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obtains a proper "discharge" for money paid under a pol. The mere possession of a pol. is no evidence of ownership. Even under "nomination pol." evidence of identity is at least required. In cases of assignment the production of the pol., with the deed of assignment, or a duplicate of it, is usual. In the ordinary case of a life pol., or of a fatal claim under an accident pol., the probate of the will containing any direction as to the pol., or letters of administration, are lodged with the asso. for examination between admission of claim and time of payment. [ASSIGNMENT OF INS. POL.] [BANKRUPTCY.] [MARRIED WOMEN'S PROPERTY ACT.]
(5). Resistance of Claims.-There was at one time existing a foolish sentiment regarding what is called the "disputing of claims" by the managers and directors of ins. offices. It is happily passing away. Ins. is a matter of contract, that contract being based upon good faith. If the underwriters or co. find that good faith has not been observed, it becomes a duty to resist. In Marine ins. fraud is of very frequent occurrence; but it is often very diffi cult of proof. In Fire ins. the proportion of claims more or less fraudulent is considerable. In Accident ins. and in Cattle ins. attempts at fraud in a small way are far too prevalent. The ordinary course of resistance is simply refusing to pay, leaving the insured to his legal remedy. It is doubtful whether this is always a wise course. Most pol. contain an "arbitration clause." Where the question is only one of amount, the underwriters or co. should take the initiative, and give "notice of reference." Where the claim is purely fictitious, or fraudulent in its inception, the initiative should be taken by the insurer, who is too often placed at a disadvantage by allowing the insured to commence a civil process, where a criminal one would most apply.
In addition to the preceding, which embody the main points of practice, from the office point of view, there are some other considerations to be regarded in dealing with claims. A knowledge of the legal decisions in previous cases of a like character is of the first importance; while business aptitude, discernment, and diplomacy are very frequently called into play, alike on the part of the "claim adjuster" and the managers of the office. We shall deal with a few of these considerations under alphabetical arrangement.
Accident Ins.-At the close of our HIST. OF ACCIDENT INS. we have noted a few of the more important points which have been determined in cases which have come before the Courts. We need not repeat them here. It is in the common interest of accident cos. to uphold those decisions. It is an important feature in accident ins. that the death must take place within a given period (usually three months) after the injury. It is a point of the first importance that the co. provide its own forms for the insertion of details of non-fatal as well as fatal injuries; and that the co. insist upon these being actually filled up and returned before any claim be admitted. It is no hardship on a person subsisting on the funds of the co. to make full and proper returns whenever required. Any attempt at evasion must be regarded with great suspicion. Twenty years' experience of this bus. has shown the writer that whenever there is any irregularity about the notice of injury or death reaching the office, there is also some irregularity about the claim itself.
Where the claimants are entitled to compensation for non-fatal injuries, the difficulty of obtaining completely satisfactory evidence is sometimes very great. Claimants and agents alike fall into the notion that a "liberal mode of settlement," without any very strict regard to the actual facts, is best for the office. Experience, however, speaks differently. An able writer upon ins. topics in the U.S. says hereon:
A strict construction of the terms of the contract, regardless of the character or influence of claimants, treating the rich and poor alike, will estab. confidence in the integrity and good faith of our settlements; while the man of position and influence will justly despise any co. which should seek to buy his influence by the payment of an excessive and unjust claim, when at the same time he sees a claim equally valid as his own denied to his poorer neighbour.
These remarks also apply to Health Ins.
Fire Ins.-Under APPORTIONMENT OF FIRE LOSSES we have already stated some of the general considerations which arise in relation to claims under F. pol.; while under AVERAGE POL. (Fire), we have noted many of the more technical points involved. Under CERTIFICATE OF LOSS we have spoken of a specific requirement under some F. pol. We now have to add a few more important details.
In the case of claims under "average pol.," the following special forms are required to form part of the "proof":
A., B., and Co., the undersigned, do hereby declare that the following is a full, true, and faithful statement of the whole of the goods, wares, and merchandize, and the value thereof, on the day of the fire, which was held by us, either on our own account, or on trust, or on commission, which are or were lying or being within the places and limits specified in our pol., No. . . ., of the... Ins. Co., on the day of the late fire in . . . wharf.
