274. What is the effect of insuring the same property in more than one company without giving notice of the other insurances?

Policies usually contain a condition requiring notice of all previous insurances upon the same property to be given to them at or before the time of making the insurance, and of all subsequent insurances within a reasonable time thereafter, or the policy to be void and of no effect; but without this special condition in the policy, a party effecting a double insurance can only recover the actual amount of his loss, and if he sue one insurer for the whole, that insurer may compel the others to contribute in proportion to the sums they have respectively insured. Double insurances without notice are said to be opposed to the first principles of insurance, for in this way an individual might recover many indemnities, for one loss, which would open. a great temptation to fraud.

Where an insurance has been effected on the same property in several different offices, and one or more of them becomes insolvent, it is prudent to surrender or cancel the policies in such companies, and give notice to the others, for, in case of loss, the solvent companies will only pay their proportion of all existing policies. Thus, an additional insurance in a weak company may reduce, instead of increase, the total insurance.

275. What is necessary to give validity to an ASSIGNMENT of a policy of insurance?

Great care should be taken to have all transfers of policies regularly made and notified, and the consent of the company duly indorsed or certified, and all the rules or usages of the insurers in this respect complied with. It has been before observed that the insured, in order to

recover on a policy of insurance, must have an interest in the subject of the insurance at the time of the insuring, and also when the loss happens. The mere assignment of a policy is useless, unless the subject insured is assigned also; but if a policy be assigned to a person already in the possession of the subject insured, and the office allows the assignment, it will bind them—the assignment, as against them, being considered a new contract. Without notice, however, it is very questionable whether the holder can have any legal demand against the insurers, notwithstanding the assignment; and if the assignment be made to him after the fire happens, and without consent of the office, though he may have become possessed of the premises or goods before the time of the fire, it is certain he cannot

recover.

276. Is the damage which is caused by the indirect effect of excessive heat covered by an insurance against fire?

The risk taken being that of fire the insurers are not chargeable for any damage which is not caused directly by ignition or combustion. But "if there be actual ignition, the insurers are liable for the immediate consequences, as the injury from water used to extinguish the fire, or injury to and loss of goods caused by their removal from immediate danger of fire; but not from a mere apprehension from a distant fire, even if it be reasonable; and not if the loss or injury might have been avoided by even so much care as is usually given in times of so much excitement. and confusion."

[Lightning is not fire; and if property be destroyed by lightning, the insurers are not liable unless there was also ignition, or unless the policy expressly insured against

lightning. An explosion caused by gunpowder is a loss by fire; not so, it is said, is an explosion caused by steam. Scientifically, it might be difficult to draw a wide distinction between these cases; but the difference seems to be sufficient for the law.]

277. Will a policy of insurance on HOUSEHOLD FURNITURE, or STOCK IN A STORE, cover articles not strictly of this description?

It has been decided that an insurance expressed to be on household furniture would not cover jewels, plate, paintings, statuary, sculpture, or other similar articles of mere ornament; and that by an insurance on a "stock in a store," books of account, securities, or evidences of debt, deeds, writings, money or bullion, unless particularly specified, are not protected. It is not uncommon for companies that insure plate, pictures, statuary, books, or the like, to agree on what shall be the value in case of loss.

278. Can goods that are described in the policy of insurance as in a certain building, be removed to another without vitiating the insurance?

Not without consent of the company, or the use of some phraseology that the goods were to be considered insured wherever situated. "An insurance of chattels, described as in a certain place or building, would be held to amount to a warranty that they should remain there."

279. When a LOSS occurs, what is the duty of the insured?

It is the duty of the insured to give the company prompt notice of the loss, and to present such certificates as are

required by the rules of the office. A reasonable time is of course to be allowed to present evidences of loss, but where the policy stated that a certificate should be furnished "as soon as possible," it was held that a delay until March after a fire which took place in November was not a sufficient compliance with the conditions. So a delay of thirtyeight days in giving notice of loss was held to release the insurers.

280. When a loss occurs is it optional with the insurance companies to pay the amount insured, or to replace the property destroyed?

Most of the fire policies used in this country give the insurers the right of rebuilding or repairing the premises destroyed or injured by fire instead of paying the amount of the loss. But where they elect to rebuild or repair, and the cost does not equal the amount insured, the balance is not extinguished, but remains as an insurance on the new building, or, in other words, if the new building burn down while the policy continues, the insured may claim so much as, added to the cost already incurred, shall equal the sum for which he was originally insured.

When it is desired to insure loss of rent, or of profits, during the time the premises are being rebuilt, this must be specifically stated, otherwise the policy will not cover it.

281. Will non-payment of the PREMIUM vitiate a policy of insurance?

In insurance against fire it is important, on taking out the policy, to pay the premium. Policies against fire usually contain a provision or condition that no order for an insurance shall be of any force until the premium be

first paid to the company and all persons desirous of continuing their insurances can do so only by a timely payment of the premium. In marine policies, the nonpayment of the premium will not affect the validity of the insurance.

The subject of Marine Insurance is so comprehensive and full of points that it would require an entire volume for its consideration.