jiiik. T._MoKAL HAZAIII). I iS.Ti. The. vviiiil li't:(i.ii/ of ii risk was nin'^L pertiacntly (k'liueil by ("Jul. l)iie;it: as •' Uu: ilanijft' frotii fricfUm caiimil by h'lijh itiHii ranees and low, (h'/mclii.ted. stud>* dud jn'opt'rtij com- ing toiieHu- v." Ami just the (iiir-;rei)oe hetwueii what wuiihl have he(!U iholire kiss with \\n insiiraucM!, ami X\w Wvv. hws iimlci' irisuvaiicc, woiiM he thi' iHi>r loiow the //U/»,," — his character, antenedeuts, hu^mess ha.liits, couunorcial stamliug ami Iiecuuiiirv responsibility — which may be said to coinpri.^e the ' uukmiwii quantity " in the eaUMilatioti. 1'|S4(. To such an extent i.'> this true, tlmt to many tlniik- in<4 minds it is a i|ue.stion of serious import whether lire insur- ance is or is not a beiielit to the coiniini'iity tit large. WhctlaT, b) holding out to the lo.sing merchant or .specularor the ieart'iil temptation of a ready market for his property, whore "that skillful salesman lire," may dispo.s(! ol it with miiuII loss, ami perhaps without detection, the immunity of the inc-endiarv does not bring insecurity to projierty, ami entail severe losses upon the eonimonwealth ; for property destroyed by fire is not re- stored to the state by payment of indemnity to the iudividiutl. 546 NATUKR OF THE IIAZAUl). I IH7. The inference i'roiii tliis state of facts again is, that carelessness — '' interested carelessness " — is very often the cause of losses by lire; and the quostion suggests itself as to wl.'jlher the distinction between one who alloivs his property to burn because he is in&ured, and lie who fircb it to obtain the insnmnce, is not rather in degree than in kind. J-4.H.H. How sliall this moral hazard be met and rated ? A query more e isily put than leadily sohcd. Raise tlie rales ? Pieiniums may be raised to such an extent as to be beyond tbe reach of honest men, yet be witiiin tlie I'each of knaves, wIkj will not higgle as to rates upon ]irupert} ihej propose to buiii. Limit th( lines ? This ma,y operate in individual cases wlieie the parties are known , but, if known unfavoral)ly, or not known at all, they were )>etter let alone ; and in the event of doubt, give the company the benefit of such doubt, and let the applicant seek elsewhere for iiis nisurance. II.— NATURE Ol' THE HAZARD. 14^9. The " RISK," considered withiti itself, consists of such causes of loss — not cliar<_reable to the insured — as, in the ajj^re- gate, tend to make up the peril insured against. 1 too. A century since all ri^ks were lumped into a few rougii divisions, in consequence nf whi^;h the best risks juud more, and the more hazardous jinid comparatively less than their respective values. But two rates of premium wire chargeil in England, dependent solely upon the construction of tlie building : two shillings per cent, upon biick or stone, and four shilling.-' ]ier cent, on brick and timber houses; at one time larg(>, sums were actually airried u|)on tlie Dniry Lane Theatre at fico shillings ])er cent., it being built of brick, while the I'antheon Theatre, built of brick and timbfr, pun] four shillings l>er ctiiit. Tlie preseiii lates (III tiiese risks would be from two ami a half to Hve guineas per cent. Experience has di'inoirstrated that in affixing rates of prc- iiiuiia, attention cannot be confined to what may be designated ■^"•'• RE OF TIIK HAZARD. 547 normal risks — tlu; selected of each class, as in life insurance — but the sum of ull the combinations of all tiie dilferent proba- bilities of coustruotioti, situation, occupancy, exposure, etc., of the various comi)onents of each class, must be duly considered and duly weiglu'd. l-lfM. For ease of reference, and with a view to facilitate the fixing of rates, the various kinds of insurance risks, movable and immovable, are now grouped into classes, under the heads of non-hazardous, hazardous, extra hazardous, and specially hazar- dous (41H) for merchandi;'^. and niaufacturing establishments; while buildings have l)een arranged into four corresponding classes (I4!*H), intended to rejirescnt, respectivel}, their rela- tive values one with aii.)ther, as insurance risks, and thus afford an approximate idea of a corresponding rate. But, whulher the subject be a non-liuzardous dwelling or a hazardous A or B, or iin extra hazardous Cor D, merchandise, or a specially hazar- dous manufa';turing establishment, the underwriter will still be largely dependent upon his own resources, as each of the subjects may have desirable or undesirable phases contingent upon individi'.al circumstaiu^es, which might remove it from the category of any specifietl class, thus rendering necessary a personal inspection, and the exercise of sound judgment and discriminatio?! to rate it adequately until the various structures of the cotnitry, nonunally of the same class, and the several trades anil manufactures shall more nearly assimilate the res- pect;';- i.ormal conditions of the basis of each class of hazards. i^i^li. As in most else connected with the practice of fire ■ isuiance, there is great diversity of ideas among underwriters as to the choice of business. Many oihces confine their opera- tions entirely to dwellings, as mutnals generally ; others again limit their business, in addition to hazardous and non-lmzardous classe';, to some of the better class of extra hazardotis subjects in cities, eschewing all sjtecially hazardou- ri>ks entirely as unde- sirable ; while other mo'-e venturesome oHices, usually "ageucy companies," write freely upon the belter classes of manufactur- ing establishments aftt.r thorough inspection, and find it profit- able to do so. 548 NATUUE OF THE HA/,VUD. 1-l!>!{. Opinions diftor ulso r9, to profitable results aiising from ri.-k8 w liicli I'oiiiniand a hi[/Ii. rate of i)reiiiitiin as coiiipaied \\ilii risks ]iaving onl} ^ow rates, some luidi-rwriters holding, U})OU ^'cneiid jiriiiciples, that ijootl risks ]>ay luiv rates, w idle bail ones eomiMnnd ii'ujh fij^nres; but it does not necessarily follow that all iioii-hazardov,!^ risks are gooil and desirable at low rates; nor that all manufactnrinu' risks are liad and undesir- able, simply b(!(;aiise they cuinniand bt.-tter jiriees than the less hazardous elasses. On the otliiT hand, exp(?riei)ce has demonstrated that an average line ol' hiijli. nUc itrfrNinDi-i. wtdl selected and ])roperly rated with a view to tlie value of the risk, will bear a much heavier percentage of loss tiian an ft [ually desirable line of loiv Vide proiiiams, and leave a laiger residue of realized profits This 1 iropnsition l>ecomes self-c I'lt nt uheti tlie fact is con- sidered, that l(}iij ratoi of premium entail the nece-isit y of large lines of insurance and consequent increase of iialiilily to realize a mven aninun t of !)usiiie.' .bile /",//' I'dten of jircii 11 urn al wavs acco nijiaiiy reduced lines of insurance, u- ually giuded \\'\{\t u view to the rale of jireminm, \\ ith a pi'uportionatelv retluced liability thr' result is th;it wliile spcrin/ liazard lines are comi»aratively small and pro]iornonately scattered, in case of loss, even if total, but a minimum amount can umler ordinary ( *! ihe oflu'r liiiihl, /( circumstances be lost at any one fire. ( ': iiie orui'r iinihi, imv ricliiiiii|i.st' liuzurili'us aiui twirii liuzanlijii- ii, a Ij i-toic ; ral'j Ja ci'iits ; prt'iiiuiii J4,j. I. Tl ios.-* oci'nr- fiv waier atwl sinokt' oiilv, -av *'J,5flO : a low eHtiinate ic ((.'tupaiiv \:\\i '2,500, Ibr wliicli it l>a.- rcieivcd .*-l5 unlv 14-?H-. I'M th'' othi-r iian 1 : fn-iuraiici- upon /(/; /'liuiinff-iuiHn, ?1,000 oacli at leii pn- ctnt. jjreiniuni §l,OliO l.o- s oi'cur~, and oit>' i s totally ilcstroyi'd ; loss ;t"l,(HlO. T pays 5I.OOO, lur wlii-h it hai» nceivecf ^luO. 11* Company Thus, a Company could lose jive [ilaniiig-iiidls lor ever)- (v( mt'ichaudise risks, and yet have $410 more peuiium upon th^ CL««J^1FIC.\'1'10N OF BUILDINGS. 549 riski. TliH i^ «^^tiinrit'i;i«r tin' loss on the mercliaiiiiise risk as partiaii -j-ifh time, nud the special risk a-^ total, h is als(i esti- mating *< proportion of lr)3ses, as between tlk; two (■l;isse3, which erpKirionci^ in well solccted specials will nut luaiutain aa against the latter. And when the comparison is made with nianiilhcturing establishments of a less hazardous natuvt!, ^•Ilch as the eottou and woolen mills generally of tht' Kastern States, the diiference becomes much more marked in fa.vor i.if liigh- I'.riced risks. CONTKXTS OR HUrLDIMGS. 1'l!>5. Tn cities and towns having relialde and effective fire depaituifiits, with an, ntnple supply of water at baud, !ilan,rlar(l buildings — stores, warehouses, and dwellings — are usually con- sid.;red more desirable than their contents, as being more lilsidy to result in a salvage in cases of Kres ; but so much dep(Mtds upon the nature of such contents and the occupancy of the preiu- ise-s, that the preference of the one over the otlier beeon)es a matter of Judgment after .survey, and cannot be relied upon as a rule. Where the hre department is notefticient and the water supply ts not abundant — and in frame buildings — there can be le^ (pies- tiou as t<.' the [(reference to be given to .stock over the building.s. It is very common to write upo!i stocks iu frame rangi's, where the buildings wouM be deemed uninsurable, reliance being had u[)ou the chance for salvage in case of loss. In ddach'il. build- ings, the chances for bjss upon building and contents are held to ha about e«iual. HI.— I'LASSIFlt'ATJOX OF Bl'lLDTNGS, IIJM». Si'tndarfU of chmsifirat'ion adopted foi' rating pur- poses, wln'iher uf bail'li/iKjs vr other hazards, are necf.s.sarily trenernl ; so many contingent and modifying circiim-»ai\ees enter into luilividual cases, that no specific rule will apply in ev»ry iustan.'e. Although desirable in a high degree as a guide to the inexperieiKied, an I indispen.sable to the practical underwrit r as a HMUUis of approximating reliable averages, yet uo ay.'^tem of 550 CLASSIFICATION OF BUILDINGS. classifying buiWings can bo made so niimito and conipnilionsive as to be practically and uniformly operative in all cases, hence, the decision in each instance must be special, founded u])on insjiection andijiiided l)y jud>rnieiit, and tutliiseud dan,iijication can be referred to with beneficial results. I-IWT. The necessity for some chisslfiCAit'ioii, as a basis upon whicli tL estimate tlie value of buildings as insurance risks, has been recognized from tlie eaiiiest introduction of fii'e insurance us a means of indemnity. " Classes of hazards" are bnind as components of the policy as early as a. n. LStM} (4JIO), though in a primitive form, which was changed fiom time to tiuK; until A. D. 1830, when the following was in use : — CLASSKS OF HAZARDS, WO KAI KS OF AXNUAI, TUKMH .MS. FIRST Ct.ASS OF H\/..\VLU». SKroNP Cr.ASS OF llAKAlill.S. TIIIUD CLASH OF UA/.AK08. FOIJIITH CLASS OF IIAZAUII8. I Uaililiiij,'^ of Hrick'HuiMiiigfi of Brick or Buildings of Bricli or BniliJiiiK? of Uriclc or or Sloiii', coveiod. Stine, covi'U'd wiih fSloiK', roofs tlir A'alls or iMftul ; th') purty-willls abov('| or Metiil, Uio restj libovo thiMuof, .loorc and wiii-, tin* ioof . shingled, party. iImivu .i1 ,i.tlii) iritti : walla uhoTt4 \\\i\ (lowK ot solul iron, jiiirty widls •ibovfl tbo roof. I 22 cents per 910U 25 cents per $ltiO. walls ttbovo tlio roof. 30 cents per $100. 45 cents per §1(10. TU Tfl CLAS.S OF \ SI.XTH (LASS OF HAZARDS. I JlAZAUll.S. SEVENTH CLASS OF HAZAHUS. EIUHTH CLASS OF IIAZAIIDS. Bui!dliiK?of Frnnio, Frntn.' Bnlldliipp, fill- Frame Biiilrtliip*, f'll- BnlldinRg entirely of filli'il ill «lili Isrick I'd i)i wiili Hiirk lo; I'd iii witii lirick lu Wond. lo tlic peak Mild iho pi-ik, or with the piate, f>r witlii lh> frontof Hrit'k; liruk front .'lIK'd in' hollow walls and lo the plate. i Brick froul 60 cents per ¥100. 75 cents per «»10(t. j »4 cpnts per $100. 90 a 100 cents per fTOO. Subsequent to 1835, this classification was omitted as a part of the pobVy. I J!».S. The CLASSIFICATION OF ltriLPI.V(Js .idojited by the Xatiun.^l IlOAKU t.iF FiKK Unmlkwuitkks, and applying to nil kinds of buildings witliout reference to occupation, is now tu(\st comiuouiy accepted among the ofiices, and is jnobably tlu- i-est CLA8S1HCATI0N OF TOWNS AND CITIES. 551 for practical purposes, as beinjz in general use. It i.s desiiaiatud by the first f(nir letters of the aljiliabet, thus : — Class A represents a hiiiliiing fire-proof from the outside in eneri/ resjunt ; Iiaving 110 uiKjii work expo^^c'^^ ; beiiijf of l>rick orHtoiip, irith luary firv-WdUn ; metal, xlate or tile roof; cornice, il' any, of metal or nione ; nivl tlie doors and shutters over all oponinws, front ami rear, made uf /i ear 1/ iron, ami "t't in iron franies. (ISJtfi.) Class B represents tlie next best eoiiHlrimtioii, similar to Class A, except being iletioient in tin- iron doors and s/iutlars. It i.s customary, hiiwever, to class ordinary brick. m<$I.) C i.ASS C re[iresent^ the ordinary stylf oi 'irick or stone buiMinj;, with sliin. gleor composition ronf. C" ASS D rejiresent.s woulen buildings generally. 141ltl. The following aildiiioiial or intermediate cla>!.sili- cations are used by many companies to more particiUarly des- oril)e buildings rating as extra or nuniher one of theii class. INTERMKDIATE CI, ASSl 1- (CATION. Bli representing a FJ building with some iron fliii.ttern, good fire-walls, and otherwise of superior uiiiistruction — closely allied to clasi^ A in regard to safety. CC representing a brick building, with roof partly metal, or Hie letter soitof gravel rooting, gijod avails, and nn tfoi'den ruruiee -'\>.\moH\. & 8. DD representing a wooden building, with metal, slate or tile roof lo»0}'liiHl from cisterns or otlier fail- water snpj)ly. ^th Class: — Ordinary country towns without lire depart- menta. OMNIBUS BLOCKS. I^OI« (hni)ihv,s hhjcks, bO termed, where two or more huild- ings of brick or st(ini! .ire uiuler one roo/, having openings or eonnuunicatiiil>- I'lf hall oceuiiying the entire U])per stories of two or more of the buildings — the internal division walls, and sometimes the external, rising only to the roof. ISuch rank only as C at the best. But when the tenements arc divided by studding partitions — the first store only having brick divi--iniis~-feiicli rank as DI) or simply D. Two or more btiildings liavimj interior eommnnications on one or more floors ocoujiied by the same J'iirly, thrdiighoiit with the sanu' exposures, will be considered as one risk, and the rate is proportioned to the e\(ent,. FRAME KANOLS. I«i03. Pnildings of wood, in c1t)se {iroximity to each other, usually adjoining, are known as "frame vaiujus." T'l constitute a "frame ra)ic may be. CLASRII'ICATTON OF liUILDINGS. 553 FIIIF.-WALI.S. 154K<. FlUE-WALi.s — Shtiidard : In lniil(liii<,'S of ftr or moil' stones, llio fniiinluUon walls of brick shnuld bo fiom twenty to twcMity-fonr iii<;ln)8 in tliickiitjs.s — if done, not loss thiiii two f(iet — tho siile walls slioiild ])ti sixteen inches in thick- ness, or twelve inches if ledged ; and should rise id)ove the roof tvo feet or niore, avcU coped with stone. 1504- F'lve-walh ai(? souietimes improperly dosit^natcd as "l'All.\rKT WALLS," While fdl projicr fire-walls shnidd havi^ a 'porapet or breast ivall rising above the roof, a parapet wall is not necessarily a Jire-tnaU, exc(i|it in so far as it amy afford pro- tection against l]ri». Fim-widls should Ix; without openings; or if there be such, they must be [irotected with lire- proof ^/t*//^t'rs hung u]>on iron frames. (1312.) 'I'hi! lloor-Joists slwuld rest u])on leihics bnilt in the walls for th:i.t purpose, and enter thn walls not less than two iiu'hos, to give them steadiness. Where (ioor-joists :iie let inln the walls, idiey shouhl be beveled, and so placed as not to c(ime 0])posite to each other in adjoining buildings, or so as to touch at the ends, and thus commut.icato lire froui one building to another. l*>Ot5. Iiicision or parti/ 'iralis, in blocks of twn e a protectinn against a fire fairly under way within tliem. Tlu' naUs of such often fall with crusliing force, doing corresj)onding damage. Exti'ii liirge blocl>'s are liable to the same ^'ontingencics, in case of a lire once fairlv started within one of the stores. 654 ROOH«. WlitTo innMiiunfilik' liquids an; containod in buil refi'rrecl, art' rofpiired to liiivo licuvy (iivinion wiiIIh, fiml (itluTwise rctiilnrfiJ mas-iive utnl ncHrly firc-pi'oot', it wmilil hc'iii to lie iiti atjsurilily, wure it nut a Htrioufi mutter, itj allnw to tx' jjlaoeii on mik-Ii Mtruc- turofl anotlier IjuiMing, built ot'pine or otlicr \'m\\t wikhI, covercil with Hliite, or, worse niill, corruf^iitcil iron, and. from want of co|)iii>»s totlit; face of tlic ilivJNion isalls, to expose not only tiie Imililin;: itHcIf, hut it?* n(i;.'hliorH on eiihcrBiilo to ilestruction, as no barrier (.)f ail} kind would exist to prevent the extension ol a tire." CORNICES. 1510. Ilrick, stone, or wood, coverod with iron, zino, or |ilain wood, iii'c tli(> Viiriiiiis kind," in ui^o. These latter oro iisiiuUy made elaborately heavy and hirge, an'l invite fire from aiijoining or even di.stant buildings. So also with what are coruiiioidy called Biirge hdiirdu, — a eorruption of the term " Ver,[,'eli(ia,rd,'' an incliiK'il, projecting board placed vortieaily at the gableond of a building, liiding the horizontal timljer-endy fif the roof. These verge-boards are of wood, frequently very heavy and orim- mental, and hence quite ready to take fire. When buildings so adorned arc; in close proximity, they seriously expose each other. DKADENED FLOORS. 1511. Throe or four inches of mortar between the floor-joists tend much to the safety of the building, by confining the lire to the room where it commences, until it can be extinguished. Such tloors, with iron laths for the walls, would make it almost impossible lor a fire to extend beyond the room where it com- mences. Haw dust or similar inflaminaVile material should not be used. FIMvJ'KUOV DOOIiS AND SHUTTERS. loiii. A door, to he a safety stop to the projijres.s of fire, should he con.^trnct ed of two or more thicknesses (according to it* liiniensioi's) of j^ood, niatehed pinf hoards, free fron) pitch '\iid knotf, crossed at an aiijrh- of alioiit lorty live degrees, wroiiglit-naiied and clinched ; covered on sides and around the ed^^ea with good quality of tin ; tl>e sheets to \>e hooked or lock-jointed, and Recuvrly nfiiled at tlie Kick lines with ua\\< not less than one indi in length, with til'.' ti;i lient and hainrnore'l over the nail heads ; no solder to he used. No airspaces left under the tin, as the more f-olid and compact the liuor the greater the lire resistance. 656 FIRE-rnOOV DOdliS. All ,f»"//i,;' iloiiis 111 hivve heavy wronirlil inm -l."ii|i liiiiifp--, liulinl llnonj/li Hiiil -I'l'urcil liy iiiit-'. (Scrt'ws will ii"! uiifwcr, in tlu'V ivnrk lon-ic liv ii»i'/) 'I'lii' piniliv^ (ir lii"il<^* to li(> .stM:uioly Hiiclioreil in >' «iiiiii'|y hnltrdiu lilt' ilo(>r, like llif liiii;ii'rt ill n\viligili)i)rn. 'J'lu'V -linii!'! iiNn In' iiiiili' to over- lii|i the si.K- iiihl |o|i of till' o|.('niij!; (Vdii) tlircc Ic t'oiir in In-', miii ilini into jiiinlis of iii;i>oiirv or i-i'ooki-il inch iron liolts, to liolij ilic iIhoi'jU ((i|) aihi liolloiii friiin \var|iitij! oiil wlioii ciosod. All (lipcrsill.- to lio of .-tdiie or other solid inii-'onry, and Mhoiild rixo one or two ini'hi'H iiliovc tilt' floor levol. All door jiiiiih-, i:u>'in>;>, cti;., of wooil cliDiild lie f^i'Liiri'l.V nluMitlitnl with tin over "'vcrv opciiiii;! wlii'rc liri' ((jiiid peiictnic. Wlii'ic these tin-covcreil doors are exposed to diiiii|iiir.->< they .should he covcri'd witli a coat of jjc'Hid paint as a preservative The udvaiilii^'i's ot this kind of docjr are that they onnn il na-p, evi'ii with the ;:i('ali'!.t luiit to which tli<'y woiiKI he ordinarily cxpi'-cj, Hiid.thii-' IciHie (he ihrMiii-h; wliiic the tin, froii- its thinness, eaii lu'ld iiu hody ollire to biiin the wuud lienealh, which hy the way k/h-iI in'ii, hoinji a thicker melul, Would <\>>, tc> a ^rrealer or less extent, under similar e\[H)-ures Iron, on the other hand, soon gels heiiteil an i iiiwsl expand and warp, and the thicker the iron the more will it expand and warp, and thus create open- ings for tiie llanies ; or. if holted permanently, will he heated to redness, and thus becotiie tire itnelf',endanj.|;eriiigeverythiiij;aroiind it The Mew Uiiglainl Factory MutuaN, soiDe eij^hteen or iiiiieteei) in niimtier, all rec.oiiiinetul or require this class t>f door.s and shntttuv-* in the mills they write upon. Such doors anil shutters, properly aflixed, will entii'e the iiisun'd to a pru- portionate reduction of rates. Ziiir as a covering: for doors or shutters affords nu protection, as it fu'jcs like lead in contaet with heat. I>>lit. It udl iinfix'nuetitly iiccms ihat tiro-jn'oof wiiiilnw .slmttois .iiid ilour.'i fVuiil'ii;^' ui>on tlie sti'otft tuv ia.stiMU'il .so iseciirely a.s to |ifi'veutllieii' being ojieueil wln'ii a tii\! occiii'.siii the biiiMiiio-, iiml ihii.s delay acces.s to Uic, lirt'iiiii). To avoid Uii.s dilrmma ciit.' .shutter on each story .should be so ai'iaiigcd as to be icjubly opened from the outside in cases oi eniergency. Iti fi.sti'iiiiig these shutters so securely the fact seems to be over- looked that they a,i'e not intended a.s .security against thieves, luit to (ueveiit access by surrounding flames. The aiithot calls to mind a case, some years since, in the city of ].>Miis\ illo^ Ky., where the whole (iontents of a cotton mill warehouse were des- DUMMIK.-;, KLEVATOIIH 55: 10 troycil liy fire iluriiii,' tin- i\ii,'lil, liiit imt, tlisccViTcd nnti iiiuMiiii!:,' wlit.'ii tryiii;,' to oihmi tlm dooM. W'lit'ii wi'k' ilour.s lire iJoith'r, ona on each side of tlii' niiciiin" as they slioulil Lc i\,v sucinity, tlio [.intlivs should he IniUed tlin ii,t,di the iiitenciiiiig wull, 80 that neither can lull and leave tlir (illicr uii|ii(it( ctcd, Fu'e-iiruof sliiiffers or doors hnng upon or in (■(iiincctioii wilh AvoiMJcn fninioM, in a wasteful ex[if'nditiiro of money; the v(;ry ol'iii'L iiiiiied lit is defeated by tli(> wvjotlen frame in eont.irt. |,'>I4. 1[ki.ii; ''Tliiit tlifilcHcnjition ill ft policy, ' iron .-liiitU'rs un.l door",' vvliiiiit T rcjiiiriliil as n rcpn-ciilHlion or wniiiin'iv, wu'^ Milisliiniiiillv imc it tlicic were ^i\d[ s/ni tiers ami doori, iii\<\ ilui n"f'\uc\ndi.' hv iiii|ilu:}ilioii tlie ilnty (il kct'piii}; tliem ulu-ii'il,"' IIki.I) iiUo: " Tlmt llif liii:t of tlipjr l)eirij,' f'pi'i) in llic niiildlr of Ansj;ii«l, at liiilf past eiglit o'clock r. M-, wiih no proof olnt'gli;;pncr." '^ 1.115. lliiisTWAV.- or jiM'ciiKs, thron<,di wliich meicluiiidiso IS usuully elevated, are now generally boxed, tiii^y should be sui»iilii'(l with llic proper doors or slides on each IImoi', to be closed at all times when not: in use ; if such doors or slid;'s be firo-proof, so niueli the iielter. DlM.MiKS, Ki.Kv.vToiis; Apparatus for elevating jieisons or noiids to (lie iippei' stories, operated by steam, rjid usually inclosed or boxed tliron;.diMut, villi 'MM-uings upon each floor. As ordina- rily C(ln^tru( ted. ilicy lire Hues through whieh llie ilaims liiid ready access 10 thenp|er imrfions of a building. A iiiodMJ deNator shaft, according to a rei'ent schedule of the New York Board of Fire Under writers, is inch»sed in brick walls throughout with aiiloiii;uieal'\- elnsing trap (lours at each lloor, with glass lights at till' toji. Such shafts would act the part of a chimney and carry off the llames above the roof. I'lK*. Wi:i.i.-iioi.i:s ai'i' openings more or les^ large, in the floors of the iijiper stories, fur the purpose of light and \'entila- tiou to the stories below; they are usually secured by a railing or rails, and are often covered by movable glazed sashes, pro- tecti'd by wire netting at the roof. 1517. SKVT.KjifTs are openings in the roof, covered by glazed ^ash. for the admission of light to the floors Ix'neath ; they afford entrance to fiies from neighboring buildings, mul should .^Hi ^>. IMAGE EVALUATION TEST TARGET (MT-3) /. ^ 1.0 I.I ii-Mlill IIIII2.5 M 1.8 1-25 1.4 1.6 ' 1 6" ► Hiotographic Sciences Corporation V S V 4? 33 WEST MAIN STREET WEBSTER, NY 14580 (716 1 872-4503 #> 9)'' n7' ^^o => 1^ r^\ -?-'■ 558 OCCni'ANCY OF THE lUJlLDlXO. ill all (Msiis b(i ])r(.t(;cted by wire nettintjs, sufticienUy strong to wuhstaii'l the weight of any pieces of tiiulnir carried hy the winds from a ncij^hhoring fire. IV.— OCCL'l'ANiJY OF THE I'.UILDING. IfSI.S. Oi'cupatioiis (Iik! t.ades nre classed a.s non-ha/iard- oiH, hazird'His, extra liazardniis, .4II1I (specially li.a/.ardoiis, aciioixl- inc to their .several iiaturt?s and ri.sl<.s, and ail'ect tlio rate in the same rutins. ( I.H5.) J»1tlll. Tilt' m'xxlmunt hizinl of anyone combined risk rates the entn-e pretaises, so, where a building, or range of be.ild- iiigs i.s oci'.upiod lor varicnis trades or kinds of busine.s.s, .sdiue fiazarihiiLs and .some extra hazardous, the highest rate of any one oC(ii|)ation will rate the remaimter. Si> also with an A 1 l)iiihi- i",^' ; hy specially hazardous occupancy, it becomes subject to ,sj)eciitl hazard rates. Stocks of general inerchaiidi.se, when; benzine, benzcile, naphtha, gastiline, or .\.NY fiimUar o'il» are kept at all, arc to be rated the .same as drug stock.s in similar liuildings. 80 with warehou3e.s where goods of low value, as jute, hemp, cotLjn, ]ietroleum, etc., as well as tho.se of a highly iiiHamm.ible nature, as camphene, varnishes, oils, etc., are stored in the same licalily with goods of higher value, l»ut ueith'T intlammablc nur combiistii)le in their nature, the former will rate the latter. Stocks in upper stories of large store buildings, especially when very extensive, should pay an advanced rate over similar stock iijinii the grade floor. ]f12pliances attendant upon the nature of the busin(!'-s — as the " oflal-rooui " in wuodworking operations ; the " j'icker " and its siuToumlings, as well as " waste, sweejiings," etc., in cotton, woolen, and other similar mills. v.— EXroSUKES. 152I. Ill estinmting ilu! value of an insurance risk, the mat- ter of exposure— ejj^t'r/tai aud internal — becomes of the great- KXP08UKES. (»>t2it. liiolalcd dilfcrs fi-im detached Isolated buildings are such as stand entirely separate and apart, beyond ordinary Inuumg distance, not less than one hundred andjifty feet under ordinary circumstances. Sprt^iid ht2'l. K.rfernal i^xpo>on the property at risk in each case , the division walla ^> m 5bi' EXPOSUKES. nml their niimt'ity to jiroveiit the s|)if'!X(liii<,' cif fire .should ;ill receive espeiiiil and oaieliil cuMsiduiiitioii. I>1»t25. fnteninl e.rpoKarej< nrise cljicfly fnmi tlio nat^irc df the ucciipiiin y. VViHMi-wdikini^ c.stahlislimi'nt';, (ir " 8haviii;_'si risk.s " -•(•spiM'ially soft wodil — hiivo imich iiinrc serious intfntitl vj'pimire than ordinary inannfacturin;,' estaltlishnient^, as cottnu or WDnliMi milU, or hiird-sviMjd Wdrkiu;,' shcii.s , Mliilc wiiddiu'^ and Iiittiii^', IT llax mills, are nuu-h more danj^erous than ( ottuii ov wodlcn nulls. A iiiannfacturing risk of any kind nfVcirs mure maicrial for fiics than non-ha/.ardons or siniply iia/ai'il"us occu- }iatii)n-5, and are rated accordingly. Ill ,i(,n' iaitvi d'lur sluinhl h' so iirranged as l(( open at ri},'ht angle svith, and not in front of, the furnace doors, as is too frequently the case. In fiitton :ind vuvU n mills, nil iraste should be clcau' d out daily and stored m iron receptacles at a distance from tlir mill, as it is vi-iy liable to spontaneous combustion. ]u ii'iiii >iiii iiufiietnr'nuj estdhtixhiU'-ntfi, greasy rags, drip ping of oil among iron borings and tilings, should be cai'cfully \vatclu'(l. Hariids fillrd with water — well salted in winter to piesi n! (ii'i.'/iiig — and .i full supply ot serviceable buckets should always boat baud, tluouglioiit llie building. SCHEDILK lIATlNt;. If'^'iO. :tle rating, as distinguished from ftpccific or iJot ralii'g, Is ;i >ysten) of allixmg [trices by starting from a pp'vioiislv carefully adjusted hnnin rtitc, ii.\(;d r.pcai a s^amhinl building of its class, and adding thereto, upon inspectiim, for any dc]iar(uie!) from such standanl, according to the " scht'dide" adopted to meet s\i,'li cuiitingencitis ; the insured to be allowcil a pro[)er credit tor the removal of such deficiency, thus placing it witlun the ability of cai'h insured to control his own rating within the scope of the stamlard of his class. The rating upon contents will bo controlled by that upon the building. i61 VI. — KlUlvKXTlNdriSiriNG KACI LI IIKS. 1527. I'lii' iniitliM (il Ji ir^ejctiari II inking ftUHlities available in cases of fire has an important intlut.'nco upon nitos, as tending t(i (inlnince or 'liininisli tin' cliancu.s for salvaj,'t', Watur faeilitins din'fr \vi(U;ly in tnic.icncy at vanmH localilifjs. Soiut; have llio "Jlolly " or other systtMus avaihililr it all tinu-.s; sdnie liavo the modern sti am tirctMij^inc, and paid tirt- departmei ts. ()th«>rs are satistitd with the old-tiinc " niaithint! " and MihintiM'r depart- ment; and still others trust to the ehanocs of vol.inltjer "hueket- carriers," and tlu> sui»])ly of water from adjaei'nt streams, or the wclKs and cisterns of the nciyhhurhoud. !,lt1»OOa.; l5tJ.S. The introduetioii of vuiferivorks, nwd tin; use nf 8tea»a Jircciiijlnes ready for emergencies, have much ledueed the (»rie'_' of insurancii in localities where these fatalities ar.' lo he found; thoiii/h il is (pU'Stioiiahle if the reliictii>n lu pii^ niiumsby firootlices ctaiceded therefor is warranted hy theaclu.d results to them. That the atfures^Mte saving of propeity at tires by these means may he large, and inurts to tlir licnt tit of jno- perty-holders — the uiiiiisiin'd especially — is iindnulited. Hut, inasipiuch as the umli'i wriiei pays for damages bv >riiU'.r usccl in extinguishing t,ho tianies, as well as fur htsses liv /?/r, and as in most instances wlien- then' i.- any sah'age, it is because the tire has been sivamjjet/ ')"' liy the free use of water, it becomes u (juestion of some iutere'^t whether thf water diihituje is not quite as great as if not in r\i ess of the actual fire loss, espe- cially with stocks of goods easily damaged by water and sm ike FlUK I'ATROLS. I5'2f>. In many of llie large '"ities "//'/•»■ ^/a/zu/.s," iri'-ily at the expense of the underwriters, havi- been orgaui/"d, whose duly it is to lie present at every tire ,iiid piolccl good-; l.y spreading covers in such a manner as to secure them from wati r from floors above. .And it is wonderful with what rapidity the.se covers are spread, or hung upon the wall- to protect the, shelves. The salvage accruing to the oflices amply repays the outlay for men, horses, aud outfit. 562 FniK-EXTINCnSlIINU FACILITIES. l.litO. However iiitt'lli^'(Mifly water nmy k; hainllt'd in the oxtinotioii ol lirea, il is, iiuveitlieleHs, a i'a|Mii'ions element, destvoviri;;ni<»iv than it suecurs dl' <,'oo(l.s, wares and nierehiindise, so that niitlerwriters, 8l> In mannfaeturing estalilishments the lnltriKi! a I'MiUfOxeiit'' i'ov meeting tires sjioiild bi; adoiinati; to any ( iiier- geney. To this end what are kunv, n as "automatic sprinkh in," or fire extinguishers, have, within the last few years, come into (!>.tensive use; in leading niaimfactories, iu iiiniiv stores, and in theatres, with much success They consist of a sjstem of ja'ping attached to the ceilings of the romiH wla^ro used, connecting with ■III amph; supply of water, and having, at intervals of from six to U'u feel, distributing heads or "sprinklers" working by force of !lie water, acii o| whieh will cover a cir' le of many feet. These sprinklers are so graduati d as to l>e set in motion by licat w la II rising r'>uve. a certain degree in .my pcation ot the room, the >|innl\lei in that part only operating, thus avoiding damage to the uncxposeil parts of the ajiartnit iit. When effectivci they are of great valiu', .is by them the lire is averted before it lia:i time to gather headway : but like nio.st other solf-oj)eratiiig maehiueiy. it will fail at times, hence needs constant watching, r.uildinj^s httcd with these sjirinklors are called " -^prinkhMl," an 1 are much sought after by the companies at reduced rates. 6G3 VIl— PKOUAI'.LK LOSS, IN TIIK KVKNT Ol KIKK. Itlit'J. A-- tilt' oiimu't's t'cii' nalrtKje iilwiiys t'liU'V liir,i,'i'ly into the ostiimite of rates to be cliiirj;e«l upon any jjivon c.la.ss of lia/anls, ili<^ prohnhli- loss in Cdse of fire becoiue.s a .sorious question. (ITTtt.j Unlorliinatcly, tilllionj,'h jirogrossive ii)Vct»tiji;ation may nuiicatf something,' like soii'iitiiic results, the law of Hie destruction yet rcnniiiis uusilved. (I»ii 1.) |r1»:{:{. Kxi'i'ptionally larj^e lin-s ilo not compose tlie great bulk of the losses of the counlry in a your, tiiou^^h they may largely increase the averagt^ for a given locality. They intervene spiisnioilically ami disturU the regular tariffn, l»ut d(j not serve to ehange estaiilislied bases. in^M. An estiniale o[ (hinmi/r likely to ensue from fire is a inittrr solely of experienoe ami judgment, founded upon the milnri! of III'' }ni:ar>l. It n>\M \\ happens that the degree of inllaiuniuliilily is in proportion to the ri.sk ; I'onseiiuently, the de>tMirli.)n of the property is mort; w less speedy and ''omi'lete in the ratio of its " fire destrnctiliility." I>>:{.>. flie Idss where extremely dangerous articles, such as beuznie, naphthu, gun}>owder, and othercond)iistibleandexiilosivo gubstanees are present, or m miinufactoriv^-s of the moi'e liaza?'(lnus rla.s-'es, where wood-workinsj is carrieil on to iiny ext(Mit, may reasMual'ly in' eounted upon to bi! total as to the insurunce, and shouM be met by corresponding rates of premium. I>>:{(>. Ill non-hazardoiis and hazardom risks the actn.il damage liy Jii''' mtiy l)e insignilicant, while the injury resulting from water or smoke, or lM.)th, may be large, partictilaily to stocks ot tea., coffee, sugar, tobacco, ami drugs, which sufler materially from lirater, or smoh' ; while inilliuery, uphol- stery, siielf hardware, books, etc., etc., are ruined by either to an extent not a|>iireciated by the inexperienced. In the matter of j)lati'-glass and mirrur.s, l)iit slight beat uill crack them ; while fresco aud gilding, pictures with their framos. aud other decorative r>fi4 TAXKS. MCKNSKS. I>KI>MSITS. uddnuiu-rts i)f tl\vclliiif,'s ami stoivs, arc scriiiiisl\ iiiipiiircil liv water niiil stnuki,'. Oil the ntlicr liaml, limits and .^Ikpcs ajid ollnr " |ii(lcrrf(i stocks" suiTt'i' Imt slii^lilly Inim tlic uaust'H iiaiiiiMl. r.iit wlwn^ no lin> patrols an' at liaml, tlirsc <'(Hitina,.iici('3 must Junn uii unjinrtiint part, in the usliiuiiU' of niU::?. l5!tT* Aiiotliir, and liy no iikmih uniniportant olcniriit iniiHt ••iiirr into tlio (sluiiiit*) uf prulialiilitics in lliis nd(nt iipmi the fueility with will' h llie pr(i|ierly nin he coneeiiled and carried awny. ami i\\c viWV lifstowed iipiiii Its pre-ervutimi liy the mw ner or the j)oli('tinL;ui>li the stnlell fidni the hurned in the .idjiistnieiit uf the lo.-s. Mil. -TAXKS. LICKXSKS, l>T;i'n.^lTs. 1»'5J{S. Wilde the -upreiiie jiidicia! aiillicriiy uf the ciainti y has di'cid{ d that individuals nf diie Slate are eir.iiled to all the rights and iiuiiiiinities nf . and ujmhi the .'iiiniu terms as citizens of all}' other State in which they may snjnurn in the pniseciiliun of their hnsiiK'SS, tli<^ same hij^'h authority has rnled that •■nr- ■poriiliniiK havt? no ri|,'hts, nut^idc of the State that f,'ave tin in exi-^tence, which sister States are lioniid to resiicct. The result js that ill j>i>s)l.^, Hftiiisi's. fitj'i.'^ and j'li's have heeii, in some I e\V' Stales, assessed u]»on iiiHiimiico corjiorations es[tecially, until lliey have liecniiie almost, if not i|uile, proliihiloi'y. I''v:{{». 1 1 n consec|l|eiie(> o f this restrictive Hperinl fn.nti 'Kill sriiiie Slates, tlu; roinpaiiics of wliioh snffiir thereby, hav(' adojii^d refaJidfiiry leijixlatioii, ooinpellinji the companies of such other Slates operating within their se\i.'ral jiiri.sdictioii.s ti; submit to TAXKS, [ ICi'.NHKS IiKI'iirtlTS. 660 till' aatnc UixatiDu, U'xm, Wvmuv. and doposilH an may bo rcciuireil by tbi'ir mspcctive Staten. ItllO. Ill u'liiilion to Mtate ilfpot^itHy vaiviiij,' anvwlii'i'i fiDiii ten U> f'if'if tliDU.sawl ditlUivH, for each a^oiicy caiiy — Stalo, comity uii'i iiiiimcipal licenses, vaiiLjin^ In.iii tivenlff/nw to fifldv Iniiiilird tir|>o.se for \vliii:h a )i»!niiaii(.'.ut Honrcc of rMVcmic tiii'^'lit. In- ntu'iluil. 1>'^ll> Nor is tliis all. AgtMicy insuraiiw roni| iiiin -i aro furlli'i siibjc'ctcd to aiiiiiiiil x/.f^, I'lmiify ami muukfxil fu.rrx^ varyin;; from our to jirr jicrciiit. upon tbti (P'dhs renlptti {>[ pac'li, ami 'his Kininl.tiiiK'oiisli/. And to .SHcnrc tbc paynit'tit of tbcsc (;xo;bit;nit as.scssim'iits, (ij,'<.'nt.s aro, in nonw. lomlitios, eoiiipfdlt'd to i^ivo bonds in iiniounts from/'w fiundrvif [<> hvo //tc".-" //(/ dollars — nnd(M' p.-naitii's for failiui' U) comply witli any of tlio.si.' provisions in tli'- form oi finm, varying from jlve Jmnilvdl l<> ////•'■(? thoiisiinil dollars, und, in somo extreme eases, hiipi'isoiiiiieiit itj llw (iiirnt from one unnith to o)ie. i/i'ixr on hrcitd and water ! t>%l'-i- Kdi'tniKitrly llu'sc pyoh,ihitor>j a.s.sos.sraent8 are «'oii- fined t(i a coni|iaiative.ly small nnmber of SUites, In otlii-l's tlif iissi'ssmt'iits WW com[tai';itiv(dy li made to cover expeiistis of lieenses, fiies, taxes, et( ., etc., where so beuvily imposed, as it is no more than even-handed justice that, the oomj)anies should be reimbursed by an additional premium to 5nG UKIATIvK AMorNT 01' IXSntANCE, iiioft tliis t.ixfttioii. Tti San Kmiicisco, Cul., wIuto ft fno por cent, city tax is iisstssi'd ii|miii pn'miiiins, it is (Mirtt(»riiiirv ti' aiM it to lilt' ipii'iiiiiiim I'liiil \>y tlic iii.snivil— a ciislntn, by ilir way, well worihy vi uuitatinu t'lsi-wlu-re. 1\. KKl.AilVE AMOl'NT Ul" INt^UKANCK. PARTIAI, VKUSIS FfLL INSl.'KANCE. I'll I* A V((rv niatt'M.il jioiiit in tJNJTiu' I'ads, and one entircl) uvorloKkod I'y in» xi-'rivnct'd uu''uv\\v'\{i'iii,iri flic rtluiive aiiKHiiit of liLKurunci' In hf. taken an i'om/>ai'elit;y ("t S-", <'*)(), upon n stock of inorohumlise valued at S.'0,()im(. is not an in.sumniv of Sr',iK)it npon any spi^cific pnrtKni ' value of the property at risk. Hence, the ouiK-r of ^'oods wlm i:ii\i;!s only <.''oiil[ jutrfliU insurance, the lo^- on this minimum .imount will in; total ; a blight examination of the (loclrine of chances will jshou that ilie premium in such eases is nut proportioned to the risk. It is for tile interest of insurance enmpanie.s, therefoie, to sec'ure, up to a certain limit, a full insurance ujion jiroperfy, either by policies direct, when circumstances will admit, or by the aftplicution of IfKLMIVK AMOUNT (>K INSUBANCE. 567 onp of tlu' pro latii claust'j*, tliin i',omj)t'llin^' full iiisunuicc or its ('(|iiival''iit. (JI'll.) II. KNIIANCED VAl.l'KS, miA. Knkd.nceit ralwa aro fqiiivalpnt to pnrfml insnr- By eiilirtniM'tl vahuM is nicanl any inarktMl f>i sjicoulativc en- liani'cnuMit in jiiice^ after in8iiran»!t>, as was tho cnm' ihirin^ till' latf ' unplcasaiUiiosH," when iifopcrty frwitu-ntly (louhlt'i,! in valuf ill hands of the insiiivil, without additional outlay on his |iart, or iiiornasu of iM.suraiu't' or paynu-nt of taihancHl |ironii(iins tlu'n.'on. Whiltt enhanced valnrx do not inorcase i\w. degrer of hazard (asid«f from tlu- moral fcaliiro), they do increase the Unhility of the nndcrwritt-r to loss, upon the principle just stated m\d(T ])artial insurance. (154*1.) Hi^^hor valu.itions call for a ;:;rjrgie<,'ation of subjects a.s in compound policies, i;du.sing enlarged values, or from decreased rates. 1{^47. I'lion ihn principle it is that c<)mji()und or collective jHilicies are olijectionalile, as a loss upon one of the subjects — e([uivalent to a partial loss only of the value — may sweep otf tho entire policy, leaving no reci)urse upon the remainino sub- jects of the insurance for contribution in the way of salvage. It is just here that the et|uity uf the grach'tl co-in.surance i'Xawiv. (JIIIO) is demonstrated. Under its stipulationa the entire property is under insurance, either by underwriters or liy the owner as coinsur(!r, and in the contingency of loss tho insurer pays pro rata only as the agreed value f that portiuu of the juoperly nndei tlie prott'c,ri(Wi of his policy liears to the value of all of the property at risk, be the same more or less ; aud at the same time he will have received a full equivalent for the proportion of risk assumed by Jiiiu. .«t}8 MKi.Arn'K AMoryr of inhitiunck. HI. Fl'r.L INHUUANCK. ■ •5|M. Full iiimimnn*' Im tlio i'oriv«'r««t» of tlic jiioiioHilion* iiiiilcr /'it/' tilt! aiiiniiiit III loss ti> tli<- iiiiiii'i'wnti'i , tliu lur^ur the liiifs ot' iiisiiratii )• (aiiii'(l, tlic Icsn the piuportioii ot' l>^ii.'al (Ifihu'tiiiu IrMiii tins |irii].i imlicy ii]>}ir(ixiiuaritiL; ni aiiionnt tlie /till nihif ul llu' jiminrty .-.linultl lint jia) as iiiiicli |iniiiiuiu iib u I'uli'.y lor uui/oarth ui" OHf- teiidi of !iurli vuluf only. fSIlK The liiii Mr. HtiHK fin Ih'h work on Averaji*' i\tljustiut'nts, 1'. Id?) makes a iiiitlicinatit'al valuation of tlic risk sliowii:-^ that liahility tu lu^s, n\u\i.'r /nil i n tin nine*;, wmiM not cxccfil alKiut/o»r tiuifs \h<' lialnlity under an insurance of <)/(<.'- t'-nlti of such value only. lU' says : — " WhfTr uri iiiHuranof of (:I0((. on n vnliic (it'^l ,rtO(t, pavK prpiniuni I'l.OO, /in ifiHiiraiice of |tl,(l()0 dull vhIih-) wniil.l piiv only /utir times (lie raif r illustration of this liuljjeet, see "Graded Co-insur- ana- elause-" dec. ROO < f naj. 569 AltJL'STMKNT of I'Wll. LOSSlvS. l5*tO> III cniiiicctioti with thin siilijoct. it imi) 1" wrl] to ilt'liim tilt l»>niiK iiiljKtitmi nt, aj>iu)rfi(uiiiii at. mu\ atiiliil-ni mn, a> tlu'y !in' frcmitiilly usfd f^yiMnyiiKiuslv, iliii'. criatiiij ..m- fiiHii'ii. 1. AilJiiHtiuint o( i\rn hmsos i'^ iisi-crtaiiiiiij,' iiiid li>iii'_; tlii- iitiKiuiii (if losfl tijioii thu proipt'itv uMili.'i iiisiiiTuice, witlimii ivti r- encc til the pon!|•ani^^•< inlfivsteil. 2. Api'iniioiiiDPiit of fire l'iss<^-i is tJic not of (Iftnriiiitiiiiuiunl ftj.|iiiiliiiiiiii^; the laliiliht coiih ilmtic ' altilifif (iiisiiiaiiif, of earh <;o-insiiiiii}^ foiiniaiiy ii|itin the a«y t'lu'l eiiiNuriiiy cit'nt l>y tho st.lplllation^^ of tin jMiJicy, tilioii the oi'cnrrenwof loss or thiniagt' 'ly tin- tn ili.- siilijoct.'i covered, 3(» tliat the liability of thi- 'uhui'it and the i('>|ionNii.iIiiy of tln! insur(;(i, under the terms and rei|Uirejiientsof the eontrac!, may ho accurately determined und adjusted; to tin- end tli:tt, while the uisured ^hall ht^ ,)'>^fly indemnified fni his loss ilu» insurer shall not bo ealltnl ujioii t(. contribute more ilum hia eayment thereof. I5«12. An adjustment i^ aconipromise, whuh by a;,'iv.'iiient fixes the rights of the jiarties to the contract ; anrl !>y deternuninj^ the amount of the loss iKJcome.x an admiftHioii, m tin ibsenee of fraud, that the insured is entitled to recover upon the (oi\tnut of insurance. It is, howevei simply an ogreiinrnf In /"','/, wlii(;h is binding only when (tting aside an adjtistnieut. liut an adjustment made through miilUHl ii)i.stake and misundtir.standing of material fiicts by the parties is not binding on eitii(;r party. Or, if there be fruud, legal or moml (HHS), by either party to the adjustment, it will DoL bind the other party. (I»tt7. I'angk'w ('. Huleti, 2 iobus Cases 151, 23.3 ; MaltbewB n. Ins. Co., 9 La. Ann, 5t)(). I«)r>l. Thf policy as written, and lite policy only onvM control the adjnsfmoit in ercry instance. "The /a!y defining the rcdation between the insurer and the insured is the policy of insucancc, with all its clauses, conditions find stipulations, by (which their mutual rights and liabilities are to be defined and measured." (4 Wr. Pa. [40 Pa. Sta.] 289.) Hence the basis of an adjiistniciit is the contract of insurance, with its rejiresentations and warranties, together with all the written and printed conditions as they may be modified or con- trolled by subsequent indorsements, as given in the written por- tion'^ thereof, without reference toimy alleged verbal agreements between the insured and the agent, not included in or indorsed ujion the jtolicy Ix'fore the occurrence of the fire. This should be the first lesson learned by the adjuster, and one never to bo forgotten or varied from under any circumstances without proper authority. Anv claims of the insured for a construction of the pol cy at variance with what apjH'ars uj)on its face must be submitted to competent authority for consideration and approval before being allowed. The policy, or a copy of it, .should always be present for examinntion and reference, in cases of adjustment of loss under it. ADJUSTMENT OF FIRE LOSSES. 571 jmHH' Tlu' processes of adjiistment, or rather of apfmrtion- T]ient of the Htvcral insurances in casus of general losses will ha simple or complex, as the co-insurances may be specific or iii- volvci], a.s incases of compound or Vjlanket policies interested with specific insurances upon the same risk. Tlie <,'eneral principles upon which any adjustment should be inade always remain the same, however, though differing some- what iu the methods of appliciition. I550. The difficulties usually met with in adjusting are not now sii prominent as in former years, when a loosely drawn aad indefinitely worded [H'licy often caused the adjuster much trouble as to the construction it wouhl bear wliere n(in-con- current clauses were found in antagonism upon the same loss; presenting at times seemingly opposing liabilities, rendering it difficult to arrive at definite results, and then only by compro- mise. Fortunately, with few minor exceptions, in all material points policies arc now so far in harmony as to cause but small difficulty from tiiis source iu the adjustment of contribution to losses among co-insurers. IStl?. A prominent cause of diflficulty has been, and will continue to be, dishonest insureds, who are " on the make," deem- ing insurance companies fair game for their ju-actice. They must be watched and manipulated accoi'diiig as their aims and objects at" more or less developid , masterly inactivity and eonstant scrutiny will go a long way toward meeting such fraudulent attempts. 15»>.H. li also not uufreqiiently happens that honest but igiiOrant insureds will oau.se trouble fnjm ignorance of the most oruiiiary forms of business. With little idea of the meaning of an insurance policy, or their rights undtu' it ; obstinate, avaricious and sus]iieious; pvoiie to over-valuation of their loss ; without boiiks of account or other vouchers upon which even an ai ])roxi mate estimate of the loss can be safely based; and, wiiile tlius unable or unwilling to afford assistance in arriving at the amount of losd, they are, nevertheless, ready at every turn adverse to 572 ADJUSTMENT OF FIRE LOSSKS. their olfiiiu to chargo the adjuster withatt-t^mpts to defraud them of tJieir rights. 15^'Sfl. And, that worst of ditTic.ulties — the ^vant of some dcjni'iti' (Dili uii'iformh^ rccoiinlztil rvle fur the. a[i|i<)rtioiiment of coulriliutivi' iTisurances aiuoi.g co-insuring eoiupaiiioM under nou-cuiicurrent policies. Under present praelice eacli adjuster is a law unto juuiself, and the result is confusion atul uncer- tainty uheTc precision and uuiforni certainty sliould prevaiL l»>1».'>. 'I"",) tiiis shouUl bo added the need of jywperly trained attjustern, educated in thi^ school of experience, and competent to handle properly the most complicated cases. The practice of intrusting the rt'imfdtion of a company, in addition to heavy pccnxianj responsiliility, to inexperienced, not to say reckless or unprincipled men, as is too frecjuently done, is not only prolific of guaut with danger, either fi\)m the insured, resulting in vexatious law-suits, or from other more skillful adjusters upon a common loss ; or the company otherwise suffers froui till' incompetency, if nothing more, of its adjuster. In addition to tiiese, companies employing incompetent, inex- perienci'd men as avljusters p"y heavij tvUnm fW'ti ; for, as a rule, it costs many thousands to educate a niaii to a fair er ctiit. for ju-umjil pHyiiient; fur, if ihey are |miiv.Miiiil incii anil value tlieir reputations, tliey will presently pay you ; if not, they will sliiiliie you otr and eniienvor fo (iiid out Maws, luul rai.-e scruple- for a liir;ier ahateinent tlian ordinary, ami sninetiines will kiep you a v<-ar oi- two out of your money, and runny times never pav, but s:et, in ease of loss, filleen or twenty per cent, abated. ( have kunwn forty per cent, abated on very small prell•n^ions, wliii;li make- a CDnimoti proverb almut >ui:li in-urers : ' W/iitl /.< // wurlh to infiiiri'. tlir iniiirerK ! ' Be careful, thcri fore, to deal with lumest men iliatvuliie their rejiutation, when you liavf iinythin<^ to he insured." I5<>4. Where, after the adjustment tmd fixing the amount of llu' lti.-,seiaim. " suiiject to tlm terms and conditions oC the jkilieies," in a subseijuent tiction against the insurers, the .Supreme Court of liliode Island construed the adjustment as incanino: "subject to "// the terms and conditions of the poli- cies" )i(il superseded by the agreeinfut ; and thiit the (lucstion of liability was nt^t uifected by this adjustment, whicli only deter- mined the amount due in case of liability. (Whipple v. X. B. & Merc. Ins. Co., U R. I. i:]U. 5 Ins. Law Jour. 71-81; Ktissell c. Dunskey, 6 Moore 233.) LEGAL DUTY OF ADJUSTERS. I5<»>>. Tlie fact that the insurance contract is vherrlma' fidi'h — of tlie utmont good faith on both »bh8 — seems frequently t(> be entirely ignored. While the insured is held to a strict accountability as to the good faith of his representations, he is usually considered fair game for the " whack" adjuster to make the most out of, in case of loss. Acrjusteis, as a class, seem to 574 rilE AlUrSTKH. b(! it^iiumnt of tlie fact that the law requires equally good fnith on the part of the coiupaiiies and tlioir ageuts, in the discharge of tlif iiMigiitions imposed u\)(>u them by the insurance contracti and that any tangiltle misconduct or misrepresentation of the riglits of the insured, Ky which he may be influenced to his own injury, 'Unnoo nting to a branch of ^ h'tjal dvtij' anxiiKj old of ihi: cuiiji'h nticil ridntionn nyuiriiiy thr. vtmost ifooil faith ill DKitiial (hdlingn," will be a \alid cause of action against aiiv cduipany so otleiiding. And (Jliief Justice (J.vmpuell, of Michigan, says: "There is no class of cases more readily relieved in etjuity than such abuses." (OOT, <>* If adjiislnig be an .\iiT, then is the thoroughly coiiipclfiit adjuster an AirrisT of no mean order of talent ; for there are few biL-^iness jirnfessions r('((uiriiig -;o many lU'isenfiid qualifu'ations to cope successfully with the multiludinou.s pha.sos ])reseiit(Hl by complicated lo.sse.s, whether the complications arise from coidiicting iioii-cuncurrent policies, or finin the villainies of shrewd operator.'? bent upon (leecing insurance companies. The U'ljuster's oflice is really judicial — not one of sim]ile i-outine ; large amounts not unfreqiiently de]ieud upon his honesty, vigilance, skill and judgmi'iit. lie is often called upon to act where precedents may or may not exist, and, if existing, are not alwMvs apposite, or to be pleaded for or against the admission of claims in a statement. Hence, he should be a prompt and ready thinker; possess a general knowledge of law and of business transactions, and endowed with quick perception to take in at a glance the exigencies of his position, iiu, legal profession, all knowledge, whether nie(;hanieal, scientific, or miscellaneous, sooner or later becomes useful and desirable in the [serformance of professional TIIK AIUrSTKU. 575 dutifts. This is especiiilly so with thi- (uljusfer. He shouhl be a cDinbiiiation of iui' rein nit, raecluinic, uuderivinfer, Lawiier, and iiFVI'l'lcrivE ; hi^ should ho .sutVu-ieiitly discreet at all ti-,ios to avoid giviti<; otl'eiise by liia niamier ; shuuKl j)os8esd the rare faculty of saying unpleasant things, when necessary to be said, in :i way calculated to avoid unnecessary irritation. The exhibition of an»;er and harshness on such occasions trnds only to the injury of his case, while "the soft word turncth away wrath," anil an unreasonable man not unfrctpujiitly yields to words litly spoken when he would resist, or submit grudgingly, i*" he must, to harsh and intemptnate language. Our most prominent ti(Jjiist<'rs i)ossess this gift, and to its proper e.xercise is due much of their uniform success in their calling, I54>7> In examining into the ]iiirticulars of a luss-claiui he phould act with ciroumspection and moderation, so that ?ieither the sutVerer nor his friends can have cause to impugn the f;iirness and liberality of the settlement ; while at the same time, as the laws are the only safeguard f.ir the company against unjust and frauduleiUr claims, he sii"uM be fully satishcd of the fair 'lealiiig of tliH (ilaimant, to induce him to waivii any legal rights. And ju.-t here, when the standing of the claimant and the honesty (jf the loss are beyond question, an inexperienced adjuster might be iluown otV his guard. Many good men, at such times, are dispu-'i'd to make the most of the tire, estimating in their own mmds various items of loss iKjt covered by the contract, and satisfying their consciences that they are not getting more than their actual loss. 15U.H. To a fair siiare of energy and industry should also be added discrimination, expiu'ieiice, sound judgment, and decision of character, to be able to say " Xo," and adhere to it. The shrewd claimant is apt to discover any vacillation, and to take advantage of it to his own benefit. Above all, he should be patient and persevering in a high degree ; not easily discour- aged by the obstacUis met with in the discharge of what may at times be an unpleasant tusk, for the correct adjustment of complicated losses is no child's play. Finally, he should not 570 IIIE AD.IL'STKIt. be (iviv aiixiniid to aiiticijuite either the time of payment — as the cii.stciiiiary ileliiy iiiiiy save the claim (Ittlll) — or (he time of til)' stftitiiig of the next train of cars. The Ix'st (iiljnsfers, in the honest diseharge of thnr dnties, eaniMit. iihvnys fail to f^ive offense. Vagii among husawsH iiu')i, he IS not iinfreqnently ealled exacting, when he simply insists upon the siiine vouchers for his compiiny, hefore paving a claim for los.s, th;it wonld naturally and without ipiestion ]»;iss l)e- tween merchants in an onlinaiy settlement of hu^iines.sailairs — there being this dilfurenoe, however, against tlie adjuster : ln' must dcjiiMid liiigi'ly upon the honesty of the claimant, the subject of the setthiui-nt /i7 DUTIES OF AX AGE:! T. IN CASKS OK LOSS. 15«!K hi c„N,^s of losx \,y fire, in il„. al.seiioe of a .special mlju.ster, tilt; Inml iigeiiL siiuiikl idciitii) Iiiiii«.;]f heunily with hi.s cnuipaiiy. uiid tier, ii|h.m ihc delen.sive, so tar as neeesHury, until he c;iii hrar tVoiii the paient otliee. He should fully enia- imdnMid thai h" is t/„: rrprm'nfxtii'c of hh eovipan^f and not <,/ tlw iii^uml: '• A in.iu ■ainiot mmvv twc unisters." He should iil-io unlorstitud tliat, uhih^ ii is nut exj.eetvd that h..i will se^k Lo take undue advaiit:i,i;e of auy party, il /.-, e.aili.lnith exp^-rted that he will watch closely to prevent any party taking iniproppr ain-<'ni/> nd, either bv act li^r iniplicati(m, until the pinuf submitted .shall have Iven made entirely .satisfactory in all of its details, or th.; claim may hii,ve been compromised, li the loss be a just one, it cannot be in- jured by .scrutiny. Undue lla^te, on the part of a clai:naiit, is Ksuggostive that Homething behind need.s inve.stigating ; while feveri.sh anxiety on the pait ,4 the local agent to ha.sten the clo.sing of the claim, " be(;ause other companies have paid," indi- cates both want of experience and lack of juilgnieiit. l»->70. The several j.oints to which tn agent's attention should be .lirected, in han.llinga loss claim, will be indicated by the term "steps," each stej. embracing some essential point, as luay be suggested by aitend.int circumstances of each case. These instructions have been made fm : NVlnii a cascnf Ki^s u\ ilaiii.iLti iiihl'r !t I'olicy (if \v\< cdiiniiuiy, wlicllur lai^(i itr sinall, i(iiiies Ui his kiin\vltd;^'o, till' lociil ii^t'iit is i(M|iiirr(l to iintil'y the iiaroiit nlHco IM.MKDIAIKI.V — (nj Ifilci/i-uni nhi'ii the (i.iiioinil if> htriji', i)i' hnme- 'llii.fi atUntiou iiKij Itf Hi'ili(;y, pro- li.il'k- loss, |iiirtial "i tdal. \s'\\\\ ilic aiiinuiil nf otlicr insiiraii':>', li HiiN ; to fte f'dUi'i'cil., witli as liltli' (ii-lay as po-isilile, liy letter, niviiig part it' I liars innre fully "« lo ich';lln'r kii<>n'lees th'' want of prop.T nofice h nn one(M.ive point in the d(;reiis(.. f l<»*.i!>. i 'i'ho agenl .sjiould make especial Jiote of the time of rec(!i\iiig sii^'h notice, anil whet lur ;/•<)«( th''. iyisiiri'il or his iiiii'uf. Claims for indi'mnitv iiMase-i .it .ille^iid loss or damagii by fi)'e and its conse(jiieiK'.i's, are olbiu lar^'ely m LTstated, niid not rinfiequently entirely fiaudiilent. In such eases it l're(iuently oi'ours that the tirst intimation ("fa claim comes from claim;\nt's lawyer. Such ciises nee(| esjiceial cijiisideiatiun, the claimant evidently 'loubting lii.s own case. l'">T2. In case^ inv(.dving largo amount.s, or likely to ]irovo mtncutc in the settlement, a spi-cial adjuster is usually sent from tli(! othcu ; hut smaller cases may he left to the lo(;al agent, wL.t will be much enlightened as to hi.- o^s n duties and the reserved rights of \ua comj)any, by an attentive study of ihe printed " iX'uditions of inaiirarice," as given in the policy, and I'V cor- respondence wi h hi' [lareiit otlice. when necessary. ADJUSTMENT OF KIliK LOSSKS. m l.lTii. Premier vatlo,,. of th.> Pruprrf,/ AniM H,,ti.;- „f the loss l„i^ been received from th. insared and pmu.pfh, tor- wardid tn tlK' coini.jiiiy, iind iiii'il uJ vised l>y the parent otlioe. til.' l(K>al i\' ^»"-^'^l W sud, failure 1 Mngen\s Kssays T7 ; 2 Valin Gomm. 133 ; (^ase ,. HarUor-i F I Uo U III r.-ii; Angell Iiiri. 177, § 132: Shaw s Ellis F. Ins. 55. , '' ' I.175. As representatives of the undm-uriters, agents ami adjusteis liave the right of access to, and a general su°.ervi.sury interest over the remnants of proj)erty covered Ijy tlieir ciunpanics until after inventory and appraisal, when all the company's mte.rest therein ceases. This authority should always be exercised when necessary for its security or prescrv,j,tion from further damage. A forcible entry would not be justiliable, nor "can the 580 ADJUSTMENT OF KIKK LOHSKS, access f»f tbf iiisiiii'd to the sulvago be jm'ventcd, (BimNdu Ins. 48, atitl uiithnvitits citrd ) ■ •>74i* SlidiiM tlic owiior object to such Hii]i(!rvi.si(iii, oi refuse or (lel)iy, to tlie il(?lriiii(>iit of tlie |ir(i]iei'ty, to liiive it |iiii- pei'ly attcinled to, lu' will ilo. soul lii.suwn peril. TIk^ ii>j;eiit will at otice iiotiiy till) jiiiri'iil olfice of llie fact — A// tfhijrmit in siiicinl casi'fi—n.A await advices. 8I1011UI delay, lioweser, involve no immiiliiitc injury lo ilic proju'Vly, action liy llie local a^^o-nt may be dell 1 (I until till- arrival ni nn adjuster, or deliuitt: advices be receivt3d from tli«< company. ( 1 7H5.) In duhiotis cases delay may be ailvisahle, but it is noni^ liie less iIk' duty of the claimant tu take proper care ot the pruperly. I.'STT. Mspecial attentinii sliunld I'c |iaid to >ii(li articles as tobacco, dnij^'s, books and .stationery, also sin If haidware, cnlleiy, stove and tin ware, and similar slocks which rusi ipiickly. ]Vct yoodx, millinery st(icl<>. and siuli like, should lie ojiened withoiii, needless delay, and ^picad «)Ut to dry, to prevent niildev^-, stain or mold ansiiiu' tVoni luMt or daminiess. An\ i>i'rltiliiiJi/'' i>fiii»ihi, winch would materially injure liv delay, should, by mutiial consent, be .submitteil to appraisers as .soon as possd)le, as cvi-ry day's delay adds lo the damage; or if delay would render it likely to be fafallf/ tit'sfroi/cd, it .should be sold at auction, oi' at private sale, hy a^rernu nt with the claimant, foi cash, /o,' n ml on acvou nt of fJuniiU mail '■'""•'''''. (I701.) J-urther instructions upon the duty of local ayents, in re^nrd to (iama-jed floods, will lie f7'H. liivi'sfi'/((f'ii>n of the oriij'ni. of thi fire: While attending to the projier ])reservation of the goods or other pro]ierty, the local agent should make diligent iiKpiiiy as to the oi;gin (/, and cir-.niu stances attendant upon the lire, the AfUUSTMENT OK FIIIF I.OS.SKS. m more eKpt'cittHi/ if (iriffinatiuij vpon the preininen of lln' 'niMKird, «f liri!^ npnii till' pri'iiii-ic- many oiivuniHlanecfs .shoiikl iiuvo coiisid.'iiiliou, aiiU'ii;.' oiiiri-., tlii' tollowiiig; /■'ii.il Ai \\liiii lidii!' Ill' (lie ilin or iiiv'lit ilir( ? \\'ii-< hi' iifilicil ? J)i I iic ri'covi'r liie innMnitu'o ? Any wn"pii.;i(iHH circuinstiiininH filtfii.liiig »iK.'h lire? l)i(l lio lo»^«' uiiytiiiiii; iilittve tlie iiisnri»ni'« ? I^" lie now in- volved, (ir u\iT-l(i;iiU'ii willi nil iiluliio sUiijk on a rulliii;^ iiiiivkit ' Is lie owner III lliL' prii|i('rty, uv \h it leu.-cil- in lili;."iliiin or miiiru'liiclive ? Ha-* in" niadc any ruieiii|i's to -ell? Is hf otrr iii.tiireil ' In line, do cirt'iiiii.MiaiK'es imlical*', in any «ay, tlial it would lie Hn oljecl Imp liiiii to s^cll lo (lie uiiilfiwrilcfK '.' Thini Alliiiit'iiil riicinntifiDici's . Pr '•ii«|iliiiiii'^ ? I(< iiicendlari-iiu a|i|iai'eiit ?, Ave tliere j^niunds i'>,r any MiiH|)i(Miiii u'_MiiiHt perpoiiiil eiiemie.-i Y Any canwe for siiiinl.nieimi e.iiiiiliiiMtinn ur exiiiLnion nlioiit llie iireiiiise" ? Hud llie iiri'iiii'^i's liecn re;;arded us a imi-ance (nun any eaiiT hy the nci^liliiirlidO'l ? Aiv tiieri' indieation- of .arile^jineias or de>i;.'n (ni tiie part of any <.ine .' Any tlirealf*'.' OiiiKiri niiiiy i ir tlnft liy t'iii|iliiye("', or to cover tij. defaluatidii." ? I>ili;^i'iiL riiid patient reHt/aivh ix not iinlVeinu'iitly icwaided by tin- discovci'y of the " Hnknoicn cauni," wliicli, if it docs not tomi to I'l'leuso tlie cimpaii}' from liability, dot's 'satisfy the adjii-Ktci' as to the fairness or lud'airni'ss of thi' claim, anil enabli',> the rompany pri.ij't'rly to uLissify the risk, and thua obtain reliable date as lu causes of fires. nsu OKKilX i)K KlUKS. I5NI. Miiiiy iiiidcrvvritiVH (.liiiin tluit liiiw IViitn natmud caKHc.s iiio siiiiill in iuiiiil>i'r iim cuiiiiiiircil with lUo^n: Imviii^ tht'ir f)iii^iii \u/i'riiiiii'p(!V vico (1711), iirul luoro rccontly tlif cli'ctrii' tMiiTcnt, wirK niunrpms otlnT I'U'iiKMits or caiHcs, wliicli thu inventive L,'en!ns nml mn!- tii'lyini^ resources of Tunilern Hcicnci- are constantly increasin-j;. Fi'idion tlevelops elect ricity: a machine U'lt, at hij,'U velo- city liediiin's hij^lily (dedi'iral ht/ ila friction wifh a'lr mili/. Jt is a coninion experiment to iiyht <,Ms-liiinirrs by holdiiii.' tin- kiniikloH of one hand neai a rapidly iii iviii;^ helt. and a lingerof the other hand to the open hiinier. In cotton nulls lint has heen kiniwn t(i be set un hre by thi- causo, the electric sparks beitii; drawn in ji coiisumt stream by ;Ik' head nf an iron b )!f /'lOt/ViT/- inrli 's from lln' belt. l5H;t. .Si'ONT\NK.n:s coMiu'STiDX is one of the most subtle iind -lecri't enemies thai tho underwriter has to deal with. It is the cause of a large; prf>}tortinn of accidental lires, and not a few of those Justly originatiii},' in iuceiidiarism. It is W(dl known that, under certain conditions, numerous articles of enm- merce are liable to generate heat enough to cause liam<', either sprmtaneously or by^ contact with iiiMammable materials, ;md cause conseiiuent destruction. The improper mingling r.f, or want of due care in the storing of certain kinds of goofis, 584 ORIGIN OF FIRFS, frecuH'iitly causes sjtonfaneous lOiiibuMion. Greasy rags, iron l)nriii|,fs ill wliieli (lil lias Ijecii dn)|)[)C(l, (lihd cluLhiii';, cotton waste, woolen waste, newly varni.slieil iiarness used in weav- ing, fine coal in ijuantities, iiovvdereil fliareual, will all ignite sjiontant'ously under certain circunistrinces. Many fires are doubtless caused liy a violation not only of police regnlations of cities rdalive tiicreto, l)nt of the plainest |iiin(i|iles governing the storing or use ot such articles a.i coal oil, naphtha, benzine, g.isoline, benzide, nitro-glycerine, and other similar combustible ainl explnsivf sulislanccs. The con- staiit handling ot and faaiilianty with these dangerous ma- terials, engcndeviug a feeling of false security and temerity, and consequent carelessness, from the results of which the community is the sufferer. A.n extended list of iiiHanimable, cinnbustilile and explo- sive materials — tlnnr name is legion — with the various com- binalions in which they have IhM'Ii known to ignite and explode spontaneously, would be an interesting and instructive study to the insurance agent, and, if pnijierly iliyested by him, wuuld save insurance companies large sums of money in the course of the year upon risks to be refused in conse(|uenee of ;lieii liability to loss from these cause;?. I'1».S|. Km'LOSioxs are another friiitt'ul soiir-e of fires. Various trades and occupations are more or U'ss liable to have '•xi'losU'iiti occur in the ordinary ))rosecution of their liusiness ; such as brass anuiv, when exposed to heat fi-m liie, oi' fioin the rays of the ,-iiii, will exliale m^av or less of a Iiglit carbonated-hyilrogen gas, which is excoedinuly exjilosiv(\ This is the cause of the Ui8ion i'\ lamps filled while h'-hted, ov when but half-full of oil, the vacancy being tilled with the gas generated by the heat of the llaine. ORIGIN OF FIliES, 585 Any agitation or sliaking of the vessel containing these oils, or motion of the oil itself, a-; in mntung, will generate this gas iu quantities. And it will exhale even when iincH.sturbeii , the dropping of a lamp near a leaky barrel of coaLal hiw been known to (>ause an explosion of this gas. And it is a noioiious fact that nnnierous accidents by explosion have arisen from drawing kerosene and its piodncts in the vicinity of ojien lights. Yet, despite these reiterated explosions from the lumdling of cnal oil or kerosene, under its mnltifarions names, and tlie munerons and constantly recurring deaths therefrom, insurance companies will continue to write, and allow their ag.-nts to write i-olicies permitting its use and sale without restriction or limit as to time or circumstance. !; i I5.S0. Recognizing the necessity for some check u]mii this growing evil, the National Board of Fire Underwuitkrs, some years since, promulgated a ride,\n the matter of earth oils and (heir products, in words following; It i, fortunate for the community at large, and incidentalh' for insurance companies, that some of the chief cities have rdypted measures to control the sale of kerosene, am piinlucts by confining them to standard iiualities. Its I.5.H7. liv OARKLEssNKss : either intentional or vrrkless ; ^^y ^'V m^^A^^ remissness ni gross 'iiegdgence, as in the nse of matches, (illing lami)s with iidlaramab'e oils by artiHciid light; putting hot ashes into wooden receptacles, or from lire-\\.»rks. It appears b nn the statistics of tires in every large city 'u our I'nion, that tfdrti/ ^ler cent, have been traced to the deposit of ashes m wotiden boxes or barrels, where heat sutlicient tu cause 586 ORIGIN or FIKKS. litv has booii retiiiiHMl for weeks. Tlu' grcut fire ;it PDitlaiid, in 186G, arose from ii single Chinese firecrii''kfi, carelessly thrown into ,1 boiit-hnilder's establishment on tlie fourtli of -nily ; ruiK^nnt lost, SIO, 000,000. Also, from the eareless use of lights in dni"_' and other stores, wIumi drawing alcohol, coal oil, and similar substances, after dark, or in collars away from daylight. (Chanden v. Ins. Co., 3 Cush. Mass. o2S.) JieckleK^nci^x and groufi )iiy/li(jr)ic<' are apt to preA'v DK.'-^ic.N : As from incouriurishi, with a view to rubbery of the ]i)'(>misi'S during the confusion consequent upon the tire, ((uiies c. Ins. C'o., I Seld. N". V. 16',). Cr. t(( cover u}) (nfalcat'ioiu and previoirs rohbcrj/, as in wareliouses, elevators, and cotton risks. Unfortunately, too many instances of this ela.ss of hisses are on recoi'd where ti'mjitatiou was strong and o] [lorlunities were fre(juent, until detection bi'Cpo.sed loss, in one iusLauce, ijcforc the raseality was discovered. Or. tluuuuh hot reil muX rrreiiije against owner or ucciipaiu of the pifmi.ses. Hi, through frauil, tor the purjuise of realizing upon a falliu'.,' market ; or induced thereto by heavy over insuraner, obtained through reckless comjietition of irresponsible com- jianii's, Spee.u Idt'ire losses have cost underwriters heavily, and will rontinue so to i\i' as long iis iusuraucf 'an be so easily obtained n]>'ii) such insnflicient rejireseutations. ORIGIK OF FIRKS. )87 M.S!I. Incekdiarism .and Arson: The jrmu (b(>ilities olf(!iv(l l)y M-ell-known projK-rties of certain ooiiibustibl.- iiiul inflaiiiinalik nmterials, easily to he obtaiueil without exciting siispici<.n, render ineeruliarwm ami >frson of easy u(!coin- ]4i^lmi(>nt when once resolve' upon, it has heen most tritely n-inailseii, that — "Of ail (lie crimes known to le law, i,ire„!>0. The decisions of the courts upon the subject ofarm^i, asdwinected with fire insurance, are somewhat contlictiiig as t(p the sLrenj^nh uf the evidence needful to bar recovery, when tho defense set up is that the insuied set tire to tlu' jiremises. Tho liui'deii of proof is upon tlie ci)m])anies so charging, Im all insurance suits, being only civil actions, the nilo of evidence is the same as in ordinary ca^es — the jury ' mv tiud the issue upon the w.'ight or pie[K.nderaiice of lae evidence. (iJillom LI. S. C. C. 105; 4 Biss. C, U. 2(30; 7 Wis. liV< ; 37 id 31 ; 62 Me. 356; 11 Bu.sh Ky. 587; It) Vroom X. .1. tl77 ; Stit/ r. KState .Indiana, 15 Iii.s Law Jour. 381";.) Frnmhileut niteiif must be shown, however, which may be r presumptive evidem^e, and need not, necessarily, be sucli as would convict on a criminal ]jrosecution tor arson. (Maciv V. Ins. C!o., U. S. C. C. Dist. Mo. Mar., 1880.) Rej?MJer/. Ins. (Jo., H. V. I.h., 1 IJerm. I.'. 1. Cases OTO; 29 Ga. 10:> , 24 Ai'k, 44 : 16 Mrts.^ \iK> ; 40 Ala. r,f,9 , 1(! Jobns. N V. 203 : o Ired. N. C. MO ; 5 .,/. ;i5u ; 5 CuOi. .Mass. 427 , 29 Mich. ,^0 , 1 t;arr. & M. 541 ; 32 Cal. KiO ; 37 ,d. IT.-i ; 46 (7 :i.-)4 ; .-50 U. -.m ; .Vt ,-,/. 627 j 8 Giat. Va. 624 ; 2 M.I. :!7i! ; 19 Fowa 2:iO ' 4T III m : U» .V. Y. 537 i 51 N. H. 170 ; 60 Me. :jo7 ; 3 Dutch N. J. 323 ; 12 Conn. 487 • Mo. :W4 1 7 L. C.R. 3W. ' 588 COROXEll'S INQUESTS Ur<>N FIKK T.OSSES. I>'>1II. In view of the fact that so many firos have tliinr origin in fraud and dislionesty, where tlie jiroperty i.^ proteeted by insnninee, the necessity for some general law for tin- investi- gation of all lires, tlie subject has been recently evtensively dis- cussed through the eolunius of the insurance journals of the eouiilry, aud the attention of State olficials called t(.' its imjiortance, wiiere no such law exists, with a \ie\\' to placing the matter licfore the several legislatures for jiroper actimi. In 28 States arson with intent to defraud insurance conipcMues is a specific olVence to which is attached a penalty. The States of Xew York. lV'nn.sylvania, Khoile Island, Nevada, and Canada, (Cons. Slat., c. HS) now have such laws, wliile several of the larger cities, New York, lioston and Montrcsal among them, have Fire niaishals, whose duty it is to carefully investigate every fire liiss, and take steps to bring the incendiary to an account for hi> n)isdeeds. !5f>!2. Such laws ]iroperly enforced, and the guilty punished, camiot l»ut have a deterrent ettect upon the would-be incen- diary to tlie beneli' of the coniuiunity generally and Hie insurance crtinpanies in [iarticular ; and wi^'e tire losses limited to honest causes only, the rates of premium could be materially rediKcd, as if is the los.ses that make the rates. No greater .safeguard against dishonest lo...3es could lie found, than a close .scrutiny by projxu' otlieials into tht; cause of every lire. FOUKTIT STKr. 1.1»!K{. K.WMiN.VTiox OF THE iJisK, nf the time of tlojim, with reference to the terms of the policy, and the rr.preneiiln- tioiit^ and ii\irraiitiex in the appLlcatioH and burcci/ trhlch sluiuld itlmiys he present for examination and refermcv. (105.1 The agent should caiefully read the written port'ioufi of tlie policy, ami the reprexentationa vuuJe in tha Hurvi'y and application, to di.scover if any changes laaterial to the ri-jk KXAMIXATFON 01' THK PiiOlTRTY. 