INSURANCJE. 



inform the infurer of all material circinifl.'inces that were 

 come to liis knowledge at tlie time of making u" policy, 

 in order that th^ contraft may be fairly adiulled ; which 

 being a contradl upon chance, cannot be done, if one party 

 knows more than the other ; for equality in contrafts, by 

 the law-merchant, is effential ; but a proof of an intention 

 to make a deviation, will not avoid the policy before the 

 deviation is aftually made. See Rf.pkesextation. 



By an aft made in 19 Geo. II. c. 37. it is determined, 

 that after the firft day of Augull, 1746, no infurance fliall 

 be made on ihips or lading, '■ intereft or no intcreft,'' or 

 " without further proof of interell than the policy," or 

 by way of gaming or wagering, or without benefit of fal- 

 Tage to the infurer, and that every fuch infurance Ihall be 

 void : that it fhall not be lawful to make re-infurance, un- 

 lefs the infurer {hall become infolvent, become a bankrupt, 

 or die : in which cafes fuch infurer, or his executors, &c. 

 may make re-infurance to the amount of the fum before 

 infured, provided it be expreffed in the policy to be a re- 

 infurance (fee Reinsurance) : that all fums of money 

 lent on bottomry or refpondentia, upon any (liips belonging 

 to his majefty's fubjefts, bound to or from the Eaft Indies, 

 Ihall be lent only on the (hip or merchandize, laden, or to 

 be laden, on board fuch fhip, and fliall be fo expreffed in the 

 condition of the bond ; and the benefit of falvage (hall be 

 allowed to the lender, his agent or affigns, who alone fliall 

 have a right to make infurance on the money fo lent ; and 

 no borrower of money on bottomry, &c. fhall recover more 

 on any infurance, than the value of his intereft in the fhip 

 or merchandize, exclufively of the money fo borrowed ; and 

 in cafe it fliall appear, that the value of his fliare in the fliip 

 and merchandize does not amount to the full fum bor- 

 rowed, fuch borrower fliall be refponfible to the lender for 

 fo much of the money borrowed, as he halh not laid out on 

 the fliip or merchandize, with lawful intereft for the fame, 

 together with the infurance and all other charges, to the 

 proportion which the money not laid out fliall bear to the 

 whole money lent, notwithftanding the fliip and merchandize 

 foe totally loll. And, in all aftions brought by the infured, 

 the plaintiff, or his attorney or agent, fliall, within 15 days 

 after he fliall be required fo to do, in writing, by the de- 

 fendant, or his attorney or agent, declare in writing what 

 jfum w fums he hath infured or caufcd to be infured in the 

 whole, and what fums he hath borrowed, at refpondentia 

 or bottomry, for the yoyage, or any part of the voyage in 

 queftion. 



Whenever advice is received of the lofs of a fliip or 

 goods infured, application is to be made to the infurers, 

 and the vouchers produced ; and if they are fatisfied, they 

 will pay the money : but if they have caufe to fcruple the 

 doing it, the iufured muft ftay till the infurer can obtain a 

 more fatisfaftory account 5 but if nothing be heard of tiie 

 ihip in any reafonable -time, the infurers will be obliged to 

 pay the money agreed upon. 



In adjufting a lofs,, the quantity of damage for which the 

 (Underwriters are refponfible is {irft to be afcertaiued ; and 

 the next point to be fettled is by what rule this fliall be 

 ^ppretiated. The adjuftnieDt is ufually indorfed on the 

 policy and figned by the underwriters. When the lofs is 

 admitted to be Mnl, ;uid the policy is a valued one, the 

 infured is entitled to receive the v.hole fum infured, fubjcft 

 to fuch dednClions as may have been agreed by the policy 

 *o be made in cafe of lofs. it is merely in refpeft of total 

 Jofs that any difference fubfifts between an open and a v.alued 

 f olicy. Upon the latter the value is admitted, and the in- 

 jured has only to prove, if the infurance was on goods, that 



the goous valued were on boar('. Upon an open policy, 

 it is necefl"ary to prove, not only that tlie goods were, on 

 board, but alfo the value of them, which the infurers, pro- 

 vided it does not exceed the fum infured, are bound to pay. 

 But in the cafe of a puri'ml lofs, the am.ount of the lofs 

 fliould be afcertained in both kinds of policy. When a 

 part of the goods infured is faved, and this exceeds thj 

 amount of the freight, tlie praftice is to deduft the freigi-.t 

 from the falvage, and to eftimate the lofs by the difference ; 

 but when the freight exceeds the falva^'e, then it is a total 

 lofs. If the goods infured are damaged in the whole, or in 

 part, it will be neceffary to afcertain the quaiilhy of fuch 

 damage, which is done by taking the value of the goods, 

 in their damaged ftate, from the prime coft, and the remainder 

 will be the amount of the lofs. If feveral articles be in- 

 fured for one entire fum, but with a dilliatt valuation to 

 each, and only one be fent in rifk, and if that one be loft, 

 the infured fliall recover fuch a proportion of the fum in- 

 fured as the value of that article bore to the value of the 

 whole. If the policy has a claufe, to be free of average 

 from a particulai- riflv, under fo much per cent, and a lofs 

 occafioned by that riik takes place, the proportion which 

 the lofs bears to the cargo muft be calculated upon the 

 cargo which was on board when the lofs happened, not 

 upon that which was on board at any other time. With 

 refpeft to the valuation of goods infured, there has been 

 a difference of opinion ; fome contending for the prime coft, 

 others for the current price at the time of lofs ; fome 

 again infifting on the price at the time and place of fliipping 

 the goods, others on tiie price at the port of difcharge. In 

 England, if the pohcy be an open one, it is an invariable 

 rule to eftimate a total lofs, not by any fuppofed price 

 which the goods might have been deemed worth at the 

 time of the lofs, or for which they might have been fold, 

 if tliey had reached the market for which they were deftined; 

 but according to the prime coft, that is, the invoice price, 

 and all duties and cxpences till they are put on board, 

 together with the premium of infnrance. The value is 

 never affefted by the rife or fall of the market, nor by the 

 courfe of exchange. A fliip is valued at the fum fhe 

 is worth at the time when flie fails on the voyage infured, 

 including the expence of repairs, the value of her furniture, 

 provifions and ftores, the money advanced to the failors, 

 and, in general, every expence of the out-fit, to which is 

 added the premium of infurance. A partial lofs upon 

 either fliip or goods is tliat proportion of the prime coft, 

 which is equal to the diminution in value occafioned by 

 the damage. An adjuftment, being indorfed on the policy 

 and figned by the underwriters, with a promife to pay in 

 a given time, is prima facie evidence again ft them, and 

 amounts to an admilfion of all the fafts nccefiary to be 

 proved by the infured to entitle him to recover in an a6lion 

 on the policy. It is like a note of hand, and being proved, 

 the infured has no occafion for further proof. An ad- 

 juftment, however, may be impeached by fiicwing that the 

 imderwriter was induced to fign it by fome fraud or con- 

 cealment, or by feme mifconception of the law or faft ; 

 but this mutt be done by evidence, and not by doubts or 

 furmifcs after the time for payment is come. 



If it be inquired, under what circumftances the infured 

 fliall be entitled to demand a return of pi-emium, the par- 

 ticular cafes are as follow. In general, the premium ought 

 to bo returned, when the contraCl is void ab initio ; that is, 

 either for want of intereft in the infured, or becaufe the in- 

 furance is illegal, or on account of fraud on ilic one fide or 

 the other. However, upon a wager-policy the infured can- 

 not 