And we further declare that the following is a full, true, and faithful statement of all the ins. effected by or for us with other F. offices, upon such goods, wares, and merchandize; and that we have in this statement distinguished the specific insurances, or those that may vary from pol. No.... before mentioned, under which our claim is made.
And we do also declare, that we have not omitted from this statement any goods, wares, merchandize, or effects upon which we had at the time of the said fire any lien, claim, or title, upon which we could have made a claim for loss by fire, had such goods, wares, merchandize, or effects been destroyed by fire.
Then come the schedules to be filled up with the following all-important information: Ist. Particulars of the whole of the goods, wares, or merchandize at the time of the said fire, including those damaged or destroyed. 2nd. Particulars of goods, wares, or mer
chandize destroyed or damaged by said fire. 3rd. Particulars of pol. of ins. with other offices, with their respective amounts and numbers. 4th. Claim to be made in the following form:
Claim under pol. No.
subject to average. We do hereby declare and set forth, that at the fire, on the. the following articles, goods, wares, or merchandize, being our property or the property of other persons to whom we are legally liable, and ins. by your pol. No. were destroyed or damaged by the said fire according to the values at the foot hereof; wherefore we claim the sum of £.. the amount of such value; and we further declare that we had no ins. effected with any other office or offices, except as before mentioned.
The list of documents may be completed by the following: "Warehouse-keeper's Certificate.-We hereby certify that the goods hereunder mentioned were in our custody, in a warehouse situate in ..., at the time of the fire before referred to.-Signed, . [WAREHOUSE-KEEPER'S BOOK.]
In the case of Levy v. Baillie, before the Courts in 1831, the facts were as follow. The plaintiff had effected a pol. against fire, with a condition that he should forfeit all benefit under the pol. if there was any fraud or false swearing in the claim he made. A fire ensued, and the plaintiff made affidavit of the damage to the extent of £1085; having sued for the amount, and a jury having found a verdict for him, with only £500 damages, the Court granted a new trial.
In the case of Wright v. Pole, before the Courts in 1834, it was Held, that an innkeeper, having ins. in the Sun Fire his interest "in the inn and offices," could not, upon such inn and offices being partly burnt, recover against the insurers the loss sustained by his hiring other premises while his own were being repaired, or by the refusal of persons to go to the inn while under repair-the insurers having reinstated the premises in proper time.
It was decided in the case of Simpson v. the Scottish Union Ins. Co., tried in 1863, that a tenant from year to year insuring is not limited in his claim on the ins. co. to the extent of his interest in the property insured.
Even where there is no fraud, the insured on a fire pol. can only recover the real amount of the loss. This was so held in Goulstone v. Royal Ins. Co., tried in 1858.
Life Ins.—The main point to be guarded against is death by suicide, instead of from natural causes. We shall discuss this subject fully under SUICIDE. The other chief questions are "concealment" and "intemperance." The points involved herein, as affecting life ins. claims, will be fully discussed under those heads; while under DISEASED LIVES, and FRAUDS, much that is important will be found. Some considerations also arise under DAYS OF GRACE. See also PROOF OF DEATH.
Sometimes a death will be presumed, as where a ship in which the insured life sailed is never heard of, and from circumstances appears to have been overtaken by a storm in which other ships perished. So also a person goes abroad, and remains unheard of for a long period. See DEATH, PRESUMPTION OF.
The following curious and important point was determined Obiter dictum in 1786, in the case of Locker v. Offley. A person insured for one year only meets with a mortal wound, but does not die of the same until after the expiration of the policy. Mr. Justice Willis held the insurer was not liable: hence it is regarded as a principle that the loss itself, as well as the cause of loss, must have happened during the continuance of the pol. We do not remember any recent case on this point.
We have long felt that a complete statement of the aggregate claims paid by all the different life offices would operate as one of the most striking popular arguments in favour of the practice of Life Ins. Of course it is impossible to obtain such a return from the offices which have passed away; but there ought to be no difficulty in obtaining the items from each existing office. Mr. William White, in his useful Ins. Register, did for one or two years give such returns for many of the offices. We shall hope under LIFE INS. CLAIMS to present such a T. in a completed form.