589 luul !)('( n made since tlio policy was issued, eitiior liy clifinCTes in occupancy (111«) ; ownership , identity of proi)evty (i7«l) ; other insurance not consented to by indorsement ujxin the policy i,S»H7) ; over-insurance, accidental or intentiunal , in- cumbrances of any kind not recognized by the contract; assign- ments or transfers of the ]»olicy or the property not authorized (lOUO). .ittacl.nieiits, levy, or any other judicial proceeding aufiinsl the property ; ki'Cping or storing of prohibite!>5. Examination of the ntopEiiTv : Is it a regular husmess ostablishinent ? Wholesale or retail ■* t>r an ./'tc- tion stock ? (Jr a biavch stove ? Anything of the dollar-stnrn about it.'' If ,so, scrutinize values closely, as such stocks generally consist of cut goods, remnants, refuse or dama"ed articl's. Wh.it is the general condition of the .stock ' Old shop- keejiers, or new and fresh ? What was its value at the time of the loss ? Heavy stock on falling market ? 500 sai,va(;k. ])i(l claimant jnnchaso the stoi'k neio, or from .sonic rctiriiio firm inil'ortiiiiiitii in business? Wliut was the stock thus punliiisi il — mostly renuiaiits — slioji-wojn, 'jr new and fresh? For ca-)h, traile (havter), (ir on credit .' What noNi'S was jiaid for the (jinifl-iclll of the hiisincss? Guud-vill is not covered by the policy. Ts it the same class and kind of stock as that covered by the ]Milny when issued? .Vny change in the Ijusiuess since? (I7«I. ll.ivi' till.' goods, or iiny jiortLiu of them, appreciated or dei'Teciiited in luurket value since tlndr jturchase ? What is the dejiK TiatKJU fir old and shop-wurn or unfashionable stock? l.(t'J.-((iji\ livcdldijc, .•'rs. Is any account kept oi such losses? How much is annually taken out of the stock by members of the firm, for jiersonal or family use ? Is it always charged in account ' If iht-re be suspicious circumstances attending the tire, h.ul the i'm)iloyecs any hand in it to civt'r up stealings or defilra- tions ' What an- their lurounistaiici's — habits' F1M>. Salvaof. : What is itN condition? Has if b'cn properly manipulated to make the most out of it for the bem-lii of the underwriters ? Has it lieen ap[)raised fairly and satis- factorily' Any secreted goods, sa^ed liy other parties? (17T1».) In luocjkuig into a claim for loss or damage upon stocks of merchandi.-'e, it pay'« well to scrutinize the remiiatiU, and seek HOOKS OF ACCOUNT, i"91 among the ruins fur eviileiico coiTobomtiiig or iinpoarhiiig ilio rainu;s.s of tlm claim. Many kinds of goods, i!S])ei;ially tliose conibiiiing wood ami iron in tlu'ir manufacturo, li'avti indultit- aMe evidinicc of tladr i>ro8enc'e bffuro the tire ; tubs and Imckets, a.s Nvoil ;i.s li(|nor c; ks and kogs, have iron hoop8 wliicli will n^it burn; and tlie iron o1' iiniihinaMifs wilh wooden h.indl.'S, as well as ([iieons-waiC and glass-ware, ^tiil remain iineonsnmed. Do they tally with the ]iroof ;* Was the damage cansed directly by tli ; hre, or by the rennv val of the property :' Was anything stolen dnring reiuo\id of the projierty ? ( I55$tt.; Have reliable ajipraisers lieen selected ? (I7^*J$.") If the diuuage be u|ion machinkuy, has it been properly cleaiuil up and jml into as gO(; prolitalily leinstati^d ? is it belter to pay than rcsbiiild ;• 'IHJJ/l.! Is it ou Itsased "round and so stated in the polic}' '' (<».S!». i SIXTH STEP. EXAMLNATIMN OF liOOKS OF ACCOUNTS. lf>!I.S. It IS too fiequeiill} the case thai tl\e books of the claimant are talccn as vouchers without sullicieiil scrutiny. On iheiu II ud iheii eoi rectness depends the basis of the adjust- luent. No more ei'edit shoidd be given tli, m tlian a critical examination N\ill entitle thcni to- The following hints and. suggestions will be ol service in this connection ■. (I!>51.) IvNauiiue .s/(/c/> accounts : whvw di*l the capital couic from ? What is tlu.' result, prohtablo or otherwise, heretofore { 692 INVKNTORIES. — VOUCIlKHa. Hfiiihinniine ficcounf : dnon it sliow vcIihIcs or (lisiNnint.s to t ii^tciiirrs, or p.Kuls ictnriifil to piircliasiTs, or (leticii'iicifs in imicliuse.s ? 1 )()rs it sIk.w iiurcluiscs uml wales fully? Any stock ill branch Ktons or pidtllvvx' vkj/oiih? It" so, i.s it duly cliiir.iri'ii ? .sYoc/r ahaent in j)eil(ller<-i' uvyofin //«« beetb 2>(iid fvr (IS lot^s Iff fore, tioiv. Pcfstnidl (iccoiiiifs ol uifiiiliris of till! lina : tlo they show goods or uioM('\ tiikcMi out ? Jin-uires of piinhdsts : are they fortlicoriiin^', luid do (liey coiTusiJOiid wiLii tlie iiK'rcliuiidi.se iiccouiit (* (111 l!2.) Jnvciitorien of stock : liow often taken '{ Hiive (liey lieeii made u|ioii the ba.si.i of finsenf i:/7'(vs will iieer(\«.'iit evidence of having b(>fn hoiieistly kept by an e\]/erieneed aceountant !* Are resu'ls cleaily statiHl ■: Aie iliey tiuly certified to and jiroM'n correct by the ]iarties who kept ihi'in ? Do they sustain the claim as made? (M, un tlu' other hand, have ihr book'^ ixen l.inipi red with, or made up foi' the oi casion r — a cii'cum.stanee not at all niii'iiiiinion, illMti.j lias the business been pi'ohtable > Any heavy losses to crip- ple the means of the chdniant ? Does the InU book sliow need of cash to meet accruing notes <* Are there abinuUint mean- tij meet ihciu ' ( )r, was the ]iaynjent dependeni. upon ruiavnL sales .' If -o, svhat was iln' jirospi'ct? Any pressing (loitfrl itr otlo'c iKorhjiiijc ci'<:io bonks of acnnuJ ore ki'i'f ; or, if kc]il, it is in so careless a manner as to aiford Init sinaU sei\ ice in the ]>ro].er adjuslmi'iit of the loss. In such cases the jiarties usu.dly rely upon memory to make up the deliciency • and (V is a leiuarhibU co'inr'uJcitct that h> all mmli cases ihc cla'i iiianlti have tmch excctlod mornories, that then ''''"' f'*-"tnnnbcr ADJUSTMRNT vOF FIUK LOSSES. 593 ahnoHtthe exact aviovnt of ntock of each kind of .j l«00. Wluu 1h(.> hunks and papers of the clalwanf hare hen, destroyed by the lire, n„ fixed rule can l;.- yivm. us to the nianiKT of procedure. Th.. l.iinl,.,) of proof iCstin.r '^,,,,,1 the assured, ht- must find vouchers <,f .son.e satisfi.cto.y kind to sustain ih.- ,!ai,r.: and these vouchers sh.udd ho most thoi'oiiylily sified (I!l4ti.) HMH. M;u,y ,i,n,.s th.. elai,,, thai hooks of acroant h%r^. hecn hururd r, fynnduleot. I,, numerous instances new b<.jks have been fahnroied „r „/,/ ones uvule a,, for the occasion, sliowu.j^ a heavy balance against thoinsurors. All of these should be most critu-ally examined, and tin; claimant should 1h, uvide to pro.luce mdsffctory, 'Yidvmo before the claim is admittod The course n^nally pnrsue.l in such acviting.Micv. and where no buoks have been kept, is ^, call for ■ia,>!irate hills nf par- c/^,..' for some time back, as siipnlatod for in the policy and such other documentary evi.lence as can be procured that' will tin nw Ijnht up(»H the subject. (tHit7.) I0(>2. Unfortunately, however, the insurer cannot compel the elanuant to furnish such duplicate bill., of purchase, oroiher documentary evidence not under his eordrol; but he must furnish some satisfactory proof of Iiis loss. The suggestions here are : Were the books of account and other couchers huraed : If the duplicate invoices of purchases and other proper vouchees are not forthcoming, xvhy not i IT or,, duced, ,or they ej.mdncl Forged invoices upon the printed headiu-s of regular houses have been heretofore produce 1 as vouchers in proof of loss. ( 1 94 3.) 1«0». What is the average rate of profit as indicated bv the books ^ What ,s the average rate of /r..y./ paid uj.e.n purchases \ (J74H.) .^ i i 594 AI'JUSTMFNT OP I'lIcK LOSSKR. llfi iiiamifiic'tni'iii!,' t'st.;bli.'y tlic terms '4 the [Hilicy, in v.Iiidi • ,im' Ik- must an^\V('^ all questions toucliiir^ the loss, (llliiT.j 1<{05. Ill cusu (if" mi:mohi/.kii statkmknts," it is well t on, occasionally interspcrsin}^ tin item nr artiejf not in the bill. This will bii a seven* test, but a jn,>t one. ( l.>1M>.) A iidlabli! uise nf tlw uncertaint}' of meiiior'i nd .ituhnunlt^, even wlien hunestly made, rti'rurri.d in ihe adjust mi lit of a, Chi- cago Jiiss. The olaimaiils swore lo :i. loss, fi'Mia ii',(riwri/, of sonu' oiif Inuiiiri'il ini(t foi'fi/ llirtw tkontidnd ildlhirs, whicli loss uas ftuiiid as asiTitanied from the ledger subs'Mpuiitly, to be less than uiiu':/ tln/vsnad dollars. Aiiuiliin' similar case oconrivd, whcrn the meiiili(?rs uftluifirm and lliiir two iiiincijial clerks made estimates ranging from fi)rfi/ to fifty ihou.siuid dollars, frii iaeiu. The fnll..wing results, gathered from the liooks of account; form tlir basis of .Sclltn.iL'LK 15 of the irri'Jhnlnarij proot's (!i;5.>0» u[)"n mercantile losses ; — Wh.ii was til'' amoiniL of the last regular account of si 00 K - ,-. value grns Ifow much of it was not under tliejirotection of the policy (— fumiture, lixtuies, commi.ssion goods, etc., etc. Al'U>T.Mi:Nr OF KlUK LOSSlis. 6n ■('•milt iliily link ' .' iii'ccsaary rnvidocl for (111 .wcr all I is wi'll to s pt'ltiiieiit fill llilVt' ? " tii'lf iioi in \ (if a, Clii. liCfiiuri/, of NA'llK'll loss iitly, Lo be of tlu! linn from fnrti/ 'id dullars ■^, Imiicsily ■ivc, Hut lie matter ■vifo luiLrlit -ncli of thi". ai-;iiiHs,s to f sioiJv ho nn, if iii)t books of lirm iitirij )f stock — policy t — Iluw 111,1, 'h Murk lirl 1 1, |mivlin.s.,(l sinrL- Mu! account of stock wjw taken, up tw Llic, lim, of tiic (iiv > flnw iiiii,.|, (,f tl„.s,. puivliasos liail hreii lotuiii..,! fr„m any rails,.. ,.r is IK.I iKilr,! ;mu,„._ ll,,- stndsC.V.Tcd I.V tl.,- poHcv > What is the ainoiini ol sal.-s, fi.rca.sh uv civ.lit, fr,„ii tlic',lati' of tliH last account nf stork np tn ilic tim,. of tho (iiu >. Is any. thiULjiiicludu'd 111 thosf sales ii,,t ruvcnul by tlic policy i Any ichatcH or discounts allow, .d f,,r .ash paynn-nts not noted '^ '-' '■* ■''■'"'"' bave been ] ,ii,| f,r as l„st helmv now. What is th,. anioniii r,f k,„„1s savetl in s.aiiid con.btion— piisi.nt nifili vahu' > What is the sotunl cash valm' of the damaged stock, a.s ictiirned by tlie ajiprais,'rs ' What .Ivprrrmfiuii np,,,, th,, property not already included in till' csliinat'',[ value in tic invciiL,.ry > s];\'i:ntii ,-Ti:r. I«07. FiNAi, \i,.iistmi:nt. The makin^Mipandfumi^hin,^ IH'ool'.s of l,.ss aihl a(,',mipaiiyin'i voiichers is the duty of th". insured, and not ,,f rhc conipaiiv, and should be at once pro- ceedi'd with ill ace,, rdaiiee with the ivcpiirements of the policy Willi, ait waiting tbr tic arrival ,,| an adpist,.r. 8iich pi.Kifs wh, n made by an adjiist'^r. are still the a,-r of ihc insur.,!, an, I h,' alone is respuiMhle f )i' tln'ir correctness m cvrrv particular When there are n,, suspicions circumstances attemiant upon Uicloss, and where n,, rlforl to overreach the company I. v un. warranted exactions is .(ppareiit, iheaovnt „niy ivaiderall r,-,pii- site assistance in the settlement ,.f the claim ; hut when tinue may i,e reason to snsp.-ct dish,,n,Asty, or where the circum- stances attending ih,. lo.s an' n,,t perle,,'tly clear and satisfac- t,ay, ike blank pronf f],rms nv^l>,la(io. ■^If)ubl he glren to th,- <'l'(imu„f to th, iwejiK/lr,' of thr cu,,,- pany's legal vUihtM „,.i:i /nrthrr V llltr. l.DSSKH. ml ilataarc ready iil liainl, tlic'iv uill always Ik.- a ^cimtuI and 1 uDcmifiit liaiiiH'tiy jK'i'vadiiiy tilt' whulc, wliicli is imi jH'HM'iit III ri'iiiiihilciil iiii|M>i'^, wlii'ic ihc d.ila have Ii'tii luaiiur.ict niid lor the occuHiuii. Ill ilic latter oa>«!, "ns villainy is scldniii rid (ifrill ciinnarlss," llic iiiiiit Nkilll'iilly luiiicoctcd iininls will iircseiit td the f\|ii'- iitiici'd adjiisti r suiiic jarriiij,' discrepancy; cir snnic link will lie iiiisHing, cnsriti;^' donbt and sus]iieiun ovor the whole. This ditlieiilty in .netting' up ialMC jiapers, so as tn deceive lln' I'l'.nticed rye (if the iiiidei'u i iter, has of'leii ]ir have heen ]ire|iai'ed and siiliinilled by the. clainiaiil, ihey shuuld he caret'nlly (!\iiniinent. Paiiies have l.)eO,n ku(jsvn to advance the plea, when detected in thus (ivercharging, " 'J'liat, as the company would insist iijion soni(> abatement unijlunv, the inleiilioii was to make the aiiinuiil large enungli to admit ol the rnnfoni'irij (!) lediiclion, and Ntilj obtain lull indemnity." This was done m one iiistiuice by the advice of " friend.-." it sho\ild be constantly borne in mind that uiiihi'wrlti'VHnir cash. rii>itomcrs, and as .such 'iic i ititled in the be.st price, and the cxfttomary disconnf fi> ra-ilt huijers, in nil aiM's, l<>(MK In miking up the proofs, the dift'ere-uce betweon the values of goods juirchased for cash and lho.su bought on time should be con.sidered, m \ ell lus the further fact th.it all nur- ijhants are not cipially elo.se buyers ; some paying higher prices ibi the .same kinds of stock, on the sarno term.s of payment, and not unfretpiently at the .sanie places. The amount to be paid by ATUUSTMENT OV FlIiK LOSSKS. 597 tin' oimpiiiiy is till' iit'ltiiil viilue nt whicli hiic.1i comjuxnv roulil iviiliuio the godds tor luish at thu timu ol" Llm lire. (HHKi.) Any ShoiiM any of the property not belong to the insnvcd, anil yet l>i' fuvfieil hy the policy under the tiifiuil commii'sioit. tditnxii (ItiOM), ur otherwise, it ninst ho spec^lically set forth in the prouf^<, with luiiiie.^ of 6ouit ,/''< Having ascertained or agreeil u[iou the amount of loss sustained by the claimant Hjiun eocltiteni uwhrthepri^f-i'- t'lon of all or a/;// of flw jiolicii-s. and thi' aggregate insurance thereon, if there be more thiin one jiolicy interi'sted, the m-xt step will be to give the proper consiruclion to tlie several jioli- eies, to ascertain the pro rcfa cotifrihnfitr liuh'ditt) (insurance) of each, and just how far the insurances may bo concurieut upon the geueral loss. (Kitll.) IGI'7. When the aggregate liability upon all of the co-cou- tributing policies is nul more than sullicitait to pay the loss, there can be no question of cuntril>utio!i ; each company pays its own liability according to the contract. KSI.S. liut, when the loss is less than the caggregate coii- tributive insurance, there arise question-- of a[iportionment among the co-insurers more or less comidex, as the several {lobiii's may be more or less concurrent or invidved, and the ability ami ]irolicii'ni'y of the adjuster will lie taxed accordingly. I<»I!K Kach policy, specific or compouiKl, is llahh' to it--\fii!l xiaoviit 0)1 ((Vfj one, or p,o rafd on (ill of the items iiihhr its jn'otection, arul must contvihute x-lth ineh co-ix^'HenKj /lolirj in its conm.ri'cnt insurarii-e vpon ncoA (7"//t«. (lOHitJ.) !f any policy cannot pay the lo^s, or its pro rata share of '";. on '/// of its ib-ms. it must poy its rotahle sho,ve eq}ialiij on vivji OS for as it 1(1,1, with each respective co-insun>r. No jiolicy is .. TL-f-^.^'...Ji«^..l.'.M»^ ADJUSTMENT OK I'IRB LOSSES. • 599 entitled to CdiiLnbiition from any on') co-iiHiirer iil t". . oxpcMise of the others. All iiunt share equally, in proportidii with their several eoncurreut liabilities— not iiisui'anees in all cases. (l«tJI..) UVi{>. The most ready method of arrivin^' at the propjr apportionment of loss among eo-insurers is to firsl find the uiaximum insurance liability upon each separate item— as if th) loss was uiHin that item only— by olassifyijig the several sub- jeets in columns under their respective headings. The ,'oatrU butive llithilU)/ of each co-insuror will be its ratable proportion of such iiisuvaneo. 1«2I. Tlie following illustration will make the ruh; per- fectly plain : — E.KAMPLE, Cotiipany A covers lioolvs, stationery, fancy goo.ls, ami utlnTaiticlcs hsuhIIv ki'pr In such stuck- fi]i^ qqq Company B covers buoks, stationery, paper ami pictiues ,.. ."i.OOO atiil Fixtures kqq ( 'onipany C coven* liookB and Htationery 5 oqO Company I) CLvens school books ,j qqq Lo?s:— Scluioll.uoks, $S,OuO Other hooks, ^2,000 Stationery, lijm Faney j^oods, 2,1)00 I'lf'ti'-es, 500 Fixttires, ,000 1032. To (dassify these items forapportiojiment, .;omnieac9 by ruling as many .oIumiH as there may he siiltjects of insur- ance in all I if he .i.lic.ies. Tlien, commencing with the policy of the ' ^^^,^■st ,ati!,'e,"— Company A in this example— enter oppo-iu' '■ iame its full am xiut— SI O.OoU, in .'ach cdiiiun of item* '0V-. ei! as if it w(n-e so many specific ii^surances npou each subjeu ; t.nd so on with B, (J, and D, ^ .in mind that in this cas", in the constnu^tion of the [wlicy, the term hookn includes s<.hool-hooh, luit ttohool-hooks do noi include /'.;(;/,'.y ; and that ''other artidcs " of policy A will co\'er paper and piv turm ol' policy V.. This will give the ^'nllowmg classili'-ation of the maximnni liability (i. c, in;nivMice; of each policv upon ea>.ii item under its pr;,:';ction. to bo suo.-'H[iieijtly modified and 600 ADJUSTMENT OF FIRE LOSSES. controUt'd by their relative coneurrenn/ and n-spcdu'e indi- vidaal UahilUies, ar* will be fully explained muler the head Aviiort'wninent of Compound Policies. Classes I. and II. TAliLF OF MAXIMUM INSURANCE. I'iotures, 'V""7 Fixluies. (j noils. 600 Co's. School Hooks Other St'itioii- Books ory- A 10,(100 10,000 10,000 I! 5.000 5,000 5,000 r 5,000 5,000 5,000 I.I.... ... 5,0(10 10.000 10,U0O 5,000 Totals.. 25,000 'ill.OOO 20,iiOJ Lvjsset^.... 8,000 2,000 3,500 15,00(1 10,(100 500 500 2,000 750 l4i!l2:S. From this tulnilatinu is found the iiggregated in- surance u[)on earh single item to lie as follows; — Oil School-hookM iusur.iiioc $25,000, to pay Idss, $s,0(l0 " Other i)Ooki= " 20,000, " " 2,000 " Stiitionery " 20,000, " " 3,5o0 "Fancygail.s " 10,000, " " 2,000 • Piiperiuiilp'ctures... " 15.000. " " 500 ••■ Kixturf,-* " 500, •' " 750 J<»24. liut it is further apparent that the ri^dative concur- rency of the several jxilieies is pavtial only — that is, some of tliem li.tM' fpa'i/ie Iiiihiliti(>s, wliich must be firstt disiliargiul, l)ofore th< y can be held liable to contribute in any Imlance witli co-insurers upou concurrent .subjects, as is set forth in Statt- menf \Xi. (Compound pulii.'ies. Class 11.), where tliis exauple is fiiUy worked out. (UO.S*!. :2:i:SO.) lOtifS. Tn test the correctness of this mode as a basis of ap- portionment, it will only be necessary to suppose that the loss had occurred to any one of the items, thus ; li.id loss hiip|iencd to fa ury (jotiil^ alowi, no underwriter wixild tleiiy the liaiiilitv of ])tili(;y A alone, and to its fullest e.\tent, bad the loss so requited. Indeed, cumpanies B, C, and 1) woidd be ainouij; the most stivminiis supporters of this apportionment. The S-,OOU loss woiilii tirst be deducted from the pohi,'y, leaving ADJUSTMENT OF FIRE LOSSES. GOl d iu- I the remainder to be apportioned ratably with other losses. So with Kchool-bool-s, had the claim been for loss (jn this item alone, the liability of each co-insuring policy wouhl be as here stated. I'.ut the loss being ni)on all of the subjects, and some of them Ijeing specific (tJOttl), the concurrency is not general or uniform until after the specific items have been paid for, when any remaining balances after such payment become subject to concurrent contribution, (20«:S.) Jn com- pound ])olicies of Class l—whriv' tlie concurrency of the insurance is general— t\\G iivutiinu'iu lialjiliiy of tlie several policies upon eacli item is found in the same manner; but the specific liabilities are determined by a diiferent process, as ex[>laine(l in section 20>Ha. I<»2<». The cori'ect apportionment of contributive liability under non-concurrent policies is a liianch of adjustinu but little understood by inexperienced ailjusters, each of whom usually has some favorite method of his own, which he applies to all cases where the interest of his company will l>e served thereby; the result is much trouble and many law-suits tl.iii might otherwise be avoided, iiharp adjusters usually hurry to a loss, make a hasty adjustment, and pay the claim as thr;/ (nljnst it, before other adjusters arrive, not unfrenuently claiming contribution from otlnn-s wrijiigfully, thus diminish- ing their own responsibility at the expense of co-insurers or the cliiimaiit, and thus causing ditlieulty with the insured in making the needful corrections. (liOtilH.) XlNTjr STEP. Ifiar. Hki'orting to tiik Company; When the adjusted loss is reatly for paynuMit, the com])any should be fully posted as to the facts and .inn.unt to be paid, before a draft is lorwiirded Payment should bi; made in strict confonnity with instructions, if any. Proofs should be forwarded with the cau.eled pulicv, if a total loss, or where it may be advis- able U) take up the policy. And the receipt of the claimant for the gross sum of the claim should be written uii,>n the policy, and in duplicate. m l •ic».>».'i :,*i%:, 60L> NOTICE OF LOSS. 102H. CoxTF.STlxr, TiiK CLAIM: ShouLl it be (leeined udvisil'lc to contest the claim for any cauac, the inljustei' should nialvc a full statement of the facts and reasons tor contesting, with mciiiorau'la as to such especial ]X)ints in favor of the company as can be I'clietl upon for defense, with names of parties from whom iiiformaiion can be had as witnessi's, with such other matters as may seem pertinent, without exagg, 'ration or undue coloring, for tlie guidance of the company's counsel in tlie conduct of the case. No false legal position should be assumed, and no grdund hastily taken npoii which a good defense, supported by the best of evidence, cannot be maintained. CoMPitOMis It is fn.i[Uently apparent to tlie adjuster that while a cliiini •at;it and ought not to b.> piid, yet the evidence olitaiiiai); > lid not be sutficicut to olfer to a jury with any hope of a favorable verdict. In such cases the onlyreci'urse left In till! company is in "masterly inactivity" until the last, during which tini'! "s nnetlung may turn u[i" to the interest of the undei writer. Suspicious circumstances may, in the mean- time, deV(dop into facts ; but if they do not after a reasonable time, and no lulditional light is sheil upon the matter, acoinpro- raice would be allowable — but only when all chances of contest ing the soil with favorable results hnve been lost. It is in such c.ises that information gathered by the n^'ent durini;' the investigation of the loss can be made avail. djle- if they liavi' been duly preserved. NOTICK OF LOSS HV TIIK IN.St'ltLO. l(JiJt), C'liiiJitiiin of thr pulirij. — '■ PtT'^oiiH su«t.aiiiiiii; loss or dairage by i\:v t^\iii\{ f'jitliwit/i give notice of saiil Iosh to the coin()iiiiy, hikI, hs soon iliere- nfter HH jMiscilile, remler ii pui'tioular account of such loss, .-(if^netl iiri'l .-wora to ly (hem." 'I'll" ciiuditions of all fire policies require tliat imfU'c of los3 or (li(m!iO. The burden of proof, as to ilie sufficiency of notice given of a less, i.s u])on the iii.sured. Ili'i.i) ; — '■' Pro()f ni!iti(iM procoilent, witliont wlii^'li no recovi'ry could lie liini. Oiiii.ssinn tu f^ive notice was not a inattor to ho ouiripciisaled in liania.'C's, Lut a liar iibstilulchj to all claim.-. N'otioe to •A iliroctor was imt ikjIIcc to the company or to an authorized :ig(-iit."' I0!{1« In tlie absence of any specific stipulation in the policy as to how notice shall be given, notice to the agent who effected the insurance, if he still remain tlie agent nf the com- pany, will 1)(! suffii'ient. Iltitif the condition veijuire that nilice shall be given in writing to the company, the secretary, or one of its directors, notice by parol to an agent would not lie suffi- cient. Stinipson ('. Ins. Co., 47 Mo. 373; Lycoming Ins. Co. v. Upde^r itV, 40 Po' n St. ■Ml; Ins, Co. v. Holfoiistein, 40 Penn. St. 289; Hale r. Ins. Co., li Gray Muss. li>9i 4 id. 337: 2 id. 397 ; Forbes t;. Ins. Co , 9 Cuah Mass. 470 ; ficrron /-. Ins. Co., S. C. III., 4 Benn. F, I. C. 601; 28 111. 235 ; lli(rp;s r. lus. Co., 20 N. H. 198. I<»:S!2. The true doctrine seems to l)e, that where tlie stipida- tious of the i)olicy .are specific tmd definite \n their rciiuirenients as to lime and miinner, sidhstantial compliance 'vith its calls is a condition precedent ttt a recovery, and compliance must be proved, or an ac/uaZ waiver of such c^jtnpliance must be affirma- tively proved to the satisfaction of the jury; but much le.'^s .stringency of proof will be re(|nired to establish a waiver of defect in form or statement in a notice seasonably given ; or to enable a jury properly to find a notice to have been in time whi'ic ihe call is "forthwith " instead of being limited to a lixed munber of days. 604 NOTICE OF LOSS. lOJiJi. " A dofect in time of giving notice, being peculiarly Avitliiu till.' knowledge of the insured, stands, as to waiver, quite dift'eixMitly from a defect in form or in ?Y« matter, of which the insured may be presumed to be ignorant; so, while the silence of the insurers as to the latter defects should be deemed a vaiver, a diiferent rule should be applied to the former." Pa(iii.k r. Ins. Co., 43 N. II. 'i2I ; Trudk v. Ina. Co., 29 Pa. Hi. 198. Kiifil. Thi.s miticc is usually requinul to be in writing; but, if till' knowledge of such a loss be fully communicated to the \n-^\uvv l)tj theclaim ; Inman v. Ins. Co., 12 Wend, N, V. 161; 1 C'-eenl. Ev., 3 40; TaUor Kv. j U7. Where the insured had gone to Europe, and notice of premium fiiUing due was forwarded to her tliere, but failed to come to hand in time to act. Held : "The f.iilure to receive the iiolice ■was the misfortune of the insured, and she could not recover." Greely t; Iowa State lus. Co., 8 ins. Liiw Jour, 817.) NOTICE OF l,OSS. 005 l. till.' oijiiilitions of a policy required iiotico fovtka-'dh, it was lield that ruttice sfiit decen dniji* aftc v rlie tin! was too late, no siitiicient voason being .shown I'o*- the dclav. l<»IO. In ant)ther case it wns held that a written notice of losr., served upon the company fUjld days after tlie onaii- rcnce of tl\e tiri>, tht! otiicei's of the company havinu; had l\w \. C. 13:^ ; \\\ Wend. \. Y. 4'.2 ; ID i.l. .i<> ; May r. Bnckiye his. Co., 2.j Wis. 2'Jl ; Troy F 1. Co. v. Caipenter, i Wis. I2i). Kill* A verhal notice of lo.ss is held to be sullicient, w]ien no other form is sti[>ulated fur or demanded. ^Killi[)s o. J a.-,. Co., 28 Wis. 472.) I6ri« Tiie State of Indiana lias the following law on this sui)ject ; " No in.>iuraiict' compnny slmll insert any ooiulitioii. in anv policv horo- atter i.^sui'il, rt'(|niriiij^ tlie iii-urcd to ^ive notico liirtlovitli, or uitlnn llie [xtIo.] of time less tlwin live 'liiy.« of llie loss of liie iiisureii |)io|).i-ty.'' i<»i:S* Of'il notice to the agent ^".'o days after the Liss, and written notice to the .secretary more tii;in a nionili afterwards, was not a sulistantial compliance with the condition re.piirinL; written notice to the mcretarij within twenty dayn after a loss occurs. Neglect (jf insurers to object to such notice at tho tiuie was not a waiver. (Cornell v. Ins. Co., 18 Wis. 387.) Kill. Held, in North Carolina; "^oiica twenty days after thti loss, th(jugh ac'jompanied by the preliminary proofs, was not in due .season. (Wliitelmrst v. Ins. Co-, 7 Jones Law N. C. 433.) A delay of thirty-eight days in giving notice without setting forth any excuse. Held : Not to be a literal or substantial compliance with the stipulation of the policy reqtiiring notice forthwith, (lumau o. Ins. Co., 12 Wend. N. Y. 452.) Clmmbi iln'u o- Ins. Co., 55 N H. 249, 4 Ins. Law Jour. 64:). WhS. 60 ( NOTICK OF LOSS. 94SI'>< Wlicrc tlunv hail h&'.n a diUy of tliirti/ U) fort'/ liiivs III ;.;iviiij4 iioticu of loss, uiuIit two distinct polirio.s, and n cniTt'-^iiiindt'iice cnsuod us to tin- iircliniiuary proofs, and lla- coiiipaiiy refused to jiay loss under one ol' the ]inlic;ios : — lli;i,|i : " I'liihr tlf rirrumsfaHrc.^ of tlii' fiise, (lie oompmiv wii* pivcliiili^'l fi'ijiii si'tiiii^ up tilt' (Icliiy ill j-'iviiii; iiotict' ll^l i'ei]uii'i'ii, us a iiof(.'ii!'\ Ciisli. Miiss 342 : Lyootning Ins. Co. v. .SchrefBer, 4l' rciiji. ■'Sl. \xS . Diiike i;. Iuh. Co , ;i (JniiU's (,'iisi'S 315. 1'he n-eciving of notice by the insurer, to which no objec- lioii is made at the time, is no vaivcr of any (/r/u// that may have oecuried in ;4ivnij; such notice. But the insurer must notify the insured of any defect in /'or/;* or ■■^tiifeiiwntm a sea- soii.iol ■ notice, or such defect will he deeiurd to have been waivi'd. Cliirk - . v. v.. ?. 1. Co., -; Cii^li. .Mtias. 342 ; BuiKnt /•. Ins. Co., 4i) .Mi'. 500. Ki IT> Where a jiolicy re([uired •' unmcdiate vot ice," ami notice was receivrd witlnjut olijection as to time, and instruc- tions well' Lriven to the insured as to the form of the state- ment of his h.iss; and an ii^eut of the comjuuiy sulMei|iieiit!v n ade e.\ iiiiiiiatiiins respecting the ](jss . — Hki.D: Id ln' no Wttirrr of due ami tiiin-ly notice. (1043.) St. Louis Ins. Co. ". Kyle, 11 Mo. 27s, 2 li<-n». F. I. (.'uses (>41 , Knicker- bocker Ins Co. I' (iijiild. iS. C. III., .0 Ins. Law Jour. 780. |4> |N> An alisolute refu.sal to settle the cliiiiu in ,iii\ way, wlierc a defective notice, had bt;eii given, h,).', been held a sullieii-nt waiver of want of other notice. ]5ut it is riot a waiver of want of seu'ioitahte notice. Trnsk r. lu-i. Co.. 2;i I'eiin. St. liiH; Lnmpkin w. Untari. .M. F. I. Co., 12 U. C. Q. a. 5TS| VAdtk r. N. Eug. .Mut. Ins. Co., Ciiah. Mii3S. 3i2. IXDEMMTV. Got FOIITIlWITll — IMMKliIATELY. KSI9. " /•'o/7/My?///,," as applied to llic. notice iv([ui:(Ml, has bfo*". strictly CdiisinuMl, in some deeisiims, to nniui, '■ iimiK.. diatcly," "directly." '• witliout delay ;" and mnrc Icincntly in others, as nitjanin^' with "due dili.ireiice," "within a reaM)u- able time, under th ; eirciunstances of th ■ ea>,e ; " the wiiole, however, Itein.L,' miestions for the jnry a-i to ilw. /uofs ; l»i,t wlien the J'aiiK are not in dispute, tiie court will determine, as i! (luestion of lu)", what u " reasonable diligence, " in j^nviuc liotiee. (lOI 1.) Peoria \'\ k M. Ins. Co. v. iKMvii), !>* 111. 5")3 i St. Louis Ins Co v. Kvlc, ii M(i. 278,2 Bfim. F. I. Cii.^es (JU ; rhilli)is v. I113. Co., 14 Mu. 'IM ; Tiask v. Ins. Co., 'iti Pi'n\i. Hill. lii.S; 3H id. a;t7, Tlie rneaniii-,' ul' " forihv.-itli"' iiinst be construed !iy the lii.,dit of all the (■ivcuiustanees which surround each casv ,- as the frequency of the mails ; nature of the stock to lie ai eount- ed lor; em]ilMyuieiil nf the insured iii atLem|>liiig to eheek the fire, and in savin-j: tiu' property. Cli<.ml)iTlain r. Ins. Co., .''jG N. H. IVd, 4 Ins. Law Swn. CAU . \V,-H?nii p. Delrtl.rUI. 'J Caines. N. Y. 234; s. c. 1 J0S113. laO ; McLunnIiati v. Ins. Co., 1 Bar!). 170. Gwn c. hi.s. Co., 10 I'ick. Mus.s. -102; H.ine.^ v. .AIc.\Mnilir ' 1 Brevanl, S. (_". 21.'-!. Dy te!( giaph : — Snow i]i nt. r. his. Co., N. V. (J. A. 4 lii.s. Law Jonr. l,;;'. ; May Ins. 5sti!ence at his i)hu'e (jf rcsidjnee, has been held to justify delay in renderiii.")<>. " f'oiiJitio)! 0/ tJir ]irt'l)V agrees to make g.ioil mUo the •siii'l u.-i^u'.-fd cmijtor.^, !uhnini^tr,■ltor.s an. I assigns, all suuli iinnicdiaio lo'^.-. ..r tlaina.'e' not I'Nceo.ling in uiih>niit tlio 811111 or .-.nm.^ iiiMU'L'.i, as ahove t-peotit'd, nor the inlfrest of tlie insured in the propirty. (.-.Kcpiit as lierciii (jnjvided! as sliail liappi.Hi Ly fire to the linjjierty .'■0 .s))ecilied, from the tiay "f one ihoii.-and eiglit hioidred and at twelve o'clock at noon, to (he day of , ,;,ne thousand -it'lit hundred and at twelve o'clock at noon, the auionnt of Icsa or damage to he estimated according to the actual rash ndii, ol tin property at the time of the loss." COS iNriKMNiry. I4&*ll< Till' iii-iumiitw oniitmct i-^ hold by the oouvts to be ii inxt'l of iihilnaititij williiii ;in agreed iiuimiiit, lor a spuoi- fiud iK'iidd 'if tiiiji', mid •!■ ijurt.iiii coiitiiimuicius, ajai.ii.xf. /iw* or (/((/, Mff/r /'//,/'"/•''. iiiinn iTitiiiii sj)tii;itio,d subji'cts; wliirli pro- post'd /' //i/('//i /'/'/'/ sliiilNiiii|ily pii.V t'ov us iiiMidi nf tln' iirnpi'itv as may f>(' lout or Jaiiuajnl, by llie |HMiI insured iigiiiist, uilliin the ti'iiiis of" lilt.' 'loiiti'iicl, ill il.s nftu,(i cush value at the iuac of the loss, I AiU'i'iM [iH ^. '). >^. .too, ? \>:i; .Stevens A Mennkfi, 'i'iR, 2'.i'«; llniikinti Miir. Ins :j;i; '2 lilack. Comm. 1:>-I : LiviiiK^loiii' r. West. A^dnr. Co., IHliniu Cli. 4().H i I'ljd'lio c. Qiii'lieo. Iim. Co., .Stuiirlij L. C. \\>\'. 117; Kolclium r. Pro;ect. In.s. Co., 1 Allen \. Ij. 130. Aw /'/(./' /('.yw7// is ;i .si'Ciii'ily atjainst future los.s or diiiiiugi', wliilsl II (hill is ii .slim ol nimicy due and owiiig. Any [i.iv- iiieiit iiuiliT an iiidemnily i.s contliujeiit, both as lo liiiii- and ('iieum>t:iiic>'s : iijinn a lU'bt it i.s certain lutd imiiKMliate. I(S12. The wuiils u-ed to e.vpre.ss tlii.s liability may be inmri', iiHlemti.lfi/, inakc tjoo'l. satisf;/, i>ai/, nr any oiIiit term wliieli si^'iiiNes th.u money i.s lo l)e j-aid in case nf lu.ss. Tlie pri'diimiuaiit inteiilion of tlio contract is such liulehinit tj, iind t.i.s iiiUMitioa nui.st be kt.'pt in view in i)uttliiu; a con- struction u])oi> the policy. (Angell Ins. 50, § lli;l i'liilips ln,s. 2o, § bU.j 10»>;t. The ]:oli> ifS in use in New York city, fioinA. i>, 18(H) m iSld. ('ontained Ihe following — " i)ay and satisfy all lo.ss ami daiiiai'e," without furtlier qualification. In LSI 1 the following (jiialiliciitiou wa.s added: — '•' Sliall not bt.' liulilf to ptiy inor..' tliiiii tin.' real .imoiint nf sih'.Ii Ios.-.' or (!ani;i;.'i', to bo estiiimted iieciinliiig to lln' true ami lU'tiial viihic (;f liif .siiid })ru|)L'ity iiHiifnl at llit" linn' of such loss or daniagti." I<»'>l. The fundamental general principles of insurance, a.s distinguished from gambling and wagering (2H7). is that it is a contract solely of imlemnify, and not of gain to om; party at the expense of the other. It.s ttbject i.s not to make possiltle gain but to avoid a po.ssible h>s9. A man can never bo said to lie indemnified against a loss which can never happen to IN'OKMNITY. 609 him. Tliorn ciimi.)L lio an iiideninily wiLhdtit ji lo>s ; nnv a loss willHMit uii iiitemst. (I'ritchell y. Ins. I',.. N. Am 3 Yllt.-s l';i, 4f4.) Emkkkion ill tliis connection siiys :—. "Jt is «ulli-i,-tit. lli.il H... i,i-ur.-,l Ih. itHemnifl..,! for the real dama.^ro HiistaiiiiMl by him, withDul liavln,' ii n^rht to prcf..ril lo aivikiiuitjc at the oxponse ol' thv iii'^iiivrs. |{-f,riir.t ^' h;nl t.. 1mh:i oiiI\, m.t l(j gain." Jul1j,'(i ItLKl4 says of the iiisiir.iuuo ountmct : — " As a cioiiirHCt of indi-.mnUu n hhihI he hhcnilly coristnu-i) fcir ilie in^'iireil, to yic: him tht lor'jrxt iiuh'mnilij n-ilhU, its frnn.s . aixl thi-se linn-' rniiy somotiin-M ho ii, p |n.s [y) m.'' " " May Ins. 2 ; r.Mhlie w. Quebec Im. Co, Stiimfj L. L'. R. 174; 3 Kent f.'omm 2S2. KM fa. This principk^ of ?'/t.7'^inHi/)/ rf^qnires thittho in- .siUL'J .shall not bu paid the full valiiu of hi.s insurable interest as a,Lirco(l upon hy the paitios, and at iho sanij tiui.; be per- niittnil to retain niieh intofest, ov any jtoi'ticn of it " Tiio contract shi-iild never hv. so arranged, titat under uny ,sct of circumstances it wuulil be prolitoble to the insured to ue'et with disaster ; he shoukl never make money by a loss." It is 111)011 tliis priiieiiile that subrogation rests. (tHiii.) I Philips Ing. 2. ^ 3; Irving (•. Manning, 6 G. B. 422; 1 Arnould Ins. 8, ^;?' May Ins. 2; .Maiizet 72; Stiiicca do As.iecurationibus 9(;i), 20, So. 4. ItMlb. The contract of iusiirance. being thus one of uvh m- niti) only, mrhiiidemalty nmst, ou the.jth<;r hand, be a limniin pnuli'tn'e coiiM fureHee." " InsurcrH ar( rt'M|i(HiHililc niilv ('or i-iicli (liiniHgCN us liu])|i(ti iliri'iii.'li ciiHiml or iiiia\i'i'lul)le iicci'Iciit ; or t'iv)iii voliiutar}' net- wliidj luivi- ii just lui'l riwi-*iiiiiilili' <;nu->i', -iii;li us to iiV(ji(l (^ri'iilt-r iiml ninic iiiiiiiiiii-ni ilaii).'!'!'; ami ni ^'cneral, for all iirriilinl.i, liowcvci (.■Mraorlim! \ . iC tinrc lif no restriction-' \iy an express clmis,.. \U\\ an (irriiltnt is n ii ijiui ului-h happens tliroii;j;li the deleitft or perisluilile nature of liie lliiiiL' assnieil '7(tS>, \iM\l), or tliroiigli tin act or lanl', of ilii' proprietor, froi;^liter, or mastrr." (2 VaiiM C.pinin "8 ') l<(>1»>1>a> Tin; Ihih'ilUlc.H wlii'-li till' instiivrs arc coiittMif: to assume iini sut forth iii tlir policy, iis inoditicd miiiI coutiDllod by llic L'XoopLioiis aii'l ooiiJitioii.s of the cotiliacl. .Such lia~ bilit// an to lUrtounf is dimply the sum wliich the jiolicy is legally liul)lc to pay u lulrr ('/,«* otnn pecnHar coiiililioiis. llercMiles Ins. Co. e. Hunter, 14 ". C S li:t7 ; Kcpi ty V. i I'o. e tlnion lIl.^. Co., II L, C. lii'j, Uoiigluj i.\ Kennedy, Hi IJ. C. (.i- Ii li:^; 1 Anioiild Ins. II, § II, lliipkiiiii Mar, lus, .-t, III.. ,s l!i^. Law Jour, a.'o III. Mm. F, I. C: And< li.'s In.H. I/O., (J'l Tin insured jviys no hn.s li.vcopt with nd'eieiiec to tii.- .siiiii upon which he is ) iiid ,i [ireiiiiiuii ; ihc wliolf .siitn it the loss liital as to till- iiisuniiiio . .some ali((ii"i p ii'tioii of !u! sum hut utial I Aiiiould Iii3. 7 § 7: Rinprii'on Tn^., M"ri'dith'-i Rd., 28'>, 2H8, 290 ; Wesk. Ini 8. 1.5:i ; Hailey Si. I'oni Idj. Law Jour. !'>»« MIC. would l)e Hhyal. (VVildi.y v. Funinjr.s' Im. Co., S. (J. IVJiclu, Ki Ins. Law Juiir. yoG.) Tho miiiirtinKMits ol tlio [.(ili.'V in [UvuudU'r,<\i,rel.imia- iii'ii i>n,afH (IH«7) «li,i\v c«.iu;lnsiv.'Iy Hint rho contract is w^Aii viilitfil one, Init m[,(.mi to pronf'. ,i< i,, the sum of the loss or •liiniii;j;t! Hrncf, wi; lind tlmt ihr inlnivivin of los.'^, witli in tlif policy, is tliu tini.tii„ii,u <•/ liohllit^ to tlio iind.Twiittir. LOSS AM) i»AMA(.i':. 1<{57. l.oHs.us tecliiii.iilly (li'.iiiio,ii-lie,l fn.iii .liimiipc, is ulieti all or ah\ |".rli(Mi of tlu' |jroi,c:iy at vInU is ciitirtly cuiisumi'd, ik-.-troywi or misH. 111,1.' .iI'liT a lire. I(W». I>amai;e iM when non.' of flu- |ir.>|iriv is loially c.onHiuiRMi ,,r lii-siroyt'il, or lIns^illg, hul rfiiiam-- nlirr (lii-iin- in a nioiv or 1c,-,h ilatiia^'t!.! cumlition. Unless there be some good roiison t ' tin- coniiins, iho words " hm and damago h;/ jirc" must U; construed according' to ordinary ndi-s , tliat is, the thunaj^'f must lu' cilhiM' from the iuuilion of th(; articles con-^umfd, or hy the Imrnin" of tfie whole or a part of the pivmises. [n tlio one case thei'o would be " loss," in the other '•dania''e."' ( l<»1>l.) Ldssc.s, uiclnding (/a/H'///'A ruiiy Im' /o^^/, or parllal, as re- spects the i)isurance. They nre con.-iidered total when e(|iiiil lo or beyond the insurance ; tliey are pn-fiil when anvlhiug less than tiie amount of insurance. Willirtms V. Hartford Ins. Co., :.4 ("ul. 4-IJ,'i Ins. Law Jnur. .147; Au.itin " Drew, 4 Camp. ."itJl j Uabcuck r hn i\,., <■ lUrli. .\ Y. i;. : ; White „. Ins.* Co., 57 .Me. \n i Great Wfilorn Im. Co. r. Fogarly. IJ. .S. S. C, 3 Ii,s. Law .Joi.r. 714; Nave «. Home Mut. Ins. Co., a7 Mo. 4;iit ; Harrison v. Qiuxu lus Co 4'') Wis. 71. ■' ' Mitlf>. Zo.s.s is a coiuhtion jirecedent to a claim for indemnity, and loss can accrue to the insured only so far as he has an interest. The underwriter is not liable to pay any loss, except such a.s the insured has sustained by the peril in- snied against (J«5-l) ; and whether this los.s be total or partial, t lie amount nui.st determine its ('(due (l«7:8) either bva^rrct- ment before insurance, as in a valued jioUcy (tiHiij, or by proofs 612 LOSS AND DAMAGE. after l()ss(l.^02)« Some value Tiiust be proved, for, if 11(1 L'ooils ai(( cat risk, the policy never attaches. The r.iider- Avriter is liaJih; when the perils insured against are proxi- mate and effect the loss ; but not, as a general principle, when tilt' cause is r(?jiiute ; nor when simply consetiuential. (7'tJ Ins. I-aw Jour. !)33 : i Arnoulil Ins. 7G1 ; 1 Pur30n,s lus. 55t; ; Waters r. Ins. Co., II IV'tPra I'. S. 2IJ, 1 Berui F I. i.'a.ses (ilii. A house covered by insurance, injuieii by the falling of a gable of another house, caused liy lire . — I1ki.1i; 'I'lmt til iii.-iurer-' were liiit)ie, tl['iii;j;li tin- injiirc'l liousi' liail not tiet'ii on tire ; aiiil the fiilling ^'lU'k: had reiiuiiiii 1 .sianling two ilays siih-ic. qiieiit to llio e.\tin_'uishriieijt oC llic (ire, aii'i tln'o I'eil in cdnseiiuence of Ojieratioiis for it8 reiiioval. (.rohii.-on c West of Scothiii'l Ins. ('(.,, 7 Cfi«e.-! ("i. Se.s.s. (Scoloii) 62, cited May [ii.«. I'M, § -112, and 1 liinn. F. I. Ca8e^ 2>!) ) l hail not I ilays siiIhc. iiise(|U(jnforwich a N. Y. Tiansp. ('„., 12 Wall. U. S. IS-J, 1 fns. Law Jour. 4ir. ; same case M Conn. .001 ; Germaiiia Ins. Co. r. Sherlock, 25 O. 4 Ina. Law Jour. 681 ; ilay Lis. 614, § 457. ' l««a, Limee ^rising from bona fide. cffL.rt.s to i>xtitigui.^h firus, such R,-^ wuttiug and soiling goods, or by Unjfb at the fire, or in removal, are fairly within the contract of iiisurancie, and the underwriter will Ije liable, unless tiie policy stij)ukto.s against such loss. The doe.trine in these cases seems to be that damage liy water being thrown upon good.s in extinguisli- ing a tire, and loss by jdundcM' of goods removed away frf)m the fire, and so ])Ut out of the control oi the (»wner, are, in cnmriKui prai'.tioe, treated as directly incidental or conseque--- tial to the Hi-e, -ud covered by tlie policy, unless otherwise stated, (I7;J5.) Waters f. In:s. Co., 11 Petsrs IJ. .S. :il.3, 1 li,.,in. F. |. Cases (514, and author- jtie.s cited ; 2 Arnould Ins. 7ii4 , 1 Parsons Ins. 'x;.'!. T'Y FlltE. tiUili. When the peril insured against is fire, the i/isnu- luent of destruction tnu.st be tire ( 3 J5arr. IVnu. 47). Hence to make underwriters liable under 'd fire policy, the km or daiim,,.' must be caused by, /or— either by jictual ignition of the i>r. H»«-l. ILot IS not lire. No liability attaches to the uudci- wriler for danuKje by heat or smoke occasioned by tiio misa|,- j'licationof tire-heat during the process of manufacture : Hki.u : " Tliai .ianiagf to a .-.took of a .«uo;ar relincry, l,y the heat of the usual tiro.i, in conse(pieiice of tho iiiisnianajjfuu'nt oft!;. (iuiM|.cr8 bv thtish Iwiving charge of the retinery, wa.- nol d'lmtu/e within the pohoy a-ain-t fire." (Austin v. Drew, 4 Camp. N. 1'. :W0 ; « Taunt. 4si;.) 4 La. Ann. 15 ; 19 id. 279; 14 N. H. 341 ; 11 Ohio 146; IM Johns. V ^' 451 g Barl). X. Y 637, May Ins. 48J ; Wood Ins. m ; .S7 Me. 256; 4 Comst. N \. I3u • Civil Code L, C, ^2:.81. ' ' G14 itv rrvoi'r.i! virE, 1 <{(>'*>. If a jiiirt of ii building u'ljitceut to a fire-pLxcp, tiui- hei'work aruuud tlie lire-]i1aoe, and tlio like, be damaif^ed or de- trovtid by fire from tht3 ifiato or hearth, such Wdithl 1)0 a /(ts.s hy fire. But tb(i grate itai.df, t'urnace.s, or other ordinary iijiparatn«, or iipparatus containing or applied to the fire for oonductiiig manufactui'ing process, if destroyed or damaged by the fire tbey contain or to wliicli they are a^jplied, give no claim for indeninny. The spoibng or consuming of any two cliemical fluids or biidiet) by the process of combustion ensuing ou their combina- tion is not a Zos-.s /j;i;e, if destroyed by flames oi- the firi}, has been held to be a loss by fife. Fire produced by friction of a ^vheol on its own axle, whicli- Consumes the wheel, is a loss of the wlieel \iy fire. A'lgoll \m. lt,9; M*y Ii)3. 70!.', 1 P.iraons las 5:.,i, RGO ; H.dt N. f. 12(i; (Juan- nioril lus. 37. I<»4><»> .'^huuki ,1 bialdinu oo\ereii by insurance fall in con- -iKpu'nce of an explosion of a steam-boiler, there wouKl be no loss- ti> ih.' iindL'iwrite) , for. although tlie lUinhi.ije wa.s princi- ] la I ly caused by t Ik; furnace //'r<. n ruler fhr Imiler, yet tiie lire was not the proxiinatc cnnse uf the fall of tlie l)uilding. ^I07iJ.) i\iiKOll 11)3. 168: 7 Hosw. N. Y. 385; 1 Kent. N. Y. ".10. \\\ I'ROI'KR VICE. 1<><»7. riidfiwriters undertake to make iiiili.'mnity only for damiigr ari-iiig frnm (?.Wf/7U(/ accidents, not from that ni-i^asioned by the inhiMiMit ipi.iHtn'S oi n:iiiir^e by wind, toriuidos, cyclones, or electrical storms) to the property herehy insured not exceeding the sum insured nor the interest of the assured m the property, Avhellier lire ensues or not, and i'koviiikd, tiiut it there i.s oilier insurance xipOii the properi) damageil, then this Company sliail onl\ be lialde lor .=iuch proportion of the loss or damage as the sum hereby insured bears to the wliiile amount of insurance thereon, whether such other insurance contaiiis a -iniilar provisiim or not. l<>4>.Sa« Many offices ar(> now i.ssuing policies coviu'ing loss or injury from cyclones, tornado.s and wind-storms, the rates range about the same as on furiii property generally. Tlie risk is purely an insurance hazard, void ()f any moral risk atten- dant u[)on tangible property. LIVE .^TOCK. I<»«».Sb, The covering of live sfock against death or injury from lightning is now common, under the following or sonie .similar clause : — "it I.s understood that this insurance covers the above ilescrlln' 1 (live stock), in I'asi: of death by lightning, wht'tlier in or out of said (barn), in the field or Oh the roail " H:iwf3 !■. Ins. Co., S. C, Pa., IS Ins. Luw .lour, .jtil ; Same r. Ins. Co., 114 Pcnn. .St. Ai\ . Uori^ht ». Ins. Oo, 8. C. Miua., IJ lus. Law Joiii.SoiJ ; De liratl V. Queen Ins. Co,, IT Ins. Law Jjur. Wi. «Y EXPLOSIONS. 617 lOCWe* Large numbers of live stock are sent to foreign countrie.s from the United States and Canada, undcu the, fol- lowing CATTLE CLAUSE. « WarrrtiiU'd .»'rct' from morulity aii.i jettison from whatever vAvi-'e aris- ing, iii)l(w« occiision,.(l by the loss, burning, or stramliug of the ves.^eh'' See cn-jc of Snowden r. (iui.in, New York Commission of Appeals. Live stock insurance in the United Stated was started in the city of Pliiladelphia, in the year 1832, airice which time a number of otiices h.ive been organized, mostly mntuals ; but in no single instance has success attended theiu ; neai'ly, if not ({uite all having retired. One prominent cause of tliis want of success is in the absolute lack of any reliables statis- tics in the business; another is the hetivy moral hazard con- nected with it. If a portion of a farmer's stock be covered by insurance, the mortality among the stock usually falls among that jHM'tion insured ; the uninsured aittle worry alonw to a good old age withotit special care. From Magens we learn that early in 1700, the insurance of cattle in the field against disaster was connnon, but nothina is said of insurance against lightning, A copy of the appli- cation of the policy issued, and the adjustment of loss under it, will be found on pp. 267-8, also p. 34, § 31, Essays, vol. 1 BY EXPLOSIONS. I(>. Condition of the policy.— " Nor for any loss oatistil tn the e.xplo.-^iun./f giiiij>o\vcler. oampluMiC, or any cxplosi\esulistanc;e ; nor by lij^'ht- ninjr, nor explusi(jii8 of any kind, unless (ire ensue, and then for the lessor damage by iireoniy, which loss shall be determined l>y the value of the (iauiaj^ed projwrty after tlie casualty by explosion or lightning." This (!i>ndition makes a very nice distinction as to the value of property at a given time--that is, after the casualty, and before it may take fire. By the conditions of some com|)aiiies all liability ceases in case of an expioHion from any cause (i«ri.,) Uaited F. k M. Ins. Co. v. Poote, 22 Ohio St. .'!40. 2 Ins. Law Jour. 1!)0; St. Johac. Ins. Co., IDnerN. Y. .<7l ; Dows. v. [m. Co., 127 Mass. 84ti ; Emst'oy v Ins. Co.. 14 W. Vtt. 33 ; Washburn v. lus, Co., U. S. C. C, W. D, Pa., 'd Ins. Law 618 HY EXPLOSIONS. Jour. r,8 ; .Satni; r. Ins. Cos., U. S. C. C, ttliio, i" iif. 424, 701. By gas: Burton V. Gore Dist M. F. T. Co., 12 (Jriint Ch. 178 ; Crawford r. Ins. V,o.,H V. 0. Q. B, 135 ; Stat (.\)n\>:pl(». An cxjilosion of powdor and fixed ainmunitiou oocurred in another warehon.se ; circumjacent buildin<.,'.s were thrown down, their contents opened to the flame.^, and a fire wa.s lighted which s[)i'ead and con,sunied the cotton covered by the ]>olicy. Ujiou api)eal to U. S. S, C. the decision of the. lower court was ntvt.'rsed, and it wa.s : — Iln.ii: '■ Tlic rule (jf the ilecisioii of the Court Ijflow Iuih lioen provotj to cDvor foine fallacies; a clu.se, practical ilctinilion of tiu' rules of law in the |)reitii.seH is that, in case ot the cuncurrence of ditlereiit causes, to one of which it is neic.-sary Uj aitrihute the lo.-s, it is to he attributed to the elKcierit jireiloniiiiaMiij; jioril. whetlier it is or is not in activity at the con- summau(.iu of the disa-'ier." (KiOO.) ([us. Co. d. Tweed, 7 Wall. U. S. 11.) Waters r. Ins. Co., 11 Peters L'. S. 213; 91 0. S. 4';9 ; 9") id.m. KIT I* .V sti]»iilation in the policy '• that the insured shall not lie liable for an explvsioii of (ju)).pinolion, and from any damage domi hy furthev firf. remiltinij from sti.fh eirjijos'oii, where liability fdi' such ex})losi(iii i.s excluded fruTii tlK> pfdicy. Mrtyward i:. Liv. A Lond. A (llobe Ins. Co., 7 Bosw. N. Y 3fi,'j, affirmed, 3 Keyes 4.'i6; liriggs r. N. IJ. Hi Merc. Ins Co., C. A. N. Y. j 2 Ids. Law Jour- 929. 019 r.Y FAIXIW. I(J7U. Ooiiilition (;/■///, /yo/i,'//.--" If a builiim^ jliall lull, ,m;. |.i as result of a tire, all insurance liy this coni|iahy on it or it.i cuntents aliall iiiiiiiiMlifitely cea.^o ai^l (k'trriiuiie." A building insured against liio liavmg fallun, afterwards took lire : — Hkim: 'I'hat the l.'iiMiiig iiaviiij; t'alk-ii liown, ci'a«('il to exist as such, by a naiise, or by roason of a p(>ril iii>t insured asMinst ; fin inir-t be the c//itvV(i/ cause, ami the 'lirrr.f efteet oftlw./irc. (liHi\).) Navi' I. IToine Ins. Co., .tT Mo, 4M ; Meek r. Qlobf-. Tiis. Co, U'ilkor i. Queen his. Co., 8towe >:. (Jirard F. A .\I. Ins. Co., S. J. C. .Mass,, 8 Tns. Lnw .liinr iUJ. The euMse of tlie loss of the .snbjeet insured in this ease wa.s not tlie jire, \n\{ tlio /(/L That a tite spring.s uji nftei'. waids in the ruhbisli aii'.l destroys tlie fallen materials is .soiiietliing licyond the coutmct. The mUerlalH wre not uisuivd, the building was. Where one of the walls of a granite budding ga\c way, and half i^f the store and the adjoining building fell , shortly after a tiro broke out in the ruiriH of the adjoining bu'hUnp, \vhidi eonununicated \sdth the remaining portion of the granite stove. The poliey being upon "stock in t!ie granitr store," it was ; Uki.d : " Thai the irisurerH were liable for daiuai^e from tire, and ttDrn water n.«e(i to e.\tinguisi> if, to j:;oods not displaced or injnr'-d by tlie full." Lewi.s v. FiiTln.s. Co., 10 Gray .Mass. lo'J . Breuuenv. Liv. & Loud. k. Globe Ins. (.^1., ')! Cai. IGl, Ins. Lnw Jour. 47.^. In this case the fire broke out ami burned the goods before there could be any interposition for their safety. I<»7:{. The burning of "i*aif«)'.S()??. Warehoii./"/lhc fad^, and in no manner as imjtlij'nuj an iihuaUdatinn of (he ' fallinij' ctti.ii')hr iJoUcies." INVASION, IXSUUUPX'TION, KIOT. CIVIL COMMOTION, M1LIT\UY OR USUUPED POWER. H>"4. Ciiiiilithiii of fli.- polii'!/. — "Nur tVir .'iny li.'s-^ '.>r (iaiiiam' l>y fire causi'ii liy invasKjii, iiiMirreition, riot, civil eeniitnution, or military or U8ur]»'rsed li id. a?.3, and authorities tlieif cited ; Sl. .loliii e. Ins. Co., 1 l»iier N. Y . 371 ; May In.". M^t^ ,t. f ; (2). IxsuuuECTioN : A rising against iho civil authorities. It is more than sedition and Ics.s llian rebellion. (Htrairss t'. [iii|). F. 1. Co., 17 Ins, Law. Jour, 25() ; in Missouri IV-nitentiary.) (o) Kio'i : A tniuultuou.s distiu'bance rioters had ass<'mbled for lawful purpo: and were afterwards giulty of a r/o/. Nor is it nece.s.sary that the guilt of the rioters shall be first proved by a criminal prosecu- tion. Diipin I'. Ins. Co , f> La. Ann. 482, 3 Benti. F. 1. Cases 128 ; Diinliwait r c. Ins. Co.. 2 Wiisuii :>i3. •1 i. Molt : A )iiob is luled to be pirates. (Harris v. Ins. Co., 50 IVnn, St. 321.) (:>). Civil commotion is an hmirreetion of the peojde for general purposes, although it may not amount to a rcbcUiou where there is iixurped povcr, Langdale v. Mason, 2 Parti Ins. t;...7, 1 B>'nn. F. I. Ca,.. RfytioMs, C. A.\'a,;)liH. Liiw Jour. 000. Ki?'"*. AVliero a few soldiers, li;i\iii<^ left tlieii militarv coin. piuiv (ir iiiLiaiiized force, fur tlio purpose of firing' tln' linii,se throut;]! private wautonne.ss, malice, or revei)j,fo. did .so tire, ilie .saiiu' uitlioiit any order or authority from any oHicor in ci'iu maiiii, tlicii tlie liriiig ^va,•^ an act of private iuccn(liari.sm, ami not vvitliin llic exceptions of the policy. Hill toil -■ lloim- Ins. Cu., IJ .\lu. IStj,!?. S. S. C. 1.^72; 1 Jones Lrtw N. C. [T> ; IiriiikwaiiT /■■ Loiul. Assur. Cori).. 2 Wilson ?,'',3 ; Heryt'ord r. .Etna Ins. Co., 0, S. C. C. Dist. .Mo., IsOl*. I074>. I'liiijc AUTIIORITIKS : The order of a mayor of a city to blow uj) a biiildii.n to jirevent the spread of a contlagration i< not " iitiiirjied jHiuer" witliiii the meaninjj; of that term in the jiolicy. (City Fire Ins. Co, r. t'orlies, 21 Wend. N. Y. ."367.) See opiiuoii of Judy;t! Hare, ujiou the bliwiuL; up of buildings at the time of the i^o.sion coullau'ration, 1872. ('J, Ins. Law , four, ol').) HftTT. l'nderwi'it(!rs an' liabh> foi lo;s3 of a building,', iindiT insurance, by being blown \ip with gunpowder and demolished to stop a ctaillagration, wlaii it wuidd have been .soon inevitidily biirni'd in the jaogre.ss of a lire from a neighboring buihhny already in tlames. (2 Ins. Law Jour. ol5.) The destruction of a buililing by public autkoritics-^ by me of gunpowder, when absolutidy neces.sary to jirevent the exten- sion of a conllagration, bectomes " a lo.s.s l>y Hre," and the uudor- wriler is li:dile, if insured, upon the ground that "a lo.ss by e.N.- jilosion of '^nn]iowder is a lo.ss liy tiro." Licnce, tlxi liability ot the insurer i.s not alfected by the legality or illegality of the act of the jiublic anthnrlflcs. I'enlz (;/ I/'', i. IJueciver Ins. Co., [) I'aigo N. Y. i'lOS ; 'J Kenn. F. I. Oa.'ics ist; Ciiy l-'ire ins. Co. t: Corlie.'), 21 Wend. N. Y. 307, 1 Ik'nn. F. I. CiiseB TM ; tk'ld ( . Citj' of r>f.s.\luiui'.H. S. 0. Iowa, 4 In.s. Law Junr. 23K ; I'hillipi c. Iiis. Cu., i4 Ml). 220 ; .'! Ed. Cliy. (41 . .Mayor S. Y. v. Lord, 17 Wend. N. Y. 2H.t ; 3 D(ni},'las-< 01 ; i3,MeUf. Mns.s. ;i9 ; 11 Jolins. N. Y. 4r.l ; 1 1 Peters U. S. 213 ; 10 Cnsli. \Uss. ,3:.0; Ooidon (■ Remington, 1 Camp 123; 1 Philips Ins., § 101)7; llutler c. Wild- roan, 3 a. k Aid. iOH. Where a building ciA'ered by insurance was torn down to ItY AVIM'll. NKOI.KCT. 023 provcnt tli<^ sjirciid cif (ire, anil jNivtly pnid fuv by onlor of the corponition ; — Hki.i> : 'I'liiit llif iiiHuriTN wprp liiiltic Pur tlie full vtiliic of tlic biiililinjr within the HiiiDimt id' llio iPidicy, Ichn the amuiuit rccciviil Iniin Ihi' C!ity, ut'tiT ili'diKitiiij? fi'iiiii siu'h amount a proiiortioiiato nliarc of iho I'oHt* of reeo- vt'iv iigaiii'^l the (•iiy. (Mjiyur of N. Y. r. 1,0^1, 17 Wcmi. N. Y. 'ix'),) HIT**. l'iiil(;v tlxj statiitf iif New York, wlicii tlio iiisiircd receives cdini iMi.~,i.ti(m frdiii {\u\ imuiiciiiality for ilfiinai^t' to hi.s biiiMiiii; lU'iaolislKid to .stop ii iii(!, tlui I'stihutle of ilaiiKitjt under siieli stat-tite is not liindinjj; as l)otween liiiu.solf and the insurer. Till! e-!iniate of dainagu may lefcr lo a l)uildin^' at the tune ahead} on lire, wbidi iniglit possdtly bave been saved. I'.esides it was belwcon oLber parties- ('.) I'ui^'i' Cby, N. Y. .'.1,8: !'. Ed. Cby. X. Y. :U1.) \\\ WILFUL NEGLECT. H57'.). C>ii'lit(o>i of /'.///c'/ — '' Till' lit"t cniiPHVors ol' the- ii->iiriil -hall he iisc'l in >iivin:( am! prolc'Clin^' ihe' |iiiijit>rty fro-ii 'hiniaL'i' m ainl iilicr ihr lire; aii'l in c'vsi- vf faihirc so to do, this loniiiany ^liall nut it- liabh: for (iania.'c cansttl hy ..^lK•h taiinii'." L'liderwnlers are not lial)le fnr damage caused by laihu'e or 'ivilfiil. )i'T4.) Tliompson ,'. Montieal Ins. Co,,0 U. I'.Q. 11. 3U( , Willis ,;. Ins. Cos.. S. U. N. t".,8 Im. l,aw Jour. 44t> ; Fern;ui(iM/ ,>. liia. Co., 17 La. Ann. 1.31 ; Wobij. ( Ins. Co.. 14 Mu. 3 ; Case v. llMrtforJ Kire In.s Co., 13 111. OTt!, 3 Beau K. I. (Jases 34;); Wells t. Ins. Co.,8 I'iciv .Mass. 181. •' It IS dillionU. to eoiioeivf any comluut more m-arly approacliini; fruii'l, if not [lartaking of it, than foi' a jmrty in.-uri-d lo alistain himsi'lf, or pri-vent Others from nsin;.' evt.'ry po.^isibie nu'aii- lo ('xtinjrui.^h llu' firi' or savutlu' [iro- pert\ from destruction." (KIlis In-, 17 ; SliawV Elli.s m.) \Ybile the insured must take due care of the salvage at and after a tire, he is not lequiied to take Rtei)S to rnslorc it to its condition before the fire, .sucli a.s relaundryiiig a srock of gentlenien'.s furnishing good.s. (I57S.) Hili^P C2l TIY I.'KMOVAT. 1<$HO. ' 'iiiiililiim of the I'lilirt/.—^' Nor for Ions or iliiinii;;!' ciiiif-iMi liy re- ni'iviil orpmiierty I'roni it tmiMiiij;, cm I'pt ii In- |iru\»'ij that Miih removal wiif ticitftiHui'V tu preniTNi' llic |)r(i|.i'riy, in vvliidi ('fir^t' tlu' ilttiniij.'p ■'\\:{\\ lie Imiiiu In tlip ii-«iiri'il hihI tlie comptiiiy in |»r(>|xirtiori us tlie ►•um litTcby iiihnrtd bi'iirs In 111'' whole viilin' of llic |)ro|)('i't_v ." WIm'Ii /(inv i'l- (Id.iiutijr is ciiiiH'd hy removed of gomls froni 11 biiihi.iij^' )iut ijct on /re, hm awuh 'y ihroiitciictl tliiTcUy, t(i j)n:.s( rvo tliriii fi'iiiii loss, siu'li rcmoi'd iini.sl Ir ahsuluti Iv neiji'sisuiy, uml llu; d.iiiooi iiiiiiiiuoiit, or tlie undeiNsiilLi will not bo Iiiii)le. Miiy liH. U)l, J 434, mill .mtlinniui ciici. Tli'»iii|iji)ii v. Armiri'iil lua. Co., U. C. ii \l :!!!», T Bonn. K. I. Cmi's 23 ; Tulaiinjii .•. Ins. <'o., K! Lii Ann. iji; ; Peoria F. K M. Co. c Wilion, fi .Minn. 5:t : Stiit. Con. U. (5. 5 ',, Fear i>t' ii peril not iiuwitiilily or imminfiitly iiuju'tnlino iiiii} iioi tliiow lo.s.s ii|)i)ii till! iiijilurwritcr, tin- insiiriiic • rit/t lit'iiiy (iifiiiii.st apprehfiiKlonH of o Ijiv. Injury su.stuiiicil liy reyiioiiil oiii^iudtcs, iini fidiii iirtic-^sit} to .siivi* tlic ))i'ii)MTty fri/iii iii}j fiiin it. Ilillyer c. lua. Co., ;i Pi'Uii. St. IUm J lSimhi. K. I. (3ajes4ft7; Agncw f, Ins. Co. 3 I'liihi. Rep. l'.»:<. HiHl. iJiit, (111 tlio iitlior hiiinl, in ilio ca.si; of Wliito ?•. Ifi'jiublii: iiuil I'lilief [nsiiranc" C'ini|)itnios (5 Miiino J^l), the (It'fendiin' ii-fu-cd tu ji.iy the cliiini of i»laiiilitt, w lio, diiiinf the i;it'!it tire at rorlJaiid in IHlid. removed his stock troin the vi(-inil\ ol' the liaines to ,i jilace of oreator secnriiy. 'J'/,,,; lihu'r thypxUened '.vks luit th'^ttruijid, nor V'as (he pine vj,U]ie.r the stuck I'xts removed, Tlio plaiutift clnimed for thu expense of riMuoval. Vei'dicl for the in.sured. (Hi.Stf.) I(».H!2. Casfts have occurred where i^oods '•caiovod from - liinniug I'liildin^' to a ^iipjiosed placo of suicv/ wev' consiuiK'd during the ]irevah'i)<;e nf the saiiie Jirt . , would undouhtedly be eo\ered iiy the policy; tie such is not the j,'en>3ral opinion ninung underwriters, by man) I whoi.i it is liehi that when good.s havo left the building in uhi they were covered, they are no longer under })roteotioii of the flY llKM^^AI.. r.L>5 policy. Siidi iiistnuoos were- fiV4ii(!iit at the Chicago liiv, a. d. 1871, Mini w.Tc iill rtllowerl. l]itiniiiil case occniTcd witliin the oxponcrice (if till' Hiithor, wIk'Iv gcinds wtM-c iviiiovcd ('ronittbuniinghiiilding t(- ii Vddin sotiif' two siiUiuvH distant, whcro they wave iii^aiii in iHTJl, (ind loiiiovod i'lv.ia a sul)M'(in<'nt fire two rlays iiftiii the liist ninovul, l>i-fuiv, thfv cnidd lu.- armngcd for ivljiistincnt of lilt' lir,st lijss, llio Idss wiix nniu' iii'iivv liy t|„.ti, dmiiij,' the socuiid reniiiviil. In tins wisr, tho second liiv. Ik'im<,' alto- •^'I'tlicr di.scnini.'clcil lioin thf first, tlie umifrwHti-rs wciv, not lialjlf, and tlie adjustiui-nt h(?caiui' a niatt((r of coniprnmisc. I«.HI. Existing fircnmsr.anc<;.s must. d.trnniiK! the nec(;8,sity for rninivdt: tlio daiigiT may b(> ,s(» inuuuKMil and iiuuK liiate that a failui'c to runiuvc would \ri,-»<-.l of llio lire in time to rctiiuve tlie gCKxi-' licfiTi' llir liif cuiiM ifiicli tli.'MMiihl iIh'v, as nHi-o?mtilp and prudent incn, kiu'w thui ilicv tionid nmive Midi it-niuMil, luii instead of attctn|ilin}; it liud Miliiii.'l.v .-t....d liy, and lia.j seen I hi' j.;o'.dH ciMisnmfd, no c.iun ur jury «oiild <'liaru;o llii' conipaiiy wiih >\\v io-s. niilt.-sn covered by some nili' wliiuh lliey wiTi' inoxoraliiy conipelli'l to t'olluu.' IU.S5. ProfMifty must be riniiovcd, and g'liardiHi with loa- aonable pnidiMici- and eatv', U may Im so eartdessly removed and >*o minccessaiily expound after removal, as to ndieve the insurers fioin lialjility. (l.lT.'Si, and authorities nipra. EXPENSES 01' HKMOVAL. Ki.sn. [n the absenro of any reference in the condition as to hability id' the insurer to contribute to tlie o.xpenseg iuciilent to .such removal, the cases are contlictino, but the weight of autliority is that such expenses are for the com- mon benefit, and should be borne ])ro rata by insureil and insurer the same as in j)ayment of the loss or daiua<'e. Petcra ». Warren Ins. Co., 14 Peters. U. 8. los ; Case r. Hartford F. I. Co 13 111. fHii, 3 riennelt'H F. I. C. 3-li) ; White r. Hepiiblic Fire Ins. Co . :>1 Me' 91 ; AugiiU Ib8., § lU ; 1 Philips Ins, 645, (U») , yiat. Cond. U. C. § 6- ri' r ^ OTW^si^f'^^Tr-'"^ 62G BY REMOVAL. But when ncithor goods covered by tlio ])olicy, nor the build- ing containiii;,' iheni, were touched by the fire, but the goods were damatjed by removal, under tlie reasonable apprehension that they would be reached by the flames : — IIki.p: ■' TIk' iiijurv rtiistuiiied by the insured in tlie i-fiiKjval of tlie jrooda Avaf iii'l •■'. la^s* wiliiiii die teriiis of the polioy." (ilillycr v. Ins. Co-, H Barr. Pa. 170. ) The liability of the insurers in any case will depend meas- urably u])on the ininiineucy of the jitnil, and the reasonable- ness ami expediency of tlie steps taken in the emergency. lO.ST. Insurance against fire was uim.u a st(K;k of jewelry and cutlery; a fire hajipening in the immediate vicinity the insured, with the approbation of the insurers, procured blauki:;ts, au I having saturated them with water, .spn a.d them on the outside of the store, whereby the building and contents were preserved, but the' bliiidcets were rendered worthless: — Hki.i): " Til in los.s was n<.>t covered by the jxdicy, hut was a .sdljci-t of general averajie, to wliicli insurer and insured sliuuid contriliute in jiropor- t«(.;ii to llie Hinonnt wliich they respeclivoly hail ai risk ia the store and ii.^ conteul.s. l)uiliiiii}.'s in the neiL'litiorliood which -voiildhave been enil,ini;er- ed if tiie store iiad laiion tire, and u,'«.)n some of whieli tiic underwiiter- hail out'tamling [wiicies. were too ctv/K/^e/;/ aliei^ied to be haljie u.> conlriliiue."' (Wide.- V. Ins. Co., I'iek. Mass. 1.S2 ; 1 Parsons Ins. i'lOl.) EXPENSES IX EXTINGUISHING ilUES. Itt.S.H. In this country these expenses aiu b(jriie by the insured. In England tin y are provided for Ijy stipulations of thr p. Expenses incurred in saving property al and (.uniit; fires, in fire insurance become a portion of the l((S.s, and are borin' by the insurers within the amount of the policy. (lO^i.S.) All exjen-ses for the care of " tadvaye" after a fire fall njion the (r.vner. Lawrence i . Van Home, 1 Caiuea N. Y 270 ; Wat^oii v. lu.i. Co , 7 Johns. N. Y. 5H i 8 id. 3u7. G27 MEASURE OF DAAfAGE. ■I«{)(). CondMon of the ,>oUa/-- The casi, value of property destroved or.la.„a^red by fire sl.all in no case exceed what woal.l be the cost to "the ansured, at the tune of the Hre, of replaci.i^^ tl,e name; and i„ ca.e <,f the depreoialiouof Pitch property, fro,., nne or otherwise, a suitable -leductioii fi'oin the cash co.st of replacing shall be ma.ie, to ascertain the actual cash value." 1«SH. Damage in insurance is classed as adwd and ro>h- sti'udive or consequential. ^ 1«!»2. Actual damaof. is that which arises directly from riio fire and its immediate consequences; it must be determined without reference to extraneous circumstances. By the con- ditions of all tire policies the cai^h valve to the owner of the property destroyed, at the time of the Hre, is the true criterion for estimating the nieasa n: of ilamage. The theory of the measure of damage is the exclusion of protits under insurance. (N. Y. Civil Code, § loTOj borne by the VALUE. !«!»;{. Vai.ur may he d.-tiued as of tw., kinds, valm in use, or the utility of an object for use; and rahu: in exchaugc, .,r the worth of an object in purchasing other goods. AdjusUmnt m/u(i,s always have this latter signification. P li.nn. F. I.Ca.es 1.;..; Knell .. Fire Ins. (.'u., 4 Dail W.i : s c 1 U ash. (., C. 60i) ; EUmaker r. Franklin F. I. Co., r, Penn. St. m ■ s . ,; \v„tts i S. 4.TO: Hoffntan v. It.s. Co., 1 La. An. 21.J; In.s. Co. .. Hunter, 141 (', C K U.S7 ; Home Ins. Co. v. Gaddls d ,/., S. C. Ky., 10 In.. Law Jour..7?4. MARKl'T VALUi:. 3. Co., 7 Jolins, N. I«!>;{a. Makkkt VALUE is the prico at whioh properly ran be purcluLsed in " open market " from tirst bands, us oppos.nl to salepnce of pateru^d or exclusive articl.i. which are not to (2S MEASUKE OF DAMAGE, he foumi in " open market," as tlioro can be no competition for them. Tliia " market " value or ,sale price includes, in addition to coxi, the manufacturer's or merchant's j'rojit, and the lactfn's rovi7ni,ssio)i upon his sales, which are not sultjects of indemnity nnder an insuiance upon goods only. Equitable F. & M. Ins ('o. c Quinn, 11 L. C. R. 170; Douglas r. Murphy, ItJ TJ. C. Q B. ll.'i; McQiiaig r. Ins. Co,. IK U. C. Q. B. K!() ; reversed, (iranl r. .Ktna ln.f. Co., I,. C. Q. I!. App. l,s(!0 .Mack ,; Ins. Co., V. S. 0. 0. Dist. .Mo., 9 his. Law Joui. liSO ; Fowler r. Ins, Co., K C X. C., (i Ins. Law Jour. 4.S2 ; Vjime c.Ins. Co., 71 N. C. 121 ; Harris c. Eagle Ins. Co., 5 Jolins. N. Y. 30H. I!>«>. To ]MANrFACTCKEUS uR rKODUCEUi^, at the pla(;e nf productiim, tiic measure of damajje will be the " market value " 1)1 till' raw mateiial, on tin-, day ol the loss, janrjia.sed for ea^li. ]iliis expenses of manufacture, without allowance for plant, rent, intei'cst, iirntit.--, or out.side expenses of carrying on ihc business. Marthesseau clns. Co , 1 KdI). La 4.'i8 : Hiinyon Ins. 110. 11 ihe pM)diu"'i's goods be consigned to a faeior or eotn- mismon merchant for aale, the freight and expen.ses of trans- portation fiuiii liie place of manufacture t(i the factor's stnio are adiiitions to the ii'>t, hut cnubiuissioas to be )iaid to sucii fa,clui' arc Udt a pait (tf the finf covLUcd ly insuraiuM; u}>oii the goud-; ; these i'(;ninii.sHii;d thereby, iliough the sale price ma.y be increased, hut rcidizc'l anil/ iijHtii. the tioU articles, not upon those burned. lus. Co. V. Senuell, 37 IVim. .St. .'05. MEASURK OK DAM/iGE. 629 KtOR. To Meiichants, Jobbers and Deali:;rs wholesale: Tlui measure of damaf^e will be the actual ccu^h value of tiie •.mods ill "ojion inaiket " in first hands: the insurers, under the operation of tlie reinstatement clause — l>euig cash purchaseis —are entitled to the best the market atfords at prices (quoted on the day of the fire, Bimyon Ins. 101 ; Hoffman v. ^Elna [ns. Oo,, 1 Rob. X. Y. fiOl : n. c. 19 Abb. I'r. 325 ; affirmed, 32 N. Y. Wii ; Wolle i>. log. Co., 1 S-iudf. N. V. 124; aniniiod, ;! Slid. X, V. OHIi ; Laz.arf v. I'lKuiiix lus. 0"o,, 8 U. U. (J. P. 13j ; Kquilable F. I. Co. i;. Quinn, II L. C. II. 170. H»l>7. To Co.MMissiox Merchants and Factors: who having possession of tlie i)r(.i)ert}-, may insure it in their own names, unle.ss the stipulations of the policy prevent, the measure of damage will be tlie cost to the owner, U'ho is the real jjermn, Insvrcd, ])lus expenses incuri'cd in getting the goods to the factor. This class of insuraneo is usually done under what is called "the usual commission clauses" (TlJt.) 1 Hall N. Y. 81; .16 .V. Y COS; 1 Duer lu.-,. r,4 n. ; 1 i>hilii>s Iu3. m, 81s iU ; Oal. (v'ivil Code, ? 2589. I<>!»H. "(rOOlKS SOLD BUT NOT DELIVERED:" for goods Cov- ered under this clause, remaining in the hands of thaoendor, the measure of damage will b(^ the cost to the vetyhr of replacing the goods on the day of the tiro, for ea.^h, without allowance for ])rofit made upon the o^'iginal sah;. Any such allowance would (iial'le the rciidor to makt; two sales instead of one, with the accompanying profit upon both. Thi.s would be prevented by the insurers replacing the goods themselves. (I30li.) I Bunyoii Ins. 100. I <>!>!>. To Consumers: IIks measure of damage would be the price of reinstatisment by the insurers, or the cost to the iii.-jured in the retail market, on the day of fire. Elliiiaker". Franklin Iii3. Oo., S. C l\i., 3 tiuiiu. F. L Oaises Mi); Fratikliii ins. Co. r. Hamill, C. A. Md., 1 Gill. S7, 2 Heun. F. L Case.^ 5(57, I7sitors at a warehouse do not fxpect to take tlieir grain away, but to get their money at tbe market price i>n the day they demand it — and this, as tending to give ciiaracter to the transaction as a sale rather than a bailment." (So. Australiau Ins. Co. V. IJandell, L. K., 3 l". App lul.) MEASUUE OF DAMAGE. est I70:fi. AUOTIONT rfTOOK-^, " dolhi.r stores," p^wnhroJcers, branch stores, and other sirnilur imyalar stocks, <^eTteviiIly have no fixed valiios, being in almost every instance damaged, imperfect, or refuse goods purchased at low figures. Under a nuinicipal law of the City of Philadelphij), ])awn- brokers nv.iM keep an insurance jigainst fire upon their stocks to the amomit of #5,000 at least, for the security of their pledges, and Hie their policies in the mayor's otHce. 17) ; but the stipuiatiou IS not used in modern fire policies. SATES xVT AUCTION. 1707. MMieti goods are so much datruiged as to be unsalable in the ordinary mode, a fair sale at auction may be made by the insiired, after reasonable notice to the underwriters, or with tht ir knowledge, and the price at which they are sold is a proper criterion by which to estimate the damage to the insured. But, if sold without the knowledge of, or notice to the under- writers, su(;h price is not su(Jicient evidence of the value of the gooils in tht'ir damaged condition. llfivlcr^on I'. Ins. Co., 10 Rob. La. 164 ; Holfman ". Tns. Co., 1 La. Ann. 26, 2 lit'iiu. F. I. Cases .390; Angdl lud. 323. 632 PKOI'ER VICE. TJuderwriteis soiuetiines take tlatnaijed gouii.-s, l)y af^reenjent, and dispose of them at auction for cdsh " for iuicuunt of w hum it may concorn," as the most ready and equitable Tucians of arrn'mg at " pre>. Although there is no abandonment in lire insurance imderwriters somciinifs tike damaged property at G(),it, or Diarkel value, as lound, for their own l)eneHt, paying the in- sured as fur a total loss, when the mt'a.su)'(' of damogi: cannot be otherwise satisfaetorily agreed upon and the amount at stake is large. Should the pi'npe,rty eventually bring more money tliiinwii-^ paid tu the insured, they will be entitled to the whole sum as purchasers of the goods, as it is a jiavt of the general law that M'here a vendor has parted with goods at a price, he lias lost all title to accretions subseijuenily aiising out of such goods. 17 lO. Maohlvkry ; Tbe insured is entitled to recover only liie actual damage t" machinery, which may be ajtjjrox- im.itelv ascertained by estimai:ing the cost of titling nji neio machinery of similar description, and deducting therefrom the difference in value between old, mrichinery, ix t'de the tire, and the new when tilted up. (Vance v. F(jrsrer, 2 (.'rawf. \' I). 118.) "rKOlMvR VU'K." 1711. Fault i.s presumed to proceed from the thing itself, when it is of a nature to spoiler perish. "Thus dderln-Or- tioiiti, di'iiiinutiouK Mu] /os.scs. that liii))pen through tiie ' ji'oper vice ' of the thing, sliall not fall ujion the insurer." (I0U7.) hniL'i'ijjon Ins., Meredith's Ed., 312, Jli); 2 Arnould Ins. T.'iS ; Park lus. Ul ; 2 Valiu Comm. 80. MEASURE OF DAMAGE. 633 ITIIi. Phi/i^l Breakage and leakage are not to be paid for by the insurer inil"ss caused directly by the peril insured against. In the matter of breakage of bottled li(iuors, the Custom House allowaiu^e is /rw pel cent, in lieu of tale; 10 per ct. on beer) ale arid porter. 2 Arnculd Ins. 760 : Einerigoc Ins. Ml ; Wcsketl Iu8.'!2G; Story U S, C. C. 165. 