The written contract is called a policy of insurance The insurers are also called underwriters, from their writing under the policy the amount of the risk which they undertake.

It is the practice of underwriters to spread their risks over a great number of policies, underwriting each for a small amount only, as by this means they avoid heavy losses on one bottom.

The business of insurance is carried on through the medium of an insurance broker.

The broker is responsible to the underwriter for the amount of the premiums underwritten through his agency.

The shipowner is only liable to the broker he employs for the premiums due upon the policy, the receipt contained in the policy being conclusive evidence between the underwriter and the shipowner.

The broker has a lien upon the policy and the amount recoverable thereunder for his brokerage and unpaid premiums. He is also entitled to a small fee for his services.

The advantages of employing a broker are great, not the least being that the services of a man having a large connexion with underwriters and who is thoroughly conversant with the practice of insurance is secured.

But when the employment of a broker has the effect of preventing the shipowners acquiring a knowledge of the principles and practice of insurance for himself it rather proves an evil than a benefit.

WHO MAY BE INSURERS.

There is no restriction as to who may insure. Any person willing to undertake the risk may

be an insurer. The great insurance market or exchange is at London, and goes under the name of "Lloyd's," after the name of a coffee-house where the underwriters used formerly to meet. The society consists of merchants, bankers, traders and underwriters, from whom are chosen a committee of nine for the management of the affairs of the society. Agents are appointed at all the principal ports in the world to collect and forward shipping intelligence. The principal arrivals and losses are posted up in the books at Lloyd's, and are evidence of notice to the underwriters, who may be reasonably supposed to have seen them.

Every facility is afforded at Lloyd's for effecting insurances, and no one need go uninsured if he is willing to pay the premium, which is always equitably proportioned to the risk.

The practice is to prepare a slip containing full particulars of the proposed insurance, which is then submitted to the underwriters who initial it for the amount for which they are willing to underwrite the policy. After the slip is complete the policy is prepared, stamped, and executed. Now although this slip is not a legally binding insurance upon which the underwriters may be sued in case of loss; still the honourable portion of underwriters when they have

agreed to the insurance and received the premium, never repudiate the loss, although it may happen before the policy is actually stamped and executed.

Corporations and public companies now insure. Until the year 1824 the Royal Exchange and the London Assurance Companies retained the monopoly granted them by George I., who with private individuals were the only assurers. This, it must be observed, was an infringement upon the common law, which allowed any individual, partnership, or corporation to become insurers. Now, however, there are various public companies who carry on a large business in maritime insurance.

In dealing with public companies a person can more easily dispense with brokers, since the only process is to hand the company a note containing the particulars of the proposed insurance; and when the amount of premium is agreed upon, a slip is signed which is considered equally binding upon the company as a formal policy, until the policy is signed, which usually takes four or five days.

There is another class of insurers who form what is called "Mutual Insurance Societies," these generally consist of a number of shipowners having shipping property exposed to the same risks. These societies are instituted for the mutual protection and indemnification of each other and their representatives from certain specified risks happening to the ships of either member.

The risks covered by mutual insurance societies are the same (except in what are called "Total loss" clubs) as are covered by the ordinary policy at Lloyd's, they are specified in the articles and rules of the society.

The contribution upon each member to make good the loss is levied by a per-centage upon either the tonnage or the value of the property of each member insured.

Members of mutual insurance societies are therefore both "insurers" and "assured." When well constituted and well governed, and no extra risks are admitted, these societies are more beneficial to the assured than insurances effected at Lloyd's, because the assured share the profits.

WHO MAY BE INSURED.

Any person, except an alien, belonging to a country at war with England, and who is interested in the ship, freight, cargo, or expected profits arising therefrom, whether as owners, shippers, mortgagees, consignees, or purchasers may insure their interest therein.

Lenders of money on bottomry or respondentia bonds may insure the money lent. Salvers may insure their claims for salvage services.

Since, however, there must be an interest in the subject-matter insured, it follows that no person can recover on what is called a wagering policy, or a policy

effected by a person having no interest in the thing insured.

Nor can any one re-insure unless the first insurer is dead, or has become bankrupt. But a person may secure himself by what are called double insurances. Double insurances are effected with several persons to cover one risk. Loss arising to the subject matter of a double insurance may be recovered from the underwriters on either policy, so that no more than the entire loss can be recovered on all the policies, which are for this purpose to be considered as one policy.

The reason for this arises from the fundamental principle of all insurance, that it is a contract of indemnity. The practice of effecting double insurances upon policies in each of which the value is stated differently, is a bad one, because it is still an unsettled question to what extent the assured is entitled to recover on the policies, whether it is the amount of the maximum value stated in any one of them or the amount of the value stated in the particular policy sued upon. The majority of the judges seem to favour the latter view. Therefore, until this question is authoritatively settled, persons effecting double insurances should be careful to state the value of the same in each policy; or else the value should be left open. In the event of double insurances being effected on double policies with the values differently stated, then the best course to be pursued is to have the lowest