Marine Ins.-The following specific documents are usually required to substantiate claims. 1. Protest-to show the loss of or damage to the vessel. 2. Bill of lading--to show that the goods were on board. 3. Invoice-to prove value. 4. Account Sales-to show realization. 5. Original vouchers -to show amount expended in repairs, etc. 6. Survey-to prove damage. 7. Rate of Exchange of the day. 8. Average Statement. These being investigated and found correct, the underwriter indorses the claim papers as "settled."
Weskett said in 1781 :
Proprietors, and their factors or agents, of ships or goods which have been wrecked, stranded, taken, retaken, seized, detained, or condemned, ought to use their utmost diligence in making claim thereof in due form, and furnishing proper and authentic documents to that effect, in cases where there is a right, and hope of recovery of salvage; for negligence or inactivity on such occasions would be highly culpable and fraudulent with regard to insurers; to whom, on their satisfying the loss, security ought to be given by the insured, or their agents, that such claim shall be duly made and prosecuted at the charge and with the advice and assistance of the insurers; and also that they shall be reimbursed their due proportion of the value of all that shall be restored or saved. A master of a ship or cargo who may have fallen under the afore-mentioned or any similar circumstances, who leaves the place where they may have happened, without exhibiting authentic papers, and exerting his best endeavours to recover ship and cargo, or without duly claiming, appealing, etc., as the case may require, is liable to be sued, and to answer for not having done his duty. Under CONCEALMENT and FRAUD many other points in connexion with marine claims will be discussed.
General Considerations.—It is a rule of law that the burthen of proof of the event insured against having happened rests with the insured, and not with the insurer. It is equally a rule that those who impute fraud must substantiate it, or abide by the consequences.
An action at Common Law may be brought in the name of the party or parties whose names are in the pol., or of one of them, where one is only interested. It is sufficient that the action be brought in the name of the party in the pol., though others are jointly interested, and though he be only agent. The action should not be brought against an agent, though he have subscribed the pol., but against the principal. In support of these positions see Marsh v. Robinson; Cosack v. Wells; Parker v. Beasley, and Hagedorn v. Oliverson.
In 1833-by 3 & 4 Wm. IV. c. 42, s. 29-it was provided that in certain actions, including those on ins. pol., a jury may "give damages in the nature of int. over and above the value of the goods."
There are numerous cases in the law-books wherein money actually paid in respect of claims has been recovered by the insurers. The principle of recovery by the insurers is not restricted to the case of fraudulent claims, as is sometimes supposed. If a claim be settled by the insurers paying the amount under circumstances of mistake-mistake of facts, not of the law-which mistake could only have been prevented by the disclosure, at the time of settling the claim, of facts which were not disclosed, whether by fraud or in ignorance on the part of the insured, or with any other persons with whom knowledge of the fact rested, from this state of circumstances will result a rule that the amount paid for such claim shall be recovered by the insurers.-Beaumont's Law of Fire and Life Ins. In support of this view see Forrester v. Pigou; Chatfield v. Paxton; and Lefevre v. Boyde. CLANCHY, D. T. L., was Sec. of Equitable F. from its commencement in 1850 down to 1852. CLARENCE LIFE ASSU. So., founded in 1854, with an authorized cap. of £100,000, in 20,000 shares of £5, and regis. under Joint-Stock Cos. Regis. Act. The orig. prosp. said:
The uniform success which has now for many years attended L. assu. sos. forms one of the most remarkable features in the monetary inst. of this country. It must strike every one as singular, that among the many enterprises of this kind begun during the last 50 years, scarcely an instance of failure has been known to occur; and it is equally remarkable that such of them as have been estab. for a period, to justify comparison, have proved themselves to be more remunerative than any other undertakings whatever.