1714. In marine insurance, death of animals or .s>/f//v.s — when the slave trade was permitted — from sickness, was held to be " jiroper vice," and relieved the insurer; but otherwise when they were killed. II slaves were killed or thrown over- board in a revolt, or to relieve the s^hip iu a tempest, the los.'- became one of general average. Emerigoa Ins. 313; Park laa. 23, 56(i ; Marsh. Ins. 41tf, 419; 2 Aruould lus. 761, 762. 17l>>. When property hus no fixed market value, as paint- ings, sculpture, or other articles of art or vertu (1 Brown's C'h}-. 467 ; 1 <.'o-\ Chy. 27) ; or any item of property not kept on hand for sale, but which must be made to order, the coi^t of reproduction may not always represent the value of indemnity, for an article may not be worth reproduction, as a piece of costly machinery, useless, or constructed upon false principles; or a jxitetited actvle, owned by one not interested iu the patent and who cannot lawfully use the article, (Ins. Co. V. Sennett, 37 Penn. St 205.) 17 1 0. In every case where the thing replaced is, because useless or otherwise, worth less than the cost of replacement, a deduction should be made from such cost, because the in- sured, not being compelled to expend money for a duplicate 634 MEAPUIiK OF DAMA.GK. woiilil '^aiM ill! ailvuiitiij^i' U) which no ]iviiici|ili- nf iixli'imiity wouhi ciitilli' liiiii. Il ^\ill h(^ for thr in-iiicr to sliow that the n'|>liiccil iiiticloH will In-, oi' lo'^s viilne thiiu the cost. Ill il |iiili('v nil iva{iiiig-niaoliiiU!s, ovidcin'c yiinwcil that, on nci'ouiit ol (ii't(H;t,ivo i)riiici])les, thu iimchiiics were va1iiai)l(' only us so iiiiii'h wood iiiid iron ; but thi; court iiislrucli'il tho jury tlial "tho I'osL of coiiHlniction, and l)i'forc it was ti'ioil in the tichl, Would Ihi the nit'dsiitv of dariuiijc." Tjicn .ijificul this nih'iii,' was n.'vcrscd, and it was IIki.ii: Sui'li iii'^lniotiiiii 'xa.^ crrtintMiis ; the iiirn.'iii.rf v\ ihuiiiKjc was lliut iigri-ed iipuii ill liie ]ii)lioy,to wit, ''the acluul ''nxh rN or liiinin;!'.'" W'liiit il would oo-it tu iV|p1iici' lln' in ncliiiifs iliil hdI i'iu'- nisii tilt' nilf I'di' ilie 'lamii;;cs wlncli the coiiipaiiv iimst pay to inali. Nor wttH (lie fact tiiat thf inacliiiios were const niclcil innli'r a patent of any importance ; wliai thoy ivcic worth at tiiv tunc of lh< tiro was, liy iiirrcciiifni of tho parlies, t() In- iKc iiira-ur«> ol' ihnr riiJitr, an.! tliis must hf n-< friuiut'd liy (I'stiniony, as is ih.in' in evfiy other 'lase whori' till' viilue !s not lixi'il. (.I'l'^- Co. /;. ScniiL'lt, 'M rcnn. St, 'iti.').) 1TI7. The iiu'osurf o{ diim(i(jc for lo.ss mii nmi-PlNOS is the Cist of reinstating such building as nearly a ■< ])ossif)ln lu thn same condition a.s before thi; lire, without, deduction f.ir ,uiy contiiigeiil or incidental disadvantage, sui h as do)ir(H>iati'Hi of property since th(! erection of ilie iiiiildiiiL;, or IVciu other cai.se^ wliereb}' the inlue for oocnpancy, at the time of tlic loss mioht have been reduced below the cost of ninstatement. (I. saw.) n Hall N. Y. 41.) 17I.S. r.i';TTi':KMKNTs. Such improvements t> a biiildiiiL; a.s rendei it bettei than mere re})airs, and when spociiically covered by the policy, are to lie jiaid for at pn'smt ralnr, I7I!K " Hnt'SKiini,]) |.-ii!NlTri!i':;" iiii'.hides all articles '7i onliiniiii use in the family, including a pi(i)n> or other nnHtcal instrument, scwiiuj-iiiachlhCy and similiar hoii.seholil ,i[,]M'n- dages necessary or convenient for lionsekee|iing, including also beds, liedding, and linen, when not mentioned specitically ; silver ffirks and tea and table spoons are not included in the word " plate." (Hanover Ins. (*o. v. Manuassan, 8. (.". .Ahch., ;-; ins. Law dour. 6t')8.) SCHKItULKD AKTICLE3. WcaniKj apparel iind fiimily ntori'd, boinr,' artlilcs of noii- HUiMptioii, arc, not includtMl in the; it-nn hoawkoUl /nnntii,re. 2 IV Will. Chy. :m ; » Vcsey .T^,!; 2 Kng. Law A K(i. .152; (Mary ,'. Ins. Co., H. (!. (I, Wright 228, 1 Ik-nn. F. I. (Jujih 4:V2, 1720. If()UM'hnl4 (jixkIh'': This term is iimcli ihdiv (•(iiu- pii'lii'iLsivc tliiui tlui lii.st, ami t'liihraccs overytliinf,' ('(iinn'cte.d with the liouso, as rmuitiiro, poi-soiial estati;, niovablus, chattels, eirccts, fttc. (ia»7.) 1721. /Iniisrholif furyiiture, "nsefvi and ornamental;" Whi'uthc oonditions of tlie policy do not require that paintings cn;/raviiifjf<, and artUics of vnin shall bo Hpocificaijy in.siirod svu'h artit'l(!S, if not of exoessivo vahio in thctitscdviis, or dis- projiortionate in amount to the other furnishinj^s of the iioiise, or the circumstannes of the owner, would in equity lie deemed to be covereil by the pnhVy. Articles of personal aflornnumt would not be ini'.ludt:d in this elause. (ia!>H~) and authorities cited, i^ee also Lea v. I'.oxard, App'l. of Revision of Taxes and Com. IMeas No. 2, I'hila., as to oil |)aintings beinjj; furniture. SUHICDULKD AUTICF.KS. 1722. When picfvrrs or other costli/ (U'narnental furniture ari! insured according to a vaUted catalogue or i^rhcdale, such valiu- will lit- enforced unless ((Ualified by a condition in tho policy, as it might lie contended tliat such NcJa'duIr was of the nature of a valued policy, and W(ju!d waive proof of value in case of loss. (1J«*7H.) (i.uce v. F. Ins. Co., I'. S. (J. C, N. 1). Mich,, 2 Ins. Law. .lour. A{\.\ The following form would obviate this difficulty : FOIJM OK SCHKDILE. " Ah jier scirrnrT.K lioreto attaclicJ, ami nm.lc ii juirt hereof. No loss on any arliclc tlien'in iianicHi to crved tlie {irict- llior((() iUli.xt'd." (Tin; .ic/ifihde hIiohM hr properly li- ^^ed something like the following, and ri'fcrrcil to in the policy by nunihor.) NO. ARTIOLK. PIUCK. AOUUKGATK. 636 VALUES OF INSUliAr.I-E INTEIfESTS. 1T21\. A Imp' iUiKHMit of onliimry firo insurance is upon inUM'L'sts «itlii'r than owimr.sliip of tin; i)niperty, and lht> value of such qiialitkid iut cnvst not unfrciiuonLly ht'LViuie.s a (|iu>stioii of sdiiie (liilicuUy to sulvrt (Correctly in omqh of [ma. (0»i;j.) For aiitlKtritiuH tiee tho several subjocts. ITti I. Tlie vulvi' of i\ morf(jagee, plcrhjee, or mt'chanic' a lu'}i is liniilt'tl t,<> tlie amount of the tliht for wliicli tln' lii'ti is created ; and in ease of loss, the underwriter is linble only f(tr the amount of the . Im^uity of RKDEMl'TiON : Any (uw.s'.s of raUie over incuinbraui'e is the benetii;ial interest, wdnu'e the ftwner of the equity id not liable for the indebtedness. (<»7I.) 1727. Of LKSsr.E and lfssor : In lease policies, the artuiil ral'K of rent, ami not the sum covered by the policy, is tlie nneosKre of daniiigr.. A IrtiSfe can only recover the actual value 'il the tenement for " ocrnpaHon," subject to the rent. The (|ni'stion for the jury is, "How much would a stranger, having no engagements or contracts peudini;, have given for the uni'Xpiretl lease when the fire occurred { " Neither the Jr-ssee nor l(i.-'!iiir has any interest iu the building as such. (ti77, J7-5H. Of leasehold: This class of intere,st is more valuable at the commencement than at the expiration of a lea.se. The esti'fiate ujkui a building on leaschohl property must be the value of .such a building generally, and not subject to any VALUKS 01' IN8i;iUI!l,K INTKUKISTH, 637 siicli iiicidontiil (li.'^ullvll1ltl^^;(l us the, liability to a roiiiovul tlicit'- (if aL (Ik* tc.riiiiiiatioii of tlu; Iohmi;, esiKjcially if this tli.sadvHiiluyo bo cf>iitin{j;('nl. (147!>.) 1721K Of li'inint: Tin; valuo of a lease to a tenant is tlio fUiiniml fur wliicli it cuiilii bo sold, Hiibjuct tu tbe payiuunt uf (')f teiKiitf for life, ov life 'intercut : Value is comijiitoii by tlif onliriary life-tablti.s. (OttJi.) I7!{<>« 0{ exrnttoTH, administrators, and trustees geia^rally, \h tlif full extent of tbe value of tlic property, for the use of I heir Hevenil trusts. (OSMl.) I7i{l< < >f haibies generally, hucIi as v)arehoiiserniiii, a^jents^ factors, covsir/neeH, and commission taerchayUs : 'i'liese aluuys have an interest to the value of their liens for advances, charges, coniniissions, or interest on projierty bailed ; and ihey may, vvhen holding ]iossession, insure the iin.perty to the full value, in their own names, and re(!over for loss as trustees for their several principals, unhiss specially sti}inlated against in the policy (<»iM»). (U Bennett & Smith's Eng. E(j. li. 4.) I7!IS« Oi' under irriters : ]s limited to the value oi the amount ai risk upon the property insured under his own policy. (7IH.) I7!{:i- Of the insured : Is limited to the sum he may lose under iu.-5urance in one com])any, altiiough secured by double insurance in a second company, when the conditiinis of the policies permit it. . 17:{>1* 0(" railway or steamboat companies : ( )utside of tlieir own property, is limittid to the amount they may be liable for as damages upon any particular risk insured against by them. (72».) Of jMssenger carriers : When umler lire insurance as such, is limited to their liability as common carriers for loss or damage to the baggage of passengers iu their charge. (1303.) DAMAdHS, CONSTUl'CTIVK OK COXsPiuUHNTlAL CoiKlilioii I)/ fht' finlin/.— " All hucIi iiiiniriliaff. \ohh or lUiuuxfif. mm. A I'lu'iii^li liii' niiixim tjiiii ' 'mi.iit jinij-iiiKi iii^ii ifinafn .ypi'rlii- hir " \^ ilii' mil yuveriiiii;: tlic iiiiUiliiv nt iiiMirer.«. yia in its a|i|>lioHtiiiTi the woi'iIh ' |iiM\iiiiiil(> ciiti'^f ' nrv not tu ln' iindcrHtoi'ili in ilx'ii' clnci umJ liniiirii 8t'ii>'<', ii> nit'iiiiiiiK uniy tliiU riiii>'0 wliioli imincdiiilclv jiriTciIrN und ilirtolly OCCU'^iumn" H lii-y," " fl is I'ltlcil iiiiw lluil iiisiir'TH, liiiiii iiti'ii'i' iniiriiH' iiml lii't (lolicn h, art' iidt iiMJy rc^C'iii'iiik' for Ii>.*,7, ('i,NsK(ii i:ntiai, . W'lit-ti tlif; loss, altlioiifjli uot ;i iH'ccssary, is a miliiral (■onst.'fUiciK c of the |Mril iii,siiicd against — by imlund meaning,' a usual ami imilialtli'. ('oiisc- queiiff— and siuii as il is n asoiiablc to lulitive was in I Ik; foiitcniplal i damage by water in e\tinoui>hiiig tire ; willful oi' can-- lt',-s dt'Striii linn of jiroporty by tiicna'ti or others; falliiiL; of Hot'rs or walls ; tcarim.' down bniliiings to prevent s|ireudiiiL; of liivs. (Mr., etc. (KUW-) ! I'hiliiij IiiH. (j:U, § 10!i : llillyer v. inn. Co.,3)V'nn. Si. \'i\) , Wlnle- hiirsi ' . Ins. ('n., li Jones Law N. ('. Xil; 1 Pursmi'' Ins. tWl n. ; .S( .Jilin .-. Ins. (Jo., 1 Uuur N. y. 371 i I Arnonld Ium. 7G4. IT.'IT. Or, when the jnojierty at riok is extricated from the jKiil by Mhich it jniist have been destioyed by inciuii- iiot anticipated by the jiarties, bat by which it is takiMi lYinii, and never ayaiii restored to the ]nissessioii of the insured, as ihcjt at and after rlie tire. Tliis eontingeney is now iisudlv separatly piovideJ for m a stipulilioii ol' the jiiiljcy. (IrlitU. 1771., B7J5.S. Second, ('ONSTH'CTIVE : Insurers arc net jiiil.le for (OiidmdU'e daniage.s, such as ln.^s of lime, or of pmtils from derangement of bu3iue.s.s conseqiieut upon the fire. These ll:KI(!ll[' AMI i;ii.Muii:s. 0,'}9 are too ind^'fiiiitc lui'l intuiij^'iblt! in llK'ir nutiiit's Id Im- iii;uIo Bllltjl'(itH nf Ic^'illlllUlc ilirtll 111 lice. Iii'oiiunla « I'll. mix Irn. (!ii., Noiiiion, 2 Hob. {,»,. HI; Wiljc'iii. I'oli', 1 A. A E. tiJl i :i Kiiwlf « M.iii.1. HI!'; 1 HkikIC. N. V. 651 ; i) C. C. .S. (\. W ) iJ'Jl, I7!I1K Tlu! iusiiicd ciiiiiint rocovtiV for loss oi'cnsiDTicd by jiitcii'iipti(tii III' (K'Ntnicti'Mi (if hiisiiu'SH Ciirriuil on in a hiiiMing biininl lunli'V iiisinaiici' ; iiur fur iiny <,'uin.s or itmlils which wi'i't; nionilly ('(^tiiin tn iniiic lo liini if it hint ii'iiiuinci iiii- iiijun'i| til (lute 'J.3,000 00 Freight &w\'-luinjvK, four per cent.— |TO,000 00 '^..^UO (0 Total iiii-'icliaiKlise $72,-stJU 00 640 FREIGHT AND ClUUGES. l)(>(lncti«ii-' : — Siilos ti diiU> of (ire $27.00(( 00 L.V.- piMfit. 12^ |.iM- cent.. $3,000 00--$21,n00 00 MercliaiiiiiHi! saved— worth 40.000 00 |tC4.000 (10 Ttifal less |8,H00 00 ITIti. The second method is to (li.«ieftrd all estimate of freight and ahargo^ until tlin '•aiiicunt dtjstroyed " has been ascertained, wiier. the propec allowance i.s made upon this amount. KXA.MIM.f 2 Stateiiiciit 01' los.s as Callows ; — Mercliandise per inventory, at ooat $4.'j,000 00 " pnii'Iia^eil to ilate 25,00(1 00 Total niercliaiuliHe... $70,000 00 .... $27,000 00 l>ednciioiif' : — Sale.s to ilate of tire Liss protit, 12^ percent 3,000 00 C'o.. would cost perhaps $10, and to get them to St. Josepli, Mo., would cost another ^10; would the value of >Trindf!tone.« at St. Joseph be $10 or S20? And in case of lo3,s upon winch .sum would the value be predicated ? Our oldest and soundest adjn.steis recogni.se the first method as the correct one. " '.'o'^t of traufeportatiou adds to value." i2 VaUn's Comm 147.) 1714. In the two c!\amples cited above, tlie " inerchandiso per inventory " is supposed to be at invoice value. If allow- APPRECIATION ANI> DKPREGIATION. 0^ ances have Ihhmi made ttj lyrinj:^ the merchandiHe to canh values, the frcigJif cliarges in the first example should l)e es- timated on the purchases only. And so with the salvagt; ; if sound goods, at cost or invoice vahie, then the freight sliould be added to correspond with the present value. APPRECIATION AND DEPRECIATION IN VALUES. The l)asis of tire adjnstments is present valuen, and it fre- (juenlly occurs that propeity ni:\v be worth more or less than the invoice price, in whicli evcnv tlie respective party should recei\(' the btnefit. APPRECIATION IN VALUE. 17 lo. When all, or any portion of a stock, may have in- creased in vahie subsequent to il,>, purchase, it will be sutli- ciently correct, for all equitable purposes, to add tlie ax'erage rate or amount of such appvtchdiou to the sum "found to be on hand at the time of the lire." The insured will then reap the benetit of such increase in value throughiiut the sub- sequent calculations, jiro and con, whicli he would not do if the rate were added to the .sum of the " ascertai.ied loss" only. (17 1».) DEPRECIATION IX VALUES. 17I6- Til" same general pruiriple holds good, as to the insure.ii, in u 'preclations of value from any cause, subsequent to pur. base, as in appreciation. Tlie " amount on hand at the t;;.ie of the lire,'" as found at <'ott pv'ice, is subject to m- crease or deduction, as the case may be, to bring the stock to jireaent cufih value. Depreciations in value do not affect purchases, and are not supposed to ii fleet the inventory price of stock on liaiiil at any given lime, as such inventory should be taken at the then cash value of the articles, after due alhnsiince for detei'ioration changes of fashion, etc. Th'is the balance oidy will be afti'cted. Hence, dejrreciatloufi legitimately come out of the " amount W 642 Al'l'inX'TATlON AND HKPRKCJATION. on haiifl at tlic lime of tliefire." If deducted from the "amount of tlu! aiM.'eitaiiu(l loss," it gives the insured tlu' liencfit of full valiu' on the dilleieni'i- betwecu thi> "amount on hand at the. time of the tire," ami tlu; amount tif the ascertiiiui.'d luss. in all iutcrvcnliii; calrulation.s to which he is not (•ntil.led. 11' .01 ni\cutory of "sound goods" saved from a (ire he made at 'n,n>'ii'r /'V in\ eiiti-ry, rash mvIuc ,■:' )."f,IIO() (1(1 " pnrohaseil since — cose 'J."),(HMi Od Fivifrht iind idiarges on *'-'o,(")0, at f.mr per cent I.IMMI 00 Tot 11 siuok $71,11(1(1 Ml Les.- t-ales, to A)<\ ot fi:e )ji2T.O00 (Hi Troiiis, Vl\ percent ,.,. ....... ;;,000 (10- 2J,0(KI 00 Co-^t 111' stock on hand at time ot tire $(7,(HI0 00 Adij adviinre in value-- lilils. tluur ;),(100 00 Cost and iipv jiated value a( time ut' tin (ire s^.Mi.OOO (i(i I.o.-ij- cteprecialion on suj^ar- $I,yOO 00 '• •• whisky 1,00(1 00 ••' " " general stuck 5,(100 00 7,500 00 Ca-li va'ui- of ptock at time ufrtre *1L',500 (HI In till' foregoing exauiple J'vriiiJit and charges wore esti- mated u] on the iimount of ]uirchiise8 only, S25,!it)(), as it u .supjioseil that in the inventory the casli nihtc imliulod freii;ht as jiiirl ot the cost. (43 ESTIMATIXG PliOFITS, ,Otli) 00 ,(KIU 00 ,0(10 00 ,000 (M) ,000 00 ,000 00 ,000 00 ,(MHI 00 jft* Mi ITI>i. Firofit i.s \nuAe upnii the cost of goods .sold, ii-.l upon tliH price obcairied inv thtMii, wiucli latter einhraccs both. ro.st and profit. Hence protlt i.s t) be estimaliMl only op.,n the actual c. The modus o/icr't mh of jtrrivMig at cost of mer- I'liandise, at an estimated rate per cent. >A jirojit,, wlieii only the ainunii! -^old is given, is the same as u.sed by bankers in .alcidating interest and discount. This result can be reached by eith'T of two iirecesses, which may be designated as the ali'i'ionid and the aliquot pr.H'.fs<, the firmer i,> applicalde fn „)i>, given rate of prnib ; ihe latter unly to an aliquot, or even part of one hundred. The aHijiratid j)!ocess will give the co^Y of the jjroperty direct: the aldiiuit pi'oeo.-- will .'1-o.sm ,?((/c.s', will leave $l95.i'>5a^ the prulil-, which ."uiii is exactly 15 j>er cent. ii^K)n the cwt. Phook; Multiply l,;Wia5, the cost, by 15, the rate per cent,, out nil' for ciphi'i-s, and the ic-ull will he $105. 05, the pro/it as found above. K.X.WIlM.i; ;>N]I ; Ml.SKII NIMKKR, 175JJ. Supposed sales, $2,500 ; e-^tiiimted j)rofit, 9^ per cent, Slatemciit : As 1(10 5(1; 2,500-00 : : 100. Proceed a.< in K.niw])!' l^i, iuid the re-.ilt will he $2,283,10, the cnut ; which didiicted fniin the .-.7//.., j^ives $210 00 as the iirojH being 0^ per ct,- on the cost. 1T»'5J» The inercantUe RUhR foi cstiiiiutiiig an aliqv.and part is inunli shorter : — The s\iiii of the ,v«A .s, with two cii)h(-r.'- added Cur a whole niiniher, ovt'onr for a, mixed numhcr, duiiled hy the .>.'ivon rate per cent., with lOO iulded, will give the cost direct ; whicli, deduv;le' the profits. KX.\.\liM.h; .'fun: Wlliii.K NfMllKK. IToo. Supposed sales, $1, ,)()(> ; estiniated profit, 15 per oent. Divide 1,500'00 hy 115 (the lijinres indicated for 15 per cent ) ; the result, ^1,1)04.35, 1.S the coat, ;i.s in l'>\;unple 1st Proot, the sume, E.XA.MI'I E -Iril MlXICn NTMIIKH. Iliiii. Supposed sfdes, $i,5(t0 ; es(inial<'d prolil, 12^ jter cent. ICvi.le l,6(IO-00-00 hy 112-5(1 (the li^'ures indicated for 12i per cent.), tl It. i..!:t:<':i,s, is tl si : this sum dediicteil from the salt le ■v L'lvei $l'.'>li.f)7, as tlie iirt'lil, whi di is ju.-t 12^. per cent, (i) of the rost. TJIE AIJQUUT rUOCESS. I7»'^7. Kii.K : When the estimated rate per cent, is an nliiiiid or even pan of one hundred, the proper divisor if. uhtained by dividing 100 hy the ^iveti rate, ami adding out to the product; upon ilie iianie principle an mill- ing lOOin thcftlniiioiid process, thu-: at 12} jter cent., t<- S (ec(ucvaleril to lOO jX'r cent.) represent the roxf , l-.s (e(|uivalerit to 12. .'•(•) added represents the priilil, the 0-8 being "pnvalent ICp 112.50 (co.st anJ profit) in iIk ■ilir/ii'iii aliqiiol. part tjf uih.- lniiitjr ceut : — 045 TABLE OF ALIQUOT PEtlCKNTAQE, OR i;yi Ai. r.vuTS ok tiid Percentage 1.00 l.OH 1.25 1 5tM 2.00 2.08^ 2.5'i 3 12^ 4.00 4.16J Part.s lOOth .9(1 " .80 " .04 " .r.o " .50 " A>^ " .40 " ;!2 " .80 " .25 " .24 •' Divide by 101 !)7 81 65 61 51 49 41 'M •il 2t; 25 Percentage Parts 5.00 20tli G.25 IG " d.co;} l.'i '• H.;i;ii 12 " 10.00 10 '•• 12 50 8 '' 1(5. i;*;? t) " 20.00 5" 25.00 4^' r,.sMi ;m 50.00 lialf Divide by 21 17 IG K! II 9 G 5 4 3 Pboc'KSS ; Divide the amount of aa/es by the given tigure in the table opposite the estimated rate ))er cent. ; tiie result will he tlie^jro/iifo, which ileluoted from the sales; will give the cost of the gOM.is, E.\AM1'1,K 'jTIl : Wlltll K .Ml'Mlil'-.U. i~itii, Siippo.^oil sales, $1,500 : e.-'timateil profit, 10 ptr eeiit. Divide 1,500 by 11 (the lignre indicated in the table for lO per cent.), the result, mG.3G, if the profit, which deducted from 1,500, the sales, gives l,:iG,'<.G4 as the cost. Proof : Simply div ide the coat ],y l(t, as 10 per cent i-< 1 10 of KtO. EXAMl'tE GtH : MIVKIi Nl MHKH. 1 700. Supposed sales, $2,100; e.stimated profit, lujj per cent. I)i\Mi' 2.100 by 7 (the tigure indicate i in the tal)le for Mi^ per ci'nt.), the result IS ;!00, the projif, which deducted (i-om 2,100, the sales, gives $1,800 as tlie cost. IDENTITY OF INriURED PROPEHTY. L.'H\rTi;Ls, I7<>l. Tht' ffcncnd princi/jl<;s gnverniiip in such cases arc ''that the only idinititi/ of the siibjtH^i of the insurance cuii- templati'd liy n linio ]ioli(\v upon a stock of yoocls in a store is that it ;h)iilil h, a sin, k of the same kind of goods owned by llio insured itt tliat store ; that the removal f.f one .stoik liy the insured, and ri'iihuinn; it liy aiioilicr id' the .same kiiid. does not change the suliject of insurance within the meaning (d' the poUcy," the insurance being upon inorchaiuhae \vi ich AVa,s to be usetl for tialUc, and not as property to be k.^pt unchanged. 646 IJiKNTlTV OF l.N>Ul!l'J) J'KDrKHTY. F. 1. Co. r Aimpow, 45 111. 8C, 4:) lit. 4S'J : Walton - Ins. Co., 2 Roh. La. 6fi;-i ; Schumilsch c Iuh. Co., S. C. Wis: !) Ins Liiw Jour 'n>, 00; Vosc v. Hiimil Ion Ins. Co., X> Barb. N. Y. .'iU'J ; Fliindtra Fire Ins, Co., l.st Ed., 4.!4. and Hiitlioritie.a cileil; Ins. Co. v. Mack, 4o 111. 482. 17($ti, Ati assifrnniorit liv llu- iiiciirod. uitli tlit- ('on^ent of tlt(> iiifiirer. of a |Kilii'.y "11 liiiii>pliol(i g(iO(i.-i of any lic^-Jci-iptioii, faiiiily uearin^!; a|i|iaM'l, or a .-^tock of gcocl.", cdii-iinile.M a now cciitiaci, wliiili covcis the a.-2\ 12 Me. 44, .14 //. 42 7: 7 La. Ann. 244. 2 McMuIlen S <.", ^20 ; 17 N'. V. Mil, 424. , " 1 »iti)iiiiiiion of slock hy ' ii:iily sales ' coincide?! with a dirniniiliini uf ilie ri;.'lil |.) claim dtr loss, hence relatively there is no ciian^'c in the siinniiun." (l^uarrier v- In.-. Co.s., S. C, \V. Va., ti Ins- Law Jour. ()72.) I74>!{. \ policy iipnii ii .stui k of goivl.s, wliicli i.s being constautly .'^nld aini vepUuiislR'iI, I'overs as well new jmicliasfis as stock oil ham I al diittj of tlic puUcy. But, in order that ^oods .siibsei(uently piirchusud shall become ptirt of the stock in trade covered by tlie insurance, it is not enough that other gciods are jiiinliased, but it must a|)p"!t,r tlnit fhey became a jiiut of the stock Horn which sales wore (o he made, as from the general st ick of whicli the new |)iii"i-liasrs liecame a ]iart (.Vuthoritie.s n'jyi'ii.) IT41>I> ^\'hen ;i tiadcr is deserilied by his tiude, ,iiid lus n'oc/: in (ivile is covered ni general terms, his [lolicy will not cover stock of another di'scripiiMii, should he, aftt;r the date of Ills policy, choose lo add another trade to lus business. rit»««.) ib.ward r. AVillianis, 19 Mass. 8(1; Kitrhiii '.'. :\rc- Causley, 4 IViin. St. 472.) The (|iiestion .is lo ilie iilcntl/if of gnods insured by one policy witli those insured by another jiolicy is held, in South Carolina, to be for the jury. (2 McMullen, S. C. 220.) IDENTITY OF INSURED PliOrKHTY. 647 TENANTS IN tU.UMON. ITO'"?. In an old English case, action was brfjiiglit hj vai'iipiis consignees of ceitain rottnn against, the iniilerwritera for a total loss. Thi' ship was wreLkcd, and a part of the cotton lost. The rest arrived more or less damaged. On a large nurnlier ul' ImIi-s thi; marks liad hi'come so obliti'i'atcd that it was impossible to say that any particular b;de belonged to any particular ecmsignee. The nnderwriters trruted tlie eotton wliieh arrived as a ihiriinl loss oidy; the e(jnsignees contended tliat tlie slnpouner could not deliver to each the identical bales insured, and as he was ynevenled from so doing bv the "])eril of the sea," it was a foful loss. The court held that where the mixture is accidental, owners becdnie fcaants in common in ])roportion to their resfiec- tive interests, consequently the consignees of the cotton on which the marks had become obliUu'ated could not set ujj a total losn. They must recover insurance as such owners or tenants in common. Spciiccr (', T.'nioii Mnt. Ins, Co., ciiinr; .Tones v. Mnon?. 1 Y. iV C. 3,")l ; Biickiey V. (iroi^, 11 W. R. 4(;i; 3 1!. k Istu. 57j, Emerigoii, MerediUi's Ed., :MJ-i;, 17<><». At the burning of a warcbonse in T.ondon, in which 3,636 bales of wool, valued at £70,3:>'.), were stmcd, sotue insured and some not, and for which tl)erc were .se\enty- three claimant.s, either as owners, factors, or agents. After the lire some 731 bales were identiKed by the owners by tlie marks, and removed : the bakuice of the salvage was, by common on- sent, sold, and the proceeds divided pro rata among the claim- ants, whether insured or not, as tenants In common. (Author- ities supra.) UUILDINOS. I7<»7. As the insured may, under certain contingencies incur juMilional risks Ity alterations and additions to a buibllug under insurance, it might occur that Identity might not be destroyed, yet the quality, condition, and incidents of the build- inu might be so changcul as to increase tenfolil the chances 648 MISCONDUCT. of ]()H<, wliicl), ujH)n a ju.st calculation, initjht rcasoiiiibly be expected to fall iii'nii the underwriters. (Illl.j In deciding upon the effect of any alteration in the [)roin- ises, whereby the destiription may be rendered incorrect, it is nuitiirial to consider, not only wiiether the description anmnnls to a warranty, hot also the cU'ect of the stipnlulioiis ui' the policy as tu alterations. MISCONDUCT. 17<>H. i'linililion . l»L'CT, as apjiiiinl Id iiisuiuuce Contracts, means a trans- nressiou of some cshtblli^hcil iind (h'jinife rule nf action, \\here no discretion i.s left, except that which neoes.sity may demand. Waters c. Ins. Co., V. S. S. V., 1 Benii. V. J. Citses 0.14; Ins. Co. v. Law- rence, to I'eurs U. S. S. C. 517, 518. 17<>?>. ( 'arelesK7ies8, 'iieglljrncc; and iuiskiUfuln€S,s, are transgres.sions of some estahitsked but iitdefinite rule nf aciion, where some discretion is neee.ssarily left to the actor. Questions of misconduct are questions of law. and are for the courts. Questions of race, dil'njoicc, am] skill areciuestioii.^ of fact, to be dfi'ided hy a Jury ; except wl:ere the law defines the very act to be done under Lriven circumstances; in such cases the Jury have only to deciile whether the acts required or foi bidden by the law have been done Eniengnn In.^ .Meredith's P^d. 290 ; Biinyon Fire Ins., '.'d Dd.'-'ni : Hnckin v. Ins. Co.. 11 Foster \. H 2:^8, St. John v. Ins. Co., 1 Duer \. Y. 371 ; Hynds v. In Co., K", Barb. ll!>; Gates i; Ins. Co., 1 .Seld. 469 ; CaUin w Ins. Co., 1 Sumner U. a. C. C. i::t ; .Miithews i . Ins. Co , 13 Barb. N. Y. 2?.A ; 1 riiilipa laa., § 1006, and (inlhuritierf cited T]i>)ai;h a jiolicy of insurance may protect Ji^;ainst losses through mere negligence and carelessness, yet it will not pro- tect again.st gross miscotuliui of the insured. And, if lass result therefrom, the owner of the property insured mu>,t bear the loss. (Chandler >\ Ins. Co., S. C. Mass., 3 Cush. 328.) N'RGLIGENCE. 649 ;i'lntclior II. Ins, (!o., l!» Pick. Siiiss. 421; Itia. I'o. t>. Lawrence, L' I'clfrs I'. H. 4'.'; nilling,s v. Ins. Co., 20 Gonn. 130; Nflstin r Mackintosh, 1 .StHi'k. 2:<7 ; Wat(»rj I'. In3. Co., 1 Mil.euu (J. (J. 2T.5 ; 1 Henu. F. 1. Cases til4 . Mickey V. Iii8. Co., ri. C. Iiiwu, 2 las. Law Jour. 15. . Whyro tli(! insured, mastur of a river steam boat> caiLs.-d a Imrrel of tiirpentiiie to be hrouglil tVoiii the hold to the fiirruicc, and used it to increase the iiead of .steam, wliereby the ve.ssel was set on firi' and de.stroyed, he could not recover the insurance; for under an act of Oon^'ress, turpentine must be .sciniri'd \i])oa steamboats iumetalUc safe.s, or in apartments Uncd with ok ta,l, at a .secure dintJiuce from ;my lire, and, tlierefore, in using the turpentine tlio master violated a clear and defiaitc rule of duty, wliicli Would 3ubj(!ct him to whatever los.« resulted thiU'e- from. When iho ino.f'niinlc cause of the lo.ss is one of tlie peril.s insured against, as tire, in a policy against fire, although the remote cause ^\;^s the ni'i/ligence or misrrmna(jem.cni .if the insured, liis agents or scrvancs, the underwriters are liable, if there be no fraud. NEOLIGENGE. 1770. It being one of the jirimary objects of insurance against fire to })roteet owners of property from the caniesHness of servants and agents, it is obvious that lo.sses ocmrring from mere fault or negiigeuxe, even of himself, not amounting to fraud or design, are within the policy, and recoverable from the ii urer. ■ Np^glioenoe of the insured may be .so gross and culpable, however, tluil tbi^ law will 2»'esume fraud, and the insurer will be discharged, iliougli there be no positive proof of an actual design on the part of the insured to barn the property. Wherever the acts done, or neglected to be done, are of such character as tend to show design or fraud, they are clearly admissible in defense to an action on the policy, (7tJH.) Lyon I'. Mills, .':i Efl?t. 42H ; Ripon i. Cope, 1 Camp. 434, 2 Arnoiild Ing. 767; Jnmesdn v. Itoyal Iiis. Co., 7 Ir. R. C. L. 12U, Q. B. ; Foy v. JEtaa lus. Co., 3 Allen N. H. 30. 6oO TIIRIT. Tht'i'p is nr) Tonioily iukUm' tlu> 1;iav, at prosoiit, t'lw irirelrariufifi ; hnl ijroNn neijlif/ence ui\ the pint of a purty tu wlioin iiinney wii8 [liiviililo in ciise i)f lo.sa in prosuiuptivc nt' f'liiinl ; mid if estiiMi-lii'il liy sti'inj,' pniof, wmilil pi'i'vcut, rci nvciv uiidi'r llic policy (I7««.) (I Siimiirr I'. 8.434; Auj-ell Ins. 174, 17."..) Tlu! Siipvoiim Oinirt dI iMiisHiu;lius(.'tt8 ure ol' opiiiinu Ui:il iindcrwritiM's arc not liablo fur loss hy iin.! oc/iLsioiied by lln' extrcoHi, rccl,l('.s.>', mid inexcvHaJiJc ntylii/eiu:e mI' Ilic insured, tlu! (',unsi'<|iuMU'r of wiiicli wculd liiivc liceii ]iiilp;dily (ilivioiis to him. ((Jliundk'r v. Ins. (Jo., ;i I'.cnii. V. I (.'a-'O.s L'O ) Wlit'ii 7ro.'*.s n<'(/li(/enrj' is cliargt'd us a did'ensc, ilif. bui'dcn of proof is upon tin' unil('r\vi'il('r,s, iind slinujd l)t> of the ninsl jk.sI- tivo chiiractei as Lo the ncylijcacM. (1071>.) (M Cash. Mass. 328.) THEFT. 1771. C'l II lilidii ')/'///('/))?/(.■(/.—" N'or f.u' loss liy lluMl- at, dp nfler n firi'." The s(i|)ulii,ti(in ignoring liability for lhi:ff is not foiinil as a cuiiditinii 111' tlir policy earlier than abmit .\, u. ISIKI. IT7U. The iierH'rnl priufiplcs of tlai law of Ihtfl: at and after a fire, where ihe policy is silent upon the ,siibji3ct, hiv as follows : — "■■ Tlifit !oHt) h\ jiliindor of crooils removed away from a Hre, and so put out of till' t'oiiti'ol iif ilu' insiiiuil, is treale.l in ooiiiiiioii pr.KUiiy as iliifi'//i/ hiri^liittii./ or conneqiif III lo the tin', unti covered b\' the poh(!y." (KJOli, I7;t7.. 1 Parsons Ins. 502, n. 2; 2 Arnoulil Ins. SIT; Weskett Ins. 51.'!; I Philips Ins. 3t);i. u. 3 ; May Ins., J 404. WIIKKI-: TIIK I'l.iLICV IS SIL1':NT. 1T7J$. Insiirc'rs are liable for lo.ss of goods stolen '?«/'/;;(/ the tire, flicre heimj no exceptions in. tin [loiii;/ itiidinxt IhcfL (I7;«7.) 1771. The liability of insureds for loss bv tli^'ff is not restricted to the preci.si: period wlieii th(i fire was extinguished ; the prcicise time when the fheft occnrs is not iinjtorlaiil, if it be occasioned directly l)y the fire. TIIKI'T. G51 1775. Iiistivcrfl aro liable fov loas by fhfi consoqiiriit. iiiioii tlic cai't'lul ri^irioval ut' insured f,'(,uil8 by tin; iii.sui'ainit! watch fiuiii a bniiiiti;^ hiiilding, wluirciii Micy must liavu ()lliervvi.si.) been buiMx.'d, it Ix-ing " u biss or daiuaj^'o by fiio." Agncw (). Ins. Oo., .H I'liilH II, 193 ; 'W I't'iiii- St O'l. revt'Miri(j \\\v furo/ning iiii'iK • VVhilt'liiirsl ('. FftyeUevillo Mut. Ins. Co., <1 Jones Liiw N. (), 'AWi , Stiinley (1. Wiytf-ru Intt. (Jo, a \j. |{.,'.i E.\cli.,71 , Thompsun v. Munlrcal Ins Co., ') I'. C Q. 11, ,11'.' ; Lewis (1, .S|iiiiifr|i,.|(| F. .V M. 1 Co., Ht Omy Ma-is. l..;t ; VVitlicri-ll ».. Maine Ins. Co., 19 Mu. '.iOO ; Tilton I). Hamilton Fire fns. (Jo., 1 Hoiw N. Y. ;'i77 ; q mlified by It (lowanl, N. Y . V,. A., lit'..!, inhii ; M('(iibbon iv t,^iic(n Ins. Co., lOL. (!. J. m ; Vfwni.uk v. L, A L. Hi G. Ins. Co., 30 Mo. 100 ; Majfuuri r lua Co , 1 Story U. H, C. (;. loT. 1770. WliiM't' the ])(ili(-y luadcs it tiio (lii(-y of tin' insured " to u.Ht^ bi.s bf.-it oudeavors ior saving and |ii'(!.s(irving tlio pruiiorty " : — IIki.u: " Tlm( goini.^ lo«l. or stoli'n in tin" oonr^p of removal (in acconlnnce Willi the pruviwi ni^ of the ixilicy) from u IniiKliiig tii;liialiy on lift' was a lo.ss within the tcrrii.s of the policy." (17Jt7.i Fernaudez i. Ins. Co., 17 La. i\nn. IHl ; WeVib d. In.?, ('o., 14 Mo- 3. LI.MUIJTY UNDER THE CLAUBR. 1777. On tlu! titlicr band. \vb(irc a ]iolicv providod iii/nind I'liiI'llU'i) for loss liji thifi , and also rei^uired tlu; iiksukmI to '• uso all dili'^onii', in removal and pnwi^rvation of the propni'ty," iindct p'niilty of voiding the policy, in ca.si: >)f faihue so to do. .;Iv >hifl, alihouL'h ocoasiouod by tin' removal of (lie goiHi.s in ooniphunce with ^u^h last cilaiise." (VVelib n. Protection In.s. (^o., 14 Mo. 3.) 1 Philips Ins. tl35, n. .3 : 1 I'arsons In?. ,0t)2 n. I77.S. Tli(> lollowing comlitiou i.s found in some policies : — "If claim be maile li.>r los.-i of property •^'^'/'';' at a lire, the statemnitof fucli ki.-is shall in all ca.ses contain a sptcilic ilescription ami valuation of each article stolen, ac( ompanicc] by the atlidavit of the clainiaiit or claimant.^ IMAGE EVALUATION TEST TARGET (MT-3) 1° 1.0 1.1 1.25 ."" 1132 1^ IM IIIM 12.0 1-4 IIIIII.6 ^ % <9: <^ j^ # .^ c^ ^>. Photographic Sciences Corporation 23 WtST MAIN STREET WEBSTER, NY 14580 (716) 872-4503 ,\ ^V €^ •1? V ^U^ C^ <* A. i i t 652 SALVAGE. that the property flo idontifiod was stolen at the time and in consequence of siuli tiro : riorsliall the company be liahle for any lo-« for property .*i/o/e/t> exoi»fit siiL'l) ai sliall be ''u iiloiitififd, valiu-d ami viTifuMl." It would be (lirticiill at any time, to tell just wluit portions of the missing property were stolen and what burned, under the above stipulation. SALVAGE. 1T70. Sahug|)orty is ilaiiuiged tlieii>-iirt'iJ "liftll fori li with t:fiust' it tu be put in unler, assort iii)» uii.| ftrninjijiiig the various articlpa accordiiii; lo their kiiidn, sepuralinf; the diinmj^pj from (he uii'liiinaged, and shall caiiBe an inventory lu he inade, and fiiruished to the (•oinpan}' of the whole, naming the (piantity, ijuality, and cost of each ariicie." I7M1* In ease of loss on stocks of goods by fire, where the amount of danuige claimed may render a formal upt)raise- mcnt necessary or desirable, the stock should be ))ut in as g()(jd order and condition, as possible by the clauitanl ; or, iu case of his refusal or neglect, by the local agent, or some competent person emjjloyed by him (act in (j fur and on nccoxiut of whom it may con-cern), without unnecessary delay, by hand- ling, spreading, drying, re-folding and re-arranging ; for which purjMPse such local agent or adjuster is entillcd to free access to anv ]>roporty covered \jy policies of any companies he may represent, under which claims for loss or damage may bave been made. Should the claimant object to, or in any way obstruct the actress of tlie agent to such property, for such declared purpose, he will do so at his own peril. The agiait shoidil at once ailvise his company of the facts and await instructions. (I»5T1.) I7.H.1' The refusal of the insured to let the underwriters exaniine articles alleged to be damaged, so that they may re- place them with others according to a provision of the jwjlicy if they so elect, is a ground from which the jury may nuike an inference as to the claim for loss being fraudident. (I."I7»1.) 17.S0. The nature of the insurance contract gives the light to enter for the juirpose of ascertaining the damage, and, when necessary, to retain possession for a reason able time. A fornhle entry is not justifiahle, however. (Bunyon Ins., 2nd Ed., 121.) 651 APPRAISAL OF DAMAiiEK G00I3S. I7.S7. .All of the stock shouKl be assorted, countiHl, weiaht-d. or mcasiircil, us tlic ciise may reiniirc, iiiiil llie sainnl i>oi'tion only duly invoiced at the actual C(i4t valiw. All th.it may be dainai,'('d slionld he .selectcMJ ready fur suhniis.siuii to upimiiMMs, and enii red upon the aiipraiser's blanks usually furaislu/d by th(! coni|iiiny. I7.H,S. When daniasje to the stock is out partial, and few i>r none ipftiii' j,r,„,,|g ixw totally dcfjti'uyed, it wdl be only necessary to tiike liif tltdiKigeil stock into consideration. I7.S!I. Ooo'tfi duiiiitritil hi/ removal onhj shoukl be ciiU'red and iipprai.sed separately as rciiuiied by the p ibcy. ( Hl.HO.j I7»0. GooJs "hel. 17!M. S't ri'i)fi//)< jilut'-; (fi'iiri i,i/y n/um t itho'/iaplii stonCH, steel iUiil eo[>i'>> to tiirnfii or (hirli/ jier eent, b)r each edition, iiccordin^ to aL;e aiiil the number jiiinted. With liOuxjeaiiliir dr'tieiniis, alter a ceiiaui number of imiiiessions, the value is only in the stone ; and that becomes less valuaiile by weight, as it decreases in thick- ness, havinu; no value when it becomes too thin to bear (he pressure of the jiress. Tlu: sanu! yeueial rule liii|d.s gdoJ \u\ steel ami copper [tlates y niakiiig sucli si^tilciiu'Uts, wlicii tin; insured niiiy Ik; ilispuscd lo act i'dirly uii I iiniioiiil)ly in tlie prenusivs, without tlu; iHliT\en- tiou ">f apjiiMisors, by wlinin, even willi tliit l)i'.st intent ion.s, sniiill ((Hscs iUe aininst iuvariiilily hnu'ely jiu,L,'nient(Ml, UiK Esp'i-iiil I'ffoit sIkiiiIiI h<> iittulc. to itssDii flif iti'hi.'i of Ions I, eutci fhi'.tii up in a mmnur to coi'iesiion>l, itN n<'ityi i)f the policies. Tliis will save niucii lime and Lrniible and avoid disputes in ti>e linal adjustment. (I.St>7.) M A C }1 1 X E U Y FIXKIt AND Mi>\ Mil 17!>3. In the, npitrai.seni.Mit of mil! jjvop -rty, .■^ueh as ntjiclu- 1/ t'/iijini', huih 1^, ti.>'tiircff,:i\id the like, the estimate for ordi- iiy. ncri, narv depreeiatinn rani.;os liom '•■/* to fifteen ]ier cent, am lUa from use nlon J)u and e and a'tc'i'ia tlie more ai^ed the more rapid the depreciation. t.' aliowatioe should likewi.se be nmU' for as^e I condition. Th". option to rrinKfatr miirhiurr;/ when il< stroved, is u reservation for the, lienetit of the underwriters : thev niav adopt it or imt. But, in cases of reinstateinent, the mdiicif diffi'i-i-iirr liefweeii new and improve.l, and old, depre(Mal''d and .supei'^iMJed niirhinery should lie distinctly bornt [voml. Asaur. Co., C. & I). 118, 2 Benn. F. Ins. dues 11 Mttct' Mass. 19.", H.i(riniin v. Ins. Co., 1 Lh. Ann. 210; BuL-li:ui*ii (, Ins Co., -4 Iiis. Law Jour 4i; ITfM. (Ireat diversity of opinion prevails among iinder- wntns as to what constitutes " iniichhierif," and its subdivisions tixcfl lul nil If I, ilde,'' as coinniniily written in the jmliey. The following delinitious will aid in solving this prolihrn. and enable the adjuster to act wittingly iu his discriminations iu cases of loss. mi 656 MVCIIINKKV. I71I>V A hnirliiiie may \m (lesrrilx'ii as a stnicturo more or less cniiijilcx, hiiviiij.' divL-rs jart^ coiiibinwi, fur tin; jniifKiMi' of modifying force, wciglit, ami motion, more coJriphfx than a mere tool or iinjiU'iiU'iit. As treateii liy tlie patent, laws, tlie term "machine" iiieliides every meclianieal deviee, or eomliinati.in of nu'cliaiiical jiowcrsatiil devices, to jjtirfurm some function and profbuv a certain cHect or result. Miivlnncry, in its strict acceiitation, signifu s any combination or modilicalit)n oi' lln- will-known meclianieal powers wliich may jkisscss the rccinisites of Jorve, inotiun, or xveujhf, either separately or combineil. It may l»e either Ji.i:ed or inovuhle. It is usually o])('riited by ))owcr, as distin,i,'iiishcd from miuiiial ojicrations. 1:-) How U.S. 2*>' , 17 Johns. .V. V. I Hi, I'.'i; Con.i. €,?., 67: 11 Vt. 4:i3; 20 Wen.l. .V.Y. tiai;; 40.\Io. tii 10 Harl). N.Y. 151, r.eil)Mistein r. fin. Co., 45 111. .if, 1, ;;0.") ; Kiiinkliii F. i. Uo. f. Brook, .'i' Ponn. St. 74 , 4 lii.s. I^iiw Jour. 4.">7 ; Seaverv ('. Ins. the hu'ddinij, and would naturally pass with the njally nndd n moitgiige or sale, though oountfr-shaftiug, juiUeys and liaiiH;,irs are n.A usually considered i\A fufd machiiieiy. •A Eiist. fi.''>; 2 id. 215; 'i. Kent. Cunim. -130, 7 Blcck. liui. 400 ; 3 Mason D.IS. U. C. 347. 171*7. MovAHLR M.^CHiXKiiY iucludcis all such as may he readily moved, as looms, lathes, and single machine.- ^encially; and in sonu; sections all counter-sluifliug, with ilu puilcvs and hail gel s. Wiu^lowr. U\i. Co., 4 Met. Mass. 30*5, I Ohio St, N, S. .^)ll; 4 .Allen Wa-h. 114, liij>; 11 v/. litl, l.W , (11 .v. Y 2(> ; Buchanan i. Ina. Co., N. Y. V A., ij' N. y. 2ij, 4 In.s. Law .Jour. ir)V. I7!*>i. Tools, [MrLEMp;NTs .^ni> utensils are instruments used in the inanual arts, to facilitate labor, as distinguished fiom ■tiicwhineru, which is operated by power. Interchangeable ])IK.^, as in tin-cutting machines, are jiarts of the machine with which they are to lie used, and are included in the policy cover- le machine. ing 171MK Stk.vm-kngine, hdilkr, and their " conxkctiovr/' uie held by usage to embrace the engine complete, including MACHINEUY. 657 h'('(l-[(inii)i, iKiiitiT, I'scape-iiijie, lly-whi;t'l, luul liaiid-wlnt'l ilmt ■nut liiiinl), tlie lioiltiP, j^ratt'-J)ars, btian-rs, .stcam-jiipt', to eiigiiit', lildW-j.ipt', ti't''ihi\ aru ^univalent to ctinDeedons as alrradv uxiilaincd. As writtoji in many pulirios, they rirp aliont .■([iiivalfnt to " tfcefrro," and (|uitf as dcfiniii'. It M>i'd in iIr., piilicy, tlicy slioiild hi' ivstricti'd to the niarlnncry tu wlneh such " fixtan'fi," etc., directly ap[i<.-Main, a^* " >tt!aui-lieatiny apparatus and tixtu rat." " SliAKTiNti " necessarily includes tlie r;ow/»/('/( and lui.nrjevs. \\\w\'^ not expressed, hut wou'd imt includr tiie Imltiiiff, whiiii i^ always covered specifically, (except wlit;n loriiun;4a <'oi)iponenL pari mI' u machine. I.HOI. " Mii.L SUlM'LlF.s. " This term dinars from "stork snpj>hi's," wilii whicii it is not nnfreiiuently confonnded, in that it includes oidy such materials for substitution and ivpairs as may l)e requisite in niaintainiui,' the mill in runuin^j; dnlci'; wlnlc "s*ock Hnpplies" covrr only artiides nciidful in the opevati'in of th(! juill or working materials. (tJtJ.H.S.) I.S02. FoUNDHV PATTERNS, or mod(ds ill UK'tal >ir uood, for rc)'io(iiiction of parts of machinery or other objects. They aie also, sometimes, called " Tcwnhfi^," which is more convctlv applied to a mold used by bricklayers and iuasons, by whieh their work is cut, also by millwrigiits, for a ]»attern to cut teeth by. They are treated in adjustments as of two kinils ; thosi in ifallti line, such as stove-patlorns, or of machinery numufacured for sale — and those nm viiUie tlu;m ut high tigiiifs whmi ehiitiiii)u tor losses iijoii ilifiii. They ^hoiiM he iliily schchih-d wluMi wiiUoii iilioii, as al'lt r loss their value would lie dinidilt lo aseert.iiii , tliey .sillier joatci'ially lniiii wet! my iir djiinjiiiij.; wluii nuule tit' Wood, in swelliiiL;, stavting of the glue, tluis deslroyiiig their exaetness licxcjnl lesluratiou. Lovi-wtll /■. \\\i Co., S. J. (J. .M«8.s., I87H. 7 Ins. I.»w .luiir. (i72. AlM'llAhSKlJS. IHOti. Ciiiiilitiun of i/ic I'olii'i/.—*' I'lic .iiiKiiiiit ul .-oiui'l Milinuiiil dt (iuiiiiigc ."liftl! tliiMi b»' ii.ici'rtuiiiiil liv iippriiiMil nl' oacii uiiuli' \>\ (:iiii)|H>t(>iit jxT'-i'ii'- (nm iiiicioicd in (liP ju.-s u.-< cu'diiors ur olliciwi-r, nor icIiiIimI io th»' UHi'iiri'il or .■•iillcrtr-'), in In.' iimiiialiy aiiiKiiiiirij hy tlic iim-iiiviI hi. I liic Coiii)4iriv ; tli"iv M'iMiit, ill \^ riliiij.', lo hf luiidc nuclei milli Ixttirc luiy inu- jrif^ii'iilf' or (itiitT |iio|)i'rly ioiiimi.'-MiMicii pcixuii : mn' Imll' (if liic ii|iprui.-tr'!J Iff." U< 111' jilllil hy lllc ar^-IUul."' i^OI. llif geiieial iriiii i)ile.s of law relative lo aj/jirai.sil are thfi •'^atiie as i'i>r iiibil ration (f|. v), of whieli this is one hniii. ( IHKii.; ,\).].iai»al> aie Hot tiiial as lliey ale held tu " oii.-,l " tlhCouits li^. Ill their jiin^diclioii. i^nh'C ('. Iii.i. Co.. 44 Mo. :i3» ; .Scolt t J*l,<'iiix liii* Co.. I Slimit 1.. (' |,-)2. MiK li dillieiilty helweeii tlie ili?>ilied and adju,-.ltis has hceii caused liy the igiioiauce ul aji/wnificr,'^ a-> to the ■•^pcciji)- duty they were Selected to jieitVinu ; luMice, they should he I'urui.^hed with ail inventory ol the jiioj/erty snhniilted to them h»r u]'- praisenient, ami made to eom[)rehend thai their duty ia cditii iml i>olni| aii\, through its agent or adjuster , and in ease of failure to agree, tlie two so cliosen .select a third as iiui]iire or " over.>iman." I'hey are all sWorn to the impartial |iertoriManee of their iliity ; and are ]>aid iiy the in.sured and company equally. They l^houkl be praetieat l.iusine.ss men; of good moral repute, and well Al'I'l; VIPKKS. r.59 iirquiiiiiti'd witli tin' ciinviit values of the iirtii'lcs .siiliiiiittctl tolliiMii; ami i\< \.\u'\va/)i>ni.is<:iiii'iit ix hitinihil to In' fiiml an io the measii I'l' of (hniuiifp {<> \\v \t\n])i'v\y iiiipraisi'il, they iini t'X|iectO(l to discliari,'*' their iliities in a cniiseietiti'Mf ainl iiiipurtial tiiati i-v, 'I'hey iiiivy usccrtaiii the (liiiiaee in any way they tliiii.> ]ao|K'i, I)i' Orool r. Ins. Co., J |{4)l>. \ V .'i04 ; r.riiik r' In.*. To., .^ /•/. ti"i| ; Hhria; >: Irm. (\).N. Y. U. A., 15 I 13. l.rtW Jour. :il: ; lit-i-il c. Waahiugion 1". I. (.'o.,!S. J. C. iliiss., last. Much (le|)i!n(is iijion tlio iivoper selootinii of an (ijijtniiser mi beliaH'of' the eoiii|Miiy, and tin jiaiiw shuuUl he .s|.ai('(l t. The appriiisenient of damage, to hi; satisfactory, should lie in det dl ; that is, upon each separate aiticle, when siniimistii, slimiid Miicli (jL'oiir, as has livniuMiily l»i'<'n llic case linvtoldn' ;iiiil will lie l'nH)iH!iitI\ iH'rcat'tn-, iiritil liuiiiaii iiulim rliaiigfs. W tdf pcr.si.stt'Ul i^lloii is in nu; by tlic in.siiri:(l, oi clinHi'n aii[iraisi'i', in nndor-cstiniati- his (lainaf^'ctl stork, fm liic imrjxtso of t!nlar<4in}» Ins loss t'laini, tin.' nj^'t'iil or adjiistcr sliniild at mice lake such t^noils at the aji]iiaisal l"i the liei.elil nl ih,,' coiujtany. I.SOIk. The folliiwiny decision t'ndiracirs several inijiortant jMiiuls oonniu'.tcil with tho selection of apjiraisors. A 1 oss ucciii'nh<' H. ai 1 ayeid (if llio iiisiiiinf' coTnimiiv, reipiestcd Olio K. (not lIk; insured) to select some jiei'sui IS !■ Diake the apjifaisal for carii party, \vhereii|Min IJ. and I' wcnv selected; and theieuimn II. (the agtMit) with li and I', iniide an estimate ni wiitiuv,' ol sUch in>.s, which was si^ueti li\ ana mh all witimiii the sanction of S. tho insured Hmj 'I'liis wa-i not 111) iiwiird uihIit llu'|Hilicv, tlie piDof sliowiti;; il Mai;li arliilriiioi'N wi'i'f nut .-eU'cti'tniv thi (lartK'.-i ; thai liicy wi-rc iioi ' i|,>- Ujicrc.-fted.' as H. wa'< ilieajrciit of tlie cuiiipany, aipi ili it 1' wn» ii and tliat liciiig -i).'iifd liy aii ' iiacic-ted party iMbtu'd ii nl all silaiiiy. N'lir would a tender of liif Mini llni- i-.stinial<'d to lie due lo Si llie iii-iired, aniuiint to an iti-cm-il and .i'ili' (7 <(/. c W, Ma-y. Ins. C. I 2") Aj;r.iTi:ATH)X. IMK). ('(in( or ilaiii(ii/>, Imt shall not decide llio liability of llie company under this fiulioy."' (74-H.) i Valin Coniiii. U, I'li ; Wcskett Ins. -M ; 1 Diier Ins. U\ ; Eineriaon liis ■J7R ; 1 I'liili|.t< Ins. ->r>, § :''« ; Boston \V. )'. Co. -• Gray, ti Metct. .M«5.s I.U, Waid I M. reh. Hank, 7 Metcf. .Muss. IS. I.HI I. The coiuhtions (if all jiolicies provide for the icfer- ♦•nee y omcIi |i,irt y iiiul those thus sclecttid chtxtsti an uin|iir(' bs i. Ills' ("o. "'0 Me 421 ; Sit'plioii.son c. [iia Co.,."pl Me 70; Sditi c. A very, I) Ho. I.nrils I'hsm S17 . Kftiliuni r. \i\s (Jo., 1 .Mlrii N. I'.., i limn V. I. ('nous 7'li ; Mml of Mi-yboroHffl) ('. Hiiwcr, 7 Kbhv. \!i'i ; Tlmnip.soii m. .Vluiitreal Ins. Co., •■ '', I', y. 15. .ir.i; ;< iifnn I'. I. Cases '.''.i ; M»iy Ins. ,^;i4. I.HI^. Parties may make it n condition precedent to bringiiiL; an action, that (h(! ihiidh nf, fime of piii/uK'n.t, nr miif oih'V )nes ni>f tjoto flw rnof of the offlon. slmll be settled by arbitration. The insured may, nevtulhele.s.s, bring suit for h>ss withicu ottering suih reference. Scoti /•. Ins I'd, I Slimrl L. ('. A|i l.^i, I I'.iiiu f' I. (Jii.^ci IIH; Goldsioue ft '.il. r. Usboru, i Curi. * I'liyne .'>.')(•, 1 I'.imui. F. I. Cases IJ'J. The remedy at hiw for llie l)reacli of tlii> condition, how- ever, woidd lie very precarious, fur it would be ditlicult for a jury til estimate damages occasi(jned to oiu' ]iarty b\ the re- fusal of tht! other to sub.stilute au arl)itration for tlic ordinary legal tribunals. I.SIit. Where the payment of a claim i,« contested by tlie iii'^urer without first seeking to avail himself of the right given bv the condition or agreement to refer to arbitrators, he will be (MPiisiilen.'d as having waived such right to refer. Hills (.. Hollistcr, 1 Wilson l'Jt> : lug. Co. >•. SU'i^er, «. (.'. III., i:i Ins. l-aw .Jour. ■'6; Mooney v. Ins. Co., S. C. Mich., IHSO : Wright c. Ins. <;o., F'cnu.f<. C. 1^85 ; Menu V. Ins. Co., 'ill P. F. 8. I'a. 47S ; Farnivalle v. Combes, ,'i Mann, .t G. 736 i Ins. Co. V. Morse, 20 Wull. tJ. H. 445. ■i^i^ir^ 6(12 \H\M>nNMKNr, IHI I. J ti Ill/I'll twiif to it'tt r to ai'Mttiitxi's, witlutiit, hiicIi i(>ltii'«*ncts cuiitiot 'iii.si tli<- coiirl ; hut if tlioiv hlmll Iiii\(' hccii niiv Hiiili iitt'niK'c, ni iiiiy .siicli was |>('ii(liii>,' it iiii^^lil Iw a ThompiJoii I'. t'Imnu'ck, N Term It. 13;» ; Stn-i't u. [{i|(liv, li Vch x7.') , MiU'lK-ll r. KHrriK, 3 Vei. 120 j I Iti'itii K I. CnHfn I M. uiiil ilio vxteiiil)!il iiutui iinU lllltlKirilK'J tllPIi' M|ipJ'n(|r'l IWi.1. Wliilf tlic fitiirts cannnt lu" oiisd'il (.f tlicir jnris- diitinii iiy any rcli'H'iii'c in arliitriUmi, lu'itln r can liny cnia- pel )iurtii's ti) .siiliiiiil In u it'ft'n'iiLV iliniii;,' tlui ihm^mcsh (•! a stilt, ulifii out' of the parties Iiuh ({('(.liiuid to HiiUiuit to suili nil»itmtiot]. l;ii|ii Loii.lon, I K\\. fi Kil., y. H, xi:^ All iwaiil lit fO'/i/7c(t/o/'.N', tinder a siihinission ainl |ia\iiit'iit nf till' aiiiniini awariit'il, will lu; liiixliii;^' in iv>|i('i'l l<> a claiiii I'm iosM, its ill (M.s(! lit' other claims : ami tlio I'liiuts will len liiM. h.iw .loiii'. hr)8, iiiiil ciisi's (MIoiI; t'.S. I iiobesoii, 11 Peicisl' S. ii;i ; .Mclimt'dH r. West, A«r.0; «. c. 6 U. C. I' l{. -M:'; (! ('. L. J,,,V. S., •.'!•.! , Ind. Oo. ti.CorbeU, U 8. C. U. Ti. tHtH. It will he noted that the |i(iwcrs of tho nrhlfralinf' are limited hy this sti|iiilalioii to thi' mnonnt nf/timidf ilituKii/t' t'lih/. \iy the (ilaiise a.s e,ontaiii(!d in the early |Milii'ie~t tlie jHAvers of arliiltatois were nut thus liiniii'd, Imt the wlidle siib- jt'Ct-iiiatter (if ttu claim was lell npuii fur tlicii cmisidciatioii ; and they fin i licr decided us to Imw the e.\|ieiises of arliitiatimi slpiiild he )'aid, a point upon whieji tiie present coiiditinn is ISlll'Ilt. Ar.ANDdXMI'XT. 1S17. ('iiii'liUiin. ijf tin. jxiliii/. — " Tliei'c can lie no aliiiiuJoiiiiifiit to lli eiii|.iii,\ iif ilic ).n'pfity iii-ui'i'il." ■J MiiK'tiis' EjsHy^. 5§ 111";, 14IS ; 2 Viilin (Jonim. 108, 117, I-IM; KnicritM ns. xxa, n. I.c (Jiiiiloii, Oil. 7, Art. 1; VVcski'tt Ins. 1, 2 Piir«(.n.s I Hi. Ill ; Miiish. Iii.^. -IHS; 2 Pliilips Ina. 1\:>; 2 Arnoultl Ids. !)!)0 ; Ulol..! Ins Co. I!. SliL-rlin^k. IS. C. Oliio, 4 Ins. Iiaw .Jour .I'J'J. ARWPONMENT. «03 |H|.H. AtMiitilint iii'iit y>f l\\'' ri'tiiiiiiiit* aft»'r a 1.," lie //ik// ro- 1iii<|tii.sh aiul IraiiHlri tn tin; uii licy ami cliimi a-< fur a total luss ; hut it is otlifrwisc ill lin- iiisiiraiioii, iiinl tiiiii' (iiii li' im iiliaiKluiniioilt wliri'c till- ri;:lil of iiMiistuti'tiii'lit t'Xr^ls ,iH iii llii> 111 iiili.ict. Civil ('mil' li. ('., M 2.'WH, aSMl; (Jlark<' In*, .i.!.'! ft fi/., fur l^Hiiadiuti i-rtnei. Till) /rr»/* " aliiiiKliiinni'iit," tli(iii;,'li not used in lii''' |i(ilu'itM, ncvcrtlirlt's.H tli<' jiri iir'i jih is iiiipiiciililc to tlu'iii in tlic fnnii nt' tfuhrccfdt'niii. (I.HTI.) 'Ility (lilVei i'mm luariiio coiilnict"! in tliat tlu' ^ofwls c'ovcvfi! •\u- iiini«i I'lo iinnnHliatii cnntinl of tlio iii-iinvil ; ainl, i1imM'_;1i in a iiioic (ij l.'.ss ilaiiia;;iMl (.iiiilii imi nrn sLill iiiiniiirtinii;ihf jaice, tu In- as(!fiiaiiit!tl i>y a]'|iiai-^riii('iit or l>y sale a' .in'tiiiii, wliil' laariiir *al\a^c id rciiiiitf, hfydiid tin* CDiiti'ul of llic ir t'lil, IS|!». Till' iciiiis nC the tire in- iraiicc roiitract Ciintou)|ilato imlriiiiiily tn ilic iii.siiii'U, nii'l ii)tlii'i" iih>H'; lln-y do not .uii. tt'iii|ilatf, in t'Vi'Ml ol' (iaiiiaj;i', the inirclia.'^i' of tin; stock liy tlio iiisiiiir at its nilin on tlie day of tin; firt>, as woiilil in.-, llir itasy it (ihii iiilmni'i lit wt.'i'H ac.'.t'i»tnd. |i i.s oiic tiling to iiideiniufy tlic iiisuri'ij foi in.jiiiy ailnally su luiiitd, and i|iiilt' aiioiliri- i(j lif ((iiiipidlfd In liiconm tlic iiiiicliasiT 'if a lai'U'' ainoiint of dainai'od iiicivliandisi'. An Kiii'lisli writer of note liis ,siid : — " I'lio iiMi'i'i)il III c'liivcrt insiimii :t' (M|ii|iiiiiiO"-' iiiU> *|«'('uliitoi's in pm- liiii'e, Willi nil tilt' ilifii'lviuiiiige of furci'il «nlt'h tiiid ihhiiI'IIiimI liuvi-r-, nmi'' surelv iii'Vfr f'ii;j;i;i'.'«ifil, imu'li It-.-s Miiitlujiifii, liy itnv fn'r It'gal cuiiHiriictiun iif tl'i' tcniis t)l ill |i(ilit:y. Jii iiiiy t:ii-i', it in ii risk nut foiiti'iiijdaled tiy lilt' rtssunr.'-, mill i'" cue for wincli u tiiiiiiir rati- of jin iniiim litis yi'l tt> be ini|iiii'<'ii for aiiil loiin.l. If ijio |xiiicy in not only lo take tiie ri«k of iiaina)K'n l.y lire, luit also tin' i liiiiict'H tif falliii'; iiiurkoti ami fori!eii siile-i, tlioiv iiiii«i III' i|iioii'il 11 ]iii'-iiiiiiilily tiiit'ijiiaU' raU' ul |ireiniiiiii liy llio«i' who aiv williiij^ t(i finliark in llie i'X|»-riiiu'ntal buHini'SH. li in .-iimply tlie iiiKiirani.'c of lilt ix'ImiiiliHc frtmi llie ritks of lire -/i/h.v iIu» riNk» aiiii rijjryiiiig.s of inarkots." |H:£0. Tliei'i" lii'ino no (ihtindioi irwitt of tlaniai,'i'd |ir(i]icrty to tlif iinderwiittT in liiv insurance, it ivniaius tiii3 iiropt'ity of thu iusui-'id ttftt'i. us bofijr*; the lire, and is at his risk, to bo CAM SOBHOGATION. luken can; of at his lixpense. It may be disposed of by him a(« siidii as il luiri been satisfactorily invoiced and itroinsrly uiipraiseil. Oil the other hand, tlie underwriter e^iiinoL comjjel tlie injured to hand the property over t(j him, except in casi's of evident nndervalwation in i\w ajipraisernotit, wlmn llie insurer is at blierty to take all or any of the stock at its a])i)raised vabia- tii.m, Companies sometimes take the (/aiaaged r/oodsylty a,i,'reernent with the insured, ami dispose, of them at aiuxion /or cdKh, for anil oil 'UCiinnt. of ii'Juiii) il mai/ cc/K^cru, a.s being tlie most ready and tijuitable means of at riving' at the jirrHoU value of thr No.iit ; ])\i[ .idinul ijonils art! never so taken, as the insurer has neither ownership iinr ititerest in tliem Ifyoiid the ascer- tained value in the udjusuin.nt. (IT07.j 8l!i;R0(,ATI(»f. I.S^I. In cases of Ikss to any pi()|u'rty under insurance where the insured may at tlie same time have or hold any in- terest, claim, mortga;^'.*, nr other securities as collateral ; or wluM'e the insured, from the circumstauces of the; lo^s, may be vested at common law with riglits of recovery from other ])arties, then the iu-^iinr is entitled to lie .s"/)/'ijf/a7«^(/ to all such interest, claim, mortgage, or nthor securities or rii^hls of r(>covi'ry of IIk; insured, to an amnnnl equal to that paid for loss under the contract of insurance; and the insured (^atniot, by the execution of any release, after such Hiihrnf/itlliin, disi'harge any of the liabilities thus subrogated, which he, h ilds, and can only recover upon, a> thctru,-tee (if the iiisuiers, to tile extent of tic (daim thus sub- rogated. (7<»;*.) 2 I'liilipK liis 2S:' ; Angcll Tiia. 118; .Kiim Ins. Co. v. Tylci , iH Wend V. Y. 3S5 , Griirle r. lii.^. <"o., s Johns .V, V. 24f) ; llobert v. Ins. Co., 17 Wend. V. Y. (ilU ; 1 Bi-nn. F. i. Cmes GOO; .May rn.s. 55.5, el seg. ; Fire Ins Co. n. R R. Co., C (Jrecn, N. ,r. (21 (;ii.v.)lii7; SpringtieM F. .t M. ins. Co. i: Allen, i:! N. V. .'isr) , [...wei Canaila Civil Code, § jriSl. IH'Jiii. " it i,^ oil ihi-* priiii i|p!i? llial the 1 'if{r\m) of a/iinnlonment.tu ui!u\uv insurance, rc'^t.'.i. (1H17.) 'i'lic insured, on receiving t!if tiill\iilne li', llic iiiiyiiunit of u loss, total or partial, vests in thn uiidHrwnters (in etiiiitable ri<4ht to the interest itself, its remnants and proceeds, and any cliiuis arising out of sneli interest, or any part of it ; (^r as indemnity for its injury or destruction l)y the perils insured against. l»ut the basis of the yiayment by third parties must be a Icfjal lidiin, belonging to tlie insured against such party, which the law will enforce. A siinjjle gratuity received by t'he hisured, toconijien- sate f. 9!> ; Qu-'bec F. r. (J > r. MoUon, I 1,. C. H. 222 ; r.iuton .'. Gore Dist. M. his. Co., 12 Grant Cliy. 170; Crawford -•. [ns. (a)., 18 V. C. Q. B. i:f5. IIfi.p, in Missdui'i : " Tlie niulerwriter cannut claim suiiKiijiitnin. where [ iiviiient was ' < vhinlarilv iiiaJe in a .luublHil ca.-ie." I.sai. Tlie ecpiitalile principle of .mhrotjafion cannot ba aiiplied where it conilicts with that indemnity to which the insuriul is entitled under the eoiiiract of insurance ; but svlnu aalraije is diminished by the act of the insured, or any of his agents, for whose acts he is resjionsible, the imdeiwriters are entilli'd to dedift the amount from the loss. Or wheic ilie insu'rod ha.s disabled hiinselt from transferring claims against tliird parlies consecpient upon the los<, and liable to s,il,, right ^^f 4m SUBROGATION. •^iMI of >ul)roi,'ai:uMi doea not accrue until ])ayinent, anj full pay- ment, .if till- liiiltilily whii'Ji give.s rise to .such riglit on the ])ail of tlie iii.suiei'J claiming to be xnMrinj-ilcd On payment of a part only of that liability the riglit of Kahrnrfatioii does not interviaii'. People's Ins. Co. « Stracli'e, 2 Uiucinnati S. Q. Ilepoii IhO: N'epUine Ins Co. t'. Ddm'.v. .'. M<\ Chy. 338 ; Kyner r. Kyncr, i! \Viitt>. I'u. 221 . lu.s. Co. v. Wooil- nitl. -' Diitdi. \. ,f. 5H ; PIjumij.v Ins. Co. u. First \iit. Uiiiik. S. C. A.. Va.. IS las. Liiw ./oiir. '.V:'i. is:i< . SaiiKsliMiy, .*i D.)iig. 24.") ; Kyaii r. R. R. fo., :^5 N V. '210 Hull r. \\. R. Uo,, 13 Mt'tcf. M-iss. 9!*: Flail ,-. R. R. Co., I.H Wall. V. S. ;{'iT. Gale r. Mailman, il Pi'iiii. St .";irties liefore making a cluim upon the, insurer; in vliieli ease siieh claim would be dimiui.shed l)y the iiuioiiiit reeeis-ed Irom tht' lirst-nanied sources. (Wooil i\ Ins, Co., i SiekK'.s, 4ti \, Y. 421.) S(im<' piilii'ics liavi.' tht; following ,'sti]>u1atiniis fo meet sin-h cases : — " III rase of loefl t}ic n'.siired .-hall a.-^i;!!! to tlii« i-ompaiiy all liis ri;:hts Xct rfo'ver.'-aiif rsiftioii tiicret'or from any otht'i' |)ersoii, U,\\ n or ntln'ic.oriiuratioii, witli a po\vi>rof attornfv to Piie for and rpcovor tiic-anii' -n! the t-viH-n.^enf tliis euMijiaiiy. .^ihI ifiilaiin ^llall lie male aL'ain-'t tliis i;oin|iaiiy, liy tie' a'-i^;iiO(' of t)M)rt!.'aL'ee !ici|.|ini:; tins jiolicy as collat<>ral scciiriiy, tht? same iliall not he fMivalile until jiaynii'mof such portion of the ilelit sliall have li?en enfi.iiri''] a-: can Iji' colleitleil out of tiif oiigiiial semirily in which tins jMihoy uiav \>c licl'l 11^ oollateiiil, iiikI then tliiH cuinpanN shall eiily he IimIiic to pay siii'li Hiiin, not e.xreeiliii;; the amount IilsiuhhI, U.S iiaiiuol he I'olk'cU'il out ut such primal y security."' SUBUOGA.TION. 667 1H2H. In settlement of claims under the Act of Mtuoh 3, 184'.>, for vessels lost in the military service of the United States, Comptroller liuoDliEAD decided that the government was svhrogated to the ri<^hts of thtj owners iu respect to the in- surance, and conse«|iiently only the value of the lost vessels, less the amount of msiuance thereon, would he ].aid. The. underwriters claimed that having paid the insurance they were mhrogated to tlic; lij^hts of the owners, and therefore had a leal claim for rcimhursement from the government. The (,'omptioller held that the party receiving the prernitira ought to stand the risk, and that it would be a novel and unsound iirinciple of law which would give an insurance com- pany the premium, and impose the risk uj)on tlie United States The Secretary of the Treasury susttxined (Jumptroller lUtODHEAD and refused payment of the claim. UNDER TRANSPOKT POLICIKS. |.S2!I. Where an actif)n M'as brought to recover the value of cotton ship]ied by niilroad, which was deslp)yed Ity fire iu transit. The cotton was covered by insurance, and the com- pmics had paid the loss claim. The court below licld that the underwriters rovld vot be si(hn>geen held, in Massachusetts, that the i'iixc, h'HIiouI piirtinilitrly itesr.rihinij l/ie nu/iire of his iittenst (i. e., geiiei'ully), lie i.s entilk-d, in case of a, Iuhs by lire before the payment of Ills niortj;a;ie ciebt, to recover of llie in nrer-i the full ainoniit of the los^< (wilinii tlie policy) in his own use, witliont first assii/iiiiii) his iHiirti/dtje, or iiiu/ portion thereof to thi; insurer. TluH I'liliiiLj was subsociiiently quoted ami ntliriiied by Jmlijc IIoAU, of Ma.ssiat'liu.setts. (Kino v. Ins. Co., 7 Ciish. Mass. 1 1(5 ; Ins. Co. V. Boy.lijii, 9 Allen Mas.s. 12:.-i.) I.Stiti. Another similar rnlinjf i.- as follows ; — Whore U contraoted to sell a house an! lot to W, and aftei\va,rds took a policy on the house in his own name, and reeeived part of the piii'ehase money before insuring, and more before the loss : — Ilfi.it : ••' As the iii.-inrance wa.'^ upon tlie lioii-je, not expre.Hseij lo l)e to cover ailelit. ami not incliiiling the lot, tlie company wa.s not entitled to any ces.sioii of ihe lot. ur of tiie claim aj^ainst W. Ami a~' the house \va^ totally con.snineii, there was iiotliiiiK left to cetle." 1rtoiLi[ee should be twieo p;ii I ; tji < ilodr'nu: of th'it ckfsv- ivonbl sandlon wnf/e.r i>^iici',% aiul faiuil-ih a diinjeroiis teinpMluii, to inci'iii/ III riKii) ," I.H.'tt. Si'ltrni/itHiiii is a strictly per.sonal right of the original party, and if he cannot I'ecuver, neither can the party who claims through him. (Alii ince Mar. Ins. Co. v. F/a. State Ins. Co., 8 La. 1.) Such right ntay be assigned. i;einstate.mknt. lHii!>. ('r.iidilioii of the /tolic;/ — " Froviileil further, (liat it t'huli he option;il « itii ilir conipariv to r'pair, reljiiiM or replace tlii' property lost or ilaiiiaLreil with otlieroi'like kind and ipialiiy williiu a reasoiialde time, £ri\- injr notice ot'their intention .so to ijo uiihin thirty days after receipt of proofs herein re.|Uireij ; and in case this cotnpany elect to reluiii.l. I Ik assiirecl ehall if reijuired, furnish plans and .speciticatiutis of Ihe hi iildin,i;f? destroyed. '' KEINSTATEMENT. r,69 1.h:{0. Reivfif (dement of last propprty lias for its founda- liou the ])rinc'i[ilf of inilcnuiity, a]iplyiiig to nil classcfS of jaop- Hty real or <:liiiUel, l)ut not to ilebts. (55 N. Y. 3413. 1 Magdis' Essays 3'J iri; Sudlers Co. c. Uadcock, l At'inson 554. All ])olicie.s contain a stipulation giving tin; insuici's tlio right to reinstate loat or dainaged prop(>rly, if they m elect, ui)on giving notice of such intention within a specitioil time after the receipt of tlie proof of loss. It i.s among the ear- liest stipulations inc(jriiorateil in the fire policy. It is found in the Ilandi/ti-IIaiid Company, A. n. IGVIG. Fniiiklin I'. I, «; Hail 3 Ml. 170; Rllmaker r. Im. Co. liai Pa. 18;-! : Stillieiiainl r. Sun t'ire (Jllioe. 14 Cases Ct. Hi.'.-sions X. B. 775 ; Stiiison v. I'innock, 1-1 (iranl Cliy. tiOl. JMHT. The option to reinstate or replace i)roperty hurned is a reservation for the benetlt of tlio underwi'iiei, and U(it erne which he is compelled to adopt, as it does not always furnish the true rule for the damages wdiich must be paid to indemnify the insured. This right to repair imidies that the kiuvl ol loss {()X which the company was liable was one that could be com]H'nsated for, by rebuilding, reinstating or But insurers have n(r right to reinstate or rebuild, e pairing. except through an express stiimlation m the policy to that effect and tiien only when the insurance is by the owner directly. Gaston t- f,rtn' .four. 2U: Slauips f. Ins Wald, 19 U. C. Q. B. 58G ; Carver v. Ins. Co., N. Y. C. A., 15 Ins. . Ins. Co., H. C N. C 7 Ins. Law Jour. 250. RE-BUILDING. l.H»7a. In case of reinstatement under the condition of the policy, the only question will be whether it be done properly and in due time. Consequential damages (17»«) will not be considered. Jns. Co. ij. .lohiison, S. C. III., G Ins. Law Jonr. 434; Alleyn v. Quebec Ins. Co., 11 L. C. U. 3114; Haskius c. Ins. Co., 5 Gray Mass. 4:12; Am Cenl. Ins. Co. r. McLanathan, 11 Kan. 533 ; Ins. Co. N. .\. o. Hope, J8 111. 75. IHJW. Held •- That an election l> rdnstate once made, under a Ptipula- tiunof the contract giving such privilege, it is the aaiue as if no .such right 670 REINSTATEMENT. of olcc'tion existed, anil the iiisuiyr in linunil (o ilo dial wliicli he han clectcii to do. Ins. Co. V. DiihiviiD, 8 Paige Chy. N. Y. 110. 2 Boim F. I. Ca-ii-s 20 ; Wallace V. Ins. Co., S. U. Lii., 4 Louis. ^\V. I!. .Milli-n 2^!), l lienn. F. I. L'a.si'-i 412 ; Si'imt-tt V. Irjs. ('o, 1 Wright I»u. 2ti.1 ; Ins. Co. r. Mi'()o..key. IIkmi: Tliiit till' nil lei-wrilcr.- iiaviny rle':lL-il ta /•<'//*.,v^(//< liic iMiildiii:.'. in aii'.onliuu-e with tlio ti rin- of tlie pujicy, (.amiot he riM|uir.d to pav in iiMN' otlicr inaMiu'i'; xiit'li t'lf'i;luiii makes (In- in.-iiiaiice pulii'y a building o.Mitiact : and if tliey nejilei'i to conipU'te llie liuiidin(4, tiie ineasiiiT uf diiniii'j;r i.? tlio animinl i'tc|uiied to llni.ili it, witiioul ri'ji;aid \'j tliat jilniidy f\|ii'n(U'd, l.Hilflii. Wlii'1'0 u lUJiiijiatiy, tipoii rtci'ipL of prouf.-i, elerted to ii'liiiild, hut did not do so on account of non-coiin^ihatice oi' tlie iii.siiicd with cci'laitt cniidilioiis of the policy ; — lll.l.n ; 'I'li.-it w lii'ii a idiiipuii) rlii't^ to n-l iiild, nndoi' liie condiliun of tlio policv, fUcli tdc'i'tion in,'il;i'^^ tin poln'.y a Imildinj!; runtriut, wliiilever iniiy he the CO."!. f"r wliii'li tlio I'onipany lial receivi'd |pnyniiMit in advance. Hut, if from anv oiuisi' tin' pulicy was voideil. the election lo relmild was without cun-idfl'ation. and not binding, unle-s the jiroini.se to rrhuild w;is l,y Wiiy u( t;oiii|iioiiii-e to avoid liti^aiion. IIki.I), al-o ; 'I'hiit if the ill'^iire (Jvay Mas.'!, 432; Ins. Co v. Sennetl. I Wrisrht Pa. 205 ; Dank of V. S. Wales v. Royal Ins. Co. (Kiig.), 1H80 ; Urown '• Hoyal Ins. Co., 1 Ell. A Kll. ^;"^;^. 1H;J*.H). ill in: Tiiat, by ileciin;: to rebuild, the iinderwnteis bei'onie reHpoiisible for misealciilaiioiiH on their own part; for bad workmanship or liiilure of ihe builder; tor oasualiie.s, or if, in rebtiildinir, the premises nhonld from any (".i.'iise become daii^eruu.s, and be onlered to bo removed hy the municipal authorities, even lh(jui;h such danj;eroius condition did not arise in <'onsei]iience of the tire. Bunyon Ul^. 10; ;i;) N. Y. 420, 3 Aru. Law Reg. (.V. y.) 4'U ; 1 EU. k Ell. Q. B. 85.1. IHififIc* If, iiflcf (ilectioii to ivbiiild, the comfiany ilo so ill an iniiiropcM- manner, a ooiiit of I'unity will not, intciffrc to coiii]iel Llieiu to do it a.s they onu'ht, but will leave the in.etiivil to his .suit at law for diinume.s, u.s if lie had contracted Avith any third person. (Home Ins. (jo- t'. Thouipsou, 1 U. C. .Err. & App. 247.) REINSTATEMENT. 671 Parker r Englp Tna. Co.. 9 (Irny Mass. l.'J2 ; Times Ids. Co. v. riiiwkc, 5 Hurl, .t N. E.xcli. •<:;:>. IS SO. Wlieiv, iiiHiu'diately after a loss, llnj ii,Kiir>. <• Delavnn, s Viiigv eliy. tH ; .M.iy Ins, .V!4, J V-Vi Where tlie burnt preini.ses had been rebuilt by ]iartics in iiiterest, and the luortgiigee .sued the company fin' thii uiyiiiance moniiy : — IIkiii: •■ The (■uutriict oI' in.'iiiranct' is ii coiitraot : Miiy Ins. .'■i:f2, 5 431 : ;i Hurl, .t N. 9-i"> ; :! Stev('us N. f ■J0H4 ; Mav Ins. XVS. m2 REINSTATKMEST. l Court of Arassaclni setts say : — '* llv llic rnlo coiittiiilcil lor ( (Jreeiiifaf uhovc), the iii«un'c| woiiM, in iiuwt 011*^1'^, I't'i'ovt-r iiioro lliaii uii iinlfijiiiitv ; hii'I niiu'li lucfc wlif?i tlic LmM ill;: iriMiri>J in ililapidiitnl and imuli nut nl' repair. Siicli rule is luit viipimried liv iiiiv iiiineipl'' iif jiKtice, inir liy untlioritv nf iiny Hi|jiiiij;eil case Ii \n t'tiiiinlcil iipMii nil en'oiHMius constraciioii nf llio ci'iilruet. It 'iifipn-f^ llie iii-iiriTs live luniml to repiiir llir Imildiiij;, or pny the i-xpeiise i.iI'sik'U re]iurs., l?ul iii> siic'li I'll iiij.'iii ion is iiiiposfd iipoii tlieni liy ilie policy ; fliey liu\e the pr:\ ilt'L'e to iiiHke the recpiisite repairs it ihey see lit, to (pioteet fheiii'-elves tiL'uiii-t the recovery ot" excessive damages, or for any other reason; hut ii they elici not to iiial,' a deduction :H, where the Rost of repairs is one of the elements by which the jury are to estimate the actual los.s and seeni.'^ to he timndeii on the principles of justice, as it will jrive the insured a full iinitninity, and no inoie, tei wliicii lie is entitled by the coiiliact," (.May Ins. -I.'ij.) LSI*'). Wlfvc the insured puts up a new and improved litiiliiing 111 phice of tiie old, the amount of the loss \\i!l not he determined hy the cost of the new one ; but will he the e.'^tiinated expense of restoring the old one, without improve- nient or enlargement. If it were an old atid dilapidated huild- ing at the time of the tire, the true measure of daniago Wiitdd bo the value of the buiMing (h^stroyed, and not of the new one. Ibit the e.stimated value must lie that of such a building generally, and not subject to any contingent or incidentid dis- advantage, such as approaching expiration of leasehohl interest, depreciation of property since the erection of the building, ca other similar cause. (IHIJI.) ItKlNSTATF.MENT. 673 Brinley r Nat. Ins. Co., U Metcf. Mima. lUO ; 4 Ueiio. F.I, Cases 471, Wood fire Ins., § 130. IW'I6» Wliore, ly tlic torin.s of the policy, in ou-sc of re- building, the inauroil Iia.s the ri;,'lit to i^xanune the woii; liy experts before acreptanie, he can in.^int upon such exam- ination, and need nut acfM/pt the buildin<^' otherwise, althou«4h ho hud made sug<,'e.sti()n.s to tlie builder, ;ind cau.seti cori'ections to bo made during the prn, and could have V)een repaired for much less than the amount of insurance, S-,000, but couhl not be rebuilt witliout consent vi the Common Council, which consent was refu.sed : — Hki.1i ; That tlio coinii.'iiiv wan liable for the wiudc ?iuin at risik ; the iii- iliiiiiiity not lieiiig liiiiilcd to .■^iicii fi\ut\ a,s woiiM cover tlu' ctiBt of repairs. Hrady r. Ins, Co.. 11 .Midi. 42.5; Brown v. Royal In.s. Co., I Ell. k Kit, Q. B. 853: Wharton Contr. G23, and CHsea ciieii i Fire Ass. c. Rosenthal, S. C Pa., 15 Ins. Law Jour. (iriH : VillftKe of Louisville i'. \Vebste lawfully rebuilt or repaired." It is a healthy provision, as well as a legal one, tind would remedy a glaring injustice in the present (ionstructiou of the contract. (aoa«.) SB 674 RKIN8T\TKMENT. I'NDKR DOUPM; IN8UKANCE. IM-1V< VVbcro ollior cuiiipaiiio.s liatl iiiHurance on tho ImiM- iiig, and that tho insurer's jiolic}' alone was not !>iiniri»'iit in amonut to reinstate the huilding, nniki'.s un dilltniMK'u with iho tact, us it ih snch insurer's bu inoss to |irocure the co-operation of his cii-insurery, anil to see the building repuireil oi restoied, in order to remove his liubilitii-s uiuhr the poliey. Muriell I.'. Ins. Co., 33 N. Y. 4'iti ; lloun' Ins. Co. v. Thumpaon, 1 U. C. Krr. .v Api'. 247 ; 3 Am. Law Keg. (V. S.) 404. LOSS I'AYAllI.K TO TIlflCD I'AUTIES. .IN'tUa* After loss, under a poliey eontaining the stij nlntion p<>rniilliny the insurer to rebnild, the insured, by uu uuk-i on the ju'licy, direeteil the loss to be {uid to another parly, lu which the underwriters assented : — II KM) : 'I'Imt till' rif;lil (iliiif iiiMirerH lo replace, if ihey ho elect, wu- n.i iifticlod li_v tlic order iiiiil a-^i-eiit! siii;li order simply operating uk an n.^'si.^ij- luerit oi the cluiiii, ami in uo way nliecteJ tine n^^lil.s ot llie coiiijiuny in lin. jireiiiiweH. TolDiHu (• Ins. ("o , 1 Cush. Mass. 73 ; I. Philips Ins 04, 102 ; 1 Ciisli. Mass. 73 ; 33 N. V. 4'jy; an I'l. ")i'2. (ioriiisfwe Prore.SK. The company by its determination to rebuild is diseharoed from this jnocess. The money at iln' time of service of the jaocess was not defendant's, for ihe Com- pany liad not tiien decided, under the eondition.s of Us policv, t(i ]iay cash or rebiiihl. ((iodfrey v. Macomber, 128 Mass. 1885 , yKtna Ins. (.'o r. I'liclps, 27 111. 70.) LSrltO. It liii.- bei'u hidd in Michigan, when the policy id- lowed til-' liinlerwriteis to rebuild, that the insurers were liable for loss, less the vidiie of the niateiials left, though this was niuie than the e.xpeuse of rebuilding. (.Brady v. Ins. {:•,., 11 aiick 425.) ciiAiTi'i. i'i;oi'i;iiTV. IS'lil. Hi.i.n: Where, liy the leriiiH of the [Hjlicy, tiie umierwriters liavi' tl.e option, v»itiiin twenty dayf, after tde |.iroofrt of lose have been received, tc elect to replace articles lost or damaged ly tire, they are not. entitled tu fill; a bill lur an iinniulion to re-iirain the insured from removing or diHjiOs- UKIN8TATKMKNT. 675 • iisli. Mass. 73: injiof liis gofxlK until ut'ter the cxpirulion ut' twenty day.", to enable tlieni lo lake iin inventory, aiel willi a vn'W to siicli olectioti. Bnt if the iiiHiireil rpniove the jicmmI- to prevent itn exiiinintition ot'theni lie iiienrn ii;,'uin.-'t him- self the preHnmiition ot framl (N. Y. Kire In«. Co. v Deluvan, 8 I'aige Chy., N. Y. Hit, 2 Henn. V. I. Ca^es '20) |.S52« In ciiHv.^ o( ri'.]>h\c\u\i mficliinnry : — Hki.d : Tlie Jnry are to way what fitate of repair the mdcliini-i)/ was in ; what it woulil e.oNi to rephiue it with new machinery, and how much belter, if any, the mill would he witli the mw mivhinery tlniii it was ut the time of the tire with the old, and the ditrerenee h to he dediuteil from the eniire exi)ense of placinjt llierein "ludi le'w inaehmery. (1710.) Friiiikliii l^ 0. Co. e. Haniill, 5 Md. 170; Vance f. Tojler, l Crawf. A Dix., 1 Irisli It. Ufi; 3 Stevens N. F. 21), § l. 1H5II* In tilt' relnsttitcmeiit of jwrmiinl property, the. in- siiK'i'.s ccUiiHit iviii.statt' ;i jiortioii only, ami jiay fur ihf rmiiaiu'lfi' , they must reinstate the whale. 5 Darr. Peun. 18.1- 5 .Md. nO' Flandcr.- Ins. .')7!, 1H51* 111 replaciuj^ pe.vmutd jiroperty, the uuderwiitor may do .so 1>} any means he see.s fit, the conditions \ieiiig that articles replaced must he as good in quality and eondition as tho.st! lost , and they must be ru[jlaced within a reasonable tune , but ineiileiitals, such as traveling e.Kpenses, advertising, cost of introducing the articles, aiid similar charges, are not legiti- mate items to be made good by tlie insurer. HaskiuSf. lus. Co., 5 Gray Mass. 412; lua. Co. v. Delavan, 8 Paige C by. 41,408. UNDEn R.VILROAD T'OLICIEo. rH5>>. While, a3 a general principle, the underwriter, muler the operation of the condition of the policy, woidd have a right to reinstate all kinds of property lost uiuler insurance, at his (.iption, yet there are ca.ses where this right ct'.nnol be enforced Avithout detriment or injury to the public, as railroad bridyes, and some turnpike bridges, where the necessities of public travel would require the reconstruction with the least possible delay. 1M56. The more modern form of railroad policies provides for rebuilding — at the option of the railway company — not only m lUOcasssivK Lossia. briilj^es, but any of tin- Ititililing.s ('(tvcriMl liy tlw jK)licy. The furilitii's iiL liiiml ciihM'' iiiiy railway cninp.iiiN lu ichiiild, not only much un'iv exjiedilicuisly, Imt uuiili nmro ocoiuiiijicully tluiu liny iu.suraiii'i' cnuiiMuy cnulil ilu umlfi' tliu lunst tUvnralili: cilVllUlHtiUH'Ort. |MrS7< Hi limfafnrtu'nf. takes plaoo nuly wlicii tliH jn'opfrty has 111 CM u>i r-i nsvri'd, an each, for the period ol'ae\cn years, the pohcy cuuiaiaing the loUowing condition ; " Tlie oiinipany agree to pay all Ui^wn which -hall happen to the build- ings villiiii tlif tf tlic •levcral hiiiiis, $S(lOuiid .'jdiriU, ttnviinis rt- biiildiiit;, any more lluiii it woulii ti;ive breii liy pnying tlie plrtintitl iln- like Riini'i of money. (Trull r. iloxlmry Mut. F. I. Co, .'5 CiiKh. Mii-^. '203 ) Juduniurit wa.s ivmleved a^'ainst tht? coinjiany for tlie unex- hausted luilancc of SooO, thus viitiially niuking tlie policy not only a valued one, loit continuous nlao. |^>((0« In I'ln^land, where policies run for sarn years, sxicdsstvr l before die tire." ISUI. Tliis stipulation i.s characteri.stic of the perpdual policy. The Mutual A.s9uraiice Society of Vir^^inia, a., d. 1749 (•i:tS>), and the E(]uitable of JJultiniorc (.H»), both have the same clause. rEELIMINARY TlfOOFS. 1Hr>2. Conditiom qftheiiiiliri/. — '•Persons su.otaining loss or damage by tiro fiiiUi forthwith L'lve iiotioe of said 'o.-s to tlie '•oinpaiiy, and an -oon lliereal'ter a-i ])()^sill^ reiuler a particular account of (jueli ios.'<, signeil and sworn to by tliein. slating wliether any aiol what other imurance hun been muih on the Rame property, <;iving copies of the written porlion nf

