captain, master, mariner, or other officer, belonging to any ship, shall wilfully cast away, burn, or otherwise destroy, the ship unto which he belongs, or procure the same to be done, he shall suffer death as a felon" (64).

XIII. Insurance upon Lives.

THE insurance of life is a contract whereby the insurer, in consideration of a certain premium, either in a gross sum or by annual payments, undertakes to pay to the person for whose benefit the insurance is made, a stipulated sum of money, or an annuity equivalent, upon the death of the person whose life is insured, whenever this shall happen, if the insurance be for the whole life: or in case it shall happen within a certain period, if the insurance be for lesser term than for life.

The utility of this species of insurance is obvious. Persons possessed of life incomes are hereby enabled to secure, after their death, a competent provision for their families: and they are also enabled, even in their lifetime, in cases of urgent necessity, to raise money by way of loan, (which they could not do on mere personal security); for, by insuring their lives to the amount of the sum borrowed, the lender may be certain of having repaid the money lent in the event of their death. By these insurances also, the fines to be paid upon the renewal of leases, or on the descent of copyhold estates, may be provided for".

Several corporations and societies have been established for the assurance of lives. Among these the following may be mentioned: 1. The Amicable Society, established in 1706. 2. The Royal Exchange and London Assurance, in the reign of George the First. 3. The Equitable Assurance, 1762. 4. The Westminster Society. 5. The Pelican Life Insurance. 6. The Globe Insurance. 7. The London Life Association, established May, 1806, No. 48, St. Paul's Church-yard. The distinguishing principle of the London Life Association, is, that the assured are to be partakers of the benefit arising x Marsh, 664.

y Marsh, 664.

(64) For other statutes relating to the destruction of ships, see ante, p. 951, n. (22).

therefrom during life; the profits, when ascertained, are to be divided among the proprietors, in proportion to the amount of their respective interests in the society, on the most equitable plan, and are to be payable to them during their respective lives, at such times and in such a manner as the court of directors, under the sanction of a general court of proprietors, shall appoint. 8. The Rock Life Assurance. Company, (established A. D. 1806), New Bridge-street, Blackfriars. In this Institution, each proprietor is under the necessity of insuring a sum on his own life, if accepted by the directors, or on that of an approved nominee, to the amount of one quarter of the stock standing in his name. The representatives of the insured are to receive a certain sum at his decease, and also such addition as may have been made to that sum by the previous resolutions of the society, agreeably to the deed of settlement. The insured are either proprietors or non-proprietors. The proprietors are answerable each to a certain amount; they deposit a certain sum, and form a capital sufficient to answer all contingencies. The insured non-proprietors, have not any share in the risk; they pay certain premiums, in consideration whereof, at their decease, their representatives will become entitled to the sum insured, and will partake equally with the proprietors in such addition as may have been made at different times to each policy.

The making insurances on lives, or other events, wherein the insured had no interest, having introduced a mischievous kind of gaming, it was enacted, by stat. 14 Geo. 3. c. 48. first, "that no insurance should be made by any person, body politic or coporate, on lives, or any other event, wherein the person for whose benefit or on whose account the policy is made, has no interest, or by way of gaming or wagering. 2dly, That in every policy on lives, or other events, the name of the person interested, or on whose account it is made, must be inserted. 3dly, That no greater sum should be recovered, or received from the insurer, than the amount of the interest of the insured (65).

Whether the insured has an interest within the meaning of the preceding statute is sometimes the subject of litigation; as to which, it has been holden, that a creditor has an insurable interest in the life of his debtor, at least where he has

(65) Marine insurances are expressly exempted from the operation of this statute. See the proviso in the 4th section.

only the personal security of the debtor (66). But although a creditor may insure the life of his debtor to the extent of his debt, yet such a contract is substantially a contract of indemnity against the loss of the debt, and, therefore, if, after the death of the debtor, his executors pay the debt to the creditor, the latter cannot afterwards recover upon the policy, although the debtor died insolvent, and the executors were furnished with the means of payment by a third party, it being immaterial from what fund the debt has been discharged so as the creditor has received satisfaction. The general principle, however, that the insured shall in case of a loss recover no more than an indemnity may be controlled by mercantile usage.

Where the debt accrues by virtue of an illegal security, as a note for money won at play, such interest is not insurables.

In an action on an insurance on the life of J. S. for one year, and during the life of the plaintiff, but in case the plaintiff should die before J. S. the policy to be void; it appeared that J. S. had granted an annuity to the plaintiff's late brother, which annuity he had bequeathed to persons not parties to this insurance, having appointed the plaintiff executor of his will, and directed him to make assurance. It having been objected, that the insurance was made by a person not having any beneficial interest, Lord Kenyon, C. J. held this to be a sufficient interest to support the action, observing, that the plaintiff could not assent to the legacy, before the testator's debts were paid, without being guilty of a devastavit; and, being executor, all the interest of the testator vested in him. The cause proceeded, but it appearing, that J. S. was in a dying state, when the policy was effected, the defendant had a verdict.