It is therefore not to be wondered at, that so many assu. cos. should recently have become candidates for public favour and support; and that there is still a large field open for their operations is amply proved by the fact of the enormous increase of assu, effected within recent years. The skill and activity with which the younger cos. have made known their respective and peculiar recommendations have secured a degree of attention to the advantages and practice of L. assu. which were previously altogether unknown; and thousands of all classes now assure their lives, who, but a few years ago, were entirely ignorant of the benefits and blessings arising from such a system. We next arrive at the "special features" of the office :
One of the most effective means for extending the bus. of a L. assu. co. is the estab, of an extensively ramified system of agency; and the success of some of the most prosperous institutions has been mainly attributable to the care bestowed on this department. It is therefore proposed by the promoters of this So. to give its regularly-appointed agents a direct and beneficial interest in its prosperity, and the D. of Sett. contains an express provision securing to them a share of the profits. The extent to which each agent will participate will depend on his own efficiency, and the degree in which, by his individual exertions, he has contributed to the So.'s prosperity-so that he will receive that fair and legitimate reward which ought to be considered as undoubtedly due to his labours.
It was estimated that this "extraordinary commission" would augment the ordinary commission by about three-fourths. Two other features were put prominently forward: (1) "Opportunities to assure will be afforded by the Clarence L. Assu. So. to every class of persons, as well in Gt. Brit. and Ireland, as in Her Majesty's Plantations or Colonies, and in all places beyond the Queen's dominions." (2) "The promoters of the Clarence L. Assu. So. have resolved to develope the principle and system of granting loans in connexion with L. assu. beyond anything that has yet been offered for the accommodation and approbation of an important portion of the public". . . The prosp. bore the signature of H. Lang, Sec.
We believe the Co. hardly got into full working before its bus. was trans. to United Homeopathic. This occurred in 1855.
CLARK, EBENEZER, JUN., Man. and Sec. of the Emperor L. and of the Emperor F. since 1856. Mr. Clark is an active worker in many movements in the direction of popular progress.
CLARK, GEORGE, Act. and Sec. of Argus L., which positions he has held for many years. He entered the office in 1840 as chief clerk. He entered upon the actuarial duties of the Co. in 1841. In 1862 he became Sec. of the Co. also. Some years since he wrote a work upon Life Contingencies, which, however, has not been pub. He was Consulting Act. of the Palladium. Mr. Clark has displayed much tact in the manner in which he has harmonized the discordant elements consequent upon one or two unsuccessful attempts to terminate the existence of his Co. by amalg.
CLARK, JOHN, F.A.S., Edinburgh, Land and Tithe Agent, pub. in Gloucester in 1806, An Inquiry into the Nature and Value of Leasehold Property, Reversionary Interest in Estates, and Life Annuities, with a variety of Tables, demonstrating the Ratio of Fines due on the
Renewal of Leases of Church, College, and other Estates; and for the Purchase or Sale of Leases of every Denomination. 2nd. ed., London, 1808. [ANNUITIES.] [LEASES.] CLARK, JOHN, for some years Man. Director of European (No. 1), and also of the Beacon F. In 1818 he pub., Obs. on the Nature of Annuities, Life Ins., Endowments for Children, and Investments of Money for Accumulation; with a General Outline of the Plan, Laws and Regulations of the European Life Ins. Co.; to which is annexed a Slight Sketch of the Difference between Income derived from Annu. and that obtained in Perpetuity from Legal Int. The tract was written and pub. with a view to improve the bus. interests of the European (No. 1), under which title we speak more at large of its contents. It was sold for 2s. 6d., which, however, was allowed to the purchaser on becoming a shareholder, annuitant, life insurer, etc., etc., in the said Co.
CLARK, SAMUEL, pub. in 1758, The Laws of Chance; or, a Mathematical Investigation of the Probability arising from any proposed Circumstance of Play, applied to the Solution of a great variety of Problems relating to Cards, Bowls, Dice, Lotteries, etc. [CHANCES, LAWS OF.]
CLARK, STEPHEN G., Counsellor-at-Law, editor of the 2nd ed. of Digest of F. Ins. Decisions in the Courts of Gt. Brit. and N. America, pub. 1868. The work is one of considerable merit and utility, and has received various improvements at Mr. Clark's hands. CLARK, T. ALLEN, Sec. of Home and Colonial Marine since 1867.