    perty and their iii!ere.-t therein for what purpo.-:e and liy whom the builcling inHured or containing the pro- periy insured, anl the several parts thereof, were u.5ed at the time of the loss, wlieii aiid iiow the fire (originated." mm^ 678 PUETIMINARY PROOFS. 1M(t:fi. Tlio preliminary proofs are not of the substance or essence of tlie contract, but relat(' only to the furii) or iimde in which the liahiHty of the cninf»any shall bo sliown. (Master v. Ins. Co., N. A., (J. A. N. Y., 'S Ins. Law Jour. 273.) The items of the particular account, upon which iui'urnia- tioii is to i)e given, set forth in delail in the comlitions of rhe policy and embodieil in proper form, are the first evidence of a claim for los-!, designated "■■preliminary ■proofs," and intended to embrace ail reqwirenients of the " conditions" of the jKiIicy relativ to claims for loss ; settinj^ forth, in a condenseil form, though in general terms only, all facts cuuuleil u]Miri to siibslaii- tiate the olaiu), but relying upon voucherH and ftnitplamcntary proofs therein referred to, and made a portion thereof, for fur- ther details. Continental Ins. Co. v. Lippold, S. C. Neb., 2 Nob. 'MX, 4 Fns. Law Jour. 4.';o ; McLiiiighliu I'. Iius. Co., -'.3 Wend. V. V. tV.'S ; Liuirt'nce r. his. Oc, 11 Johns. N. Y. IXO; Smith's Merc Lhw, F.lfi, n. 10 Erigerly /■. In*. Co., S. C- lowii, it Ins. li!i\v Jour. HtU; IJlakt'ly v. [as. Co., 20 Wlr). 21 V; himan c. Ins. Co., 12 Wen^i .N. V. 4:')2 ; Owen v. Ins. Co., 47 liarb. .\. Y. .ilS; .Vicolrt ,;. In.s. (Jo, 3 Louis. 3iJii, 1 lienn. F. L Cases 385 ; Pli'> .Mo. App. 284; (trpitves c. Ins. Co., 25 U. C. Q B. 157: Hiinliiig V. liH. Co., jr. U. C. Q. Vu l.il; Richani.soii o. Ins. Co.. 10 l". C. C P. t.'W. I.SOI. It will be noticed I'V reading the ninth scdi 'ii of the conditions of the ^Vw^torjai Bnard form of jiolicy, that no provision is made for forfeiture on account of failure to f^iriu.sli piTMjfs in the formal uuiuiier required; the alternative simply bt'ing that " until such i>roofs are produced the loss shall not be payable." A compliance with the stipulation ■nuthln >> mi- sonahle fime, however, is a condition ))recedent to the right of the in.-?ured to recover for a loss, otherwi.se a claim might he Avithhi'ld for ycirs, or until all means of jirope,' investij^'ation were lost. (I««2.) Wiggins r Queen Ins. Co., 1.'. L. C. I. 141 , Killips >■. Ins. Co., 28 Win. 472, Cornell (. Le Roy, l>Wend. N. Y. 103; McKvers v. Lawrenn. , 1 Ifoff. Cli. .\ Y. 171 i Kdwards r. Ins. Co., 3 Q'lU. Md. 17G: King.-iley v Iti.s Co., 8 Ciisli. .Maas. 393 ; Lumpkin i: Outar. M. it, K. Co., 12 U. C. Q. 15. 57Ni Triiak. Ins. Co., 29 Pcnn. «t. 108. PRELIMINARY PROOFH. 679 BI'ECIFIRD TIME, 1.H05. Wliere tho condition oi tho policy requires the proofs to be furniwhcd w'dh'ni a specified thru;, as fifteen days, or thirty day.s, it must bo strictly (toinplied with. " Time L of the essence of the contract," and under such condition thf, courts cannot dispense with the re((uirement, nor excjuse its non-per- formance. It is not like a duty crented hy laxv, tho perform- ance of which is excused if performance is rendered imjKissihle hv the "act of God," but it is a duty created, }>;/ contract, and wliich the insured must poiforni or lose the Ijcnelit of his insur- ance. Where no particular number of days are stipulated for, tlie ]jroofs must be made without unreasonahlr diday, vnder the circu)iLstavces of tlie case. The time necessary in cases of total loss will vary witli the occasion. Where the books and papers (jf the insured are consumed, or other similar contingeiici-js, it will require more time than wbere ibc luss was partial only, and the needful information is at band ready for tho occasion, Tait (,'( III. V. N. V. Iiifo ins. Co., 2 Ins. Law Jour. HTZ, and iiumeroua authori- ties d'c'd; Solomon >'. lus. Co., 1 Hoff. Cti. N. V. 171 ; 1 ytarkie Kv. ; Civil Code L. 0.,§ 2478 ; Rlack o Ins. Co,, 24 L, C. J. Tii, :i L N 29 , LH(ari,'e v. Liv. * Lend. & O. 17 L. C. J. 237 ; Garceau v. Ins. Vn., 3 Q. L. R. 'SM ; Kolly v. Ins. Co,, 3 L. N. 6.1, 24 L. C. J. 298 ; ArnHtronjj; o. NorthiTU Assiir. Co., i L. .V. 77 ; Dills V. Quebec F. I. Co., 1 U.de L, 113 ; Carter i>. Jus. Co., 19 U. C. Q. B. ;iH. DELIVER IN. ISUfi. In tlie conditions of some ])idicies the claimant is required to deliver in a particular account, etc., of tho loss ;— Hki.i; ; " 'I'liat this stipultiti' a in no: coinjiiied witli by ilepositinf; puoK staieiiicnt, properly ma.lo mit, in liio post-office, in i\ Bealfil envelop'', lio.'st- paid ftiiJ adilre.'^apil to the secretary of tlit company." riodgkins p. Ins. Co., :!4 Barh. N Y. 2t.". lUit if such statement be mailed and come safehf to hand, thi're would .soetn tc) be no question as to tint being a snthcicnt C(»n..>lianco. Davis IK Scot. Vrov. Iih. Co., Ki U. C. Q. U. 17Gi Oeailver i'. liu. Co., 38 Pcnu. 8t. 130. mmm^' 680 PliULIiMIXAKY PROOFS. I'lidor t-lu ordinary stipulation of tlio policy, a statement of loss properly directed to the company or its uflicers, and Miiiilod in due season, would lie a sufticient compliance. { Killij)3 V. I'utram F. I. Co., 28 Wis. ITl'.) PAUTICULAKS OF TOSS. l.S«7. It was held by .SloUV, C. d. ;— Tlmi "llio pitrticuhir luriiinit ro.jiiireil liy tlje conililidii of tlii' jioli(!y, \va,» tliii' of tho articles lost ir (laiiuigtMl. and not of llic manrior or cause cif I lie loss." (C'uiliii IK SpiiiiirtielJ F. A: M. Ins. Co., 1 Siunncr C. ('. V . S. 431.) IMJ.S. This stipulation of the condition has always hoen construed liherally, as the insured must necessarily often labor under great emharvassment, as when Ids books of account, in- voices, etc., may have been lost, and thus put it out of his jiower to furnish all of the particulars called for, "Il.s iiicauing is liiat tlio as-siireil will, uiiliin a cciiveaicnt time after the loss, produce something to the c inpniiy, winch will enable them to form a jud.ijment u-- to wheiher or not he hu.- su-^tinued a loss." (1807 ) IIkm): That the ahilitv to '• ri'inlcr n fniriu:iinr (K.coinit" will he de- jXMident upon the circuiu.'-tances ot each individual ca~e. Where the books and papers of the insured are yei! by the same tire whii h consuniea ihe projM'rty, he is pre\enled tVom complyinij; \\]i\\ llic cundition> o( the jK)liey. and a less "particular siiiictneni '' is hi'ld to be suHicient,iind all th:U is called tor within the fair meaning,' and intent of the pariK-.'^ as expressed in the contract and inoditiixi bv ilie sn|iuiation, which '.inly reijuires ''as liiucii particularity " as the nature of liie lase will admit of. Mcbaiigblin '. Ins. Co., 23 W.'mi N V. 52.'i ; Mason '. Harvey, .>> Wd. Hurl. 4 (}. K.x(h PIT); Norion i Ins. Co.. 7 Cow. N. Y. 045 ; 2 Kern. N. Y. 81 , W ricorae I. Ins Co.. 2 Gray Mass. JS'.t, 4H0 ; Lounsbury p. Ins. ('o., 8 (,\)iin. 4,'iii ; llolfnnwi t . .Kina Infi. Co , 1 Kob. N. Y 501, a. c. 19 Abb. Pv. 325, atfirniod .i2 -V. Y. lO.i; Ins. Co. (. Schollenberger, 44 I'.nn. St. 2,'i7 . Ins. Co. u. I'pdc- graff. 40 Ptnn .''^t. 311 : (ireaves r Mmj;. I). .M Ins. Co., 'iri U C Q. B. 127, 431; Mulvi-y & Gore Dist Ins. •^l . 2j I . C. Q, H. 424; Carter ». Ins Co., l,t U. C. U. P. 14.i ; Lnikin / Ins Co. .V V. C A., s Ins, Law .lour. '^^77. |,H<»1I. Till' claimant mu.st prove that the property lost %vaN covered hy the policy ; thid. the loss was ciiused by the pel it instiled aoiiiuht, and its value at the time of the tire. And he is bound by the statement thus niiide and delivered. PRELIMINARY PROOFS. 681 and lie cannot upon (rial impeach its truth and re(^nvor n\)(m testimony slio\vin<_,' a dilterent state of facts from that wlii.ili it contains. (1H7I.) MoMastor v. Ins. Co. N. A., N. Y. 0. A., 3 Ins. Law Jour. '27.!; Mm. Benefit Life Ins. Oo. v. Newton, U. S. S. C, 4 Ins. Law Jour. 6K5 ; d'Huilly (■. Life Ins. Co., N. y. 0. A,, 4 Ins. Law Jour. 843 i Ins. Co. v. Watson, 23 .Mieh. 482; Ina. ('o. V. Zainger, f>:i Ills. 464 ; Ins. Co. v. Heilmun, 9 Ins. Law Joi.r. 91 ; Irving i\ Ins. Co., 1 Bosw. TiOT, 4 l!onn. F. I. Cases 213; lij Ins. Ltiw Jour. PRELIMINARY PROOFS AS EVIDENCE. IS70. Although the " jyfdiminary proo/s" an; called for by the insurer, and no objection i.s made to their regularity, yet the insured cannot prove the amount or extent, a.s U) value or (jaantHy or (pj.aMfi/ of hi.s loss, or the particulars thereof, by his own statement, if there be nothing in the policy making such statement evidence as to the property lost. Browne c. (ns. Co., S. C. Mo., 8 Ina. Law Jour. 431 j Howard i>, lati. Co., 4 Denio N. V. 502. IHTI. Wht've proofs of loss disclose the existence of matters in avi)idanco of the policy, such admissions dispense^ wiLh any other ])roofs again.st the insured as tf» such matters of avoidance. (Parmlee >!- Hoffman Ins. Co. N. Y., C. A., 3 Ins. Law Jour, 111.) Graliaui ; . lus- Co., N. Y. C. A., 8 Ins. Law Jour. 657. IIkik: 'I'liat, such ;)mo/« being merely an cx.parte. Ptateineut of tlie in pureil, tlicy cannoi Le tunieil into prim<( /urie midenco of llie ln^l^l lui- jiortaiit part of his case ; \n- cannot make wuch <'videnci' for hiiMself. Ids. Co. r. Senneft, 41 Ponn. St. 161; Ins. Co. c. Hchreffler, 42 Penn. St. 188, 8. c. 44 id. 2f!9; Nowmark i>. Liv. & Lond. k (}. his. Co.. .10 .Mo. 160; R, R. Co. (I. Winslow, tW III. 2n>; Ins. k Trust Co. o. Lewis, 12 (ia. 587, I lus. I iiw Jour. 847. Nevertheless, such prdimiiiary proofh may be read to the jury, but only as evidence that there li;ul been a couniliance with the Conditions of the iKilicy requiring them, or for the purpose of reiYesliing the memory of a witness. The saffi- cieiK';/ of such prclinmuiry proofs is for the courti , if not suflicient the cause is at an end, unless an express or im|ilied Wdivcr by the insurer can be proved. Whether the amount of loss furui.shed is as " particular " as the case admits of, o 7imm9^ '» »w ■PWH 68!» WHO MAY MAKK PnoOFS. "W'hother the prool's were delivered in within itiiisoiiaLk' timo, or whether there has been a ivaiver, is fur the jury. Ins. Co. V. Lawreucp, 4 Metcf. Muss. •:> ; R. R. Co. v Winslow, CO 111. 2iy; Home h\^. Co. r. Ralto. W. H. Co., U.S. S. C, 1876; Hiilesc Hanover In.^. d., S. 0. Wi.-i., 15 ins. Law Jour. 443; Ins. Co. v. O'Neill, S. C. Pa., 15 lus. Law Jour. 30U. AirSTAKES AND OMISSION'S. IH71il. Hki.w ; If the jiisiircd, tliroiiijii w/.v/iMv;, iiiiike.s an incorrecl Btiitemciit of & material inaltcr in liis preUniinary pronfK,».m\ tiles no aiiu'iiiiadirv stiitc'ineut corrcctinjr tin' previous one, ho cannot, on trial, be Ijerinitti'il tu -how that by viislaki he nii-led ilie in^urerH in maitirs where he hound himself to ulaie truly, a.i a condition precedent to hin riglit of recovery. (Cuniplnl! c Inis. Co., 10 Allen Mass. 213.) IMTiJ. When i) party, in nuiking up his proofs of h).s.s inailvortently otnitted mention of certain articles wliii'h were destroyed, he may, if the claim is not paiil and suit is broiiglit, recover for the nrtich's destroyed but omitted in the proofs. nice. V. Prov. Ina Co., 7 U. C. 0. P. 548, Robbing v. Vict. Mut. Ins. Co., Out. C. P. ; Hoffiimn v. .Etna Ins. Co., 1 Rob N. Y. 501, .s. c. 32 N. Y. 405, aflirraeil, 19 Abb. Pr. 3V5 ; .(Eum Irs. Co. v. iSlivens, 48 111.31; Ins. Co, r. Hiickbergcr, 52 111 464^ 1 Piirson;! Con. 416; Wood [us. 4:i7; 2 Johns. Cases N, y. 157 ; Uutersinger i<- Niiig Ins. Co., Ohio Dist. Ct., 10 Ins, Law .four, 237; 52 111. 4tiiJ, bSid. 6:1. WHO M\Y MAKE PROOFS. 187.'i. CdiidiNon of the policy — " If iliid policy ii' made payahle in ca!=o of los- to a ihu'i) p'»rty, or held as collateral security, the proofs of !o.'<,« rjliull be inadi' by the party orij-'innlly in.':nrt'd, unles.s there has been an actual sail.' of the property ui.iured" The preliminari/ proof ma}- be executed by uny membt'r of a tirm .signing for the firm, or by any duly authorized agenl for any party insured. (II171>.) 1874. % ail 'U/'iif, IIki.i> -. That, nnderordinary eircunistances, to ho a fatal objection; for it may, witii propriety, he said that the owner is sup- po.sed to know niil only his own Iosh, but al.so any .«ecrei reason why he nhould not Im' paid. The company contracted that he should take the re ?pon-ihi!i(y of the oatli, and if ho was the one with whom thev had person ally dealt, who had kit" vledge of tiie tnatler, he would he bound to assiune the refipdusdiility. But where the jxdicy was obtained by the agent upon an application made by hno.^"ir, and the premium waw paid by him and the tVJ^ WHO MAY MAKE PROOFS, 688 m prerimini note exfcutt'd by him, ami be had otlicr policies on tlie same propirty obtnined by liiiurtelf, ami when the principal was unknown to the company, pronCri maiir by irnich agent woiiM be a compliance wilb ihe con- ditions of Uie piliry. tSinjh (>. State Ins. Co., 47 Mo. 54.) Keeler r. las. Co., K, Wis. 52.< ; Ayresi f. Hartford lus. Co., 17 Iowa 176 ; O'Oour.Dr i. Hartford Inj Co., 33 Wia. 160; Knruochau v. ins. Co. 17 X. Y, 428 : Walker ", lua. (>J., 57 Me. 28. 1875. Tiiat insiiiiifj/ wa.'* a Hiiffieient excuse for failure to comply with the condition of the jwdicy reipurinir .-ucb an allidavit. That if ibe utbdavit contained the necessary information as to the time, amouni, and cir>,nmstance.- of tlie l,-,«h, it wa.s ?ullicient, though the insured waw lindane when it was made. (.Ins. Co. v. Boykin, 12 Wall. V S. 4;W.) Where the iiuHired fiiils to make jjroofs of loss, crcMlilors can attach and supply jiroofs by the best possible evidence within their niaeh, snb.stantial compliance with the requirements of the policy in relation to proofs of loss is all that is requireil of the insured. (3 [U.sh. Ky. 328, 333 ; 25 T.arb. N. Y. 189 ; Van r.ories et al. r. Life Ins. Co., S. C. Ky.) UNDEIt OVEN riKB OK CONTRACT POLICIES, IH7«I- In eases orio.ss under open fire or contract policici^, the proofs of loss should contain a copy of the written portion of the policy, with tlie specific indorsement covering the property lost or damaged, with the statement of any other in- surance that may be upon the same, together with .^uch other particulars required in ordinary cases as may be pertinent to the occasion. (Jil-l. »I«, »17.) t.'NDER RK INSURANCE. ISTT. Tn i'.ases of loss or damage under re-bisiirance, the condition of the i)olicy mqnmni:^ priiiriiinayy proofs and other ■voni'hcrs is held to be complied with l>y the re-insurt'd com- pany forwarding to the re-iiisuier the notice and proufs of the original insured us soon as received. When two or moro rc-insuranccs have been made upon the same risk, In cas(^ of los.s the original proofs cannot l)e served upon each re-insurer ; in such livent certified copies of the ori'^iiial must be made and sent to such re-insurers. JO-l5a.) (N. Y. Bowery Ins. Co. v. N. Y. Ins. Co., 17 Wend, o'o'J, I Beun. ]''. 1. Cases 509.) ^■p 684 I'RKMMINAKY I'UOOFS. WAIVEK OF THE PRELIMINARY PROOFS. IMT-S. Prrlimiiiary proofs, thoiifjh n cdiidition precodnnt to rc(;()Vfrv, ntai/ he tvaiverJ, and hence are iniportaiit (inly when made so by the insurer for whose security and informa- tiou tliey are alone required. They have no relation tt) the merits of the case, and are never required l»y the law; tiiey are the consequence of special conditions, and though they may be lawfully insisted u})()n, still they may be lawfully tvalved. Ins. Co )'. Neve, 0. A. S. C, 2 McMiillin 237; 2 Bcnii. F.I. Ca.sea 153; Wight- man i'. Ins. Co., s Rob. La. 442, 2 Ik-nn. P. I. Cases 3.'i(t ; Priost r. Int^. Co., 3 Allen Mii83. 662; tinderhill c. Ins. Co., 6 Cusli. Mags. 440; Hicks v. ins. Co , St. Louis .\Io. ('. Aj). 1,ST!>. As .1 rule, insurers must ohjecf sjjeciji.calhj to any and all mere defects in form, in due season to enable the insured to remedy the same, if they mean to rely u]K)n such defectb as sub.stantial. Ins. Co. I'. Kvle, 11 Mo. 278 ; Ins. Co. >'. Hanner, 2 Oiiio St. 4.52 ; iVoyns r. Ins. Co., 30 Vt. t;ol.» ; Ins. Co. r. Goatcs, 14 Mil. 2S5 , Ins. Co. r. WliitL-liall, 25 111. 4(!i;, D( silver v. Ins. Co., .38 Peun. St. 13(1; May Ins. 573 ; 7 Ins. Law Jour. 140. 481. 1.S.SO. Like the notice of loss, it is ludd that the rece])tion in tytleiitc. of jireliminary jiroofs, furnished in good faith, or without objection to tl eir/ovw, is evidence of a waiver, tem- porary or absolute, of any merely technical defect therein. Walker v. Iiis. Co., 50 Me. .^71 , Home Ins. Co. r. Cohen, 20 Oratt- V.i. 312 Hojiiion r. Ins. Co., Hi Harb \. Y. 254 ; Wood In.-3 716, 718. ISSl. Hki.h; " The tiiert; rvception of the proofs in ."i/enre d'ui not aiiuiiiiit to 11 Wdirer ; and that the fm!t that the coMijiany did not ohjecl, to the jiroofs, and gave to the iri ; Franklin Ins. Co. r Chioijfo Ice Co., iCi Md 102 ; Savage i<. Ins. Co., 4 Cosw. N. Y. 1 ; Wliyte v. West. Assur. Co., 22 1. C.J 215, 7 li. L. lOfi. PRELIMINARY PROOFS. G85 l!«i,Ha. Whoa- the board of a ccunpany resolvcKl " tlrit tlie claim (uf the asHured) be resisted, and that the seerelary furnish theiu with a copy of thin resolution," Tlie elaimantg contended that siu.Oi refusal waived all objections to the [we- liminary proofs ; H 1:1.1 1, by Marsii.vlt,, C. J.; — «' That llu' rei^ohitioii of the lioard to resist tliP cliiini in cxprcsseil iii t'tMuTul tfrM\f>, anil cunsf<|ii('i)tly applit-H to even- part ot tlie testimuiiv oIliTt'il in Sdpport of it. Wo kiK^iv of 110 principle nor usage whii^ii reqiiires uii.iirwri- terB to specify tlieir ohj.'Clioiis, or whicli jasiilies the inlerenoe that any obj'-ction is waircd. We know o( no principle by wiiich preUiiiinitiij lunDfii shoiilil be. Heparaied from the other proofs wnich were requireil to t^ii.siaiii the chiini, and its insullicieney he reni.'irlve.l to the insured Tiie ^'eneral resolution of the hoard was imtice to the assured that if ihey intended to afsert their claim in a court of justice, they must come into court prepared tosupport it." (lioumage I'. Ins. Co,, 1 Green N.J. 110.) Drake, J., Supreme Court of New Jersey, oommeiitiiig on this Titling, says : — " They are nHipiostionably sound. A party cannot he obliged in thi.s way tc dischi.se hi? detense." lS.s:i. In the case of Diwch v. The Xoi'th Rli'ci' lunur- aace Votapaihy, 7 Cowen 462, there was not only no objec- tion made to defect.* in the pvi'Jlra'nut.rfi proof.^, but llier(> was au express tvaiver by the prt\sid('nt of the cuuipauy ; Uki.U: Hi- had tu) autliority to make such waiver, ami decideil tlie cause against the claimant, paying no attention to the V'aiuer to be imiilied from want of objection. IH.Ht. Wii.lver, ou account of delay, may be only teia- porary: — Ht:i.J> •. " The neglect of the underwriter to point it out, though it may be a 8utlicieiit excuse to the insured for not producing the proof- corrected until deni;uided, it is not a wtiU-er of their ni^ht subsequently to demand thai the defect shall he supplied, proriihd that the insured has not, in tlie meantime, lost the means of supplying it." (Edwards c- lti8. Co...;^ Gill. Md. 2T().) |SH-». In case of a demand for a lo.3S under an agreement to make a policy against fire, a denial of such agreenuuit by the insurers is hekl to be a ivaiver of preliminary proofs of loss v:Uld)i the time stipulated in the form of policy usetl by the 'company. (I.H71>.) (Taylor f. Ins. Co., 5 How. 390.) ^nm^^ mmmm 686 VOUCHERS. 1M.H!». An otlor tit c niproinise ami i)ay u part of a daim, 110 oljici'tion hfiuf:; inailo a.s to the sulficieucy of tho proofs reudtiivil, is a vxiioer of any insufficiency ; also tliat a part payment of a claim was a waivrr of any iliifect in ttxf proofs. Tiic waici'i' of autice of loss is not a waircv of prrlimitui.ry proofs. (^Westlaivo v. Ins. Co., 14 Rarb. N. V. 2UU.) IS ^7. HIank for.ns of preliniiiuiri/ pro'f, embodying the reqiiiriMa.'nts of the conditions of the policy, in case of loss or (lnnia<;c, are usually sent vohuilarily by the companies to facilitate the adjustment of honest losses ; which, with the neces- sary ac(!oitipanying " vouohevt^ " ami supphmcntarij proijfs, it will be the duty of the claimant to make up to the satisfaction of tiie company. I.HIH.N. That such proof shall be mtisf actor i/ does not imply such evidence as caprice may require hut siu^b as 7>uiy l^' pertinent to the facts of the loss, and wouhl be likely to sati.ify reasonalile men. VOUCHEES, AXD OTIIKK sri'l'I.KMF.VTARY PROOFS. ISSIJ. CiiiiditiiiH of / ill pultey.- -"■Aipi tiiitu sucli pi'dof, dt'claration.-, anil CPrtjiioiiti's are iiroiiiicotl . . '.lie loss shall not bf payable." ISi>0. In all cases of adjustment tbore are certain neces- sary " coucherH" essential to th(! perfection of tlie [)roof, as representing the facts and figures upon which the prelim liin.rij pro'fis to be predicated, and forming tlic basis of the claim. 1H!>I. These vouchors should embrace the following; — First : A li.st of other in^nrmtcc upon the property, if any — Si'.hedtilc. A- Second: A detailed statement of the value of the property at the tinu' of the (ire I and amount of loss or damage thereon caused by the (iro — Sched- ule H. Thiid.: A statement of the ownership or interest of the insured in the property. VOUCHERS. CH7 Fourth: The orrupntion of and use to wliicl, (lie premises l.tiriK-il, i)r containing llie prnyterty dcslroye.i or .ianmgi^il, wan put at tlii' lime uf liiv liic. Fifth : The cause of the fire, su far an known U> the insiirai. Sixth: Maijistriite'ii or 7U)titri/'.i ctrtificati. FIRST. — OTIIEU INSliRANCE. |,N)I2. Exftct copitiy of the \vritt<^iii portions of ALi, policies of othH!>.S. Under a valued pDllei/ the insured needs not to ])rnve the rahie except in cases of frundulont over- valuation. AMOUNT OF LOSS. |.H1I!I. Proof of the amovnt of losfi means not only the deliviiy of |iart.icnlars of the elaim. but tlu; exhiinlion of surli le<;al evitlence to ,su})]>ort it as the eireuni.stiincuis of the case will admit of, sujiported also by the jurat of the elainiaut The inventory of goods saved, willi the appraiser's list of daia- ages added, aiul this amount deducted from tlie iotal value of the property as found at the time of the fire, will give the gross amount of loss. |1M>0. invoices, books of account, sales, and inventories of stock taken immediately after the fire, and the testimony of tiie clerk of th(> insured, are proper evidence of the loss by mn<>caL of goods, when endangered by fire. (IT^ilK) ]!>OI. If the insured, Ids bocdo being burned, eatini.ite hi'* loss, m a prelnninary proof, from a previous ai^eount of stoek, and subsecpieut pureha.ses and sales, he should state not merely the result, but how lie makes his estimates so as to arrive at his results. (I'hilijis r. Jns. Co., 14 Mo. 220.) Nortun r. Ins. Co., 7 Cow. .V. Y. (U5 ; Barker v. lus. Co., 8 Johns. X. Y. 307; Bumstetifl -, Ins. Co. lii N. Y. 81. 11I02. Stating the entire loss, under two or more policies without distinguishing the amount covered by the policy in question, held not to be a good account. (Lycoming lus. (Jo. r, IJ^Hlegrall, -ID Tenn. St. 311.) l!IO:t. In smaller stores it is freiiuently the custom to take out articles for family and other u,^es, without maluug any VOUUUEUS. 699 entry thoreot' upon Ui(. bunks. Quit.' hir^'i^ aniomibi nii>;lift ho .'iikI oflea have l)tH!n tliiis Uketi an. I paid tur l.y ih,, innlcnviitt'i- a', loss. It i,^ 1)1(1 jii.stico that the stuns tliii.s aiJimjpiialod ah(nil(l Ix' crtHlitt'.tl to the company ui tiic jiroofH. I!KM. Wiiero a tiiiu has been in linniuesH for a niinibii' of years, a \nr}i,e amount of old, shopworn, and deteriorated .stock will arcnmulat*>, n[K»n which a ; U, t"'«. On nouaRitOLi) pkopkhtv the " voucher h" .should be a lir^t, with present m.s// valuer, after making allowance for u.se, of llu- furtuture de.stroyed ; or in case of damage oidy, if of any extent, by . submission to ai)prai.sers; but the most satisfact,ory way is by mutual agreement of r.wncr and adjustcu-. A skillful aljustei can save time ami money by dispensing with appraisers and going Lluougli the lo,,.s wilh the claimant himself, in this cla.s.s of cases. ^ 1 7 H>. ) l«07. On MILLS and maoiunkry Ics.ses the adjustment is usually so complicated and imi»orLant, in consequence of (ho sums involved, that e.Kf)erieiiced men oidy are iiitrii,-ted with its luanagemeut. As a number of companies are usuallv interested in such losses, it is customary to select committees to which the adjustmeut is intrusted. (I7IO.) l!K>.S. Ill cases of loss or damage to nriLUiNciis, the " vouchers " will be the " hid " or '' estimate " of some re.spon.siblo builder for winch he wilt contract to rebuild or repair the pre- mises, and not his simjde valuation of what the loss or damage may appe.ir to be. (1717.) I1»0». When these vouchers are voluminous, it will be sulh- cient that they be submitted to and approved by the adjuster, TT WW 690 VOl CllEltS. who should 8cnitJni/e thorn <. are fully in iKitail ; t'oininiiinr^ vului's, t'Xiiuiiniiig exteusiuiiH, I'uulings, etc., to ilutcct (.nors, aiMMdi'Utal III iiiteiitiotiul. In this case only tin; iv^poctivii auiuuuts IK >•(! iiii[ii'ai', in a I'luidt nscd furiii. THIRD. — liNTERKSr OK TUI.K. Iim. The intert'st of /Ac insured in tho property, if real estato, wlii'thor in fee Hirnph; or ahsolntc; — lc<,'al or L'(|tiitablc — it' aiiylhiiijj; hfss than th<' wholt; : or, if personal property, wlie- rher hell] in trust, (ir n\\ (.'uuiiiussidn, or uti stora;^'e, i»r sold \>\\l not delivered, or not renioviMl, ^luli interest and its extent nmsi he eleai'ly set forth in the proid's, with the names of the leapeo tive owners, (ind he ccvflticil to hi/ than. (OflO.) Ills. *.o. I'. I^owcll, IS. 0. i'cnii., tliLS. Lmv Jour lit.'); liis. Co. ti. \^^'^•^i. et al. , M(i. C. A., 5 Ins. Law Jour. -'Hit; Tuck v. HHriforJ Ins. (.'o., 8. C. N. H., o Ins. l.Hu Joiii'. 4'i7; Ins. Co I' Curry, C. A, Ky.. >; Ins. Law Jour. TA.\: I'ornr n. J';trm ins. Co., U. S. C C. .Mich., >' Ins Law .Imir yi!8. Title has rcpect til I hill wlui-h is tlif i^ubji'i'i ..il (i«'y((7.s//iij>, uiitl is ilie iiiniiil.'ilicin i.t\' (iwnerahip. 'tJiTO.) l.STKi'Ksr cjitfi rs I'roiii owxei .i/iq) ; ilie ti^rni.* arf^ not wynotiynious. InlfUsi 18 u i(U!ilitii'il tiifin'rs/iii>, iui(! iiii|jlic's u portion or siiurc. htfiuialilc /ii7t;'('.v/,i ari.se under various (iircnmwtnnccH. ((i!t*l.) (}\\ M.ioiiii' i- llif rif;hl I v vlnch ti tliii;_' licloiigf to hoitii' orn» iii piii nciiiiir (o ilif (.■xclu.'iiiiii ol'iiU otlicrf ; a)i nhsolittc tillc. (11201.) <>WNER i.s oni' who ha^i (knninion ot a itiin;;, rcn' or personal, corporeal or iti(!or]M)r('nl, which he has a ri>;iu to t-njoy lui'l ilo «itli a.-i he |,leiisv»<, fij i'ar »(^ the hirt j/i-rinils. N'ichois i<. Ins. Co., 1 Allen M(i.=s. 03; Povler r fns. Co., Ti Barb. V. Y 130; In.s. Co. I'. Bi'rry, S. C. Ktuis. !h7I. PoHSE.'^.sroN l^^ }irin)d /(irii: cvideiice of title to pro|jerly, hid '.pen to In' iihiittt'l in/ I thir ri-iil, ■ic,:: !0U1{TH. — OrCUPATlOX. I!»lti. riie oenipanry of the premises at the time of Uio Hie nni.st bo j^iveu i.i detail ; all changes iu me or occupancy lincu the application was tiled, or policy i.s.-ued, nui,st be carefully iiotcd in the ]iro(.if. (lltiT.) Ashwortb v. Ins. Co., iS. J. C. Mass., 3 Ins. l-aw Jour. 489, M VOrsTIUTK'.S CEllTIFlCATK. KIKTir. — OUIUIN OK IMK IIHR, f)'.>l I1>i:i. riip iiiMiivd miiHt 'Xwii all ihc infiHiriiitinn vvilliiii his knuwl-'il;,'!.' upon lliis puiut, uikI iiiiihI u.-jsoiI llio I'wv did not uri- yiiiate by any ui;i, (h'xitin, or proiMiionioiit un/u'.^ purl, in.rontho jiiirt of'aiiv uiii' hiiviiiu; miy inU'it'st in tlio wiid policies of iliMiir- (Uico; noi ir\ (■unrtctiuoiii.u of any IVuiid cjr evil practici* done or siift'tTod by hi Ml. (157^*.) Dmujii impoits a [.hm, ,sulu:nio, or inli.Mition ourried into effect. MAGISTRATE'S ("ERTIIICATE. SIXTH. hqi, uikI is ilic oiii? iripaiticulur me ul dit; Hie 11M+. ('(inilifiiiii fftht j)nlir;f. — " And slmll nlwit proiliice » wrtiHcafo iiiiiitT tlie lmnuiluini il lesson tilt' piopiTty inHiirtd lo the Himjunt whicli such nm^intmto or uoliiry public shall certiiy." I!M."5. It is cUKtoiniiry to a|ipoiii[ to llio pivliminui} (noof.s, us u pari thereof, tlii> ecHtJiaitc of a murji strut c. (a.'iilJl) (»r notary public, rosidiiiji; "nearest" or •' luust contingtioii.s " to the tire, and consequently yiip{)OS(!d to know the correctness of tlie facts sot forth in the jiroofs, statin.L,' his belief in the honesty of tlie elaimant, and bis opinion as to the anjoiint of the loss sustained by him. Tlie condition of some i)i)licies retpiires tliat lie shall certify that " he hunvn and believes that the insured has really and by misfortune, without fraud, anstained h)ss to the araoiint thrrain named." Chancellor Walwouth lield, that the phrase ''amount thcrnn named " referred to the amount named tn the certificate which iniolit or niiuht not be the same aa that claimed by the insured iu the proofs. In Indiana, under the Law of Doc. '2, I860, this certiticate is unnecessary. (llKtO.) Bunyou Ins. 102 ; Worsley ,;. Wood, L. T. R. 710; 2 H. Black. 674. T*" 692 ma.gisti{Atk's certificate. 11>1*, respectable freeholders, not concern- ed in M\c\\ loss, imi)orting that they were well ac<]uainted with the character and circumstances of the per.'-on or persons insured, and do know or verily believe tha; he, she, or they, really and by misfortune, without fraud or evil practice, have sustaitud by such tin; the loss and damage as his, her, or their loss, to he value therein mentioned." (2 Magin's Es.says 1^76, i^ 1327.) OldniHn c. Hmvicke. 2 H. lil r.77, n. 1 ; id. 254 ; G Tfrrii. 710 ; iliison r. ilarvey, 8 Excli. 819: C Dumf. & K. 711. 1!>17. J'rior to A. D. 1800, a number of suits were decided under this clause in England, and created a great deal of dis- cussion pro and con a.s to its materiality ; but it was eventually decided (A, D, 179G) :— Tlittt " the pro(Miring ofwiu'li a certificate was a cdiniitioii proiu'dnit to the right <.if the assured to recover ; and it was iniiiiatci'iiil tiuii the minisler, etc., wrongfully ret'n.sed to sign the certiticate.'' Scott (-. rhi.'nix Ins. , Ins. 'Jo., 21 \Io- 81; Cornell /. Ins. Co., !."» .Martin l,a. 22.S : Jobiuson c. Ins Co., 112 Mitas 40, Hii oh I'. Iliiiiilioldl Ins. Co.. .'!.'> .N J. 429, overriding l.'i N. J., lyjini : Aldi-innin >. lii,^ Co.. ". U. C. U. K 37 ; Ins. Co. v. Lawrence, 10 I'eterg I.'. S. &07 ; 2 id. 25 ; Willir.m son /. (Jsolutidy essential that all of its retiuirements, singly and I'ollectively, be complied with, a.s with any of the other covenants of the contract. The foini of the original clause, though unchanged iu the main, has been niodiiied and restricted, being coulined to magis- rates, notaries puldic, and parties authorized to administer oaths Hence, it is known simply as "the certilloate of loss," "the 7n(i.(j lit rate's crrtijicate.'' ]»l». magistrate's certificate, reqcjikements of the cektifioali e93 1. MuHt he under hkal. 2. Olf.lio " xjiARKST " magistrate or notary public. ;i. Must not be a HKi.Aiiv K or CRKDiTOtt .. " tile rlaimaiit, 4. lie niiKst have ..xa.ninwl the circumstance of U,e ions, am! must ^m^r tlie ('iiAKAi-TKii and ciKei'MrtTAh-CE,s oCthe insured . 5. Must state the .AMorxx oHhe loss to the be.f of .nn own Bti.EF or knowledge, vvitliout relVrence to the amount htated in the proofs. l!»!JO. Tlie othor poiuts connected with the certificate are: , 6. In case of uefpsai, of the designated magistrate or notary (,„ make the certificate. "^ 7. The TIME witiiin wliicli the certificate must be produced. A When the requirement may be ivaivkd, actually or by implication. 9. When there may he depkots in the certiHcate offered. Tlie following are some of the ruliags of th.- comts upon this certificate : — I. — THE SEAL. I«ai. A ri.'glxa to object to a certificate on account of liu' niui.ssion of the inagi,stT;ite's or notary's sml, is held in New York, to be a waiver of objection. (ia*».) Ma.ou .. Ins^Oo., 17 V.C. Q. B. 191 ; Scoti -. Pro., las. Co., Stuart L. C, Ann. 354; .\lanu «. West. A33. Co., 19 U. 0. Q. li. I'JO; 2,'> VVeml. S. Y. 379 11.— TIfK NEAREST MAGISTRATE OR NOTARY. lirftSv. I)i<.iHi<^;« would not he nicely calculated to a.scertain v;ho '.;. the imirest nitigistrate, where th.-. one .signing wa.s neai h) .nA was ac.|nainted with all of the circiim.stauces.^ Hhauno.r.las-. Co., 2,5U.a 0. I>.380;l,an3.. In ■ . T. S- C Ills l«*i 5Sm,ed Tenn. i:.., 9 Wend. N. V. 163 ; Turly .. Ins. Co., 2:. id. 374- Vt'amst wl£,.^I^r^•"^■^"•'^•^^^^^-■--'^^^^ liir.l. On the nther hand, any difft>rer co in point of distance from the place of loss betweor. the -sidcaees of the magistrates is 'rmterwl," being t..uleso by the expmss terms of the contrator ■P^^T" 694 MAGISTRATE, S CKRTIF.TCATK. tlie jury were b&und to regard .such (lifterciict' in flistance as matet'ml, without further iiniuiry on the .subject. Distance inay be detenniiiud liy the iilorc of husin^sa of the uiagistiiite or rujtury. Lampkin v. West. Ass. Co., I.» U. 0. Q. IJ. 237; Keicbum v. Trot. Ins. Co., j Alkn y B. 136; Racine ». K(iiiitable Ins. Co., fi L. C. J. 880 ; Protection lus Co f. I'heison, 5 Ind. 'in ; Mnody c. Ins. (Jo., 2 Thoniii.son N S. 173 ; W illiam f. Queen Ina. Co., D. S. C. C. Conn., 15 Ins Ijhw Jour. 26. 1S>84. Where the lir.st certificiite lioiii tlie nearest magis- trate was found deficient iu fovni, two others were }>roeured, correct in form, but from magistrates living at a greater distance from the fire than the first magi.strato : JIeld: Not to beacom- pUanco witli the requirement, and the insure(i could not recover. (Noonan '•, Hartford Iiis. Co., 21 Mo. 81.) Ill, — CUEDITORS OR RELATIVES. ■I!>!J."S. Wlicre two magistrates, creditors of the insured were nearer to the fire tliau a third whosr ecrliticiite w.^ obtained. Hkld: To 1)0 a suttieient comjdiaiice. (/Etna T'l-^. Uo V. Micrs, 5 fSneed. Tenn. L'JO ; Wiiglii v. Hartford Ins. Co.. 36 Win. 522; 4 Iny. Liw dour. 2.U ; Ketchum v. Pr.jteetion Ins. Co., 1 Allen N. 15. 13f).) Whei'c a magistrate or notary certifies that ho is not interested in the case, the onus of proving such interest lies with tin; underwriters. (Cornel v. I-eroy, ',> Wend. X, Y. 1(3;V) IV. — THE CHAIi.-VcrER OF THE vLvEMANT. I1>2<>. T]ii.s clau.se of the condition is coiuplicd -rvuh l)y a certiticate to the character of the insured, " as leai!ied finm information and persunal knuwledge." V. — AMiUJNT OK LOSS. I1>*i7. L ndL-r the jtrovision !i.S. If the certifyiun; miigistratt; believes tlie loss to he more or hm than the sum claiiutid by the insured, and certifies to an amount which he believes to he correct, it will be fidl com- pliance, even if such specified ;um be but a nominal one. It rests upon the insured to prove the anjount of his loss to the satisfaction of the underwriter ; and this can be 'i,) nf'nurh per- son or pc.rnon.i as kIiuU he examined liefhre liiiu in rel.iUiim to siteh Jirt and lima, stating the cin-iuiiKtanccH as tutarly as jiossihlo, how such fire hap- pened, and the amount of the loss wiich jierHoii hath suHtainud thereby." Vl. — REFUSAL TO CERTIFY, l!>:<0. It will not unfrequently occur that magistratt^s will be found who will rrfiMc to certifij to any specified sum as the amount of loss, either from want of knowledge upon the sub- ject oi from the cliaracter of the claimant. This wiil not avail the insured, " for if a person engage for the act of a stranger, he must procure such act to be done," unless the refusal of such stranger be procured by the act of the other party. So, where a I'lergyman declined to certify to the amount of loss, solely upon the ground that ho had no such knowledge of the value of the ^^mn^ 'mmmf' 69G MAGISTRATES CB;RTIFrOATE. property as would justify him in making such certificate, it was HELD not to be a coniplitiuce with the terms of tlie coudi^ lion. lOJJl Held in Englaml, and aftirmed hy tlie Supreme Court of tlie United State.-; : " Tlie produclioii of tlie cortiticiiti.' reqnirei] by the siipulatioii of tlie ])olicy i>( acondition jjrecedent to thi- payment of the Iohs, 80 that, if wrongfnlly, or from improper motives, it be ny'«Ar'/, it will //o^ excuse the want of it." (Columbia Ins. Co- v. Lawrenoe, 10 Peters U. S. 507.) 11HV2. Where the ministers and wardens (wrongfully, as held by the claimant) refused to sign the certificate, he produced a CG '"icate signed by several householders instead : — Hk. < compliance with the requirements of the eondition was a conditi(.i) ;v ■ iienl,iind tlial the rr/'usal of the minist"rand cbui'cdiwurdens, whether righi •• or wronirfnlly, wa.^ eipiallj insuHicient an an excuse." Scott /■, Pha'nix Ins. Co., I Stu.irt L. C. Ap. .'!54 ; Alderman i'. West, of Scot. Ass. Co., .'3 U. C. K. B. 37 | Routlego v. Uurrell, 1 H. BI. 204 ; Leadbetter v. Ins. Co., 13 Me. 265. 11IH3. Where the near est two magistrates both refused to make the certificate, the insured prociiretl a certificate from the wea;< -nm-rc^if magistrate ; llKid): This did not entitle the insured to recover ; and the procuring of the certificate of the nearest magi.strate, answering the description iu the policy, M'as a ccjndition precedent that must be complied with befoj'e the insured could recover for the loss. (Leadbetter v. ..'Etna Ins, Co., 13 Me. 265.) Vll. — TIME OF I'R0DUC11U.N OF THE CERTIFICATE. I!KS4* The usual form of polii-y makes nt) requirement as to the /''/(' within which tlie certificate .shall be forthcoming; though, from the context, it is sujtposed to accompany the proofs of loss as a part thereof. I'nder this condition the only require- ments of the law in reference to it>< production is that it shall be within a ''reasons hi '> tnii''." (1<»41>.) Gontinentallns Co. i . tilppold, !^ C Neb., I In.s. Law Jour. 430 ; Blakely c. Ins. Co., 20 Wis. 217 ; Innmu v. (us. (Jo., 12 Wend. N. V. .152; Welcome c. Ins Co., 2 Gray Muss. 4o0. MAGISTlt\TE's CERTIFICATE. ()97 1»3.1. Where a policy required that the insured should "as soon as 2>us.sihle thereafter give notice, etc. — make proof, etc., etc., and 2>rocurc a certificate under the hand of « ma- gistrate ": Heui, by theHupreme Court of the United States ; That » as snon as pos- sibh " could not \w drawn down to fix the construction of the chuise respecting \.\\e certificate : hut the " M,/(/,Vaj ; and, at the request of the insured, return the certiKcato to bo amendiul ; their neglect or refusal to do so will excuse the neglect of the insured to produce the amended certiilcafo.. (IMHO.) (Diikin i'. Liv. & Lond. k Olobe Ins. Co., N. Y. C A., 8 Ins. Law Jour. 517.) Proof of insufficiency of the certificate is upon tlie company. ^- ■tt V. Gore Dist. II. Ins. Co., 9 U. C C. P. 405.) Upon this subject Cliancellor Walwouth says : — ■ loo I 'iiiiii on till' |)Mrt of tin' iiii.lerwritiTS recjuires that, if they nieau to iii.si.-t iipi'i; It /(»;«(// (/(/ec/ of this kiml in the preliminary proofs, they ehouM ;v|)pri.-o the iiisiireii ihai (hey consider the eanie (iefective in that jiiirtii'iilar. or juu their refiisai to pay Ujjnn that ijroun'! a? well a^ others, so ap to <;ive him an opportuuity to supply the defect before it nhoiiM be too late ; ami, if ihey neglect to do so, tiieir silence shuuhl be held n wiiirer of eiich defect in the prelimiiiarv proofs, no that the .same shall he coiisi(1ered as du'v made, aecordin>: to tiie conditions of the policy." (.^tualns. Co V. Tyler, Ul Wend. N, Y. 100.) IRON SAFE CLAUSE. ]!>I1. The following clause has been adopted for the security of the ciiiii]:anies in the niattfr of books and accounts : — " The a.ssured, under this clause, lierehy covenants and agrees to keep a Set of hooks, .-liiin ing a complete record o( bu.sincss transacted, int-liidiiig all purchases and falew, both for canh and cretiit, together with the last in" ventory of 1^ lid business, and further covenants and aj^rees to ke"p such books and inventory sfcurely looked in a lire-proi^f sate at iiij^ht, and at all times when the store mentioned in the within policy is not actually open for business, or in some secure place not exposed to a lire which would dfs- troy the house where sucli business Ik carried on ; and, in (^ase of loss, the assured agreis and covenants to produce such hioks and inventory, and, in tiie ev. Ill of the failure to produce the same, this [Mjlicy aliall be deemed null anil void, and no suit or action at law shall bt mainuiined thereon lor iiiiy such loss." 699 BOOKS OF ACCOT^NT. lii;?LICA.TE INVOICES. ll>4iJ Condition of the pvlicy. — "The ismireil sliall alwo prixlucc llieir bookw of account and other vouchers, ami e.xliibit tlie same for examina- tion ai the otlioe of the ooiniiany, aijil yverrnit extracts ar.d copies thereof to be madr ; tlie a^^sured shall also produce ctrtifitd copits of all bitl.i and invoiw-s, the ori(jiitals ofichich have heeu lost, and Bhall exhibit all that reniains of the property which was covered by thin j)olicy, dainagfd or not damaged, for examination to any peraou or pergims named lnj the com- pany,'' . IS! t!S. This stipulation calls for a formal act over which tlie insured may Imvo no coutiol. tic must, in support of his claim, furnish Khs hooJvi^ of account auJ other vonckers a.s far as lies in h'mpoiver. A refusal t(.i do so, or any concealment, bars his right of recovery. (15!>1>.) (Ins. Co, v. Nichols, 16 JJ. S. 410.) 1044. " Thi8 re(iuirenient| however- createt» no iinplieil warranty on the p;u't I if the insureil to keep Ujoks of aceuunt, itmi to be ready to produce them when ijalk-d on ; but it is to be construed as u .'Stipulation to p^iduce sue!) book^, if any, a*? he may be in the habit of keeping;.' (\Vifj:htn\an i\ Ins. Co.. ^ Hob. l.a. n-l.) Jili.^. 'vll there be .-iK'li a dei<>ructioii of the books and KJUihem as jire\ent.>' the insured from wending in a' particular account,' a general state- ment of the sros.s anuiunt of Ihe loss, and the ijircuntstatices attendim: it, properly verified may be sutficient." (14-27.) Bumstead „. Ins. Co., 2 Kern. X. Y. 81 : Jiibe o. Ins. Co., 'J? Hnrb. N. V. -112; Voaler v. In.s. Co. Edru. 8. C. N. Y. liM; Lion Kire Ins. Co. v. Sturr, H. C. T."xa3.. 18 Ins. Law Jour. 87/^ ; Ins. t'oj. v. Weides, M Wall. U. 8. HTi. IIKKi. '■ If the insured, his hooks being burned, estimates his loss in a preliminary proof, from a previous account of stock and subsotjuent jiurchnses and sah^s. he should state not merely the result, but how he makes his pstimatt?.s, so as to arrive at his results." Perry ,'. .Niag. Diet. F. I. Co., '21 L. C. J. 2o7 ; Gravest). /,/., 2B U. C. Q. H 127 : Scott i: J(i., id. US); Mulvey v. Gore Dist. Ins. Co., id. 124; IJantiag e. .Mag. Disi. Ins. Co., id. 431 ; C.imeron v. T. & B. Ins. Co., T U. C. C. P. 2:^4. V, wmmr^'^^^ 700 ROOKS OF ACCOUNT. 11147. Wlien tho (conditions of tlic policy required the jiro- (iuct'xon of '^ bookn of account n,nd other profier vo'iichers." the bonks having been burned, tbi; company re(|uirod certfiiii in- voices whieli the insured refused to produce, though within his power to do so. Hkld, and afflruiod upon apjioid: "That, having failed to coni}ily with the condition.s of the policy, the insured could not recover." Cinque Mars v. Equitable Ins. Co., 15 U. 0. Q. B liX 246. IfM.H. Where the insured gave the names of parties, but refused to sign ii request to those parties to furnish duplicates of tiie bills he liad purchased of thein. Hkld : That such re-, fusal did not prevent recovery. (Mispelhoru v. Ins. Co., S. (). Md. 9 Ins. Law Jour. 411 ; Franklin Ins. Co. v. Culver, 6 Ind, 137. li>t!K Where the condition of the policy recjuired loss to be verified by " their books of account and other proper rou- chcrs," the books of accounts, etc., were burned, and could not be i>roduced. The coin])any demandeil " dui)licate invoices and the pass-l)0. When the conilition of the policy stipulated tliat the claimant shall " produce certified copies of all bills and in- voices, the originals of which have been lost, and exhibit the .fame for examination hij ainj person or persons named hy tin com pan If, and be fxamined," etc., and the company fail to name such person, they will have waivetl their right to require thtur production as a part of thi; pieliiniuary proof. ll'jniu lus. Co. Com. v. Cohen, C. A, Va., 20 Gralt. 312. II-*J BOOKS OF ACCOUNT. 701 BOOKS OF ACCOUNT AS EVIDENCE. Ifini. iJool't^ of account of tlie insured are not evuk'iice ill thomselves ; tliey are entitled to nu liirtlier woiglil llian the proof of witnesses, wlio may be examined as to tlieir accuracy, will justify; and derive no additional weight, as evidence, by reason of the stipulation for their producition. Slate V. Hopkins, 8. 0. Vt., U Ins, Law. Jour. 657 ; Newmark c. Liv. A Lond, & Globe Ins. Co , 30 j\Io. liiO lfl5:j. Where two diiy-books ami a ledger, of a iii'm of two brothers, kept by themtelves, having no book-keeper, and memoranda upon a fly-leaf of the ledger, made liy one of the brothers from the annual inventories of stock for si^veral years previous up to the last inventory prior to the fire, all pro])erly testified to be correct by the parties who made the entries, were admitted in evidence, the inventories having been burned : Hki-d: "These entries were properly admitted l)y the court below." (VVeide Bros. i\ Ins. Cos., U. S. 8. C, 9 Wall, C)77 ; 1 Ins. Law Jour. 767.) "There can bo no doula biU the day-books and ledger, tlie enlne.'? in which were te.-ilitied to lie correct by the persons who made tiieni, were properly ad- mitted. They would not have been evidence, ;;e»' se, but with the lentiniony accoinjjanying them all ohjections were renioveil." (4 Seld<-n \ Y . I7U.; li)'!!!^. " When original ontrieH are produced, and the person who made ihiMii, and kjitw them at the time to be true, te.stiHed thai lie tnade the entries, and rliat he lielieved them to be true, alihongh at the time of testifying he liad no recollectinn of the facts .-Jet forth in the entries, such evidence is adtni.ssible i.i< pi i)iiuj'iii:ii evidence for tiie jury. ' (Merrill r. The Ithaca and OdwegoR.ll. Co., 16 Wend. N. Y. JiSG.) Gary r. Mead, 22 N. Y. Court of App 465-6. 105!fi. Wliere a party seeking to introduce his books of account as evidence did not state that such books were of original eiitrias, and that he made them, and that they were true ; or that they were made by a deceased ]ieisoii, or a person then a non-resident of the state, and that siudi person luatle them in the due course of trade, and of his duty, or in the course of his employment; but, on the contrary, a witness stttes that he was clerk for the party, and sold part of the goods "•t^mrw 702 kxaminAtion under OATir. sought lo be recovered. Hkld: " Thnt the proper fDiindatioii was iidt laid to roiidor tlie books adiuis.sible as evi(h)nco." (King v. Hnterpi'ise Ins. (Jo., 41 Iiid, -ifi ; /(/. Gl.) ISI^'I. A day-book, oopiod from a " hlnttrr," in wliich charges are first made, is not to be received in evidoiico a.s "a hook of orvjinal entrien." EXAMINATION UN1)E17 OATH. 1 J)o5. Condition of the jmlini. — "' 'i'lic fiHsiircd >-liall, if rffjuircd, culiniit to an cxiiMiiiiation or exaniiiiiUiuDH iimler oath hy any person ap|:)ointc(l liy tlie company, aiul subscribe to f iicli exaniiiiiitions wIkmi rodiK-ed lo w riling ; * ' * * and until 8iioii prcjotv, dfclaratidnn, and ceriificate are pnxini'i'd, and exam i mil if) im and ajijirai-ala permitted by the claimants, the loss sliill not be payable." I!>>>4>. When the proofs submitted arc not satisfactory fron^ any eause, the insured may be called upon to reproduce his books and vouchers, and be examined and recxavdncJ under oath, and sign such exaniinati(.)ns when reduced to writhi"' upon subjects touching the loss, or the claim arising therefrom. The Lombard House Fire Ins. Co., a. d. 1707, was the first to cover the contents of buildings, and had a .•similar clause in its pnlicy. I!>j»7. Thiscotirse will often bring out the facts in cases of exaggerated or fraudulent claims. Here facts, results, sns]»icions etc., discovered in the preliminary investigations will be found of material service, if properly liled for use. (I004.) An examination of claimant before proofs of loss ai'c sub- mitted w ill waive the. production of such proofs. (Badger v. Phienix Ins. Co., t. 0. Wis., '.• Ins. Law. Jour. G27.) So also, after a known breach of the policy. (Tiius v. (ileus Falls Ins, Co., 9 Ins. Law. Jour. (164.) The claimant should be duly notified of the time and j)laco of hohling such examination, and of the name of the jiarty authorized to examine (H>*>0) ; any failure on his part to respond to the requirements of such condition will be at his peril. EXAMINATION UNUEH OATH. 70JV' Home Ina. Co. N. Haven v. Oolien, 20 OratL Va, ;il2 ; WiUmms .•. QuP-.-n Ins. Co.. LI, S. C. 0., ir. IiLS. Law Jour. :?. Minn. 14 Ins, Law, Jour. IfiS , Zeillfe i'. Ins. Co.,8. 0. Wis., 1.0 In.-i. Law Jour. 62 , Ins. Cos. c WeiJe, '.t Wall. U. H. t;77 ; Tilu^s v. Glen's falls Ina. Co., C. A. N. Y., 9 Ins. Law .Jour. rttJ4. I05H. Where the insured, nn in.solvont debtor, had ub- scoiulod, .so thai he could not be examined under (jutli a.y wm de.sired, and a creditor attempted to sequester a ixM'tion of thn amount claimed to be due under the policy in satisfaction of his debt. Hf.M' : Tlie failure of the insuiod to .subnut to examin- ation under oath v/aa fatal :o the claim of the creditor a.s against the inaurers. (Harris v. Phonix lus. Co., 35 Conn. 3IU.) 11>»10. Where an examination under oath was entered upon, and reduced to writing as far a.s taken, but not sub- scribed, and an adjournment for two weel^s wa.s had by agi'ee- nii'ut of the parties , and within which timti the insured was called upon, but refused to an.swer furtiier or to subscribe to tho,se already given. IC'.ld : "The refusal to complete the examination was unwarranted, and therefoie by the express terms of the policy, the loss had not yet become payable. (Ponner v. Home Ins. Co., lo Wis. 677.) I!M>0. Where the condition simply requires the insured " to submit to au examination under oath," Hklu : Where the insured has subxuitted to one examination, altliough he after- wards refused to answer other questions under oath, the cou- (litiuu was complied witli by th(i one examination (Moore y. Protection Ins. Co., ;J0 Wis. 97,) 11101. The failure to respond to the requirements of this condition is mainly a question of fact and of intention. If it be to gain time and lessen the chances of detecting fraud, it would be fatal ; but if to save the insured or his family from an epidemic, it would not. (Phillips v. Protect] n, } is. Co., U Uo. 220.) , . ■ . 704 IWVMHNT OK (^LAIMS. 11M(2, (\tuiiifion Dj'tfic jioliry.—" To lie puid sixty ilayi* uftertliie notine nmJ jinmt'H o( llie .•, aii'l i;i'rlili l'nd(!r the above-cited condition ])reliininiiry jirnofs must lie sul)mitted to the (Company at least i^ixttj dan^ before commencement of suit. Ames i\ lus. On., 14 N. Y. 2")3 , (Jpr. Am. los. Co. f. Hocking, iS. C. Ph., bJ Ins Law .lour. 54i5 ; Howard i>. Ins. Co., i» How. N. Y. 45 ; Allen (;. Ins. Co., !:• liurb. N. Y. 442 . Ina. Co. <. Rutlego, 7 In i. '.'6; llation ... Ins. Co., 7 t'. 0. U. P. yu-i; Rice r. Ins. Co., 7 irf. 548 , Watt v. Gore Dist. Ins. Co., 8 Grant Chj 523 ; Brown V. Ins Co, 2! f C Q.B. 425. J'AVMKNT OV CLAIMH. m IIMMl. r.v tliis 8li|iul;iUnii no aj^rt'ouiuiil i.i iiiiulo I'. l>ii\ in ,udl>, or 111 money i!V.3n, but niiuply " to ita;/," or, in otli.T words, to tudninuf'i Uw iiiHiirt'.d, rumTvinj^ tho ((juioii of rciiiHtuliuy the |iroi"'ily lost, or piiyiiii^ in ciyli, .\' they may oli'ct. I'.iit iinlil the rcinisiLt' proofs slmll liuvc I't'cii lilcil, tli.^ loss is riol pavfililc. (Hi'iiIh r. Uoim \m. Co., :'>6 Biirli. N. V. Cili.') JJnilorii piuol.: iiontviicl, (Ic.mand for paymt-nt can l»' nnuly lit oni(! npon ocoiiminw. of luas. (Uanser v. Fu't'niuii's ImiikI I118. Co., S. C. Minn., 15 In.i. Law -lour. 555.) MONEY PAID firON iMTKOrKK CI, AIMS, 11107. AftiT a loss has bi-en paid, upon the discovery of fraud, ini-trnprt'sintatioii, or conccaltncnt of material facts in til!; original oontraet ; or .should ('ircnmstances transpire which would liavf jn.stiti(;d a resistam'c to iliu claim, hut wliidi the iindrrwrilcr had im nieaas of uscertainniu at or prior to tho time of payment, the money paid niav be rei'overcd ; nnkvss, in the abscnct; of fraiid, tlio payment was made nndei pressure of tho law. McCoiitifll r. Iii9. Oil.. IS in. 228 . West A?sn, Co. ". Towlo, S. C. Wia., 15 Ins. L.ivv Jour 2U, and RUlhoritios cited ; Johnsuii r <\)!itinentftl Iiia. Co,. ,•<, C. Mi,li . " Ins r.iiw.Ioiir. .<02 ; 1 Term U- M:^; :' Ban. .v Ad. 3t)3 ;2 Joliiia. N.V. 157. Ihit \\here the insurer knew, or mi<,dit have learned upon incpnry, all of tho circumstances upon which the claim mi,'ht have bp.en i'esistc ; 1 .Jolina. Ch. \. Y. 320, 494, iiJ. 3:)1; Mui,. Life Ins. Co. r. Wager, 27 Barb. N. Y. 204. IIMrS. VVhou a loss is paid under circumstances of vuis. take of /acr-. unl not of law, which mistake could only have been prevented by the disclosure, tit the time of settling the uu iip 70(1 PAYMENT OF CLAIMS. claim, i)f facts which wore not discloHcd, \vh(;tlu!i from iguor- iinc'c or fraud on the part of tho insured, or of any otlier p('.rs. '• FiuiiK'iii of money into court when tlu' deolaraticni is on a special cuntraot ti^imils the cuntrac^t iiulecil, .so as to .'in|H>rse(lc the iieee.— aitj' ot proving.' it ai, the tiial (1 'riiM".s I'rae.tico 1)25.) It \h an a<;kniuvleil;,'iiient of lilt li'^hr ot" action to the aiiiouiit ol'thc Piiin brought in , h\n. hevotid the amount of the sum, it ii^ no arl< iiowledjrmeiit of any riglit whutcvei', (//,/,/j l<24.) It wnives' the benelit 7l. Among the conditions of some of tin .Massachu- setts mutual ])(ilicies is the following, and it is lieKI valid : — " Itth'' iiisund refuse tlie amount otTered tiy the cotnp.iny and sues for more, he shall nut recover costs unless liu obtain u ji^ li^ment for a sum. greater than wus tendered." WnO M.VV TKCEll'T FOR MONEV fAlD. I!»72. When a policy is maile in the iiani(>s of sev.'ral persoiis, (.1 (,l a linn, any one of them ciin give a legal discharge aad release of the debt in the joiut uaaaes of the parties; but it PAYME.VT OF CLAIMS. 707 is customary and more proper to require a Joint receipit from as many (if the olaimants as can bo found to (xecute the same. (I«7«.) lOTS. If a reh>(fM ha accepted without eonsideratiou, and without the surrender of the policy, tiie pre.^uniptioii ]night be that the payment was made to tlie wrong party. If it be claimed (liat the policy has Ijcimi mislaid, lost, oi' burned, satisfactory evidenct.' of such fact, and of the ownership of tlie contract, should be had before payment of the claim. H>74. Policies are fre'iuently made payable to mortga- gees or to an assignee with I'nnseut ; or the garnishee process may liave bc^en served upon the company — .all of these points >hiiuld be particularly attended to before ])aynxeut. (l-i;J5.) DRAFTS I'PON THE COMPANY. I!>75. Ag.Mits should not close any claim by d;:,*'t on tlieir Gotnpanies without s[iecial instruction to do so. They should diiiw for the amount of the claim, less the customary deduction (or interest, when paid before maturity. Upon i)ayment of tjie claim, the policy should lie cauoelcd by the insured's receipt written acroHf^ the face fcir the (jro^/^ sum paid, aiul forwarded to the partuit office as a voucher. (a;$70.j (Spoonei v. Row- land, 4 Allen Mass. 485.) In case of partial loss (inly, the gi'oss amount paid should b(! indi)rs(.'.d upon tlie pcilicy in diminutidii of the ,im()unt re- maining at risk for the unexpired time, and a dupli(;att' recei{it taken and forwarded to the parent ollice as a voucher f(jr liie payment. Where the policy has been lost, or mislaid, so that it cannot be found ujioii payment of loss, a, release in acc(jnlanco with the fact should be (akeu, in duplicate, and forwarded as the voucher. 708 ACCORD AND SATISFACTION. 1!>70. It smiiotimes hecotnes necessary to oompromiso a claim, when nothing hettpv can be dono. In suoh cases, an (((•forti and i'iali\Mcfi(ni aw. agreed npon, which signifies in hiw, that 111 place of payment of money owing, a certu'ii sum shall be, and is at the time paid and accepted in tlischarge of the .lel>t. i Philips [us., § 131(j ; 2 Johns. N. Y. 1:') 1 , 2?v> : Ciiinp ' Y. :'. ; 2 Camp, 3]:< . Potter f. III!-. Co.. S. C.Mt'., 1 lii3. haw Jjur liiS ; 1 .5i:3; Smith c. Glens Falls Ins. Co.. N. ^ . C. A., I Ins. Law Join'. 708. The fullnwiiig deei-ions of the Siipronie t'ourt of Alabani.i will f\|ilain the intention and force nf such an agreement : — 1. " WliiTe a dchtor pays the priiu'ipul of lii.^ ili'bi. whicli is receive. i i.v till' croilitor, in full sati.-^fiiotioii, whotlier the delji be pa-t ■hie ur riiiiiiiiv.' Ill iiiiitiinty, it is a good (k'R'use, ami may be pleaileJ as an 'i'-< I'ld uini saii.-- j'lntinll.'' 2, " A CKin promi^ie riiade in piwil tailh, utiii without fraud, wluTe ilie debtor is ill doul'itii! cii'iMimstances, byuhiiii a les.-J snin Ibiiii tiie whnle debt is receiveij by llie creditin in KiHi^i'urlion, tiie delitor i.s therein dis- tdiarged I'roni all fiirtber liabihty." H»7T. CiiNSiiiKliArioN. — "When th.- parties have hxed the con.-.ideration, and stated it in the ctniliact, as part ol ihi' agreement, this precludes an impiiiy into the tpU'stiou of ,i failure "i consideration, unless there l)e fraud, misicpruseutatitiu or deceit." CONTE ST ED C [. A I MS. IWTiH. There is always more or less prejudice against aii insurance company which may feel compelled to litigate a i-laiiii lieemcd Iraiidiileiit , y(.t no other i.lass ol incorporated institu- tions has So often to dtial 'vith sharpers and scoundrels, who re- gard uiulerw ntei's as f'ir game foi iheir )ira<-lice, and who.se claims ar<' iii't unfrequently so exorbitant and glaringly fraud- ulent as 10 render resistance ti mattiT of moral ol>ligation ab Well as lA self-preservation, (I02.S.) CONTESTED CLAlAtS. 709 Lee r Gaarclian \Afo fns. Co., V.H.V. i). Oal., ;, 1,„. Law Jour. 'iG ■ ThomnsoQ Mass. Mut. Life Ins ('„., ri. S. C. C. St. Louis. J!>T». Oaklev, C. J., remarked in this conuection :-- "Tb.U ofn.l| tl,o casP,= of contest, upon in.iirai.e.. pMliciM .ner trie,l belore l„m, h. l.a.i no.loubt thai, at least two-thirds were rightfully re.i.ted ioxjraud oil the part of the insured."' l!>.SO. Wlien more question.s of I,i\v ari.^c, aud tlic u.attor cati l)c subinittctl for the .iecisiou of the courts without the in- terventiou of Juries, tl.e un.h=rvvriter may stand an equal ehauce xvtLh the lasured. But until our jiidtjes become bettor under- writeis than many of tlietn now prove themselves to 1).; by then decisions, in.snrauce companies will hn.i it to tlieiv interest to continue, to compromise doubtful and unpromisin- chums rather than run the risk of heavy court and lawyer's fees, in addition to the payment of the claim at the termination of a vexatious law suit. lf»«I. It has become so jnuch a matter of course for juries to tind for plaintiff, where the defendant may be an insurance company, that the Ibllowing - mution." bv Jud-e MoiutisoN in the case of ]\r,;.Millan ,■^ the Gore DistrL.t Insurance Com- pany, reads refri'shingly ; — ■'Thejur^ure cautioned not to favor the pl,untiir lierftu«. it is a eotu- panv that .,s defending the case. Thej should deal v. .t!, the .naUer a., thou.di ,t were two men that were cneerned. It (he jnrv founrl tl,at the-e .ve're any false .wearing or atten.pt at defraud, mj; the oo.npan; „n the part of plajMUK, then he vvould lose all claim to any part of the'in.^uraner, and a ', erdict .-should U' given for defendant. It ua.s nece.s.,S2. Contrihuiion, in fire insumnoe, is the pro rata pay- inout niade, or to b(? made, by cacli underwriter iji sati.sf.'.ction ul' his ev))lrlhiifi>'i Uahililii iijiou an aci'iucd goTieral kws, either to the policy holder directly, or, in ah^ieuce of the contrihution chmse, to make ijjood the amount advanced by one or more of the coTHpanies for ilie conmion benefit. liiinyon liis IMO ; I'etidletun v. Walker, 4 Y. i% ('. 441 ; .Marsb. Ins. I If!, 117. Ifl.Sifi. Vonti'ihntioii is o]»orative only between eo-inaurin!.' C(iiii|)anies, and in oases of doubhi insurance where the Unhility is joint. fhe inynixd may recovei IVdUi either contrilMitiny party to the full aiuount of his h)ss within the insurance, sub- ject to tlie right of contribution from the oth(M' eomjianies ; whereas, under the CQiitribufioa chmi^e, the liability of co-in- surers becomes sr.venU: should one coni]iany knowingly pay nioic than its share, recourse ca.nnot !>(• bad ii|ioii the otherw, as contnbufloii ran only be enforced when the party payiny wa.s under legal obligation to ])ay. (Jorion r. Loud Assiir. Corp., 1 BiiiT 402, May Ttiti. \'2; Croaiio«', Iuh. Co.^ 1,1 B, Mimroe Ky. i:il!. I!>.H4. (hniribufwii assessed ujion tiu; insured is in the iiiiture of general iiverage iu marine insurance, Nvhich does not operate in fire insurance. Policies subject to average, or excess policies, are, liy their specific tetin.s, exceptions to this rult!. ril/csimmous r. \ni. Co., 18 Wis. ?.:n : Iau:ii< c. In.?. Co., r, Cow. N. V. G3.^). Ifl.Hfl. It IS a gt'iieral priiiciple that losses under tire }»olicies are to be i)aid tvithont contrihutiou from the insured, utdess otlurwise specified. III.SO. r.y till.' inti(idU''tion of what is known as the co)u 1 1'lhut'ionclimtue into the fin; [loliey, " jtroportional alate>iiciit ' has been sab.stituled for tlu! old form of eonlrihutlon, which latter is now operative only in e\(ci»tional ca.se.s, where ratoJu'' oiipurtioii'iiumt is not provided for by the terms of the policy. CONTRIBUTION. 711 J1)S7. '■ I lio principle of ooMtnhutiini has ita foundation in tlio cleiirest principles of natiiial .justice; for, as all are e(iuaily hound iind t"<|ually reliovt'd, it is oUviously hut just that, in such case, all shoukl contribute in proportion (..ward a h. netit obtained by all. Any other rule in case of double insurance uould put it into the power of the a-ssured to 8elect his own victini and, npi)n motives of inero caprice or t'avoritisni, to make a conunon burden a jiiM'Sdnal oppression" (Angell Ins. 111. § SH.) UIH.S. VViihout cnnirihuthon y)et\veen insurers the ])olicio3 would have io Iw- cxliausteil in tlie order of their dales — thfi carht'r not heing conipetont to inquire coucerniug any sub- sequent insurance. (41, «.H. !!>»<».) lOSll. Trior to the introduction oi' the contribution chiuse into trhe lire policy, it was cuntoraary, under the operation of the contribution feature, for an office h >ving the largest amount at risk on any general loss to proceed to the adjustment, and pay the cLtiniant in full, collecting a ratable share from each co- instiring company. It was quite common for the insured to select the com] any having the largest interest at stake, and collect the entile amount of the loss, leaving such company to look to its co-insurers for contribution. (2015.) Tln' ad- justing coinitany thus becoming a guarantor for the others. Xewhy ,.. Ree.l, 1 W. Bl 416; 1 I'ark. Ins. 280; Hunyon Ins. ISO; Cromie ?). Ins. Cos., 15 B Monroe Ky, 4.S2; .Shrtw's Kllis Ins. 5.' ; Tleirston i\ Koch, 4 Dull. Texas 348 ; Wiggin c. Ins. (;o., 18 Pick. Mius. i i;. , Beawes Le.x. Merc. Ii42. ItHIO. liy the I'rench rule, policies are exhau.steil in the order of their dates ; and siicli was formerly the English rule. Many of the modern policies have as a portion of the contribu- tion clause the words " without reference to the dates of sut^h other poHcies," ami thus compel cttntriloition. In marine insurance payment is made in the order of dates and subscrijitions, both in Kngland and in America,. In this latter country there is to bi' found a condition that the policies are to be applicable only to the excess of value of the subject over the ;iniount insured by prior policies ; and in re- spect to siibseciueut insurances, the policy is to be iipplied as if no such insurance had ever been made." 1 Philips ina. '.!(), 32 ■ In.s. Co. v. Griswokl, 14 Weud. N. Y. ,191) ; Brown v. Hartfonl In,s Co , 3 Day ,')H. Under this clause there can be no contribution. wmmm CONTRIBUTION CLAUSE. ]!M)1 Condi/ion n/' //i( fiiilii'i).—'' \n i-ase ot any oilier in.snraiioc upon tlif |ifii|iirty licmliv insiureil, wlii'thrr luinit ])fior or ,sul)se(]iipiit (•) (lie date of tlii> policy, llii- ivs-urud mIiuII Lie tnntli'tl lo rfcuver of tliin coiiifiaiiy no ^i;{.) Pendlebiiry ». \Viilki>i-. 4 V .t ('.■441; Hunyon Ins V.W, I'in ; Qiinrrier ) . Idj. Co., C. A. VV. Va., 6 Ins. Law Jcmr. 7tl : flairis i . Iiix Co., Wric,'lit ri48 ; Liioas V, Ids. Co., tJ Cow. N. Y. O.Mf) i Homi. F. 1. Gases iV'3 ; Stacey r. Fmuklin Ing. Co., 2 Watts & 8. 50ii, 'JBeiJu. F. I. Cases 109. " To fivoiil till* '.iicuily of actioii, this clause was introiiiiceil, hy which the ilouble otti'A' of recovery ami coutriliutioii is performed in a single action ; /hi insiiii'tl h' iiii/ it/luiri'd In ii'i-aiip (hi, Kami anioiinl which he mus/Joniicr/i/ hare recocered over ii'/aiiut (hose who stood by his side.'' " Thi.- clausi', it seeniH. Iia.s not, always l/een rocei\c , ti (\)w. X. Y. 03.').) I1>!K(. The cu)i(rihution I'Uiuse is variously worded; but its adoption, iti some form more or less apj)ropriate for the jmr- pose, ha.i now become general among underwriters. Its elfeet is to clearly define and limit the cant nl>u five UahUitij of each co-insuring company to its rntable proportion only of the loss under any circumstances. " It was intended to prevent fraud, and also, from Iteing insurers for each other, which is the ellect of recovering from any one company, without regard to date, aiul ]i-it\e him to cltiim cc.utnbutiun. " (Stacey ''. Ins. Co., 2 Watts & S. renu. oOG.j CONTRIBUTION CLAUSE. 713 'l!)fM. Wlifn there may lie |»olicio.s of sevoral coinpaiiies iiitefC'stei.l mow, or less concurrcuUy on ilie same loss, -oiue of whicli contain this clausu and otliers do not, the a{iportii>iiiiieiit of contributl.ve liuhilif.y will be more or less complicated, us there is groat diversity of opinion ;ind practioi; among under- writers as to how coijipound non concurrt'nt jvolii'.ie.s should be made to contributt! with specilit' insurance upon the samr loss. lO!!**)* To a want of uniformity in construction and appli- cation of tliis clause, and to the ililVert^nt constructions given to their several polici(>s, as to the liability of the conijianifs, by the nispective adjusters, may be attrilmted the greater [mition of the difficulties met with in tla> apportionment of coiitriV)ntive liability upon ascertained losses among non-conourr'Mit jiolicies- This misapjilication of the contrihufiou clause arises from want of familiarity with the peculiarities of comjiound policies and tljcir ri'latuins to specific insurances in contact upon the same loss. (a07I.) I!>!M». The contriltutinn clause, like contribution under the old i'lirra, is lield to be operative ouhj hrlweeu the I'ninpaiiies, in cam of doable insurance, and l)etween the policies contain- ing it; and t\an o)d>j ivhen the concw'Tcnf inswra/iice exceeds the general loss. I!IJ>T. When the general loss exceeds the amount of inswr- anee coHciirreht i>v non-concurrent, the clause is held inoper- ative, each company paying according to its (contract ; tiie idfeot of the clause being simidy to definti and limit the contribntive liability of co-insurers in ])artial losses, to such ratolile jicopor- tions of loss amounts as tlu^ respective policies may bear to the whole amount of valid concurrent insurances. The interest of the policij-holder is in no way limited thereby, excej4 to di.'bar liiui from calling upon any one undetwriter for the full amount of tlie loss, as he might do in the absence of the sfijudation. (I««a.) ()g 1r!) ' Eu.st Kivor Ins. Co., S. O. N. V., 2 Ins. Law Jour. IS4 ; [{ulc w 2126. I!M>< wmmmt 714 OONTRIUUTION CLAUSE. ami is I'cstiictoil tu tlie rafahlc proportions of the loss, within the iunoMut of the co)'inirrent insurance ; t,Ii()ii<:h sdinc of tlio policies niiiy v.om'.v other property in addition to llint dostroyed, or protect i^pcriff items not embraced in niy ot the others. (ao7i.) Conn. I'. I. Co r. M^r. k Mecli. Ins. Co., H. 0, A. Va. !.'> Ins l,aw Jour. 615, imif). li is a necessary incident to the existence of such liiililily tliat tlie several insurances shall lu; hound with iM|ual certainty, and in the same sense tor tlie same loss. Ins. Co. '.■, I.oiicy, 20 .\(d., 20, 4 Benn. F. [. Ciises (i4fi "Till; sums suliscribed may be, and ciftiMi are, dillerent; but none of the numerous books cited show that tln! liiiht of con- trilmtion has cv(U' been su}»po.scd to arise wilhoiit the sul^ject- matter insured t}rr)ig exactly the samt'. in each jiolicy." (G Cowen, s>i,,rn , "> l[iil N. Y. 298.) Nor •Hill LDiy one. policy take precedencf in chtiwj lui eon- fi'ilnition- froiii. or at the expense of the othei's. (24>IO. 15000. The claim of each contributing policy ujtou thu others (,s' nj eqiuO force, without reo;ard to the amount or the S])ei'itic stipulations of any one policy not coutaine. 3003. Tnasiimoli as the contribution clause irinrcs Kolely to tliti benefit of Uk; coiiqiiuiies, as between tlKanelvcs, it is II K 1,1), tliat — "In no case must tfii.'-- clau-ic be construed in sucfi a nmnnci us to tlirow IcfH upon the insured, iiguinst vvhicli ]u' would have heeii fully protected had hits policieH been frw t'roni the claii.-e." (iJ045.) Bunyon Ins. 1.10 ; llure, Adjwstuiont of Fire liOsaos 28. !ii004. Although this (jlause is found in all English [loli cii-s, .sjjeoitied or avoriigo, it is virtually igiiuivd in })rac,i.ce by the, pvefionderance given to (vccrmje polieies, which, despite the covtrilnilion cliotse in both ola.ssos of the policies, limiliug the liability of the otlice to its ratable proporti.on only of any loss, compels such .specific policy to jiay to its lull extent before the average policies will contribute. (SKIl.) , •• Tliere seems ,soiiietliin<; inconi|>reliensili'e in two |iolieics covering, in ucotnputalile proportion, the same risk, uni' of which mu^t stand the brunt of thi' los.s until its .iuk unt be e.vhausted, betV.re the other cfHiies into oper ation for any fraction of its responailiility : and surely, it is worthy thr best cftorls ot all ccnineeted with insurance business to endeavor to e.stab lish a more ere Clause.") II— THE FRENCH CONTRIIUTION CLaUHK. 200o. " Should there be several insurance.*, the oompany, in case of fire, shall liear its pro}x;rtion of tlie los.s adjusted accordmg to the present jioliey." This clause, though nmcli more laconic, is to the same etiect as the English : the company will pay its proportion, of the losii. Ur — THE GEKMA^ CONTRIBUTION CLAUSE. 2000. "!• thf prcipert.v shall be injured in several companies, then this company will bear itn share of the loss in pro{)ortion to thr other aniounts insured, and in accordance with the conditions of the present policy." The import of this stipulation is that the company will pay its share of any loss with co-insurers, in proportion l:o tlu,' other amtjuuts insured; but such .share is not restricted lo the pro rata smn a.s the, amount of its policy may bear to the aggregate itisurniK'c. 71U rONTHlHlTION CLAUSE. (V — Tin: ii\Mi:uiir. coxiiunrrros' clause, lf(U>7. " If tlif :nH\ircil properlV) in part or in wliolc ii* i-lsewhere in- Hiired. .>r if tii( vaiuf ot llie properly on Immi nl tlin litn-' of tlic tire cxccpiIm Hit' arnouiit of insuraiiuc, or if any wlf innnnince comiitioii on iIh- part ot tlic ini^iirod is expresuly F|jecitieil, //'(/( the. ilitmu(in wi/l he nonle (jnod pr« ralo,.'' This form incliulo.H the avorajire clause, wlicthcr oxpressod or not, ,111(1 t'ompt'ls (dntributioii ffoiii the jhsuvimI us inidur tliat cLm.si'. Tho i.'oiiijiaiiy liien pays iis pro nda shure of tlio loss with the other contrihutors. It is viitually tho average dlaiise coiiiiiioii tn ill ( Vmtineiitul [lohciuH. V — TflE AMKltlCAN CONTRIBUTION CLAUSE. tiOOH. I '"inlilinii r;/' tlif /xilici/. — " III I'anc of any other influr.aiiO'.' upon tlic prupi-rty lierfby insured, wiieilier niuile priin- or ,- ot' thi-i policy, lilt iis.-iiM'cil .•^liiill lie iititji'il tu recover of ilii.- ooinpuny ii" //rmiff iiropiu-fioii of llii' /<»',y siiHtniiii il lliaii I lie ^;ulu iierebv insured lieiirs to the wiiule uiiioiiiit insiiret! llierecni.'' t200!l. iL is a noticeable fetitiivn in the histoiy of thr Ariierkan confrilmiion daum', when tir.-, a. i). lS41i, ae then in use, and lie treats them as separate proposition!^. (22111.) ;120I<>> \\i A, 11. 183G, we hiid in cmiuuu use anion.; tlie com[iauies the following stipulation : — " And ill all cases of iiifiiranoe this company shall lie li.'Jile tiir siicli rut- iihJi jii-oj,niii<>n of the loSH and damage liapptniing to the tuiliji'rt iiumcil) as the aim mill insured hy this cojiijiany shall hear ti^ thewlioh^ amount iri'inrod there")!, without reference to the dates of the ditlerciit policies" iiiOlJ. Aliout A. 0. IStjO, the following form was used by some of the coiupauied : — CONTUmrTIOK CLAI'SE- rl7 If, ni llic hfifipenirij; of any tin', the HHsnri.'il hIkiII Jmvc insurnnnp imiU'r a tlodliii;/ |)i)licy or ixilicies, not sptMiilic, Iml covninn i»ooiU t;(Mifnil!y, in vnrions places not designated, and u't witliin liinitn wliiuli inidndo lli- pre- iniHfs or iiropcrty luToin infiiircd, mucIi |)oliry, aH liotwepn llic n«-iired and tliis coiniiuny, sliili he considert'ii as eoMriii;; any cxconH ol sonnil \ulni' of thp s
