IV. This policy does not cover books of account, written obligations, securities, or evidences of title or of debt, money, or bullion, casts, jewelry, medals, musical or scientific instruments (other than a pianoforte in a dwelling house), patterns, pictures, plate, precious stones, printed music, sculptures, statuary, or watches, except so far as the same are specially mentioned herein.

V. If any explosive substance is kept upon the premises herein mentioned, in quantities greater than or in a manner different from that allowed by law, this policy is suspended until the law is obeyed.

VI. This policy is suspended during the use of the premises herein mentioned for any of the following purposes, without the written consent of the insurer [specifying the purposes.]

VII. In case the property insured is in peril of damage by fire, the insured must use his best efforts to protect it therefrom, the expense of which shall be paid by the insurer to the extent of this insurance.

VIII. The property insured cannot be abandoned to the insurer.

IX. Written notice of loss must be given to the insurer within a reasonable time thereafter, and the insured must deliver to the insurer a statement in writing, verified by his oath or affirmation, showing to the best of his knowledge and belief:

1. The ownership of the thing insured;

2. Its cash value at the time of loss;

3. By whom and for what purposes the premises on which the loss occurred were occupied;

4. When and how the fire originated;

5. All other insurances upon the same property, giving a copy of the written portions of each policy.

X. The insurer has a right to enter upon the premises where a loss occurs, and to examine all property insured, after a loss, and all books and papers relating to such property.

XI. The insurer may, at his option, pay for a loss according to the cash value at the time of loss, or replace the thing lost or injured with another thing of the same kind and quality, or repair the injury, if it can be fully repaired; but notice of his election to do so must be given within thirty days after notice of loss, or the right thereof is lost.

XII. In case of any other insurance upon the property hereby insured, the insurer herein is liable only for such proportion of the whole loss as the amount hereby insured bears to the gross amount of insurance

Alteration increasing risk.

2753.

effected; and a floating policy, sufficient in terms to cover the property hereby insured, is to be deemed to cover any excess of the value of such property over the amount specifically insured thereon.

[XIII. This policy shall be void if any other insurance now exists, or is hereafter effected upon the same property without the written consent of the insurer herein.]

XIII. [or XIV.] The amount of a loss insured against is payable to the insured in thirty days after proof of loss and interest is given to the insurer.

XIV. [or XV.] This insurance may be terminated at any time by the insured, on notice to the insurer; in which case the insurer must refund all premium paid in excess of the customary short rates for the time the policy has been in force. It may also be terminated by the insurer, upon giving notice to the insured, and refunding to him a ratable proportion of the premium paid, according to the time that the policy has been in force.

[Signature.]

An alteration in the use or condition of a thing insured from that to which it is limited by the policy, made without the consent of the insurer, by means within the control of the insured, and increasing the risk, entitles an insurer to rescind a contract of fire insurance.

NOTE.-"A fire policy, no less than a marine one, is often applicable to a subject that is changing in value, or in the specific articles constituting it." Insurance upon rent.-See Cushman vs. Northwest Ins. Co., 34 Me., p. 487. "A policy for a long period upon goods in a shop applies to the goods successively in the shop from time to time."-Lane vs. Maine Fire Ins. Co., 12 Me., p. 14; Hooper vs. Hudson Riv. Ins. Co., 15 Barb. N. Y., p. 413. See, also, as to what is meant by the terms "house" and "unfinished house," and what is comprehended thereunder, Phil. Ins., Sub. Secs. 492, 493, id., Sub. Sec. 1035, id. "If any change made in the subject is such as to render it a different one from that described in the policy, the underwriters will be wholly discharged from liability." - See "Changes in the risk in fire policies," Sec. 14, Sub. Secs. 1032 to 1038, inclusive, id.

2754.

not
risk.

An alteration in the use or condition of a Alteration thing insured from that to which it is limited by the increasing policy, which does not increase the risk, does not affect a contract of fire insurance.

NOTE.-Angell on Fire and Life Ins., Sec. 206; see Stokes vs. Cox, 1 H. & N., p. 533; Barrett vs. Jermy, 3 Exch., p. 535; Pim vs. Reid, 6 M. & G., p. 1; see, also, note to preceding section, and the references therein to Phil. Ins. In Sub. Sec. 1037, 1 Phil. Ins., p. 594, it is declared that " 'an alteration whereby the character of the building is not changed, nor the risk increased, does not discharge the insurers from subsequent liability."-Curry vs. Com. Ins. Co., 10 Pick. Mass., p. 535; Jeff. Ins. Co. vs. Cotheal, 7 Wend. N. Y., p. 72; Perry Ins. Co. vs. Stewart, 19 Penn. St., p. 45; Schenck vs. Mercer Ins. Co., 4 Zabr. N. J., p. 447; Baxendale vs. Harvey, 4 Hurlst. and N. Exch., p. 445. It was held that "a mortgage is a material alteration," in Edmonds vs. Mutual Ins. Co., 1 All. Mass., p. 311; contra, Howard Insurance Company vs. Bruner, 23 Penn. St., p. 50. Enhancement of risk in the manner of occupying house does not discharge policy on goods therein insured on the ground of deviation or change of risk merely, though it does on an express warranty or an implied representation in the description of the subject, or locus in quo, in the policy.-1 Phil. Ins., Sub. Sec. 1038; Lyon vs. Commer. Ins. Co., 2 Rob. La., p. 266.

insured.