CLARK, THOMAS, was, between 1852-54, Provincial Man. of British Industry. CLARK, WILLIAM, was Act. and Sec. of National Assu. and Investment, at its commencement, and for several years afterwards. He next became Act. and Sec. of the Tontine
Life and Annu., and remained from its commencement for several years. In 1849-50 he Iwas Act. and Sec. of Consolidated.
CLARK, WILLIAM, for some years Act. of Dundee Marine.
CLARKE, HON. JULIUS L., Íns. Commissioner for the State of Massachusetts since 1870. Mr. Clarke paid a visit to Europe in 1872, and made the personal acquaintance of a number of ins. men in Great Brit., by whom he is pleasantly remembered.
CLARKE, HYDE, pub. in 1855 Statistics of Fire Ins. in 1853 and 1854, reprinted from the Land and Building News. No great knowledge of the subject is displayed in this compilation.
CLARKE, ROBERT, Surgeon, read before the Statistical Section of the Brit. Asso. at Glasgow, in 1855, a paper, Short Notes of the Prevailing Diseases in the Colony of Sierra Leone, with a Return of the Sick Africans sent to Hospital in 11 Years, and Classified Medical Returns for the Years 1853-4. Also Tables showing the Number of Lunatics admitted to Hospital in a Period of 13 Years, and the Number treated from 1st April, 1842, to 31st March, 1853. This paper will be spoken of under SIERRA LEONE. CLASS OFFICES.-These are offices especially intended to appeal to any one section or class of the community for their support. Many such offices have been founded in Great Britain; some in other countries, especially in the U.S. Among the earliest of such offices in this country were those appealing to the professional classes-especially to the Law. These are Law Life (founded 1823), Legal and General (1836), English and Scottish Law (1839), Equity and Law (1844), London and Provincial Law (1845), Law Fire (1845), Law Property (1850), Law Union (1855). The Solicitors and General (1845) has passed away. Then there are those connected with the Clergy, viz. Clerical, Medical, and General (1824), University (1825), Clergy Mutual (1829). As to the Medical profession, in add. to the Clerical, Medical (just named), there have been the Medical, Legal, and General (1846), and the New Equitable(1851). Coming to Denominational offices, we have the Friends Provident (1832), National Provident (1835)- each of these being mainly founded on Quaker influence and connexions. The General (1837) [orig. called Dissenters and General], appealing to the "Independents." The Church of England (1840), Wesleyan and Gen. (1841), Star (1843), supported by a powerful Wesleyan connexion. The Scottish National (1841) has or had much support from one section of the Church of Scotland; and the British Empire Mut. (1847) and the British Equitable (1854) have each been more or less associated with religious bodies. The Catholic, Law, and General (1846), the Protestant (1852), and the English and Irish Church (1853), have long since passed away. Looking in an opposite direction, there have been the Licensed Victuallers (1836) [afterwards name changed to Monarch], the Brewers and Distillers (1851), against which may be named, as a powerful set-off, the Temperance and General (1840). Turning to Fraternities, we have had the Freemasons and General (1838) [afterwards became the ill-fated Albert], and there is now the Masonic and General (1868). In the Agricultural interest there is the Royal Farmers (1840), and the Norfolk Farmers (1844). The Agriculturist (1845) has passed away. For Schoolmasters there has been the Mentor (1848), and the Church of England Schoolmasters (1850). The Governnesses Benevolent (1843) is an annu. asso. Then there is the Provident Clerks (1840). And finally the Industrial offices, with the Prudential (1848) at the head [this Co. also transacts general life bus.], followed by the Victoria (1860), Mutual Provident Alliance (1847), the National Industrial (1854), the Beehive Fire (1870), and the British Workman (1871).