      jeot infured. beyond the nnioiint covered by thenfiecittc inHnraiiceH • hereon; and to determine llie amount for which thi.s company in halilf ui case of Josh, Mich floatmj; policy Hhall in- con-ilderf 1 an iM-iirnnce ot\ the jiroiierly to tlie extent of such exccHs" (Merrick r. 0. rniania '/,(/. Com , fll I'eiin. Si. (1 P, F. S.) 277. 20ia. Tl.e .'ffect of this .stipiilaliun will 1h; fouii.l fully ex- lilaiiici] under liULE Y. (2ISO.) it roinaiiiod in uho. until thfj ])ri)inulo;iti(tn of the N.vtion \l Boaud finin of the iontribafioit, (■Iti'isr, tho elf(;cL of wliich, tin 'or ccrtuin (.'ivcuiiihlanciiS, is to coniijol till- instircd to Iwar portions of the loss ; thus totally .sulj- Aei'tiiig tlie original intent and purpose of contrilmtion, by making the clause operative between the company .uid the in- j^ureil, when it was intended .simply for the relief and iO('iiminn(la- tion of the comi)anies themselves, "the insured bc'in/i alh)2. 2011.) 'lOISi* Tl>e uncertain wording of this >;ational l)o;ird clause has given rise to considerable diseussion a,s to its true ineaning iiiid etTect upon the (X)ntributive liai.)ility of non-coucurrtiuL policies. (1.) The advocates of the Finn Rule (2KHI) nod the Albany Hull (2114) eon.strue the stipulation to he '( positioe eoiitract, hiuillny upon the insured as tvdl «.-.• the co-in'^uriw} offices, in all cases, wli(;ther of partial or total los.s. (2.) While others hold that the wurds " )io grcnter proporHo-n of the loss sustaimd " are sim]ily equivalent to " ratalde i>ro- porfion " (20.>0) m the Englisl) form, and refer lo the lutal ooinril)utive liability of the policy, whatevei that sum ni!i\ be. (3.) Others again contend that inasmuch as the contrdjution cloi'se is operative ordy in cases of partial loss, the words " amoirnA hereby insured" are equivalent to '' ratahle i/rojuir- tion," and refer to the loss which brings the clause into opera- 718 CONTKIUUTION CLAUSK. tint), oiid Mot to tho finioiint insured a^niiist souk* inertly ("w- silile tulul loss, where Uie eluii.se wnuld lu' inoperiilivd. SSOI I. As it cliiuse, ill I'oviu (ilniuxioiiH to no many <:n\\.. flictiiijf ofinstructions, does not e-onvoy ii corroiit idea of contfi. fmtioti iis sanctioned hy lony usar.'(>, proeedi'nt or \e^n\ assf fu and as tijodiug, in its |insent I'oini, to narrow tla; lorcc und limit the ran The operation of the coittiUnition c/a".>c Juiiiting the liability of the ofhce to such proportion only of thi; le,?^: as the anidunt of its policy may bear to the aggregate concurrent insurance iijion the sanu? subject, and in partial lossi's unlv, becomes of the nature ui (jencralavcragf, the legality of winch, properly applied, has never been qi ^sthmed ; but \xh forced in cases of total loss, where there can ' v •ontriliutnm among ee-insmers, it is a misaj)['lication > uu iple, v ln' '■ canuiit (ail tn wnrk injustice to the parties 'lerest, and hen v becomes nie«_'al. (204I.) Conn. Fire lus. Co. v. Mer. k Mt'oli. Ins. Ca., S. C. A.. Va., 1,51ns. Law Jour. 615. CiiNTUlUI TION i;i-Al.'ai!!. nt I' HlHUruilCf us. Law Jour. 20I7. Siiur the first pr<>miil;,'!itinii of tli.' N.VTIONAL r,(i\i;h loriii (.(' |i'iliry llu', fnlldWiii^; Imn tn't;u .M>'d ■ — " .\ii.l It iM l.erctiv Jci'lHrrii uimI h^tiwI lliiit, iii cii-^i' ul ih.' hhhui-CiI lioU- Inn any otlicr p.)li<'y in liii-- or uny oilitr compiiiiy <«> tlif |,n.|.,'rt\ in-urt'il, siil>jf(i '(• lilt* i!(iiiiliti(jM« of ttv«ru«e, thin policy wliall Ix' hiiI'.I' el to uverav5« ill IIIm' iiiiinnt'r." Liv. I.r)ti(l. \ Ulolw Iti.M. (;i). /). VurJiercr uL, H. (J. .\li« b., 5 lii.-i. Law Juur. (JC4 ; (i /./. iO'i. 24>IH. This slipiilatiuii is tiil<(.'ii I'mtii Ihu Kii;;li-!i jtulicics, whcrt; il wii^ iiitimlnrcd to niri't uinl coiintei'iu;! ctM'tairi olijcc- tiotiiiiilc li'iittiTDH ill I lie I'Vactice of loss iulju^l iiiciiIn, wiicm fiveriij^'e policies aw in coulact with sjunnlic, wli(!ivl>y ihr-c liiitor •aiv U) 1)0 first ".xliiuisilfd hctoro the funacr oun hu ciilli;!-! upon to contribute. (2I«I.) riiiU'r the npevation of this stipnliition fill of the ]i'»lieii'8 luconie subject toaveruye, mul oniise(iUenlly to till' Siune liabilities iti the adjustment. It- iiiLrodiielioii iiiio the poli(;ieii ol' this country wa.s cvi- dentlv willi a view to uuH-t the oiitimlioii ot the average ton- ditioiw of lioaiinj^ policies of Kiiolish agency eniupaiiies, winch rfiull it cilects ",(/// .'li enougli Wt cover the whole losH ; and i.ius, wliellier sucli coinpanie.w ha,! knowlea^e of all of tl>e policies exiHting at Uie tuiu". or not." FiU3immoii3 v. Ins. Co., 18 Wis. 2'M , Uunyoulus. l.'U, 133. "^nipvi 720 CONTEUJ'JTTON CLAU8K. iiO'-ii' '' 'I liero is no contiiliution littweon coii)|ia!iiefi \.ii;rc |iolicie.s ooiitiiin ilii-- I'lau^o. iCiiny oiio compniiy p;iy iiioiv tiian ils prn rai t sluire, its rciiifilv n against the insui'fil. Over |iayiii«'rit liy iine f:i>iii|iaiiy 'if no tleffii-^e to uii action i>ii ariotli»<. {t\i\\H et xcq.') *2{y2'>'r. '• Wlu'ii, however, thci' arc several jiolicie.'^, xome of ivliieh ijo aiiil is will Ik' a liefense for >jO inncli in ,\\\ action on thi)se policies Ci.>ntai:iii,_r lheelt;u ilicies -.vithout t'le ciaii.*e have paiii Hii.jngh tn cover the loss, it is a complete defen-ie for the other-, as to the insureii, f.ir tliev are liahle ir) <:onlrilmte ti) those companieswhich have pan!, tu eipialiy,e til.' loss." (Lucas c Jetl'erson Ins. Co., G Cow. N. Y. (k);').) 2024. 'The onn.s of p'-ovini: alVirniatively that such other pdh'Mi.s-, .hil lint <;,nt,iiif \\\\< chiu.se, lio8 with the company so asserting." ALtl»ni(iN-Ah STiri'T,.\TIOXS. Some pfilieies contain the t'ollowing n'nlitioii.tl stiiMtl.itious .- — 2025. I. " Wiiliom reCereiK o to the sulniui/ or the liahilHn of ,-itin'i insiuei ■-." S\ich a pr tvisjun ji.s Ld the policies of r/i.«o/i'eH^ coiupiiineH is unnecessary, as the insolveniy of a r-ompany ihie.s not jn. valiti.ite its policy: aii'i all 'xdal pnlicii-s inn.st lie held to contribute, a-^ hetween the nisured und the iiHurer.s, to then ftdl aiiMinir, whetliei' the (;i.'inpaiiy be solvent or nut. (!HI7. Tl.o piKvi.^ion compelling contribtitinn trom CM-in.stiruiLr polieitrf 111 their whole amounts, without reioiencc to then several sj>rr[nr liabllUics, is, m its luoical result, the AUiawi Rule. (2111.) 202(i. 11 ' Anylloatini; policy attach itig, in wliole or in part, to tin profii rty co\ei'eii liy IhiH jiolicy, shall, as between the insiireil oi.l ihis con, pany, be conKiiiered aw conlribiititijr inenranoe to the /'»// amount of suci' policy, ainl liahl" as sucli Ui pay ^//i' rata any loss, total or partial, on tli'' properly hereby iii?iireil." coNTuiurnoN clai'se. 721 hPf Jmlicii/S dill Tlii.s is tho ahove-citeil condition i'liVtl^) tixtendcd, and i^ oqually douhtfid, as between (•ii-iu cnliod upon to contribute to a ^'cneral loys beyond its true iv.inhle proportion ol' tlie concnrrent liabibty (2JM>'J> ; and ihi'ie are cases in cvery-day practice win re a flMaliiiu'or general jwlicy m;iy become exhansteii in the jiaym-ul oC Us (.wn .s/jec//?'.c liability (;il>7, aj>«4;, .so as to l)e unabl,.; to respoml to any fiirrln r a«s"ssnient with concurrent in.siirancc upon other snhj.'cts. (Ii>l>;>.) This stipulation is modiliid, how- ever, by the woi'ds, " ai h'.tiuren lln- iiisurcil an'l thismrr ;Kiny'' wliirh release's the co-in-iurin^ policy from, all but its latnlilo ]iroportion of the concurrent iusuranci. after ]iaynieut of its own specific liabdity (aii /I), if any. an I throw-, the consequent deficiency in cniitrihution upon the insured. Tlie legality of such prnccL',din!^f is, at least, iiuestionalile, as the insured is not liahlc to contrihute nnles.s made so by express terms of the jiolicy. It was foi'merly cu.stora ivy in r'ai'^Ltnl to adjust under a similar clause -ah hcf wee ii the nitinj' ni'iei^, Mi'. CiliilsuL', th(>n of the Situ. Fire Ojjiee, says of it— '2i}27. '■ fi u;n oiily a fox y^>ar- a<4 i ^iiic<> an olTi.'.'.' \va-( calici M|ion to |.av til- unioimr of its lo-ss (not fX(efliiig the ^'iim iiisim-l), ,,/» ittmn inA ineiifii'iic'l ill ihi' sjiccifiviliiiii (if uiiothir ji"tii'i/, i\>- well its bhare ot the lu-s on the iiitn iii-ui".| liy li»tli policic-s, in tiic [ "other insurance," (!»I>7, Unn fur authorities.; W "'^f^'mr 722 CONSTRUCTION OF THK CLAUSE. 12020. IV. "All oilier ii iiniiice, in tlie same or oilier i^oinpmiies!, wlii'ilier \'\ ilie same or other piirtie.'* or persons liaviiig joint or tiepiirate interests in such iiroperly, " etc. This ces, prevent the makii.g of several paymonls tu as many parties, each to the full value, for the .same loss. The only drawback would be, in cases of non-compliance, where the insured might plead want of knowledge of or control over such other interests. KEdAL COXSTKUCTION OF THE CLAl'SE. ;t>0:UK A.-^ the '.".'iirts are the "last resort" in coiitesteij cases, and their decisions final, lience, the tullow iu'_;' r"/r/)f/N are citnl in support o{' the i'oregiung inleipretalious as Li the true intent and operutiun of the contribution clau,se. tiO;$l. (ipinion by (iRAii.vM, riesitlent Judge, Kli»th Juiltriai Circall, Vcmm., whi.'h covers the entire groin ' at is.sne as to the constructiun of the fontrihuflon clurauce. The biiiM- ing \\Ms sul.)sequently totally destroyed by hit!. I'hilips ' P. f M. Iii3 Co., V Phila. 07;!. COXSTKrCTloN OF THE CLAUSE. 723 The defendant coinjiany's policy contained the following provision : — "III all cases of other ins-uraiic' upon tho propei'ty hcrcbv iusiire.l, wliHlici- prior or sutHt-quent to the diiie oftlii^ policy, "in case\,flu.-^.H or liania-c l,y lire, tlie in-iire,i sliali not be entitled to demand or recover on tl,i,s policy any v'l'eater portion of the loss or daina-e Lhan the amount herebv insured .-hail hear lo the whole an.onnt insured' on said property.' tHr.tti. The Cuurt say :— "The only ,jucst!,m presented is; What amount the plainiilf is entitled to recover on his policy V The phiintitfclaims the anv.iuU insured, $2,.iG(! 'Jhedefendani aHe-esthat (he pluintitr can only recover |l,y:{8.77, or al niO!=it,f2,U:i," '^'''t' am ,unf ins„re.l in b>th companies 'is hut $;i,ti6(;, so that tiie \^ h.jle insurance i> insured hy It, and the pro rata to he ascertained thus; A-- $l,Ot)(), the loss, is to .tili.fiiJii, the whole amount injured, so is SJ.liiKi, (he in-tirance by the' defen iani, to the ainiunt it is liable to p;iy uii hr the proviso. This wouM reduce the liabilityot,lelen lant to.?.', U.l.jx. Th. rtnult thmprod.un'd would he nnjx^t and ine.pnt.dd,. Tlie assured -ave his premium note for ?>2,(i(;(;, paid his a.s.se,ssi..enton that sum, receued his policy insuring that amount' and although lie has sustained a los- e.x(;eeding the insurance in hath com- panies, the defendant .lenies his liability t,o jiay the sum insured. The pmriso ill (he pot;,;/ ir,,s ,ij jri'at a wroa)filHt,'x i,,op,v/h.,i,(/ ,il,,,>rmnitf'i,i- rontrdiiiti:,! in all cases m which' the latter would othenvi-e liave bet n reipiired by coinni tn law Aii>/thi,Hf shi.rt vfiiidcmuiti/ trmt/d m t bi- just t<, thr m-siired." 20.'t4. "' r (ind it very clearly ruled in cases of dnuld.- i/i.-mrnnre, whether with or without the clause m plaintiffs policy, thai in no ca.«o can the assured recover (iiore than his loss.un.l in oil rr/.sv.s wli.'n Ihc hss u e>,nul t,< or ijrt'itev than flu uiii'iinit nixnnd l,i/ tlu Ktiinnl pdiciu.i. there can hr iM pro rata, but the .vtc.-v,/ n„d, nc,il,:,s art linld, for the Hteeral .sum.i incurred." 20.'J5. '■ In tlie case of the Riclim >n iviile TTnion Seminnry r. Hamilton [nsuranoe Company, I4 Gray iMass. Hep.) 4611. The Seminary building; 724 CONSTRrcTION 01' THE CLAUSE. «af of the valiif of §24,000, und wii" (otally (Ic-^lnivt-d. Tlu' ili't'cniliuit hinl in-'iirc'l .*i>.000 iipuii il, ami tlio |)laiiitiil lui'l s>ll,(H)0 insurance olIuT tliaii tleti'iHlunt's on thf |)n)|)eriy, tnakiiii; a total !■ tin f)ilf kukhi.hI nf its iii.^unutrc ($.'(,000). Tlicrc was a i;laii.--(' \n U'tt'iiclaiil'r. jnilicy similar to tlic proviso in this (;asf. To apply the ()nncipal contcinli'il liir in tiiis itaso wonM prnilnue the- I'ollow- ing re.siilt : As $24,000. tlio loss, is to SI 1,000, insiuvd. -o is $:{,000, iii-iucMl bv tlic cletVnilaiit, to its iialiility. Tins woiiM rt'iliKv the dcreiiilaiil'.-- lialiil- itv on an in^nranre ol $'■ 000 to $1,7.jO. The i>iii'inti>>n (;/' //i/.v jirimijili: ill I'lifir iif 'tiiiililr iii-fiiKUirc iC'iiild (le tlitti tlie . •' Haiin '•• Dorchi-ter InsuriuifC Company wn-' a oa*!e of iloniile m-uranco. with a clau-i' in the policy of like impoit as in this ca.-c Tnc tlctVniant insured ^^2,0011, and thcie ui-reoilur in -urancrs of «<:!,nilil. 'J'lic loss ()f the as-^Ul'f'd was ift.'), ii . I1kii«; Tim/ il'/riiilun/ ir7. '-Ill the case <,if /lima Fire In-uraucc Company (•■Tyler, lii Wendell'.- X Y Hep. 400, Ciianoellor W.vl.woitTil, in speakin,:^ of a siniilai lausr' in the policy, say.- : ■ J'lie plain and oh,iou.~ meaiiiiij: of the .vliole clause is, tliai it the assured has any i.ither policy oi in.-uriUi,:(! upon the projierly. u\ a-sii/nmenl or otiwrwi^e, hy udiicli liu i-itere^t intended to be in-iired is already either wholly or piirlially protected, lie siiall (lisclo.^e that fact an I lia\e it indorsed on the policy, or the in-nraucti shall be void i an I the same rtlierc he shall make iinv sulweipienl iii.-urancc ; al-o that, in ca-e ot any -uch prior or siiliseijMent i!i-urant:e, allhoiijih it is Tiotiticd to the companv and indor.sel on the p dicy, /fic tinilvrirrileifi in tin- hi'i, iiiilifiis kIiiiJI rt.iitrilinii: fiiliilih) la llu.s lufs, so that in no event can lie recover nwne than the ;. mount of liis actual lo.;-.' " ■ U()!t ..iv.; iiisiniiiiri , when he -^ays : 'In the ca-e betiire us lijerc is iioovcr-in-urance ; all the policies, it' paid, will not pay the loss -^usiameil by the assured. ..I i;iliidnliiiii. //iifdj'iiri', wliii II will cut down piiyimnix, inn.it iv hniicd e/i errumouti jiriiiviiilis.' CONSTRlTCTrON OF THK CLAfgE. 79; -040. In a.|,lii,o„ to ti.e .■a8(- eito.|, [ fi,„i th,^ rou.ts of Marviainl an,IM,s>o.,nh,ivea.i,.j,t,.,.],l.e.a,nen.k. of constructio,, a.s that of'Xcw iork nn,l Mas.n,:l,us,.tt8.-tl,at wJ.oiv tl>e poliov ,;onlai.,s a .-la.i.f. that "iKM-e there are oil,.,, insurances upon the sau,o ,,ro,,ertv, inca.o of I...,,; Mu.a,s.Mre.i.hallno, recover .n .1,.. particular poikv anv greater p„rno„ -t .h<. N>. .u^ia,ne,i than the a.nount inM.ro.l bv the particular policy shall hear ,o ,1,.. who e anumnt injure,! o„ the .a,„o propenv, th. srnral undn- ,vnt.;: „r. hnUejur ike .sorral ...nn, u.mr.f, ,rh,n ra,uired to hulemail), tkta»Hur,,IJnr the h.. ,„,tah,,d. ^ee Angelrcit .. De'awar.. lu.un.nce to.npany Suprenie ('our, of Missouri ; JJaltmu.re Fire J.,.urance Company 0. Loiiey, 20 Maryland J!ep. 'JO, lsU2.'' 2041 "To n.iop, the prin.nplc the .lefendant cont.e,.,is for, that the .H.lervvnters shall receive an ahate.nent from the amount insured, in the sune proportion that the whole amount lu^ure.i hears to the loss, ,r,.„ld /.- .yla,jnr„1ly nu.pniuhl, and vnjusf, thai 1 fullv concur with the ruling, of the >everal courts iti the cases ciieiJ." "' aOltJ. Tht" rase in suit h.-ro Mfis ont^ of tnfal to.,.,, wlieiv tlie insurer claimed contrih.ttio.i f.uiu the ii.smvd in the i,r„. portion ihatltis policy bore to tlu. whole in^nranee, iimler the routnhirfion clover, which was inatJe a condition of the policy The ground of the adverse deci.i.tn was sunply that contnbutiuu wa.^ inoperative in the tuseof a total I.is.s. uoo *JO 8:$. in 6 Cowen, p. 025, altove cited OOSjH), the trine is — " That no arraugement, of the clauses in the policy .hall be «se,l to he, ^.v.i„tageol the insure,!; ke vu.st H, pa.f, and t/u dispute, if an>,, Oe ,wlt/i:d Indww.n i/n; luulerwriter.s." (2105.1) 20 1 1. In the case of * ludin v. London Assurance Company 1 r.nrro 489 (heforo the inlrodmtionuf the ':oafr>huthm vlnn'^e ■nto li,-o policies), i,i a case of double insurance, where the i„- ^>n■ed prcjceeded to collect all of his loss from one of the insurers Lord MANSFfKLO said :-- ' " As between them (the insnr. r an,| the insure.l) and upon the foofinc- of ..■onunutatnejuslice merely, there i. no color why the insurers shouM not pay the ntH.nd the ,rh,d, ; for tlu-y have received ^,;-.,« /to. fbr the a-hnl, r i H K , Marsh, Ins. 120 ; Weskett Iti3. 183 : l>ark I.13. :'84. He adds, spoiikini,' of the co-insurerrf ;-_ 726 RATAHLK PUOPOKTION. " However, //' tlieni' urnlcrwriters are liable to coiitribiite at all, tlie con- ♦ ribnticii ought to be among the set^eral itisiirers tlieMi«elvf;H ; hut the insurcil has a right to recover the wHoi i. loss frum the df/eadindn u|X»n the policy now m question, by which the\ arc tujiinil to pay the mhnle.' " Therefore, upon these grounds and princijiles, in every iHfht in wliich the case can be put, we are ;ill of us clearly of the opinion that the verilict is right, as it now stands, for the whole." (!i)81>.) (.Tark Ins. 284 j 2045. From this decision of Lord Mansfield the following rtile luis obtained in Knifland; — " In no case must the contribution clause be construed in such a inanner as to throw loss upon the insured against which he would liave been fully protected had hie ptilicies been free from that clause." This is equivalent to tliti doctrine enunciated in 6 Cowen above. (204.3.) " RATABLE I'TtOJ'ORTION " AS DISTINUIMSHED FROM I'KO I!Ar.\ I'ROl'OKTlo.V. PRO RATA PIKM'ORTION. Strictly speakin;,', pro rata and rivtaljle are synonymous ; but to illustrate the iinnci})le of tioating policies, these terms will 1)0 used as representing different elements. (2200.) Jiatiijile lialiility to the hifiitred under compound policies Class IL I'uo KATA, liability to ro- insurers. 20 to. Pm ruhi proportion is snch share of a loss as the amount of the ])olicy mtiy bear to the aggregate sum of the con- currcni tnsnrance upon the subject at risk. This principle ftjrms the basis of the contribution clause. ('21.17 ef .sc^.) 20I7. It is ojierative to its full extent, and ahvays. only in ca.ses of concurrent insurances, either in spticific policies or upon concurrent subjects in cimijiound policies. And 6^^ in no event can one policy clairn from another policy, when thus concurrent, more than its pro rata *i/«/)''; of the coatrihatioii KA.TAI1LR PROl'OKTION, 727 to any los.9, j^ (fvim should ono become exhausted while another makes a salvage upon the same subject. (IIMMK) IJut, while the compauiest are thus limited by the contribution clause, to the jivo rata shares of each, the insured may, under ccdaiii contlnyeihciefi — as when the compound policy has a spir/ijic item of its own — claim more than such pro rata share from any floater, should It be n.eccsnary to complete Ids indemnity under the policy, (ai«l>, 2I!>3, 2ai». atilJIji.) 204.S. Hence as the pro rata proportions that the sum of any given compound or floating policy may bear to the aggre- gate insurance upon all or any of its items, will 7iot always, aud under every contingency, afford to the insured the reijuisite share of indemnity due from such policy, to make full payment of the loss thereunder, it is evident that pro rata 'proportions alone are not reliable in all cases. (2Ii57.) 20 to. In the failure to recognize and provide for this con- tingency, so that the rule of proportional payment of loss may harmonize with the obligation of the policy to pay to thi; extent of the sums insured, the National Board form of the confrihu- tion clausa comes short of that comprehensiveness exacted by the laws for such restrictive stipulations. IIATABLE PUOPOIITION. 2050. Uotahle proportion is the amount for which a policy tnoy become luible to the insured (2047) to contribute to the payment of a partial loss, upon all or any of its items, in addi- tion to the pro rata share contributed with other co-insuring companies upon concurrent sahjects uiuler the contribution clause. It arises from the nature of non-concurrent policies, especi- ally as e.xemplihed in compound insurance, CiiAs« lL,in contact with specific policies upon the same loss, where pro rata pro- portions of all the co-insurers fail to give the requisite indemnity though there may still remaui some unexpired insurances. From this it is evident that the basis of contributive lia- bility is two-fold : — 728 RATABLE PROPOimOK. :205l. Firt^i (and ill ways) : TiiK AccrKri.MR amockt of THK rO-IN.SURANCE. Tn ran cur re) it iiistmiiico, specific or compound, the ra^^^/e pi'uportion is always based upon tlm aggrfujate union id uf tho eo-iuHurance, each being liable for its' pro rala shai'e in the coTjtribntion as far as concurrent, or when a general loss is par- tial only, so that none of tiie insurances are exhausted ; iu \vhi( li cas(> tho pro rata of the hMurance is. the lUtable jiropor- tion of the policy ti; the loss. 3052. »sV'V*7?<'/.- The asckuta/n'i;i) loss, wiiich bec(jine3 opevaiive as the basis of apyiortionnient (and re-ap})(a'tionnu;nt) of the in>:(vra}U'c ujuler conipomid policies, iv till ca,i<'s {'2Ht-l) bill more especially under non-con current policies, where the rololile jyro})ortio»s will always dejicnd ii]inii the lespectivo liabilities uf the several })olicie.s upon the general or concurrent loss, and not alcne npnii the pro rutii amount of the aggregate insurance. (3152. 22i:ta.) For a clearer cdmpreheusinn ol these ])ro|iusil inns, reference is made to the sevend St((lfriii'vls under cnnipduiid policies Classes [. an«l JL, where the a[)portionmenls are all made in obedience to these ])riiu-ii)h s. Sfnieiaoits \\n. anil xx. are especial exatuples o{ ratable proportions, as distinguisluHl fmni pro rata proportions. EXHAUSTKD POLICIES. 20fi:{. The status of nn i-.vliansted polic;/, as to UahiUfy for subsequent assessment upon the rcnMindrr of unpaid Ions, is as if such pcer- assessments to the; true ratable pmpovlioas to corre.spouil with the sum or sums n'-a.ssossed upon the uu- exluiiisted policies. UNEXHAUSTED I>'SURANCE. iJ051. As a general rule unexhausted policies rcinain liable lo their full extent for all joijiaid indemnify, though they may or may not be concurrent with each otln'r upuu all or any of the remaining subjects. When nun-coii.citrrenl they are l^rought m\n jtra nda contribntiun only through their lia- bility for nnpaiil iiidt;mnily iidierited ivum Mreir original roii- currency with dd'u'.ict policies, and are l.i he reached, if at all, only by re ailjint incuts under such defunct policies, ofler all concurrent insurance has been fully approjn'iated. For an illustration, see Statement xii. fiiSOtl.) ItE-ASSESSMENTS. 3055. Ue-assessments are made oidy for the benefit of, and to give full iiidenniily to the insured. No one comj.any can cliiim conti'ibntioii frotn another co insurer, bevond its /o'n rata propiirrinn.s nuilcr tla (Utribiition clause. (2017.) The ni'C(!ssity for re-assessments arises when totallv m jiar- tially exhausted policies leave unpaid indemnity upon anv sub- ject.>, to hv. apportioned among nunaining unap])licil insuraucf. Occasions where it may be necessaiy to re-assess unexhausted 730 RE-AD.iraTMENTS, i)ii^arn<; cotnpiiiit's, wliicli will not iiiiloMiiiify tlic irisnrcil lo tlu' full amount of tlic iiiHiirHnoe,'' — tliat in thu investii'alion of the liabilities of unexhdnstedirisur- a)ices. upon remainini,' unpaid losses, its necessity at times becomes not only evidcMit, b>it exacting. Whtn v)ii'xli(iv.'iled insiiraiieeleawH unpaid indemnity upon certain suiijects under the protection of the insuruuce, upon which none of the remaining i)oIicies may be directly liable, and such unappropriated insurance cannot l»e biought, through its original concurrency with the exhausted insurance, to apply dirrctl;/ thereon, the loss of necessity falls upon the insured, as contribntion is exhausted ; for no policy can be comj)idled to contribute upon an item that it does not cover or caimot be legitimately made to cover — a circumstancf^ h(.'wevor, that sel- dom occurs when the loss is within the amount of the aggre- gate general insuiance. But when, by any appoitionment of the insurance, or sub- sequent re-arrangement of assessments already made, such unapprojiriated insurance can be made liable for any unpaid indemnity, such re-apportionment becomes simply obligatory. tJO»>y. Re-arrawjcnioit ofoHsesstnenls is iisuallij conjiiied to totally or partially exhausted compound policies; any change made in the unexhausted insurance is simply by addi- ItK-Al'l'OU'l'IONMKNTS. 731 wliicli will liojial assessnionts thoreon to thy requisite aiuounts upon ih'.ficieut subjects, within the amounts of the several jiohcifis. ftjaofl.) Ono re-arf(iii(ji'mc>it df asscssmfints may nt'ccssitati- a second to acttlo the jiroportiofiM disturVx-d by thi; lirst ; but the prinoiplt' will be the same througliout. SiOAM. The jirocess of rc-arvanr/emtnit consists in first tak- ing a rt'qaiHlfe sum— as all or as much of the unpaid indem- nity u]ton any deficient subject within the amount of the [idlioy — from one or more items <^f t\w- exhausted coiUjyDinnl policy concurrent with the unapplied insurance, upon whicli there may be an excess of insurance, and uddino; it to another suljject, nou- coucurrent with the unexhausted \)i}V\vy al) ait to 1m> reassessed, yet covered by the exhausted policy in which the change is to be made, thtis creating,' a deficiency of pro rata contribution in this latter U].on such first item concurrent vifh the nnexhaasted insurance, and to be made good by it witliin its limits; the deficiency caused liy such transfer from the (loafing insurance to he filled by an increase of jiroportion of tlie co-insuring assess- ment upon that sul)j(!ct, yet making w dill'erence in the aggre- gate results of the exhausted insurance, which has l»eeii iieirlier increased nor diminished, but simply changed from its pro rata to its ratufde proportiovs ; and the insured will havr received further indemnity to the amount involved in the transaction. As it is impossible to make the process clear bv -^imitle description, reference is made to Statentenf xii. (aao.l.) when; the operation is carried out hi extenso, which exami)le, with the foregoing explanation, will render the process plainly intelligible. From these citations we gather the following to be the true. inte)d and operatlni of the mntrihidlou. dn.use in the apportionment of contribiUive liability among co insurers, upon an ascertained general loss, as recognized by our courts. FIRST: AS TO THE INSUHKD. 20.T»». The insured must be paid in full fur all loss or damage within tlie amount of insurance, and he is not liable to contribution, that is, ho cannot be called upon to bear any 732 iJONTRIBrilON CLArSE, ]M)rtion of tlift lo.s.i wliilc fiiiy nf the iiisiimtico, sftoi-ific or mtn- poiiiid, n'djiiiiis un(i|)|iliiiil to tlml'iill ((xLuiit nf its liuliilily, ('.frr/)f, when tlic policy or any om^ ot tlicni may ho subject to iivniiine liy s|)C(;ific sti|)iiliaioii, wiiidi will lie oiiciiilivu only m tlic polii-y coutuitiin;,' it. ( III.H.I. ai« I. 2I«.V) !ti i)i.. ('JOajJ. '^O.'t.S.) Or, in oiiier words, when \h>: younil loss oxcecds the anionnt of eoneuirreiil iusnriuK'e, the principle, of yj/'o mfd Ujii>orfioinu'-'iit is not applieuhle. TII11!I>: LIAHII.IliJOS 01' Till': rOLlUY. mUV-i, Kiicli contrihnLini,' jiolicy, speeifie or eonipoiind is li.ilde to 1)0 assessed pi'd rata upon cai'h item of concuireiii insnrancf under its protection, with each eo insurer, until ex- hftiisted if iieces.sary, or until the general loss sliall be paid. ^pecilie items not incluilcd in the donhle insuninci!, the loss njmn sui'h spe- cific item oi items ,>hall 1m> first p.iid, and ih" remainder, if ((»;/, shall It lield to coiurihulf with the double insurance jn'o lut'i. in the amount of such balance only. (ti070.) ti\vV..rli; "'I'lial a (i')licy i>n fir" anlijirt.'i i-i lo hi- ii|)|ili">l to t/w -i jturiili: fi'ilijert iiiilil tilt Uiss is paid aiul tiie aiiiuutit lo Ix- pivid upou ihi'jvint ."ubjecl is iliviiii'il APPORTIONMKST (tK INSURANCES. 733 bftwppn tlii> policrio-^ in fl)i> fi?f)|iiirt inn dl' llic iiriiniiiil nf (In (>r| iiimIii Jidliry it,ei' them may have snbsoijuently become insoiveni, (1S>7, lSy them. (t»Ol:5.) it may luiijjxni that the policies will cover some portions of the pro]H"!rty to an extent beyond the loss, while on other '34 UNDER SPECIFIC INSUKANCES. j)ortii)iis tli(! loss may exiieed the ag!»regate. insurance; thu apportionmcuL should li.'. mad:' accordiii.) UNDER SPEt:iFIC INSURANX'i:S. !20<>!>. Specijic, as applied to fire insurance, is relative oi.dy, and reiiresi-nls a certain sum upon certain property; but, unlike the average policy, it has \io proportionate relation to the value of such property, it is liable to the evtent of the sum covered l)y the policy (SOft)* and this prorata, when interested with cuii- ci.rrent insurance. Specific intiii rcDuy is of two kinds, differing only m the luau- ner in w hirh their several amounts are ascertained; but these suru,s didij ascertained, iliey meet a loss in precisely the same manner. (JtOS.: U<^TO. First: A simple specijic or fixed policy, coverinu specific items, in specific sums, in specified localities, and fiji spec! tied owners, as ; — Com|irviiy A. on who;U, ;?!5,0I)() tor Joiie*, in w reli'Hise, etc. \i. on flour. 6,000 do do " C. on do f),00a do do In the event of lo.s3 on wheat, the insurance being already determined, company A would pay the amount within the policy. In the case of loss on jlour, companies B and (' wotdd pay the same in e(pial proportions, their liabilities bein^' e^uul. 307I. Secoad: Or it may be upon a specific subject in a compound ])oiicy, concurrent or non-com urrent, as ; — Compntiy A., on wheat $r>,000 Coiiipanv li., on whciit and tloic fi.OOO In this examjile, Hoar in policy U is a sj>ecific subject (a.s compared with mheat), which is the concurrent item, tin; amouul uf insurance upon which, though not determined at the tuiie of insuring, is nevertheless yia:t'(^ the moment a loss occurs, and the \ > 'uR TlIK AVERAGE CLAUSE. 735 in the UiiUi- entire jiolicy becomes specific in ilie smas indicated l)y tlie ln^^s. Thus, should loss occur u])()ii wheat, S2,500, aud upon jiov r, S5,00lJ, B.'s ])olicy wduld at once hecome specific in its full amount on jiour, leaving company A. solus upon wheat. But slinnld the loss be S-,5()0 each on wheat and Hour, the policy of coni]>any h. would hecome ftptcific in these ]ii'i (portions exact- ly, and pay ir'ji.oOG on four as its f^pecific mlijn't,iin([ contriljute with })olicy A. in its ri:niaining 82,500 on wheat, as concurrent insurance. 207iJ. This example might be slightly complicated by adding uudlhcj jiolicy on wheat and corn. $5,000, in which event the sarat! course would be pur.su«.-d witli corn, before the contri- buting insurance upon wheat could be determined. (20H1>.) It will thus be seen that specific jiolicica and specific Kiihjeds in ''cneral policies are intrinsicalh' alike, and are to be treated in precisely the same manner. (20T!>.) 20TJJ. Apportionment under n])er[fic insurance or general policies when made sjiecilic becomes a sini])ie matter of value of the projierty lost or damaged, and the amount covered by tlie insurance, as insurers jay all damage sustained within the amount of the policy without reference to the value of the pro- perty at risk. If there be more than one policy, the loss is a])|iortioncd pni rata as the insurance bears to the damage. W'hen specific policies are found in contiict with compound insurance, the contriljutive liability of the latter cannot be ascertained until the amount of specific insurance npuii the general subjects .shall have lieen detcrnuned as abiive. (tJOTI.) UNDETI THE AVERAC^E CLAUSE. 207'i. Apportionment of contributive liability under policies jsubject to avera ;e will require from the insured a valuiilicu of the property at risk under the ]irotection of the insurance at the time of the loss, and gives him only such proportion of thn loss as this value may bear to the insurance, specific or in the ). thus inakinff hiiu co-insui'c.r for any oxcoss of 'jutut iIumv may be heyoiul tlio iii.suraiiot', and reqiiiriii!^' him to conirihul. !i!i.»!i.) Jn f"n;4lish practii'c the s/iivifi('.d pulieies (JJOS) ai'o mailc to ccntrilmne ro sueh deliiMency. ('-itJIil.) lathis cotuiectitm it has heen tritely asked liy an laigli'-li '<\ titer : — •' Willi whiit show ofjti^tii !• can the iii.-i>oiiii>)nnii nl-. undei oninpound jiolicie.s, confined to single or to coiicnrreiit jiolicies, aic. like tlic' specific, mere i[ue.-il ii III s nf vidue ; lint when comhiued with specific fnnu^ ur with other compound insurance C(.ininion in heavy btisiuess tr;itisactioii.-?, and e.-ipecially when sucii double lusiirance is iiou-cuucunont, (juestioiw of e(.j[uitablo upportioiiujeiit aiiiong I'NDEU COMPOUND POLICIES. 7a7 co^nsurerfi will an.^e requiring oaiisi'teralile familiarity with tl'Ms peculiar ciiaracLeri.stics of noQ-CH)iicurreia policies to solve nK'>KX\y when assuming one or auuthor of the prDtcaa forms of the compouutl puliey. aOTT. Most, if not all, nf the misapprehensiou and confu- sion aLU'inling the application of the principles underlying the contribulion clause to the apportionment of insurances under compound policies arise from a non-a])preciation of the distinc- tive jjecuharities presented by non-concurrent policies alfei'.ted by double insunuce, specilic and compound; alway,^ more or less prominent and vital to a correct apportiorament of liability anion^' co-insiirers. 207.H. The variety of existiric; kcles, lioth English and Americ;!.'!, intended to solve this problem, are so many evidences that these pfcnliafitics have been recognized; but the inade- (piacy of existing rules, to apply with uniform results in (dl mi^es, 18 simply fiu'ther evidence that these peculiarities have not been appreciated to their full extent, or, in otlier words, that no thoroughly systematic grouping or clfi,ssifying of compound policies, according to their several characteristics, has over bi'eu practiced by fire underwriters. 207S>. Paradoxical as the assertion may appear tf. the cursory observer, it is nevertheless true tliat a coinpiroad pnlh-ji ix simjdii specific ii)mr<(nc<' in the (I'jgregd.fc (SOT. 3I!>), requiring only the occurrence of loss upon any one or all of the several subjects under its protection to d(>termine its insurance hability upon each item so covered. (24>7l.) Liio]u- tiou t'i this vexed problem the fraternity is iiulebted to the researches, many years since (1862). of C. C. Hine, Esq., the WW '38 OO.MPUlNlJ J'OLICIES. veteran otiitor of the Tnf^u ranee Monitor of Xew York, by whom the several riskj5 were snlidiviiled into five cinsses, eriibiacing, ho\\ever, only the two i)riiiciples-^-oun(nirrent'y and non-con- currency. SiK'.li ('nncurrenoy may be general or 'partial. Class I. *2<>.S<>. (iKNKiJAi. : Where the compound policy eovt;r.s only and itifiiiioally the subjects covered iiv the "other insur- ance " whether specific or compound. Class II. SO.HI. I'MJTiAr. : Where the compound policy protects one or niurc iienis ivA uicludt'd in the "other iudurance," either specific or ci)m])0und. (tJOTI.) Thi^ will end^raee most of the non-coucurnMil forni.s of insurani.e m u-se. '\\'itli a view to test the correctness (,<" the i>reeeding projio- siti'in, and its uinversality of ai)plieation, a niuulier of exani}i]i;s of C/ft-sv'.s' r, iUid 1 1., illustrating the variiui.s jiliases and coiu- binaliuiis iif tlie compound policy, are ap|i.'nded, which, construed by till.' g-'iieial principles underlying this form of the iiisiii;nii:i; contract, may materially aid in removing the misconceiitiwn ,uu! confusion v,-hicli has so long suri'ound.'d this subject. (JJIS. CLAS.S I. GKNKRAL i:ONCUKl{ENLY OF SUIUKCTS. '20H2. This iv the more sim]ile form of (-ollective puhcies pres' iitnig little or no vane' y in its » ombinatious — its liistin- guishing feature being donhU; itisurance, whicli, under cotii- ])oniid insurance, does not differ from otlier doulle insuriuieo. i;t2(S.) It is the basis class of thi.s form of risk, Tlu' distinctive feature of CLA^^^ 11 a specifir; item not embraced in the other insurance, which is bui a i. idifi(,!ation of Cla.ss I., does not e.xiat in this form. 11011-con- COMPOL'ND POLICIES. • non t OJ EXAMPLE 1, iJ08; J. (\)iniiiiMv A covers stock *l,000 „ " ♦^'""'•«« ."."'." )m li " stock and fixtures i qOO In this oxaiuple company A covers .tuck and fixtures i,i specific or fixed anionnt.s, so that the insurance is evident l^rfore th(. loss ; while ompany B covers the sunie itenis generally both policies being C07icarr.nt on both subjects tfiou-'h in different amounts, hence .loui ]- insurance : the specific insurance upon (^ach or either by B will be contingent upon the loss. (Jiai. Statement xii. SJUU.) ^ EXAMPLE 2. a084. Company A cover, ^^h^'i,t iu warWiuuse No 1 :; f; '• " - no.' 2; ^ '■ " " Nos, 1 and 2. Here companies A and E cover specifically in the same local- ities where company C covers colle.tivelv, thus makin.r a general concurrency of ri^k, hence double insurance The contributive insmuncc of company C, upon either or both items, being, as m example 1., (.onting,>ut upon the loss this determined, the three policies contril)ute pro rata. Tl' m so doing, company C's policy should become exhausted, the poli- cies of A and B must make up the dericieucy ratably as the loss may require, as in mdinary specific insuranrc, upon concur- rent items. [2MO Staten^cnt xiii. 330», 3213.) 710 COMl'OI'NU I'OLICIES. CLASS II. PARTIAL CONCURRENCY OF SIJJJKCTS. *JO.H5, Eitibrai'injT amijiound puliciea covering one or more subujcts not ini.'liuk'd iu the "other irisiinuici'," hoiice oiu)' }iart'udbj concurrent. This is the more cura])]c'X form of conipoiiiui pnlicies having Class I. as a basis, and embnices tlio larger proportion oi col- lective insurances. Thr collective insurance becomes co-insiirer, when made con- current, upon concurrent subjects only, the amount of contriliu- tivo liability lieiug determined .solely liy the loss thereon, (!iJJ4.) Whi'U thus ascertained it will c(jntribute ^jrw ra/a, wuh co-in- surers, upon each item under its protection, as the loss tliereon hears to the aggregate insurance, whether specific or compound^ as iu ordinary concurrent sj^eciyjc insurances. As this class will present a variety of combinations, they will, fill (>onvenienre of reference, be termed FuUM.s A, l\, C, etc. ;»07. »a7. 2071.} examplk 1. Form A — AV). I. ti086. Con:pan_v .■^ cororH stock. " H " t'tock and fixtures. In thise xample, A is a sj^erijic jiolict/, ^vliilc B is a com- pound j)olicy with a specitic uem—fixturen (2M><»). Statement .xiv. (aai-t. aais.) EXAMPLE 2. Furm \—Xo. 'L 2087. Coiiii.ariy A covert' building. " J5 " buiMiiig, luachinvnj, ainl (■■ot.i. Here company A is specific on building, vvhil,; B i.- cow.- pound, covering concurretuly with A un tjie buihliuy, to the exientof 'lis lidbillly—'whcn aHcerlaincd — but having nmchrn- cry and fooh in addition., as ^jyc'ijic it.i'.uis to I'o first [>uid {bi. Statement xiv. (25J14.J COMPOUND POLICIES. U% EXAMPLE 3. Form B—No. I. 2088. ronipiiny A (jovers luerchandi.-K- nnil Jix/iires . ■' IJ " merGlmiidiao and (/ijtjils oa storage. hi this caao ]>oth A and B are compowad pofides, each havin<,' a specific item of its r.wii, not covere80 Company A covers jKirlc. " B " pork anil /innr. ^ " ix>rk ami yrain. " 1^ " . pork, //««,/• ai)d firain. This is simply Form V.~~Kn. 1, complicated by "double insm'auce " upon the specific subjects, }{.ouv and grain, covered by B, C, and D, which are none the less speciho because tjiey have co-insurers, and which must first !>; disposed of before A can claim i?ontribntiou from them upon its specific item, pork. (»a«), Sfakmmf xix. (,aaa4.) I his exampl.. mi-lil; readily be confounded with policies under Class I. But inasmuch as the concurrency is not general, it does not come under that class. EXAMPLE 5. Form B~ yo. .^. li05>0. Ooinpany A covers /w.'f ami Hiiirars. " B " Kiigars anil wiitcs. " G '" wine.-ri ami fin/t. In this example we have Form B~No. 2, slightly extended. All oi the policies are compound, but A has teas fJr a specific 742 COMl'OVND POLICIES. itom, Avhilo has fnh Hpccially. iieitlu'i being inolndtHi in eitlior (if t'lu) otlier policic'^' ami hnrnx! uon c(iiiciiire?it, nthciwise coucurreiit, and niust, coutribuU; upon Any biilan jih ufttT thuso sjiecitio items are ilisposed uf. it i^ oniuplioated by double com- l»ouii(l iuaurimcc. Tliis case iniglit be extended by adding rice to policy B ; each couipouud polic}' wnvdd tlion liave a sfii'dfic item to be first disposed uf befoio contvibnlion could beclaimiMl liy co-insur- ev.s upon coaourreut items. lSi!>1 . Cotiiparjy A on hooks, •«tftti(jiipry, fancy goods, and otUrr articlea U8U!illy ko|>t in such rt(ock. '• B on liooks, stationery, paper aiul jiiotures. •* C on hooks and stationery. " D on frchooh hooks. 30S>t2. This is Form 1? consideralily extended. By a pro- per classilieation of the liabilities of tlie several policies, it will be fouutl that — Company A as to company IJ has nm: spocifit; subject. " A " " C •■' tiro " .sul.jects. " A " " D " four " « '« U " " C " one " " " B " " D " three " " C " " 1> " fivo " " All of which specific items must be first disposed of lx)fore policy D can claim contribution from its co-insurers upon scliool books. ShUeiiuii.t xx'u (!4JiJ$0.) EXAMPLE 7. Form C — Kn. 1. 2093, Company A covcra Joiien & Brown (inclividital interests), oq stock " b covers Jonet., on hi.s interest iii slock. Here we have a comjtound and specific interest in the same auljcct; a slight i^xaminulion of which will sliow that the priu- EXISTING RULES. 713 ciplo involved is tho surne as in Kxami)le 1 (Form A—lVo. 1). The rPHpcotivo aiturests covered are those of Jones tuul I'.iuwn; consequetitly, as policy A eoven, both, if is the (•oiup(jiiii'l in- surance, its specijic itnv, being tho interest of ljr(.^^■n, wlial- evoi' that may be in >\i^ firm, and as ludicatt-d by ihe loss. E.\A^rpI,K 8. Fon/i I) — A'o I. 201)4. Coint-iiiiy A livestock, generally. " H " " nottoexoiPil $500 on any one aniniiil. *' C " " no one aniniul to he valued 111 mure tliaii $,VIO. Fere company A covering without qualitication as to value bocnnie.s of the nature of the compound ])o]icy Class II.. and floats witli any losses to make the indemnity complete within its amount should the limitation clause wf the co-iusurers B and C cause a deficit in the pi'o rata payment of any loss. (-214.) SO!l5. Other modifications of the two classes u.iglit be given ; but as no prmcij.le would ])e eliminated n(jt already found in the examples cited, it would .-ieem unnecessary , es- pecially as adjustments, with full explanations as to the oyiodiis operandi, will be found in tlie several Statements illustrating compound policies. EXISTING RULES FOR THE APPORTIONMENT OF INSURANCES AMONG OO-INSUREBS. tiOIMi. Notwithstanding the existence, of a number of rules or methods of apportionment of contributive liability among non- concurrent policies, there is no generally recognized uniform system of apportionment in use among American underwriters, the entu-e matter being left to the adjuster to adopt such method as may seem most advantageous for Ms own company, or as 744 KXISTIXi um.KH. niwo caprice may dictatt';* not iiiirnMini'iitly rosnllinf,' in injustice to tin; iii«iir(Ml, or (<> oo-insuriti},' cfniipanios, or to botli, iiiiil as fnqiH'iitly cndiji'j; in voxatioiiH lir.v .suits, as well as lasting injuiy to tho reputation of the i:oni]uuiy. 30117. Tlio followiiiu; art' tlu) more prorainont and oUU;st " t'Msting rules '" — I. ItiADivi; I'ri.i;. II Fins Hvi.k. [II Alhanv Ul'i.k. IV (No Hiifcitio ilesigiiation.) V. (No spociflc desijiiiation.) ^'T. .io. do, \II. do. do, VIII. Hll.K' Ob l'U(j|'OKTI0.V. IX. E.SdLlftll lll'I.KS. I200.H. Tli('>(! soviM'al TuJf» orioiiintpd from tlii; ncccf.ssity for providing .souie iiniforni andiioliniti' phin Ibr nmkmg "an nqiiit- able -^ettlomcnt between eonipound and ,s))ecilic pojieie.s and the party iii.«ured," — eacli new method resulting fidin llic lailure of its predecessor to meet tlie necessities of tlie case satisfactorily ; and although intended for, and offered as (jcw.nd rules, all of them seem li^ liavi' been construi:ted iijion the ba.sis of particular ea.ses, illastniting individuiil opinions — if not to serve indivithsul interests — rather than embracing any recoonized system or in- cukating any broad principle of general applicaiality in (he solution of the problem of apportionment of contriluitive lui- biliiy amon^ non-concurrent insuraucos. Hence, they fall short of that universality of applicatu n w liicli should characterize general rules upon any suliject. (307i>.) t£ml RULKS I)y Ihn a.|i|iliciition (* expivi.«ly covert^d by tliis ihiurunce. and at the siiiiie time including' and oovcnng the ppociHi' pioiM-rty or interest herein oxpreKsed, then, to determine the amonnt fur wliicli tliis li.juipany is liable, Niich more ireneral policy, as between the inwuretl and this company, niiall l)e coiiHidered i)tki:r ninuran't. on the apiiciflc p>-()pei'ty on which Iohs is ehiiiiied, in proportion as the nonnd valtu' thereol shall hear to the value of all the property covered hy ^uch more general policy." 2IO'^. Thi' meanmi,' of tlio above-cited rule, divested ol \er- biage, i.s to be found in the last three lines :— " Thai compound insuriincc ^hall tontribuie with spccilic, in proponioii as the value of tlie fpecitic j)roperty bears to the valiu' uf all the property covered liy the compound policy." It thus enttiils the neces.sity of a knowledge of tlie sovyid valiU: (d' th.i proi)erty under the protection of both specidr and compound policies at the breaking out of the tire. (liiV.t.) In nrder that the intended operation of thi.s rale nitiv bo fully .'omprehended, an article from Cxirrie's Ma,e. Feb , 18ti2, page 177, siont^l "R." (Heading), is here quoted, so far as it bears upon thi.s rule. Speaking of spocitic and compound policies, it says : 2IO,'*. ' I he mode of luljuFtment in ,■^llch caaes was discussed among fire underwriters many year* back, and two rule,- were then put forth, hodi aiming' at a projier division of a ci.'nipound policy ' for the purpose of arriv- ing at an e.ptitable settlement between compound and apeciiic policies, and the party insured,'' We here refer to them as— t> IMAGE EVALUATION TEST TARGET (MT-S) 1.0 !^ I.I 2.2 - li£ lllllio 1.8 1.25 1.4 1.6 * 6" ► Photographic Sciences Corporation ^ \ ^., % \\ iS^ 6^ < 746 KEADINO RULE. '' Rri.K S(i 1— Which WHS ui iliviile the coiii|.H)iiiul |iolu'y (for thi' fake of H<'iil, in |irO|X)rtion a,<* th'- anmuiit nf llie i^pocitic gO(ili(!y hcurn lo the «h"li' vulnc of tiic hhciIh in e(i.irr covfrinl bv thi I'diiipiunil |)oliiv. For t-xmnple : < loinis in store — Wine», .fl2,(t(tO ; teas, 16,000; together, Jl^OOO ; iiii«urpil l.y A oi nier- chaiiiliT. $12,000, ami hy H on tea.", |l(),i)00. In such ca.-i' llic rule xf//i. po.s<'.s jiohc\ A ii)vereiiiiil policy A, the divi'-ion is hut nominal, ami :j used i».i asc'eitain how much the simple police M mnsi pay in case of loss; for, after sucii aoeessiiicnt o»i B, the Lompound pcjlicy is lial)le for any haiance of Iosh on either article to the full amount of the jiolicy." 2104. ■' Uii.t; No. 2, as then Puggested, wa" to divide the comixniud policy, in noininul .settlement, in proportion aH the awoertained /o,i» on the simple article hore to the loss m the as;j.'rei;ate. (Finn Hule.) " It Will he readily (lerceived that where ilie los,- w lutul of all the pro|ierty the working of these two rules was precisely alike; hut wluTe the loss was partial and une<|iial ir per<''-ntuiii on tlie dilferent unicle-, the resuittt would materially .litler. "The advocates tor these rules each contended that tliey enableil the as. snreil in I !■' ' proofs of loss' to comply with the tany A, f;r ;f 12.0(10 un tlie teas? It he did, it would admit thutcompanv H iiiid lo-i hiii $2,000, and involve himself in a loss of *4, 0(10. " We onfess ourselves nH liilly satisfied with eithc of these rnhs, thuinrh in practical WDrkinsr, we prefer the lirxt mentioned ; they attain to e(|niiy,or nearly so, in setllemenl between the companies insuring, and they iniinit that the insured shall liave something to say in tlie matter, which Mr. Heald (.Mhitny Itiile) dm's not, ai' i hy them the in-n id can make iip a ' prelim- inary protjf ' in liccordante with the rei|uiremeiiis of the policii'S." tSK^**^. ' K." (loe.s not carry (he exemplificarion any fiirthor. To test th(^ rule, take the figures here given atui adil ."supjiosed losses, as follows : — Company A, general, on merchandise. . .$12,000 Loss, |l2,0t)0 " U, sp*«cirtc, on teas fi.oOO •• 4,000 Total. ll'^.OOO $16,000 UTfkmVC, RULE. Fj.^^ ApavH^Oper cent.or|2,000.e,,uaU j,,ooo ^ " •■•"""- " :i,000 Toul payment on teas jiTtioi) 2IO«. Tins would loavo to A but $11,000 wiM, vvl,id, to p^^ylos. $ll^,0„o on gen.ral merchandise, while ]>, makes a sa v.gc., on .si.eu-fic insurance, of $3,000 ; yet accordin;- to the ru e a. .xplar.od. U i.. only the co.nfumnd poHcy that can be called upon for any balance of ].,ss, the insured must .suffer to the amount of 81,000. with $3,000 unexhau.ste,l ......rance under policy B. So it is evident that •' ../>^,o.;.^ ' , HabUit; for the compound policy, as a basis of contribution in an as.-er- tained loss, will not answer in all c^ses. especially when there IS no occasion for such eues.siua aior. This example, being a total loss on the general pro- perty, the contribution clause would bo inopera^i^e • A . '• If, hI tlie hrtp|*ninL' of anv ftre, t)io insiirpd ^.Imll liavo a iwilicy or ])ii|j( K'H c''nfriiifi, in on,' hiiiii, pnijnrl) or inlrre-tH oilior tliaii i.- cxprPHrtly covcro(i l>y (h'!< insurRnciN anil at llie Hanu- titnt! incliulini; arul ooviTinj;; the fpecUir property licrfiii (hy tlii« p the loss upon all of the pnjpurly covered by the general insurance. 31 1 0. Till' following quotation from ^fr. Finn (.\. D. 1842) %vill :^'i\(' his views by one of his nwn illiistnuions ; and, to make it plain, it must be understood tliat Mr. Finn held to the strioi(!.st nin.slruetion of the contribution clause as a coiiLract by tlie insured, His example is as follows; — Joliii--'iii, Vr(Kin)»fc Fowli r ctf'ected insnnuu;e Uf tollow.s : in the H(j\very Coiii|«iny, on f-tock and llxlnron $f>(iO 00 " lioiiir It'l'iud Coni|(any. on ,',tocU , 1 ,a0'1 00 Lops on Plock. I l,.')8(i,'21 ; on lixtnre**, $701.87 What -((iin hiiH the Long Island lo.'it l Tlie eonipany say tliat the r!owery"n p(drcy must help to pay the h^9 ou stink-, [>y virtue uf tlie following oiuiirte in the p.ili{;y, viz. ; " In cane of other insurance ii(ion the prop<>rty hereliy inniired, wli/iht-r prior or 8ubfei policy, the insurcil shall not. in ea»iny greater portion of the kiss or darna;."' .•'iistaiMed than the amount hereby inHun^d Hhail bear to (he whoK- aniMiint insured on said property " And aj'am, lu the " Conditions of Insurance : " '' And in all cane'- of inaiirance, iliis company hhall lio liable for mc\i ratabli pr.ip'irtion of the loss or dania^'e liap|(ening to the subject inxrired as tlie an)<'Hnt in-iiretl by this company shall bear to tlie whole ainoiuit in-'ured thereon, without reference to the dates of the d'tlerent ])o!icice>." (2009.) FINN UULE, 749 2111. " riumiioutit ins-ured on ,s7o';^ l,y the Bowt-ry's jk-Ik.^ is a.scer- tained liy tin- following: proponition ; — " As the ^vholf. losH, $2,2SS.ll, j;, t.,. ?i50n -l,.. Htnu.n.t insurr.! llicn-ou, so m 111*, whol.. los«o.i .luck, $lfi»(i.24, to the ttinount, ^:m 02. inmirt'd oi, said stock hy thtir policy." It appeai-H, then, that— riit' Uowery injure on stock $341', C " Lung Wand « «■ '., '.'.'^'.'.' '.'.'.'.'. ]}yoi m Whole insurance on stock is ,. ^"i^.T^ '•'••'^ " " .' li.wr, 21 " If oily rc-nainn now to upj.ly the rule of proportion tu a.-certa.n the amount lost by each company on xtork: Thu8, if j!l,H46.G2 insurance lose $l,r.H.;.2l, what will $1,000 (the an.ount of the Lony [.land r.jhev) lose? Welind:— Long Island Conijiany lose *\ 2m 50 ^««'<''-y " ' •' !!.^'.'.'".l '.".'.'. '2<)7 '74 Whole lo-is on utork Al.a^fJ '.) "T( will 1)0 seen thai iliis calculation is based u|H.n the whole amount Of los^ (on proixTty coveied hy il,e polu les, at the tm>e of the (ire, and nut upon the amount of the property at risk. With the latter, hre pojicie.-i have no concern. It is (he amount of lor^s only which iiiierot.s tlieiu The asrtiired may have a millioii at risk ; hut if hi« acdial lo^s be ninnl or leas than the sum umured, it i.h all the underwriter can iiKpure al>oui, .,r at leasi that oonceriiM him." " It has been said, in rfference (o this case : ' They have lost $:_',i;Om ; were insured |!2,0(I0 on the property, and must, therefore,, receive $2,00() fPHi, some one.' In other words, they have l>,ught so much insuiimce, hi).| . u^'ht (o have the worth of their money. The parly makinj.' such a' declaration must rather haw hnai/iiied some covenant between the parties than have regarded the otie actually existing' ! It is wijuily at variance wiih the explicit lerms of the contracts." 211a. Ciiriyiiig out Mr. Finn's adjtisfcinent, the Bowery Coiujxuiy has renuviniiig, after i-ontrihtiting with the Lo7i(j As- land on stock, only t)i(> sum of $202.20 out of its $oO() with which to ptiy a los,s of $701.S7 on fixtures, wliile the Loiuj hhmdcomoH out with .x salvage of 8211.50, and the in,sured tonies out short of iudeiiinity just thui .iinomit, upon a total loss iu excess of iusuranco, iuexteuuatiou of which Mr. Finn .-ay.s ; "It should bo remembered that, if the assur.-.! sutlered loss in s,,tne ca.se.t, it is hrmuse >i> /kus not e.fl'erted his ii,.'uM, havo been cuiu- IH'llcd In aliide l>y tlieni. (2IIH3.) It will lie only projKT to adil tliii lUMfcinineh as the k)s.s was in excess of the insurance, the oontriliiition clause became inuperalivc, and both cimijiauiHS should have paid to the amount of LJieir contracts without reter- euce one to the ».ilhev. lU'LK 111. THE AlJiANY JiULE. 2114. " If, at the happening ol' anj lire, tlu' ifiiir-il -Imll iiuvc oili.-r iiisiioiinc wliicli inclndtti !ln' jircimse.-i dt |>i'i(|p"iiy lici-ein iiiMiirrd. pniitihii Hucli [K'liL\ iir |Hjlic;ic.- xkiill nl iinij limi\ or ninlir oln'iis, (v hilii'i fii thi' insKtrd (iifl tliix ioihikiiii/, nliall lie coiisiilirod as Co" in^tiiriiiioc and lialiii to oontriliuliuii, itiivtiiiiig in t^uiU [lulicv <Uvitl)stariiiiiig." ail.l. The adv(»cat<',- 'if the Alhanv Hum;, like the Fiuu li'ide, hold the (vntrihufim) I'launc to bf a positive coutrnd h'hvern fill' iiisiiiril c ch/c— iHed in Ens^laiid .«(imo\vlu'ic iiUmt ISwO — (liOIi?) — was iiitri»ilu('t' '^iiici! that liuie Ik-ou knuwii aiiuiiij{ umltavvritcr.s uiulci the uaiiio uf tl.u Ai.uANY or IIealu lii;LK. t2II.H. Stainliii^r al'itic atifl uncxjilaiiiL'd. this rule woiiM Ht CHI iH ln' lull ;i |.iin(,['hiasi.' of tlu: cuiUi ihilt'mn iltuisi' ; Imt, wlirii cxijlaiiu.-J Ijy Air. Ukald in the folluwinij; nniuisUikahle luri<:nage: — " Spt'cific policies, tiy tlic txpreps terniH (hereof, have >i Icjinl uml I'uminlilf righl to iii.si,m iukI ili'iiuiiiil thiit, a-i hf-tweeii thi'in titui the aHKuriMJ, u I'dnt- pouiiM or ciillft'livc policy «liull coritrihiitf with them on each al the imroi'la iiiiiireil S|»ecilii'iilly hy tiifni, ami tliat, kd Car .■v Ihi-ir lial>ility !•< to be (It'ti'riiiiiK'cJ, (lie colleciive HMiii m to be rctriiniiHl ii.-i coiitriliuiing in.suruiicc C'l) I'Hol) ileiii so covi rt'ii.'" And this I'onstriK'd liv the li^diL alroudy obtained wh to the construction placftl upon the cuiiirihiUion daii^>' l)y tlii.s rule, its iufaliiliility sUould be conceded only cum (frauo xalis. '■il l!>. I'n.'vitiu.« to the iidu]ition of this rule, the ""lily alter- native " mode nf apportiuiiin^j; con^rihatici: Ihihili.tii aiuoiiL; jioli- cies was that of exhausting all fpecifir insurance befon.' the mure •(! iifval vwtuld Ik; ealled upon to contrilmte — a mode \mi. r.wi-d fViiiii till; Kti^li~h average adjuMMient, \\liiirnply . hifting the ditheulty , or rather, if possible, inakiiiLj t bad ruatter worse — not removing it. By tht; English custmn the 8;f««*7/c policies sulTered, hat the injured trceivtd kis hulonnlty ill full. By the Aluany Rl'LE the imttred stifera, the specific i" mw^ 752 AI.HANY KUf.K. couijiimies nuikiiit; u salvage out i>i' liiiu ; wliili- tlir spcinlic and the {/t)Ht;ral jiolioiiw chan;,'i' placos, the hitter being com|K'He(l to conmldUc to the hi.st cent, while the foniini' reaj) lliu siilvaga Theru were some sharp humls hohUug Hpt-rific in>licie« iii timt Alli;iiiv convocation. tit'Jl. fii support of this rule Air. IIkaiji oilers the foilow- ing ' as a synoj)sisor thf niflhod of on adjustment atlopte'l in a reciiit ease at Alhany." He. Ill'', III wliciil III iviui'Ikmisc No. 1 $."),0(MI .Khi.'i, " " " 2 n.ooo Miirkct, " " I and 2 .'>,(iUlt " Till' two tir^t ?minr(l j>olicies may Ik- tcrnietl H|K'cirtc contracts. Tli» Iii!-I niiiv l)f tcniicil a ((.iiiiiidhihI up cullcciivc contract." Ijo-i^ (III wheat Ml »urt'lii)ii-f No, 1 f 0,(100 '• " •• " 2 ,'),i)00 '• rro|.. .-iiii.ii- liow the .Market |K)licy i.s to apply :"' (\)Mtnliiitin}; iii-uranct' wivri-lioii-*' No. 1 jjslfl.OOO " "2 1(1,000 llciiif mmircM live- tent li< of tlie wliolo union ni coxeriii;^ wheal in No. 1, iind pii>> Js.I.flOO Miirkel '' ■' " No. 1, .in. I pays ;!,()()0 j^-Jtna " " " " 2, " 2..')()0 Miirket " •' " " 2, " 2,5()0 |i 1 ,000 2l2ti. In justification for thus assessing the Alark.'t !*5,500 on a polity of >,(I0I) 3ConlnictH. Tlir .. o,tlOO . !{! 10,0(10 it . ifii.OOO s :i,ooo 2„.||0 $11, (too ;irk.'t 85 ,500 iiirn'l to losi^ tilt- extcuL of them rf.ffiiTtiecly a (/rtater propvrtinn >•:' hf.lom tlum the iiii"ii>it nimirfl In^ (htm ■fhull hear Id the tehoU anwuiit luiturtd on the pro^Ki tij underwtitten by thfiii." iiV-iii' 'I'liu iiliuvt; I'itfttinii U 'ivcn, not only in jiHtice to its autliiii, hut biMuuNi; it coviT.s nil 'lint can he saiil on tlii.s sidt- of the ([lu'stioii, and is an (.ividiMice of the unct-rtuinty utteiidinL,' the f oiitrihution clause in its pieseii'. fovni (iiOIJt.) It may 1h> good logic fur tlk' adiii>lion ol the Alii.vn'V i!ii,k hy npenjic conii)ariie8, wIumi the " only alleitiativo rule that ha-» any claim to If^al sanction " would have iuad«; the Home and the vKtiia jiay total losses #5,000 eacli, aU'' the Market would have heen let off with ])ayriient of 81,000, Ahile the insured would have lieen paid in full. ill* I. This rule received x |'iMi;.'ent hit f'oin a Canadian nnd rwriter, soon after its |iroiiiul>^alion al Alliany. He says to an ii;. nraneo journal : — " T liiivt' |K'ru««'ii l»y many of the IchiImil' Enirli-'h olpie-i.'' " Tlie diHerenci.' referred to will be seen iii the foilowinij; contrast : — AMERICAN KII.K. ■ K\«|,I8H RII.K " If the aiuoimt for which the Mar- ' " A- the a<'-'iireil nni-t henosutlerer ket ih, liy hix i'i>iitract, to contriluite j n|Hin eitliir liniMin>.', ^-o long a- aiiv txcepiln ilie anioiint of its |>.>jii'y, >li jiurt of lu^ »(»<-cili(,' insurHnce [ipon it lonx in exce-is - i)iKi(i>:il hiih.h<: ahuvc Montreal, Jan. 12, I rt62. exce-V *-iVi!i. In this connection it may l)e interesting to note the laot that, out of thirhj-Hix printetl jiolicy forms iu use by New- York city eom[)anies, from a. n. \SM until a. l». 1807, jovr only had inserted the Amiany Kui.f as a condition of the policy i tweaty-three contained the " t)nly alternative rule," or what WHS intended to be such (tJIJUl), and among tliem the Home of New York, (edition of 18tj5), while the other nhie luid the ordinary contribution clause, (200.H.) T^«^ ^mm 764 mi.V TV* 2i'H\. If -It llic liaiip-riiiijr o| a lir.', ihi' iii-iiri',| shall l,iivc munrance, t'V a |Hi|i:\ 'T |iolififK, ci>viTiii>» III (tiif hiiin |)ro|)('riy or iiiIitchU oiIut tlian iscovenKl hy tliiH inmtrance, and at the name lime iiii'linliiiif the fjicuirtc prc'fH'iiy 'ir '.iiiiTf'-t liert-l'V iiiHiiri-d, tlicn tn (IcitTiiiiiii' thi- iiihiniiil tbi which thin luinijiiiDV IK hiililt' iiiiilcr ihio |kiIu y, thv uiiinunt of niich iMi>ri' ^cin'ral policy or poHcieH "Inill ho lipid to apply to (iiid invt-r ili>' »(/ii»i(i/.' proj)frtie» or iHlereci itovcred ihorohy, ho that, at nearly us ihc anioiiiii m' Mi.di nu.rn gciuTHl iiiHurani.'!' «dl |icrinit, nnidi -t'viinl |ir(i|ifrli<'X i.r iii1»'r»'>l- skull ,,ich be iitiiiit'l III tho |ir.>|Kirtii)n thai tlic whole iiifuranco tlu-n'On, inidudin;; the amount I'innrcd b\ lu'lli ^rt'iKTil atiil Mpr'cjflc pilii'ii'-i, hcnrM to ihi '•o'lnd vahu' <>f nil ilio prupi'riy ci>verc<| tiicreliv. liV27. hivt'steduf vjerbiugy, tins rulr wuiilJ smmn U> W as fulliiws ;- - " It' Ilii' iii^iiM'd Hhaii lia>(' conifNJiirid policii's cineriii); olhor itinn than lliii(>«' >iHinii'rait'it in till' Hpccitii! msnruiioe (f'l.Ass Jlj, sni'li gi'in'rul policy hIihII v'civcr till' it('iii>i under its pruiei-tion (an iicurly as mav Ik) in prop(jrtii»ri as tho jTrnew iiiHurnnco heurt to the mmnd valuf nf nil >>\ the profXTty." Thii.s itMjniMii^' ,'i kiiowlodgc; of tin- soiiinl \;ilur nl nil i.f llir jiro|ii'ity at li-sk. t!l*,J.H. rin' following -jiraplo examples will U;st this riil.- ; — eXAMIM.K 1 ( ... A i;ov(rs merchandiflP *l,nOO Value S2.0flrt •• I! •■ '• and fixuin'M iiOO " rixtnrcH, 1,0(10 Tdtal iiiHurancp .$l.r)00 Tulul valno.. |:i,U()0 Loan on «i«?rchaiidi«<', $1,000; on flxtiirtH, $350. API'iMUIuNMKNT. Cdiiii.'i'iy |i will coviT nirrclmmlise and lixlures in ihf |)r«)portiiin of ()ne-/'(///'<'iii'h — lining tlu- projxirtion that liie total insurance luars to the total Miiuf. Iliis will k'avr ifJ.'JO insurance on iiiircliiindi.se hy R, which will give flic (ollowing result : — A and H .;ovi-r iiierchaudiae |tl,'2&0, <.'n which los"^ i.i $1,00(1, or mO jh.t cent. ro: TRIHl TluS. A will pay 80 p<'r cent oC |l,0n0, eqnal $^fW 00 H " '* " 2.'i0, " '.-'00 00 which will leave but $H00 to pay 1o8.m upon ii\tiire>, |.'i)0, vvlnle A makes a 8alva}:( lit jSi'ili. lemiiig the inrtiired iniiuis ji.'jO under tall in.'iiriince. * This Rule is attributed to U. A. Oftkley, Esq., late of the Uowiird Fire Ini Co.. New \ ork. sijtau U) \»' as if all ..r til.' in i.K IV. 755 Tln.ler f,ho n.l« uf Class II.. oompuny ll w,m,I.I first pr^y ]...« on./,-r/»/7y.. *.i5(», HU.I cntril.utc witl. A i„ tho l,ulaii.;r, *1.1(). '>" "«"'<'l'"n.lise. Tl„.n, «„ul,l l,e n.. estimating cimuce.s as ""<'<•'■ lliKs ml.,, au.l (l.u in..uml would K»-t full iu.leuu.itv. ..s EXAMI'I.K 2. Company B,«yB Io«h on >7<.r.., f 150.00, loH.i„g |,ala,.«. of |1.',() f„ conlnl.uie with A ou me,T.I..,.„|,.e , tl.JH will Kive — is ii'5«S ,_ |,h(,^ r,fi -, H 1S0(„ 8(iMfi.-, *.!.'...,!...• i:t()"i;ifi '""'' $1,000 00 ai2». This makiufT the valuo of the property at risk an el.^m.nit m tho app..rtiM„m,.nt. i.s similar to tin, Um.f the property in Example 1 been 84.500, the prop.,rtion ol poh.-y li.'s liability «ouI.l have been but 33 per cent or lia.l tb... value been i*G,aOO, its proportion w..ulrl nvu-de t.'. 25 pt'r cent., a.i.l so with any other value of the f.roportv Th- lar-er the value, the leas wouhl be the contnbutive liability of the compound policy, an-l the greater that ..f th. speeiHc insur- an.!e. In cases of full insurance, th(, general policy sutler.^ • i„ oa.ses of partial insurance, the specific policy takes its turn (IMake V. Jus. (;o., 12 (;,ay Mass. 205, 2 Ins. Law Jour 284) (ai.i-7«.) ■ ' 000, or 80 iKT oward Fire lui. J " 1 1" 756 IMI.K V. iSKtOi (I.) If, at tlif liii|>|M-niMC •>( uny fire, tlio inxiirfd kIihII linvp » |x>lii:y i>r |Hilii;ief( oivrriii); in <>iio hihd |)r(>|i('riy i)r ititer<-HiH i.tlitT (linn \n t*.\|)rcK(\ tiii« itiHuiniict', ani iit ilic Haim- iiiin- iiii;lii'iiii|{ iiiiii tiovcrmi; llic HiuTidi' |ir<>|>i'ity ur JTiH-if^l Ih'icju cxj r«"-M'il ; lln'ii, ( ou wliicli lu-i' ts il'iunnl, m pi'<>|Miriii>ii n" xUe «.>ii>„| viiliM' iliiTci.i r-liitil bear lo tlii' vulut- uf uli ihe pruptTiy cuvcrcJ ly "iu:li nuirf ({ciierftl |iulicy. mIIM. ('.' ) A>;uih ilut iIk liHpiN'iiiiii; iiriiiiy tirv ihe insured .^hall harr ii fiimttiiy policy or |H>lij.ii'f, nui i-pccifii', Imt ocveriii); jtoimIc gciic-riiily, in viiridiix |>la(!i'" nut ili'-iirnnieil, aiiil vet wiiliin limilM wliicli iiiilnilc i|,f pre- iniM'O or priipcrtv /nrrin iiiiiirnl, HI cil I'm \f\ , n* luMwieii tlie iiii*iin-i(n|iany, Hliall la- coii^iili reil U"* covfrinj; uny exnis df xoiiiiil riitiu: of (lie Miiliji'i'l iriNiirctI U'yund the uiiiniuit cuvfrcil liy the •>\>n-\f\c insurance* tlieri'iiti ; (uhI, lo ilrti-i'iniiD' till* niiiiiiiiii for wjijcli iIik ('.uiii|>uiiy m lial'ic in caw (if hmti, .^lur/i itditHiit) jii il in/ ^Uii\l In- i'oii>iii<'reil an insurunci' m nIihII reiicler Miich ftaleiiiciii- and aeeoiinl.^ an will eiiu! le (lie |iiu'lie> iiilereMU'd |m inttke the ailjilr>liii(>nt« att iit)n'p'ui.| , mill ill! "etileiiiriii* iiihler till* rule ihail he wiihoiil reL'ard to iitiv term-. I I'liiliiKiiis, 111 Hciiliiiiiiil'' ilieii (ir hcfore or tliiM'iufier inuiie hy itiid h( iweeii the iiiHiired and iiii) «iiin|iany or iiielerw riier iHwiiiii)/ «uoh general • Rkadino I'lr.R. Till' -iciontt rliHiKC is \irtiiiiliy tlic sccdini clatist' of tlif Eiij^lisli lliiiitiii;,' (iivcfiigo) iMilii'V, oiiiittitio tli" avenioi' fi'iiture wiiirli ,t.';iv(! it vitiilily (Hiuiilcl. with |iiiil of ll.iiulrl >iiiiillt'ii ;. :£!!{ I. The infeiilinii (d liiirt ticcond cdnDH wus cviiliMilly to niui soooiid clause will yilaiiily iiidicatc, and as was derided in till' .Sii|iri'iiu! Court ul I'cnnsylvania (.'4 I'l im. 8t. 271), where the Geriuania, Hanover, Lonilard, and Fiillon insurance companies — al! ol' New Y'ork — were defendants, each policy * Altribuitd lo H. A. Oakley, Esq., laic of the Howard lus. Co., N. Y. HII.E V. !t: ull liHVt' n MM' lliaii m II, lu licit r ral |ki1k'v, lier iii-'iir ■Hull u*- ilie i-.pviTeil \y litill hari ii ■ luTiilly, ill Ic tl.f prf- iiHiiri'il Hii'l nil vdlui III' jiiKurHiii:«?< 18 lllll'lt' III aiice 'Jii tilt." fpreutli IK 111 (iiiifiii- ami u-iliiiciil'- an ■irunl til iitiy lUrlt' liy itml iol» p?n, insurance •h policy ciiiitiiiiiiii^' till' ,ilM)Ve-iMti'tl 1 laiMc, nnd iimlt'i winch IhoHo curu. |Minicsi f iaiiiKMt thtit no lialiility atUclicil in tln'in until all H|Kj(Mtif itismiiii' u ii|Hin tlio prnpurty covcrcil l>y tliom lunl Kit n oxlmn5it<><). (30II.) illittt. SiuiiN((, J., liofiiii! \\\\n\i\ \)w casi' cuine npn;! mtjital Niiiii : — *'In riyunl tn iliin cotnlilion, iiinny iiUfHtiKiiN ihkv iK'n^kfil which it iniiii poHoil'l)- to HiixwiT Miili L-crlHiiiiy WIihI \n ii IIiimihik |k>1ii-\ '' Ik it (tctiiit-il ill iln cimtiitKiti } If NO, It w Kjnilicv liiigir tluin . itlnr t»l tli»>-»' whith tl.i il< rt>(i'laiith iM"!'!-)! tiir tht' liinilx williiii wliii-h tlii> ^iiikIn iimiin'i l>v \\ 'lti>ihN inijrht he liHked, hut we ar-' ul cal'it iipoii to ilptermiiK' what tlie cuiiiliiinn i|oei« iiieati. (i ii« eiioti^,'li : >C dorn nul exi'tn|it th« lieCeiKloiilx frmii a liiihiliM wliirli wuiilil exist, .vitluiut it. '/ \rrin.'t i/ilih' fi I ' 'I'lt mill I) lilt 'liffintdiitH .ifi'hi nf fUxitinij fnliri- 1 l\ if rf/errnl (n .