CHAPTER IX. 



INSURANCE. 



Nature of the Contract in relation to Horses, 175-177. Risk, 178. Fire 

 Policies, 179-181. Floating Policies, 182. Marine Policies, 183-187. 

 Horse Insurance Policies, 188. 



175. Nature of Contract. — Insurance is a consensual 

 contract to indemnify against possible or probable loss in 

 consideration of a sum paid as premium, (a) Under tbe 

 contract the insurer undertakes to be responsible for certain 

 risks, such as — e.g., perils of the sea, fire, death, accident, 

 disease, &c., to which the property of the insured may be 

 exposed ; being assured in doing so that he is free from such 

 other risks as may arise from the natural or actual condition 

 of the subject, or from the crime or fault of the insurer. 

 Thus, one who beat his mare with an iron rod so that she 

 died, was held not entitled to recover on a policy. (6) 



The essentials of the contract are a subject in which the 

 insured has an interest, a premium, and a risk ; (c) and these 

 are embodied in a written or printed stamped(c^) document 

 termed the policy, subscribed by the insurers or their agents, 

 and specifying the name of the insured. A policy usually 

 incorporates by reference the limitations of the insurance 

 company's charter; but if this is not done, and the charter 

 allows only a certain class of insurance, and the policy 

 goes beyond it, the policy is void. Thus, a policy of 



(a) B.C. i. 645, May on Insurance, i. 



(6) Western Horse, <i:c., Ins. Co. v. O'Neill, 21 Neb. 548, cited in Lawson's 

 Rights, Remedies and Practice, § 2206. 



(c) B. Pr. 457. 



(d) B.C. i. 649-650; 33 & 34 Vict. c. 97, § 118. 



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