It will be seen from this enumeration that the various class interests have been pretty well looked after. The list might have been enlarged, but we are content to name the
prominent of each class. There was at one time another class distinction set up-that of
Even in Life offices many most instructive results may be obtained by a careful classifi-
In Marine ins. the losses arising from the perils enumerated in the pol. are classified as (1) TOTAL LOSS; (2) AVERAGE; (3) CHARGES. These are spoken of under those particular heads. do not illustrate our present purpose. But as all risks undertaken are subject to each of these incidents, they essentially in the determination of whose, as well as what risks to accept. [SELECTION OF The practical classification in marine ins. lies RISKS.] CLASSIFICATION OF POLICIES.--This is a process to which the pol. of a L. office are generally subjected, prior to the periodical valuation of assets and liabilities. each pol. is valued separately, a classification is not necessary; but it is still most desirable, if only as a means of check. Where paper, On the Determination and Division of Surplus, and on the Modes of Returning it In the first vol. of the Assu. Mag. Mr. C. Jellicoe, in a to the Contributors, reviews the question thus:
Having, then, determined on the true rates to be adopted in our calculations, and being provided with the usual T. of ann. and single prems., annu., etc., answering to such rates, our next object will be to make a classification of all the assu. in accordance with the year in which the lives assu, may be severally born. We are aware that it is a very common practice to estimate the value of each assu. separately, in which case a classification is of course not needed. The only good reason for a separate estimate arises in the also common practice of dividing the surplus in proportion to the difference between the amount of prems, at compound int. and the value of each assu.; and this, it will be seen, renders the determination of the latter indispensable. We believe, however, that we have clearly demonstrated, on a former occasion, that such a mode of division is entirely erroneous, and therefore there is no longer any corresponding advantage to compensate the excessive labour attendant upon a valuation of each risk separately; on the contrary a very great disadvantage arises from the increased liability to error which such a proceeding necessarily involves. As regards any difference in the results of a separate and classed valuation, all experienced computers will at once admit that it is wholly insignificant. We believe we are quite within the mark in saying that the results will be identical even when the number of assu. in each class does not exceed 6 or 8. If the number in many of the classes be less than these, there is certainly nothing to be gained by a classification; but otherwise it is undeniably the preferable alternative.
He then proceeds to make some practical suggestions regarding the process of classification, which it may be useful to reproduce in a condensed form here:
In proceeding to make the required classification, it will be found most convenient to assume that all the lives were born on that day of the year at which the valuation is supposed to be made; and we would suggest also that the entries be regulated by the date of birth, and not by the office age. The lives in each class will thus, on the average, complete a given number of years in the day to which the accounts are made up. the error, on the average, of half a year in each case, caused by this arrangement, is in favour of the We are not ignorant that it is usual to adopt the office age, on the plea that office. It is better, however, if avoidable [attainable?], that there should be no error; that the truth should be rigorously adhered to throughout; and that any safeguards which may be required should be matter of distinct consideration.
As will appear hereafter, it is not necessary to make any distinction between parti. and non-parti. pol.; the two may be blended together, provided only that they are for the whole term of life, and at a uniform prem.: it may perhaps be desirable to affix some distinguishing mark against them. Of course any add. already made to the sums assu. will have to be included, and due notice will have to be taken of any reduction in the orig. prem.; and on this, as well as on other accounts, it is better to have fresh lists at each valuation, and not a species of debtor and creditor account in which the number of existing assu. is found after deducting the terminated ones. being payable half-yearly or quarterly; the equivalent ann. prems. may be safely substituted in each It is not necessary to take note of prems. case. To pursue a different course would render the classification of such assu. impracticable, whilst no advantage would accrue from the separate estimate of their value.
It may be well to mention here, too, that where an extra prem, has been made for any deterioration in health, the corresponding age should always be considered as the true one, and the life classed accordingly. Where the extra prem. is on account of residence abroad, or for sea risk, it must be discarded and treated separately. If the extra charge be one in accordance with T. specially made for any given climate, as is now generally the case with Indian risks, the assu. itself will come under a different class altogether, and must of course be omitted-to be valued eventually on the same principles as regards foreign mort. as those adopted in reference to the native.
The reader will understand that, high as the authority of this writer stands in matters of practice, the improvements in practice must be followed irrespective of all authority to the contrary. Mr. Jellicoe's views were in advance of the time he wrote; yet practice has outstripped them. registers-in which all the required details must be entered concurrently with the issue of It is now found possible, by the aid of properly constructed valuation the pol., and which must be kept revised with each change in any and every pol.—to complete valuations in as many hours as days, or even weeks, were occupied formerly.