INSURANCE. 



into the interest of the insured, and as a 

 consequence of the insured's having no 

 interest in the pretended subject of the 



Colicy, it follows, that the insurer cannot 

 e liable for any partial loss. 



INSURANCE lie. A policy of insurance 

 being once signed, the underwriters are 

 bound by the terms of it, nor can they be 

 released from their contract without the 

 consent of the insured. But an under- 

 writer may shift it, or part of it, from 

 himself to other insurers, by causing a 

 re-insurance to be made on the same 

 risk, and the new insurers will be re- 

 sponsible to him in case of loss to the 

 amount of the re-insurance. But the re- 

 insurer is only responsible to the original 

 insurer, and not to the original insured. 

 Thus stands the law on this subject in 

 most of the states of Europe ; but in 

 England, by the 19 George II. c. 37, 

 re-insurances are prohibited, except in 

 case of the insolvency or death of the 

 original insurer. This has been held to 

 extend not only to British, but also to fo- 

 reign ships. 



INSURANCE, double, is where the in- 

 sured make two insurances on the same 

 risk and the same interest. A double in- 

 surance, though it be made with a view 

 to a double satisfaction in case of loss, 

 and is therefore in the nature of a wager, 

 is not void. The two policies are consi- 

 dered as making but one insurance, and 

 are good to the extent of the value of the 

 effects put in risk. All the underwriters 

 in this case contribute in proportion to 

 their several subscriptions; and therefore, 

 if the insured should sue only on one of 

 the policies, the underwriters on that 

 policy may recover a rateable contribution 

 from those on the other. 



Of the voyage. No insurance can be 

 legally made upon any voyage under- 

 taken contrary to the laws of this king- 

 dom, or to those of its dependencies, or 

 to the law of nations, and it is immaterial 

 whether the insurer was or was not in- 

 formed that the voyage was illegal. An 

 insurance, therefore, upon a voyage un- 

 dertaken contrary to the navigation law, 

 is void. 



INSURANCES, risks against -which may 

 Ite made. Insurances may be made against 

 all the risks or perils which are incident 

 to sea voyages, subject, however, to cer- 

 tain exceptions, founded in public policy 

 and the interests of humanity, which re- 

 quire, that in certain cases men shall not 

 be permitted to protect themselvesagainst 

 some particular perils of insurance. But 

 an insurer cannot make himself answera- 



ble for a loss proceeding from the fault 

 of the insured. No insurance can be 

 made, even against the perils of the sea, 

 upon illegal commerce. In order to con- 

 fine insurances against real and important 

 losses arising from the perils of the sea, 

 and to obviate disputes respeciing losses 

 from the perishable quality of the goods 

 insured, and all trivial subjects of litiga- 

 tion, it appears to be the general law of 

 all states, that the insurer shall not be 

 liable for any average loss, unless it ex- 

 ceed one per cent, beside which, a clause 

 has been introduced into policies, that 

 the insurer shall not be liable for any par- 

 tial loss under a given rate per cent. In 

 England it is now constantly stipulated in 

 all policies, that upon certain enumerated 

 articles the insurer shall not be answera- 

 ble for any partial loss whatever ; that 

 upon certain others, liable to partial in- 

 juries, but less difficult to be preserved 

 at sea, he shall only be liable for partial 

 losses above three per cent. But this 

 does not extend to the losses, however 

 small, called general average, and losses 

 occasioned by the stranding of the ship, 

 and the loss by stranding must be an im- 

 mediate loss. 



Commencement and continuance of the 

 risk. In England the commencement of 

 the risk of the ship varies in almost every 

 case. In outward-bound voyages, it is 

 generally made to commence from her 

 beginning to load at her port of depar- 

 ture. Sometimes privateers on a cruise, 

 ships engaged in the coasting trade, or 

 in short voyages, are insured for a limited 

 period of time ; and in such case the risk 

 commences and ends with the term, 

 wherever the ship may then happen to be. 

 If a ship is ensured from the port of Lon- 

 don to any other port, and before she 

 breaks ground an accident happens to 

 her, the insurers are not answerable, for 

 the risk does not commence till she sets 

 sail on her departure from the port of 

 London. But if the insurance be allow- 

 ed, and from the port of London, the in- 

 surers are liable to any accident that may 

 happen to her from the time of subscrib- 

 ing the policy. When a ship, expected to 

 arrive at a certain place abroad, is in- 

 sured at and from that place, or from her 

 arrival there, the risk begins from the 

 first Jmoment of her arrival at the place 

 specified, and the words first arrival are 

 implied, and always understood, in poli- 

 cies so worded. The risk in such cases 

 continues there as long as the ship is pre- 

 paring for the voyage insured ; but if all 

 thought of the voyage be laid aside, and 



