relating to travel and occupation. Many occupations are extremely hazardous, and for this reason the applicant engaged in one of these occupations may be rejected, or, if accepted, an additional premium may be imposed. Engineers and firemen are so classed. A clause relating to suicide is usually included, avoiding the policy in case of the suicide of the insured. Many companies waive this clause after a policy has been in force a certain time, as it is not probable that one would apply for insurance and contemplate suicide several years hence. If the insured dies at the hand of justice, the policy by stipulation fails.

5. Amount. There is no limit to the amount of insurance one may carry provided the premium is paid.

6. Premium. This is the sum charged by the insurance company for the risk it assumes and is the consideration that binds the parties to the contract. The amount of premium depends upon the plan of insurance. Three general plans are recognized, ordinary life, term, and endowment. In all cases the amount of the premium is determined by the age of the applicant, and does not increase in subsequent years under the policies of the "old line".companies. In the ordinary plan, only the protection afforded by insurance is considered, and the premium is paid throughout the life of the insured. The premium rate for insurance of this kind is the lowest of any life insurance. In the term plan, the agreement is for a number of years, and the rate of premium is higher than in the ordinary plan. In an endowment policy, two elements are considered-the protection, and the accumulation of profits. This is the highest in point of cost. At the end of the endowment period, a certain sum is payable to the insured, or to his beneficiary, if he should die before that time.

7. Assignment. The one holding the beneficiary interest has an assignable interest which he may transfer by means of an ordinary assignment. Policies are frequently used as collateral security, particularly endowment policies.

346. RECAPITULATION

In organization and management, life insurance companies in general are similar to fire insurance companies. In addition, many secret so

cieties provide insurance for their members, at a reduced cost, upon the mutual benefit plan.

The applicant for life insurance must give a short health history of himself, his immediate ancestors and his nearer collateral relatives. This is a part of the contract and if not true may become the means of avoiding it.

Life insurance may be procured by the insured himself, by a member of his immediate family, or by any one who has a pecuniary interest in his life.

The policies usually contain restrictions as to travel and occupation. If the premiums are paid there is no limit to the amount of insurance one may carry.

The three principal kinds of life insurance are ordinary life, term, and endowment.

The amount of the premium varies with the kind of insurance and the age of the insured.

The beneficiary under a policy may assign his interest.

347. QUESTIONS

What statements does an application for life insurance usually contain? What is the effect of false answers to questions contained in the application? Who may insure and under what circumstances? Must insurable interest continue? Who may be beneficiaries?

What are the usual restrictions found in life insurance policies? What amount of insurance may a person carry? What is the premium and upon what does the amount depend?

What are the three general plans of life insurance?

Under which plan is the premium lowest? Highest? Is a life in

surance policy assignable?

348. Introduction. The business of marine insurance is much the same as that of fire insurance. It is carried on largely by incorporated companies. The subject of marine insurance is very extensive and abounds in technicalities. A careful study of the subject must be made to become thoroughly conversant with 'it.

1. Time. The contract of marine insurance is strictly one of time; it may be for a specified time, as for one year, or it may be for a particular voyage. Both the vessel and goods may be insured. If the vessel deviates from the regular voyage the policy will be avoided, unless the change was from necessity. Deviation is frequently a necessity, as in case of seeking needful repairs. 2. The Risk. The risk is that of loss by fire and the perils of the sea. The common carrier is liable for the ordinary losses

caused by negligence; he warrants safe carriage, but does not insure against the extraordinary losses. The contract of marine insurance covers all losses, as fire, perils of the sea, piracy, capture, and extraordinary losses. The latter even includes general average, which is an assessment made where it becomes necessary to throw overboard a part of the cargo to save the rest, the sacrifice being successful.

3. Insurable Interests. As is the case in fire insurance, the one applying for marine insurance must be an owner or at least possess an interest in the goods. Since goods are frequently sold after insurance, the consent of the company to the transfer must be secured; but this is obviated at times by making the policy read "for the benefit of all whom it may concern at the time of loss."

4. Policy. The policy is the written agreement between the parties signed by the insurer, but binding both parties. The premium is the consideration given in securing the insurance, and is at a certain per cent. of the value of the goods insured. The amount is the sum agreed upon by the parties and may cover the value of the goods, freight charges and profits of the venture. In case of loss the amount paid is determined by proportioning the value of the goods, freight charges, and profits of the venture. but one-half of the value is covered by insurance, the company will pay but one-half of any loss. When the insurance is placed after the voyage has commenced, the policy usually contains the clause "lost or not lost," and even though the goods or ship were lost before the time of placing the insurance, such a clause is binding upon the insurer.

5. Warranties. Warranties affecting the policy may be express or implied, and are a part of the policy. Express warranties are express stipulations relating to the undertaking. It is needless to say that all such warranties must be true or the policy will be of no force. An implied warranty exists that the vessel is seaworthy at the time the insurance contract is made or voyage begun, and that the ship is properly equipped and manned.

6. Misrepresentations. Misrepresentations affecting policies may be classed as fraudulent, and as the result of negligence, mistake or accident. If of the former nature, the contract is null and void, irrespective of the materiality of the fraud. If of the latter kind, it is a question whether the negligence, mistake or accident is of a material or immaterial aspect. If material, the consequence will be disastrous to the standing of the policy, if immaterial, the policy is in no way affected. It is the duty of the applicant for insurance to make full and truthful disclosures as to the exact condition of the cargo and freight, particularly so in regard to all material conditions, and it is not for him to determine whether they are material or immaterial.

7. Abandonment. This is a right, peculiar to marine insurance, whereby the insured in case of loss transfers or abandons to the insurer the title to all the goods remaining. From the stand-point of the insured it is now considered a total loss. In order to exercise this right, the loss must exceed one-half of the value of the goods.

349. Casualty Insurance. Another class of insurance that is very popular at the present time, particularly so in the large cities, is known as casualty insurance. In this class of insurance indemnity against an innumerable number of losses and accidents is offered. Examples are insurance against losses caused by explosions of boilers, defects in elevators, theft of goods, dishonesty of employees, automobile and plate glass insurance. In fact, indemnity is now offered in almost all instances where loss may follow.

Marine insurance is strictly a time contract.

Deviation from the regular voyage will avoid the policy, unless the change of course is compelled by necessity.

Marine insurance covers not only losses by fire, perils of the sea and piracy, but extraordinary losses.

The insured must have an insurable interest.