party insured, within sixty days after adjustment of the claim, gives security that the money shall be expended, or the money. at that time is disposed of, to the satisfaction of all parties. (Sm. Merc. Law, 417418; 14 Geo. III. c. 78.) 971. PART III. TIT. II. CAP. IX. compensation from a and also from an insurer. A fire policy is a contract of indemnity; Recovery of and hence, if a person has, under an insurance, wrong-doer, received a full compensation for his loss by fire, and has afterwards recovered compensation in an action for damages against the person who caused the mischief, he is bound to hand over the damages to the insurer, who, in such case, is the party really damnified. And on the other hand, if he proceeds in the first instance against the wrong-doer, and recovers full compensation from him, he cannot then sue on the policy. (Ad. Torts, 265; Ad. Con. 555.) 972. IV. Marine Insurance. insurance Marine insurance is a contract by which Marine one party, for a stipulated sum, agrees to defined. indemnify another against loss of a ship, or the goods, or the freight, or the profits expected from the cargo, or of all or any of them, during a certain voyage or a certain period. 973. PART III. TIT. II. Underwriters. Such insurances are usually undertaken CAP. IX. by several persons, who are called underwriters, from their subscribing the policy, and each engaging thereby, on his own separate account, to indemnify to the extent of a certain sum set opposite his name, as subscribed or underwritten at the foot of the policy. (Arnould, 2, 34; 2 Ste. Com. 127; Sm. Merc. Law, 340.) 974. Brokers. Premium. Almost all policies are effected by insurance brokers, or, as they are frequently called, policy brokers, who act as middlemen between the merchants and shipowners and the private underwriters or public insurance companies. (Arnould, 117.) 975. According to the ordinary course, the assured does not pay the premium to the broker, and the broker does not pay it to the underwriter, in the first instance. But, as between the assured and the underwriter, the premiums are considered as paid at The underwriter, however, looks to the broker, and he looks to the assured for actual payment of the premium, on the settlement of accounts between them respectively. (Sm. Merc. Law, 342; Arnould, 118, 121.) 976. once. A policy of marine assurance is not a contract of mere indemnity. (Aitchison v. PART III. Lohre, L. R. 4 Ap. Cas. 755.) 976a. TIT. II. CAP. IX. valued A policy is either open or valued. An Open or open policy is one in which the value of the policy. subject insured is not specified in the policy, but is left to be estimated in case of loss. A valued policy is one in which the value of the subject insured is settled by agreement, and specified in the policy. (Sm. Merc. Law, 347; Arnould, 14.) And the value so specified is, in the absence of fraud, conclusive between the parties, however largely in excess of the true value. (Barker v. Janson, L. R. 3 C. P. 303.) 977. policy. A wager policy is one which shows, on wager the face of it, that the contract is not a real insurance, but a wager; that it is, in fact, a pretended insurance, founded on an ideal risk. (Arnould, 13.) 978. the insured. No insurance may be made on an English Interest of ship (except one fitted out solely to cruise against the Queen's enemies) or on any goods on board an English ship, "interest or no interest," ie., without the necessity of the insurer having an interest therein, or without the benefit of salvage to the insurer. (Sm. Merc. Law, 342-3; 2 Ste. Com. 135; Arnould, 330-7; 19 Geo. II. c. 37, ss. 1, 2.) PART III. In order to have an insurable interest, it CAP. IX. is sufficient to have a right of such a nature that the insurer may be benefited by the preservation of the thing insured, and prejudiced by its destruction. (Arnould, 281; 19 Geo. II. c. 37, s. 4; Wilson v. Jones, L. R. 2 Ex. (Ex. Ch.) 139; Barber v. Fleming, L. R. 5 Q. B. 59.) 980. Overvaluing an interest. Reassur ance. Double insurance. If the insured fraudulently overvalues his interest, he cannot recover even for the value proved to be on board. (Sm. Merc. Law, 348; Arnould, 362.) 981. An underwriter may not secure himself by effecting a reassurance, that is, an insurance on that which he has insured, except in case of bankruptcy or death of the insurer; in which case a reassurance is allowed, if in the policy it purports to be such, and does not exceed the sum before insured. (Sm. Merc. Law, 345; 2 Ste. Com. 128; Arnould, 339-342; 19 Geo. II. c. 37, s. 4.) 982. A person who is insured by one set of underwriters may effect another insurance. on the same subject with another set of underwriters, even though he may have been fully insured by the first set. But he cannot recover more than the amount of his loss. If he obtains the full amount of his loss on either policy, the underwriters upon TIT. II. that policy are entitled to a contribution PART III. from the underwriters upon the other. (2 CAP. IX. Ste. Com. 128; Arnould, 345-6.) And in an action on a policy, the assured is only entitled to recover the amount agreed upon in that policy, after deducting what (if anything) he has received on other policies effected on the same subject-matter. (Bruce v. Jones, 1 Hurl. & Colt. 769.) 983. policy. The form of the policy in use was intro- Form of duced into England by the Lombards, and is very inaccurate and ungrammatical in its language. It is usually printed with blanks, for the insertion of necessary particulars, as the intention of the parties happen to require. (Sm. Merc. Law, 346; Arnould, 16.) 984. In order to render intelligible the remarks which follow, it will be convenient to subjoin the common printed form of a Private Underwriter's (Lloyd's) Policy on Ship and Goods: "In the name of God. Amen. "A. B., as well in his own name as for and in the name and names of all and every other person or persons to whom the same doth, may, or shall appertain, in part or in all, doth make assurance and cause himself and them, and every of them, to be insured, |