^oml■ olhfr pulit'ir; tlutn llitii ixrii. They are ("iviken ii a« ijimji. in I (7 i.\ siirli fluiiliin/ finlii'iif nj' olhi-r uiuli rwrilern Ih it urr lu fif mntiilrrnil lis iii.siinuxr itfinn l/ir ftiuiiirlij In (hv t-rli ul "f th' sfiiinl f'lliii of' Ihf iiihji'i t inxurril lirifitiiil fht- iimnimt I'nrervil hy Ihe ojirnlir iiiMuraiiri'H Ihrreim. IKf '/<> lint Ji'tl innrinilril. Ilifrff'nri-, in hnfihinj th it Ihi iiTfiiOi iiititlitkiu nf (hii ilifijulnnlii' jiitliiit.i inii/iiifs Ihiir linhilihi In Iht rxco* iij' lii.tg iihiiVf thill voriiiil hy whiil iirf rullrd uprcifir iuminiiiris. Tie rLiiift then wuH not in fnuli in ilie in-'tnietKin jriven lo the jury." tSIIMI. This clause was U) bo found in o>ni(non ush aniuiif.' tlu! Niw York lity companii'S from altoiit a. n. 18(i0, us (.'laiis<.- vii., and c 'utiiiuiid until t) !■ aii'jttiiui nf tlir rdviscii fi.nn of tin- Nation vL Uoakd jxiliov . >vliich nuoiirred uboul the time tint the iilKtve-ciled decision m.is made; its presence in th»; ptility t(ave a color of justice, so far as such a clause cuiiUiinid in (Hk- policy only could, to the custom of first exhausting sjn'citic pul- icies l"!fore the compound nr •,'tMu'ial cuiild he called ujiun f^r cfiiitribiitiou to a ^'entual loss. {'■iHl7* :4I70.) The thii'} clause simply rider* to the mauuei in which proofs .sliall be inadti undtir those siipulatiuui. :,.. N Y 758 nuLE vr. 21it7. (I.) If, at the happening of any lire, the insural shall havo insur- ance, liy jHihcy or policieH, covering in one sum property or interest o^Aer than f's cxprenshi corcrtd by this iiiKuritnri, and at the same time includ- ing itie specific projierly or nitere,«t heii'in expresseil, sucii in-'^nrancf sh:ill be con.^idered otner insurance on the property hereby insured for they'uW ainonnt of such policy or policies. (2.) Unless, in consequence of loss on jiropiTiy covereil by such general irisnrance and not inrluded in this policy, it hecomes necessary to divide the amount of such jienerai insurance, ariil in thai case, to di'terminc the amriunl 'or which tiiis company is liable, tlie amount of such more genera' insurance, as between the insured and this company, shall be consiilered other insurance on the sj)eciflc property on which lo'^s is claimed under this policy, in the proi.iortion that the soumi value of such property in excess of the insurance covering it only, bears to the sound value of all the property covered by such more general policy or ptjlicies, in excess o'' all specitic. insurance thereon. (3.) If, however, the sound value of the property covered by this policy, and uicluded also in such more general in-^urance, shall not e.Koecd the amount speciiically insured thereon, then the mnonnt of buch more general insurance shall be deemed to be other insurance on such pro[x;rty, in the jiroportion that the sounil value thereof bears to the sound value of all pro- perty Covered by sucii more general )M)lii;y or policies ; atnl if the insuiecl -^hall have an insurance covering a part only of the properly insured l>y this piolicy, so that it becomes ol such more general character, the claim of the ii.snred against this company sliall be adjusted as above expre.-sed. 2i;iH. The jli'd clause is tlie Ai,n.\NV lii'LE in its full extent, com^ielllng full coiitrihtitioii fioiu geneml with specitic pi Aides, without reference to cunciuTeucy. (211 1.) 21!tt>. The ficcond datise is a " rider " to bring the appor- tiutinient witliiu the contiibntion elauso where the Aliianv Bulk fails to give full iiideinnity. But this rule fails to .say tinder what circunistanees it may " become necess^ary to divide the amount of buch general in.surance ; " or, in what proitortions suel) divi.sion shall be made ; or, what shall be done with " 'he proiierty eovorcd hij nueh (/emrral iiisurance and not ihdiuJed in this (specilic) pDlicy" after "it becomes necessary to divide the ainowit of such jjenend initurance," before proceeding to apportion the loss "in the proportion that the sound value of such (speoifio) property, in excess of the insurance covrrivg it only, bears to the sound valve of all the property coveri'd b>/ RULK VI, iU\ such more general policy w policies, i,i ecrcess of all specific 'imiirance thereon," thus leaving us iu tlie dark as to iiuw we should procetnl vvitli the apportionment. 31 lO. The following example would seem to be a test as to the eorrectness of this as a rule :— EXAMPLE. Company Aon mernhanilise $1,000 Vaiut' ^^ '' " ami fixtun'H, 500 ....$2,000 " fixtureH. ..1,000 Uphoii nierclmndme, $1,000; on fixturen, $350. AIToirnONMEKT VNDEU VIB.ST (ILADSK. As company R i, consi.ioml corUributive liability to the full amount, we hn. that the msnrance upon mon.han.l,,se was A $1,000, an,l B $500, total |I.oOO;osH, $1,000. of which A w,ll pay .vvo-Unnls, sav, $(;.i.;d and B on.Hh,rd, or $,l{:{,3t. Tlas will leave to B the dimcult ta«k of paying a loss on..A.r;„.e. ul ^60 out of hi. unexhauHted fund of $16.J.G0, while mcr- Chandi^e ,. paul ,n full, and company A rejoices in a salvage of thirtv-lhree per cent, of Its policy. .» "-'^ee tJJ4I. But, as this will not do, we are to resort to the seconA cla>tse and make an entirely new adjustment, upon a change of base, iis follows ; — APl'ORTIO\.MK.VT TNDKR THE SECOND OI.AUSK. that $1,000 (">ou„d,.a/;erty does not exceed the amount of sptxiftc insurance thert'un, tlieii ihv geiural insurance shall contrilute in iirojjortion as the value ol thespeoific property bearsi tothe value of all of the pru})erty — which is the "Reading Ki.'LE" (JJIOl,) and liable to all its objections. But if the value of the specific i)roperty should exceed the specific insurance, what then ? t2l4!{« The author of this Rule VI. is evidently endeavoring to unravel the problem of compound policies (Class II.) ; but, being hampered by the Alhany Rule as a basis, he loses sight of the true jninciple of contribution, and the result is that his apportionruont of contributive litibility is wrong in consequence of his ignoring tho liability of the comiiound policy upon its specific item first, and the remainder only to be subject to contribution with the specific policy. (2064.) He also ignores the important fact, as correctly stated by Mr. Finn, "that the value of the property at risk is never an elenii'iit etUcnng into the apportionment of loss under policies not suhjed to aoeriKje.^' {S2HKS, iSlt2t>.) In this case, correctly ap[)ortioned by the loss, B would first pay on fixtures S35U, and then contribute with A in its balance, $150, on meri^handiso. The happy result would be that the insured would get full indemnity, both companies would make a salvage, and there would be no necessity for tlu; appliciitiou of the second or third dame-i. 761 EULE vn.* -144. (1.) ft, at the time of loss, the ii.fluml sliall hoM a .. indu.Ial withir. rar.ge of tlie .nore general policy, in such case tii^> Uws on the specific properly or interes^t siiall be firsi u.ljii^terl pro rata among all the insurance covering the same, i)e the polides general or Bpecihc. at" 214.'». (2.) But if the loss on thr^ article or articles, not covere.l hv the speeihc, m-nrance, .hall require a greater sum than i. left of the .General in- surance, after the a.lju.stnieut as afore.«ai(J, then, to make up such.letieiency so UM.ch o( the general insurance shall be release.l from contributing' t., the speciho property, an,l an equal amount of the specific iiisurance (.hk before appropnuicl) -hall take its place in payment of the specific article.. If there be .litTerent specific insurai>ce interests affected by such re-aajuWment they .hall contribute to ,„ake up the amount required, p>o rata of the amounts they would otherwise have to pay. 21 !«;. The first dame is the Albany Rule to its full ex. ter>f, rtii(] lial.h^ to all of its objections; but it is modified by the Hecondclausp, which is a proviso thiit when the Aluanv Ritle fails to give full indemnity, a fe-assessn^mt shall be made releas- ing the compound insurance when over-assessed, and compelliu-/ further contribution from the unappropriated spedjic policies! This rule would seem to confine the re-assessments to the .s7^ec/./fc insurance yet unexhausted, though any unapplied general policy would be equally liable. 2H7. The following example, adjmfed under this rule, will test its operation : — Company A on merchandise $500 Loss $200 f< " and fixtures, 500 " on fixtures", I'H) By th...//rs-/ clause of the rule the "specific jpoVw.y is t*. Ik> /.V.7 adjusted pro rata amon- all policies coc,:rin0. Tlie resiili i^ tliiU B i.s exhuiisted, wliile A makes a salvaj^e out of B of $31.82, as will be shown btblow. SI-ISK The principle of re-adjustrnent of the insura7ice, when necessary, contained in the second clause, is correct: but the mistake here is in applying the process of the Albany Rulk to the first assessment, and making this result the basis of the subseiiuent calculations, thus ignoring the distinguishing feature of coniponiid policies 'covering specific items (20T0), and in this instance giving niLrchandise iuli indemnity at the expense of fixtures. S1>S0. The correct apportionment in the ratio of the loss would be for B to frst. pay on its specific item, fixtures, $450, and then contribute with A on merchandise for the balance, $50. The result would be as follovi^s : — A and B coviiC conjointly on mercbandt^|550, to pay h loss of $200, Then, as 5r.0 : 200 : : 50 equals $1H lb 2-11 for B. 550:200 1:500 " 181.81911" A. Total 1200.00 This would i;ive the final contribution as follows : — A pays on merchandise. . . .$181 82, B " " .... 18 18, fixtures, $450- $181 82 4()8 18 Total payment..,, $200 00 « $150— $0.50 00 3151. Both companies making a salvage; but B, being liable upon two items — one specifically — pays mor<3 as a conse- quence of writing two risks for cue premium. out of B of 82 > 18 00 B. being 1 a aoiise- 763 RULE VIII. FELLOWSHIP OR PUOPOIITION. aiiifi. The followiug method is rather an arithmetical pro- cess to reach a desired individual result where the a^'greyates are known, than a rule of adjustment, being simply tin- ordinary rule of proportion of the aritlmietic, commonly termed " f.-lluw- ship," or the " rule of three." The jjroposition wUl stand as follows : — As the aggregate insurance is to the aggregate loss, so will be the individual insurance of each policy to the amount thereof. EXAMPl.K 1. Company A covers building $1,000 00 B " " 1,500 00 C " « 2,000 00 Agffrefjate insurance $1,500 00 Prnposition. — What doon each company insure, supposing the loss lo be if 1,250 in aggregate? Process: As |4,500 insurance is to $1,250 loss, so will \w the amount of eaoii policy to its respective lialiility :~ As 4,500: 1,250:: 1,000 = $277 78 for A. 4,500; 1,250:; 1,500 == 41G (JO " U. 4,600 : 1,250 :: 2,000 = 555 SO" C. Totals . . . $4,500 =$1,250 00 TIULES FOR PERCENTAGE. 315«t. The same result can be obtained by percentage .•— Firs(~-Hy proportion : As the aggregate amount of insurance is to the loss, RO is 100 to the percentage. As 4500 : 1250 : : 100= 27.77T t- tiie percentage. 2154. Or, .SVco?i(i— Divide the amount of loss, with two ciphers adiJed, by the aggregate amount of insurance ; which is precisely the same as the fir.-t ruk-. as multiplyi g by 100 is sitnply adihng two ciphfrs. When the percentage is thus found, multiply the amount of each policy by the per- cent., andthecontributive liability will be the result. K-KAMl-I.E 2. Company A $1,000 x 27. 777 + gives $277 78— B l,.500x " " 41(; 6(W- ■■' C 2,000x " " 555 51)— $4,500 X " " $1,250 00 7G4 lU'LK VIII. It should be borne in miud that wlien the loss is in excess of the insurance, this method, or any other as to that matter, is inopenitive, as each policy pays its own loss independently of the others. TO FIND SPECIFIC INSURANCE UNDER COxMPOUND POLICIES BY RULE VIII. 31*1^. This principle has been oxten'^ively used to find the ros|tt'cliv(! amounts of lii8ur( dice under compound policies upon each of the several items, fr(jm the aggregate amount of loi<8 upon all of such items. The j^rocess is the same as in ordinary proportion, except tlmt the statement of the proposition is reversed in tliis case. As the aggregate loss is t(, tlie aggre- gate insurance, so will be (lie specific loss upon each item to the insurance thereon. Using the same examjile as in the previous case, the proposi- tion reversed will be as follows, : — EXAMPLE 1. Wliuf will lie the insuranff of each company, tlie aggregate insurance beiiit; IL.'SOO, ami the Josk $1,250 ? Prockss. - As 1250 lo.-s is to 4500 iit.^iiritnce, so is the amount of loss. UDiier each jjolicy to the insuriince; <.>r. As 1250 loss: 1500 ins. : : 277. 7H per ct :^1,000 insurance policy A. 1250 " : 45(10 " :: 410.76 " 1,500 « '< B, 1250 " :4500 " ;: 555.50 " 2,000 '* " C. Or, to get the percentage, the proposition will be — As 1250 loss : 4500 iii'^. : : 100 result H6 por oent- This, multiplied by the loss on each policy, will give its specific amount of insurance. Or, simply liivide $4,500, {>ross insurance, ly $1)260, the aggregate lose, which gives the sume result as the latter process. 2150. I'he following example of mixed j)olicies will still further illustrate the principle : — RULE VIII. 7G5 KXAMPLB 2. Several compaiiies cover conjointly to the amount ot' $2,00ll upon sub- ji>ct'< the loHseH n)Hin wliiuli, in ih'' ii}:<;n'giite, reach |7,'J28.1 1. Uniit-r tiie rule (iiI64> the percenluj^c wuulii lie 2,0.277. Proposition. —What will be the insurance upon each of the following items of lose ? — On enijine, " machinery, " piillevH " shafting, etc loPs* $2,000.00 ^ 2.5.277 per cent., gives insurance $504 54 " 5,;i28.14'S) " " " l,;i44 10 '• 2(10.00 rw " " " 50.45 " 400 00 'a " " " 100.91 Total loss $7,92H.14 fd) " J 2, 000 .00 111 coiiiitM'tion \vitli percrntdge it is fivciiiently iieoe t^.iry to extend the divisiou into thoiisandths, or beyoiul, in order to get corrt'ct re.sulta. While the proper apjilicatiou of this rule for finding the .specific insurance by the aj^gregate loss will always prddiioe njsults correct in themselves, yet, when naproperlij aj)iilii'd for this ])nrpo.se, it will invariably lead to iiu'quitable conclusions ; especially when some of the ])olicies in interest would become exhausted before payment of full indemnity — a contingency for which this rule makes no provision, the con-sequence being a claim for confribution from the insured, ov some of the- other ]iolicies, where tlienj is no lial)ility. And, where re-ap]iortion- nient is resorted to in order to make the indemnity of the insured coniplele by re-asses.sments upon the unexhausted iiisunince (202.S), the results would still be inequitable as between the, companies, because the Ixisls of such re-apportiounient wijuld not be correct. (a2H», t2»Ot».) dl«1»7* Ai>y rule wkerehy no)i-concurrent compoxind poU- cidii, Class 11. (20H5), are made fo insure pro rata specific amounts upon the several subjects covered by them, ufill neces- sarily be incorrect, as being diametrically opposed to the funda- mental principle of thi.s class of insurance, which is " liability to its full, not simply pro rata amount, upon cither itevi under its protection ; " which principle is not affected by the inability of the policy to meet its obligation ii\ full upon each subject. In such cases it must meet the loss, so far as it is able, iu the 766 Ul'LE VIII. ratable pniytortions of its total anumnt, as indicated by the loss upon encli item. 3I5M. Ill illiistmtion of the failure of this p'o rata Rule to work (■(HiitiiMy with compound policies of Class II., Statement xix. (2221) has l)eGii seleuUiil, which, heiuy tluTo worked out, will obviate the neceseity of repeating the process here. EXAMIM E 1. Coiii|Miii.v A covers pork |6,000 Los? oei |x)rk . 1 1 0,000 " B " fK)rk ami Hour 5, ((00 " " Hour.. 3,0(10 " C " pork nuii grain 5,000 " " griiin. 6,000 " I) " fxirk, tloii rami grain, :>,(I00 Total Iosh . .$IS,()()0 The a})portionnient of iuHurance among the several compa- nies, worked out by this piv rata RuiE vili. would give the following results : — Coinputiy A, sperijic, covers j)Ork |5,000 '• B, i/eiural, (iovers pork aiiil flotir 5.000 On wliicli llic k)SH is, re.-*pectively, $10,000 iiii'l $:-i,000— $13,000 V\'e firi'l tlie innuraiice on each iteiii, as follows: — On pork, as 13,000 : 10,000 ; : 6,000= |3,84(i lU flour, " 13,000: 3,000:; 5000= 1,163 HA Total tS.OOOOO Or simply, \j on |Kjrk, and ^% on grain. Conipuny 0, general, insures pork and grain On which the lo.ss is, respectively, $10,000 and $5,000.-15,000 We find tlic itimranre on each item, as follows : — On pork : as 15,000 : 10,000 : ; 5,000= 3,333 33 ^■/•am: as 15,000: 5,000 :: 5,000= l.litJi; fiV 5,000 Total $6,000 00 Or simply, f '^ on pork, and -^ on grain. Comiiiiijv r>, (jeniTdl, insures pork, flour, and grain On which the loss is, respectively, $10,000, $3,000, and $0.000 18,000 We firiil the insurance on each item as follows ? — On jwrk- , as 18,000 ; 10,000 : : 5,000 :==$2,777 78 flour: as 18,000 : 3,000:: 5,000-= 833 33 ip-aiii , as 18,000 : 5,000 : : 5,000=1,388 89 5,000 Total $5,000 00 Or simply, 10-18 on pork, 3- 18 on dour, and 5-18 ou grain- BULE VIII. From tho tbrogoing we nanies. Pork. Flour Grain. Totals. Companv A 1! $5,1)00 00 ■'. sir. ir. 15.000 00 f 1.153 84 5,0(1(1 00 «• c :i.:i:i/i :w $l,Ot!(> (i7 5,0(1(1 00 " I) 2,777 7H 833 33 5,000 00 Total insuruncer .. To pay io8.«eB $14,%7 27 10,000 00 $1,9«7 17 3,000 00 $:{,0.")5 56 5,000 00 $20,000 00 18,000 00 3150. When it is romoniherotl tliat the amount of imnr- aiw '■>■ tlu' maximum of liability AWTiiV)^ atid that coiii]iouiid policies alwiiys tluat witli tlie los.s upon tlieir si!V(;'ial sdhjocts to give full indemnity within their respective amounts, but brief consideration will b(3 necessary to detect the erroneous results of the above apporlioumcnt, and to recognize the untilne.ss of the pro rata rule when applied to comjK>und policies of this class. And should re-apportii)ument be resorted to, to comidete the indem- nity as under Ride Y I. ;3I*I».) the basis being erroneous, the re.sult undei' re-apportioinnent must be wrong. Take the itenj ijrain, covered by policies (J and D. To C it is a ■•^jHciiic item, and the general loss bdng leas than the arifireyate insur- ance, must be first paid to its full Vujbili.ty (^OWJ), or one- half of the loss, S'J.oOO. Hence, under no circunistancos C(nild the insurance by C on grain be less than its lialiility. §2,500, though it might be more. And as D, under the contingency of the ioss, also t)ecomes speeifi.c\i^oi\grai)h {^MY7t)^\i must make good the remainder of the loss, 12,500. Hence, its inMiroMce iii)on the grain could never he less than the amount for which it becomes liable, and which would yield full indemnity to the insured ; so also with B and I > on jiour ; they both become specific upon this item, and must pay accord- ingly, the liability of each company beitig $1,500 ; hence, the insurance by either could not be less than that amount. So again with Company D, which covers each of the subjects. T WfW 768 RIJLK VIII. It is a (M)-insui\>r with B and C, on their Mi>eei/k ifn^n, and must contribute with thtnn : $1,500 with B, and :82,riOO with C, and p.iy ttie.so amounts Iwluro contributing with A .-ipijinfic on /«)/■/•, hiiiving the sum of $1,000 as its contributing imur" a))cj: on that item. Tlu' rutahlf pnjportion.s (20l,i»oo 00 ,5,000 00 6,000 00 In(>iiranco $:{,(i()0 00 .•{,000 00 flill.OOO 00 IS, 000 DO PavH From a C'>mparisrin of the results of these two tables, it will at once become evident that the liability of a compound policy of Class II. npon its specific item does not de]>end upon any iiile of proporti-jn, but is fixed and determined .solely by the amount of loss. (»0. Thi'^ Rule VIII., on the other hand, properly applied to partial los.ses under comiiound policies of Class I., general concuirency, will always produce results in accordance with aj)])ortionment by the amoimt of loss, because the losa is the fe,ooo " on both, 11,000 First apportionment of insurance — wheat : — Company A, specific $5,000 00 '■ C, as 11,000 -. 6,000 : : 5,000 = 2,727 2H Total insurance $7,727 28 To pay lose of $6,000. F I-OH8E3. RL'l.K VIII. Second apjiortion »n<»nf nf insurance — flour .- — ('om|Miny ]i, ijiniflc 15,000 00 (J, a" 11,000 : 5,000 : : 5,000 2,272 T'i 769 Total iiiHiiruniio $7,272 72 1') piiy loftH of $5,000. Vox the icsnit of flu- ,u^,)fi'ihvHQn, reference ia made to Statement xiii. (tJIIMI.) From this exaniplf, it is evident that, even under concurrent insurance, conipouu.] policies always cover their sfiveral snl)- joots pro rata, in the ratio of the losses thereon. (a«l7.) EXAMPLE 4. SKtOa. |}y tli(! innpropiv iii^piication of this Kile vhl rontributive hmmmce hius l,eon confounded with coufrihutiofi —that is, the amount liaMc to he paid. Thus in E\an]ple 3, the contribiit'nr insKrance of company C has l)etMi considered to be the ami.unt whicli it must pnrurreiit sidijects of the other companies, making a marked ditfiirenco ia the final result. Tli(! impfofier ap]ili- ulion of the rule would -^'ivr. the follow- ing table of linal conlrUjuLiou : — rONTRIIIl'TrON. Companies Wheat. Flour. Totals. Salvage. Coiiipaiiy A...,*;i,272 72 $3,227 72 $],r2l 2H K S2,727 28 2,727 28 2,272 72 0,000 00 4< ♦' C... 2,727 28 2,272 72 Totals.... $6, 000 00 $.\()00 00 Ill.oOd 00 |4,(i00 00 P.y reference to Statenmd xiii. (a!*OS>), the error in tliis apportionment will lie self-ajiparent. YY f^n^mm 770 I'.NdUSII ][[ LIS. IX. *iH(l. >ci widr in tho divergcin.!.' iK'two-n tliu ayst»'iiis of tiiv undfi wiitiM).', iiniiticcil in this I'diititry iitid in Kiij^'liirul, tliai. the iiiliM of t'illnr an' fntirciy milittrtl lor iimctical iijipli- iMlioii ill tlir ii)i|ioitionnitMit of iiisuiuiicfs tiiult r llic pulic ii's ol' tho otlii-r, t'.\ H'|)t in .so far uh tht.' KtMUMul jiniiciplns umicrly- iiii^ lli<' coiitiii''t of tire iiiHiiruncf intiy \n' opi niHvo in lioth ; l)iit, as iillico rmm litne to time) cxiHl for llie rcxridiitiiui r applicable to all {(i>!»f kiy whirh >'\\r\\ in -t-t in an. I Inn -o rinjc aiul uin'iiiiifcicil that the woiaiiT is, ti'ii thai :iny iiltciiipt at iiupriivcMi'Mil Iiuh given r\!»i tu a vvord of wariiin;.', hiii raiinr lliut the ciiiiil'tr-'oai'- ci.m.'-truciii.n HhnnM have lar-tei! ^o luraj." li wi.uld thus seem that oin tiatisatlantie con fn^ res, tlioii-.;li many years our seniors in the jtraotict^ of underwriting, have met with no better snc'ess than ourselves in solving the prob- I(!ni of oqnitiible contribution, and that their ol>ice.s take quite as much li'icrty with their e.Kisling rules as do our a(lju.^|^■^,^ with ours. tilii*2. The preponderance given to the average policy in practice, by which it i,s permitted to oserride tlie oouditioua of F.NOMHH Rl LKII4. 771 ^! the Hpocitii!, whvu iit uuiitact upon tho saiik' Iusm, iin'l tliu iirbi- tmry tniinni-i nt' iippuitionitiK liability among avunige polirica tluunsi'lvt's — Ity inuyix iiislciul of suIiJiiIm — when not fully rotn'iirrciif. in\Ht always ir^nll., as Mr. llouKsaiil. " im'(iiiital>ly " l.o soini' of llic I'liitios in iiittiioHt, U'^ually to thu " Icssi^rraiij^'t'd " })oli( ii?s, aii'l tilt icMponMJltilily for smli wnnl of f(|nity will, us usuftl, l)t' thrown upon tlio insturd lor " not Imving hiw in^iiir- HiiceH wi'^t'ly arranjicil , " ami tin* olliccs will contiini" to lie railed upon "to ((hKtutf tliu in^urnd as to tlir nmnurr in wliicli tli«y aliouM arruni,'i' Ihtir insuniuccs," wlu-n it is will kiinwn tlmi ninity-ninc out cif every liiindrtMl fftrnis of polioii's onianato lr>>m tho olliivH tliciiisclvo.s, the insured .ieldnin furniMhin^ more lliaa the suhjeet, so ■• \U locality. Were it otlierwiw, it iw Mim[ily «)ptional with ' c i i)m])ani('i to writt> tho policy as oll'eied or nut ; Lhuy could tledinu to write it' the form should he ubjco- tionul.h'. (21 1:1.) In speaking of ihe insured under these ciicumstances, Mr. CllKlSTiK, cited aliove, said ; — " Ai |ii''-<'iil tie enjoys Hlii'ltcr innliT H;iili'raiici', biH'iiii-e tli»' cn-iom of tliC •illicet', iiH to liinv''-"! etc., i« mcxiilKiaMf in ciiiinnoii 8ciisc,uinl !ii' '\^ laiiicil I'V ilieiii." 3lfi!i. This diveri,'ence in juactice in \\w two countries originates in the markci'i nnd fuiidamontal ditferenoc luiween the respeclivo policies, which have little or no ain»ilarity in hnin aud none in their iH'iiiini,', as between tho (^om])anies, under adjii,Hl,in(;nts of losses. (JIO.S.) The average ov jioating policy forms much the larger portion of the mercantile insurance in England ; lieiice, the majority of their rules have reference to this chiss — while, in this country, tho atH-rofji' pollen, as used in England, is little used, mostly by EnyUsh agencies, in the larger cities ; iind adiu.stmcnt.-j of liontiaq pohcies ", -subject to uicntge" are made entirely upon the juin- ciple of iiule]>endeut liability, when in contact with other lu- suranco. (ilT.) 772 ENdLISH RrLES. Tlio t'dllowini^ iiu' '^iiiiie nf the English rultiH unalagous to and more or less in harmony with American pnictiec : — FIliM' — AS ro TIIK INSirUKU. 12104. '■ As tin' iii-iuri'i| "ill lie I'uiitlcil to all i>\' \\\h seciirilies. the I'liiiiii inii.-l lie -o oonducti'il a-s to givi' liiin iln- irreiitc-'t bciu til upon theiu." Tliis \< equivalent to all of the leailing ileci.sions of American courts njHiii this imiiit. (UO.W.) 'Jlti.'. ''As llie insurcil imi-it be no HiifTeror upon citlicr itrni of prop- erlv -'1 |iii!L' :i> luiv part of Wia .ijit-rifii: iiisiirance upon il remains impaiil, timt specilic insurance must be oliar;;eil witli the above excesH." In tin- rnniit^etion, it nui.-jt be nnderstood that the specific insurance rt icireil to is ixny insuran e, specific or compound, nnf ^uhji'it f" nil rtigr {iWH), With this qualification, this rule is eijuiviilent to the cun'^tiuetioii nf the contribution ( lause. t21(V>~ii, • il tiiM'ase nuist tlic contriinition clause he ciMistrucii as to liu'iivv i.-> ii|>"ip ilie insiiri'ij asraiiist wiiieh he would have been fully pro- teclt'l li.'i'l In- |ii)l|i V b»'eii Tree fi'iuu ibat (llause."' -+;{.) This is iM]Uiv;ilent to the ruliuo in G (.'owan, l.Hifore ciuotcd. SECOND — CONCUURENT POLIGIKS. 2H»<>. TIi's rule ay)plie,s when the policies are concurrent and are all .i/'iriticil, nv all subject to averiKjr, but not whoii the two are combined u]ioii t!ifc same loss, 1. " The |«i|.c_v «ith the wnlesi range (the j;reatest luirnbor of items) in- cluded ill one sum 18 held tu be liabb' tor the whole amount upon anv one ilem." 2. •' The (Nilioy ^vitll tile more limited range Clesser number of items) is equallv liable fur its whoK sum upon eucli item within ils raii;L»e." ,T. " E.ich (viliev is hi'ld liable to pay upo;i a partial losi* upon one uf its items, in |iro|X)rtion to ils respective amount." The principles of this rule are i^ipiivalent to those embodied in cniii[iound i)ohcies, Section i40,/ in-^urunce in to be dcliute.i from the average polices, an.l ,he onlinarv average appM-tionn.ent is ,na,le „no,i the remainder. (For a delimtion of"' specified pulpy " see ;JOS. The i»riiieipl,> contained in section I was act-d iipuu in T.hi.s country for ni;uiy y.^ars, whore specific and compound polide.s were, in rnniart. without reference to the marked difference l>etwe,.n tlie American "speeiHc" poli.y (:«0«) and the Kn-dish "specifi..tl" pohcy (»0?*). or to the absence of tlie ;a4age clansc; and was, In- njaiiy, confounded with tlie Albaxy V.Vhi\ whicli is its antipode, and was adopted to counteract t)u- .dfocb of this very rule, by lirst exhaustin- the compound policy a,nd thus reheving the t^pecific. (2J:{(i.j , aiOS. Tlie following is an example of awrage and ^pediied policies ccnnbined upon one risk . A covers $2.0011 on su^ar, iu warehouse Nos. i and 2 " " '-""I* on sugar and coriee " " •. o und '! c " 1,750 " « u ., ., t ,, ; ' ',. all subject to avcrasre, l;>co^er.SI,OOOon.uga.^colfee, and spices, ,n warehouse No 2 ''- '' l.""0 on sugar and .spicoa " .. .; 2 B' " 1,000 on coflee .. » ,, ,j V it'iout the average clause, or njiecified. 2l«i». lly ,.h., thinl Kn.Ii.h ruh, (tilOT; the specified pt-licies J), F. ill id F, would l,e Hrst exhausted, if iKicessaiy to meet the los,; then the average policies would ,•(.11' nlmte under Ku^' n {ii7*2). f,.r the remainder of the Inss, if ony by the. extern, of "range" of each policy , the smallest, A. being lirst ealled ui-on, and than the next smallest W. so that it miohtbo thiit the policy of the " widest range " (covering most items), C would es'jtipe entirely. The ^prc!jieractieo, (ifulo ^' ai»0.) KCURTll — NON-CONGUURENT AV ERA i ;F, TO t.fCl KS. 12171. " To Wi irk IVoin iK" wi.le-t ruiiirc polii'ie-i in otJiiijuiny with the most limitc'i, ami then tiike the halan(3e left o( crtcii of tho wider polices, fiftiT (iodiicting the first Hetrleinont, to niiik witii the uth> r pnlioies for the ri'iriuiiiiiiir portion of thi' loss.'" This rule, tliuu^h obscurely worded, evidently applies to compound pulieii-s, C'l^Ass 11., in Aiu 'rican practice, ami is exeniplitied in Stuttniunt xxi, c2!i;t»>.) EIKTJI — Ci'NOfRRKNT AVERAuE Vol ICIES. 121712. " The policies of the moe( liinilcil ran>.'e are a1! to Ih' tre.'iteil a» spofilii'd policies (.')), in the order (pf their e\(c!it, and are lul.e called on (irs-t, in that order, to make Kettiene nt ; while those of iireaier e\teiii. are only l>ruii;iiil forward ai the Kanie order tn cover anv excess of loss reinaiuint' after exhau«tirii; the lesser rani^ci polu;iet<," A dilhculty fie(pieutly in'curs under this rule, wh( u twj policies of the sawie rati(jt are found —which shall be sacri- ficed first ? m7lim Speakiuy of iliis, and kiiidivil rul(;s, Mr. Alkius said : — " Why !he ■nialle'^t ra'i>r<' should he cilled onto pay, while th> lari^er. equally coverin}; llie miine >i;oods, often wholls csca|)es, is a fjaehtion lu wliicli no oiIkt answer has ever lieen e;iveti tliuu that it is onvenieni, tuider e.\ *t in j; practice, that it i-hou Id do fu. All policies havt receivcl the pre- tniiiin, and cover the same irood-^, and slumld ijouhlless share the loss ; hut ii has been ILiaid tlie readie-t, if not the fairest H.diitior. of all diHiciillJei<, lo Biiopt ihee.xisinm rule; and.it may t'O .i Ided, (hat in all cases it is a rule much easier for the bost-infnrined to descnhi than tt, jii-lifv." There is iio cast; in Auiericau practice where tiiis rule can apjdy. m CONTIXENTA L K U LKS. " TNDKR AVI^UAOE." FII18T — lON'MHItKM I'OI.irrKS, 2171. All Continonlal policies aro hy law subject lo avorugo. IHS " rflhos,unMinsurHoxce>o,lrl,f. vain, orthc {.ropcrtv covered, tho la 19 lu be Hh;uv(l pro raU with tljo insiimd." " If the sums insured vill be obtained'" " In case of any item on which tli.. ,.un,s thus show,, to be in-u^.d exceeds the value, thr loss i.. ,|,vided pro rata wi.h the .urns insured - In case of any item- on which the sums thus sIk.wu to be insured do not exceed the value, the policies covering thenv.n pay such pra,wtiou of the loss as the sums they respectively insure thereon bear lu the value thereof. These are the Aiiieriemi rules in principle, oniittiiii. tin, averaoe feature when not iiiclii.lrd in iho jiulicy. The mode oftiiiding the specific nisnrance under the first clause of the second lule ahove, is t,Iie sane;, as under Kngli.sli jiraetice. All adjustments are made by vtihies and not by losses. 2I7«. In most places upon the Continent the govermti^.nts hav,,- piovided police supervision, and a certifi.'d specilic,atio!i or inventory is mad<^ obliiratory upon tho insured, and in many places this inventory must be furthei approved by the police aiitliniitics before insurance can be elTcct.'d; this the nion/espe- ciiilly in those countries where insnra.ire is made obligatory by law. Hence, the complications s.i common to other countries in the adjustment nf losses cannot arise to any extent. (70.) 776 EXA:MrLES OF ADJUSTMENTS OF LOSS. In illustriition of tht> fbvegi)ing principles of eoulribution amoag co-insurers, e.\anipl(!s of adjustuients of losses under various phases will be given as Statements, numl>eriug from I. to XI.T,, with st'veial .subdivisions k» each, onibracing every form undt.T whicL jHilicies can be called upctu to e(aitribute. Com- meuciug w>h SPECIFIC T'OLICIES. KULE. *'il'77' Ap}x:>rtionrnoiit undor spei.ufk; policies is a siin])Ie matter of value of property lost or damaged, and the relatiou sucih loss ordamag'3 bears to the amount of insurance. Under- writers pay all loss or damage within that amount. If there be mon> than one policy, the aggres^ate loss is di^'ided 2>ro rata among the co-insurers by h'ule VIII. (tJl.'>a.) 777 STATEMENT I. fei7H. J'arfial loss or daraar/e, under sevoial .•^p(^eitic poli- cif's, viol' entirely concurrent, on building and stock, with the coutributiim of the several ooiupanios. CLAIM. Daihiigc to huilding p(i-ap]imi.«oriient $225 00 Siiiidry repaifH per voucher. K] 70 Total dttma<;e to liiiililiii^ |241 70 Damage to stock as jter appraisement !*< 00 Total damage $259 70 INSUKKD AM) AHPORTIOXFn AS FOLIOWiS : Name of Coiupauy, Co (11 pan V A " " B C D K " F " G H " I. Total Building. Ins. on I'livdon fns Stock. Biiild'tr build'g ^500 'soo ;")00 2.-)0 ) ,000 oOO 1,000 2f)0 14,500 $26.85 '2V.85 2tiH5 13.43 5.^.73 2r..S^4 53.72 13.43 .Slock >n; Pays on; Totid Htock. Payni't $30(1 $0.42' 2,500 3.50' noil 1,32| 3(111 42 2,G50 3.73 2'«00 4.00 GOO ^u 2,(i50 3 73 j!27.27 3.50 28.17 27.27 17.16 53. 7.'? 30-84 .54.60 i7.16 $241 70i$12,r(iO:$lvO0J$25y.70 Tn this ca,se, the damage to the stock being small and easily ascertaiiiable, no account was tnken of the sound goodt,. The amount of the liability of the insurance was reached by direct estimate of loss, which .onsisted entirely of damage to the sub- jects insured, without any complete de.struction of any part of the property. The ratable ])roportioii of each company was ascertained by a pro rtita division of the losses among the several amounts insured. 778 STATEAIENT TI. 2I7!>. A si; i pie ,«/9ec/;(.(! policy, in which several companies are siii)|)u^t'il to ^'O interested concitrroithf, with the app(irtion- iiicnt or cant rhution ol' each. This forms part of the prelimi- nary proofs, as Schedule B- RKOAPITULATION. Aiiiimni of stock. pt>r inviMilorv, Jai). Ijl-^ — ; voiu'lier^ pu1> mitte.i '. $10,000 00 Piircliasos IVom .lai». 1, \>i-, to tlalf of fire March 27, 1871; \ ouolicrs submitted 2,500 00 Total 8tock , 5;i2,r)00 00 i)i;nroi IONS. Sale" for cash or credit, fnnn Jan. 1 , 18—. to Mareli 27, 18—, per \ouchcis Miliniitted $},200 00 Less e«tiintae>40 00 ■^ :?,(,{) 00 *Slock on liuiul at liinoot'tire $y,U0 00 FIRTUKU DKUUCTIONS. Deterioration in vakie. nhcp-worn stock, etc, 10 percent P\\ 00 Articio usC"! in clainiaii?'.-- family, or taken out. for iinv pnrfKtso. nt't charged in account lOO 00 Stock saved in uchjnI order, per invoice, $1), 045. 27 — IcHS 10 ()cr cent, t 5.410 75 Damaged stock estimated i>y appraisers at sound \ulue 080 2t> Tola! loss INSUIU.'II AND API'OKTlOVKn AS KOI. LOWS : — North American Insurance Co...... f2,.'i00. payH-,'^, $778 85 Jamestown " " 2,')00, " i\ 77^85 M..rns '« " 1,500, " /, 4G7 ;iO 7.115 00 $2,025 UO Total insurance $0,511(1, pays ^2,025 00 * Tlie amount of •stock on hand nt the time of tlie Are," tho amouut of total loss, and the Hum claimed of «ach oompany, are called for In the respectivi' proof». I Oeterioriiiion having liofm < hargcil mi the " Hto.k on hand.it ihi tiiiic of the tire, " it in'iri WMieilUfdon the aiuomit of sound stock saved fioni tlie tiro. (174S.) 779 STATEMEN^T 111. Sl'ECJFIO INSURANCE, 2 1 HO (',)m|i,i,iiy A inercliamiisc $;i.000 " «' fl.NtUlVH 2,000 " b luerchandist' 5,000 -510,000 Loss, tntTchandise, fG.OOO ; fixtures, ?l,500 7,r,00 As each cfuiijiaiiy covers the several items in specific sums, the insurance is determined bofure the lo--^, ami pre.MUits the following as the — TTRST AIM'OKTIOVMENT OF IVSt'RASrE. Coiiipaiiy A covers tixiuivs .■?2,000, on vvliicli (lie lo-s is ^1,-JOO, ami contributes accordingly. (20(Jl).,) SECOND Al'PORTIONMKNT. Here we hav(> douUe specific iusuratice, that is, twd vnm~ panies covering the same subject in speeitic sums. Tiny contribute in the ratio of their several amounts wluch !,'ives the following : — Ccnijiany A, un merchandise ?;^>,000 «, " " r.,000 'I'otftl $^^,000 On which tlio loss is 6,ooo or 76 p.r cent. This j^ives tJie tollowini,' apjioriionuKMi' of insurance : 3.000 X 7o--- 2,250 for A. 5.000 X 75 --- .■!,7.'>0 " B. flN'AI. COXTKnU'TIO.V. ('oin)>any. Merchandise. Fixtures. Tutnls. Saivaire. ■^ lf'-^50 *.l,oUO $;),7;)0 $1,2.50 B 'i-'SO ;{,r,50 1,250 Totiilfl.... $(i,000 11,500 $7,500 $2,500 780 $29,815 73 STATEMENT TV. CONCUKKENT SPECIFIC POLICIES. 2IK1. fotal int*uranci', in sixteen comimniew, 145,^00. Total loss, $41, 05.').7:i, ur !>('>.«2 + jier (H'nl. » STATKMEVT REXUflBKD. Amount of iitveiitury, March 1,18 — $32,150 39 LtSd fihelviiig, ollice ami storo furniture, counior, tiuils, scale'?, aiiil si}.'i).-, not covered 2, "31 G(j l'un*liase- -twice date of inventory to day of flre, per iiirrcliaiidi.se acooiiHi on led^^cr $137,312 63 Lksis goods in cellar adjoinin};, and in Khfd on rear of lot, ineliided in nier- cliandi.'^ie acooiirit, but not coveretl by tlu'poiicy $i-164 05 Good." returned on bills of pnreliascs. ... '"''•i ('" r,,ino (U 132,182 02 Total stock. ..$11)1, 1)98 3,3 nhori'TioNs, S.M.K.s from date of inventory to day of tire, per nierchuiidise account... $137,5.j7 150 Less allowances to purchasers 23lt S.''^ $137,318 22 Estimated profits, 17} i)er ei'iii. (17-48.) 20,4')l (55 Net cost of goo sold ,«I l(),>^tlt. ,')7 OooiK -iived, as Bovuiil, per •iche.lule 1,070 00 «;il7,;t.3ii .'■>7 Amount of slock totally lost $44,061 7H Add friigbt and expenses, 2 1)5 per cent . ( 1740. ) 1 ,1 23 ,')8 Total amount of stock lost, invoice value S43,185 Deduct for depreciation in value, 2J percent. (,17-40.) 1,129 Net loss and daniatie AI'eOllTIOV.MI'.VT A.S'l) (.'O.NTIUni TloN. 30 (i3 $44,05;) 73 2 companies, $5,000 each, pay $4,841.29 each- r.(.iiil $0,ti82 ,5S 4 " 3,t)0il " 2,904.78 " ' 11,019 12 8 •■' 2,500 " 2,420. t!4 " " 1 9,365 12 1 , '♦ 2,000 " 1,936 .V2 1 " 1,500 " 1,4.V2 Totals.... $45,.J00 39 $44,055 73 - i:?2,i82 t;2 , ,.$ii)i,',»98 ;.!j 2 5 7 — ?ii7.;i:!.; fiV $44,061 1H • 1 ;i 23 ',S . S45,185 30 1,1 2t) <;3 I 7Sl STATEMKXT V. SPECIFK' POLKJIKS. t21 ago (iic, uiult.-r a number of fept'cilic i;oncurrent poli- cies : — Inveiikiry, July 1-t, IHTI, Store'....., !?r,2.7yi 21 Freislit on stuiie, per arc't. . 608 4!^ *63,459 70 Le^.j 'h per nent, on $ii2, 71*1.21 deprecia- tion ;iii(l ilir-cumiil 4,709 84 Pnrcliasos .Inly 1st, to l 47,037 71 Less prolitK at 18 J -If, jk.t cent, gross 20.iifi7 14 •S230,(W7 12 120,970 .57 In ^tor(> III till!.' offirt $115,006.55 /"ariori/ inventory, .Inly i?t, 1871 840,094 90 Pnrcha.ses and labor ace "t. 10 diiteofrire 2-i,]30 93 Sales to ilate of tire 833,240 14 Less" profit;- at 18 per cent. i/russ 5, 'J83 23 $60,831 83 $27,256 91 In factory ai lime of fire, Appreciation on 000 case." boots, at $4 J2. 100 00 •' " rubber goods 3,1&2 0(1 $39,574 92 |l;)4,04l 47 ,892 00 Total st<)ck , 1160,533 47 .f i^ ■■ 782 RTATKMENT V. Lefs ^^(locl.s fii'.voil !f 1;<,I,'H>' 4t) Freight on same 1 )'2 H7 Loss oust i){ leinuviiig , I. SO ou 918,401 3.-1 Total loss oil stock $U7,l;r2 14 Value of (uol>, as per iiivenlorv 09:? ;)■"> Loss on lixturos ami fiunil arc, adjusted at I JAM) 00 Total I.. ss ■?14U,32G O'J liirJiiraiH'i' on stock mid tooln i^l l'!,,"<(i(i Insiiranct' on stock without touift .So.OOO Fnsntiinr.c on otiice t'lirnitnn aii>l (ixinrcs 2,;'»00 iJI.NiJi". To this iuljustnifMit itre iippomUHl n witii^ism and aiiotlu'i iiiljusln'.ont of tlie samc the prolU i.s upon the merchandise itself, tiitirely irresjiec- live 01' the cost of .^torinj:, insuring:, and .-ellinjr, and tlu adjuster ha.s nothing to do with any .such matters in determining the sum to be de- ducted Irom ' sales' to a«certaiii the ori>;inal co*/ of such sales, which is what i.s ri'ijuired to do to hhow what value of the )/urchase.i were still in stock." ri'Iy irrrspec- 783 STATEMKNT VI. tJI.HtT». As wljiiMh"! hi/ i;, 11. LwvuLN'OK, udjmter. 1 H7 1 . Jiilyl. Ihvoiitory $[\2,1\n 2\ Oct. 7. l\iii;liHSfHi,),|iite |1H4.0)1 10 LtMs ^i„)S Id )?i7.-.9f>;i or, *'-H,TJt 27 '« 7. SuloMo date $ll7,(i;i7 71 J.uHw ju-ytitiii, Id l-lGper cent ll(;.()ii7 01 120,;t7o r,7 $120,77;! (10 Goods saveii 13,5SI .•{;{ !j(l07,ll)2 27 Add freight, -^ay 1 \>vr cent 1,0" I \>2 *10t!,2G-i 19 Deduct 7i per ci'tit un J, .-^uv .'?2T,0(i(»,dofiro ciiili.iii luid disooiiiit , $2,02;"! 00 6 per cent, on |,sav |27, 000, credit pur- cliases ' l,;!;".0 00 ?.'!,:]7;) 0(1 Value of croodH lofl) $1UI,8SII I'J Cost of saving good- IHO 00 l-OHS ill factory 3y,r)74 02 (a) Ajiprecialioii ol goods 5,^1)2 00 Insurance, $1 13, ">0() oil ( 1). (1). iMiicliandif^e los.-. .jjl j(!,;'.;!(; Jl Tii-iuaiice, Jio.OOO on (1) and (2). (2). Tools " .. (iO.T 0,5 Lor«8 Oil nii-rcliaiidise and tools I,51,2:*0 O(') [n.-uranee, S2,."i(il) L.is.s on furniture and fixtnreri 1,;")00 00 (a) This item is entered here l)eean.«e tiiere is iiothinj^ to indicate whether it belonged in Htock or factory. If the I'onuer, it dhoiild be adiled to th.- $101,88!). li). a.s " value of goods lost." J{. 11. Lawrence, Adjuster, 784 .S'lATKMKNT \ If. 2IH<1. Tin fdllDwing Is iin iU'tiiul iidjiHtini'Mt of a rlaiin ari.siii;^ tVuiii lln.' ^,'n'iit CliicagM liri!, Oct.ihir, 1S7I- It, is siili- jtH'l to tlic uaiiu' ri'inaiks as llm jiiticculiiig adjuatnu'iit. Invfiilnrv .l>iri. 1, IH71,hI iii-t hiihIi viilinni.iii, iJiWlit.CHii ()() I'lirclui-p- to ilatf of lire, rt-ilncol U> 'M iiiiy«, cii^liviiluaiion |2,r;'J0,(),-.(; 00 Ditto oil iiH'iminiiiiiiun l,7l)',t 00 *2,ti!M,7ti.. 00 lies'- tiiiii' iliHcoiiiit .Ml !jli;i),i»'J'.'.(»0 i^n.M|- III (..ifkiiinfh ♦2,026 C8 liittc 1 (ii'r I'l'i't. oil hal.iiiOi' of jiiircliHsi ,s, lo reiiuc'clii 10 iluyd' cawl. priiTH 2t;.2r,fi 73 20,18:? 31 Fiiroi^;ii aocoimt, ilnticM, prorniiini on i?<'lil, aiici ir(";:lits iiiit iiiclinloii in iiierc)iaii
    • tc ai'iuiint 70,G12 00 I'ihic.-li(; lii'iglil ttccnuiil— K'kmI.m in packngi-e 7'Ji W '• " '• hiiiiiiK'e of |iiir- cliaat'K 35,>''(3 J 2,772,828 *;» f'l,lti!,014 tJO SalPH |2,sr2,H 7:i 00 Lesc p^ofil^, 1;< pfr icni .ViO.OOfi 00 2,50fi,ofin 00 Total lots 1654,546 hO (ioc>'N ii' iiiirk-ifses ^60,092 00 LesH iliHcimnts -,0h')58 !p«ti,175 42 Atki rriMj^hls 701 96 #66. •.!(;- .^8 Block iiiNoH. lOatnl 21.... i.'.L.f.io 00 " ■' ir)andl7 4;i0.0i;s ;U • $65l,,')4.) WJ The i)oit»ta worthy of note in thin ii'ljustment an.' ■ — 1st. Tin! reduction of the properly to a cn^k hf n cliiiiii I. It is sill). nt. *;W8,«s(i DO It 2,772,828 •;9 |;t,l(;i,5U 09 - 2,.'i06,!«;n 00 . |G54,546 f;9 *rt54,j4i> 69 11 tlio dtock. m STATK^rENT VTII. Bi'EClKlC lN«LIUNt:K. *2tH7. TliiH 8trtt»riju!iit iif'8t)nt,8 flotue [Hnniliai fL'aUuea 111 c snM, wlii.-h iiccossit.itua mnno. coii- .sulciiililc 111!.!, I and kiinwlc.l^r,. of liook-kct-piiij? to iirrniig.! tlicm (.'oiTCi'tly, 8.) u- t,() cxliilpit, 111. lialtility of tho iiiMun-rs ii|>(ure l.'),!.''^ ;J9 '■ returned ij.HidMiiid diHcoiuits [i.'Xii 7;j " III ii^lit ciiiii-i.'t'l twice ,{[>i) ;■{.'! $28fi,4t;4 30 1138,079 93 57„'i7-l (Ifi Total pnrcliases in Ied>;er City bill- not iiiiered Mercliiinili.se jmicliUMvl nt C S Mnnn A Co Add hiintetn Fnrti'iy inventury, tOlh June, 1M7I ". . Purcliasi's. nierchandi.se, and la- bor in laclory $30,815 87 Le.sH di-^co\inis and unndrv e,\ penaet' 2. 780 ;i I 229,OH:i 64 ;^22;i 23 1,753 Gl |21),5,l4n tl *24,370 27 Ss.o.'tt r,;{ Tdtal debits Lantern Factory 52.405 80 Total merchandise debits *-(i7f-.. „■ • • »'>47,5o2 21 ZZ 786 STATEMENT VIII. CONTRA. Sales j:;eneral mercliandifie Less amount id l-antiTii Factory $13,21(1 55 " rotmned ^oo.i.-< and allow- ances ' 1,M»9 41 Total salos general inerchan- di-p Less II. .522 jHTCPDt. profit Co8tvalneot>('rieral nif'rehandif?e sold Sales from liuuern Factory in debit of jifiicr.il merchandise. . $3o,88C 21 Less 22 per cent, profit 6,471 29 Cost value of Lantern stock sold. Tiitftl sales f.'507,20fi 73 14,81, J 90 $292,390 77 30,2n8 t;3 $262,182 14 29,414 92 Merchandise on hand at time of fire Add iialuce-ciir ornaments, trim!niiig«, and samples, not in ledger EnKiU'-, l>oi!er, nuicliiuery, and tools (compromise amount). . $291,597 0(1 $,55,955 1,5 l,5fl0 t)0 12,500 00 (OMMisaioN csooua. Thornii^ Tnrton k >Son Morrill, Tasker k <^J \Vm. .Ii'.ssop A; Sons New Eiif;land Car 8prini; Co. . . . C. H. Ilu.ssevA- Co....! $8,737 02 3,532 90 19,687 54 2,042 65 6,r.59 61 Total coniniissioij goods. Deduct merchandise saved, as per sales and appraisement. Net lo::T»/r' "-"■ • "«^ ''«'" •'«■■■ xiZ4,o^b 4(> /V'?«''/ sale, on acoonnt con.icrnor. ftT^Tl^^T^^-'''^"^'''^ »'> 1-e..- connni.Hions and charges.' V;,'.*;.;;; ^''Jf^J J^' 147,211 72 .•1'/(/ fjviglit, at one per cent, /^I'/'W 10 per een... to brin. ,onsi.nment« on liund (o actual cash value $128.1 >^4 73 1,281 84 $I29,.466~57 12,946 65 Total lo.S8, consigtiee's account .... ~T $116,519 92 fWN"Kll'.S ACCOr.VT, Merchandise purchased (oJannur^- 1. l.^n ., j, g.g jg " '"'^^' " 73;i28 87 Total Hales per merchandise r .ouni #-:],51o ■>! Less sales acc'f. con.igr.e ^as aho.e). 147.211 7! $75,115 00 Sales on merchandiw aco. ^unt $74 99^ r,, Less profit, 15 per cent c, "^p, , { Orosslo.ss Deduct merchandise .saved Net loss Add freight, at one percent, 64,C07 40 $10,507 60 612 .30 $9 895 .-^0 98 95 .1.994 25 Total lo.«,tnerchandi.e and consignee .::..„, ^-~ 78S STATEMENT X. MANUFACTUIUNG INTEKKST. :2l^i1l. Tlie following is a Vjona fide adjustment made where tnurteeu eompauies were interested. The policies of six companies read as follows, viz. : — " Oil lioots mill sIkh's, nutiiiifactiiri'd and in process of manufftclurp, and stoik niid iiiftteri.tis for the iiiaiuifacture tlicrfuf, coulaiiied in tlie fruiii building oi' hie tluTP-Htury, etc." The policies of the other eight read concurrently, except the omission of the \\f)X(\ front. An additii)n hail been Intilt to the rear of the original buiMing, and whun completed the dividing wall Iwl Ijeen removed, tiuis making the two iato one, so that at the time of the fire there was no fi'nnf room. SfTATKMKNT KKKHERKH. l.neiitoiy of Stock, IK'C, 18— $100,795 21 Invoices of jxircliases n^ince to date of tire 2(i.i,t>S5 (14 Labor account, paid liaiids in that time 87,GD8 o>: Total f>t.jck $4u2,l 70 iW JlKDfL'TIDNS. .SalcH per niercliiindi-e aoco'.'.nt Ji.^lKiJti;-! a8 Lesh, prolits 10 per cent .'J9,:i7(! 3!) CoHt of goods isold $;!r).t.;!K7 5!) Value of salvage 2^fi'*(i 35 Sh linkage on invoices >i.91)0 t!l $39i,9(;i ,-,-, Ti>tal loPH claimed $(i0/214 88 COXTRIlMTlnN. 'J5IOO. In making up the contribution for payment of the claim, those six ( ompani'S, the policies of wliich cijntainod the word/v'OM/, were deemed specilic, and the fight [lolicies without the word ^Vovii were doomed geaeral. The tkinl English rule, where specific and average policies are inter«.sted in the same loss, was applied. The )*'pccific ])olicies, so termed, were tueut made .. $452,179 « STATEMENT X. ^g^, Six specific policies coverino; $2r,,00(), pay t"gl'f general •' .< " 42,0(10, - , .$25,000 00 Total loss. T„ ,, . $60,214 38 S3 7Q "' """'"'r^ '' "'^^^ '^« ""^«'i tluat an error of of $39,376.39. i^^",79b.72, m.stead ai!»l. p,y ti,i, adju^trnont no injury wa. ,lnno f .i msured, as he rocc.ved the full amount of 'h','^, ^ "'^ thing more: buf. the .pacific con.pames were 1 1 "" more than their i,ro rata shares. ' ^'^^ Tliis injusdce and the error in estimating the nrofit. u-l ' i the insure . * i '-.= ■)■ Al.».„ 1J,.B would havil«,. applied! '""' ''" 790 COMrOUND POLICIES. 31 02. Aseimi/hyioKl policies are simply upecijic in-myanres in the i(ii(jri'(jatc, tlie first 8te|) in the apportiomnent will bo to detonniiie ihu amount of spevltic liability oi thu policy upon oach item under its protecti(;n, which, in all cases of general insurance, loill he in the exact ratio of the loss upon the several sidtjerts, witliin the amount of the policy. Tlu; result thus obtained will be the prorata proportion-^ of fhr iasnraarc, in which the 'Compound i)o!" ' must couirilnitc witii co-insurers upon the respective iteu).,., i-j m> or>linary specitic insurance. (»07.) \ SIflS. As compound policies are li;il)le for llieir full aiciount, or any ratable proportion tliercof. upon any one of the items, thpy viuM float with the loss in such rataltle nums as may be necessary to make good the indemnity on any item, should, iha pro rata proportions fail to aecom])lish this result. From these propositions we get the feiUowiug ; — rulj:. 12ll)4r. Coinpoan>1 i-K)licio8 beik'iiie fi|X'cifii', iii)il cover tlio '^•'vcral iiem-i uiiilor thi'ir prott'ciii'ii in llie exact proiui'tioiis of the ri'sjiective losses. tillkfl. Tins is the underlying principle of ap[)ortionnient of AiJ. compound policies. Its comprehensiveness and univer- sal applicability entitle it to be designaletl a aENEiur, rv\a'., under the opi'rati(m of which the ratable [>roportions of iumir- ancfi \\\Mm each item under a compound poliry can 1k' correctly determined, subject only to the moditi(;;ilion> reiulercd necessary in cases of exliau.sted policies (U(>»>;5(, when indemnity upon any one item may be incomplete. In such cases, in aecord with the nature of compound insurance, a re-adjustment of the assessments may become requisite. In the following l^tafements selections havt; been m.'uii' ioteM the nniversalil ij of this prinelple us a nt/t', embracing every variety of circumstances where compound insurance could bt; made ; and the tirst instance is yet to be found where, properly apjilied, the jiropositiou has failed to produce (;orrect results. COMrOUND POLICIES. 791 STATEMENT XL CLASS I.— GENERAL CONGUKREXCY. EXAMPLE 1, 211)0. Companv A covers .nerd,an,li.e ,, „,,, " " fixtures , ^:];"^'^ « r> (, , ,. ' • . 2,000 meruhaiulise an.l tixiures 5 (,(io Loss merchandise $1,000, fixtures $l/)00 .Jr!f^'^'' '•'^'^"^ '""''^"""^ P^^'^'^'^' Company B hecon^s speo^^c at once „. the ratio of the loss upon tho tu-o sul.C t cover., as ^t.OOO ou iPerchaudis. rs to $1 500 on Kt '^ . ooutn,..es with Co.upany A u. these p'p: J " : H;:!^ 8 ^ Hence. Ccupauy B cove. n.Judiso i t ! ^^ " S-11 of Its amount, and fivture^ in flw . ■ • . ■^"»' 01 will give the followin. " ''"'^"""° ^"^l" ^I^^s APPORTIONMENT OF INSURANCE. Oo„.pan,. Merchandise Fi^^.^s. Totals. u *'!'T"" ^2.00000 $,,000 -^'^illi^ _!:!"L^-^ ^'••^"" '^'' '"■'^' ''^^■"'^■•^ ^''"«'i 00 $i,r,oo o7. ^-5;;;;;^ From this apportio„n,ent of the insurance, the conourrenrv being general, we ,et by Iluh. VIIL (til52) U. fZZ: ' CONTRIBUTION. /Vr,'.- On inercliamlise:— A,as.t6,,;;5,i ;),;, ^4,000, 13,000 00--I1.80S 22 * B," M;<«:5(!; 4,000. ;).G3(J ;!6.-.. 2,101 78 ' , '^^^^'^ • «^)0l7. second: On lixtures :— A,u«$M.i3 6.1: $1,500. 2.000 00== $801 89 i^ 3,3(>.U.4; 1.500 ::l,3(i3ti4= 608 II ^"'"'••- $l^(m 79^ STATKMENT XI. RECAPITILATION. Compiin}' Mercliandise. A $1,808 22 B 2.1'Jl 78 Fixtures Totals. Salvage. $891 89 $2,700 11 $2,299 89 608 11 2,799 89 2,200 11 Total $4,000 00 $1,500 00 $5,500 00 $-J,o00 00 Tlie Kule of Proportion (VIIl.) (UI60) would give the same results, because the concurrency is general. E.KAMPLK 2. 2107. Had the loss been as follows : — On mercliinvii.se $9,000 On tixtuu. 2,000 Company B would become specific in its full amount upon meielinudi.se, the loss belt; '.ital - . ) the insurance upon that item, and requiring all of the in.iemnity to meet it, and beinir total, contribution becomes inoperative. Each company paying its full insurance upon that subject; Company A would stand solus u{)on fixtures; and the Kule of Proportion (V'lLl.) would not work equitably. EXAMPLE 3. SI9. The solution and argument of thelafce Mr. Bunvoa who styled It " a very dljjicdt case," are as follows : "Now, If the assured claimed, in the first instiin^B f 1 house, which wouM be $100. and ,he *S ."!!;, ^i't"" '" """ or two-thirds andone-tlnrd between offiVe. H I ,1 ' , ." f"'"P"'-''«"« ing$l;*;i.33 ntsured by office a, 1^1) hI S '.'"''' '''"'" '■'^"'^'"■ 1250 on the dwe,lin,,i., wLirti^iri^^^S.^^r Sj il^ f^ '' he would have a r.'ht to havo l,li.io,. ., .■ ""' i*-' sauMy U,. Hence and c,a,n>ing two-^irdror^^io!: ^is.^ 's^i^ir;;': Jfl T ' A, there would re.nain an insurance on the rar of l. n "^'^ Of office B ot$IOO, and the liabihtie^C'llrbe' as fcnotT-- ^' ''"''' ^"' Office A on <1 welling Office Bon warehouse. $83 33 Office c on dwelling. 11,;^.,^;;;,;,; ;;:;:ho„s;; $25;:::: m ;;j Total loss ■ $3aO 00 704 STATEMKNT XII. Mr. Biinyoii proceeds to apportion the contribution without first ap[)ortioning the insurance to ascortiiiu the liiibility of each office, but he fails to adhere to any true proportions, for policy A is perujitted to contribute with policy in its whole amount of $200 on dwelling, wbile policy I', with precisely the same claim upon policy on wan.'hou.se, is compelled to (tontribute upon Sci"''..33 that is, the sum loft over after policy A has had a/i that it wanted. He then assesses arbitrarily the loss upoa warehouse, updu policy B $25 and C 875, as the contributive proportions of those policies toward each other ; but no explan- ation is given how those amounts were obtained. (2213a.) Thus jiolicy 0, $200, actually contributed on $275, in payment of the loss. EXAMPLE 6. 2201. The late Mr. IJi(jhter, of the riutniix oftlce, to whom the cnse was submitted, solved the problem under the pro rata lull', but, like Mr. Bunyon, he made no apportionment of the insurance as follows : — Office A Office J{ Office V. [>wplling. 1100 00 150 00 Warehouse. SSl) 00 GO 00 Tutal. $100 00 50 00 200 00 Tulal $250 00 $100 00 .>?.150 00 Here uWiva' 1'. couLnbute.s with C m only $50, while its amount was SlOO, a guessing at conclusions. EXAMPLE 7. 2202. The late Mr. Hore gives the following solution, evidently bosed upon the ratio of lo.ss, as far as he goes : OfficcApayson dwelling $100 00 ■' B '• vvareliouse nnexl.austod insurance under a specific policy vvlueh i- in dm^ct cunliict with his own rule. '' "' EXAMI'I.K 8. aaoa. While this example is governed by tin- ,san... ,.nn -1. 'S as t OS. contn.,linK the precedu,, ^J...,; " it'; ^ loss upon the several subj..cts, rendcri... a n^-adiu^tnient of the contrdM,tin, insumnce neoessarv to fdly ind ,n ^U^ insurej. (liO.tOj " nimiy the ' '-'™1'-"')' <-. '" Mi's m..a„o., w„„l,l I,m„„„. s,,,,|,|, ,-_ FIRST APPORTIONMENT OF INSCRANCE. , ';;""'"*"-^'- I'-«Hi»g- VVarehonse. r,,,,, •'^ specific SI 00 (10 li « ••MIMI 00 $100 00 r ""n , '"f"^ fO 100 00 ' Uetu-rnl 1-12 Sfi k- i . '"" I'W '^'^ ^'> '>' 14 200 00 Total insurance liOSS $157 14 ^uw 00 *400 00 $350 00 aaos. From this aj^portioninent the amount r • »p™ .,.*■„, n.„. .,„„ j„,. .r.u ,; ;:r; , , ;~ dontly the same S7 wjiich Mr H^,. • i • , ,nra„,.e ,„„a the waro[,o„» ,l,„,ve.) a„ exces. of ,57 4 „ t tWn, whUe chaugi.g the a,,,,„,.l,„„„,e„t (.n.t'„n„aJZMt 706 8TATKMKNT XII. proportions, without changing the aggregate amount, the iii.sured will get lull i)id(!mnity, presenting the following: SECOND APPOKTIONMENT OF INHl'KANCE. Company. Dwellintr. Wnrohoiise. Totnl. A .tlOO mi $1(1(100 B 11(10 00 11)0 00 C 150 00 '.0 OO 200 00 Totnl iiisurancf $2,')0 00 1160 00 $40(1 00 To pay luss ■2.')0 (Ml 1 00 00 :;50 00 ' FriPiii which results the following : — * ' FINAf, CUNTKIBI'TION. Compauy. Dwolling. Warehouse. To(al Salvage. A $1(10 00 $100 00 B $C(i (>7 CO c" $;!;{;{:? c 150 00 :i:i ;« 183 x\ ic. ti? Total payment $250 00 $100 00 $:!:.0 00 .|,'.0 00 !i!24M(. Company A miike.s no .salvage lievc hecause, with the full i>ro rata Cdutribiition of company C, it,'^ oo-insurer, which wd.s ail A could call for from C as cuiitribiitor, the total insurance upon dwell ukj was still short of indemnity, hence, there can be no salvage to A on tliis item. Company C makes its "Salvage on waichoasc, where the iu.surance, even after C liad contributed to the $7.14 dtstieit on ilwdUng, was iu excess of the L)ss, iuid R makes its salvage because the joint contribution of itself and C were in excess of the loss. !j!i<>7. This operation fully illustrates the difference between fro rata, and rafohlf proportions as apjilied to contributive liabilily. Under the policy, C's pro rata of insurance was relatively $57 and S143, Init its ratuhJe proportions weiu $r>0 and S150 re.-^pectively ; thus changing the respective amounts, but not increasing the aggregate. (Ii050.) 797 STATEMENT XIIF. COMPOLIND POLICIF,.S.— CLA8S I.— (JKNEIUL (;ONOt,M{KKNCY. ii20N. A very apt and iiislrurtivo illtistnition of this daas anil fonn is aftVud.Ml by tho cxiuiii.lt' citod hy Mr. JIkmj) in STii.pnrt of tlu; Al,iUNV Ihi.K (211:*), and tlio equity of tlie two iiietluxls will 1,e ai.paront.—The principle is preeLely iho sanje as Stidetnent xii : Home covers wheut .fri.OOO in w.ireliouse No. 1. -^''"'ti " " 5,0(10 " " No. 2 ^'"••'^<'' " " 5,0(10 « " NoK 1 aM.l2. Los.s on whoat in wiirehouHe No- 1, $(;.(iOO ; in No. 2, .'J'l.OOO. aaO«. Till! Market, covering in hofh localities, ber.omes specific in the proportions of the loss in each, that is, as SC.Oi^O in No. 1 is to .$5,000 in No. 2, which gives the insii ranee 6-l]thsof)f.5,000inNo. 1, nnd5-llths of So.OOO in No. 2; and in these .sums it contribntes^with its co-iusurers, giving the following — EX.VMiM.r': 1. Al'l'OKTKiNMK.VT 01' INSl'RAXCES. Companies. Wftreliouse No. 1. Warehouse No. 2. Totals. "'""P $5,000 00 |,.,,o()o '■'•''"" S;'-.fi>. 2. 2,117 f.f) »:).4;<7 M \M2 AO TotAl«. Halviij^fl. Ih.hs'j! :(5 ^1.117 (;:. :j,4;t7 r.o \Mi M) 3,G80 1.5 I, I'J 85 '^.ptill^ |(;,()oo (10 |r.,mio (Ml ih.ooimmi #4,(100 oo titilO. I'.v the Alranv RiUK ('-iltiU), wlierci tliU o.\iuii|>Ii) is cited hy Mr. Houlil, in support of tli;it iinithocl of appoitiou- nuMil, we liml th(! following — EX.^.MPLE 2, ( OVTKIIII TluN. Conipanips. WHrcliouse No. 1. Warehouse No. 2. Totiils. Hoiiie li(3,()00 HH.OOO -Kliifi *2„5(I0 2,:)(I0 Market 3.0(10 2.')()0 6,500 Salviii;t\ $2, 000 2,,')00 Totiil.- ICOOO ♦S.OOO 111,000 !jit,.-)(IO Tin.: result is tliat tlu; Market'.s 'p^'o rata is imt a pn. rata at all, as it i.s !?ofl(» more than its policy, and it cannot bo called upon to oontriloito more than its face. The Homo and yKlna tMU'li making; a heavy .salvaj^e, the Afarket Iti'iiig totally exhausted (tJII7)» and the insured couios short $500, with 84,.5<)0 unexhausted insurance. I>y the. pro rata rule, the counutrency being general, and the loss pailial only, the correct pro rata apportionment would be as given in Example 1. EX.VMPLK 3. 2211. C(.MH>!inv A, wheal $r>,om Lo.ss wheat.... |r),0(iO " B, flour 1,01)0 " (lour 5,0(10 " C, whnit and flour 5,000 " Toiah $11,000 FIRST APPORTIONMKNT. $10,000 Company C is the cotupound insurance in tiiis case, and covers wheat and jlour in the proportions of the lo.ss; th.it is, one-half or ^2,500 ou oach, and beiwmes spocihc iu those BTA'IKMENT X[ll. 79^ ftuiodiifs rnspiictivoly. TIuh will give tlui siKHjific inHiinin.-e us followH : — (loriipanifd. Wlu'ftt. Kluur, TcIhIm Conifiaii N A |5,0«0 $,'>,()00 " '* fl.dOO 1,(M)0 " •-' _2^> V>00 6,000 Ttilul in-'uiwicf $7,500 *M,r.OO fll.OdO ^*- 5,(100 :,,ooo i(,',(,(i() From tluri !i).i)(jrti(»iinu)iit llicro uiiist b(> a ro-inljiistmeiit of itiHumiicj ni)on jl.n>n\ su tluil tlu! insiiiXMl ,<,ii, l)o fully iii,|i.iiini. floil, the (l.jticitiicv under pro rata (xnitribiitioti boiiig SI, 51)1). Ah ('oiiij)iitiy C is the oompoiuid policy, rtoiitiiig with tho loss— ioif/,vnt ir/eveace to pro rutn proportions— and us thiiny A $j,000 i;-,^,,,,,, "■ ]^ *i,ooo r.oiio < _i^ W .o.ooo Total in -iimnci' ..,.j(i;,000 |o,iioo $771)00 '""■' •'">.'•"»' 0,000 'lo'.OOO Fmm this second apporiionnient is ohtainnd the folio wine; table of '^ FINAL OONTRIIIUTION. Companies. Wheat. Flour. TotalH. Salva-o. ^oinpmy.K $.M6.>67 $4,l(ir, 67 $8;!;A;{ '^ *1,000 1,00000 ^ J^^ ■•'"•'" 4,s;):U3 IG6"(57 J'^'*'-'' $5,000 00 $0,000 $10,000 00 $i,ooo~oo ^"^•^ .5,000 00 5,000 10,000 00 2212. By this apportionment it is evident that Com [.anies A and () m.ike a Siilvage, while Company J} is exhausted by pro rata contribution as the ^)ro rata insurance on /^,>,/7-_all that Company \'> had any interest in—was only $3,500, while 800 STATEMENT Xlll. the loss was !?5,000 ; thus, exhundinfj B'fi insurance and leav- ing a (loiicit of $1,500, whicli, so far as 15 is (.■oncoriuKl, wouUi fall upon the insured had there been no Hoalinj^ insuranet; in reserve to idTord indeiuuitv. jiut Coinjtany (.-' as a jhnt.ti'.r eomes to tlic re.-^ie of tli'' inHunul, and pays thi.s Sl,r)Oi» ro raid. ])ro]i(n'- tion vnjiour with B — all that B could elaiin of it under the contriloitiou clause — all further liability of C as to I) ceascis, C beeoniinj,' liable oidy for any deficit ou jlour that uiiyht other, wise f:ill upon tilt' insin-ed. KXAMl'LK 3.- ■ »V PKO ri.\T,V A ri'OUTIOiNMr.NT, Kl EK Vlll. 2t21t2a. Many underwiiters Imld that Company B shoidd have made a salvage in this ease, as well as tli(! other companies. They hold that as tin; lusurau'-e was SI 1,000, and the loss $10,000, eaeh company should l)e liable (tidy in 10-11 of its amount — the ]iroiior!iiins of tlouipany (' being as in the folhjwing table, where the fallaey of such claims is eleaily evident, coNTiuiirrioN. Coni| uuies. W'luiit. Flour. 'J'otiil- Salvage Ci.iH|.anv .\ $4,5 If) 4;'> $4,54/) 45 $45 I 55 H $:»0',t 10 90'.) 10 'M) 1(0 (" 45i 55 4,0'.I0 DO 1,545)5 45 1 55 liKMH-aiK-c ?5,i)(llM)0 *5.0(i0 (H) ;?!o,(iOi( (10 $1,000 00 LoHS 5.00000 5,000 00 10,000 00 ])y this ai)portionmeiit both 15 wnl C gain ii salvage, but at the t'Xi>ensi! 11.) 801 COMroCXD POJ.ICIKS. CLASS 11. — PAIM'IAI. CONCl'KI!K.NCV 22i;{. K.nl.mcui- items „ni covucd by any co-iu.un,... policies, spc'ific „r uoinpdiiii.l '' Thenwlerhjuni ^n^mclp/r is the samv as in Cass | ,he pohoy becomes speeitic n, ,1.. ,atio of ,h. l„ss on its se^..^al «..lyects. But >. fh,s tla.s t),e sp.c.ri. iumi t»07. 2071) 'nastalwa>f.lM'nM/,roriJr.lfn-i. t\ill uc-ord wah ./^/ l..j ciecisions ot our cuurLs, and re.ulLs in tlio follcwincr liiLi;, 22I;M. Hklp. in r.nnsylv.uia, K.ruii.ky, Missouri, Marv- la.Ki aud Now York; " Tknta ^.jUc,e.is is /,. i apporUoned („ th- .rp,r,Uc (sp.cifi.) .uhject until the Im. h pa>d: and th,.. uunan.L to be paid upon the joint (concurrent) sul^ieets IS divided lH.tue..n the i,.,H.ies m th- proportions of th. amounts of tlio separate (speed!.) p .licy on the joint suloeet lo flu ,a,U,.n,drrn{ th,- p.-liev o.uupound) na huth subieeN " (30.12, ao«:$, t>2l.l. 2220. 222;j.) 22l»b. Slight rOMSldrr.itlon of this .le,.,sio, will show i, to 1m- hased upon ti,e (Jkxkk.vl If, •,.,.; (2IO;5; heretofore uiven tiiat compound policies are Iia,bh. in the ratio of the lo^s //' ih>S CLASS ilu- los. ou tin .pa I fir .,,hkd of the -lompo, uj puUcy u .,h,M>js o>u. of ihr. rataU, proportioa^. AM 802 STATEMENT XIV. CLASS U. — PAKTIAL CONCUUKENCV. EXAMPLE 1. 221.4. CoHipimy \ iiurchaiidise $5,000 0(1 " H " and ti.xturM 6,000 00 Lo.s9, nieicliumlise $4,'2r)() 00 " lixturee 1,500 00 $6,750 00 FIRST APPORTIONMENT, Fixtures. Cotiipany B c<>\ ers fixltU'Cr', .sY»/i/,v, and pays loss within its p, iiiiexh:in-ied, ■■? 1,500), on which the lots wii^ f 1,250, or :^0 per cent, of tiie iiif-uj'ance. Conipan\ .V cover." $5,000, at 50 per cent $2,500 00 '< }! ■' ;i,500, " 1.750 00 Total U,'io() 00 rONTKIBI'TIOX. Coinpan.- B pays tl.xtnref $1,500 00 " mere. hand t!*e 1,750 00 $;{,250 00 Company A pay« merchaiulise 2,500 00 Total loss .$5:750 00 It Will 111' iiot,iced that Comjuiiiy J{, rovenni' a i^ppcific suo- )iMt, l.ecotiios -|i('<:itic tiuiroou at onto in tht .truouut of tbt- lu.sii. (2070, a 1*17. ; Form A. - ot this ilass comes under the saino jtrocess, oxtupt iu having two specific items to be first di.sposcd of. ... $8,500 00 .. $4,2u0 00 rocess, except R0'> STATEiMEXT XV. 'OMl'OITND POLICIES. CLA.SS II.-PARTIAL CONCURRENCY. E.VAMPLE ]. 3215. This is the oft-cited "Cromte Case" (reported 15 K Jlom-u., Ivy. I.... 4;',8). wlncli I.as pas.sod iuto a standard authoritv" tor policies of this cla88. ^ Company A covers Cro.nie's old i.aper-mill ^-^ qqq Anu.Mitio„foU,e buil,li„., vva> .u(,se,,.u.ntly erect,,), ainiothe; '" lusurauce elFecle.J on the whole i„ Company B. 7^,,,,^ Total insurance (ol,l an.l r)evv) , ~$1'~()00 The loss aa apprai^ied-,;Ai' building m:m (53 WW " 1,122 37 '^°''*' '°«^ $!»,f50(r00 . *'*'**• '-'"''^ ^''■'^^ Co.ni)auy A, .;ontei.ded Lliat the Mai msurauce, «12.000, ou W/, Inahlings .shouhl first pay los.s ou the old biuldiu,^. (The All.auy liuh,.) UiukM- tl.is claim, Company A, covering the ohl mill only the apportionment would have h,..en *• 1 2,000 to pay -fS 377 63 loss: that is, 5-12 for Company A and 7-12 for Company'^ covering hoth old a,>d nexo ; this would have given as the ' APPOin'lDVJMEMT. Companies. Old Mill. .Vew .Mill. r.nal. Salvage Company A.... *3.49i) 67 r^A'iO u1 $1,509 ;« B..., 4,H8(J DG $1,122 37 (I.OO'J .S3 ;iyO 67 '^^""' ^*''^'-"7 (i3 * 1 . 1 22 ;!7 .^:),500~oi^ 1^500^ But Marshall, C. J., ifkld .— "The oonHKmnd policy covering l^.h oM and /i..t. .honid >iV.< ,>av its */..<(;/- n,s.ranr, on the new buildm^.to the n.nonnt of the Iosh-$!1 r'2 V~ whK- a.n., :u.t,./^««.,^«ho„l,l be de,|u.>e.i fnnn the ,x.l,cv before iiral^e- hat^'rof':'.:;:* "; "'*^'" ■'"' '^ ^^'"''^^"" ^^ ^^'''^'^ "- i^«>p«^t->^' iiaDUitj ot each wa.s to oe ascer:aiue 1.' ^^mmmmmmmm 804 STATEMENT XV. Th^ correct apportionment aiiilui this decision, wlimh is the rule of this chiss of policies, \\ oultl havu been : — CoiHpanies. A Hpecific B gener.il Insurance IjOSCI ai'portionmp:nt. 01(1 Mill. Now Mill. $5,000 GO 5,877 G3 $1,122 37 .o,s77 i;;; $1,122 m 8,377 G:J 1,122 .^7 Total. $rj,oon 00 7,00() 00 $12,000 on y,500 00 CONTRJUrT'.ON. A.-; 1 0,877. (i;! : 8,377.6:1 : : 5,000.00 = 3,851.76 Cotii|)any A. " 10,877.63 ; 8,377.63 ; : 5,877.63 = 4,525.87 " B. A. H. Cunipaiiit'8. Total.. EIXAL (ONTIUIUTION. UM Mill. iN.vN Mill. Toial Salvage. 13,851 76 $3.8.-.i 76 .., b}- eonipelling coutributiou where it was not dui^, as thi; Albau}' llule always does. 80^ STATEMENT XVI. COMPOUND POUCIKS, CLASS XL— PARTIAL CONCUEKEiNGY. EXAMPLE 1. •w:.17. Whero two or iiior«j coinpouml policies pi'-'tcct each a sp(M;itii.' item or items : Company A on halH, oap«, iMWitfi, slioea and dn) r/'h.d.t. .»il,imo. Company B oa )iats, caps, bets, Hlioes, /(trs and'.s-A /,-.•..$ I ]()00." Loss liata, cups, bouts, aud kIkh's $1 .200 Dry goods , „.,, ;ioo Fure and skiiis... 2uO Total of lofle $1,700 FIRST APPinrnoXMENT, Will b.^ orih,..ewra1 spedfic .wbjwt, covered by the respeciire policies. Com f)aiiy ^ on dri/ goodx, payi^ lo.-is $;}00 " H on furs and skia>i, pays loss 200 This will leave unexhausted insuiance of each company A $700 aua Ji 3800; total $1,500, to apply to the paymoul ot the joiut or general loss on coneurrent subjects. SEC^ONI) APPOUTlONMKKr. Ol'tlie concurrent insurance :- Companion A and B cover joinily to the aniount of ;?l,r,00 on property the loss on uhi'li ia $1,200, or HO jter cent. • t ~ CONTmiilTTlON. Coinjjany A covorM $700, at XO per cent., pays $.560 Total joint paymenl $1,200 RECAPITULATION. Company A specifjc, J.'iflO, gi'nerai.SodO. Total, ,«R(!0 •• " 200, " 510. " \x\) Total payment ^j^-qO 806 STATEMENT XVII. COMPOfND rOLICIES, CLA^S IT, — PARTIAL CONCURKF.NCY. " FINN Hl'LE " ri. aaiN. [li an article, bearing date October 14, 184G, Mr. Finn supposes tho I'ollowing case, and proceeds to ailjnst it under hiy rule. The example Ih one of total loss complicated by dniible insurance under compound polices- The case su|)[)(:)ses tho jiarties to be cotniiiifltJion merchants, having iu etoro nierchaiKiise owned bv A., B, and C, vvliu were instruoteil to insure and ilid injure. " On v'inc.'i, xiujnr ami rice, thrirown, or held in trust, tir on comnu.«ion, in the City Firr $10,000 ; Howery, $10,000; total, $'20,llOO." Also on wines, their own, or held in trust, or on comniission in the Long Ifilnnl, ?10,000i JetTenson, $10,000; Troton, $10,000 ; totiil, $;^0,000; tcita! infmrance. $,00,000. The nierclmndise in store at the time of tlie loss was, iciu^.s $50,000 ; .iiu/ars, $10,000 ; rim, $1:^000 ; total, $75,000. The loss wiis on wines, SoO.OOO, owneilbyAj sugar, $7,500, ou neiHiy B; rice, $2,500, owned hy C ; u.tal loss, -SCO, 000, Mr. Finn said: -'Here we have a ca.se calling for some principle ot •Kjuitable adjust ment affecting the interests of several parties, each in turn striving to have the largest possible sum aj, plied to their (.f/c) particiilai' loss. Equity, which is, or ratlifr ought to be the foundation of all law, n\ust hohl the scales. Shall either of these gentlemen, A, B, or 0, be entitled to have their (liis) money to ilie e.xclu'^ion ot the others? Fs there ii single inlividufU Ay t lieard from any quarter? No 1 is the universal answer to this question." 2219. " H'liie claims u< have an interest in the (iKiural ineursuiC", in l)ro|)ortion as tlie whole lose, $()0,000, liears to the whole general in.surance, $20,000. In efTc't, that five si.xths ut $20,000 in.surance (pro rata (>f total insurance, $.')(l, 000, and total loss, $()0,00 proj.iortion ofinnurdiKC that he claims." "The amount insured by the general |)olicy on fr/nf* being thus a=cer. tained to lie five-sixths of its whole amount or $l(!,(itjt5 67 Tlie aiiKiuiit, insured by the Long Islaml, Jeller-^ou, and Crolon.. 30,000 00 We find loea of $50,000 haB insurance only $4i!,(iGG tJ7 STATEMENT XVII. 807 2:220. Mr. Finn camos his ligures no further ; but they are easily eontiuued. Ah tlie loBs i.^ total, the amo.int of ir,siira,„r, as found bv liim, must betlie amount o( confrihiition to be nias being' total, tlie anjount of i^i.tm a nee is the amount of confrilmtion. Then, $7,.000 loss on smjars, at 33J per cent., insurance .$2,500 00 2,500 " fice "■ '« u ^33 33 Total lose $10,000 Total insuranct. . ..'s^iiiHs Tlie Bowery will pay on sugars $1 ,250 00 " " rice 4H\ 67 Tue City Fire " sugar.-^ 1,250 00 " " vice lit; M The filial result would Ije : — Companies. Wines. Sugars. Rice. Lon^ Island, specific $lo,000 00 Jeilerson " In, (KID 00 t^i'oion " 10,000 00 City Fire, general 8,;i33 ,'« $1,25(1 $41G t;7 Bowery $3,333 33 Totals, $10,(100 l(i,(KiO 10,000 10,000 " M,.f33 .31 1,250 410 60 10,000 $46,666 67 $2,500 $833 33 $50,000 This would give the following FINAL CONTRIRI'TION. Companies, A Wines. B SuKars Lonj; Island, specific $10,000 Jetferson " 10,000 Croton " 111,000 ...... City Fire, general r<.000 $3,7,-)0 ^ijwery " 5,000 '3,750 C Rice. $1,250 1,250 ,..$46,666 67 Totals. $10,000 10,000 i 0.000 10,000 10,000 Totals .$40,000 $7,500 $2,500 $50,000 808 STATEMl'.^'T XWU. COMPOUNU i'oMClKS, CLASS IL — PARTIAL CONCUKEKNCY, t£;!^ti. This decision is known luiidiig fiiv uixlrrwriters as the '• AJi.isduri Case." (Aii^tJiodt & Bavth (■ Dehiwaiu Ins. Co., 21 Mo. r>93.) The conipunios coviMX'd as follows: — (!i>tii|iaiiy A (nelawarc. ilffiiiiiiirit), iihtcIi unli'^e ■' their own, or liuM 111 trust, or on oonmiis-'ion. lor iici'HUil vf \< liuiii it inay concern " fr.OOO Company \i (St. Lmii'^ Miit.) tlic same, will] tlie (iiKJition of " niti'chundiiK held in siorag< '' 4,000 Tolfil iii-\irance $!»,(IO0 JjOss, ni» rcljaiiilise, •' ilioir joot this company shall be liaiile for sue!) ratable pro[-«)rtiiin ay the loss ujio7i ''goods on storage," its specific item, and contrilnite in the remainder of its insurance with Company A. on the joint sulyect, merchandist!, which woulil l>i .ifT.Slo, to pay loss of ?7,470.75. Excess of loss S157.75, as above. The trial court — Court of Common Pleas of St. Louis— gave judgment against Company A for 84,."iL'0.:u-> on a ]iolic_v for §5,000, leaving a .salvage of ^479 47 ou a loss $157'75 in excess of '7^/ insurance!! The i:ase was carried to the Supreme Court on appeal, which Coint, after constdtatiun with some supposed to bo experts in tire loss adjustments, ruled in effect as follows: — • * •" Oniiuarily the plan tul'iptcd by the Court of CointnoM Pit > wouM oil PK I woulJ aTATK.MKNT XVUI. f>f)9 be olioson as acnnvet.ionf one, hut that plan i^ not necusHaiilv il„. only cor- rect oi/tMii,,] ill this iiLstam-f ii hiils to .1., full iii.«tice. utui we t'luiTtoie iliink It hciter so to apportion the ar.ioiuit to \je paid by the St. Louie Mutual Company (B) as to apply it fir-t lo pay the loss on t^oodn held o„ Hto^a.-e" by whioli means th. whole aii.oiiiit ii.