REVIEW QUESTIONS. 1. Name the parties to a contract for fire insurance. 2. Describe the differ ent plans of insurance. 3. What is a mutual company? 4. Which is the most common plan? 5. Define an insurable interest. 6. Can two or more persons secure insurance on the same piece of property? 7. What is a board company? 8. Describe how the rates are fixed. 9. What is a policy? 10. What can you say of conditions in the policy? 11. What is meant by the risk? 12. Is loss by lightning covered by the ordinary fire policy? 13. What is meant by "abandonment"? 14. Where does it obtain? 15. On what is the premium based? 16. How are losses usually adjusted? 17. In case several companies have policies on the same property, and there is a loss, how do they adjust it? 18. When and how can a policy be assigned? 19. What is meant by surrendering a policy? 20. What is a representation, and what is its effect? 21. What is a warranty, and what is its effect? 22. Can a mortgagee, who has insured his interest, collect the insurance in case of loss, and also the debt? 23. For what purpose is life insurance taken? 24. Define life insurance. 25. Name the parties. 26. What is an insurable interest? 27. How does it differ from an insurable interest in fire insurance? 28. Can on who has taken a policy in favor of another change it without the consent of that other? 29. What does an application for life insurance usually containt 30. How and when can the policy be assigned? 31. On what is the premium based? 32. How may the premium be paid? 33. Explain the methods of a mutual company. 34. What other kind of company is there? 35. What is a participating policy? 36. What are the sources of profit that is divided among the policy holders? 37. What is an endowment? 38. Are policies usually forfeitable? 39. Define surrender value. 40. Is a company liable for a death by suicide? 41. What can you say of the growth of casuity insurance? 42. Explain accident insurance. 43. On what is the premium based? 44. Explain employer's liability insurance. 45. On what is the premium based? 46. Explain guaranty of title. 47. On what is the premium based? 48. Explain plate glass insurance. 49. Explain steam boiler insurance. 50. What does the insurance cover? 51. What does elevator insurance cover? 52. What does rent insurance cover? 53. Explain guaranty of honesty insurance. REAL ESTATE. CHAPTER. XLVII. V567. Definition.-Real property consists of such things as are permanent, fixed and immovable. It includes the minerals that are beneath the surface of the earth, and the water which is upon its surface, as well as whatever of a permanent nature is attached to the earth, such as buildings. 568. Source of our Law.-When we were a dependency of Great Britain we, of course, adopted her system of real estate tenures, so far as they were applicable to the conditions existing here. This formed the basis of our real estate laws, and as there is less disposition to change laws in reference to real estate than in any other branch of the law, this system still continues in the main the law of the land. For this reason, in cases of dispute, the old English decisions are still quoted in explanation or interpretation of our laws. 569. The Feudal System.-In order to understand our real estate law, it must be constantly borne in mind that it was not the result of any one enactment or enactments, but was the growth of decisions for centuries. Much of it originated at a time when personal property was deemed of more importance than real, and when war occupied no small portion of the time of the individual. The feudal system is said to have originated with the Vandals, and was carried with them when they overran Europe, at the decline of the Roman Empire. It was implanted in their colonies as a political measure, for it was deemed the most likely means of preserving their new acquisitions. To this end large districts or parcels of land were allotted by the conquering general to the superior officers of the army, and by them dealt out again in smaller parcels to the inferior officers and most deserving soldiers. These allotments were called feuds or fees, which in their language meant a conditional stipend, or reward. The condition annexed to them was that the possessor should do service both at home and in the wars to him by whom they were given; for this purpose he took the oath of fealty. It can be thus seen that each individual held his property only so long as he remained loyal. This gave to these conquerors such military power that the other nations were obliged to adopt the same plan in self defense, and it finally became the established rule throughout the western world. The system was introduced into England by William the Conqueror, who rewarded his followers with extensive possessions. In this country the title to all lands is deemed to have been originally derived, since the Revolution, from either the State or the United States. But the title is absolute or unconditional except as to the right of eminent domain. 570. Estates. -An estate is the nature and extent of interest which a person has in real property. There are many different kinds of estates in reference to their nature as well as to their extent, but only the most important ones will be here considered: 571. Fee Simple.