2755. A contract of fire insurance is not affected Acts of the by any act of the insured subsequent to the execution of the policy, which does not violate its provisions, even though it increases the risk and is the cause of a loss.

NOTE.-See notes to preceding Secs. 2753, 2754. Increase of risk which does not violate conditions of contract (Stebbins vs. Globe Ins. Co., 2 Hall, p. 632; Billings vs. Tolland Co. Ins. Co., 20 Conn., p. 139; see O'Neil vs. Buffalo Ins. Co., 3 N. Y., p. 122), though cause of loss (Young vs. Washington Co. Mut. Ins. Co., 14 Barb., p. 545; see Gates vs. Madison Co. Ins. Co., 5 N. Y., p. 469), does not affect contract of fire insurance.

2756. If there is no valuation in the policy, the measure of indemnity in an insurance against fire is

indemnity.

Measure of the expense, at the time that the loss is payable, of replacing the thing lost or injured in the condition in which it was at the time of the injury; but the effect of a valuation in a policy of fire insurance is the same as in a policy of marine insurance.

NOTE. When there is no valuation, the loss is estimated to be the expense of placing the thing injured in the condition it was at the time of the injury (see Niblo vs. North Am. Ins. Co., 1 Sandf., p. 551); but a valuation has the like effect as in a marine insurance; that is to say, a valuation in a fire policy, as well as in a marine insurance, is conclusive.-Harris vs. Eagle Ins. Co., 5 Johns., p. 368; Holmes vs. Charlestown Ins. Co., 10 Metc., p. 211. Though this rule has been sometimes disapproved, no change has been made in it. It is deemed just and reasonable to let it stand.

Insurance

upon life, when

payable.

CHAPTER IV.

LIFE AND HEALTH INSURANCE.

SECTION 2762. Insurance upon life, when payable.

2763. Insurable interest.

2764. Assignee, etc., of life policy need have no interest.

2765. Notice of transfer.

2766. Measure of indemnity..

2762.

An insurance upon life may be made payable on the death of the person, or on his surviving a specified period, or periodically so long as he shall live, or otherwise contingently on the continuance or determination of life.

NOTE. The contract of insurance is one of indemnity as stated in Sec. 2527, ante; see note thereto on the subject of "life insurance." This contract has been extended to human life. "An insurance upon life is a contract by which the underwriter, for a certain sum, proportioned to the age, health, profession, and other circumstances of the person, whose life is the object of insurance, engages that the person shall not die within the time limited in the policy; or if he do, that he will pay a sum of money to him in whose favor the policy was granted." Park on Ins., p. 429;

66

Hughes on Ins., p. 497; 1 Phil. on Ins., p. 147; 3 Kent Comm., o. p. 365; 1 Beck Med. Jurisp., Chap. 12. A modern English writer thus explains it: "The risk in that branch of insurance called life insurance' is the death of the person whose life is the object of the security; and the insurer undertakes by the policy to pay the assured or his representatives a sum of money, either when that event may take place-if the insurance be for the whole life, or upon the happening of that event within a certain limited period, or before the occurrence of some other uncertain event where the policy is effected for a term." This explanation of life insurance is given by an author who in 1846 published a work on The Law of Fire and Life Insurances," which was written, at the request of the society in England for the diffusion of useful knowledge, named "George Morley Dowderwell, of the Inner Temple."-See, also, 1 Bell Comm., p. 544. By the text it will appear that this contract is still further extended. "Life insurance companies commenced in England with the Amicable Society in the beginning of the last century, and in the year 1827 there were in the United Kingdom forty-four life insurance companies, all maintaining a zealous and dangerous competition."-3 Kent Comm., p. 367. This business has greatly increased, and under our probably too liberal system of corporate organizations, assumed immense proportions, and presents itself in very many diverse shapes and under many different inducements to become its subjects. Consequently the competition is far more active than that alluded to by Mr. Kent, and the consequent necessity for care much greater than formerly. By our corporation laws life insurance is extended to the lives of domestic animals.-See Sec. 286, ante, Subd. 2. There being no special provisions for this character of life insurance the business must be conducted under the general rules and regulations provided for all insurances and corporations, and approximating as near as may be to the insurance of "human life." There are also (by Sec. 286, ante) authorized corporations for insuring "health" and "against accidents." They are also named in Sec. 2533, ante. These are intimately connected with the insurance of "human life." Inasmuch as the continuation or duration of the latter is greatly dependent on the "health" of the subject and the "accidents" to which his course of life or profession necessarily exposes him, and these latter "subjects" of insurance, health and accident, being similarly connected, the