Premium rate and premium ratio . The former is computed by dividing 

 the amount of insurance into the premium of a policy of one 

 vessel; the latter by dividing the sum of insurance amounts 

 into the sum of premiums of a niamber of policies of a group 

 of vessels. 



Protection and indemnity ingurance . Protection afforded under this 

 kind of insurance includes liabilities of the vessel owner 

 arising from damages caused to other property (except collision 

 ■vrith other vessels) by the operation of the insured vessel, 

 liability arising from personal injuries, illness, or death 

 of captain and crew, and unusual expenses to comply with 

 Government regulations, fines and penalties, arising because 

 of violation of law under conditions, clauses, and limitations 

 provided by the insurajice contract. 



Reinsurance . Part of the burden of risk of an original insurer 

 being accepted by another insurer upon payment of a con- 

 sideration therefor. 



Sue and labor clause . Authorizes the insured vessel owner or his 

 agent to defiray expenses which he had in his attempt to pro- 

 tect the property and save it from further damage after loss 

 has occurred and care for it as much as a prudent uninsured 

 owner would exercise in regard to his property. 



148 