-This is the largest estate possible to be had in property. It is the absolute title, subject, as we have said, only to the right of eminent domain. It is defined as an estate of inheritance, descendible absolutely and generally, the meaning of this being that the owner holds it not alone for his own life, but that he owns that future enjoyment which will descend to his heirs according to the rules of descent. This is the estate that is the most common in this country, and all property is so held by some one. The owner in fee simple may use the property as he may see fit, and he may sell it or dispose of it. Being an estate of inheritance, it will descend at his death to his heirs, unless he otherwise disposes of it by will. 1 See Section 21. 572. Fee Tail. This estate was once very common in England, and was one of the causes, as we shall see, of raising up and perpetuating the aristocracy and landed proprietors. It was one of the first features of the English real estate law to receive the condemnation of the courts and legislatures of this country. It was considered to be inimical to and opposed to our republican institutions. It is an estate of inheritance, but instead of being "descendible absolutely and generally," it is descendible to some particular heirs, exclusive of others. This has the effect of tying up the estate, and preventing its alienation, for it must go to the stipulated heirs at any event, if there are such; and if not, it reverts to the original donor. A grants by deed a certain piece of realty to B, and to the heirs of his body. This is a fee tail, and B has the use and enjoyment of it so long as he may live. At his death it descends to his lineal descendants, to the exclusion of his collateral descendants. If there be no lineal descendants, then the estate ends and reverts to A. This is the estate as it existed by common law, but as we have said, it is not at all favored in this country, as it without doubt tends to perpetuate a landed aristocracy. We have estates tail, however, in a limited sense in most, if not all of the states, but the restraint on alienation usually extends only to those who are in being at the time, and their immediate issue or descendants, after which the estate becomes a fee simple. It the full enjoy While he has 573. Life Estate.-A life estate is not an estate of inheritance. may be held for the life of the holder (called a life tenant), or for the life of another. A life tenant has the right to ment of the land, and all its profits, during his estate. the right to cut all necessary wood for fuel and repairs to fences and buildings, yet he is not permitted to commit waste, which is the destruction of the estate with respect to houses, wood or soil, to the lasting injury of the inheritance. This may be either actual or permissive, as where the buildings are permitted to go to decay. In the absence of agreement, the tenant should keep the premises in as good repair and condition as he found them, inevitable accidents excepted. He is entitled to emblements. These are the annual crops growing on the land at the termination of the estate. The theory is that the tenant, who could not foresee the death of the person on whose life the estate depended, planted in expectation of reaping. But where the tenant knows when the estate is to expire the emblements go to the next estate. There are two life estates common in this country, viz: Dower and Curtesy. 574. Dower. This is the life estate which the wife has in the onethird of all estates of inheritance of which her husband was seized during coverture, to take effect and be enjoyed at his death. The statutes have quite generally enlarged this by giving to her a portion of the personal property as well. It is to release her interest in this estate that a wife should join her husband in a conveyance of realty. The right exists as soon as the property is owned by the husband, but it is said to be inchoate, and does not become active estate until the husband's death. It terminates at her death, when it reverts to the original estate, and descends to the husband's heirs. The courts have always been watchful of this estate, and do not permit it to be barred without the wife's consent. Sometimes the husband leaves her by will a certain estate, or a certain amount of personal property, which is to be in lieu of dower, but she may elect to take the dower or her estate by the will, as she may wish. 575. Estate by Curtesy.-This is the converse of dower. It is the life estate which the husband has in his wife's estates of inheritance of which she was seized during coverture. There is one condition to the vesting or this estate, it is that there shall be issue born alive, and capable of inheriting the estate. It matters not that the child lived but a moment, it is sufficient if it breathed. Curtesy is abolished in some few states, and in some, notably Illinois, the husband has by statute the same interest in his wife's estate that she has in his. 576. Estate For Years.-This is the estate quite generally designated as a lease, but this is but a figure of speech, substituting the name of the instrument by which it is conveyed for the estate itself. An estate for years, no matter how long it may be, is considered as personal property, and has none of the dignity attached to a freehold. One who owns an estate for years is not a freeholder. freehold estate is any estate of inheritance, or a life estate. A freeholder even in this country is granted some privileges not accorded others. (See chapter 48.) A 577. Remainders.-This is another division of estates in reference to the time of enjoyment. A owning a fee simple in land wills a life estate to his son B, on the termination of which the remainder of the estate is to go to C. C's estate is an estate of remainder. |