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An examination of the various types of marine policies in use in the United States shows that numerous titles are employed to designate them according to the subject matter insured. Thus among the various types of policies issued by American companies there are so-called "vessel policies," "vessel and freight policies," "cargo policies," "steamboat policies only," "tug policies," "stranding or collision policies only," "lighterage policies," "yacht policies,” “whaling and fishing policies," "canal hull policies," "river cargo policies," "lake cargo and vessel policies, 'cotton policies," "builders' policies," etc. While a comparison of these numerous policies in different companies shows that scarcely two are exactly alike, yet a closer examination, whether we regard vessel, cargo, or freight policies, will show that they have all been adapted to the particular risk from a common form, and that, despite variations, the printed form of the contract is approximately the same as regards essential particulars. The only real difference exists in the adaptation of the contract to meet certain particular conditions, and not in the essential form or content of the document itself.

As special circumstances may render one form of policy more desirable than another, marine policies may also be conveniently grouped into four classes, according to the nature of the risk assumed, or the manner in which the policy is executed. Briefly stated, this fourfold classification depends, first, upon the manner in which the value of the subject matter of the insurance is expressed in the policy; second, upon the absence or presence in the policy of the name of the vessel which is to make the voyage; third, upon the period of time during which the risk is covered; and, fourth, upon the interest of the policy-holder in the subject insured.

Under the first classification the policy may be either "valued" or "open"; a valued policy being one which stipulates some agreed value (not necessarily the real value), such

as $1,000 worth of goods, or a ship worth $50,000; an open policy, on the contrary, being one which omits to specify the value of the subject insured, but leaves this to be ascertained when a loss occurs. The important difference between the

two is that in case of total loss, in the absence of fraud, the valued policy entitles the insured to receive the value specified in the policy without proving the loss, while the open policy makes necessary an adjustment as proof of the loss incurred. In case of partial loss, however, this difference does not exist, since the same adjustment must be made, irrespective of whether the policy is open or valued.

Similar to the two types of policies just named is the second classification, namely, that referring to the presence or absence in the policy of the name of the vessel for a particular voyage. Under this classification policies may be either "floating" or "named." By a floating policy is meant one which describes the limits of the voyage, the value of the property insured, and the type or class of vessel to be employed, but does not specify any particular vessel. The policy, in other words, is stated to apply to any "ship or ships." The wording is thus made sufficiently broad to enable a merchant to insure his goods before ascertaining the name of the vessel on which they will be shipped, and to give him protection in case of loss, before he is able to make a specific insurance. As soon, however, as the name of the vessel employed on the voyage becomes known to the insured, this information, together with any important attending facts, is "declared" to the underwriter and "indorsed" on the policy, thus making it a "named" policy instead of a "floating" one.

Under the third group there may be either "voyage" or "time" policies, the first denoting insurance for a specified voyage, as from New York to Liverpool, and the second referring to insurance for a period of time, usually one year. Lastly, we may have what is called an "interest' policy, or

one clearly indicating that the insured possesses a true and substantial interest in the subject matter of the insurance, such as one hundred bales of cotton or a thousand bushels of wheat. In contrast to this type of policy is the "wager" policy, which, as its name implies, clearly shows that the holder has no insurable interest in the property covered by the policy, or that the underwriter, at least, will not demand proof of the same. One of the cardinal principles of insurance law is that an insurance policy, to be valid, must represent an insurable interest on the part of the insured. Hence in a wager policy it is customary to insert such expressions as, "interest or no interest," "policy proof of interest," and the like, which signify that by common agreement between underwriter and insured, the latter is entitled to the payment provided in the policy upon the loss of the subject insured, irrespective of the fact that he has no strictly insurable interest in the same. Owing, however, to the universal observance of the principle of insurable interest, it would be very difficult to collect on such a policy in any American court. In England, where such policies have been declared void by statute, they still continue to exist to a limited extent; their fulfilment, however, resting on the basis of so-called "honor" agreements.

Marine insurance, as already noted, in connection with the discussion of Lloyd's policy, has had a development of several centuries. Though introduced several hundred years ago, Lloyd's policy still furnishes illustrations of the quaint language of earlier days, and affords a just basis for the characterization, often made, that it is an "incoherent and antiquated instrument." But whatever may be said against the policy, because of its poor adaptation to the needs of modern commerce, is largely counterbalanced by the advantage of the certainty in meaning and the stability in marine transactions, which become possible through the use of a policy which has back of it several centuries of legal deci

sions, and which has acquired a more and more definite meaning, until, to-day, nearly every word it contains has been interpreted by the courts. It is this desire to have a definite and interpreted contract as the basis of marine-insurance transactions which has been largely responsible for the fact that numerous features of Lloyd's policy have been incorporated and retained in American policies to this day. Many important changes have been introduced into American policies as compared with the Lloyd's form, yet in some important particulars, like the enumeration of the perils against which insurance is taken, the influence of Lloyd's is still clearly apparent.

FORM OF APPLICATION FOR MARINE INSURANCE

COASTWISE APPLICATION

Insurance is wanted by

Company, of

for account of whom it may concern, loss, if any, payable in funds current in the United States or in the city of New York to the said company or order.

It is understood and agreed that this insurance is to cover the liability assumed by the ... Company with

respect to merchandise transported by it which the assured or any of their agents or any of their railroad or other connections may have agreed or may agree, whether by written agreements, arrangements, or understandings, or otherwise, with owners, shippers, consignees, or others interested in or connected with said merchandise, to insure touching the adventures and perils specified in the body of the policy.

To attach from the time that the merchandise is receipted for or in the custody of the assured company and to continue until the delivery of the merchandise to consignees or connecting carriers, including lighterage and transshipment, but neither at the port of loading nor port of destination is the risk of fire to exceed five days before loading or after discharge.

Each shipment or interest and/or each kind of goods therein, subject to separate particular average as if separately insured.

It is also understood and agreed that the liability of the assured

as common carriers, as to interests insured hereunder, is covered in conformity with the printed conditions of this policy.

Goods on deck warranted by the assured free from loss by wet, leakage, breakage, or exposure.

Proof of loss to be authenticated by the agent of the company, if there be one, at the place such proofs are taken.

Warranted by the assured free from claim on account of capture, seizure, detention, or destruction, by or arising from hostile forces, civil commotions, riots, or by the acts of officers or other persons acting in the name of belligerents, or in pursuing warlike operations whether before or after declaration of war.

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