2. Twenty-payment life 6. Endowment at age of sixty-two In all cases except where the policyholder lives to draw the endowment himself, the benefit is paid on the monthly income plan, payments covering twenty years. A disability clause is attached to all these policies, whereby if the policyholder is totally and permanently disabled, the government waives premiums and pays him for the remainder of his life, the monthly income his beneficiary would have had. This deprives the beneficiary of any payments except where the insured dies before 240 payments are made to him. In such a case, the beneficiary receives a monthly income for the remainder of the twenty years. All matters relating to this subject are controlled by the Bureau of War Risk Insurance, Washington, D. C. In case the Bureau gives an adverse decision on any claim, appeal may be taken to the federal courts. REVIEW QUESTIONS I. What is meant by an insurable interest in another person's life? What are the three methods of life insurance? Explain each. 2. 3. Explain the following classes of policies: Participation, nonforfeitable, whole life, limited payment life, endowment, and term. 4. One Williams had a life insurance policy in the American Life Insurance Company for $10,000. The policy provided that if the annual premium was not paid on the day it became due the policy should become void. Williams became ill and failed to pay the premium on the day it was due, and about a week afterwards his son wrote the office of the company in care of the president, and told him that his father was ill, and asked that the time be extended. The president wrote back that if he would pay the premiums within one week it would be all right. Williams died the following day, and before the week elapsed, the son came and tendered the premium, which the company declined to receive, and denied any liability on the policy. Is the company liable thereon? Give your reasons for your answer? Can the beneficiary be changed? 6. When can the beneficiary assign his rights? 7. Why did the government arrange to insure its soldiers and sailors? 8. Into what forms was this converted at the close of the war? CHAPTER XXXIX SUNDRY INSURANCE CONTRACTS $245. Enumeration In addition to fire and life insurance, there are sundry other insurance contracts, such as marine, accident, health, group, liability, title, burglary, plate glass, automobile, boiler, burial, credit, fidelity, hail, live stock, rent, strike, and tornado. In all of these the policies call for certain representations which must be truthful; and proofs of loss must be made out and, as a rule, sworn to, when payment of a loss is claimed. § 246. Marine Insurance This is the oldest form of insurance, older than either fire or life insurance. It originated in Lloyd's Coffee House in London, and the policy is known as Lloyd's. The policies were passed around among the dealers in insurance, and each took such share of any given risk as he cared to. These subscribers were called underwriters and in case of loss they were assessed in proportion to their subscriptions to pay the loss. The business is handled by regular incorporated companies today. Its object is to protect the insured against losses on a vessel at sea. Marine policies may also be taken out on ships traveling in any navigable waters. The policy covers losses by fire, various forms of shipwreck including losses incurred in trying to avert shipwreck, and losses from piracy. The insured is by custom held to be in duty bound to give the insurer all information in his power with regard to the ship, the voyage, the cargo, or anything else that might affect the risk. If he conceals anything or makes any false representations, the policy will not take effect. The person taking out marine insurance must fulfil the following requirements: I. 2. 3. He must have an insurable interest in the goods or vessel insured. He must warrant that the vessel is seaworthy. He must warrant that the goods insured were in good condition when taken on board. If any of these conditions are not met, the insurer will not be liable. In a marine policy, the amount payable in case of loss is fixed by the policy, and no attempt at valuation is made unless the loss is incomplete. Marine policies also cover what is known as general average. Proofs of loss, giving full particulars of the nature, amount, and cause of the damage must be made out and sworn to by the master and crew of the vessel; and then an investigation is made either by some government surveyor of the port, or by experts chosen by the parties to the contract. In the event of a dispute as to the amount of the damage, the damaged goods are sold at auction and the amount determined in that way. The insured must show bills of lading or other documents to prove his ownership of damaged goods, and the policy cannot be assigned without the underwriter's consent. In the American Lloyd's policies it is provided that if there is any prior insurance on the vessel the underwriters shall be liable only to the extent that the prior policies do not cover the loss. § 247. General and Particular Average From the earliest times, it has been the custom, where goods were jettisoned (i.e., thrown overboard at sea to save the vessel), for the other owners of merchandise on board and the owners of the vessel to contribute proportionately to make good the loss. This is called "general average." In calculating the assessment the owner of the lost goods is included; it follows that he is never reimbursed by general average for his full loss. The assessment is a lien against the goods until the entire amount is paid. The underwriter takes upon himself the responsibility of collecting this contribution. The term "particular average" is applied to the payment for partial loss. This refers to actual insurance on the particular thing or goods insured and is paid by an insurance company. The clause reads generally to this effect: "no partial loss or particular average shall in any case be paid, unless amounting to 5 per cent." Then if less than 5 per cent of the goods is completely lost, no claim at all can be made against the insurance company; or if the whole cargo is damaged to a slight extent, no claim can be made. The term to indicate that a policy does not cover partial losses, is "free of particular average," often abbreviated to F. P. A. The opposite term, indicating more complete insurance at a higher rate, is "with average" (W. A.) or “against all risks” (A. A. R.) Note: 1. Anyone taking out a marine policy should be careful to note just what dangers it protects against, especially what provision it makes in case of war. In the Lloyd's policy it is necessary to make a special arrangement, as the ordinary policy expressly releases the insurer from damages arising from the perils of war. $248. Accident Insurance Accident insurance is insurance against injury or death by accident. The policy may cover injury only, or it may also provide for a payment to a beneficiary in case of the death of |