-ure.i hy the ,lefei.auiU« (A; becomes payable to tlie plaintilfs." " — •'• i'"3 rnlmg was an attoiniJt to aj)|)ly tlu L'nl,. of Coriipoimd Policies Clash II. to r,a.ses of total lu^s, wh.Mv no rule of ai'ijoitiomnent could apply, for tbnre was jioihiiig to apportion, as the loss had. or should have absorln.d all of^the insurance. . But this is not all : tluuu was a serious ern.i in tli: aiK-injitftl application of the princij.Io of this (Jlass II. K'nl,,. uhnh i.s that " where th(^ general policy cannot make good its losses entircdy upon its several ^uhjecis, it must pay au iMjual pro rata proportion upon each," whereas, under this ruling, the " goods on storage " would get payment iv full at the e^p. use of the other suhject, merchandise, of *94.;{2. The eorre-t ap- portionment, as intended by the court ruling, woidd evulently be as follows : — Losi on mer(.hai), it.^'lia- hility must be confined to tho,se items, in the ratio of four oa flour to seven on grain, thhse being the proportions of the loss on those items— the co-insurers B and C making up the deficiency. This will give the following APPORTIONMKNT OF INSURANCE. Companies. Pork. Flour. Grain. Totals. ^ $^,000 00 J.,,,). " 1,818 18 3,18182 i,0(iO Insurance.. $9,000 00 ,ROOo"m) |7Jmo"(K) S20~^ Pay loss.. 7,000 00 4.000 00 1,(m 00 ilfiZ From this apportionment comes the following FINAL CONTRinUTION. Companies. Pork. Flour. Grain. Totals. Salvage " !flL!f. -^'i^i «2 5,00000 ...... '^''^^'^ S^'""" 0« nwW 00 ^TMfTw) fmoVw) .isI^iiToo ^ As Company I) ainnot contribute its fidl ratalde propor- tion, on either flour or grain, it has no salvage F 1 812 STATEMKNT MX. EXAMPLE 3, JJtjyiT- Had tlio losses been as follows : — On pork ^3,000, jiouv 8r),U()0, ami j/rcum 110,000, the adjust- nit'tit \\(tiiM ]»iocecd as in ?)x;iioi)le 2, oxoept that ]ir)licy D wonlil 1k! t'xhaustod upon {,'rain ulono, and proscnt tfit! followinj^ appoiiiiinini'til, — ('onipany .\. bcinj^ tlit; only onii to make a aal- vagt!, Lho odinr lossos being tijtjd, and absorbing all of the insur- ance on thoir icspoctivo iti'nis : AI'I'OKTIONMENT OK INSUUANCi;. Conipanioa. I'ork. Flour. (Jrain. TutaU. A $G,(l()0 .... .... $5,000 H $6,000 .... 6,000 c .... $:<,ooo .">, amounts, for nothing rouiiius, in this oxamplo, upon v\ hich to contiibuto. 813 STATKMKNT XX. COMPOI .VI) COMCIRH, CLASS II.— PARTIAL CONCI'UHKNCY. KXAMI'LK. aaa.S. 'riiis es;mn>\c is still fintliur conipliratod by .Imil.l,. compimud imnmmv, vnUihu^; the neoassity of two apportin,,- monta—tho sHooiui under the rule of compound policies, Class I, the rcinaininy insurances being concurrent : Conipftri) A, il^iirund W(/ $^>,(m " H, Hour and f^riiiii r',.,,., >»/>'"^*H'tl Kraiii _r,„„|, Total JLHuranoe ^7^,„, ^"'^■''*"^' """,■• »-^-''"<» Oruin 15,01,0 ' 1^"'' ^.""0 Luni ;{„|,o ^°'*""«« $Ivioo FIKST APPORTIONMENT OF INSURAKOK. Partial Concurrency, Polioy A covers ;a-vr with no co insurer, on vvhicl. fhe W wax $3 000 and pays that, anioioit, ioav,,,^, iou'xliioi-tU..1 imunmce. $2,000, to ui.plv (Ur currently uii//m(0' with il- (loiMMOfr JJ, IV.I.ov (•.■,,v,.r., ,„„-h with I.. co-iMMurer. <.n which thr loss j, $2 000 • and pin ^ that, un,uni,t, hMvinj; unoxhausieJ insuraiux %2Ami to ai.i.h'con-' currently on ijinin with itn co-in^direr B, 2titJ«. The specific liabilities ol" the g..tieral poliotes A and Con lard ami y,o /•/,•. respectively, having being paid, leave tho iusuraiK'(.- upon (jr>i.'ni and flour as follow.s : Company A, ll.nr $2,000 Lo.hh jcj -.oo " , ;;'^-i".... ;5,ooo " 5;oo,) •» ii, tidiir and gram 5,000 " s,6()o In tliis form the statement falls under the rule of Cla.ss I. (lie covc»r,n>r(j being (jciteral. and tho apportionment is made accordingly. (31»0.) B, the general iK)lioy, will cover flour and ffram in the proportions of the h : an ;},,,00 iM to 5,000, or a. 7 is to 10; that is, MTthH of o.OOt). or $-i,u58.82 on flour, and lO-lTtha of 0,000, or $2W1.18 on yrain 814 STATEMKNT XX. Till- givcH the following SECOND AITOKTIONMRNT OP INSURANCE. General Counirrenty. CompatiieH. Flour. Grain. A *2,IM)0 00 ]{ 2,0M 82 C Innurance. . To pay loHH.. xi\m 00 3;2,1M1 1« ;{ 000 00 116,911 IH f),000 00 Totals. $2,000 5,000 ;i,ooo :i(]o,oiio H,r>oo Trom this apportionnieiit results tho following FINAL CONTUIBUTFON. rnmpanies. Lani. Pork. Flour. Grain. Tot»i!3. A $;{,(I00 .... .fl,72.1 G-l 4,724 f.. H 1,775 H(i 2,476 08 4,260.44 V f 2,000 . 2 ,524 92 4,624 92 Halvagt!. 275 in; 749 56 476 08 Totals.. |i;{, 000 $2,000 $3,500 00 i|6,000 00 $l;i,500 00 $1,600 00 hy varvinj[{ the soveral ainounis of loss in this example, as in Sta(r)i(C>if \\\. (l•]xlunple^l 2 and 3), a nmnher of intt^ivsting ]>rt" wliich will hi; louiid subject to Ibis rnlo. 815 kSTATEMENT XXI. » 'I I ! 'otiUs. Salvage. ,724 <;. 275 3« ,250 4t 749 56 ,524 n 475 08 ;,500 00 $1,500 00 COMPOUND I'OLICIES, OLAHH II.— PARTIAL CONCl-RKENCV. a2ao. The f(.ll.)win^' synopsis of an actual a iKilicf 1)/' other in. nuance (jioeii.) " B (local), on Iwoks, Hlationcry, jmpcr, and j)ic- ';"7'--; 5,000 And on tixlurcH ,..,. <<>t/i<'r ill Sinn lice noted.) C (l''n<:li.- (New Vork agency), on school-ljooks., r,o(„) (No notice of otha innumnce.) . Total in.'snruiice $25,500 The loss was total ; hut the amount was agreed upon at $16,000 — " in a lump," showing heavy over-insurances. Tlie oilicers i,f the local eoin])aiiie8 and agent.s of the others agreed upon a division of the loss, pro ratn—$25,0W to pay !?ir).000, Company A, waiving forleiture for want nf notice of oth.r insurance, paid pro rata with the others, Company B paying 8500 on Hxtures. aa:il. a {c^v days suhsequoiitly, the adjuster of Company 1> arrived upon tlie ground, and of course objected u. this approportiort upon non-concurrent liah'UUy, will bo a.s follows ; — EXAMPLE 1. 22;{l. Tender the "lumping'* arrangement, making the loss Sl(i,0''0, evclusive of fixtures, which were specifically insured, and iiolding loss on "schuol-books " at ijiS.OOi), (he adjustment should have been $20,000 insurance to pay the loss on the " miscellani'ous " articles, uu'luding books other than school- books say $8,000. The apportionment would bo: — IiisuraiuM' Mis'ccl-i rn-^uraiice. Scliool I^uokK. A, SKt.OOO. at 40 JKT cent $\,WH\ \, l.iilniuH', say siil (idO H, i^ono, " i.don |{, " ■ ;;,i)(io C. j.OOO, '■ 2,00(1 C, " .■•,,()()() IJ, orii^inal sum ,>,(mi(i *20,0U0 luiyM If:, 0(10 Total *1T,000 To pay loss of 3S,000, which gives the following CONTRinUTION. A, fH,000, pavs 6-17 |2,h2J 53 B, 3,000, " 3-17 1,41)76 C, 3,000, " 3-17 1.41177 D, r.,000, " 5-17 2,332 !)l $17,000 $8,000 00 lie claiiuaut, STATEMENT XXI. 817 F1N\1. CONTRIBUTION. Companies. ^^^^^^ ^^^^__^ Futures. Totals. A $2,823 1,3 ?4,(iO0 00 .... |(5,823 53 ^^ 1,41170 ^.ODO 00 1500 .3,91176 C 1,41177 2,000 00 .... 3 411 77 D 2,.362 94 2^352 94 Total;!....,.,... $8,000 00 ^S,000 00 $500 ^Tti^ioiTlHi a'i:«5. The exemplification of the correct apportionment under this propo,sitiou will be made in tabulated form ; all of the policie.s being compound and float with their respective los,se,s. Table 1. Represents the 'niaximum limit or liability of each policy upon any one item, to be subsequently inodilied and con- trolled by the relative concurrency of the po]ici(^s, a.s upon such. concurrency will depend the proper apportionment, and tlie onler in which the adjustment is to be made. (I«31,) 1.— Ma.mmim Lukimithh. Cos St-hool- Other Sta'an- Pictnim Fancy p. books. IJooks. ery. etc. Goods •''"'■iires. •V $10,000 ^MO.OOO $10,(100 $10,(1(1(1 $l(j,000 H 3,000 5,000 5,000 5,000 ...'... $500 C 5,000 5,000 5,000 ."."." I) 5,00(1 """* Putals.. .mitOO .f2(Mi(iO !fJO,000 $l5~il00 $10,000 floo Less.... $8,000 $-:,000 $:)„^00 .$500 $2/IW) ^ _. tS3»0. From tliis table it is evident that the concurrency of the Sf.vei'iil policie.s i.s porflal only, which bring.s the apportion- nicut under the nde of Class IL, where tlie specilic jtems ol' the floating' iasurances itre fir«t l.- be paid !iefor(! contributioti can be churned f.y co-irHinvrs iip.,n otJjci .•jubjects, and then only in any remainders. (UtJIJia.) The apportionment will present ^onie striking peculiarities which illustrate this l.'iiji. We note a.s follows : Coinpuriy A, ii.- u> I'.iinpuiiv li, huH one specific suhjoct " " '• <-^ " two ••- ,ubje,:tH. " ■' " 1), " four " <' «, " " C, " one " " " " '• 1), " three <• .« BHli • I T .^..jijiiiyiiiiMiiMi 818 STATEMENT XXI. >\11 of which must be first jiaid, 'hi the order of subjects named, by the respective companies btifort; coiitribiitioa can be claimed by others. Thus, A must first pay loss on " fancy goods," -12,000. Then A in its bjilauco (68,000) witli B (*5,000), as co-in^urei', must pay for " pictures, etc." Then A and B, in their reb()ecti\os balances, must contribute pro rata with C on its two items, " stationery " ami " other books ; " and finally A, B, and (J, in their respective balances, will contribute ^>ro rata with U u])ou " school-] Kioks." A?r("iirrioxMF,NT of liaiulities. *2'2\V7. This order of arrangement will give the following apportionments of the several insurances : — FIKST AVPOHTIONMKNT. Company A covern fancy goods, solus |li,000 Leaving $f .000 uiiexliausted iu8urance. SECOND APPOUTIONMENT. Company A covers pictures, olc. (bttlance) .$8,00i) B " " " 5,(11)0 Total $13,0(1(1 On wbich the loH.a is jji'iOO. (\ini|)ttby A'k proportion is 6-1 li, or $^>')T li'J Lfiiviiig uiifxliuusU'ii insurance, i<7,'jy2.3l. IVunpany B's prui)Ortion iH 513, or 192 ;U Lraviiif: still uiicxliauHted ininrance, $J,807.,274 73 $7,692 31 $7,692 31 $8,000 00 $10,000 00 ,., 13.. 3,293 71 4,807 69 4,807 69 5,000 00 $5000*oi (J.... 3,428 57 5,000 00 5,000 00 D.... .... .5,000 00 Total.... $16,097 04 17,500 00 17, um 00 1,3,000 00 10,000 00 500 00 $8,000 00 $2,(100 00 s3,.,.Mj ot) S500 00 !f2,ooo )0 ^mm Losf sub- ity In this table the insurance by ooiiipanios A, ii, and C upon the hen su jecls "other iKjoks " and "stationery" are jnade pro rata; the liabilh beint; joint or concurrent. Th(! appurtioninent thus fiills under the rule of Ci,As.. I.; the coi.tributive liability can be found either from ihfir gro'-s amounts, as in this example, or tmm llie pro rata proportions (as 2,000 on " other books" is to 3,500 on " Htaiioiieiy ") of each policv, the result will be the same ha under the third apporliouiuent alxjve, where the ratio is found by the l,.)-s directly. 820 STATEMENT XXI, CONTKIUUTION. 23:)0. iVs the first, second and third apportionments re- present the coutnbutivo liabilities of the several jiolicies, these arnomits are therein ileterniined. But the fourth a|(por- tionnieut represents the insuraiice '■uly, ujion .^chool-hooks, and not the amouuts to be paid by the retspective companies. These amounts will be found by the Rule of Proportion (VIIL, 2 1 52 j, as follows:— (.'oiupany A— as Slrt.Iig? 04 ; $8,000 :: $6,27» 73, : $2,482 fi3 " B— '^ l(i,9it7 04 ; 8,000 ;•. 3,293 74, : 1,550 24 " C— » 1(;,"J97 04: 8,000:: 3,')2« 57, : 1,613 70 ' " D-- ♦' 10,007 04 : S.OOO :: f.,000 00, : 2,353 43 Tot:l $l';,iMl7 04 $8,1100 00 As ilxlures wert inaureil upecilically uti'.ler poIuN B foi $500, tlie Ions being S750, it ia paii by that cotiipany ia full, the iutiured hearingthe cxcesfl of Kw. The foUowitig Corniulii. represents iti 'letail llif liNAL rONTRIRUTION. Cos. Sclioo!- P"^""-"^^- So"d^. tSi^s. '^"♦'^l«- ^'^'^''K- Other Statioii- buulvS. Books. erj. A..$24S2 t;3 $h70 12 |1.k(8 KJ $.307 00 $2000.,.. $7207 90 .■*2702 10 B.. 1550 24 519 4.'i 96154 19231 .... S500 375354 174646 C. 1613 70 57143 1000 OO 31.^5 13 1^14^7 I).. 2353 K! 2353 43 2646 57 J.siMio 00 $2000 00 $351.10 00 o500 00 $2000 $500 $16,500 00 i?900o IK) Loss?yo(H) 00 ,'{(2000 00 !t3500 00 $500 00 $2000 $750 $16,750 00 22IO. This exiimple has been treated thus in exfen»o bocauho il embraces the chief peeuhaviiies to be. met with in ordi- nary eonqiiiund polioie.s, where the concurrency is partial <)iily. At the h^anie time it illustrates the liahiliiy of such general insurance to be ia ihe exact ratio of the loss u^'on the several items. 821 STATEMENT XXII. COMPOrND POLICIES, GLASS II.— PAKTIAL CONCURRENCY. EXAMPLE 1. 2241. Company A covers Jones & Brown on 8tock, $5,000 " B " Jones' interest in stt-ck, 2,500 Total insurance ¥7,500 Interest of the partners auppoeed to be equal. Loss on stock, $G,000. FIRST APPORTIONMENT. - Brown's Interest, As the general jwlicy A covers the interest of Jones concurrently with policy B, the .specific itetn under the compound insurance A— and to be tirpt paid— is the interest of Brown, which is one-half of tlie loss, $.3,000, and entitles him to one-half of the joint insurance, ,'j;2,600, representing his fihare of tht polici/~vol of the loss— Ihm leaving him a loser of $500 iii con-any A being upon the int(;reat of Iwth, Jones and Brown, and beinj^ e([ual [)artners, Brown cannot under any circumstances, claim more than hirs lialf of tlie policy without reference to las loss. (^22'45.) 823 STATEMENT XXIII. coMrorND poLrcy, class ii.— partial concurrkncy. EXAMPLE 2. 2243. Brown insures in company A jointly forhiinself, Wliite, Blfick, anil Green, building .' [ ^g^ „„y Ho also insures in company B, on his own one-fourlli interest, '^^^^^'^^^'^^ 20.000 Total insurance... $100,000 The interest of the four partners is equal, and tlip loss 140,000 FIKST APPORTIONMENT. Joint Interest. Policy A, covering the four in.erests, is the general insurance, and becomes specific at once in the proix.rtion of the joint interest of Whit,.^, Black, and Green— threffourtlis--and the specific interest of Brown for the Other fourth. This gives the insurance, as follows: A on the threejot/i^ iH^eres/s $G0,000 " Btowu'h specific interest 20,000 Total SECOND APPORTrONMENT. .... $80,000 Brown's Interest Policy B covers the interest of Brown, with the others, to the a""^""^o'' $20,000 And has the specific insurance policy A to contribute with it 20,000 Total specific insurance 140,000 From these two apportionments comes the THIRD APPORTIONMENT. Company. Joint interests. Hrowa. A (3 iutercHts) iJfiO.OOO j-0,000 B (one interest) 2(»,000 Totals. $80,000 20,000 Total insurance $60,000 To pay loss 30,000 $40,000 $100,000 10,000 40,000 824 8TATKMENT XXIII. Thii will give the following FINAL CONTRIHUTION. Company. A. B. Joint interests. Brown. Totals. $30,000 |t5,0(lO f.^'.,000 5.0(10 5,00{» .';e. |4j.000 Totals $30,000 $10,0(M1 10,000 $tiO,000 I3rowD aavea nothing by his specific insurance ; but the general policy saves |j,000, E.KAMPLE 3. !i2'244. Huil the loss been $100,000, uiuler similar insurance, the specific subject tu be first paid by policy A woiiM have Iteeii the same as in Example I. but to the total amount of those iriterests — three-fourtliB $(iO,000 The remaiiiintt one-fourth $20,000 Anil specific policy B 20,000 Total $40,000 will pay Brown's one-fourth of loss, $2.''i,000, in the proportion of one-half each $12,500 '.. |25,000 Total payment $a'),000 Salvage 15,000 In this casi' Brown saves $5,000, while general policy A saves $7,600 in consequence of having a coin.^urer. asm. Here, as in Example 1, we have a payment of $85,000 only on a loss of $100,000, with Sl.00,000 iii.surance. This seeming discrepancy is explained upon the principle already stated. The deficiency falls upon the three; parties. Black, White and Green, for want of sufficient insurance upon their j(jinl interest ; while tlie more provident Brown Iuls double thi- luuount of insutauci^ of either of the other parties, he receives hut S5,000 more, becatise his interest was nver-'inaured. The law forbids any insured to recover more than his loss. (3313.) saves J7,500 825 STATEMENT XXIV. COMPOUND POLICIES, CLASS II.— PARTIAL CONCrRHF.NCV. EXAMPLE 1. 2240. Comptiny A $1,000. Jones on huilding ami intereHt in slocit. •' B $1,000. Jones A Brown on stock. " C $1,000. Brown on iiis interest in stock. " D jJljOOO. Jones & Brown on stock fi.\\AJixturea. The interest of the portners is equal, Loss l>uililing jYdd m Stock i,H0O 00 Fi-xtures 125 00 Total 12,1125 00 FIRST APPOKTIONMLNT. Specific Items, ^ Companies A am] D have compounil policies, with .specific items, A hvilding, Jones' interest, on wliich I.imh i.-; |700, ami B firturfis, Jones & Brown's interest, loss $12;'), half eacli — ami pay accordingly, having A unexhausted $300, and D $87f) to contribute with B and C on stock, as the res^ec^U't interests may require. . SECOND APPORTIONMENT. Jones' Interest — stock. Company A, balance $300 00, pays $210 99 " B, one-half.. 500 00, '■ 35165 " D, one-half of balance.. 437 50, '« 337 3li Total insurance $1,237 50, (pays lialf of los.'^) $900 00 THIRD APPORTIONMENT. Brown's Interest — stock. Company B, remaining half $500 00, pays ....$232 2(5 " C, specific insurance.... 1,000 00, " 464 51 " D, remaining half 437 50, " 203 23 Total insurance $1,937 50, (pays half of loss) $900 00 826 STATEMENT XXIV. By liiile VIII. pro ram payment of oiich policy givCH th'^ followinn FINAL ''ONTUlIlUriON. IIUILDIMn. MTOCK FIXTrKES. ('onipauii's. .(on»'s. .Iomch. Brown. Joih-h Brown. A f TOO (10 H'iiK* 99 B 301 »;,') $232 26 r 161 51 D 337 3rt 203 23 $G2 ')0 |G2 r.O Totals. $I»lo 91) f)83 91 4(14 .')1 .M5 .')9 .(om.h' tnuls.... |700 00 $900 00 $02 50 *o ,-i= nrt Brown's totalH $900 00 .... |U2 r.o •^•"''^ "" EXAMPLK 2. lS2IOa* liiul lht» interest of the parties been unequal, .say Jones si':/?/ per cent, and Brown forty jiei cent., tiie operation would he a.s follows : — : The interest in the partnership beiii||; G-10 and 4-10, the jmrtnrrs bear the loHH in tlic-ne proportionH. Thus, Jones bearn (i-lO of $l,HO(», or $1,0H0, ami Brown 4-10 ot'$l,SOO ur $720 on stock, and tiharu the lOitcurreiU iudur- itnce in the same proportion. EECAJ'ITULATION. niii.PiN'O. STOCK. Companies. Jone.s. Jone^. Brown. A $700 00 $'Z27 37 B 4.')4 71 $n;4 57 C 411 43 D 397 89 144 00 FIXTURES. Jon en. Brown Totals. • * * • • • • • $927 37 .... .... 619 31 411 43 $7.'> $.')0 f.66 89 $Jo '$50/ $2626 00 Jones $700 00 il,080 OO Brown ... $720 0(» Jones «k Brown— stock, $1,161.00; fixtures, $12.5.00; total, $1,286 20 In this instance the interest of both partners wa.s amply pro. tected, they were indemnified accordin(,'ly. These examples can be made interesting V^y varying the .suni.s of tlie los.sen on the variou.s items, resulting in cjonsidorable conqdicatiotis in cases of total losses on some of the interests, and jjartial on others ; for the adjustment of all wliich the preceding rules give ample instructicMis. ' 827 nng Totals. $ltlO 9!) 68:t 91 464 51 .r,t;5 59 $2,(i'2.> 00 STATEMKNT XXV. COMPOUND ANTt Sl'KCFFlC I'ULICIES. EXCE88 IN8IIUANCB, 'JtiiT, ConilHmn nflmurano:- "Koi to be liablo to contribution tor losH tIl.Ti'on, until after all of tlic H|x:c,illii infliiraiice shall lum \m\x ej(littUrttu(l." (ii*2H.) Flniitint,' pulioios also contain a siniiltir clauRO, ami when optinitivt.', will 1)(. adjustod in tiit- luantutr given below, Whon such iloafors Jiuvo thu avi>rago tlaii.so, i\\v. value of tho aouud properly must be known also. iqiial, .say operation irtnors bear I, or $1,0H0, rreiU iimur- Totals. $927 37 619 31 411 43 666 89 Company A . " JJ. " C. , " D.. EXAMPLE 1, , .coverH8pecificHHy....$r),(l(iO iu Htore K, vulm: $10,000 • " " 6,000 " L, •• 10.000 . " " fi,000 " M, •' 17,000 " il(iut(r 10,000 in storeaK.L.M," 37,(tOO .LosH in Htore K, |8,000 ; .^pecitio inHurance (A) $5,000; excess (D) $3,000 ♦V •♦ M, 9,000; " « (C> 5,000; " (D) .1,000 CONTKIBUTION. Tho Rptcific policies A ai»(i C would pay $5,000 each, and the lloater D would pay tho excess, $7,000. 32IH. Had the km in K and M been $4,500 each, being M'itiiin tlio sijccilic iiisiir.uioi', pob"cie,s A and C woitld pay the vholu, and the JJoater D uouhl escape scatheless. 12625 00 I, $1,28620 inijily pro- imples can 3es on the in cases of jthers ; for Jive ample 828 STATFMENT XXVL FLOATING rOLICY. KXCKSS AMD WERAOK CI.AtTWKSl. i! '240. ContlHiov of the ptilir;/.—" It is at tlie ■'aine time agrt^eJ, (hat if liny s^pi'oilio i)in'cel of goods iticliuled in thp teiirn of this jiolicy, or Huch goo Is in ftiiy Hpeoiiii'd l)uililiuf; or buildings, place ur jfl.icp.^ >vitliit\ tlje liniits of lliis iiiHuraiice, filial), at the tine of any lire, be insured iii Ihis or any utlit-r ortiie, this fwlicy i^hall not extend to Cover the sarne, excepting only as far as relates to any txcKss <)■• vaf-ue {not loss) beyind die amount of such Hpecific insurance or insurances, which said cxresn is so declared to he under the protection of this policy, and subjict to avtraijc as aforesaid." EXAMPLE 1. Tiie //()'/'(/• coveral in several localities, subject to it« teriiis lis abov e (excess and average) , .f 76,000 In tun: of the localities, buildii.g A, under the protection of the //o(i/(7-. there was A/KcZ/ie insurance .T.{1,000 Total Insurance heri' #100,000 Value of property in building. S'?':o,026 Loss in building A 274,192 tStiflO. Iti the ap})ortionment <,)f the coiitributive liability the jlndtrr must b(! con.sidered "other iiisuraiKXi," ouvoring only the cxci'.ss 'if valiiti ovec tho .specific iiisuranci.\ saltjijct to average, as follows: — yaluc of tlie pro})erty in the bui IJini.' A $:'><'»;,' i26 Specific insurance tlierec.ni :i24,000 Leaving as '• excess of value '' $((2,02*> this sum being under the protection of the floater, when made sfiecilic, as other iii-iurance with Ihv. specific, any loss ujwn which is to be paid "in the proporti'jii ihat the amount wt insurance bore to the wliole amount of ti.e pn.perty." The coutributivf liability of tho f.oathuj iusiirauco will be. fijniiil .'19 follows : " Excels value," over spccifie inmirance ^ $62,026 Ai.iount of fioiithuf insurance 70,000 Value of property in building A 3b(i,02ti STATEMENT XXVI. 829 Tkn as S386,02(; val. : S76,Uwu ins. : : ?G2.02«') loss : $12,211, in which amouni the. jioater will contribute with the specijic, presenting the folhnving A.PPORTIONMENT OF INSURANCE. Specific iii.surancea Floating " made specific, $324,0(10 12.211 i terii>8 a8 loa Of tiio iisuriuico will be Total insurance $330,211 To pay losd on building $274,192, tc which each will contribute in these proportionri. 2251. This is an actual case, (FaircJtild y. Liver] tool and London and (.ilobe Ins. Co.) decided l^y the New Yoik >f the Sitmc. which was in excess of the uptcifii' iu.suidHi-e, In that eveni it wan such axicss of value, alone which was intended to lie insured, and in case of fire the wholr loss was intended to be thrown upon the specific insurances unless !t • exceeded theanioui.t of them, and then the excess alluded to\ fell upon the floating policy." * • * • • " And that in this ca.se, as the , .„ form w.tl, thi« pohcy, .,n .ad, an.i every iten. of the property hereby .nsumi, to the extent of at least .e,ml!,:the p,r cent, of the actual cuHh value thereof ; and that failing .o to do, the insure.! shall 1 e a co-.n.urer to the extent of ao amount .utfici-ut to make the a.t-pre : Totul va'ue ,,f property 509,4(10 Three-fourth- of '.vhich is 00 n-,, ^ ^A"-'" Lops aa round l-y appraisers ^ .>., .-,, '"'"™'^'"- '.v.v.*.i8i Company A, Hpecific $10,000 Company B, (,^ clauKt; (^^q{,q 2250. Three-,)uarr.ersof the value, $22,()f,(., ihe clause required to be coveiv.l 1, Insurance, or the insured to be..m,e co-innurer for an. Jeli,.ie-.ev in that atuuupi. As between the $8,000, wuh the elause, and the $22 050 require( , the ensured be.:o.ne8 co-o.-urer for $14,0ot», the dttlerence. for part Of which dPticency he l,eld ,|., ,-:i„,o„„ speeitic pohcy of Company A Aa the I0.H .vas.o far in exce.. of tne a„,o,mi of insurance required to be carried, the clause ceased to be operative, and policy B becomes liabl.. for it« lull amount, leaving the injured co-msurer for the remainder, $lt,l).ou, with policy A, $10,000, u) help him. ' ' "' ) is t.hc liability FINAL '"(JNTKIBUTION. Company A Hpeeilie ^^„^q„^, ** J{, three-7. (^ne specific policy without avorage, and out general or uoiniiouml, subject to average. The .ipjiDrtioniuent will be governed by the same rules as Evanipl.' i. (2353.,) EXA.M1'LE 1. C-mpany A, ,slO,,^00 in warehouse K, s/jfri/iV, \ uluc $20,000 00 " B, $10,000 in warehouses K and L, average, Viilue in L 10,000 00 Loss in warehouse K S'iO.OOO. CONTUIHrTIi/N. Tin loss beiny l<'tal ii n iiiauufanturiug ostali- lishiuuut, a.-5 lullnws ; — Conipiiiiv A. ."^tiick, tool-, ftiiii jii.'iiujR for roptvivs $"0011 " Ji. Sunic :!,(iOO « C. SaiiK' 2,000 " L). Stock, specifically fv;',00 K. " ' 4,000 •' " Tools, specifically 500 Toiiil insurance. $1.-1,000 liO.saes : Stock, $.-,412- tools, |iH4.'i ; piano for repuirM, $I'20. Total $i»,;i77. An L'xaiuiiiatiori of tlie iiisiiraiu'esi re\eals tli(i fact that all of the piilioK's cuvor tlic same subjects, in while or m part, eX'';|)t the " [liaiKj," Heticc, the piano, Iteing the ilistiul.iino element, nuit>l he reniovcd by being fli.st paid for (.$120) by the (;oln|)alli•'^^ coverino thereon: A -SiS, H $45, and C $30. Tills will leave those jiolicies covering concurrently upon the two .subjects, .stock and tools : A 8-,9o5, 1> S'i.Oo.'), and C i!5l,'.'7H ; aggregate, !?7,8S0 Apjtlyiiig the nih' t»f proportion ;A'1II.,> ^vi1h losses a.s the i'actor, wc liiid what propintiuii of §7,S8(> iii.surauce applie.s to stock and what to tools, on which lo.s.ses aie respectively 88,412 and $M'> ; totah ??9,257. Till' rill'! ')t proportion ^ivch the 1()llowin^ lorn\ulu ; STOCK. Ah $9,2.07 (totiil loss) i,« to $7.SmO (total insurance), so will be $■'^,412, lo.>iH ou .'^'ock. to #7,I(J1, insuranci- ihen'on. TOOLS. A.»|i9,?r>7 (total loss) \A to!J!7,!^so (total in.«tironce), fO will Le $S15, loss On tool.-, to $7l'.>, in.s.iraiice thereon. TliiM) luivinj; ascrtnined the pi'op'>vtiunpi n|" the ag^rcgiitt' /insurance upon Ploi k ami t(K)l>. re-|>Hetivel\-, tlie m-.xt i-tcp will be lo ilistrilnite tlii.- $S412. Um ,vill he $845, lofw STOCK. Co. A..— As .f 7,SS0 (iii,n'rc;:;ate irifuraDw) is (o $7,1(11 (l,^g on str ,\> to its i„<,„. anceun .-to.k ., l,(). li. — I he siiiiie ., , ... Co. l'.~A« $1,m) is tu iJT.K;], 30 will \>v ;?l,'J7()'io'i"f.H iiisiiruiici'.. ' , ,, 1,7:K) 2.1 TOOL.S. Co. A.-A. $7,880 : *.« do..) : : ^,,, .. uui. tn.irHnec $2(;a G1 '/O n. '< '< ti ,, <( £ v . Cu.c. « « » j„.,:n .. . ]^*^ Having tluH n-unstonne,| tho ..■n.ra! „..,.ran.o into .peciiio' m.n,'s in tlic riitio.sof thvir .sevL-ral lasses, we get i la- toll.nviii" : AJ'Pf)RTIONMENT Or INsri{\N'CE. DfHi'ps. Coiiipanv A. j,'( iicrni, . " ■ Ji, « Stuck. . . . - jf 2,6.^5 •! Tools, j Piano. Tolalh. --' ■-....•,1 A.,UOtl ,1,^ '•' (' " 1 -(111 ■•- ]\ .s()1 iif ' . . !■• .'.'1 .i.. ,6.S;") ;{M ; 20!) (i'' l.'W 25 I 17',) 7.3 *--i'i" li.'i I $15 00 i.$;i.onnoo ■'•'■' 00 I ;-i,oi,u 00 Qn fill I .1 ..,./. ,„ InsuraiK 1- . To pay loH.s lt),(ii!l Oo ^Al'2 00 500 00 I, -..Mil (10 ^45 00 •'^0 00 I 2,(»00 00 6,5:!0 00 4,50(( 00 'I 120 00 120 00 The ff)rogoiiig apportion nuMit following 18,000 00 9;i77 00 'f iiisiiranco.s pi'e8(nits the I'lSAL CON'TKIBI'TION, nm.n38. I Pays. I Pays, l^iy^^ 1 iir.w .^ .... _' $45 on 4,n 0" ;!(( (HI l.'i.'iK -ti*! mi 52 ".77(i !KPi j,:'.';) 10 !.3(i6 If.i 2.,V!:i H4 18,000 ori.~7rT il,J77 Oil' fi,6i3"oci 836 RTATI'.MENT XXXI. COMPOrXD POLICY, CLASS W. — KAllM ll!(-I'KliTV LOSS. !tj;24»<>. The. fuUowiii!,' is tlio udjusliiu'iit of a I'linii jpi'upetty losH ot ificTil occurrence : Coniprttiy A mivcn'd -fR'citlitally : IVoi'liKM' ". $(150 00 Haii}t'S-, M'liiclts aiiii im|ileiiH'iitn .'^oti 00 Horses (liiiiil ^fiO .■iicli) MW 00 'I'oltil iiii-urmice $l,;U)0 00 Coiniitmy I* ('ovofcil ireiicnilly : Ha.v iiiui j^riiiri, iiiiplement.^ ntui Iioisch (li'iiit, ^T") oiu li) $000 00 Total i?i^>unii)i'e $l,'J(i() 00 The lo.-se.- were: — Ha.v iMul jiKiiii ^3H!) r)0;Veliicli-s 1!U .0(), so far as ilw balance will go; tor heing, as to A, a .s'ywci/jo iiiisnrancf, it cannot call upon its other suhjccls foi' cou- tribution. Hmiee the deficiency on implements will be made up by the co-insurer B, which covers thereon under its jloatliHj policy. The deticiency falls upon inijileineuts Ihm.'uu.sc Company A could not otherwise vny in full on harness and vehicles, the insured being ))rotected by the floater of li. The insurance covering upon prodiio inchides both .slrniv and kay and grain. Company B covers only the latter, leaving company A 'specific on "straxv," for which it will first pay, and in the remainder of the *650 contril)ute with B on " hay and grain." B has no liability on '' "ftratv." *2'2iVi. The number of horses covered is not sUited ; but the amount to bo paid ou each that may be lost is restricted to $50 in policy A and S75 on cixcli in policy B, thus converting ilie insunmce liability of the one to 3150 and the other to !?22fi, total S375, upon which the loss was §^420 for the three. This .STATEMENT XXXI. ^^>r willlniivn th.> ir,<.„re.l unmv^red npon the, $200 hor.s.-, on which A covers ^r,0 and H .^75, total 81 25 only ; .leficienry S75 The ..r,.insur.r. covor th.- horse. §50 and S75, «m,,uUo .S125 each, and pay pro rata as the joint insura.iocs niav hear lo t horospeuttveloHses, say i$200 No. 1. l$120 No. 2. aud iloONo d, tiio insurod bearinj,' the dtiticiuu.iy. 2a««. Cou,i.aiy B being a "/oa./er," covenns tho s^bjocLs at risk ma s.ngl. .„„,, is liable U, n,ake up any d.fi, ioni.y in Company A\s contribution on joint subjects, as a rule ■ but m this case B's liability upon horses Ix-ing limited to a 'dven sum in the event of loss, it becomes specitic thereon, aud'^ can- not be called upon to make good any deficiency in excess of that sum, as horse Xo. 1, JJad there been no limitation the losses would ha\e been paid in full j.ro rata After payment of the respective liabihties of the two companies there av.H be a salvage to each, sav : to A on horses, un.ler the limit, .SloO, and in contribution .SSPOO- and m contribution on produ.r Sir,0~while company H will make a genera! salvage of SU7.G0. of which $1S will h. on horses. This will present the fol lowing AITOKTIONMENT AND CONTRIBUTroX. e o HnrneBc iiud V<'lllcl«8. I.088 i.iM 90. Iiisnren .. 1 ays . ., (Joiiipaiiy Totals.. Iiisiir«»_ $:m 90 334 90 I'ayi. *884 90 &» m Implemente. Iiigurus. «I5 13 Pays. $15 10 16 10 j i if. 10 "1 90 i 64 90 Straw Loss $291 . Insures., j Pays. $291 00 I $291 00 201 00 291 00 »3.S4 90 ifm 9 I'm TO I $m OO $2!11 00 I $291 00 Hay and drain I.088 .if;w9 .-io Insures.! ^i^Y^ »3fi9 00 I $209 00 359 m 310 10 9669 10 359 00 180 to $-aVJ 50 'A o o A B. IJor.se Xo, 1 Horse No 2 Um9$200. J.o«b «120 In8\ireg. 950 00 75 00 InsiiroB '''ly^ .. Insured. Pays InguroB.I Payg. 960 fK) 9M 00 ; «« 00 75 00 76 OO 72 00 llorso .N'o 3. 1.08.1 ^ftOO. Insures. j Pays $no no I 940 oo $i,;m oo Totals Loss 91,515.40. Insured. Paid. 125 00 1 125 00 125 00 ! 120 W) 75 00 ' 75 W 126 00 99HS frt)!3I2 r.i iw w\ 01.0 ool ir>> i(i|i47l() 1,900 (10 1 100 00! • 1,4-10 lu;489 60 838 STATEMENT XXX'II. Tin; AVKKACIE CLAIfHK. UNDEK ENGLISH PRA(!TICE. titiO I. In l'Ji','li.sh jJiiK'tico, wliou an avcrdfje policy is brnuglit inln (liivct contriluit mti with M])(icifi('(l nr iKin-iivunigo insnniiiot; upon tlii". same lo.-is, unlo.ss tlio English Iinlo (lilOT) be ap|ili(i(l, the avt'ragt> iiolicy i.s first mad'' spccilic \>y the. folldwiny Rrr,E. U'JU.Ti. Miilli|il;' tlif' sum of ihc lo^s liy tin- iiinuiiMt nftlic jMjIicy, ami 'lividc llu- it'sult l)v till' total \ iliH.' ut'llie |)ro|K'i'ty iil iiMk. !3*2crtif w fully insured, tlio insured hinistdf lii'ing held as a co-insuicr for any excess of insuraniu' over iind aliove the ammiiit of tlie avt^'age ixdicy, .iiid if tlw insiiicd iiolds any spc'cilit'd insurance Ik! must firat look tn tliat for indiMiinity to its full amount, before tlic fiverage yiojicy lu.'conuiS liablo to coiilriluitu, unUfOi if first he inadt' specijic hy tltc almve- cited rule ; and, wlion so mad(.! nimutie the amount thus found is its maximum liability in all direct eontiilaiiion with tijiecified or othm policies, while these latter are held for their full amounts. ,'t»4»7 I.) 22<»7> The otfcct of this practice is to relieve the insured of the responsibility assumed by becoming a co-insurer except with the average policy, and throwing the delicieut insurance — caiis(Hl by the (jperation of the average clause — upon the specifii' jiolicies, if specific jiolicies there be any. .No contribution is requiied fiom the insured except with compaides A and H, with which he is a co-insurer, as shown in the following example ; — EXAMl'LK 1, tili<»,S. (^;lll(lany A, Hv,00() li, " .... '>,0(»0 " Cspeoilio .... 5,1100 \h1uo !S!20,000, Losrt $10,000. Process: 10,000 los.s v r),000 ins. 10,000 •' X 5.000 " 20,000 value =;5!2,500 A's .share. 20.000 " ^ j,50() B's share. STATEMRiNT \XSn, g,.,. CONTKIIUJi'ION. Coir.piun A, liiil.iliiy made siM-oitlc *,, r ,„ H, >. .. T'-.OIIU *-' (Tiginully specilic f,^^^(^^^ T..'al inHurance ^r^J^ ^"WloHH ^,o„(,„ uituii w.niKl bo us lollows :-- ^ ' EXAMPLE 2. Company A umh specKlc *.,.„. ,. jj .. ?(-,.)00 Tlie 1,8 1T.1— (lolioioncy of A :vu^ H . . r'fl ('uiii|mii/Ji, specjiO,; ins.uanct' '...'...'.. fl'ooo Toiul insuranu' i^^OOO ''''' 1'"^' '"«« $10,000 They lose sight of th. fact tliat M.,. iu,nv.d mo„1,1, ua-l, i .su.h a.. upport,onmeu., Le call.d „p.„ to contrib.u. ^.,u.;as he has ahvady cuutnb.iUui with cruupauios A aii,l Ti, ,n„i.r th. average chtuso, au.l o.nipauie.s vvithout ihc cL,,„ao havo no' claim upon him as cu-iusurers. aaro. Another injusUco to the insured is claimed in that lb. mninnng ratio, of msurauoe to fb. aiauuiit.-f tb. av.r,,.. pohcy only, he gets nn bnaefit tVoru ,my .poeilic iusurauce 'L may have m additiou. Ibu.s, he may have iu^urauco ; — Company A, under average |!r>,{.00 '' J' ".. " '-"00 (value, 130,000. ^'^ specitiu ]o,()(M) J The habihties of A and I; are estimated as i^5 000 is to *30,0(JU ea,-h. because the insured is co-iusuror only for 'the excess of value ox Ids property above the total average insnr auee thereon, and the clause iu one policy cannot be extended to the benefit of policies not containing it. ^^.. o^. ^^> IMAGE EVALUATION TEST TARGET (MT-3) 1.0 I.I ir i^ M IM 1.8 1.25 1.4 J.6 ^ 6" ► Photographic Sciences Corporation 33 WEST MAIN STREET WEBSTER, NY 14580 (716) 872-4503 «? p wl (/J i^^ 840 STATEMENT XX XIII. PKO KATA DlSTKlIUTItiN (JLAl'SK. ii'27l» Culiko the c<>-iusunnice cluu.so, th(! amount of inmirancp n]nm the property does not emi^r into the pro rata calculation ; the value of tlio property at risk iiii.l the tttha of tlic profK-riy htst will W. rwiuired, ami the clause is always operative. (JWH.) EXAMPLE 1. M\£7m, Ten thouoand dollars oti gixxls in }>rtckRj;(H and in pn^i'S^ ot bk'acliin^, dycin>j, nappinj;, flnisliitiu, and wlion finished, contaim-l \u tin- tuiildingn of the IaiwcII Hk'achcry. in liowoll, M:isi., marked A, H. (' and l>. <^n diui;;rani To cover alt^C' ■rioils LeM hy tlieni in triint or on con fiignment In caw of loss, tlii.-' ihsurance to (joninlMUe and pay in prMf»)rti<>D lis the value m each luiiidinp IxarF lotlmf in all. BuildiiKTH A, l5. C arid [j contain value $'2;' .000. In buiiJing A |iJ,(lO(> H 7,«no •« C 6.(Mm " I) I.-IOO Low in bnildin)^ A, $(1,30. «« " C, 2,500. API'ORTIONMKSt. tiiilli. \-> tUe total value ^1' proix'il). |2.'),000, in to tiie \alue ul pro|»erty in building A, $;>,(I00, so is the value of the Iobh, $«;,250. This gives result in A |12.'250 And nM!|t2.'5.OO0 : H5.(K)0 : : $2.:m ivsnh in C .VM) Total payment $2,750 To l)e paid j^ro rat* bv the i^ifverai co-iti»urer8. portiou tis I be STATEMKN-T XXXJV. DAMAGE JJY REMOVAL. ' prnptri^ (roin a (mildmg (nut ypt on firf) exc^i>t u i . . , i . the .urn hereby mmred be, ^nZ,, ""'"" '^ '" "'' /""/"""«'. a,, i.0(lO it) \ aliir. (Iiiinagc accrucl tlii'rcto ti) the aiiioiuit i>i ijirilM). 1 in. Ill ilic-i- circiim stall ci*H, it waa olaiiiied Unit tli. Iiiibility o( llie coinpaiiv vMiiilil 111' foiiiul a^ IoIIowm : - As JifijOOO, vnlui' o( Majvaj;*', «ii-i to f'i.OOn, niiiomit <>*' iiK^tiriitue, f^o was $500 .liiiiiajte, to thf liability nf tlu' iinii'TwntiTw, wliiiih would give $200 as '111' li.il'ilin nl'ilif iiii*iiraiut', leiunn; tlie i:i-iin.l ilmn $!<00. 5J277. Tlii'ii: iniisl lie soino mistakt'. liore, as any such ruling, uiiik'i Ihe cin uinstanccs set fnrtli, Wduld lu; iudiroct ( uii- tmvt'ntioii of the oxpres.s I'luulitioii of tlu.' fniitiail j^niamntt'ciiii^ full iiidnanlty aj^ain.st all lu.s.i or (laiua<;t! causod ilirectly by flit' !is tlit'(ianiaf,'o in ivmoval would have been a.s abovu n-citt^d. Any tiiiliirc of tlm in.suu'il so to remove tln' ^oods, so far a^ in liis |i'i\vt'i, would have liofiu at his own j)eril. Tliis Minnesota det isiMii h.is sinco Ix-en over-nded. The condition as to reiitoval of jnopcrty is contingent only upon the ininiinency uf the danger, ami thi- [pro rata --tipulatioii of the j'olicy is iiiteiidetl only to prevent nnnece.ssary loss and damage caused by hasty atul ill-judgiMJ removals, by wljich the property Uiiiy be injured and exjiosed t(> hwy, (lO.SO.) M43 STATK.MKXT X.\XV. " THUETvQUAHTEJJ LO.ss CLAUSE." 227M. (■■■ndlt.unor thepolk,i.-^^h .. ,n,.l,.r8to«.) n,,d ajfn..,.,| to ho a CO ,.„, ,„ „u. ,„.uranc., rhat, i„ oa.- of „,,v lo.« or ch„„. „.„,.., 1.' po uy, tl.,Hc..n.,,a,,v ,. an,l .l,al| ho liahl. ,.,r..n!, //-m- .b,,,.,/,. .,„,. su n ' w.rh;:!;:::,'''^ ""■"'"^^'^'" "'^'^^"•'^ .-«i'i.«u.^„„,.M .,...„ Ch^r: Th,,s IS H simple pro raUi app.rtiunm.nt, Ui. msu,v,s 1„,„.. l.a ;le (or ...ly Ihrec-fvurth. -f It,,. l.,.ss v ith.n th. .,u.H,„t, „( th^ rol...,y. Ct^iT.) The f..llow.„g .,^a,n,,k,s will iU,..,.,.,.. ,l,e wurkiug ul the stii.ulaiioi. us hetw..,;., msumr inul i,,.,.,,,,! KXAMI'I.R 1. a27«. (\,mpauy A cov.m'.s sto.'k to the aTuouut ufs;i,i(u) upon a viil nation of ^4,()il(). ' ' In .ase uf a touU I,,.,, th, fo.,.pany M-il] pay the i^%m) bou,;^ thrc...nM,n.h. ofth. lo... TIk: i.sur...! I„.„., ^elnn.^^ for tho halaiicu, {<1,0()U. EXAMn.K 2, 2a.H0. Company A injures i^3.00() „p.,n a stock of.-Jtl (JOO as n, hxuuipl, 1, hut .saves property to the ainoimt ol v,, )(,()' LLc loss being So, DIM). ' ' The eon.puuy pays 82,2r0, hoing threo-lourth. r,f the loss. !|f.3,()00, a.„l tJK. insured bears the other oue-fourth, *70(). EXAMI'LK ;<, aa.SI. Company A insures t(, the amount of $2 oOO nn -i stoek of S4,0li(). and saves from a suhsequent fire good, to the value of !«!l,oO(). h.ss being *2,5(i(t. The eoiiipany puNs tliree-h)i.rtlH of the loss, or SI 875 • th. insured losing the balance, 8625, which, with the SI 5oo snved and the SJ,S75 received for the m^nanee, wdl m.ke th. north of the property s;ived S3,375 on a stock orS4,(H)(). Jf there be more than one coiuimny u.teresird, tlie loss is sliareil jjro rata. "i ' 844 STATE^rK^'T XXXVI. LIMITATION CLAl'Sb). " Loe8 not to exce»-^ " Being not to exceed $.)00 on any one utiiniul." Coinpnuy C coviTS live stock, peiierally ... . I ,t>r>7 "No(jin' liunnal lo hi ratnul nt more iliaii $500." Total iiiHurance |t4,K34 Los*', one bull, valued at |2,ll(ii\ iiiul two steers, valueii ut|IG8 oach. Total$2,,S:U!. 2S.s:i. The fir«t question to be decided is the construction of tlie clause in policy <.', "no one animal to be valueil at morr than ^500," as upon this will depend the apportionment. Tf it be a rained policy its liability will Ix; ^l,oO(), that is SoOO each on one bull and two .-steers , for it cannot bo " vdued " as to the bull, and " open " as to the steers ; nor will the amount of loss on either affect the valuation \[ " mitLed" it must pay S500 each or the steers, without refeience to the ammmt of loss, for that is ihe bond. (2H3.) This will make company 15 and C con- current. !^tiM4. Kut it evidently is not a valued polir.jj. Tht^ contin- gency provided for by the words " more than j*5t)0," shows that it was the intention of the parties to the contract simply t()0, and to pay that sum or Lens, if required. I 'p A, rovor- mg without limitation, becomes of the Jiature of a'coiiipoim.j policy, tii>,itln>j with the loss to make the indemnity good to the •i.surous of lueses falling under tho cHir ul ailjustets, f(!W cause nioit; ditlieulty ami rL'iiiuj,'li jinii'liail serulinv tliiin the sottlenieut of a lltpit/r Iumh. The faeilil y with wliii'li Ikjihus (uu lie nni, and the nianiimla- tionw wirhdut iiutuher which the ailidtw under^'o in tlio vaiii»U8 processes ul CDiniKniudiiii';, and whiidi it is ahud.st inipossihie t'^ deloet. riinlei' it a niatt,ei oC doulil, even aft'T n rar<-ftd adju'it- nic'iit, if liie ciiiiijiany is not I'lying at iaast douldu the acLual value of the property io.st. *22H7. Tlie fuIlo\vin«4 digest of tin; report of an ediustnieiit of a suspicious liquor loss, made hy li. II. I.vauk.nce, Adju.ste.r, ooutiiiis many suj,'L,'(!stive points, and will ainjd) repay au attentive peru.sal. Ue says ; — I fi.'unci tliut, lor •tli of Septi'inUT, 1">7(), .iinl the li'tli ')f N.)veiitlK'r (tla- (iuy of llie tiri ), tlw puntliii-"H liu I ln-cii ciMniMse.l aliii'i'i ••xclii'^ivcly of alcolioi anil f*pinlr* jin I very low pru'cil wlii-u( t'lc suine avcrimt* price ]>ev gallon a- ilio«f previously ina.!*", sliowiiii; thai difv were lar^rfly ilecii'ii-'in); ilic stuck of Intter lii)iiui'- with wlncli the clu'aptT iirlir.lcH wtTC i.'i'rii|)oiM]iiei|. I loiinil that, on aii iiuths.'*', 'Ih' lii|MorH foM wf-re atiiMtl I'l per ccni. 1k'1i>« proof— that ih, (.■oniiiiind I,') jut cent, of wali-r ; that, pru f urally, no pure liipiKiri were .■^olil, cM^'pt in tlu hIiuipO of ulcohiil and spirits; aipl (hat ilie a\'r:i^'f proportion of iiigreilicntn conipoeiiiu tiie liquors dispoHeil of were alioiit 2'.^ }K'r L'< lit, of coiiipHrutivcly jI'khI liipiors and 7(U [kt cent of alcoiiol i?piriis, or very cheap uhiskics ; in other words, u harrel oi tO j.'alloiii< would lie iiiftde up as followM; Water, 4 );all-/i.s; liquor (averagiiijf say $1.46), lOj gallons, and alcohol, spirits, or clieap whn^kics (avpraj!infr Icms than !fl 00), 'i.Oj j^allons. This would give iflllM as ihc average value jK-r i.,'allou of the 36 gallons' of proof licpior. The imrcliasep fn^ni the Jfith '^f Septeiiilier to the I9lh of Novenilier of doiiiePtii: liipiors of the h>'tt«>r class, a,« .shown by the Un.ks of the lirni, atnouiiled to 2,00;') 74-100 gallonc ; of tliepc there were on hand at the time of the lire, tu< i-howii hy the schedule of the insuretl, l,t>'.'7 galloeia. lif clieap liquor!*, the piirclia.ses unioiitited to '.iJiHl gallons, of which 7!*4 gallmis were oi. hand iit the tinie of the lire. <.»f alcohol and spirits, the purchapcs antoiinted to 'J,i'M 2 100 gallons, the sale to 1,210 gallun.s, and the reinaiiider oti hand at the time of the lire to 4M '.Hi-lOO gallons. During the same time there had he*'!! returner! IC^I gallunfi nf liquors which hfiii heen ^vUl hv ihe firm, and of the«t; 70 gallons were still on hand, the rcinainJer liaviug been BOhi. HTAJ'KXENr XXXVIl. h: Tl... h;i1pm ,|,n.i.,K r),i- f..ri(..l (,,.,1 Ik-c, l;t,H4:i •J.'i.lOO v'all.m. „, all ,f ..ors. .u-..rH„„« 85 p-r cent.. e„ual t.. I0.7a« 2.. KU. .all..,, a, „r.„ n::i:i;;:"';;.;':;:::s:::r^ ^- """'^- »^ -- ' - '-'-^ |.ur,K.s.. „... a,l.|„i.,„ ..r ...4IV U:.,o« ,allonH of ,..<• In. ' ij 10.l4f. J.,.10 gallon.), an.l we ,i„.l .,„ l.an.i at .1.. „,„..„,■„... li,-.. I KU .7 Uw ■■S,.,r.t.iJ„ok," kept byonlerof tl.o (}.,v<.rnn„..,t «l..,a.. I 1 1 r, ,„!<., ^r,i|io„ft. I !,avp acconnlci for this u.> l„]|„vv« •— (o.n,,oun.k-.lli.,uors 4,901 .97 gallons. "•••'^''- " 1,(197 " ^''"■"P " 794 Alcohol and «|)irilH 4o;f.9t) " Total .... I.'avirig . , . .7,H4t!.9;i " . . 44(!.()7 '« not ftscertainod. Tomakoihc balance of sp,ri(l«,ok,. M!W ^jallons. In the ,,.epamtion „( s..!.,.,!,.!. ^. A.- accompanying M.o pr,.,f, of ].,.« I h« e troated , . 44.^07 gallon, as l,i,h-pric;.i wh'kv. w ,,.1 *•' ■ r. gallon the bo.k. ■,„« p,,,,,!.... ., th. ch.s of gooil a, . , '^H, r .1 1 l.an tho... al.v.. nfcrr...! ,... The other article, u, Lk a t hre are shown to have l*en there hv the U.okH. The <,.,al an .. . «Qninrj . ' ""'''' f"n'''''v to '.ho an.onnt of m0l0.fi4, as «Ih,v.- ..et f„ril.. .h,,„„,^- a iu.s, of |t7..-!75.!.t:.. 10.Jl. an.l l..r loss. «12,7l>8.51. Total iusurunn... ^^-J.UOO. 848 STATEMF.NT XXXVIII. WOOLKN MIU-. 22.S.H. I?osumt'> (if (III adjiiHtiiuMit of diiiiiii^'c upon tlm Wll.oox W'ooi.KN Mill, nt MfriiKni, (Umu., onuinri;,' in April, 1H70. miulf li} thi' lute E. K. M\n ion, llkii rrcsid-'iit .if Button Miimifaft.un'i>' MiUuiil, find otluMs. Kiuutiatirig fiuui this dourctj, it may he conrtidered aa uiitlioiity so far m to what con- stitiitt'8 vinchivcry, tooh, tixturvs, tnipplieH, furnifvrc, dr., as connected with mill risks and losses. T\v«'nty-four compunies wiTc interested in the 1o.ij. Tim total insunince was Sii70,0()0, aud the damage was Jlii8'J,4(»0, as follows —policies con( (irrent exc<^pt one : — liiHiirniice. DuiiiRge, Uti ihf tliroe-Klury tiiitl allic main brick bsiildiiik'. |!t5,000 00 |ii;tO 00 Un tlifKliaflinfi, l**-!!!!!}.', niiioliiiifM ami niBrhiniTy, gn!>. wiii'T, iinii Kti'tim iiipet tools, tixiuroM, Hti|i|iliew, lutik. wafi's, iiiill ainl o(lice I'uriiiturr, coiiiiiiii.'.l tluTciii .. 130,000 00 910 00 On ili<> Kttx'k tiiui iiiiitcriul UHed, iiiaiiutiicl!itlif nvo-.^'tory Lrii'k ilyc lions*-, iniidiiin' iinil re|>Hir nuini, piokfr-rooni. ■Iryinp-rooin, yarn, wiK)l, Hiul Horliiig rimiii (in ri'ur "f main mill).. 30.000 00 2t>,000 00 On lli<; «lmtting, I'flling, tiiacliin»'t>, mHi'linicry, loolf, Mi|i|)licc, lixtiircH, fiirnitiire, dyetulis, ^a.i, wfttcr and '^tfam pipec, en^infs, IxiilcrH, piini|)H, imil their corincetmnrt ouniaimii therein 3r>,000 00 22,000 00 On tht >tMi'k and iiiateriai iihed, iiiuiiufiictiireii, iiiimanniiictiired, aud in procet'H cuiiiained tlierein 40,000 00 -tO.OOO do Tolaie ^370,000 00 t8i',100 00 APPKAlHtMKNT. Sound Value. r/areafftxl. Mam mill, damage |190 00 Macliiiii-rv, etc., m main mill, danitt{:<'. . >tj(> III) btuck an.l material.^ in main mill, damage .'iOO 00 Rear huildiugn, dye bouNe. picker-room, etc, dam ani .' : 20,000 00 Macliiiierv. etc., in rear biiildiiig?<, damajte as fol lovvs, VIZ. : — BHATTINO. including coupling*, pulleys and hangers 582 60 582 (Hi BKLTING. Inclii ling niair, Ixdt and counter-belt |1,68I> 40 |l,06t 40 I sidi. luce leather o 00 3 00 |.1,1G7 40 ige upon tho iriii;,' ill April, (I'lil ufiJuston rig I'lom this ,8 to what con- nit lire, etc, as lo.^3. Tim total 400, as folluws loe. I>ania(i;(), [) 00 |1'J0 00 Olt 'JIO 00 00 300 00 0(1 2t),000 00 00 22,000 00 00 40,000 00 2 60 00 |tfy,40o 00 Value. r»ama(?oiI, . VtUlllShX AMI V\. IIINKIIV. 2 Hrewr-HnH rn-U.... I lltamer ^I, 000 do ■^ (.Vil-l-iiir .Ir'vfT^ -'^ 00 J jiani ,.„,| H.woi,icu".r 1,'»00 00 1 Kfllnirjr „|,.|<,.r _' 'tlilMlO I I'liikiiiiiht l.iirr-'im'Vi.V '7'' "« 1 Jhisl..,- '^n'l'Ku ( ,.^. ^^^^ 1 ^V',>.,|-^vns|,er 1 110 00 I ;;;;::;;;:,;; ':;'^'"-^ '•s:;;;; 1 l-Hive ||,,|| 400(10 I ItlMii I j;ijr 1 r< 00 •i FMllii,g.„„|i.w J • •••■• 2,060 00 Total ti2«l>a. •""MS AM) n iixiTritK. ■» OiiXfH '• .. • • I 'iO-gal. nil CM I I'r. faiiliHdkM' scule.s. 1 i'r -tt-ilvanlH, Siin.liy KmiI- 111 picki-r r ,ui, i VVodl iriick^ 1 J'r |.i,„k., r.>i«. H.i.l wimiiass'. 1 Niiat( li-|,|,,nk 2/> Hi.xcH with ca«ter>, jr). ...'.'.,*. i I''i/*cliairs 1 ci.)(;k V.V.'.'.V.' ■; i l>>z. pr. slipiirH 1 Ui-^k .. I Siuvf Hiiil |iii)c I I*r. FairliaiikM' .stal»*. . ." 1 l.arije Hprav for iloili . . .' 7 P,.les n.r poliiij: wool, $;j K'" Yarn i)iiles lor vvnui, 25c. " OOtlOn, l.T:'.. :' l.arjrc ro.'ls on uil)s, *l.-.. . . .*' 1 I'r. ^'airballk^■ mciiI.- 1 Clork 60 l{|.-e.|m;r haa^A for dVfiMir. 2:>i- 1 I'esk ■ i ('ii|)lKmni ■I Hn Iroiiit'tt'i-fl '^ i'r. KiHJcs \\ i„„ r'".','!''.^ '""'■' '" <''".y-"i'V.u".se .■.■.■.■■.* 10(1 ll. li IIMill ho.-f 20(1 ft. H " <, 4.^^. •1 j'oujiiinjr-, ir, ..."..'.■;;;;;; ^ Large baskets witli caster!?, $ii'. .', DDD *ir. 00 l.'i 00 N 00 2;'. 00 ;■> 00 26 110 l(i 00 (if) 0(1 Id 00 12i". 00 2 00 r> 00 C 00 4 00 2(1 00 ;{.j 00 8 00 21 00 4(1 00 .!" ."iO 45 00 ao 00 6 00 12 50 lO 00 10 00 :> 00 2(1 oo 150 no 125 00 y() 00 20 00 16 00 849 *75o (III 211 (10 1,000 11(1 44,. 00 160 '1(1 1 .iiiiii (Ml !I0 (10 l,2;i;, 0(1 l;.0 00 ;i'0 (HI 5 00 250 0(1 $i>,iS it 00 *I5 00 15 00 ;< 00 ■J I' 00 • I 00 2j no 16 00 65 01) 10 00 r-'5 00 2 00 5 00 6 00 I (10 2(1 00 ;!5 00 •S 00 21 00 40 00 .17 .50 45 00 ;iO 00 5 00 12 00 10 00 lO 00 :i 00 2(1 00 150 00 125 00 S»6 00 20 00 16 00 $1,020 00 f ( 1 ! HO STAIKMUM' XXXVllI. '2'Ji\Ht. 'lllHIIM'^ of Ai»lit iihIi, Uiritx, -III (mI 1. -oup, hicliriiiiiuir, iIumim-, Iht Inric iii'iil. iixulio iii'hi. iiiiTio arid, I'di'li ii('iil,rii| |ii'itH-iuli', alcoliul. I'liiiiH'ix niu. l>iir«MMH|, iiiiiriiilK: lU'iil, I'lirmiic inor «)aiii fciiili'TC'l nil. ^ri'Miiil liv|ii riiic, I'liiiiJi'riK", li|iii> -i'>Mc. rii'llicur, iiii|iui>, cliliiriiii' liiii)', ^hIIic ai'iil. ilul'liii puri'i'-, I'liic <(i' Lynn, -lul uiiiiiioiiiuc, i;ri'iiii»nil('r« wiMj)!, 111(114 ui'iil. I'aii'i'liti, ciirln'yH, Murk iron li<|iM'- Viilnc fl.iMiO . |.l,n(MI dO $;{,riri(i 00 2*J1M. MxniiK- 1 Tli()iii|>HOn'H t'l«'V(itiir. . |.'>r>0 (»(» jJiS.M) 00 ll)'iirl.< ikI I'Iii" III i>(>rntiK rtiiuii. ,'tli Oil .',o on :i tilm oitxkh iiiid ullikclitiiciit 1.) (Ml I.'! 00 (i UiMlhd tlll'^.!il2'> i:,t> M) l.')ll Oil 4 " " laiyr. jiir.O «i(i() 00 coo I II »1 S<|imrr ■' " .■?*!"> 4.'>0 00 4,'"i(itm I F'liHi Willi iiiiii-' lipr -ki iii-dryini: "JO OO 20 (;0 1 UmiyiliU Irt'tili w ill t^l|l^■ ...,. 10 00 10(10 (ill-, wuli r, .'iiid -iMilii pilien lO.v^O 00 ti.OOO 00 2 W ««k|i iitr«V Ufii'li ciij^ino. 'J ilr-ip due Ixiiler", 4 luliiiiur do., I liitj:!' Wuiilimmmi |iimi|i I Guild \ (■iirriMoo''' (Im., 1 Kuil do., |'I|M",vuIv«'h, driiiiir", kriiiij^-.", indu'iitiin, i;<>okf>, n-jsulntori', ami cuiiiiti'tiunH 2'J,60(i 00 .'i.iioo on flO.i^'t.'i OU '2'.IU\i. -lork VMl M.\1I.IU.VI. IN till KKUl III ii.ii|m;>i. :!,)0I 11.-. |iiillpd w(Hpl, l.'n |l,5'tO 4.5 ,.'».,,",io • " '• 4.'>io r.'.oi;:' o.-, I.iIm ■• " " 44 Jc TtO 2;'. ;j,l'l) •• " Hwund, tlif . 'i,ilK Hi t;.-.Mi • l-'ii e " " No .{. iH5r 5,>-22 :,n 2,"J0(I •• Culil.innii wuul, ll.sAr ."17 00 7,.'.iiO ■• .XXlliiif ■..ir'ted. .")_' ;{,!l.il '.'O I2,""<0 ■' I'lukk'ck w.M.l.-orli'd A iiii,-i;rlrc|,.')2c. (),•:!.') (.0 H.ST.'i •' l>iiiiii-it)i' tl''i>c lio.'i 00 2.7.)0 •• .Sicdv iiiid I'rilif •' ,">0c I.;i7.'i 00 ll,t;;Mi •• Ortr.'n " 36c J,077 .M» .'ioo •' V:irii.!|il.2.i C'J.'i 00 l.i'iiiO ■• Wool siriiii:. iJjc j2 :"(0 700 •• WiHil -uckr., t)0(; 42000 eoo " '■ .'>o<'.... .{00(10 110,07:! lit |f(10,(l(Mi no Tuiul damage $»'J,400 OU I) uo ta.i'i'o 00 iW |irj/>o no II (III .Ml III) . (Ill l.'i 00 II Mil 15(1 (III (1 III) con 1 11 II III) 4.'i(l 00 II III) 20 00 II III) 10 00 i) III) 6.000 00 00 .'{,000 00 llll),''l.". 00 II I'IMiS, 45 .L' i'Cy f. .T. h .s7 2 i'.O 7 (III 11 -JO ,1 1)1) .') (Ml >:> on :. (10 7 r.o ;."i on ij :,{) in 00 )0 00 7,; '.)! ^Ul.OOii DO |S"J,400 00 ftTATKMKNT XX.WIII. • t 1 I t « f I t 1 1 t I t I : i : r : : I . J • •••♦•;.!:!;:::•••••••• • ••••«.» .. ,,•*•'••'•••» 851 : .,tr f/_? -' " » S ii » tt « S t « ^ i & i jj ji ]:> S : ' * * "^ — ' I" »'' ■;'* '.1 •»• J« U* — -fc 1_ '^ ,- ^ .. _ I 852 STATEMENT XXXIX. lUILWAY ADJDSTMKNTS. S!jfll. Ailju.stuunus iiiuier railwiiy jM)licii.',s on the ternn of the policy, as to the subject oovtred, es])eeially when it is in the general form. The ]iroper constiuction in such case will he left to the judg- ment and experience of the adjuster. Under the move inodern forms of sueh insurance the jioli- cies are made quite sjn'ciiie. so that an adjustment of loss under tlietu becomes an easy matter, as comjiand with a lloater. '^'^iHi* Th(! following setthMiient of a loss upon htiilitlmj^i under a. railwa\- policy end>races some very valual'le sugge.s- tiou> upon this class of aiijustn\ents umier similar contingen- cies, under other jiolicies. The ]iolicy was of the hlavkef kind — rate lo per cent. — which had the mi.-.fortune, as to the un derwriters, of hecoiaing !^]»'cijic in its whole omoviit in (Dii/ onn 2)l(Ut whcie a lire may eham u to occur under its jirotection. EXAMPLE. 'J'JSHi. Till' itisiiifinoe Wiis fur iJ50,0''0, on llie |>ro>iirty helonsiiina: (e llie Mii'iii/itH Cmilni/ luiihru;/ C'lininini/, .ariil on iiiiv pro(M'rty tor «liicli tlipy Diay lie liiiMe exci'|il as comniuii carriers; it inallcif^ nut of what the prupi-riy may consist, nor wlifre it may be, pri)vi(l<'il ilic |ir le niadi' for loss at any one lire inilefs tlic loss fxcocd tlic sum of live liiiiidri'd dollars. Tlie policy not to Ik liaido for loss oci;a- aioiied liy collision or by breakirig down of curs or locomotives. Liivrly to Lis contain few iinilav pruiierty) lies, etc., otc. iiicos of loH.s. rvc Uic rit;lit to or liic action of lacing is iisiuilly lids of buildings )licy, as to the gciiornl foi'in. eft to ilu' jiidg- irance the jtoli- iistment of loss nirmnd vitli a ujion hdMings •aliial'lf. siigges- iiilar contiiigfni- lie bJavlrf kinu e, as to the un '■{( III in 'lit I! one ^ lifotection. [lerty bel()nariy, load iv.iw "ivMBieiJ loss tll( lOHS t'XCl'l'J iiil)lo for lose oci;a- olives. Liberty to STATEMENT XXXIX, / '• 1..I.MV '-nU.or insurance, whether co,U.n.p<,raneou.o,.,''t,,;r wooD-anED. (Si^e 31j X 180 feet, and Irtfmi.igi,., lfi,840 r.',i -„• l,n.,b„, all kind,, r^; $20 peril 400 lbs. nuils, . J- ' ' ^^^ $3U 80 60 days' hihor. ^lis^ T'"''^ ^^ "0 S's W 80 wati;k-i{()1'8B. (Size 10 X 20 !e,'t, and n /£.<.( po-th) 12,500 feet oflu.nlK.r. all kinds, *?' *20 ner M •■^SOlLs. nail., ' ,- T. ^ "" '^ $250 00 lA«idavs l,d„,r, n'<'""'< ^4 50 - iMr-(Mvuter-iank« inside, ^,$60 each" •••••''..> t)0 1 large stove and pipe 120 00 2;} 00 $^'.)-i: 50 BARN. (Si;ci. 11x18 f<,,.(, and 12 feet post,-.) 4.760 feet of lumber, alj kinds, 0, ,?20 „er M . ,, ' ("■ *( tier 4 M. ..hmgles, (.-■ .*.5 L M " '^" 41MHvs'lalM.r, c, <"i,^. ^0 00 '" 5''' per (lav ■- doors, trimmings, and frames, („< ^.', each '''"'' 2 windows cc...plete, ('r$Jeach '" ^'^ 10 00 CO.VTE.NTS OP liAR.v. ^^'-^ "^ J ton of liay, (.? $14 por (.,„ 1 iiarness ' _ ;?7 00 1 riihble-car -'0 00 laniage, ;(o OO ' $1.(1000 The liability of each $1,000 of insurance was f C42.0fi, p. 'J» m' 854 STATEMKNT XL. MlXKIi POl.iniiS. 220.S. Tlie following is an actual adjustinont of loss U[ion a niauufactiiring t'stablishnicnt, muhn- thirteen policies, covering nine different subjects, partly s]inc'itir and concin'Tont. partly general and non-coiu'iirrent, and wliolly mixed. The loss was total ou some of tliu subjects, and ]iartial on others, wlii'li, with the exceedingly vi.iu'eit uafnre ol tii(> jiolit^ies and the apprai.>(nn(>nt,, made it a nice jioint of adjustment to find the Correct apportionni'nt. Tin; jiroi-ess b\ which the eontrlbu- tion was iv.iched under Rule ^'111. (liJt.lO) is given in detail. It is ciiiolly to ( xhiliit ilu^ iallacie.s attending the Lreneral ujipli- cation of this rxle to adjustments of lliis character, tliat this examj)le has been repjndiiced lure, v». e.ntenKo. A corrected adjustment, oceuj>ying but it limited space, will l)e ajiponded (s: 1,000 2,500 ii.OoO " (J i,h(Vo 1,000 1,500 i,oo(i l,5(l(.' !..5f>0 « 7 «« >> l.cOO ' 2,000 3. 750 '< 11 . .. 1,000 2,600 « 111 . >• 2,250 •< M « la 1 " 13.. 2,500 1,.-)00 I 1,500 2.500 1.500 1,500 1 Totiilti 5,000 2,00(1 3,000 .3,000 4,000 1 ,000 9,000 27,000 STATEifKKT XL. a6« of loss upon a licies, covoring uiiriont, partly and ]iartial on J of tlio jiolioies istinent to find li tlu> contribu- jiven in detail, general ujipli- irter, tlial this '. A correi'ted 1 1)0 a]ipendod t» = 3 / e ^1 *f. o S n 'it $ 1,000 1,500 1 fiOO ... 1,uOm ■.■!,,■ 00 .i.OiiQ i.soo 1,000 2,000 1,500 3. 7r.o .0 2.500 ;;.250 J, ''DO .'.500 i,:>ot) i.rx.'O i,5iin l,.500 K) 9, 000 •il,m) -^ a2»!>. The lom, ;i,s ascertained an.l reported hy the ao- pvai8ers, was in the following form and amouut.s :- LOSS. J:"f '"' *2.000 00 M,u:h,nery , *r, .j,,, ,. ;':'';"8 I'.'ij 00 Hu.Kii..,.^ •:';." Sha Ung an.l l.angerH M)0 00 ^ aUr and cog wheek ' ' U ' Z Tools a/id iMxturcs 1,9.57 59 '.i"0 00 '^'^"d *22,(i27 7J APJ'OUTKjXMEXT. a»00. ( Vwupanies ninnheved o,,. and ..m. cover conjointlv to the anionnt of $2,iH,0, npon sub.ect.s the lo.s. upon whieh is ^/,9:i8.14, M-hich gives the insurance as 2o.2:i7 per cent, of tho lo.ss : — Slll.Jt^CtB. I,„gB. **"^"«'"e .$2,000.00 r;? 25.227 per cent. " nidcliincry 6, ,'{28.14 " " c< " p-illi'v-H 200.00 " " « " shafting and hangers 100.00 " « <• Total loss.... 1^7, 92«.U r.ital in.-*iiiMncp. nisuiiuico. |.'i04,o4 l.,:<44 10 50.45 100,9] 12,000.00 Theseamonnts give the insurunee, joi.tJ>>, and upon eaeh Item , divided pro rata, the liability of each is ascertained. 21501. Companies numbered f,-o, three, foiur, five axu\ ^ix cover m 1d. 81 485 j^-r cent. " belting . .. Ml.OO " " palleys 200.00 '> " " shaCling and hanjrers 400.00 " '• .. Total loHH....$;i,55) .00 Total in.snranco Insurauco. $1,0.H9.(.G .^O.i..i;{ lf..S,97 3:!7.94 $;i,ooo.((o Being the respective amounts of insuranco by these companion upon each item. 856 STATEMENT XL. !2:fOtS. Theso last nuinod roinpanit's cover also ^3,000 on othov .■^uitjects, tilt) loss on which i.s ^7, -8'). 73, which gives the insurance aa 41.17-i per cent, of the loss: — Snlijpots. I'088. On machinery |j,328.1'J („> H .174 por (leiit. " Uwl.ri ami fixtures.. l,!tr>7.5!) " " Iiisurauee. $2,193.81 800.19 Total loss i5!7,'Js,').73 Tom! insurance $3,000.00 Being the respective insurances by these companies on these subjects, in addition to those before named. A pro rata divi- .sion will give the liabdity of each one. t!;{7.00 " hellin;^ 'J.U.IU) " '■ « 1,223 00 " tooU anil li.xiuie.s. l,it.')7 . ;VJ " « " 2,o2(i.00 Tutal loH« $3,11)8.59 Toffil insurance $1,000.00 Being the insurances by tluse c(uup.uiies upon each item ; a^oo rat(t division gives the liability of each. tiStOf. Companies numh(>red four, seven, eight, eleven, tuelve anl thidc.eu, cover specilically upon building to the amount of $9,000, the loss on which is .S7,14G, which gives the insurance as 125.943 per cent, of the lo.ss ; w pro rata division among the insurers gives the liability of each. Coni[!anies numbered /wo, three, four, foe, six, ehjht, nine, and ten, cover stock concurrently $5,0(»0, the losy on which is 1?3,245. which gives the insurance as lo4.(i83 per cent, of the loss ; by a pro rata division of which the sepai'ate liabilities can be com{)uted. (Jornpany number ■}iiae covers sjteeifically upon the wheel to t,he amount of Sl.OjO, on which the loss is ;i51,400, or total. liisuraiicp. n, c.ivei' 111 .s #3,108.59, u; loss : — .. $1,(100.00 item ; upro STATEMENT XL. qp'" sm^'?,?"*' ^'''''"^' ^^"" '''''■'^^•^' '^^ ^•'^ «^n«"nt covered ly tj,, ea( ri .-j.i j.hI, th.- ratio of contnl.iitioii is readilv ihmu] Tl. f i i^tll-LKVS. I Belting. • S'Jakt and I IlANOliRs. Injures Pays. ln8ure«jray«.;i„«ure8lpays.,„Bum.r,.ayH. Tom.H AND l'"l.\TI HE8. a-'Z 27' i;.-)l 10 ^•^l «l! 2r,ii ;iO '-'-1 «l! y.B ;j(i ■■>^i Cl ; aoo wi 25 22 10 .M * 17 I n S.T 2« II! I II K3 W IC I 11 R'j ("« .« I as ofij 2H It; I II K3 I I .50 10 I.'« 90 (;3 f8, ,MI ;« l.ir* yiii 02 HH 5(1 y^ 1H;I oil 02 8H 207 SlilKS 71 i.'ia 00 (i2 8.1 « 77 51 41 , SI 41 ot) .■t.'i ; 51 41; IIJ ti-l |J02 82 .■^6 32 I 61 41 1 .W 48 I 45 77' RKCAPTTILATION Total amount of hifluranco Total ai.H.uut ver payinonU' .. 1111,777 W Mailf up liti follows : Kxcess on niachliK'ry $l,.'t77 29 " Wiitor-wlui.l 4(Kt (H) 1 ,777 29 Ornss lalvage, 22.776 lier c«nt. jf iiwuiance, equals .fr.,llli M "!t04i. Fci!in fliis Ptatemcnl it uppearH tiiat miichininj was covcrcil cmly totlit' amount ol $3, r)t'.7.'Jl , plus uncxliaufited insurance in c^>nipani('S 1 to7 8uhft'(j\U'nlly added, $412.04. Under the rule reijiiiring coni|Knuid policiis to ef'iiiril)me to tlieir full liability upon any one ^iulijcet under their protec- tion, jiolieies i/nc to kcvvii, iiulush'', rovcrfd innchiiuiij an one of their 8ut>- ject.-f. to the amount of $ri,0(lO ; iience that amount must be a[)firopriateil to mat'hineri/, though policies one and seven are exhausted thereby. This will show that fh',' (iperaiion ('f Rti.K VIII., even witli iinexlian^ted in'iurance nr tiie amount ofiji4111.1l4 added, .still failed to furui.sh iiidemnit} hy the amount $i,o:?9.i:). *2ii07. ('om)ianie3 niinibered f()(i° and seven cover niarhineri/ 1^2,000. aiuI with ihe .(ther.s, $1,91S.«2, leaving a balance unexhausted of SHl.OH to be applii'd on the e.\ee9S of lobS on inatliiiteri/, beyond ^^ro futu contribution, or $40.54 each. UJ?OH. ("oni|>anieH numbered ^(/'i, tlri't, foii) , Jii\' nr\d sir, cover ma- chinery and tooU- ^.T.Otll), aii(»o'!! l,i«IOi , ^ftooi f,no! 5110! 1,0(HI ."iOO. mio 600 WW 1,IKX) 5fiU 'i,W)0 l.fWO l.WO Ool 001 00! 00' ool (ifii 00, 00' 9 i 6(H) 50O' 1 ,000: ooo . "if,!)' BdO' 750' l,O0i) 1,000 i,.'>oo'. T.'I'O, 3(1(10: 18..586J 1.33i! 7,000 fill, 1,957 111! 27.!HiO.' '..OOOi (!4.90i 2,r)00i. l,.-)(Ki' I.-Mioi. 0.000! 7,H6 79, 40; l.OOf) 1,000 l,4i'0 1(X) 2»I0. Ti will be noticed that companies Ncs. 1 and 7 were liable to asses.snient upon engine; but the ratable pro- portions of these iiolieie.^ having been exhaui^ted upon via- chnenj, they had notliing U) contribute upon emjine. Had tliey been us.sessed with other co-insurers upon enqine a re-a.sse8sn.ent would have been necessary which would have produ<;edthe same final result a.s above; and as the loss upon maefanenj could not be paid in full without the contribntun, of companies 1 and 7 to their fiM amounts, they must be thus app.hed, leaving the loss upon engine to be assessed upon the other companies covering thereon. f 860 STATEMKN'T XL. 2511 1. iMdin tlie foroi^oiuy apportioTiinent comes the contrihu- tioti by iinilliplyiii;^ tlui aiiunmt of carh policy by tbo pcriHTit- a,<^e of il.s b'iiliility upon oach ilc.in ( Uulu VHIj, priKliiciiig tho following FINAL CONTlUItrrioN, Mr Slmft'g I ToolR HniM-; J! Cos ...V";. Kiigiiir. Pull«ys.|Boltl'K.; liii'l |ftn ."W5 '^,;;4(i rA •i.W'.'t 10 1 ,44li 56 1,7!M 00 ■JMA 8T 1,7(W 58 l.t.-C S7 t.yvi (10 1,M1 00 i.r.ii (HI 200 001 95100] 400 001 1,067 5913,240 001 7.146i I,000i2l,8!(!)ti0 42 Mi' 203 ~W. 2S «7l 1,V xol 42 j<6| 203 7H . • 410 4*1 4'<« 75i 27!) 65 324 50' 419 4»(| 4)j6 791' 7fM 1,191! .i l.oooi I.OW! 1|I91| i.l9li aiiV-i. V,y a rei/ajiiuilation we get ihc losulLs of tliis adjiist- nient as compared witli ilwjird ami more extended ouo. RECAPlT^•LAT10^f. Total iiiHurfiiice SJ7,000 00 Total iiaymetitH 21,S'.)',) m Salvage to conipnnio.s ?;.>,1(I0 40 Total lo.«H $2'2,t;27 73 " paviiiciit 21,*^:tiM;o Exces.s ot' loss ov.^r jjaynicnt ?72H 13 Made up in oxcesfl of loss over iiisuiiuiop hi* ti'llows : — On iiiachini'ry S^^JH 13 •' whci'l -100 00 Uninsured total $^28 11 '•-»-, 1 I'tO dB. "K- f • 9 » l.iklO 00 l,14fi tW 1 . wfl rws •J,.'40 .Vl 794 '2.S!.;) 10 1 1.44ti .'.« 71Mi ' l,7!t4 00 ,1811 .. ..!l'.:!4;i 87 .. .i l.OOOl 1.7(iH 5H ! I.I.V.; 87 .flffi .... 1 t, '<»«•) DO ,iitii ; i,i!ii 00 ,191 ; 1 i.ioi (Xt Hi. l.lHHi'JI.WWHO jf this adj list- id ( JUO. 861 STATEMENT XLI. MIXED POUCIRS. LOS.S UPON A COAL-HKKAKEU. a«i:t. Tlu. fcdlowiiiK is an abstmct of an aclunl udiust- nii'iit of lo8Si up,in a coal breaker, whuro the jiolici..., ihn^u^U in (he main spocific, were very iiiiicl, mixof, afid the api,or tionrnent wa. further eoruphVated hy the excee.hn.-ly mixed manner m whi<>h the appraisement of damage was madV. Nin(. .■ouipanie.s eovered various items to the ai.iuunt of $22,..00, uniU^r two .sets of policies, as foUowa ;__ Numliers one, two, three, foicr ami five covers! a.s h.lh.ws ; — {The marrjinal Utters are for reference to Appnmer,' ^Schedule) I .... On .-ilopt. cife'inc liouMe, and all woi.d- woi k tonneotcd $400 A... " t,n> toriv i...rs..-powerl,oistin^-.„jrin..s dnn.m, chaiu^, wir^^ ' lop.' und allconneotod inacliiiTvy 7,)^ B. . . " ,i.c boilerP, eteHin-pipes, and all ccmneclion.. n.rslopo-oiiKine. . 100 .1.... " brcaker.irame, d.n.o., plan,-, tr-.thng, eng.nc and l.oiler- lioiiHi', and ail «ood-vvt,rk coniifcted . , 599 C. . .. " fifty lu,r«-power l)realier-engine, roller, screene, beltK. .shaft irijrund all connc-pted tnaclii,ii>ry ^q^, H.... « M/ve tellers: Htc^aru-pipes, an.j all connections fi-r l.realoT- *^"8"*^ • 100 Each company... ^■,,51)0 Five coiijpaniee—Total I 2, .500 2:{II. Comiianie,? numbered six, seven, eight and nine, covered a.s folhnvs :— a .... On hreakor structure, engine and boiler-liou?e SI 000 ^■•■' ;;""*^'"^' .'.v.'.'."* 'm b . . . . " .screens , . „ K plane structure ,,rQ D ... " rollers and <,;eaiing .;q„ G " gearing and macliiiiery ^^y H, . .. " boilers and steam-pipe connections 7Q . I^---- "belting '.['...'..y. 80 Each company $2,500 Four companies— Total $10,000 862 bTATF-.MFlNT XLl. TIIK .V1'1'«.\1.SKMKXT OF DAM.M K. XSitl>l« .V.s reii'lcrcd, \v.i.>^ ,<< I'ullcjw.s — tlio iiKirj^iiiiil Idtors refoning t(.i the sanio items in the several iiolicit'S, (ir ii.s uenily as they can bo asoevtaiiicti, iic ctVovt having been made t(t liavc tlie onlor of the apimii.'scmeiit correspond witli the .inatiL,'f!!ii HI 'il'tht! suhjicts n llic policies-. — A....7'«'() forty liors(>-fKi\vi'r iiiii,'tiii>,'-t'P|j;iiu'«, (IriunH, cliiiiiiM, win, rM|i«', .iiiil nil ciiiiiu'iliiiiiH %ii,i>{)0 $-1,^5(1 li....Si^- liiiiler?', t'ic.'iiii pi|pe,iiiHl nil L'oii?it'Ctinii>' inr hIojh-- (ii;;in..' l,(;no 300 V....,Oiii lit'iv horso-power cii^jiiiie in breaker i i ,^,50(1 (', I). K'oller rtiiij fit'iii'iiii.' ill lirenktT. (', K. Sctt'i'iM Ml I rcakcr (J, K. U.'llin;: '• C, (.}. I'lrtii-' ;;eariii;; ainl miwiliint'rv in olii iilaiie. C I'lillcv-H :iivl '. Tlie a[»poitioniiieni ol' the iM.siinMK'.e upon (acli of the snlijec'ts does nut appear, lint the final ap]iortiiinnient of tluj lo.xs aiiioTi'^' tin several ecnipanies was ho nutdc a.-* to pre- Hieiit the lMllo\viu.j' .statenicnt of CCiNTKllO HON TO PAYMKNT. COH. A Ib. 1 V. X). ■.m .-4 22S 44 .172 Ml •JfZi* 44 87-' 141 ■/!■* 44 ;i;j ,»; JSK u .)7l! ;t4l 'J-ja 44 l.-i!» 6fil 1,(11 1,^1 I.".!) 5Kl ia;i 4.'i ir.n ,17 ii»o 4,'i| i;,!i 57. i;{9 4,ij E. F., O. H. I. ,1. 2Kti 80 2Hr. 7'.) I'KG 7',* 2S« 70 'ifC, 70 l,IHK)(Hi l.mili nil 1,1)11(1 (Ml l,(KiiliiO 6,4;).l !Hi S,7!)8 (HI K. Total*. 1.... 2.... X.... 4.... 8.... 6 . 7.... 8 7(K) TIKI 7im 701 > TIHI 60 fio 1 (III 00 «l 9!t 22 09 w 91) n 09 21' 1.50 00 l.")0 00 I.MI 00 150 00 i.u9t; 10 1,»IKI(H) ' '4;mi 430 9oii •Jl.) 211' •.',469 nil 2l;) 'JO -JilMlOO 149 2r.: 2,iiOC J8 )4H 'J.5 ;.',ii»h2S u'.i jft' aii'w- "T !(.... 4,'J50 .... 149 jr>' 'J.O'i.s 2" Totals , LOSB...I 1 .100 300 ^,600 00. 1,700 00, 4,700 Oo! 1,700 OOJ 1,063 IKIj 20,«!i3im l,6(i.'i(W'34,2,)7lC i SI'ATKMENT XLI. largitiiil letters l»oli»,'i(f^, or iis Miig been iiiiule pond witli the 9onnA Valutt, iiamage. f5,o00 $\:iC>V) 1,(100 300 2,500 1, 7(10 I ,s()0 1 ,200 •I, BOO 2,200 IH.itOO 1,200 4,2o7 I O.f'2-t 1,000 4,026 s,7'.>8 i,t>c;j , $."14,237 ! updii oaob of jtortionnient of iiiidc liri to pn^- j K ' Totals. >"' 'Jl.t ^'l .,4f,0(K» ;■! 'J in 21) 3.4r>it!>!» t;i| ji;) 2(i' ■j,-i69 <■"■) Vlt 21;) L'O' 'J.f,!) '»9 (Kl| 149 2r> 2,0!tti L'S (III! IMIl IIU MH LT. ;>,l(98 28 H',1 JSi 3.(1* 2T i'tji l.ftiawil 20,ti'.t3tlf. I (Kii l,iii.i,'i iHI .m,j:>7ic Hr,:{ a:iI7. From tlu- foregoiny snitommit. (as found) w- ....lI tlu! li ill, . Winy / "''^'' RECaFITITLATION. Ivo "na.T u,, msurai.ce of ,?22,:;ii(), i„ .aiist.i,..,,, iiwiile uC *20,i,y;f(ifi^ I'll .if a losHof$:r(,2;i7()o W(. .submit, as more in accord with ance contract, the following tulilo of 2:si». tlu- .spirit of III,. j„s,n.. APl'UKTin.NMTKT AND OONTRIH.riON Compiiiiy. i 3.. 4.. S . B.. * 7(10 7(10, Tool 7(I0' 700 B. I I mi Km HID KK) HKI IiiMiraiice. Lose . fay C. "$' , 70(1 riKt 700 . 700 700 . ;iO(i HOO ;ioo F. ^fiOO) 6011, 4,700 4,2fiO ■i('0 4,7IKI 2'JO Ml 2(K) 2011 800, .700 3jmi 300, 4,700: 800 160 no !/)( 80 150 80 1 LW HO 1 tiOO 320 1 I .KOO 1,2(X)' . — . — —— . 600 .320 loo loo 100 lIHI 100 70 70 70 70 1 ,400 780 3W .IflO I «" 400 400 400 400 400 2,00(1 1,8I» I.OfK) I 4,020 '•■••H) 780 \7m ,1 If ("i(KI rum .'.(III C(i(i 1,0(10 i.(i(i( l,(l(MI I.OIKI 0.50(1 ti..')(Hl I ;i.Mr Alt ;>.Mi ittd 'oial. .«; 2..-XH) 2. .100 2. .-,00 ■!:■»<} 2,.VlO -'..iOO 2..-,ii0 2.. 100 ^..^jOO 1 .41111 22,.'-,00 ,(i(« .'U.-j;!; ,»00| 22 ,.300 8C4 LOSS KUILMS. tt:i*20> riio fi.llmvinj^' niv tlio [iriiicipal furmn in um- In the ailjii.sliu(.'iit of Iohsus. Tlii'sc, or otlitii-8 .siiiiiUr, iiii' I'lir- nislu'il by the coiupiiiiitis in iillcv removal 'IXid « •' " " (iwtii'r T.iM " •' " " lilluT* 2X\H 111. lil II KKIIS" K.ST I. M .UK-' 2'.\'Mi " " exteiiiioil form of TM'S " s|H'('ilii'ii(ii)iin 2.1-14 " lurm of lloiiip lii-iirunce Company 2.'M'J " icrtiticiite of rt'fi|)Oiifibilily 2.'i4j " " of ilaiiiaf;«> 'i^^4^ " " of iircliiiect 2H4t* J\ . I'uKi iMiN.vuY I'huoks 2;t50 " Ibrm, full coveimiilH 'l'Mt'2 " " no covenanl.'i 2.'i,')l •• " Scludiik A 'IM> - " " H 2;<56 " " actual, ill lull 2357 " '• liir Uiiihvay I'oiupany 2:i;')8 '♦ " uiiilor ri'-ii)Hiirunc(' 2S()7 •• " of claim aiiil awiiid 2;<61 ♦• " " auani, Form i 2.')Hf> •♦ 2 2;^(i(i V. Rkckii'th ^ 2.(70 " form for j)artial lo*is 2.'i7.'} •' '• " irulorsemeiit on policy 2;<74 «• " " total los8 2.175 ♦« " " caiicf'Ilution of |Kilicy 2"t76 •* " w)it 2.'!77 •* " draft and reciipt 2,'ri'8 Releask 2:i71 Oi'iiiH 111 use Ml iiiiiilar, iiif I'lii- »sscH. (I«07.; urn • ••■t* •••••• • ^«i2<> 2.«j6 2:nn iAM) 2xn •.';u'.' 2:i;i3 ver«l T.i'M 2:t:tf> 2;t:{G TAM '1X\H I'XMi 2:M3 I.IU 2:iH) 2Mo 2317 .':tjs 2.150 2;ir,2 2;):>4 2U'i 2;i.)6 23.07 2:!:)8 2367 2301 '>M',[, 23(56 2370 2373 2374 237r) 2376 2377 2378 2371 LOHH K0UM8. ^:«^i. r xorn^K of loss mv tfik A(.knt. (I«7I.) 86A Agency at Tofh.. I'lxwrrtiicu Co. of A l.H,,.c.urr..,l ;it tlM« AKOtmy or. tl,f. '^ "' "VltKocation (Mrei'i, i„«„, ,„■ vJla^o) Policy No A.nMMit,* ProjKTly (.'ovort'il 18 ilHy (if F^xpircK .18. Otl)Pr inmirnn.'.', c.incurn.nt or otliprwiRc (trivo iifinieH •ii.l nmouniH) Prohnblo imu.iiti! <,f U,»" AlnavH report at oacp, hv teietrranh In«R «r „ -H.,, invarlahly ,ivin, tho n^n-ber^X " othUX,: -''"'""'''^ i ^Hvin, wl.erl.er loss i« partial or total ; and iC • 1 T'T"' one ofthese Manks by lirnt n.ail. ' '"" ^"'^"^'■''"'•s aaaa. Thi.s Umn asually covem a shoet of orrlinary lettor paper, with a proper indorsement on the rev.rm. .ido for i\l ing, and is furnished to ug(,uts among other office supplies. E££ 866 LOSS FORMS. II. ArntAISERS' BLANKS. (1.SOH.) S^tSH. 'ri!(>3e blanks are very important to the under- writer; and Ixiing conclusive as to the Duutxiirc of ihniKKjr su.s- tained by the articles sulanitl^d for appi'aisenient. the in.sured'.s claim for damage thereon i.-i limited, within the ternib of the policy, to the sum named tlierciin. 2:(2I. FiM : Sl'HMissioN TO Al'PiiAlSEHS : This is the agreement ut the parties in interest to .■^iiliinii the matter of damaf/i' to the ja'operty, as requin.'d by tiie condition of the policy, to certain ])artil^s therein named for estimate and ap- praisemenl. It slioiild be signed by the claimant and for the company I)y its agent. ti'.V-I^. This agreement has reference solehj to ihi' parties to hi' siki'liil Its appriiixi'rti. It is not an agreement to submit to an ai>praisement of daninge to the articles, as that is a stipu- latinii (,if ihe policy, and a condition pnjcedent to the i)ay meat of the cluirn, when an a[)praisenient is demanded. 2;i'J<». I'dILM {)¥ AliKKK.MENT I'^DK SUJiMISStUN TO Al'l'RAlSKUS. Tr (s jiKRKHY AiJUKKl), by (if the first pait. aii'l the Fnu: In.sika.vce CuMrANV, of tlio Lily of of till' M'cMi;.! |jiiri, that aiul (together \\ iih li thiri.1 person to bf- chosen by them, if Hecef^sary) nhiUl estimuie iiml iipjjruise at the true easli value thereof, rhe damage caused by fin' (uvf^.'c) to *\u:l l>ro)jerty beloniriiii; to as may he .specilied in tlie accoiii pauving (schedule; whicli estimute and apiiraisemenl s\ibmilted by ihein, or any two < f them, in writiiijr, an to the amount of -ncli dama>;e, shall be bindiui.' upon luilh partll■^. li is umlerstood that thip apjiunitiiienl lias no reference to any iitiesnons y policy No of the ajreney of said Conip'inv, at as may liave bten ,'-aved in n damaged ijou'I'- tiuii. iind •'iibniitiel to the aivne-naiiied apjKiintees for appraisement. Wirxh,-- our hands at this day "f a.d. 18 (t'lalniaiil i Bv .1-ii:k Ins. ('.., .. Ajii APPRAISEMKNT SCUEDlLES. ■'t* ^fCOnd: Al'I'RAISERs' r)EC[Al'\Tlnv / '"';' ■■ "-7 -,] .„t i„,p„,.u,,„v. „K, , , 'i ™:; ,:.:*:■-"'■ ":|-"»o„., in tl,. ..,,„va«.„,.nt of dau,.., 7 ,f' "'"' ■""0.1 t„ tL..„," To be si.,K,I W all „fh ,■"":''■■' ""- ^-^..-S. K0„,, OP „«.,,,,„,„, ,„„ ,,, otiiteof Coiiiitv of HS. with stw.M,..,ania,i. J :::::• :;:-;:;::Vr''''^^^ actualdanuigc. .ustmn.,! In- the proportvof ' ' '''''""'"^''""^^"t -^f Uk- by (h.; and .aved i„ a dama...- 1 • r • '*'" ^"-^ ''f" WiTNK^isoin Jiar.d.., t)i,.s ,i,^,, ,,(. A. D. 18 ^al,,>u•il;ed ami .swan, l.eroro „,.., H,is day of ■aised, showing the e.sti ami ia the aggregate. To b, sigae^lTy ^t\."l '^ ^'- (or y. /' . fivDr-LE OJ; iNVENTOin- of ail id... . praised, showing the e,.t,imMf..,l ,i.. ,, .. "^^ '"Li^.k-, ap. ami in the aggregate. clo.se of the in veuiory . (1 7.s;{. ) e^tunated dam,,ge to tho articles singly y t-lu; uppraiser.s at tiie FORM- OF AIM'IJ.USKRS- SCrfEDCLE A. Selipdule of pn.noriv nf , , ,' '''^"'^^'^•'J ly .A-vOm^..