INSURANCE. 



the ship be suffered to lay there for a 

 length of time, with the owner's privity, 

 the insurers are not liable. In English 

 policies, it is usually made to continue 

 only until the ship has moored at anchor 

 twenty-four hours in good safely, and on 

 such policies the insurer is liable for no 

 loss sitcr 'hat time. 



. To charge the insurer, it is not enough 

 that a loss has happened at sea, it must 

 appear to have happened in the course 

 of the voyage, and during the continu- 

 ance of the risk insured. Upon goods, 

 the risk does not commence until they 

 are actually on hoard the ship, and there- 

 fore the insurer is not answerable for 

 any loss or damage which may happen to 

 them while they are on the passage to 

 the ship, and, in general, the risk on 

 goods continues no longer than while 

 they are on board the ship mentioned in 

 the policy, and that if they be removed 

 from on board that ship and landed, or 

 put on board another ship, without the 

 consent of the insurers, the contract is at 

 an end. 



Policies, with reference to the reality 

 of the interest of the insured, are distin- 

 guished into interest and wager policies ; 

 with reference to the amount of the in- 

 terest, they are distinguished into open 

 and valued. An interest policy is where 

 the insured-has a real, substantial, assign- 

 able interest in the thing insured, in 

 which case only it is a contract of in- 

 demnity. A wager policy is a pretended 

 insurance, where the insured has no in- 

 terest in the thing insured. Insurances 

 of this sort are usually expressed by the 

 words interest or no interest, or without 

 further proof of interest than the policy, 

 or without benefit of salvage to the in- 

 surer, and these are wholly illegal. An 

 open policy is where the amount of the 

 insured is not fixed by the policy, but is 

 left to be ascertained by the insured, in 

 case a loss should happen. A valued 

 policy is where a value has been set on 

 the ship or goods insured, and the value 

 is inserted in the policy in the nature of 

 liquidated damages, to save the necessity 

 of proving it in case of total loss. 



Every fact and circumstance relating to 

 the contract of insurance must be stated 

 with the most scrupulous regard to truth. 

 The voyage insured must, therefore, be 

 truly and accurately described in the 

 policy ; namely, the time and place at 

 which the risk is to begin, the place of 

 the ship's departure, the place of her 

 destination, and the time when the risk 

 shall end ; whether on goods or on the 

 ship. If a blank be left for the place 



either of the ship's departure or destina- 

 tion, the policy will be void for the un- 

 certainty. 



A warranty is a stipulation or agree- 

 ment on the part of the insured, in nature 

 of a, condition precedent, or thing abso- 

 lutely and strictly to be performed, as the 

 very basis of the contract ; as that the 

 thing insured is neutral property ; that the 

 ship is of such a force, that she sailed, or 

 was well on such a day, &c. ; or as that a 

 ship shall sail an or before some given 

 day; that she shall depart with convoy; 

 that she shall be manned with such a 

 complement of men, &c. These warran- 

 ties are either expressed or implied. 



An implied warranty is that which 

 reasonably results from the nature of the 

 contract, as that the ship shall be sea- 

 worthy when she sails on the voyage in- 

 sured, that the voyage is lawful, and shall 

 be performed according to law, and in 

 the usual course, and without deviation. 



There are five things essential to a 

 sailing with convoy : 1. It must be with 

 the regular convoy appointed by govern- 

 ment. 2. It must be from the place of 

 rendezvous appointed by government. 



3. It must -be a convoy for the voyage. 



4. The ship insured must have sailing in- 

 structions. 5. She must depart and con- 

 tinue with the convoy till the end of the 

 voyage, unless separated by necessity. 



Neutral property, in the sense of which, 

 that expression must be understood in 

 this warranty, is that which belongs to 

 the subjects of a state in amity with the 

 belligerent powers. The documents re- 

 quisite for neutral ships are : l.The pass- 

 port. 2. The sea-letter, or sea-brief. 

 3. The proofs of property, which ought 

 to show that the ship really belongs to 

 the subjects of a neutral state. 4. The 

 muster-roll. 5. The charter-party. 6. 

 The bill of lading. 7. The invoices. 8. 

 The log-book, or ship's journal. 9. The 

 bill of health. But though the want of 

 some of these papers may be taken as 

 strong presumptive evidence, yet it is 

 not conclusive evidence against the ship's 

 neutrality. 



Representations. A representation in an 

 insurance is denoted to be a collateral 

 statement, either by word of mouth, or 

 in writing, of such facts or circumstances 

 relative to the proposed adventure, and 

 not inserted in the policy, as are neces- 

 sary for the information of the insurer, to 

 enable him to form a just estimate of the 

 risk. 



A misrepresentation in a material point 

 avoids the contract ; and the insured can- 

 not recover on the policy for loss arising 