Before a policy of insurance upon a life is effected, it is usual for the party (whose life is the object of the insurance) to subscribe a written declaration, touching his age, state of health, (e. g. whether he has ever had the small pox, gout, &c.) and other circumstances.

The substance of this declaration is recited, and the whole

z Anderson v. Edie, Hil. 1795, per Ld.
Kenyon, C. J. at N. P. Park, 640.

a Godsall v. Boldero, 9 East, 72.
b See Palmer v. Blackburn, 1 Bingh. 61.

c Dwyer v. Edie, London Sittings after H. 1788, Buller, J. Park, 639.

d Tidswell v. Ankerstein, Peake's N. P. C. 151.

(66) See the remarks of Serjeant Marshall on this point in p. 673, 4, 5.

is incorporated by reference in the policy at the end of which a proviso is usually inserted, declaring the policy to be void in case the insured should die upon the seas, or go beyond the limits of Europe, without leave obtained from the directors, or commit suicide, or die by the hands of justice, or if the age of the assured exceed years, or if the assured be afflicted with any disorder which tends to the shortening of life (67); or in case the declaration should contain any averment which is not true.

Such are the conditions which are usually required, varying, however, according to the regulations of the different insurance companies. The policy of imposing these terms is obvious; for if there be not any warranty or condition on the part of the insured, the insurer is subject to all risks, unless he can shew that there has been a fraudulent concealment or suppression of the truth.

In a case where the conditions required a declaration of the state of the health of the assured, and the policy was to

e Stackpole v. Simon, Per Ld. Mansfield, C. J., H. T. 1779, Park, 648.

(67) It is not to be concluded that a disorder with which a person is afflicted before he effects an insurance on his life, is a " disorder tending to shorten life" within the meaning of the declaration, from the mere circumstance that he afterwards dies of it, if it be not a disorder which generally has that tendency.

J. S. was warranted in good health at the time of making the policy. In an action on the policy, it appeared, that in consequence of a wound which J. S. had received in battle many years before, and which had occasioned a partial relaxation or palsy, he could not retain his urine or fœces. This had not been mentioned to the insurer. J. S. died of a fever. It was proved, by several physicians and surgeons, that the wound had not any connection with the fever. that the want of retention was not a disorder that shortened life, and that the party might, notwithstanding, have lived to the common age of man. Lord Mansfield told the jury, that the only question was, whether the party was in a reasonable good state of health, and such a life as ought to be insured on common terms. The jury, upon this direction, found a verdict for the plaintiff. Ross v. Bradshaw, 1 Bl. R. 312.

A warranty that the party is in a good state of health will not be falsified by shewing, that he was troubled with spasms and cramps, and violent fits of the gout. Willis v. Poole, at N. P., 1780. Marsh. 669.

* Watson v. Mainwaring, 4 Taunt, 763.

be valid only if the statement were free from all misrepresentation and reservation: and the declaration described the assured as resident at Fisherton Anger; whereas the assured was then a prisoner in the County Gaol for Wilts, there. It was holden', that it was a question for the jury, whether the imprisonment were a material fact, and ought to have been communicated.

XIV. Insurance against Fire.

By this contracts, the insurer, in consideration of a certain premium received by him, either in a gross sum, or by annual payments, undertakes to indemnify the insured against any loss or damage which he may sustain in his houses, or other buildings, goods, and merchandize, by fire, during a limited period of time.

A policy of insurance against fire is a contract which is not in its nature assignable": it is merely a special agreement with the person insuring, that the insurer will indemnify him against such loss or damage as he may sustain. The policy, however, may, and frequently is, assigned with the consent of the insurer.

In order to entitle the plaintiff to recover on a policy of insurance against fire, it must appear, that the policy was duly stamped.

The amount of the stamp-duty on insurances against fire is fixed by stat. 55 Geo. 3. c. 184. Schedule, Part I., and is three shillings per cent. on insurances upon buildings, goods, or other property, from loss by fire only.

It is necessary that the insured should have an interest or property at the time of insuring', and at the time the loss. happens; and in case of loss, the insured can only recover to the extent of his interest, insurances against fire being within the stat. 14 G. 3. c. 48.

The form of the policy used by the different companies is nearly the same. The principal difference consists in the

f Huguenin v. Rayley, 6 Taunt. 186. g Marsh. 681.

h Per Ld. King, Ch. in Lynch v Dalzell, 3 Bro. P. C. 497. but in Tomlin's ed. 4 Bro. P. C. 431.

i Per Ld. Hardwicke in the Sadler's Comp. v. Badcock, 2 Atk. 555. See the statute in the preceding section.