^ ''■»>' f'< A. I,. IM at tli»d.ui)a-e ou vvhioli was aspes,.^ed by ^"'' -•- -Ai.pnu-ic'i-.s.di) iho on tho ..Hnd day of CI. I- i.Hlheou-t.)iiiai-y ('..,-11,; tli A D. IS eoncbrlow, Form A,.. .,u.re.,,eo;ric.-, k 8G8 Ari'KMSEMF.NT SCHKDILES. !2I,'JJO. Ailielos without »]){ arcTit ilniiiHjieare toV^e conf-idcml tniinjiirpil and -ilioiiM Mill lie iiiclu'icil ill tlii-< si'liiihilc. IF n,u\ siicli ■'liuiiM \>o luiui'l tiu roil), the a|iiiiiiis('it- will ctitt r liitir insU miIiio n.s inuiul, in tin' lir-t Ciilninii. and iiiKr llic >nnn' ivincnint'* m the sccdiid colMinn. I'liis liluiik niu?t be prupi'S'lv tii|i'> din ly tlu' uiriit-r, icitha list nj' Hit ihiiii:il nriirh:.-', showing tlic i|\iMnl:iv. kind, and (itialitv, iiul not (lie vidnt' uf t'ucii, in ilu- Older of tlip insiiiaru'e. wliudi will ilnis nitudi lindlitatc tiie ialiors of li e llji|)i-iiHers nnd adj'.istrr.-. The ajipriii-frs will detcriniiiC tlie actual ca.-li vulnc (/t'f'acli ailiclf a> -ouiid, and a.-^>e>^s tlie dainagc at a ih-fiiiile. xKui |k r vard, d(.i/en. ikhiihI, lin.-lu'l oi jiallMU, a^i ilie oax-" mav rf(|niiv, and enter tlie same in tlie a|,[jiii('iiaii' MJnniMS. Appraii^eiiicnts li\ ]ii'i(.;entage, or In tlip liiniji, r-lii'iild if llie i'.\c( ptiiri, ami not ilie i-tilc. (itii.d:- darua^'ed Iv leninval vi\\\ -iixuld Ije specilied -e|.ai'atidy. **.'?;?I. crUiis ^du.'l^ih: tlanv- arc .sevci til /o( //<,-■•.■ — 1. FoiiM A, fiir the owner. 'i I'.'UM I'l. fur '• ;xti"d> he'd in trust or on cotninif.sion," or ''on (•■torasp." ' (ll'.>7, 17»0.) 3 FoK.M C. U>v " i:o(.I 'I'lii; lilaiik fniui (d' llii.s fchnhih will lie tlir .siiix; for t'itlji,-c of lilt; ;il)()V{'; llic iliMi'i'iiici' will In- fHiIy in llii' lioadiiig of oach. Tlii.s luliil ihiiil: IS ii I #71 ;J0 | |t2 7o I $M m) 5 Siik Hal- 1 nil I 20 nO jl 2 (HI io U(i .'. I'ii.ii (.'l..tli (^.atM. ti ,)U i r.) ;■)() ,') (1(1 ' y (10 ♦in (lall- D.mrhi'ii Wlinkv. 2 00 10') llw, Tllhle Hiitter.. . . .iO 2'' yilfi. lEng Hroadoloth h oo 120 0(> ! :w 00 I 100 00 #;f»u 00 2 00 120 (Ml 10 10 (Ml 2 50 50 0(1 *2o9 oO APPRAISEMENT SCUEDL'hES. 869 ,"' or "Oil Ptora.2e." ' iC'l ['"I'ties whirh Appriilsed VbIuc. f,. V(l.<, Galls.' AK^te. $2 75 I ICO .)() i; (III 1 io uo ;j (Id ' \) 00 2 m i 12(1 (Ml !0 10 oil 2 oO oO Oil ?i2o9 yO Sign,.] by nppvHimv, at tl.e oral, .,,ul ,|uly .sworn t,. 1, f Tl.e dillerence between the " aggroj^aCe vain. a. ...nd " ,-. i ^f- aggregate, appraised .a^u., i. the .rl I,.ss T ,,, "' -n.e.Ut Aon, the ordinary for... snb.titutn.:';.. ^ ^" ^''^^ I'-'^lunniary proofs, whn:h i. present value. '' I'Oli.M U. ••'''>01.SIIKUMNTHnST,-(m.0XC0MMlss,uV' OR -ON STUKAOE.'" -'.- an,l sole owner.,,.,,, the naJ:^ n-> \rt:Z '"''?' "'"" "" which pr„,„r,y «a. insared bv (h ^l" "".'hV T""! ^r*"^'^^"^^- It* Kiroiifiv in ,SVo//.vT///.^ ///;•»„;.,„„ I „■ ' fi'^""/". '>/e'A./(, issued ;u .i.-..e,n, .ire o,. the ^^''S t; 'V' h' ^TT'" ^'^'^^- "'' "^ —esse,! hy 7..,. ,,„,,: 7Vio,«a/^. a;!' t;^;''' "'"" ^^''"' The .■omamder of th. .chM., as to the fo. ,n of ..//., i, h,. -.ae a. Icuar A, the .ten.s i,en,g properly .n.erted. '' FORM C. •' (J(JODS SOLD BUT NOT DELI V EHliD/' OR "NOT REMOVED/' jr.5M>.) /^"/''i/— Ihe same as tor Forw 15, I20.">, 'Sutn,i:r.Eofp,-o,.erty w|,l hv Amu, White . f r . / ^;,:'..^:«;r:/;::::;;:a,-::;;r"--"i-^ FOH.M I>. "R'K ACCOCVT 0,- 1VII,„| IT „AY CUN'OERN " .''VO Bl'ILDERS ESTIMATE. KOItM E. "GOODS DAMAGED JJV HKMOV'AI.." 2!<:{4> ('o}ii'i'ioii 'if Ihf ;;.///>)■.—" (iootls iliiDiiifiai by 7<'W(»ca/ nm.-t tie -|Hoi(ied sopaiatel>-."(10SO, 17Si».) 1, I'OR THE ow>;£n. tititn. SruKrni.K of pro}cr(y of Anins White, of Srr.ltsrilk; Jl}iiwh, m.-invd liy the Glo .' Firo IiiHiirunot' Coiii|iany of Vitiinnulh, Kcntueky, iinler policy No. l.OOO, i.spueil ul i(N ajxciicy ar .l<,iiisi-iUi , Knituclcy, aul •liiiuiift'! Ill/ n'/ifval from his stori.' luiil'liii;,', cto., t'tc. 2, Fur the ruoCEKTY Ol' OTUEKS. 2;$*i8 . SortKtir i.K of the property of , held by .1 i)i>,s Whili, oii coniinif^sion (or in trust, on storajri', 8uld but not dtdivrred, etc., '■|i., as- iti thr appropriate pfcoediii;^ foriwi^), Viwd damaged hij removal ivoiw his ritore, etc., etc. IIT BUfl.DKlt'S F.STLArATE A^\) AliJMvEMENT. tiUtilK Tin's is not u <'oiitia(*t ]ii'(t}H'i\ i>iit ;i .^iiniilt' piopo- siliDii of the luiiliitT, ili;ii lie will, iiiidci- cmtam jirovisioii.s, (■(iiitiacl. to jfbuild kv n-yjiiir tiit ])rt'nus(.'S iiulicated, plans nf and ypooilicatious for Avliioharo addfd, sftling forth tlie items of llie eslinialo. ; ati'l in ovitlcnce of his ability to fulfill the reqiiire- nu'iits of the contract, slumld one bo made , lio oives tlie certifi- cate of two or more prcmiinent, worthy citi/ens of his town, vouehinL; for his responsibility. (1717.) 3:{tO. Should the jnoposal be accepted by the company, a ri'oidar < diitract will be execut(Hl. Should the bill not he ac- ''eptey either the company or the insured, a reasonable coui- jicnsation should be aliowod for the time and labor bo.stovveil upon till' plan iiiid specitications. (IHJJSK) I'ndcrthe new form of NATIONAL Hoakd policy, it is made the duty of the insured to furnish jilans and specilicutious, wheu i.alled for. builder's i'.STlMATE, 871 rcmoral nni.-t be ^.«tl. llus form ofblank(orsomothmr; ofsunil,ari.„,,,„t) prop.,.ly /llled, and signed hy roHponsiblc parties, Lecon.es proof conclusive a.s tn tho oxUmt of damage or loss to th. pr.nus.s nistired. rii., amount named therein in the limit of tho r..nipan y'^ liability thereon, within the terms of the policy. In ease of a law- suit It is a 8tr.m- point in favor of the company, and one whidi vv-ill bo much .strenol boned l,y the certificate of tv, o or more fellow- citizens of tho builder as to his ability to „ui,kc ...od tb. stmu- Jation ot his estimate ajid agreement. ti:Mti. I„ view of the importance of these form,-, in th.- insu- rer, their production should always be insisteil uj. on ;.,s a sub- stantive and integral porti m,s of the proofs. The italics represent the blank spaces in the printed form. 2:i4tV FORM OF BUIbDER'S ESTlM.vTE AND AGKKKMENT. ""^ '■'"'K bsi'UANCi: COMPAN-Y OK Tltf: OlTV OF tateu leu..>,lran,a,m^ wdl ac.iua.n,,.,! with th, /,,.>W/;.,..,) l„.,i.l i^^ aller .s„c > oon.racl .l.ail i.ave 1.., ,|nly ....utod, ,n a. good .t lo a d and Mpon .a„„ phu, as tl.o original building. „> ac.,.rdanc. wdh U.. „lar « and ..p«..,u:at..nshorew.-.l. submitted, (orthoHumof ' ,n ...g .lu. ri,h, to use in rH.ndding au.h ofth,. .n.tcr.al. of Ibe on dna! ! n l' " a d pya b. to .,s. (..) „,„.„ „u. oun.plotion and accoplance of tb. buibliu , by tb.. saui cr.npany, or it,, as.signs, and not before LiUf'/jiiiu of ribvuarij, s. n. 18... In presence of Niiiroi.AS TiiiKin'T, STfVVf.S.l.NT (ill.f'iiiiiHT. JoiiN DoK, Kiuu.iRi) Hoe, 872 builder's EsnMATB. 2344. I'LANS AND SPECIFICATIONS JIKI'ERRKI) TU IN THE FOHKGOLNO ESTIMATE AND AUHEEMENT. Descrivticin ov Brit.LiiK(j Briixii) : Size on tlie Ground, Main Building..., " -' " Win;,' or Eli..., Materia! : Rriok or Frame lleiglit alHivt' the (frounil , Number of Storie^^: Mam Uuiiding Hoof: Tin, Slate, Cotnposition, Sliin;L'le. Ilc'vv tmisilipd Coiiditioii fif to llejMiirs Value uf Material Saved— Agj^regate, $. Matkhiai> Nki'kssai'.v kok Rix'iiNSTiircTiov : ]auuli'>r : , ft. TitnUer, ft. Siding ft. Fioorini.', ft. Sliingies : Doors : HlindH : M.isonV Work : Brick . . ..per M., laid. Plasterin>r : k<|. yards jier yard I'limlinj.'; .ml Glazing : ITardware : Lock.s, BoUh. , Screw!-, Nails, Butts, Hoofing : Squares 'I'in, Slate, Coin posit ion, Labor : , 2;t4o. CKl.'TIFICATE OF RESrONSilUI ITV OF THE CONTKACTOBS. Til'' '.indev'-igncd, residents of Jirowufivillc, fcunsjiivaiiia^ an «xtoii«leil foriu^ of spi^ci- iicfitintis ;uv ill hjc , soiDi.! of tlicni cyrii_;hri;d. Hut tlin <,'ist of thti iii;i1.ti:r is lob' l'oiui hs compi'elii[i-;ivo a.-^ till,' jdans and spticifioatious fiii'iii.slud by the insunjU iiuiy jyiidcf iii't?i.'ssiry. APPRAISAL OF HI ILDLNG LOSS. T(J IN THE sT. loririir, ft. viird. position, Y OF ((,. nn vivW iic- fiimf <>'ilf, rti;irlcni''ii, and ly uiiiiertako. > l2Ls'n vlay ot S' KS. ><; WORTHY. n'« of spoci- il till! gist of -, agreoinont ic \<\n\\> and 1 tii'(?i:!s:sary. 873 a;M7. Where a simple nppruisal nf Hie (lamiiiras is ro.iuired •■'^ the j.nty, a ecxificate .somewhat it, the folloNvin- font, wouM be satisfactory ; State of County of ,^,_ [-"f- Wc., t '' '"'• -„i<.,-sig,K.,) practical baiM.rs (or arclutect.>. ro.„li„. i„ ofo,;;i„d.;;.;t^'7;"'r"''"'''"' 7" '■-« i'-Panially, ^,,,1 ,„ ,KeW tlK-tUM r I'Hi.t, e.t.n,ate,i tl.e ,u:,lkc1 oa.l, value, an it .t.,od at at 01 til.' fire hy which it was <|.-lrove '^'7 b"i'''i''J^' ^^itl- root; miuat,.,! by n.uranoe under Policy No. . ' , . (Renewal No! ,' ":.::::. tind liii^li insurance Company „r is.ued at it. a:enc; a, dan.age,! (,,r de.trov..,| , |,y ,i,p ,„ ,,,„ ^ ""^ Ti.atneithor iuiniK' nur s,.v,.r..llv . ' '^•••• rectlv ,ntl„ »•,,! '\''yb' l-av.. we any u.t.re.t, directly or n.di- niariiy mteie.ted with or ndated lo the iuHured. bu ldinV;!;7''n''''r"'"'''/''^" consideration tl.e age and condir.on of the Lb. " t ;;1 ^^"- '^'""^7'" -'' -'-. - ^P.--e the damage Dated ifi Sworn and .subscribed before me, chis ,iay of. Appraisers. \^.... • /'. or N.P.) ...M.S. Where the btttlder who erected the buildn.u or the architect ut.der whose inspection and estimates the b„iM,„<,was erected, are at hand, m cases of partial damage only, the follow- ing, 1)1 use m (..'hicago, might he satist\ictory :- To ti ARCHITEtrr-S A PPRAI8AL. • Jni^uiance. Company of the (^ity of . State of. The under.igne.i doe^ .oleu.nly swear that he was archaec tor bndder) ol tile hiiildincr No , , ., ' It was l.udi A. ii. IS ,. Material riiickne.ss of wall.s in basement 1"' ^tory :.,i ,,tory. •■''' " -ith " . 874 Ari'U\ISAL OF m ILDING LOSS. Ileifrlit (H'eaoli HU)ry : Size oil the grDiiinl ■ 1ft Htoiy 2(1 story ;inl " lih " Nil III I HI' of ctiiirwiivN Orig^innl ix>t iin.l timl lifter hiiviuiii; tukeii into con^icliration tlu' ngi' iiinl coii'liiioii of ilio pri'iiii.-('.s pivvious to the lire of tlie ami making proper dwliiotions for wiiIIh, nmttriulfi and portions of the buiklinj; -.aveil, I appraii-e thf iliuijiisre to be $ SigiK'l uiiil swoiij lo before me this day of a. n- 1?..,... 3i{|!l. The f()l1(ivviii>,' furiji is in tiso by a lai^e New Turk Citv iillicu ■ — VU;iLL)Kl{ S FSTIMATE. State til'... Couiitv of. \Vi', the ii'ider-ii^Med, dn •.ileir.iily ^\v»ar that 've .ire |>racti(iil b'.iiiders resiihn^; in tiif/ ot : tiiat we have acted witlistiiit iiii|iartiality in estimating the ucttial cash value .:it' tlie ftoi') buiiiiiri;r, witli , nnif, nitnate propel ty of and insured under Policy No, of the Ho. MK Insir.axce CoMiAW oi- Xkw Yoiik, issued at the A ;i'eiicy, and by tire, 01) the day of !'<..., and tliat kavitif/ tifkrn hif'i foii-iidKrolion t/if tii/c, citniiilidn, ami nil niaunt.-r cf'ilipre- riittidU. hi) wi'itr uiiil tear vf the previines, indwiing rrncked and d'i'crlifc n-atl'-'. "Id iitiifs, etc., at the breaking out of said fire, and alw the value of tile walls, materials, and all (Xirlinn^ of she building .aaved, and ninU j, renter deitili'tifHx t/itiritrr iinii'rl licii.iw and 875 TV. PRKLIMTXAKY PliOOFS. a»r»o. This form of blank is int..n,i.a to omhmeo all the roqutrement. of th. cnclitiuus of th. policy relative .0 a .lain. or loss, setting forth, in a oondm.s.d form, though in ,.,M.enl torn.s only, tho facts requi.it. to suhstantiato snch claim hnt rj'lyu.ff upot, the several " vonchers " and .supplcn.nta, v .uo.fs '' tliorein referred to and '■ made a part thereof ^.r thJletails as oxplamed under these several !,eads. (IH«a. |,H7o! a«.3l. huLsnuich as the prelimivm-y proofs •a.xo. h,.t a re- capitulation of the results of ihe several tacts arul figures of be vouchers, it is scarcely necessary to .n^^est that the blank spaces „, the printed form shotdd not be tilled untd suck results have been fully and accurately obtamed The sevei-al companies furnish this ibrm in case of loss under l.e.r pohctes so that, while uniform ,n their ntain particulars they frequently differ in the .,u:,de of arrangement Several dilferen. n,rms, in practical uJ:, are hercu-.th pi^. sented. The custor. ary blanks are HUed in italics. 2;;o2. FOKM OF JMiKLniJXAHV l'Ji(j()F F,.i; owxkr. (WITH FILL CiiVKN.WTS.) , ' '"^ FjKt IsSL'KAXfE OOMI'AN r OF f>tan- of Sno Hamiitthire.y ' (ciinty of SfnitfoyJ, i He IT KN-ows thai on this 3(>th ,Uiv of J„nn,m, 1 n l- i . ti.ecityof.. iaatti.e.... . i.,„, [vsiK.iNrK Co.mpanv of State Of ^^^^n^;:^;;;:^^-;:;^:!'^:: t.. M,o,;:,,io,::i;I ;;'/;,:;;:;;: ;7;::;;:;™-^ 87t) I'PKMMIN'AHY PnOdFS. No. C'l TllC |''||(C: lv-l r^ANTK C(IMP.»XV 01' I lie fiity of ,,!-( lii'ivliv iictirc MnrauUii, Th,,iiij,.xiii>, X.lf, apiiiiht Iom or il;iiiiagc l<)' tire to tlic aiiiouiu- 0( tn't iiti/-lir< liii/ii/ii,l '\o\h\vs. '■fill' \vriiM'i\ iioitii'ii if tin- iicllcy to bi' h-ni given In full, witli coi'li-n of all In dorHi'iuoiits, hshIkmhi. Ills, or iriiiisli'r.t rmist'iitoil lo liy ttw i''irii(iiiMy.) Whioli Hftid jidlicy wa» Hiiliscquently cuiitiriiuMi in f.in''' l^y renfwiil No. 97. until ihc 'ICith (lay ol' .(/'(■/7, a. i>. Irf, (it, noon. TliiU, in inliliii'/n tvi'ri'(i by suid pulicy, tljiM-r v/n>' Cllltir iiibiiiitnci' iiiuile tluTOou to tin; amount o( /ii'i:iih/-liri: hidiilfeil 'ioWnrhi Up" irt |jariu'iil!irl_\ ■•in'ciiit'il in tiie uoci;iii|iiinvlii^ hcIumIuIc liiarki-il A. (Sljoulii il)i>ri> li.' " i>ili('r iiifiurniii'C," upon :iU op- nnu pnrHnv 0/ Ihc 'iropertii i-m- brnci'il Ir thi: f.ri'i'fs , il miint t)t) *>•• stutcil in lb« si'liejiilo .1, lufoiioil to.) TliJit on tin- li"'/ il.'i\ of Juiiiitiii/, ft. II. \f'y a rtrp ocLiirnil In- wluc}) tilt' propertv -o iii~urti| wa^ iluiiia;.'i'il to tlie atnount of l/inc thuxuiml ni'ien 'nniilrcil f/zc/ /;/>// .lollars acitial vaiiir, an pot t'orlh in tliP .^tuti'iiicnl.- aii'l the ^evorai .-iiIh'iIiiIo.s ami {lapcrH hereunto annexrihunl t'iiniiiti>; a ji.u'l nf tiii.- I'Vi.ii, vliiili llicv (|i'|i.)ii«nt,v ilf.claro to bt; a ju'^t, tnif ami ('aiili)'ii! acriiuiit 111 til'' l".s> ami iainagL' tiicrcon, ami tin* (;ircllm^tallcoii tlui pr<.|if.rty of ..tliers, i, f., lielil ii< trui", oncoiriniit- sioii. oil storuse, 01 i^olil but- not ilflhertil, fXc . < ic., il ^llOlllll t.i' Iieiv ill, or 1,1/ thfi insured uf a ijrorery .stoii llie.Kec.ond floor bi/ E/ias T/iniiiiis, J'lnh ^- (rr'ii/, iinJ KUnid^ji' Knitjlii, iis latri/frs' "Jlii:(.-<, aud form. other purpoK'8 whatever (SUoiilil th..iv hiivi been any i'liaiij;f of icciipaiioy sltno the policy «■»(. talo.'ii "uf auoti clifinxo ^bouW bp fully noteil.) Thai the (ire originated. /row ranse,i nnlaiuwH, ?« (in adjidnlng huildhuj. Of th!» cau."!' tie kiiKwii, or Hugpooiod, it clioiilil bt- etarcl, as the . ondliion of the policy requiri,» full information, upon this material point, from tlift insured.) PRF.MMINAUY PROOFS. 877 ■ OMI'ANV of iho I, Thi,mi>.i(tn if." th(< HIDUUht, Of C0Iiitt8 of 111] ilk ')■ veru'Wdl No. tlit'lP WIl.'--— Hiidreil ilollar.s) rknj A. the 'ifoprrtii >>m- .) rrt'il hv \*liK;b ■^fittiiiicnt,- nii'l ■iiiirif; It ji.irl nf e mill t'iiiilif'ul lies coin:ei'niiig nniPiiiatply pre 'ii1ii-fh-r 27-100 I, containing a > fire, Hololy (o no olhur jjiirty fru?t. «-.iicoimiiifc- ■1.' 8IUtl'v rt.'iiowul No U' the Ill .h.y of IH. .),a pint of ^vliioli if ill ilie followiipji worils uiiil li^^l^<•^■. — N,. Dal.tl 18.. Agniiisi Ions uiiiI tliinm^e bv lire lu iln- iiuiomit rif 1 1. hilars I lli'ri' li'llo* tlui exact wordk of tlju writttiii imrtl'Mi of thi' i>ollcy.) There WHS other iiiHuraiiee on the property as follow- :-~ (llrro Klvi' iliH iitiimiiit of ctlwr iiitiiiriuii'H, If iiii}', •'ii fiinli lli'in «f Iirf>|iirt>, f Mn.ro tl.iiii (iiif, iiaiin- iif tilt '•ompiiny. wIhmi i-otii 111 flit ; if not coiifurrciit, im niitli'ii |.iirt ol ollcU jKjltiy iiiiisl liM copiid 111 lull Sf' Kclieilulf A ) A lire oceiureij on llic Any of 1^. •. I'V which lo'M mill 'Iniiiiv^e wU'j Hu^lHincii hv llu' jiropcrtv eoverv.l as -^el lorili in delail, mill ^^llM■ll Aus the :ictual cunh valui iit tlie Mine ol ihe fire, -ee -eluiliile J}, hereto aiiaolieil, t'.'ihe aniount of ioll,irn. And chiiiii of your coinpniiy •iojIiirH. The wliole value of tlie property, M the time of liic lire, w iiji dollars, as set forth id Hchediile H, nereto .iiiiiclit'd. '1 lir jiTopeny helorij^eil to , and no other piirly or l>erK>ii had any iuterect therein. 'J'hero wan no other inmiranee tliaii licreiiihrJ.ire .Jpl fi.rlh; nor was (li^re .my cliiiiii." in tlie uce.ii|ja:ioy of ili,' preini.-'e-< '^ineo t!.e in-iuran'e wriH etfecteil, exci pt ar. hereinafter slated : — The tire ori,ij;inafed Any other ijilorniation that nia> he reijiiirinl will \k' furnished on call. U'lT.NKss.. ..hand. ..at thi.". . . .duvof 1^. . Pekmosvm.y appeared ,,who >■) known to in' to '.c the .-ignei o'the Con goin;^ stfiteineni, :i(i;i made oath to llie trutii of the ."iunie thin d;iy of ,18.. '—'—»> Before ine, {^'^^'■■} 7. /.. IMtOOF. KAILKOAD PHOdKS. 2.*l*ir.. SCIIKDIM.K A. m II your ftj^fniv at liiiucil I'V rtticwal . .. 18..), a part of lara tic iioUty .) 1 (]f |iro|if rt> , if more cut, iiM wiittcii |j«rt ... 1*^. ., Iiy whicli set lorih iri Jt iMhe ./„/«.,,„/ ,iv,,, in ,|k. pr..lin,in..., ,,.„.„„, „„„„„ M.,/M/.M,A r. c, M,I.. .howin- th.. .•o.urilmtiun ofead. .,„ the -iiiiic vviiH iji'icrininwi ary ppoofH, similar to the several jiany.Hnil how To the. '2:tr,H. Fuk.M OF kailudah nami'. FiiMinince t,'oih()aiiy. Of. ., Treasi TU; IT Kxowx iha( [ „ ., , „ ) treasurer (ui t,tlwv ilnlu .ie,.sean,, .ay, .hat a ^r^ \'.^.r;;i::;\^X:^^^^^^^ ^mea.lat.he,oe,.l.y,,.,,,e,,..,e.che.nleherl:;l: I'i^^^^ Uehlio\ei|) to ilio amount of ih.ll.uM i,. i.„i,,„ schedule hereto attached, n.arlce.i B. "' '"■ """""' '" ''^^ Ami I further -lepo.se a,.,l say, ,l,.u .aid hre did not on„na.e from -u.v design or procurement on the part of said u , Company. Axn that at the nme ,he a.ore.a,d fi;e ^^eunvd tli e .S ,, , ,,' ,, , " "** '""'^'S hy the in.surancecomi.anies H d , he several sums stated in the schedule hereto a.inexed, mar •! V "■'J "-l tl'-'e was no other insurance suhsistin. noon said pronern t ,1 I time ot ilie occurrence of said fire. P'oputx ,.t the ■'■'"' ■'■""' Huilroad Company do )„ rehy claim of the said u ■ pro- ,.,. ,„, .pany being |,,|i,^r,. J-^^"-'"-' at this ^^f^_v Signed, .,, ■'■ '"■•••• ^"'•'■O'l'i Company do Ik rehv claim of 2 .;.o.anee Coni^oiie. their several pro La propo..,.,;,:!:;':,:' ™';,nh "■■ ''^"'^^^' ;^'^P^'-^<^'"-^i"l'- annexed, marlced die ^"T""".^''"'^ Comp.Hny beinc ,i,Ji,... 18 Treasurer. 880 KAILIIOAD PROOFS. State uf •)„ ^ County of / I'er^dnal l_v appeared Ijefore mo, tlie above described known to nie to be the Treasurer of the Railroad Com- pany, and niJide oatli that the t'orefioing wtatenient, as made by him, is true and correct, according to the bent of his Icnowledge and belief. {HI ■ AWARD liY THE ADJUSTER. X. P (or J.r.) iitini}. This wti.i, ckutiky that I have made careful invoptigafion into the eircnrnstance.- attendin<; the (ire wliicii occiirred on the line of ilie Railroad Company, asset forth in the foregi.)iiig clain\ and in the Pch^t'duleH thereto annexed, iiiarked respectively A, B. C and believe that tlie paid Raiiwuy Company did 8ut>lain loss and iliitnasie to the amount of dollars in oorif^eqiience of paitl fire, and recommend the payn\ent by the Insurance Company of the .eiim of dollars, being its riUable proportion of -aid los-', us ,*et forth in schedule marked. . ..annexed. Adjuster. Dated at this, ,dav of.. .18.. Tt is ciLstomary, under railroad policies, to omit tlio inagis- trate's ccrtiticute, an not relevant to the occasion. 2:{<». and C, are the same as in ordinary proofs. Schedule A contain.* list nf other insurance. " B i.s the staltnieni of the loss, with voucher.'?. " C gives the name of the place where the tire occurred, and such particulars of the los.- as may be iuiown- rniuts of this kind, where there are so many companies interested, are usually printed, and served upon the insured in tliat form. CLAIM AND AWARD. :2:S4»|. Where tlie amount.^ ivv, small, less thano)(c hundred dollars, it is customary to dispense with full proofs, and pay upon an award juade by the adjuster. A variety of forms aru in u.%0 for thi.s purpose, some eiiibracin;.^ a claint of the insured and an aivard of the adjuster, and others oenig simply the award, reciting the circunistanees of the chum, liotli classc? of forms are here given ; — . . A'. P (or J.r.) CLAIM ANK AWAin). y^, '-i.'tOa. FOKM OF (U.AiAl AND AWAIJT). Claim. Wir Tl,m Conn i.^ ini ,o 1. uh-! uliei il,- dai.o ..xoecls $luO. OK rilK ('(TY vy This ,v,i.i. ,^JKT1FY (ha/ f am insiuvl l,v il„' ,■ Insuraijoe Company of the Citv of ,„ , i " ' \'l-.\ "*' :;i"r;-;::::";,;""™""- ™ "- ■»■"»«-' •» "- '-- - «,«». :^::: That I ])ave Husiaincd loss and daniaff<- nml.T tl,o on>i .-)• • . , anu.u.. of $.70 bv fire, which occunod on '^mlJou'^T V •tW, i'H It. proportion of said losv. "|,im.v ti,p ,,„„ ,„ *;ii- Ot»,,„ /;//,/K.. I have luadt' a .areful examination of the , irrn.n<.a,„.„. ., • al.ove-na,n..l loss, and tind that hr Jl^ Z^nT , f "'^'"S j"^ .ne..;l...,nj,.ntof,...00,n,f.^ lit Mi \ K SMp-n^ .|_^,-„;' :'ated at i?o.m?/,, /„,/., „„. Vlu, dav oi //,.,.,/.,, ,8 ' nnthesoeo,tapu..Msali.(:,.rthenfi...v,,.,nan,o. at.d ,,he (.uoiiiit of ofioli CO insurer ;— <'o., of FIT 882 AWAKl). i:;U44. KMKM OF RECEll'T. $90 0(1. KnSSVilh: (>., Dfrfmhi-f \>, 18 , Ueci'ivc'd of H. K Smiili, ai^cut, ;i siglit drai't upon the iiis>utance Company of the (Mt_v i>l , (ur llu- .-^uni of ninety rlol- lars, wliicli, wlu'ii paid, will de in lull saiisfactiiin ol' '.ill claim arising for loirf, UH h( I'cinbi'fori' rocitt'ij luuii'i' p'lUcy No, 07 < rcncivul No. ifl'.)^ df said cornpaiiy, i^sned lUllie llos8\'illi' ai'i-ncv. A duplicate of tliis ri'i'i'ipt Iwivii.-.' Ln'cn wriucu and .Sij^^iunl iipun tiie poliry (Signed). Kkmbkaxi Wilkiss, ('fahn-nU. A niounl of award $90 00 One-half appiaii^'T'n fwH 2 50 Toial m 'A) ti'.liiiH. AU'AUn. K'>|{M 1- .,..l''inK l.vsLKA.Nt'K ( 'uvti'ASv oi' Nkw York:. Mvnifjhis Agenci/, I'lhruary 10, 1« ,. Award on cKiim No WiiFHt^A.-, H. il M. I'.irt/, .f Hi lii/ir'ti-. till.' assured niid>'i' pi)licy No. 470, and riTicwal roctipi \u , iss-ueil ut tl\i,s agencj' of llit- Fif!' In'-\iraiici' Company, hac*' .-'uslained lo.«s ami damage by tuc whio.i» occun-fd on ti\f [>//i day of February, 18 , at one o'clock /'. M ot whirl) '/(( insiiri'il ijavi nolioe at, thi.« ii^;eiicy F'lnxari/ (Jt/i IS The following if a trno copy o( thr policx - h'ifjhl Ibn, /,../ Dnlla,.-: mi ihtir oui'sianj lirirk buildin. 200J Main utrftt, M'mi>fn>i, Ti nmssii' Then' vva-' /)(.. other in.-tirance 'o the amount of $ Tiie circnmstance.- ultendiiij; --aid los-i are at* follows :- Th( I'lri- 'irii/iii'ilnl III 'hi luljiiiiiiiii) liiiililiiiij^ I'lom smny raui^c nnkuo^tn to mxiufil- Now. this iK to make known to .-said company, that / have faidifnlly examined into all the facts and circiiinr^taiit'es attending >^aid lot^s and daJtiage, and being futi.i-tied that ihc claim lor {ndemnitv .■iirinn-t •^aid lo.s,- is jiisl and true, and that the said a.'-siireil rs enlilK-d to remuneration. / have awarded the .*-nm "t Om JJnii'lmi IVillurs in lull for such 1oh8 and (luniage; and have (laid the same, l>i/ihaf'l ut ^iijhl ii/i'iii the ciwiiiaiii/, us per receipt hereto annexed. Award $100 00 Apprai'^al fees (one hall) .... 5 00 Total *I0.-. 00 <»«<»•.•.<■.. , AffKllt, )i-vfiiihi')- 1:.', 18 . le .. Ik- .•?iini of iiiiieli/ 'lol- iill claim arising for w-.xl Nio. . this agency of the OSS ami (.ifiiriHgo by at ontt o'clock /'. M mpei- sU'Vi:, xUiiati'd It / liavp I'aillifully uiiiig Mii'l loss aiul )tv .■i^iiiiiJ't sail! loss lo reiiiuiieratioii, / 111! for sii(;li loss ariil I'll! the cinii/iaiiif, as MOO 00 r> no (tin.-. i)(t 3a««. This for sarv. 883 AWARD. KOBM 2. m i)vovi(les for co-insurances, when neccs- 'iisiirancc Company, Of Ir IS HKIIfDv 1.KC1..UIKI. that I iisiired by tlio Insurance Company, lunler policy \o " . . . issued by at . . . covering as follows:- ••••.... ;••••. Heniwal No. . Oil . . on . '"" ""Stained loss and damage by tire wh.ch occurred on the. '''*'^ "^ ' '^ • ■ • • a»d originated as follows :— . J'"^''" .''""; "'''*^'' iii.-uvanee on tl,e f.ropertv, and after a care ml exa.n.nat,on of the damage, we have awarded to t'ho assured ti: ^.m of : '" '"" '•'" «"iJ 1"- and .lamage, as follows : V on on. .on . It i^^ ruril.er declared thai, the foregoing award is just and true to .;■ U.t of „ur.ind.ment, and no n,ore than the assured ^ just^'nUd^i Z receivi <'ompanyins,u-es * ^nd pays | t'onipany n,snres $ ji,„j p„_,,, ^ ' "_ ^ ' Company insures $ and pays * ,[[[ l'"»'-''"' 'Ins davof m [[ ' t.A(*KNTS. If Rki A if cut . ''^•'^■^■'*"f"'" Insurance Co. of '^"'""«'' a.ents,,heM,mor dollarJin't^i satistaction of all claims lor loss and damage by lire ,m jav " '** '« ''"' l'f«|w'i fy covered under [mlicv No . ''""'■'' "I ''"' igencvof.-aid.ompanv. A lik< ri'cpipt ha.< lifei, signi'd on the policy. " • Clainmnts, as^ ■ 884 I'KKLIMIN'AKV I'Kpt the mai^istrate's certilieate (IO-A7); autlaslhe insured is entirely depi:ndcnl upon tin; original insured for all evidence of loss, the pronjs of loss, under re-insurance, to be served 'On tlie re-msunjr, hav;^ been designate! by (»ur courts 10 lie "!' ' h1 ])y the original insured with the re-insured (17 WeiiH,'! .'oP Bronson. dj where the subject is fully discussed. t^l«»Hi»5.) Should there b(i doul)le ri:-insurance, where the (jrigmal proofs cannot be served upon all of the re-insurers, duplicate copies of the original proofs, )»io])erly ceiuiied to, and referring to such original proof as on tile in tlieotlicc of the re-insured, will lie ne- cessary, on(( for each of the re-nisuriug couipanies. (^l04'4-*"i.) •IJiO.S. There is no general form of prdofn wirh'r rc-inmir- (U'j'i in urie among the uiidervvi'itei's of tliis country. Each offic(( makes its own requn(uuent ; :Nso\ says, " i'^ I'ollowing the lettei', while we lose sight 0. Tlic lollownig form '>\' ci-rtilicate, to acconipuny the orlgihal priMil's (ur certified copies thereof when necessary) would seem to nieot tin- cjise fully, a< rei|uire,d by the rulings of oiir court'^. l-t'll.M (>t ' i;UMIICATE. SUU' 01 / C'ounty (it ^ ^'^' Ttiia vvillot'Ctilv lliai ilu I n- lUiiiicf ( 'i(iii|)Hii} cMtluiity ol .li'l. u|Kiii till' liiy (if , \, ri. 18.., by tlieii policy .\'o 4i')!M), i.-^f^iu'il at (lifir Jigciuy at (.'liir;;ijT(i. iiimirc in (lie sum oi (lolliuv. lor tiic ppn.iij of une vrar, in wnnls as Collows :— Vili'irgile llii wiillcil polliuil 111 tlie cinauiul pulicv.) RE-IN8UKAN0E rJBRTIFiCATE. 885 Tl)a( oil U»e ^ ^, jy ^^ ^ ^0 C^.„pa^yof Boston. Mas., di.l, 1^ U.ei. policy No:V8:^92,".iZ;: ."^ ;, ,;, Insurance Cornpuuy .n the Bum of five thousand .luHarn 2 t^^ .ke penod of one year, upon Cheir habil.ty under their U^y iNo, iyj(,, ,11 the words following, to wit : - ^ ^ f Here follows the written portion of the re-insuring policy./ [SliouIU th.> sum re-insurert be only a portion .^j fho orisiiial nAii.., .h .^e w..., .. ; ^ ,, forth ,n the afhdavit of losJof the ori.inaf " red tnd h ' ^ ' "' vo„c..rs (true and tHithfu, copies oL^^^U^^^^^l Z^^-^ submitted, marked and made a part of thi. affidavit. ^ ^ Artd, wherea.s the .aid Insurance Comp,.,.,. by virtue of the,. |K>,cy Na 4.%a,bre.a,d,waB dan.a.ed and injuid I Z a^n'a ^^ 'o'Mi by the athdavds of th,. insured, herewith mibnutfed :- Now theretbre the I„su,ance Company aforesaid claim.s „f the ...... In.urance (.^mpany,- by virtue of their policy of reinsurance N ^:t, ^m^ -'V'— i ^l^- hundred and .eventy-n^r^-^; I'res. or Sect/. Dated New York, this IH ,...*.."""""' " Subscribed and sworn before me this. ... day of a. n. 18 {: Seal .N. jiT Tstr'' '""'""'' '' ""' "'"^""' '° "■'■' ""'- 886 \. UKCKIPTS. (i«7a.) 2:t70. liKCEil'T : Wlieie a valid (li;l»t or claitvi exists for a Ci'rtaiii siii/i iif money, a receipt for a less sum, speoifying tliat it is " ill lull of tlie debt," or ' in full of all demands," will not prevent the owner of tlic debt collecting the balance. ^^liTi- 1Jelka;sk : ^V I'elease foi' a consideration, or under seal ^l^fi), i.s a tli;?eharge of a right or claim ; it differs from a mere receipt in that it is a cTJ$.) 2SV J;. AccoiU.) and Satisvac'I'ION •. In cases of compro- mise, where a less au)()unt is paid — and accepted as a com- promi: " --tha'' < claimed as of right, the acknowledgment should express an accord and satisfaction. (lOTIJ.) Jiiil.t. FOH.M (li I!1-;(.'EI1'T. I I'HN- i'.W MKM (!!■ A I'AKriXl loss. $ A^'eiicy ut ..IS Ileceivoil ot iIk' lusurain.'e Oonipany of thii suin of , , tiollarn, in full [)iiviiitnl aii'i siitis-faftioii for Iosr and damage liy firf, on tlic l:i_v of IS (o tlio property oovercd by iln'ir imlicy No (renewal No ) of iliis agtiicy, svhioli said policy i.-i hereby eanciled to that anumtit, leavinf: tin r-um ut liollans now insured, a copy of thin receipt hcing Indorsed thereon, Injured. Amount, clumied, $ fntere.st deTAI, LOSS ASI' ('\N( I- I I.M'IOV 1)1 I 111: i'dl l{\ $ Aguiii'v at IS lleucivc'il ,jt I he In.siirance C/Oinpaiiy ol , ilie sum ol' ilollars. m full ptivnuMii iii:'l .satiBlaction for all lof ("ty covered by their |Kj!icy No , froni'wal No- ). issued al their ageiic\ at ; in coitsideration.of which «uui >li(;y in lieri'by e.anceled and .surrendered to the compaDy. fSiJoed by the assured) Date^i l^'.... -J'.nn. FORM OF ('ANC'''I.1,.\TI0N :ree to proteci and forever defend the said company against ail peiisoiis or claims wliat- .soever on account of said policy, the : ame having been burned, lo-st, or mislaid, and not ansif^ned or transferred by Dated . (Signed by the assured) ,18.... ^: INDEX. SKCririN. I V\'.iK. 1«17 IIJ •'tihc, Policy ,,ij0 4H7 of (joulrt jfc20 682 15(i3 ■ PAOK. 662 Abandonment 372 603 873 .Abatement ol Lobb f!n . • '.' I-eyb-m.-n, .juotoa 15&4 610 AocKlenl ; Fouii.l,.tioD of I,os«. . . I6S5 fi**^ " ('"iresby .!!l,w2 Vj» AcOTid Hmi Satisfactiou .... " i6« 97e. m r^ " " Permits f,)r ... sn •iSent, of the Undorwrlter. " JlnHiir»!(l 887 394 Notice i,f 97;; " Mortg'igd Inter- , _ *■*! ... !Kfl KeneivRl of loji 424 Addiliont d'Hiakg.. ,,j, Ad Interim ItecGJpt J41.) 674 Adjuster, The "_ J " Average or Sf.-itor .. "78 " " Legal Duty ■'of.... 66!) Adjustment of Fire l^wses 51 4»i9 4«0 4.'',1 (81 4112 .•577 '578 .57i) .5S8 Mm .1058 .MIS 91 59fi St.itemeiita of 2177 1566 16t;5 : B'Mi l-3.")0 ' .598 Final . 1607 , (iOl -KM Adnnn.eti-alorH : Insurable Jut. of utie.cf,i,.oaseofLoHs m-j' first Sl<'/, ■ Volice of L<.^.s,io7i Preservation of Property i,573 Investiyation of •■l'«I'"i'e 1678 Exiuninatioii of /■'■'•f 1583 Ktaiiuuaiion of l''"l":rl.V 1596 Kxuuiiii;n,j,,ii of the lioolis... 1598 FinalAdjuetm'tliiOT Contributie... l.i.Hl.ility. ...itiie Reporting to ilr.^ Company IR27 !»f>4, 1,'!93 1396 ^ '-•'"•■'' l;i94 .2ll.t . 28 Second ' Third - Fifth " {•ivth " JCighUi " ifuith " ■Vgreoment, Parol Oral., *''''""•«• 1306 .Special (jj. iSub-.\gont .Surveyor . 1310 ^ mi Bo.utsmenof jgg.^,, to Accept Sorvioo jyig Xotiue of Ijosn, 1312, 1571 i 13 Altatory Contract. The 418 Alienation ... ,, 1086 l)e.seenl to Jfeirs. . noi, 1104 I'artnorslii p yyo^^ '• "^-''""veyanoe after..!.. 1089 Uteration ; Of the Uisk „jg bj' Spoliation o,-7 42 America, Plrol.isnranco in.. V- 197 American Fire PoU.icH ',']" 4^ *^ " " ll^rtford..'.'.".".' io li:a. Co. of North Auiorioa 435 424 .■179 381 198 890 INDEX. PAdB. »Kl"lIi>N. 206 Amerlciin Fiio PolicU'H MB(*8arli-.is«!tw Kiro Jiix. I'u. . 4R1 200 " '• Muluiil .\»»\ir- iiiice of Vii., 4311. Ufi, .119 207 " " Eagle Firo, NY. 45;t 2H " " New Viirk cmicpn |s;t.-), l.siiO, ^lC 470 2S3 " " Natli.iiHl UdiuJ 475 710 " •' ('oiitriliiiiii.ii Claiisf! " :'0(» a[ '• Aiiiioiiblo Coiitriliutloiiiihlp," London B» 08 Amiiuril to Ix.' liiioiriMl Itil Ml) " Kollitivo 1644 CX8 " of I .oi-.i . . isufl, 1H27 Iti Amsffinlam. Oriliiiani't; of Ti ;H " Kir« I'olii'^ of Oil, !l!l 127 " 'lraiiii|.<.rl I'olicyof... 3J4 in .Antwerp, (.Mdiiiain'e of 42 26-' Applifiition mul Snrvo.v 49f) 2.^6 " .Si){nc " Average I'olii'icg :.'li74 736 " Ooiiiiionml I'olioics li'.Iti, -M'e 738 " " " Claitrt 1..2IIK0 790 •' " Knle, Class I . . . . JiW 760 " " i;iaKn 11 . ,..JiiK5 801 " " Kiile, t.lass U... .'JlS 743 " Existing Aii.i.rii'aii Kiiles L;i'f»; 74.'i " I. KeaainKHule 21(i] 747 " U. Finn " '.Mil;* 7.''>0 " ill. Albany " 11114,. ^U".' 764 " IV " .... jrjtl 750 " V. " '.'130 75.'i " VI. ■' 2137 761 " VII. •• 2U4 7ii3 '■ VIII. Of Proiiortion -l.^J 770 " IX KnK'lisliKnl.'s lilOl 776 " Spooitlc. l'.)Ucit.» ;;177 775 •' Contini'nial Kiili's L'174 Gil3 AlTiHlTlDN.MK.M . lixaniples of :— 77TStateint.nl 1. Partial Ioho.. .... ..2178 778 " 11. Spocitif 217!» 77» •• III. " 2IK0 780 " IV. " 2181 781 •' V. •■ Chieago. ...2182 782 " VI. By U. H. l.iiwrpiicc 21 ^^1 784 " VII Specific, Cliioago. 2180 786 " Vlll. Spwillc. 2187 787 ■' JX. <.'<'niini.«slon gooilb.;'188 788 " X. Manufaeturinif 2]8i» 'ill " XI (.'oiiipoiinil, (.'lasB 1.21!it; 7113 " XII."Uiit.olveil Piv hlenri'iuy 7!»7 " XIII. Cuiniiouiiil.ijlaes (1.2208 802 " XIV. " ■■ 2214 803 " XV. " Croniid' Case . 22i;i SOB " XVI. Double i:'omi)ouud,2217 I'AdK. HBCIION. 800 StBtonu'iit XVII. '• Finn H"l«". 221li 800 " XVIII. '■MUBomlr.'',o" 8222 810 " XIX. Ctmipouiul.Cl. U... 2224 813 " XX. •• " 2228 815 " XXI. 'Hook Store" 2230 H21 " AMI. toiiipoiiii.l InlstH .2241 823 " XX III. " " 224:1 82.5 " XXIV. " anil Speeifle IntirestK . .2246 827 " XX\'. r.x.esB InMininee. 2247 828 " XXVI. KUmtiii^' I'oilry.. .2241* 8;i0 " XXVIl AveraKeflaiiBo. .. 2260 881 '• XX VI 11. Tliroe.(|iwirtor (Jliuiso 22.')5 8.12 " XXIX ( oMip.iuii.1, with HvoniBe 2257 834 " XXX .Maiiiifailniiirs ... 22n0 8.'t« •' XXXI. Kaiin property 2262 838 " XXXll. Ennlifli Average i.lauBH 2264 840 " XXXIII. Prorata IHhtribii- tion Clause. . 2271 841 " XXXIV. Hen.oval 2274 843 " XXXV. Tlireti-ipmrler loss Clans. 2278 844 " XXXVI. LimltallonClMUse.2282 ,.<16 " XXX\ 11. Liquor l.iws r286 848 •• XXXVIU. Woolen -Mill 2288 h52 " XXXIX. Kailivail Lo»« 22SI4 81^4 •' XI,. Mixed l'oll,.lei!....2208 xC<\ " X I.I Colli Hreaker 2313 OAO Apprainal of lianiiitj;eil Gooi.ls,I704, UVi 084 " of BiiililiiiKs 1717 870 '• Forms for 2339 6&'> " of .Maeliiuery 1703 654 " of Kurnitur.. 1710 058 .Appraisers 1803 MiO •• Ulanlij. 2322 861) '• .Siiliinission to. 2326 867 " lii'tlarati.Mi of 2;H7 ^67 " Scliiilnl" or Inventory. .23;X) tvU Appreeiation in ValueB 1745 (iliO Arbitral ion 1810 662 ■' Aijriiemeiit to refer to.l814 586 Arson 1589 60fi " .As now Coii-l iuit'-'l ' 1392 9 Assessors, •)! .\iljii.-itera 0, 1652 225 Acsiguoo, Insiirnble Interest of 700 418 " Official.... 1084 410 Assignment 1060 412 " of the Contract 1068 412 " " Snbjoe.t 1067 416 " after I,oKB 1077 414 " by Pnrtnorships 107.3 41(5 " in Uankruptcy 1079 7 Aapui-ance : Iiisuraucti 3 67 Assiireil, I'lie 157 631 A ui.'tion, Sales at 1707 (131 " Stocks 1703 562 Atttomutli' Sprinklers 15.'il INUKX. nEcrioN. 1. '• Kliiii H'ln". 2V1S! ' Mibwuiill u" ii'l'i oiniiouiul.tl. II. .■'i2'24 " " Ti-M 'Book Store" iliSO :oin|i<>iinil liitHtH i'lil " " 224H " anil Spccitlc IiittTeMtK . ■.i24« •".XiPHg Insiinnii'e 2247 ■lonliiig I'lillcy... ri4i» VnMimefiaiiHcv . . 226!> Tliroe-iiuiirdM' (Jlmist) 2'2,'i5 1.01lllt«>Ullll, Willi averngK 22B7 Miuiiilacturiirs . .. iJ.iQ Fmin propiTty 22112 Eii^-'liHli AveriijjM (;li^^l^'o . . 22t;i rioratii l>inlritni- t,i(Hi Cliiiiso. . -271 lUMiK.val 2274 Tliieii-qimrter loss Clmis. 2278 Mmit,nti('ii<.'lim! dju.'itiTa 0, 1662 inble Interest, ol' 700 ial... lOM 1060 11„. Contr.ict 1(108 ' Subjoct lf>67 UT \Mm .1077 raruiorshlpB 107H H.inkruiJti)' 1079 iHuranci) 3 157 >'at 1707 ,oks 1703 riiiklerB 1631 PAOK. ■II Aiwtrla, Firo lnHuranr.Mn. lia Avi-rHK.- (^liKis.., The. ... I'ropor 141 7 8 SK( now. 7.1 ;«i7 im, I'AOK. 8 Ylveragel'Ktty. 891 SKf "iroN. am Ooii.Miil ^VIurliiH) 4 Partlculur 5 8 U 838 8 Wiirriiiity. AilJiiHlor. , " Apporllomnont" under. 2«(i4 Hh'xllfui, I.uwof.... . B P.VOK. ■PH HiiKKIiKo •'«'- • ■ Liability .,f L-..rrl..r, for.. . . .,,»« o.'Ul Ur-Hkag., „„,, ,..,„k,.„; HKrxioN. I I'Aur: ..l.'Klfl .')«!) Hraiioh Sloriv^ 2:17 Uailoo, Insural)!,. I.itir't of. 41ti liaiikruplov 700, 1731 1 1170 1070 f^Kl IKl.S, l.W.-., I.VIK 1713 4l,j , '"I" .la:: •^••*«i«iiiiieiit li) i(,7<) .'jio - 4 Jle,„.ll, uirv, iMMirabln Imerest ot. . 605 I 870 • ,1 ma...n,HM„,.M, Improveniontg... 836.1718;. 147 llul 2»8 Hrok.rH, loHnrablo Uawmt of . . .'.' 71,, •122 " liiHiit.ii.....x IiiSiir 701 3;i."i Hill.>., ll.)ii,i(,, \„tI3 UiiMlii.K.SIIp 1.'>.'I Mlaiikii I'rjluy . f>S'J MoDHg ' "_. (iXi Hook Uatn Stock .... '129 Books of .\ecouii 842 , luH 141,1 I 668 327 ,634 ■. ISil.'i 460 \ aluo of Insurance . 4ti6 701 501 6'JJ l'.\f)l an K\iili>iii-o. , . Kxaniinaiii.il ot bi'Stroyt'ii by li'iro. H,-* I 467 .1608, J042 '[ .V)3 « lO.'.l l'_'!l l/i.W -,Hi ■< r 1000 ;;i;ir, iiuiiiou " I'H.Mm-ntofl'renilumU).. 7h« ""«'•"'«'«>< .sn«,H.'i' fculJinato. i,,rniH u.y ■>rm '."'"'f 1897;T7;i7 LoM nn ,-,. ,, ,, , ivli Kc-limtaleniflMt of in;^ baniji^e to '......,1717 • in eourse of KiwtioH ' ] ' " \ y^r.a ' '''''''■'l«' "ActotGod" l;(.TO 2.W 250 2,50 2.50 251 210 .IS,'., Ha/.ai.l(ju.s. . Non-li.MZ,-irdous.,..,,. Kvtra Hazardous. ... .Specially Hazardous, Cot luion Insurances, of A. D ISOO lO 844 . . - . . 10 ..1674-r. 1571 1!'78 1028 • ...l',W2 1967 ....1028 190. Ii07 .... 488 .487, 402 4,'-0 .... 1.S9 .... 402 4,56 Regllgeute, 1362, );t74 ,5,50 " ,fx. .. ,„ ' * i.i.i„„.,.. . .„..'..,!! I" .. "f^'fttiooa! Board... UB8 Jnlerniediato ]4<,(, of >ir.! Hazards l4,-,i» '"''* " o' Towns auci Cities. l,:.ooa l)ili;,'pnee....i.!tii. 137s as Waroliousotuen l.«18, 1376 .551 ,5,34 892 INDKX. I-AOK. IKCriOH MO CliiiHlliofttloii OrlHWold'i Korni*. . 1473-1 Ml " of CauBi'Mof Klru».U7.V(l 0tiw CimirlbuUve Unblllty .,, ...ir.au, H'C'v X« (olii. Nil liiMuraliU. Ml 14.1 -iiiluruiu vi liui; 110 " In " Kent Policy "... 27.") 1.10 ColliHtlvii rciliiiii'B 31* (10 » (iliiiiilpiii Kuo liiH. «'.. ipiN.Y... I'll SM Cuiiiliioiiceiiitiit aiifl Kxiiirallon of Klak llM, H47 fio Oinimcroliil V\tv Im. Co. of N. Y . Ii3 461 C'c)imnl»»|f.n (.'liiwHt!, \.)\v I'mml.... IL'OB 2i)0 M«rchHiitK,limur. IntfreBt 710 373 " Hi!turii, hy ".\i{f«l(i" ".m 478 Coin mod It Ion I.''7M " Voliiiiiary I(jiioraiic>) (i'^t) 138 ConciirrPnirijli\\ " " of Ontario 4jili; 62 C(>nneciieiil, E.irly Kire (,'onipaiii«s of 99 60^ Ooiisidcriuioii, Tlio 162,775. Iu77 2!I8 (,'i)iirii){nee, li'-lti liit.^rwt of Tl.'i Wl.i OoiistftlilH, lumirablc liitiT«-nt ot. .. TOI 3(V1 (•,oii>taut MuliipliPm 914 It) Coiwlruouoii of tlio I'olicy 181 PAOR. lEOTtOH. 70 Coimiruotloii (ItiiirrftI PrInripltiH o1. I'M 80 '• llltclitloll, '111.. I!i3 V« " l.ll.oriil or l..|iilliililfl, 187, 'JOS 7U " 8trlctor Literal 180 »'.' " of TfriiiK or W.)' l>.(l 84 •' I'liagM .'07 m " ITInti!.! Form» 147 HI " i'rItiliMlor Wrlllon foil- (llilonn 200 722 " of IliM CoiitribuUon t'laiiM) 'JiiSo 83 '• l''orf.iuir<)» . ■li\h tuW Coridtriictlvo lose cr J>iimHK0,17iVi, 17.18 45.1 " Ufllvcrv <.f (.oodn.. .. I'.'IO 374 " " " tli« Collcy. 'A\ 3;i!t ( oiioiUJinmlion of llie ( .iiilrat t . mi,u 472 ' Conlaliied in" I'.i80, l-M 649 toiilc'iUs of Hiiil.liiiijH 1495 7U>* C'onti'nt' iM'liiiiiii .1078 i;0'.' ('oiiIi^»Uiii: •' 1628 179 ( oiiliiiKiiiaKKoropcHii) I>o)|(ile».. . 4'J4 !i»0 " Kieooli I'olii'y 4'.'fi 187 " ri..in.nri " 420 10.H " H mil 1. 11 IV " 432 84 " .Aiii-icnliim- 63 114 34r. Coiitliiiious liiitmai.'M>. ..... 'HJi ,l«4 " VVarraiily 'J 4rK) " Liability lor Uoi. alKo' Salo 1221 .'.4 ('o)itraot, lliii lUHiiriiiii'i) 100 54 " Firti lii»iii;iiito lofi 399 " of Id -ijiMirancc lO'.'U l,-)9 " ofSiile 1219/1 ;t;ty " Wln^i (onsuniniatud.... 860 430 " SiiDiiOiislonof llliO 379 " All. ration . if 040,959 M " IVi'Hoiial 107 HO " '1 lie I'lii'iiual l.)l 507 '■ t'liil IIIW 607 " I'arol ,. .l:i!l5 807 ■' Vmba! 1391 120 " Poliij, Inland .317 ,•,73 ■' U bfrrimOB tide! 1.34, l.MV> 710 Contribution 198'.' 71'J " ClauHO 1991 722 " " Coiihtruotion of..'.!o;i(l 710 •' " Anu'rioau '200H J15 " " Kiigliflh 2002 71,0 " " Kieiicb 2005 716 " " (.JrniiiUi 2IK16 71(i " " llanibiirK 2007 720 " " Addiliyiiiil ... 2025 7-^2 " " l.ct!''' Coustrm!- tioo of 2030 7;;l " " Aa to Insured. , . 2059 •,;fi " " CiMinHOriirH '20(11 732 " " Luiblllty of l'olity.'062 i.U.m/n..' '"^ ml or l..iiiil"l>l<'i Wl, Mi ft Of Utiinl "* Inid iH" iiI.mI ^of^l•.•■• iilnnn II,.. CoiitrlhuHon l:HIM 147 200 2(i80 ,f,\liir«» , ,.,»..r.rJ>K...HK«.»W.,>.-8 .llverv <'t •'"<«> '■;" .. •' the Policy, '."^l HtiO ,,, ,ii.M •mf'K' .IJW), I'JW* 14U5 1978 C'i 16V8 . 424 . 4'.'fi 42!> . 4;« 114 lill).iiii|{» illitt !• K,iro|.<'Hn) I'"""'" |.',eiicli l'oU''y lilMOiK" " H!iiiil>iir(j! " lllHllllll.''"'. — WiiriMiily I.mlMHty for HUi r Salu--. i„ lusnniiifii r>^ lii»>ir:k"«*' l;,..ij,«man«"i' sale ; 1„,„ loiisuniniatoa Ui'iutiiiii '>f ■ • efi»i'ii;vl- . . ■ •• lie l!m'l»»l-' Mill nr'il .iliiO ..luy.U'lMxl .,..,;»,„» tiaei......i!«,i||e« "' ...VM '^'r"n,;;*t^>iionof..2o:w .. Am.'ri.mu '-!0«^ .. K.-KlUU •^"«2 .. ,.',4ob '^"OS •■ 0..-n...... li»«« UiunlmrK ^"J A.lilHioniil ••• '*^'''' (fill (.'ooi'truc- 12'2l ....■■■ !"♦* im> 1«'.'6 121:9(1 .mo (i40, Uo« .... 107 l.U V,M \:m t:i94 3IT 1.' tioo \» to of. ,!i080 l„HU.ed,.. ii«8» C.-innurijrw l/.ii .2001 bimv oJ roUcyJ«62 m ^1 I INDKX. 893 fAi»ii:. nKf-rio!*. 7l'M)i,ntilh itlnii t'liiUNO unit' r Aw.>r(i|{<"'.!017 4ii{J " iiii.Uir llo-liiKur- kiii:a 1014 598 rjontilbuUvfl liability .1010 727 72« " m; <.'ntiim'r'»Jiiry .i. Firs Li«ito» imu iv.»8 Coiit |l',l^ UV« •' (if Mcrhnnillio ►,1Cn4, ITOCi ."ViB " of IiiHuriiiico, ,,, UtlO lUUhle rroportUm .20.W ] liiO t'oiiiiler-lmiiiruiii'« , ingx Pri riila " 20 H! | ti« ('ouiiKT'lunlim tlic t'oUcy too 720 " mil, KxliauKtKil, wlietiJo.Vl I 2!tl Cnvlltur, ■ In.Musihli. IntBrnnt" WS (■.}3 " of (;i>-liiiiiiii'r» 20112 1 20.^ ('urMtor, " " ....i.'.H) .V^6 Cornlocg i,',iii I nl ("lunvin, I sago 'M^ D PAOR. gK( riON till Dainnifi' ines, ift'i I ei.^ " ty Fire Iiw< | «27 " AHiiHl J«1M i 6118 " ( uii^tnirtivo 173n, K-TX «iW " CoM.^i'nii.Mitml IT.IB 023 " l>y Wlirm S«({lect Ii"r9 C24 " by l(.,nu'val 1180, 17H6 ('.5.1 " ApiiriiiHal of I7W 627 '' .MiiaHur.' f>f lilito O.W " to HuiMiiiKM 1(17; (iH •• u> Hoiis.'ti.iM Fiirnlturp . .1710 ' .^7'.> Diiuiintfd I'ropiMiy ir.Til.lTw > (i:U ' .Mfti'htnnvy Mil 33)1 l>atfi .AM ;tt;« •' Tlni.! Tiibk*!) ■. . . . Ol.^ 3.^» " Miitniiallty of 80? «9 " of Policy 104 8.K> " of Suliscrlptloii ItW, W2 337 " I.agal Vear... (^M 18 " Lo«i« Payment In or.lcr of , .41, 07", 1U89 31S l)HV8f>f' Jraco 7H4 l.v; " 1,1 till' Prompt 21, r^!:! ,V),'i Mi-aflimfil Fh/CIH IBM 289 UiMilor, lii.siirat>li> Interont of 674 289 " Insolv.Mit 674 it ")»«c1ari-a Kisk " 11 68 1)0.1.1 Poll no. 1«« 7 iK'HiiJtioiiH 1-26 t'i7!» " Ii.'tiver ill ' PriK)f» of LoM Hfi6 45S l)i4iverv of tioodg 1210 . 4M " Aotual 1211 454 " Conditional 1215 I'AUK HEl'TKiN. V>!) DdllNery, Coii«trn.!lW.i...., 1221 :i74 " of llif I'olioy iMl .')74 " " Ai-tnal m2 .174 " " f^oiistructlvu , W3 (113 Dt'pobit UocolplH 1412 W4 ' Stiito IM7 2t)7 Mi'poHilary, IiiMiralilo liit{.r»!?«t of . . T.il 041 Di'ptKClutiiiii ill Vnlui.g pilW. 174t5 ."ill! I)eta.li.>i| Hiiil.liiinH iri22 ; 2S0 IH'Vlsi'e, lii»ur;ilil« liiterosr, of 079 207 DlunraniH hh a Warranty 066 073 I)l.iliiiiii>Bt niiliiiH 1,W2, 1607 |ft89 "Di.illar ,Stor«»" l-'istf), 17o3 I 9 Itoiiutl'iii!' to Flrn-Klixlm' Co8.. 12, .'ift SKi IViorn ami .sluittfia, I'lre Proof .. ..ini2 ^•6 " Ihineil 1.M4 .ISO I)ouble Iiiimraiice UCH, !W7 |;W3 •' " Noticoof 073 I s»2 '• " I'l'tiiiits ror 1171 «M " " Kpiunvalof lOll 1388 " " Non Coiitribulivi) Policies !l!il 389 " " Moitganf liiWrcntH 004 880 " •' Ue-iii.Hiiran..' »M, 396 " " vs. l{.)-lu»uiaii.« 9'Mk 1012 2M Doubly Hazardous Insurances 4iti» 60: 1 >iie I >iIi..;onoo 1049 B.Vi luiiiiMiit'.^, Klfvat^rs \!i\b 009 Diipli.'atc Inv..i» nuriilioii of Kisk 163 Duties of .Vgenti(S«ti " Agent "). s PAOB. HBCTION r.0 Eagle tnsiiranca (Jo.. N. Y 04 207 " " Polinyof 453 42 Early Fire Offl.'.es in Amorica 76 P2 48 49 80 43 54 43 ■ if ('(.nno.rtiCHt ... 99 Maryland 89 1 Mossmluiaetts.... 91} New Virk 92 I P.'iiiisyivania 78 Hbode Island... 104-,S Virginia 90 294 Earnings, Insurable luterost in. ... 604 P.VOE. SECTroN. 423 Kndoreementa on Policies 1106 Mu EntirtiKid A'alues 164H 15i; English Policies ...392 155 ■' •• Han.l-in-Haiid .W, 397 1B3 ■' " HoyalExi'baiitje.. 195 123 " Specitteil 308. 307, 400 177 " " Average, or Float- ing 413 712 ' Contribiii ion Clause V.m 37ii Entirety .>Ctb.^ Policy 946 20 Eon lie Ucaumont, t'hov.,\VaKer op 50 894 INDFA. P.VOE. SECTION. '.'Rs Kfjuity of Kedomption 671, ITiili .377 Error of VhcA 1164 .'t78 " of I-a \v 958 475 Kstate, froporty VZ'Xi 64,'i Ktftinmtlng IToHts 1748 643 " Aliqu.indl'rocoss . 17,1(1 644 " AUiluot " 1757 645 " " Table of .1758 470 Kt cot4:ra, etc., Xc .1272 514 Evidence, I'loolB of LoHS as .141H ISl" " Parol .1424 519 " " when Ailiiiissiblf. .1425 518 " " " not " 1427 515 " ofKxpprts... 1422 5111 ExBiiilustion of Hookn of Afcount . I,5n« SiXi " OiU'inof Fin- . 1578 5«!l '' of the I'l-opoi ty . 15!I6 5S8 " Risk iiftor tli.> Fir.' . ir.!i3 70'.; " uiulorOatli, (73,1604 , l!lf.5 I I'AOK. SECTION, j ■'',« Kxflopf ioiial Kiski 8;57 I I.W Kxcwsl'olji'y.... 828 ' 2!»4 Kxeciitcr, Ins. luU-resl 607, 1730 I 7-'8 K\h:mntp(l ri>lioies.StatnHof 2053 I 72 ExpOL'tulloiis : N KxpeiiHB of Kxtiiit;uipliilig Fires, ..1CR8 I li'Jo " o! Kemoval 1iW(> I t;2B " Salvajfo ItWO I 515 KxptTis, lividoiiop of 1422 : 017 E.xploHioiis 15S4, 1669, ltl72a I 618 ' of .Steaiii-hoilorg. 202,1071 1618 " of (juiiiiowdiT 1671 I 55^ Exposures 1,521 I 4.10 •■ Ailiiitioiial... 112!) 1,5,59 " External ...1524 565 InU'ni.il. 1625 Kxpress Companies. .See Carriers. 264 '• Warranty ,5,52 140 Extra UazarUoii^ Occupation 1104 P.\o«. 8KCT10N. 2!t8 Fai;tor, Tnanrable Interpst of 71.'f 6)0 Falling of Iluililing, Daniagf lrom.i'9i<2 6lil '■ of Patterson Warehousf.. 1673 477 Family, The 12i)8,i 2!I0 Feinnie Covert. Inv liitereHt 678 ;t20 Fencfs and Yfinl Fixtures m^ ,5115 Final AdjnHtmeiit ol Losset. 1007 747 Finn KuU' of Apportionment 2109 30 Fire Causa of IlHniliiir}! 65 4i>!) ,561 073 -28 5tn 56.1 653 27 42 41 27 34 30 40 41 Vi 38 84 65 S6 M 65 m . 1680) ,54 Patrol 1529 Proof Doors 1BI2 Walls i.oa Insuranco 62 " in America 76 " in Austria 74 " 1 ally, in Englaiul. .. .53 " on Kiiropran Conti- nent I)?., 72 " in Fraiiee ..... ,.60, 09 " in'iermany i'2 " in |{u8.j() in Traiiflitu 673,1217 IT ndain;iged 1704 Manufactured |(;i).i; ...1306i8.iO " in Bond .,.'.."1701 .. 3i 38 (Joveriiinc.iital lusuraiu'e 70, 71 ... 327 j 148 Gr.idfdC^.-iiHura loeClauBo .,, . ' .3'H) ^'"■™">" B6.3 450 GrHi,.in\Vaivh.,u80 rm 46 (ircMi Tree Insurance Company. . 8S 478 Grooovies ,.,()y^ 109 Guaranty Insuranee Policy !059 iiij Guardian, Insurubio Inlerost of.. . 69!) 433 Gunpowder j [4.^ Fxplosions of 1671 Storage of 1143 :«2 G!;((.8, f'lale. iWri Gold and Silver Coin, ete.... 476 (roods 476 " ami Chattel.^ 476 " Wares aiid Mfrcliandiae, 6i0, 128: ,. 83,3 . 841 .1295 .!:i9fi 1296 618 433 H SKcrroN. 145 Hamburg -Average CUiuse ,',7-^ U^, Heirs, Descent of Title ,. ,,01 .16 Contribution Clause 2()07 | 449 Held in Trust 148 '■ "Three-fourths" 3«9 i 4R0 1» " .1-oliey.. 4:(2 31 Hand-in-Hand Fire Ins. Society, ,W, 397 41 " "fPliilBdelphia.. .,.' 78 62 ULttf,.!-,! Fire Ins Co. '1794) ...99, 102 63 ■' " (l.mo) ](v..> 250 Hazards, Fi re 490 249 '' ClasseH r>l' '18^.1459 mr, " M,-,ial ]if^ •W8 " Clar-Hilir-aiionof .1471 B*" " ■' Formof..I47,'^ 750 Heald, or Alb.iny Itulo ,2114 or on Coinmis.-^ion...ll97 Grain, in WareboiLse 1204 MT Hoist- ways— I lummie: 1.51,5 32« Holiilay, Sunday ^oo 57 Honor I'oliiiHB ng 47k Horses as Merchandise 1.300a 4ii(; Houfie, Insurance upon VinH. V&9 ti.1.5 Ilou.«ehold FuriiituM 12sfi, 1720 035 (■.34 176 477 Goods. Stuit.. Useful and tir uamental . .1721 Damage to... 171i» l;:97, I7'.'(t 1298, 1720 1 AOiF. I fiOOIiutiiina PAOK. SEOTION. 645 Identity oflnsured Property 1761 545 " ofChattols ,761, 22 Individual Hmurers, Lloyds 647 '■ of Buildinirs 1767 12.1 IndorsenientH 647 " of Ti nantsinConinion. 278 Ignorance. Voluntary 620 ; 471 lnflolvene^ . 258 immatenaiity 523 i 9i. Instalnie.K Plaoof Insurance S'f" " Proof of 6s:(i i.» • Note 607 Immedi.itily, Foiihwiili.KHO, 1649.1!»,16 ! 100 440 Inipliid" W.iiv.r ' SKCTIOW, Laws of ;-Notice of Loss 1642 .44, 4'5 ...liOe . ..1765 I 297 inn 1(. eptir. lu!^urabi..i fntcrest of. r'O .1081(1 . 248 . 249 R««olpt 2496 .,„,, „ „ „, , 1163 , 284 Insurable Interests 131,653,669 265 "Warranty"... 555 | 286 f 686 Ini'cndiarism ]5jj9 ' og; 424 Increase of Hazard 1111,1129 : 287 607 Indemnity .1,550 '■ .jh7 Indiana, Ijfiws of .— ! 29«j 446 " Limitation Clause 1184 I mustbo Legal 6H2 " Valid 667 Double Insurance of. . 668 I. PossesMion of Proper! V 669 II. Lions or Mortgagf.s, 661, 67» 896 IXDEX. PAGK. Ii)i4iirab1 2»2 it m It 296 (t '.m tf 299 " 300 l< 6'.>0 1' 63G ti 13 InBuranc 13 " 286 « 16 II 17 «< 18 "' 115 " 27 " «7 41 88 «t 91 *' 91 ** 91 K 04 " 90 41 Hr. t* 101 101 il IIX) " u® 1 SECTION. u iiitcrffSt, I) I. Vsiifniot of Property 687 IV. HriMiii{;for othiTB . 6PH V. l.iiilnlity for Pn>i)erty 705 Vr, AsBiiiloe* 711 Volunteer InBurancc. . , , 720 VI 1. J-iabUity for Aoei- dcui 722 muHi Iw sfatodln Policy. 1!»11 A'.iUies ot l,"i;3 e 2, 26,2!», 33 ail A loatory Contract 28 lllegiil " .... 6tf2 Marine 35 " First Law of.. 38 I'ullcy p-orm. . tO Wager or GaminKi: .48, 51 , 2Kt! t'lrt! iu England 53, 62 " .loiiit Stock or Pri^p- riotar,v 223 " -Mutual 224 " " Kiu'tory 231 lliSh 234 '• Purticipatiou 235, 240 " Perpotual 241 " Ins) ;\lniont Plan ,,., 24* " Continuous i^ijS " Su'ain-bi)ller 25.'! '• I'lato-glaRs 260 " t-ii FrofltR 264 '' Keuts and Leanes — 268 PAGK. 116 luBUrance Fire Lon^-terin, HBOTIOir. 288 113 " " Ul'i 11 an.l Valued. ... 280 121 •• " .Short-term 294 123 " " Certittcate .108 830 " " Reserves 1452 47 " " Co of N Aninrlca. 87 48 " " •• State of Penna 88 3Sl •■ AfMitioual 968, l<76 />66 " Partial ".<. full 1544 67 Insurer, The (I' ii(i.)rwritcr> 156 15 " Who may beconio an . . . . 34 17 " Ui.iivi.lual 3«.», 46 2!i() " Insurable liitereat of 718, 173:^: 278 ' • K nowltidge of 022 G7 lusurod, The 158 299 " " Insurable In; f. 718, 1733 279 " Kiiowlnigoi-f 628 621 Ijisurreetion, liivtsion, .oc 1674-2 80 Intmtii'nof the Partieo 193 no inte.-i!3t or no Interest 60, 287 115 •' Policy ...:lHe,a 291 In Transitu, .Stoppage 683 620 lnva>ioii, KMiei'^n Kiu;my,etc..3it6, 1074 591 Juvenloriix )f.St(> rf^ 1598, 1900 580 Iiiv>fltijfl8 593 " Duplitale 1602, 1942 59.'? " Forged 1602 t;98 Iron Safe Clause liMl 559 Isolated KuiidlngH 1523 PAGB. SECTION. 1(1 -Tetsaiu 14 10 .Tettiwn, Jettisoned 15 a-'16 .I'^.wcla, -Tewclry, etc.... 811 I'AOE, SECTION. 87 Joint-Stock Insurant 223 303 Judgment Lien not a M jrtgago. . . . 731 rAOB. SKfTK'N. 584 Keroseno, Earth Oils, ew i.^gs 584 " National Board Rules lor use of 1685 PdOE SKOTtOW. 50 Knickerbocker Fin^ Iii.s Co. of N.Y 92 279 Kiiuwledjre ot the I nsiircd 628 278 " " Undern-rltor 622 PAOK. sErrtdji I r.K r,ab,l or Slip. 49. 1109 ; 10 l.a|.^aii 16 j 17 l.iiw. First Marhio in Kngiand 38' 64 " i,t Insuiauce Contract 148 i 65 " ' Analystsof ... 162 47!) " of \gciicy I.toi I 564 I.ftws, Retaliatory l.Vto | 533 I.eaka)^e an<( Breakage i;i3 I 111 I.easebi.ld 277, 6,89 687 " Value of ., r,-28 I 110 " Policies 275 I .>A>iE. 8ECT .'t;^7 Legal Year ;;:89 Legatee, Insurable Interest ot . .. ;a)2 1/ g.«ee. Ins. lilt ■37,'S, 6«9, 29'.; Lessor " " 68>>, 520 Levy 24 Leyboiirn, " Panarithmologla" . . . 610 Liability {^ •< 69 598 " 2'<6 Lien '.VI ax I muni . . I>urRlMiiof .. Contrib.aive. ....161, B73 Legal r>uty of Adjuaturg IStW I 303 •ludgnient toy. 854 . 676 17-27 1727 1429 . 47 1656 1(VI6 166 1616 . 661 731 HKCTIOTH. •^iig-ttTiii 'jas rii ami \'alu(!rt-term 294 ■tittcato Ma orveH 1452 of N Aninriea. S7 State ot I'eiina 88 ■'»1 9C8, 978 ■•>•. Full .1544 lorfti-iter) .150 becmiio an ... . 34 I 39, 46 Interest of. .Tig, 1782 e')f 622 158 vin-. f. 718, 1733 Bof 628 i.sioii, .oc 1671-2 Jitieo 193 ?rest. 50, 2X7 28fia iVg'5 B83 Kii«iu.v,6tc.,l!l(;, 1(;74 "«; lf.9«, utoo )riglii i.|' Fires i.'^"8, ir.8l so (.:.98 1602, l!M2 1602 li/41 1523 SECTION, iti! 223 aMortgHgo.... 731 WKOTtOIT, Ill-Co. of N.Y 92 iK'ir.Hl 028 llder^•riter 822 hECTtOV, .... 854 ntorost of . ... 076 37B, 6«9, 1727 688,1727 1429 hinologia". ,. . 47 1(156 ... lei, 1688 Itj6 ' 1K1C . 661 731 INDEX. .S97 8'^i.I.io,.Mo,.ba„ic« ""'^"Z ^'«y"'"« Km '■"«'"'>• 1668 Live Stock Killed by umo liuU-muity Clause ibks 442 Limitation (lause"'!; ''''^'^[.[".['.i^ Amount of Insurance. . 3.S.5 616 616 616 616 10 LIgan. 174 442 443 443 440 41" +17 Time. . 127i PAoe. 'S64 U-rt lihakH. KOTOB . 6;)8 " Coiisoijiiential, 677 " I'n.otuof ,, 6H8 '' Amount of, i-. >; 196 " of m per oi,r I'olicy ...... JPi'yali).! to... Payment of.... h- y^'^ilte 1174 uy Contract i!7;, ;; y^'^ivoT of .■.■,„gg Su: '■ List ' i m.'rj • 'ii.iii 472 J.ocaHi.y. 68 Localion ol Biufc* , 20 l.onibaiiiB. T.in "3 l,oi,(Ion .«..*»!. ir-.f-i.^.. 1 16 Loi-g-torm l'..!ii..ti., " .... NfMo:!«ij!fft^ '.%). .160, 413 704 I '** 611 1617 61!i 613 620 615 616 ■714 624 i;i4 . 46 lavs j 43 ' 61.-) 119 119 And I>!inai;e '" K<;i losioB.. ' '•'•«i'lng... " Pir^ '■ " i» I . (« 623 2>ftl 6U .%» 611 »te; SM fill Loss W " Actual..!.' ' 63« " Construetiv..;., Jh* " PA OK. (>5.5 .Machlnerv. 650 686 ess cr>e eyi JfajfiHtrii em 69S est '< 694 •' 693 '• eiH •< 694 " 699 " 691 6(t6 «' 697 " 401 " 18 '\lnt ni! f IIS 027 M/ii k ens « inxf.l ._ MoTBiJ,} ,,_ tlaiiiai^y t' . . . A!ii.i]iil-i;jn'in (;onn»cfioii-i e'.* Certiflortl* ... iJe((uiri?roeH.Js •.»♦ Dofootts in... innat kB.iw tti* aoti^T.. ADK.aiUi.f ,,( .^ Jlost Cor.ti^t, M., Koini of... :m:4 Not aCre,i-(i • r{efni , i . Sehi. Tjim Ml -• , , W(u-\ or oi iiniiice ,. . *fi3 L'siset , < 12 JN-4V:^#$«««; '■■ ' -it MiiS*u ' - ''-.'' 4J» , ■ ; ;y , t"*!'- .. , :'>^ m M»-..- : " ('; ; Sxs •t*i» 1 ^i •XeMure rv .; ,*w-* »m i( w ,\ . .!t(««' ■>:)A, '• .B,■^v-^ '" Uliv: •. .■J3«»S ' fJiW '■ finite Vi-^r ^!ii t« (ilH-ifei . ';■» ■ .15® «« I, .:-Sf)i^i tm ■ «sj It H(>ji» tt In n. n tk J.<»»--. ' ■■■'■ 1 »i r< MM-! 6m *« Mat..;!' ->. 1 («"■- • ( ■\„ ■„,• '*"V.o.-^ ■wr.^ AiliO.. i^JtB-ES! MeelianitN" , ,. •!'?».' ea: Mt!nioran,.u.'., ■-•into >'.M -•:)9 ir-i5 tKl • ^-'^ « ;6f;7 (.»!> . :'i72 .(W .•.•.■.<.6 ". !Mf( ■t'S.'s»y«-\Sliiti ■ i*'', v;7i. ITS 1688 ("17 .»«0 irri* »1 ■m - '4,4 .46 :.■.■« '■•«■ ■?* J - : A - ■ nn »'.j 898 INDEX. PAOr flKCl'ION. I PAOK. 5W .Ml iiioriz'Ml StatfliiiOiitH IMCt I 470 470 Mcii.iDiiln Allowauot'8 , . l.KKl/.. 477 Jliiiclniiulise lu'iW I 4tir. SFXTION. VesffN in Ccuiso of C'ltii- 8tniciic.li 1274 Words or Kxprppgioiis Used VHt'i I'.S " Wirhcml Kxceptldn l30ii i 5ttii '■ " iiB Hiiuna^e " IStilt j 621 Mii:iary or irsiirped Power, liSfl, 167+-f> Ku Alill s.i|i,)U,,s iSdl •Xiu .'Misci:i,l, VMKH.'S <"ON'HrUl!C'TIU.N-S !— (MS Miscoiulm-l, N\-gll(.'«iU!i' 17U8 ml Misivpii-seiilalioii 567 Wi> " of Values Ml -'09 " " Till*) 6S1 40S '' iiiidiT Hi-iiiiiiu- ;iii<'0. IDST lti7 4liti )K7 ■lliti 4«iT ii:: 470 Hi 4r.5 4tii; ■ITii 4i;r) 4ri 472 4;o -WT 4ii7 41 !7 475 475 4Ti! 4f,(; 4 fit) 46^ 4(ia ri!irii 12ll ; 082 " and OmisBionii ill ProofH Ci'llar 1201 ■ of Loss I«7li» l.pliHr ntoUfj ...l;;r,!),j I tai Mot) li;71-4 rotT(?>'-hoiisn-— Inn IJti! i XM .Moii«y ; Coin S40 " t oiiiiiliied ill," ]28n. llisa i -'71 ,Mor!i) Friuul 691 Kt litem, v«< .1272!Wii " Ha/,;ird 1485 K\iiI.>sion o! Steamboiler 2ii2 ■V)', Moi IgaKi- (iitonwt 731 Kiir- and SK iqiix ra-'i.' -l j 30ii , ...12Xf> j 312 'orkut of ',o()8 isnhold riiiilturt). . hIs 1297 j3tl " -"Itf 12% I 314 Location '". "'ropdrry Mcvhaiidw ra|ii-r-ni; lliiililing 1204 | OWi .Muvablfi MacUinfi-y l'i.il\v Vorl< Form 735 Caiiadiai! " 741 Imiil'li' liisiJinnoe, undor 7oT Imori'fl, Siilno^ratiiMi ol, 7ii3 Uciiistatt'MU'iil luiilor.... 774 1270 1 .110 MortKagoi?. Intoiefit of (Wl, 7r>.->, 1724 12:io I 3flS M'Htiiam'Or, " , . ..071'. 71K, 1723 17:»7 IS l'ro|)"'UY .IJIil . . 1203 SiarnV .St'.air ■' Stoclt i I'' tale ... .. '">attol8 I2;tt I ■■■lory 12.-1(1 ] :-'-tiiin i.!.-io ! 1- ■Yule 1207 I Stoc'V K.i'f, WrDiigUl, and in | Vrjtxi-t. ..1271 isr 4ll .Vtntu.'i; \>.8iir iiiof Soiiitty of Vn. . 2W r>fl 4!) !>,•< 43 J'olieifS of .43ii, 44«, riio ri/8 Co. of New Vorl.. 92 " •' .MartM ;il )» .siirani'e -'-4 ■' Hov. of Pliila.... .^Ci sb<:tion. I ■Infniri'd 15<; I Inauriii;; 1&^ 1140 ' .VBu ..if Firo t iiiler- i ^ 475! I'AOK. 234' PAIiK. 67 N.iiiu . 07 '* 4.31 Na|>Ii,(i, 22;) N'AiH V 1 wrMn;-« . • 223 F"i>"i. f ' .iL-y 249 CI(i>*i * ■, " U 1 2nrd» , , 846 .N *it>'.t ■ t :l< IfawvrO .14«i ' 'pn 640 Ntfjf'iti'>»rti 1687, 1084, 1770 ' 'J17 496 . ' .'arrlerr 1302 ' 671 N*w '.• ■ »ii.. . IU{ BO >••»»' V rk , Karly Flri« C ■» of 02 | rt» .... 3.S 1 JS3 .sKC'rio-"?. Now Y.itU Stavda-.-d Policy WO " "Jflders" .-1 166 Ki'W Zoalanil I'olicv .tmi 13S >'on-i:Oiioi\ii-cnt I'o|ioi71, 2321 Injured 1629 " Forthwitli. 1020 '(HS " Hi^iw.inablo Dili- :".*:? , I 60 Insurance Co, genee 101 1) " Waiver (if lOti! of oilier lusiiranci) '-'73 PAaB 702 (Hf.il > jLiimirintion uinii r •13B 'iK.ta-.ir.j, Cliaiiye of .. . B88 O'vo^iv u-ri of Huiidtiitts.. o PVCTI IN. I HACiK. .1604, !»5S ' 552 " Oni/'i-iitl '' li-nKAf. 1117 I ll.'i Opet PoW«-'. ... . .. .1013 I 123 ir;r* tt MiiitRt»g S[;cri(>jr. 1501 2S1 309 SEfl'IOK. Cfiuiso of Om- 1274 j)i'fF»i()ii8 Used I'i52 •Wa-m-.i' iViS. ,, 587 of \'i\'nu-a — .• f'**! " Tlilt^ '''^l iiiidiT Hc-iiisiu'- arii'0 1*7 tiouof "51 nisKiuns ill Prodi's m '^"l" ii;7t-4 840 ' 691 1485 ■M^... '.'.'.'.'. vai , 7:i2, 738 ol '•"« lifUHtioii. ....lOiifi, l'>!» (.j, TS3, T4J, 744 VorU Form "5 tli:in •■ '+1 ,h' liiHiirnooe, uiiilor 7i;T cm, Siil)ro>taUou ol, 71.3 stiitt'nu'iit, iiiidor.,.. 774 ;orest of....(Wl, ">.■., U'24 .i7'i. 7W, 17'J8 uu.TV --I'^T IK „,,., :„,. i.ly ot Vk. . !W 1' i.'.s of..4:i!i, 448, „i, , ,_,. nf New VorV.-. 92 • . Mart!> ^1 •anc'i? " Sof. of fliil:i.... ■■?& itanrtiu-a Policy 4rt0 'HUlerR" ^*l IVulioy 4"8 ,.|,t, I'niicioa ■ ■'t'f uUveli.^ "31 )nn.,nr«1ns. Co lOl ,ssbv(!w Agout lf>71, '-';i21 ■insured 1«29 FortUwUli..l02'.l. '.»49 Rciwonablo DHi- g.MU'K ti»'iJ W.'iiviTof, 1'>I*! M.lier Uisur'i'"^" 'j^'' ai;ori(>tf. , IWl 'JSl 1109 INDEX, 899 ^'^'"'' SECTION. I OHA Open Fire, Proofs of I.obs uiid«r. . .J>i78 | l.'4 " or 'rrai)8|)ortPi.)icy ;!1,T. ilii I 1"7 " rViiii.-erdam Formof 814 I Vi'J " (.lomniol J17 I 607 Oral AgreenuMit laiifi j 507 " Gonlrai^t J.'iiiS 200 •' KeprtiMi.'iicatioii 533 | 10 Ordinance ol Aiiistordam ;i7, no , ^f " " Harceloua 30 ] 882 Origin of Fires jr,^i | 680 " lriv..stiK«tiou .,f .157M| SM " by Accident ijsi! ; (585 " " (.landBHBiiess 1687 i 58« " " Oesigu Infill P 5M4 Origin, by Kxploaiong ,5^4 R83 ■' " Spoiitaii.Hius(;oMibu8tioii.lM8 582 " " Cause IjMkiiowii... ....],r,8o 6Hl •' 1^1 veil i,i rmof.... ]m3 S«<> " l"''eiidia>isiri and Arson .. lr>8!l 3Kl Other InsUMii.H) ....er,» iKl8 :«W " llinileU Ainouiifg ,.."..' \„ts 3!13 - Noticoof .j^y^iom 82 •• Ptrniits for ...071 W •' Ki'Mowalof, j(,jj Not„d in Proof.s , 1803 U■^ Over-Valiialion .jpy 90 Owiiersbip. .....luil ^^"*'' HKCriON. 56.'i rai-ai)el Walls j^ot 507 Parol Agn-.ptneiits 117, II8, ];<(»3 " <;ont,laCf l;i;|.-, " '>.V ^fail 1.103 " Evidouco i.(.ji '' when Adiniasiblo ' not " 507 60!) 517 5Ui f''*' ■• •' not " 14''7 CIl Partial Loss iQr^ 5'>'| " Insiinini'o 1345 PAOK. .•^14 Perpofcual Insurance li Potty Avorane " 43 Philadelphia Contrihutiiiishli A l> 1761.' It Plant "■'■ U.'8 I 328 J'late, Silver ■■i;i3 " aiass '. IIM " SKCTroy. 241 78 10 810 ■iJJS 91 PartieipHtioi) liisiiranco •'^ " division of Profit. 9^! " Scrip 8 Partioiilar /Vvernge 680 Particiilar.-i of Loss '.', 280 I'tirtuor, liiHurahle liiton-stof 501 Partiiershii', . . in . 236 23'i . 2:iH : 17iiiJ i . 1867 I ..'377 1 379 107 127 133 .501 504 504 403 506 506 < ii'li'nsilil.,' IS'iniinrii, , Porniaut, Agency . . 3-4, 10U4, 1370, 1M72 346 130 138 .1.381 I . 1832 j .1383 ' . 1.353 i 198 .530 6r.7 6,')7 170 120 317 I5;i 177 " & Co," use of 1.391 j " As now Constituted, 1302 i 497 Pashengni- Carriers ];^^^ I ^•^' " " " Ingnrahlelnler- j «st of 173.1 I " Liability of. ...Man I Sleeping Cars 1370/. j 37.", I flttems , , , , IHO*^ IS3 When iioi Insurahle 1802 j 728 6'." Patterson's Waridioime, Losh id 1673 40i) 2:il Pawnee 701 Payment of Claims. 704 70,0 684 I 135 1962, 1972, 1075 1 IfO in Sixty hays 11162 ^ 13;i Improper Claims 1067 I 187 into Court i.)7o j (113 In Order of Date 46, 1089 | 116 Kfileasoon 1973^ i,,7,i : ,,q Keoeipts for pivi, 2370 ' la by Or.afts upon the Co.. , lir;r> i 4 288Plodsot, •■ o __'_,.-2 61 P.diey, The 138, 14,^ " .Xltoratioii of 95.) American Forms 4.35 AmstenlauL " 6.!, 314 " Blanket . 327 " Cancellation ..if kx6 \[ Colonial. .- 4Mb, 410 Compound or Collective. MOV, 3H, 2079 Concurrent :j4f Con.xtruction of ].(ji •■' Continental Forms. 124 " Couttan, Inland 317 " l)iliveiy o( 9.41 " KiiKlisb Form 335 -Average. 413 " Kntirely of lyg " Kxce.SH 3._;g " Kxhansted '2(153 " >''iie Guaranty lofig '■''"all "8 .336,303 French Form 425 '' OeiKMal 3.17 " Cermnii Form .|2g 158 071 01 223 138 Hamburg •• I.onjr-terni Lca>ichold M.iriue Mix.td ' Factory Mutuals N'atioiini Hi.ard K(u-m Non-coi 432 , 288 275 40 2.33 2.34 47,-5 icuirout 343 900 IXDKX. PAOK. afiCl'ION. 115 Policy on TnterBSt 28*( 113 " Open 'Ml 125 " " Fire or Huiiiiiiig 309 tH " r.'riwtual iM 81 " Priiiin.l Form of I4T, 200 37r. " lic-foriii <•!■ !«! H7 " Kcqai^ltes of 1">4 121 " Spccil, ■ lOfi 125 " Spi'eiti.a ;108, 307 229 " .Staiidai-a, Conn . . 477 2,''.0 " " Ma«8 479 230 " " N.Y 480 120 '• Transport 313, ;tl4 120 " ()|H II Trimsijort 31fi 12'J •' " (Contract 317 729 ■• tnnxlinuHtol 2054 113 '• Viihicd . 292,18!)8 3l«l " Void 997 391 ■• A'oiilable 1002 115 " Wagct or Gaming 2S0 407 Purl* Housi), Cloustnicil 1206 593 Preliminary Proofs (Sot) Proofs of I.09S.) Premium 32, 77ri Payment by Note 79!t •' in Ailviinot! 770 Acknowleilgment of.. . 777, TTn P.irol Agree.nient 779 t.mai fcr-iay I'aymont 780 Uetum 931 I'aynioutfo ISrnker 780 Wiiiver nf Payment 70.S Days of ( irace 7 84 Heservfs 1438 unacr Void Policien. .801, 802 in Kind 792 iriiearned 931 Priie ICOSfl 7 l'riniii,n!ft and Average 8 492 IMii.ip.il, I'lic 1.140 04 Prindii Kuiinsnf the Contract,147,200 r)03 Prol>!ii>U' hoi's in Case of Fire 1.M2 478 Prodiioe. 1300 1''6 Protit!!, Iiisuranpt>-Proinpt ))ay 21 397 •■ liayHoflhe 1223 I l'Ui>0V8 or l/OSH >- jC7r ■• Preliminary 1008,1802 87.5 " Fnrmsfor 2356 685 •' Snppii nientary 1879 ! 884 '■ under He-insurance. .1877, 2,307 I 681 " .iHKvMlonce 1870 I 686 " Keiiuisiteaof I8!U 1082 " liy an Agent 1874 1079 " "Deliver in" 1808 j 682 " .MI.siaktBand Omihslons l8Tli» j 080 " PartieiilarH of i.oss 1807 ' ,sM) " by Kailroftd Cumpantes. . . .2:168 j 686 " Bhall be Satixfactory 1888 1079 " Specitied time 1805 : 083 " under Open Policies.... 1876 1 084 " Waiverot 1164,1878 ,082 '• Wlio may make 1873 ; 475 Property 1291 |47.5 " Aiisolute 1291,1911 I 475 " Pergonal... ''^91 1475 " Qindilie.d 1291 ' 689 " Ex.indnalionB aftor 1,088. 1695 ! 475 •' Kst.lte 1293 ; 579 " Preservation of 1673 340 " aiaDiHtauee 867 ; 1.32 Proper Vioe. 20, 1667, 1673, 1711 I 20',' ProposalH for Insurinjj 454 \ 87 Proi)rieti>ry Stook) luauranee 228 j 139 Pro Kat a Clauses ;163 pil , 142 I 117 ' 720 " Forms of 3.59,302 Kxainple of ■'i05 " I'hreo quarter (laiiso — ,3.S0 " vs. Ha' able PiO|Mnl;ion..2040 " und'T Ue-insuranee.... lOl.s I ,'>13 Protection Nete .1113 I 47k Provisions 1300 ; 01:j proxiMialeCauso of (j)s» 1660 j 022 Pablie Authorities, Acts of. 1070 ■tiXi ' Knumies 1360 R 1'.\(;K. SICITION. 301 lliiilway CompaidiiS 723 501 " an Common Carriers 1371 502 " " Warehmigemeu" 1375 502 '■ Liability , if 1372,1376 88IP " Proofs ot lx)H» by 2358 II Itangeof Subjeots22,423,2ia2,2172,2173 852 " FrMie 1502 727 Uatableii.i. I'ro Rata Proportion. 2950 6-1.3 l{!ite8 ; Hating 1477 lAt.F., SKCTION. .^51 Haie.' : Table of Fiafiis. 15iiO 6«t KatinK liy Selu-diile 1528 730 He-adj\istinent of .Vpporlionment '..'(irni 393 Keiisonal))'! Diligenee. . .. — inin, 1935 (,07 " in Notice of l.ogB 1649 (;79 " " Furnishing Proofs.. 1>GS 690 " " " Magig- trate»' (^oniticate..1934 729 Ke-assesgroent of Apportionments 20,55 SEOTIO*. t(>vk» 1150 iwilet 11*3 ,ha 1146 •tre 1H7 i!«entatloii8 M9 ,Itay 21 the y^-a ary Hl(>8, 1SB2 r HlWfi fiitary l^^T!) '-insurance. ISTT, 23(>7 lice WO esof IW'l ■ out If^T* r In" 1W6 i iimi OiiiihslouB rSTlit Hi-f of Loss 1S()7 >ail Coinimnins. , . .-■i58 Siitixfuctury 1S»S t time ...18t>5 pin Policies ISTti ot 1164. 1x78 y mako 1H73 Ur»l E, l'»U, T.'ll i,'.' VJS.l .1 i'.-n aliouBaftorl.OBS.lf.ns 12!« atioii of Ifi'.) tiiuee ^''^ 20, 11567, lfi73, ITU isuriiiK '*''>* ook) Itiauniuro 228 e» :»» 8 of 359,:«i2 ipln oC 365 1 quitrter (Mause... 380 iial'lii Pi-oport.ii)U..201(> r Kfi iiismriini'.e.... 1l>l(* ,e ..1U3 1300 so I'f Lo?8. .. ities, Acts 'if. 8 . UiOO .1(176 .13tiO INDEX. ^^^ J> A/jo; 6«.. lehu 1, ,„g (Seo l{<^in»t.tm„<,,„). ! m Ko-in.uror, Deforce of ''''■"°''' »J2 KeiMpt, All Interim ' ' j. . , ;, ' «'""^'; Am,„„u of Insunuice.. ..ir.U 8«« •• for 1.0S,.. .:.■.•: ; L "T'^'"' "•"-«•• '-y ,680,1789 ™« '•. ■• Who may«;;o::...mi ;;^2 .„ '-..«-e.o/ ,68« jf ■^'^•""'"•r, Ins.ir.iblo Interest .... 702:^4 410 J{e.i;i)nveyaiiee -fio-u-i.. I 37(1 Ketoriii .d ihe I'oii.-y 3^7 '■ Krr.irof l.'act, ." ,' 'ilH * » • ■ • . . " Law «f'-' K-f'W.fof M!,giH,naeto(«,tii-y 6()' Ko-iii8taienient *•;■' ■' of liuilitintrK 674 «'^P " Kailway 3!;5 Ku-inBuraiiKe . . 408 "" 'Hi '»72 ' 3»2 Koncwal J{e,„,ipi„ ';■;;■■ W.iivpro/ Oomlitioiis. of othei Iimuraiic, .. CoiiiiiiiiouH Insurance. after Sale um . 951 . 1153 . !ir>8 .11130 i>!3r. 1 1837 « 3!M 345 of tJbattel Property ,3;i6,18Sl ' 2fi 1(19 KetitaiulI.eHfl,, [>o|ici,.L... Ui) " AverdfieClaime In . . 110 " Subrogation fioi UeporiiiiKlo theCompanv "">(■ Uoiireflentatiun 30lt 107 403 40!) 39« -88T tm m 4M m 40O 40S 400 404 406 884 31XJ ....IBM .1(116 by an Agent \t]^ Coiit-rael „f lojy '-'oiieealmont uniier.iose <;oiitril(iifion uniUr.KMl t'ouiiter In.xuranec.KWa 8 270 '&'.t 261 S74 884 ion 885 - 208 .... 2i3 ... 2V4 .... 1627 614, 540 Adiniiative f,\% Proniis.sory sji) ^'■«l '5,33 Material 022, (>t4 IniMiaterial ,-)23 l''- 154 " Fr;.iiee ... ...1019 Indivi.iiini (;oiniia- "'"« 1023 I-i)Milaiion(;)aii,se. I04B *laj,n-.tniteK' (.'cnift- ''■■'"' 10,7 Misrepresentation, "'"'w 10l« Orit'inal rnsiiroit. , .|o;i.) OUior In.si 931 mranco, ;'IN Poll -y Korni . l"ro l!ata(:iaii.su.s., Kffeet 64 Helaliuiory Taws !.".'.].53fi 3T3 HeturiiC,i,nnii.s8ioi,g ". ' .,, I '''^ 1 reimiiinn 289 Keversioner, lusur.iliie Inten>.Mi „, - ■,,. ,. '.'7.5,1725 1 Hhodian l.,iw of .Average .} 64 Rhode IsUnd, Karly HreCos. of. 104 '-■•■' '«-• 1674-3 '^'' !"^'^' ^l'" 158,1480 ^V^""'" iw ■'■'' '■ F"-'-proof. i,-,u7 U-)4 " .Mansard ^yg 33 Royal UNchai.ge Asaurance Co. of London, 4;), 60, I45 " Policy of ,'i.j5 Kules for Apportionment of Locs. iSe ir>3 o„u ,, . ''*' "'"iW*? Insurance, 1019 399 Ke-in«ured, The. ... 1 , 401 Ke-iusurer Thn " *M ■" ''"-^sia. Inoiirauce lu ' 1039 V|iportioniueut.) 73 SKI'TION. of Basis. l'''"" ,.dole if''^^ \ o( .\pporlioiinient 20,'lt) i!i«en.-e .......1010, 19,35 Notice of low 1649 FnrnishiniJ Proofs.. 1^68 IVlapis (rates' (•eniticate..19.'-l4 t of Apporiionments .'"So I'AOK. 829 .Safes, Goods In SRcrio.v. 6«8 " i-on,eiaus«.'.;;;.. ,!!; Ml Safety I'und Law ,'?', 631 Salesai .Auction..., ,!;* 662 Salvage .... ' 'ir«';i''' eo,i .. . 1532,1596,1779 11 .. T l'*80 ^ ' liOHS ,j. j 435 Saltpetre, Keeping et'... ,,47 m .saving Property at Kires.V, ikt. H80 SchediiloA , i "*^ •• Artioies::::;:::::;;:::;;?2i I *''^'"'- SEorrtw. : 880 Schedule B 1606,1616 2.306 [■"'O " WMfng l.-,26 5S Seal, The ,..5^ ,yjj, 45 Shade '('rees ^2 448 676 Shafting, Coupling is,),, 295 Sheriir, Insurable Interest of,..,,. 701 II Shoddy ' r,p^ 121 Short Insurance 294 '" " ■' onBuildiiigs 298 I'^l " Katea ofM 362 " ■• Table, Annual ].!.902 T^ I i 90: INDEX. I'AIIK HKOTION. , 363 Short Hatt* Tabl«s for Toriii I'oll- cius lll.'l I W7 Skyli^lilK 161" I 6X\ SlaviK, .Sickness of, Piupf r Vice 1714 j r>0(l Mociiiiid Ciir Cos 1370/1 I 431 Solii but iiol Doliverod l20r>,llM j 459 " Nut iiiuiil Boiu il Aotion on 1227 ! 42 Spain, luriiininuij iu .... 75 I 3U1 S))!irlv i;i»kn 724 j 124 Siwcillo I'olioioH 306, 2177 | 124 •• Subjects 307; 11 .Specio 24 j 124 S|)0.ili«il Pollu'ies .■}(>«, 302 ! 381 Sp' liiiUoii '.»67 j OU Si")ia!nu"i>us Combustion, 1583, 1667, IB73 I 229 SlHiHliirii l'olicit!» 477 230 ■• Ma.. Til. tl 15.)6. 1602,1771 | 147 Three-iiuarter Value riauso 386 i 148 •' Loss Clause ,389 1 148 " Hamburg Form of. .. 3.S9 j 148 " New "rlo.vis " " - 389 i 690 Title. 1911 1 2S3 •' Materiality of 650 I TAOK. SKCTIOJf, .329 ,Stire Furniture... 816 ti8 Sub.ii'Pt of hHuranee. ... l.'iO 664 Sulirogalion 1821, 1S31 306 " of Mortgage Interest .. 789 066 " Clause 1827 667 " under Transiwrt Poli- cies 182i» 69 Subscription of Pollry ififl ,57 '• In France 116 70 " Xateof 161 89 " by AK-nt 166 676 Succosgi vo Losses 1H!W 677 " uniler English Polieics, 1860 2(i7 Suggestio Falsi 668, 'M .32 Snn Kiref)m<... London 6W, 1674 686 Supplemenlary Proofs 1889 690 " Interest, Title 1911 6S9 " Amount of Loss. 1899 691 " .MaKistriites' Cerli- fleate 1914 690 " Oeeupation 1912 691 " Origin of the Fire. 1913 687 " Other Insnr.ince 1892 t*7 " V'alui- of Prop,;rty.l89T 576 Supplies, Mill 1801 276 Suppre.*sio Veri 692, 605 62!t .Surplus : Insuraneo Ueserves 1 151 Survcvs iSee " .\pplii-ation "i, 447 Suspension ot the Conir.aot 1 192 430 " for Breach of Oomlition. 1130 596 Suspicious Claims I607 I I'AOK. SECTION. 269 Title, .Mlsrepresoinlation of .581 ii9(i Time, lissenee of the t'onti aet, 186,5. 19.34 69 " UmloolareU, Open 163, ,301 306 " Tables 915 .368 " " How to use them 916 657 Tinned Iioors 1614 iill Total Losses..., 1658 656 Tools ami Implements 1798 3)1 Trade Fi.vtnres 826 l2fi Transport (Inland) Policy 313 127 '* Amsterdam Form of .,. .314 129 " Open 316 129 " Contract .317 2!ia Trustee, Ins. Interest of 703 521 '■ process 1436 u PACE. SECTIOJf. 673 rt>errim;e Fidel 134, 1666 427 IJnau I orized Use 1119 631 tndamagcil Goods 1704 67 IndirATiter, The IM ImUvldual. 39,46 I'AHE. SKCTION. 2'.i9 Underwriterlns'ble Interest of,718,I732 278 " Knowledge of 622 372 L'nearnoil PrLMuiun.s 931 60 Uneiiualt'ontraet, The 134 729 I'liexhausted Policies 20.54 MFCTIOS, Ml6 nice 1 fiO irei, ISSI rirlgiige Intere»t .- 739 56 1827 r Irai\Bi)ort Poli- 1 1820 \.ll.7 16« raiice 116 of 1«1 Rt'iit 166 9 1858 KiiglUh Polloieit, iHfiO . , RiiH,,i!)l London 6\<. 1(>74 JpootH -...1»S80 nliMCst, Titlf) litll Mnoiiiitof I.(iPS. 1899 viagistrateB' Certi- tirate 1914 A'tupittioii 1912 Jrijjliii of tho Fire. 1913 HhtT Insuranop lh9L! i'ahu- of Priipi;rty.lS97 1801 592, WIS 11 CO Ui'serveH 1(51 ppliialion "). eCoiilraot 1192 each of Condition. Ii:i0 lis lt>»7 SECTION, Milation of .581 the ('onti ai;2 iuii.H 9.'ii ■t, The 134 licies 3054 INDEX. PAOl;. •a Union Firoomoo, or Double Hand- In-lland 544 Uiiiti'd Kiiiir,!,,,,, 'I/'uri .iwi I, ""'"K<'"iii iarift.lssoc 14S1 4^9 l.nooeup.tU li„iMi„«a gg,, „.., M LhKgij 2Ji I'AOE xii Usage i"jf of. 42«i i:»e " ■•-^ " ' "aiitliorized. 452 L'sual Ci PAdK, fl« "Hluo 881, 1125 till I. .so '' itiKxcliangt, '.".'.' '•?'■! imi". „ ."*" -M, mm, urn uo Market Value rr> «al«« at Auction not always ^videnoe ot . " ,7,,, «^1 " Appn-ianonin.:.. .; <«' " I'epr...el>,tionii,. ««7 •' Ini'roofsof U).s».,' 6.36 " ..f Insurahlolnieroms!'.'. n;; II.. \ allied l>oii,.v '.'ho is m ValuHiio.i, Mat«riality'pf. .'.■■.""■ ** 82' fi27 627 627 682 633 622 L Burpeii I'owor PAGE 283 \',tnd. iiimiKsion Claune. 1'03 ai-'OTioN. 222 1124 1119 •I-'OS. 1^.27 1076 'iKfrroN, 1M6 1897 650 I 6»7 w 290 V,.„Z' '""""'■'" '"""--'-f-'-- 6T3 fX'7 V<.r|.Hl A,,,e„„„,„ " •■«'<2,717 ^'" ^^■^""'M'mMHnceon '* "■•■i Moi-, iTojior ■»!' Vir^Miii„_ (,;ari" m Void (.„ii,,,e„ ^91 Voldablf; " .,' __ 4S9 VoliiiiU'or Ago'ii '""- ^"" " in'irle. ''''' '"^ "Jl....s.l.ol,|j'r,.p,,ty, 19(« ,.'^:T"'^' 1908 '^IdleaiidMaolii 1274 ■••••■ ....20, ].((;:. ,7, J UroC'o. of ,j„ ■ m 689 looiy. lJX)7 VAQK. 25 M'afror or a SF.OTIOS. '"""I'lgOmtraotM... 4s 2S7 4.37 Waiver 440 I'AOD. 201 '<*, 50 'J6r. Warranty 8E(. now. 606 " eos " 439 -I 344 279 <• 446 697 " 325 .' 684 553 Wall-. 563 553 Inipliod , ■ of Xolice of J.nss of otiior liiKuraiine... Hr«ao)i of Condilioii, . uiidor IJoMewal Conooalnioiit J.iodiMi.i.,i, (■|,,i,gg ■■" M .1161 .IKvt KMfi ■. 979 . 1158 8S.S . cai .11N6 .19,3S . 798 1878, 1882 C'oritinuons. "f iJiagrum. J^-"ipr(.fi8 (Jeiifiral Implied I'roof of. 540 538, 606 ... 566 • . . 662 ■ 563 ••• 556 267 261 266 265 266 361 Wat«r-worltV.' " ^"l 657 WolMioles. '"~^ 8.S WestiniMsu.rsi.oil'iv ■'"'^ 682 '• .. ,,.. .. ■•. 34 iKi»lrato«'(\.rHfi,,ate J'^VMientof I'romium.. I'reliniin.ary Froofs ^''''''"••. '^^Ji"""' " " "lilke f'rooff. r.: war..o;i,':;;«.-;-,;; ,-;s ' -^ , " Br:'! " '^'^"--;,:^ '/' " i^-l«avr;';,«"' t I ^;; ™«'v'»I'owor Interest: ';Z «^ " i*-eipi o^; r;:::;s; '" '' "^"' ^««'-^ ^ «-<> p^p„;;- . z