Gunpowder, Saltpetre, Phosphorus, Petroleum, Naptha, Benzine, Benzole, or Benzine Varnish, are positively prohibited from being deposited, stored or kept, in any building insured, or containing any property insured, by this policy; unless by special consent in writing, endorsed on this policy, naming each article specifically; otherwise this insurance shall be void.

Plate glass, in doors or windows, when the plates are of the dimensions of three feet square or more, also fences and privies, store furniture and fixtures, must be separately and specifically insured; otherwise they are not protected by this policy.

In witness whereof, the said

Insurance Company

have caused this policy to be signed by their President and attested by their Secretary, in the city of Hartford, and State of Connecticut; and this policy is made and accepted upon. the above express conditions, and is not valid and binding unless countersigned by the duly authorized agent of said Insurance Company at

C. D. Secretary.

Countersigned at

1869.

FORM OF ASSIGNMENT OF POLICY OF INSURANCE, TO BE EN

DORSED UPON THE POLICY.

Assent.

The property hereby insured having been purchased by Henry Jameson, the Insurance Company consent that the interest of James Sewall in the within policy may be assigned to said purchaser; subject, nevertheless, to all the terms and conditions therein mentioned and referred to."

Dated at Hartford, this 18th day of June, A. D. 1869.”

Assignment.

"F. W. Agent."

For value received, I hereby transfer and assign to Henry Jameson and his assigns all my right, title and interest, in

this policy of insurance, and all benefit and advantage to be derived therefrom."

"Witness my hand, at Hartford, this 13th day of June, A. D. 1869." "JAMES SEWALL."

Notes on a Fire Insurance Policy.

First. "In consideration of $50, to them in hand paid," &c., "the receipt whereof is hereby acknowledged."

The contract of insurance, being ordinarily without seal, must be upon sufficient consideration, to render it valid and obligatory. The consideration, in whatever form it may be paid, is called the premium. This is undoubtedly due when the contract of insurance is completed; but in practice, in this country, the premium in marine insurance is usually paid. by a premium note on time, which is given at or soon after the delivery of the policy.

In Life Insurance policies, the premium is usually partly cash on delivery of the policy, and a part in a note payable on call, with stipulated conditions as to notice, &c. In some companies, the entire premium upon a life policy is cash on delivery.

It is a usual condition of Fire Insurance that the premium shall be paid before the policy shall take effect, and where the applicant is notified that the payment of the premium is a

condition precedent to the taking effect of the insurance, no contract subsists while it remains unpaid; although the policy may have been perfected and ready for delivery.

But although, by the printed terms of the contract, it is stated that no policy will be considered binding until the premium is paid, yet the agent procuring the insurance may waive such condition, and give a short credit; and the delivery of a policy without requiring payment raises a presumption, that a credit was intended to be given. Of course where it is inferable from the facts of the case, that a credit is intended, the policy will be valid, (even if it contain such a condition of invalidity in its printed terms), though the premium has not been paid. Boehen vs. Williamsburgh City Ins. Co., 35 N. Y., 131.

Where a policy provided, that "no insurance should be considered binding until the actual payment of the premium," and the assured proposed drawing a check upon the delivery to him of the policy, but the agent requested him to let it lie, and that he would call for it when he wanted it, and it was not actually paid till after the loss: it was held, that the agent of the insured had waived the actual payment of premium, and that he had authority to do so. New York Central Ins. Co. vs. National Protection Ins. Co., 20 Barb., 468. The same doctrine has been sustained in New Jersey, Halleck vs. Commercial Ins. Co., 2 Dutch. 268; and in Connecticut it was held that an agreement, made in good faith, between an insurance agent, having authority to receive an insurance premium, and the insured, that the agent shall become personally responsible to his principals for the amount of such premium, and the insured his personal debtor therefor, constitutes a payment of the premium as between the insured and the insurance company. Bouton vs. American Mutual Life Ins. Co., 28 Ct. 542, and Sheldon vs. Conn. Mutual Life Ins. Co., ib. 207.

The Brooklyn Fire Insurance Company, through its president, agreed with the treasurer of the 1st Baptist church in Brooklyn, to continue renewing its policy and calling for the

premium when desired, until one party or the other should give notice of a desire to cancel such agreement.

Following this arrangement the renewals were made for several years, and within 30, 60, or 90 days afterward, the president would take the renewal receipt to the treasurer and collect the premium.

On the 21st of July 1847, the last renewal had been taken to the treasurer, and in September 1848, following, the property was destroyed, and the renewal receipt had not then been delivered to the treasurer, nor had the premium been paid.

The original policy stipulated, that "no insurance should be considered valid or binding, until the actual payment of the premium."

It was held, 1st, that this was a valid insurance by parol, although there was a provision in the charter of the company that contracts of insurance signed by certain officers should be valid and obligatory, as if under the corporate seal; that, not being an abridgment of the general power of the corporation, or an exhaustive statement of it, but a mere specification of one mode in which it might be bound by its agents, which did not prevent its power to contract otherwise; and, second, that the parol agreement of the president was an effective waiver of the pre-payment of the premium. Baptist Church vs. Brooklyn Fire Ins. Co., 28 N. Y., 153.

The general rule undoubtedly is, that as to stock companies an officer or agent may waive the rule as to pre-payment of premium, and in the two cases cited from Connecticut the companies were mutual; but in reference to mutual companies the general rule is, that no officer or agent has authority to waive a by-law or condition of insurance.

It was decided by the Supreme Court of Massachusetts, in 1862, that "a policy of insurance executed and delivered by a mutual insurance company is invalid, until the cash payment of premium has been actually made at the office of the company, if it contain an express stipulation to that effect; and that such a stipulation would not be complied with or waived by a payment of the premium to an insurance agent, through

whom the application was made and the policy delivered, if the policy contained an express stipulation, that every insurance agent, broker, or other person forwarding applications or receiving premiums, is the agent of the applicant and not of the company; although the company was in the habit of settling a monthly account with him, and he, after the loss, tendered the premium to them." They also held, that "the officers of a mutual insurance company have no power to waive a stipulation in a policy, which has been executed and delivered, that no insurance shall take effect, till the cash premium has been actually paid at the office of the company." Mulfrey vs. Shawmut Mutual Fire Ins. Co., 4 Allen, 116.

The same court decided in Brewer vs. Chelsea Mutual Fire Ins. Co., 14 Gray, 203, that "neither the president, secretary, or board of directors of a mutual company, have authority to waive a compliance with a by-law of the company.

In Marine policies, as well as in life policies, notes are frequently given for the premium, or a part of it, payable at a fixed time. In such a case of a marine policy, with the clause, "in case the note or obligation given for the premium hereon be not paid at maturity, the full amount of premium shall be considered as earned and this policy becomes void, while said note or obligation remains over due and unpaid," the note given for the premium became due, and was protested. It was held, that the right of recovery on behalf of the insured was at an end. Wall vs. Home Ins. Co., 36 N. Y., 157.

Under a policy of life insurance, to "terminate in case the premium charged shall not be paid in advance, on or before the day at noon on which the same shall become due and payable," if the day of payment falls on Sunday the premium is not payable till Monday, even if the assured dies on Sunday afternoon." Hammond vs. American &c. Life Ins.

Co., 10 Gray, 306.

Premium Notes are usually taken by mutual insurance companies, and are not infrequently received by stock companies, for a portion of the premiums due upon ordinary fire, marine, and life policies. The power to take premium notes is implied in the power to insure, and is inherent in all in