554. Non-Forfeitable Policy.-Most limited premium policies are by their terms non-forfeitable after the payment of a certain number of premiums. That is, if a certain number of premiums have been paid, and the holder then fails to pay more, he may have a paid up policy for the amount for which he has paid.

555. Surrender Value.-Most companies give the option to the holder, at maturity of policy, of taking either a paid up policy or a gross sum in cash. Some also agree to purchase for cash the policy at its then valuation, at any time during its life. This is called its surrender value. This value will depend upon the number and amount of premiums paid.

Table of Rates of Premium on Policy of $1,000.

LIFE POLICIES.

ENDOWMENT POLICIES.

The above are the published rates of a prominent company.

556. Manner of Death.-Most policies include a provision that death caused by suicide or duel shall make the policy void. The courts are much inclined to nullify the provision in reference to suicide, and hold the company liable. Death by the hands of justice discharges the insurer.

CHAPTER XLVI.

CASUALTY INSURANCE.

55%. Introduction.-The liability to loss through unforseen casualties is incidental to every business undertaking. The careful business man takes it into consideration in estimating the probable cost of every venture. The results may show that he either over or under estimated its effect. It is not strange, then, that companies should be organized for the purpose of guaranteeing indemnity against almost all kinds of accidents. By this means the business man is enabled to foretell exactly the cost or expense of this element. It is but fair to say that this branch of insurance is of comparatively recent origin, and hence the law pertaining to it cannot be said to be fully developed. In general there is an evident intention to follow the rules of law already formed in the older branches of insurance wherever they are applicable.

The

558. Accident Insurance. This is a personal insurance against all accidents happening to the insured. As in life insurance the business is conducted on two plans, mutual and level premium. When a definite premium is charged, it is based on the hazards of the business in which the insured is engaged, and not on the age. different kinds of business are classified according to the risk which experience shows attends them. The premium also depends of course on the amount of indemnity assured. The amount of the insurance is always stated in the policy, which usually provides that a certain amount will be paid in case of death by accident; a less amount in case of loss of limbs, (hands or feet), and a still smaller amount for loss of one limb, (hand or foot). It also provides for a certain weekly indemnity while disabled.

559. Employer's Liability.-Every employer knows that a suit for damages not infrequently follows an accident happening to any of his workmen. Even if he is not legally liable, the suit is sure to cause him more or less expense, anxiety and worry. It is against this liability that an employer is now able to insure himself. It must be understood that neither the employer nor employee profit directly by the insurance. The agreement is to pay only in case the insured is liable to pay.

A is a builder and contractor, and employs a large number of men annually. The business is more or less hazardous, and not a year passes but several workmen are injured in the course of their employment. He takes out an Employer's Liability policy to protect himself against any liability by reason of his negligence in not providing proper machinery, and against the negligence of any of his workmen, not engaged in the same line of business as the injured. 431 and 432.)

(See secs.

The premium is based on the amount of his annual pay roll, also on the gross amount for which he is insured, and the hazards of the business in which he is engaged. The policy usually provides that the company will not be responsible for any one accident beyond a certain amount, and beyond a certain larger amount for the whole period of the policy.

When an accident occurs the insured notifies the company, who immediately investigate all the circumstances of the case, and if they deem the employer liable, the claim is settled. If suit is brought against him they take full charge thereof, by furnishing counsel and collecting evidence. To protect itself the company has the right to inspect the machinery of the insured at all times, and may cancel the risk at any time by refunding the amount of unearned premium. The policy usually contains a provision that the company shall have the right of subrogation.

560. Guaranty of Title.-Companies are now organized for the purpose of guaranteeing the validity of one's title to real estate. The company has in its regular employment trained attorneys, who are particularly skilled in real estate law. When one sells realty he will usually be required to give an abstract of title, showing a clear and indefeasible title in him. Instead of this, he may make application for a Guaranty of Title policy to run in favor of the purchaser. The company, by its attorneys, thoroughly investigates the records,

and if the report is satisfactory a policy is issued. The premium depends upon the amount of insurance, and also on the defects in the title, if any.

In case the title is attacked, the company supplies counsel and takes charge of the defense, or settles the claim, as it may deem best. Such a policy cannot be assigned when the property is sold, so as to carry its benefits to the purchaser, for the transfer of property introduces a new element into the title, an element not considered at the inception of the policy.

561. Plate Glass. It is a well known fact that large pieces of plate glass are expensive, and that they are usually so placed as to be exposed to constant risk of breakage. It is now the general custom to insure plate glass against this risk, and especially is this true when it is placed in a business house abutting the street, and on the ground floor. Large expensive mirrors are also frequently insured. The premium charged is a certain per cent of the manufacturer's list price on the glass. In case of loss the company usually replaces the glass instead of paying the cash, for it can do so much cheaper than can the insured.

562. Steam Boilers.-Steam boiler insurance is against all immediate loss or damage caused by the explosion, collapse or rupture of the boiler. It covers damages to the boiler itself, and also to other property of the insured. It saves the insurer harmless from any liability from damages to the property or person of other persons, if such liability was the result of the explosion. The insurance against the injury to the person is limited to a certain gross amount, and also to a certain amount per week in case the injury is not fatal. It does not cover a loss by fire even though it be caused by the explosion. The insured, in case of an accident covered by the policy, agrees to give immediate notice to the company, in writing. The company may investigate the accident, and either make settlement for the loss, or defend the case by its attorneys in case an action is brought, as it may elect. As in all policies, the company will not in any case be liable beyond a certain amount.

The boilers are frequently tested by the inspectors of the company, and if defects are found, which are not immediately corrected, the policy may be suspended. The amount of premium is largely a matter of special contract, depending somewhat upon the cost of inspection, the number of boilers together, their condition, etc.

563. Elevator.-Policies are now written granting insurance to the owner or lessee of an elevator. It usually only covers loss for accidents to the car itself and liability for injury to the persons of others.

564. Rents. The owner of a building which is leased, may be deprived of his rents because of some accident which has made the building uninhabitable. A fire may have made extensive repairs, if not a new building, necessary. A fire policy would cover the cost of the repairs, but would not reimburse him for the loss of rents. To cover this a rent policy may be taken out. The premiums are based on the rent roll, and the amount of the policy.

565. Guaranty of Honesty.-Persons who are about to accept a position of trust, are often required to give bond that they will faithfully perform the duties assigned to them, and especially that they will make true return of any and all moneys that may pass through their hands while in such employment. Their record may be good, and still they may have no friends able and willing to guaranty their honesty. Bonds or policies of this kind are now a common feature of this branch of insurance. Administrators, executors and guardians often make use of such bonds to guaranty to the court the faithful discharge of their duties. The premium charged is based on the amount of the bond, and on the opportunities there may be for dishonesty.

566. Loss By Thefts.-One of the latest features of this branch of insurance is a policy securing indemnity against burglars, or thieves of all kinds.