Under a policy against accidents, it was held that a death from drowning was a death by "accident" within the meaning of the policy, and that, where a body was washed ashore from the sea, it was a question for the jury, whether the death resulted from natural causes or from the action of the water. Trew vs. Railway &c. Assurance Co., 6 Hurlstone & Nor., 839.

A clause in a policy provided in case "of a bodily injury to the insured, of so serious a nature as to wholly disable him from following his usual business, occupation or pursuits," £5 per week should be paid during such disability. The insured was a solicitor and registrar of a county court, and was confined to his bedroom for several weeks by a sprained ankle, and was unable to attend to his business. It was held that he was "wholly disabled," within the meaning of the policy, and entitled to recover. Hooper vs. Accidental Death Ins. Co., 5 Hurl. & Nor., 546.

SECTION 14.

Of Live Stock Insurance.

This form of insurance is novel in this country, and it is doubtful if the bases upon which to estimate liabilities to loss are sufficiently fixed, to enable insurers to make reliable estimates and do a safe business. The purpose of such insurance is, to secure to parties indemnity against loss upon the death of animals insured.

This indemnity is usually limited to two-thirds of the value of such animals, and the insurance is against death from any and all causes; and policies are issued against loss from death and theft combined, if parties desire it.

There is in all insurance more or less of moral hazard. We have seen that this element exercises a more controlling influence in fire insurance than in marine or life insurance. It is believed to have been found quite as influential in live stock insurance as in insurance against fire. The difficulties arising from this source, and the want of reliable data upon which to base an estimate of the risks, have been found sufficiently troublesome to compel some companies, organized with sufficient capital and well managed, to suspend their

business and retire from the field. Similar causes have also operated to produce the suspension of several European companies organized for this business.

SECTION 15.

Of Steam Boiler Insurance.

The purpose of this form of insurance is, to furnish to parties, exposed to liability from steam boiler explosions, indemnity against the result of such accidents, which experience shows will sometimes happen, even where every precaution has been taken to guard against such casualties.

The need

of such a system of insurance was met in England some years ago, by the organization of boiler insurance companies in Manchester and London, which have since extended their operation to all parts of Great Britain. One or more of such companies are now in existence in the United States, and are said to be doing a large and prosperous business. The amount of loss from this source within the last few years in this country has been very great. It is said, that within a period of two years over eight hundred lives have been lost by boiler explosions. The rules of the company provide for a system of thorough and careful inspection of all boilers under its care, with such frequent examination by a competent inspector as will tend to prevent the occurrence of explosions. The plan of insurers in this line of business is, to employ the most competent men, familiar with the science which relates to the operation of steam boilers, and, by frequent inspection of boilers and instruction of those who have the care of them, to avoid the causes which lead to these destructive accidents. A report of an association organized in Manchester, England, in 1850, with statistics in regard to boilers under its charge, and also in regard to those not inspected by it, indicated such a success, in diminishing the relative number of explosions and bringing proprietors of steam power and their employees having management of their boilers to a better understanding of the nature and laws of the force which they em

ploy, has led to the formation of the other associations now existing in Great Britain and other countries.

Such companies usually insure all property put in hazard by steam boilers, and, as we have seen, damages resulting from the explosion of steam boilers are usually excepted from the liability to indemnity under a fire policy. These companies, therefore, furnish the only means of indemnity against damages from the explosion of boilers. They usually stipulate against liability, except while the property insured is in the actual care of, and managed by, and used in the business of, the assured; and against loss where a boiler is placed in charge of a person known to be incompetent or negligent; or from an explosion caused by the burning of the building or vessel containing the boiler; or from any loss or damage. in case the weight on the safety valve, approved by the company's inspector and specified in the application of the assured, to be lbs. per square inch, shall be exceeded. Also, that the company's inspector for the district in which the boiler is situated, and the chief inspector of the company, shall at all reasonable times have access to the insured boiler and the machinery connected therewith, and that ample facilities shall be afforded the inspectors for its examination whenever they desire it. And also, that whenever any defect is discovered in the boiler, it shall cease to be worked until such defect shall be thoroughly repaired.

Policies also contain many of the conditions and stipulations found in an ordinary fire policy.

CHAPTER XVII.

Of Bonds.

Some of the principles which govern Bonds have been mentioned in Chapter V, in which they are spoken of as sealed contracts; but a more complete discussion, with forms annexed, will be the subject of this Chapter.

SECTION 1.

A Bond is an instrument in writing and under seal, by which the maker,-who is technically called the obligor,binds himself to another party, who is called the obligee, to pay a certain sum of money, or to perform some act or agree

ment.

A bond without a condition is called a single bond; but, in practice, a condition is generally added, which provides that the bond shall be void if the act be performed, otherwise it remains in force. The usual incidents of a bond are, that by its terms it is expressed to bind the obligor and his executors and administrators, (sometimes heirs also ;) that it is under seal; and that it is for the payment of a sum of money by way of penalty, which is usually double the amount actually due but none of these are, in fact, indispensable,—most of them are quite useless, and are inserted and made respectable only from the force and influence of a long established custom.

There may, of course, be a sealed contract to pay the precise sum intended to be received, with interest and damages: so a man may omit the naming of his executors, administrators and heirs, and the effect of the bond would be precisely the same; for, "if a man covenant for himself only, to pay money, build a house or the like, and do not say in the bond, "and my executors and administrators," yet his executors

and administrators are bound and shall be charged. Shepard's Touchstone, 177, 178, 369.

In England, the rules of inheritance are such, that it is said that the heir is bound if he is named in the bond, and not otherwise here he is bound to the extent of the assets of the testator which would otherwise come to his hands; as all a man's estate is liable in the hands of his personal representatives for the payment of his debts and the performance of all his obligations, and the naming or not naming him is quite immaterial. A Bond in the words following: "I, A. B., of , agree to pay C. D. Dollars." "Witness my hand and seal this day of A. D. 18

(With condition following), would have precisely the same effect as one in the usual form, as follows:

Know all men by these presents, that I, A. B., of

am held and firmly bound to C. D., of

in the County of

[this amount is usually double the sum named in the condition, to cover costs and contingencies,] to be paid to the said C. D.; to which payment I bind myself, and my heirs, executors and administrators, firmly by these presents, sealed with my seal.

The conditions of bonds are here inserted, and are, of course, as various as the contracts of men and the emergencies of business may require.

If the seal should be omitted from a bond, it would not affect its validity, if given upon sufficient consideration; but the instrument would be, technically, a simple contract, and not a bond.

The effect of the seal is two fold: first, it renders it unnecessary to prove the consideration; and second, it runs twenty years, instead of six, before it is, by force of the ordinary statutes of limitation, required to be paid. The statutes of limitations are, however, quite various in the dif