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the insured by any accident. The proceeds are payable to the person himself in case of injury. These policies do not cover mere illness, but such things as ivy poisoning, etc., which are regarded as accidents, are included.

Sometimes there is a dispute as to what constitutes an accidental injury. Thus, although infected water might be drunk through accident and serious illness result, one could not collect an indemnity; whereas one could collect on injuries due to inhaling gas, poison taken by mistake, etc.

Many companies will not pay if the insured exposed himself to unnecessary risk such as jumping on a moving streetcar; nor will they pay for injuries received while intoxicated, though in this regard there is sometimes great difficulty in deciding if a person's intoxication were such as to make him more liable to injury, and if it were not they would have to pay.

All accident policies provide lump-sum indemnities for such injuries as the loss of a hand, etc.

§ 249. Health Insurance

Some companies insure against sickness and ill health. Usually these policies name a list of diseases in event of which a weekly indemnity is granted. In some cases the health insurance is allowed only in conjunction with accident insurance. Some of the fraternal orders allow their members sick benefits which are the equivalent of health insurance. Practical difficulties in administering the business of insuring against sickness have limited its development. A savings account is probably the best provision against ill health.

$250. Group Insurance

Group insurance is a plan to insure a number of the employees of one employer offering an eligible group, without individual medical examination, under one blanket contract

issued to the employer. It is generally applied only to life insurance though the principle of insuring a group could logically be applied to accident and health insurance at least.

The premiums for this insurance are paid monthly by the employer and the insurance is payable to the beneficiary named by the employee. Ordinarily the basis of insurance is one year's salary with a maximum of $3,000 to any individual. Any employee receiving annual remuneration in excess of that sum would receive only $3,000 insurance.

If it is desired by the employer, the insurance company will settle the insurance benefits in twelve monthly payments. This would amount to a continuance of the pay check for a full year in the event of death while in service during which time the beneficiaries would be able to adjust themselves to the changed conditions caused by the death of the breadwinner.

The operation of the plan is simple. New incoming ememployees are automatically included upon passing a simple health test and the insurance by the employer on outgoing employees ceases upon termination of service.

The cost depends on the age and annual wage of each employee. It would be approximately 14 per cent to 11⁄2 per cent of the annual pay-roll.

§ 251. Liability Insurance

Liability insurance is to protect the employer from liabilities arising under the Employers' Liability or Workmen's Compensation Acts. (See §§ 279, 280.) In many states it is possible to take out this form of insurance with a state fund. There is also automobile liability insurance, which covers liability for injuries to others resulting from the use of the automobile. Railroad companies may take out insurance (carriers' liability insurance) to protect them against liability to passengers and others, for injuries arising from railroad accidents.

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§ 252. Title Insurance

In order to protect purchasers of real estate against the expense of lawsuits arising from possible defects in the title to the property, a business of investigating and insuring the title has grown up. Title insurance companies generally furnish both title searches and insurance. As with most other insurance of this nature, the company generally settles the claim or defends the suit on notice from the insured that he has been served with a notice of suit.

§ 253. Burglary Insurance

This is one form of what is known as casualty insurance, that is, insurance against accidents to property of various kinds other than loss by fire. It is, as the name implies, insurance against loss of property by theft. It applies only when the theft is committed by someone breaking into the house or building where the property is kept, unless the policy states otherwise. It would not cover having one's pocket picked.

§ 254. Plate Glass Insurance

This is insurance on large plate glass windows because of the great expense of replacing them. It also is a form of casualty insurance. Where the windows are injured in a fire, if there is any insurance other than the glass insurance policy on them or on the building, only an amount proportioned to the relation of that policy to the whole amount of insurance on the building can be collected on the plate glass insurance policy.

§ 255. Automobile Insurance

Many companies offer automobile insurance. What is known as a full cover on an automobile includes insurance against the hazards of:

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5. Damage to other property by being in collision with the automobile insured-known as property dam

age.

6. Damage to the automobile insured by being in collision with some other object.

7. Loss of life or injury to the occupants of the car and legal liability for expenses in connection therewith. 8. Loss of life or injury to others and legal liability for expenses in connection therewith.

The rates are high to compensate for the very considerable risks. What is known as the "moral hazard," i.e., the risk of unfair dealing by owners, is great, and hard to guard against. The enumeration of hazards shows the varied possibilities of loss and damage.

§ 256. Other Forms of Insurance

Boiler Insurance. This is insurance against injuries to property arising from boiler explosions, another form of casualty insurance. A fire insurance policy does not cover such a loss unless the explosion resulted from a fire.

Burial Insurance. This form of insurance is in operation among the very poor. In return for certain weekly or monthly payments, the company guarantees to pay the expenses of a decent burial.

Credit Insurance. Credit insurance is insurance against the dishonesty or the insolvency of debtors.

Fidelity Insurance. Fidelity insurance is insurance against losses arising from fraud or dishonesty on the part of agents or employees. There are three forms of fidelity bonds: first,

the larceny or embezzlement bond; second, the culpable negligence bond; and third, the faithful performance bond. The last is the most comprehensive and the most costly.

Hail Insurance. This is common in the grain states, where the farmers often suffer heavy loss because of the damage hailstorms do their crops.

Live Stock Insurance. Blooded animals are so valuable that their owners find it necessary to protect themselves against loss by carrying insurance against disease or death.

Rent Insurance. This is insurance for the loss of rents owing to the failure of tenants to pay rent, or to a destruction of the property by fire or some other calamity.

Strike Insurance. An employer can even insure himself against strikes on the part of his employees, and the consequent losses.

Tornado Insurance. As its name indicates, this is insurance against damages and loss of property arising from tornadoes.

REVIEW QUESTIONS

1. What three requirements are essential to the contract of marine insurance?

2.

Has a stockholder an insurable interest in a steamboat owned
but not insured by the corporation?

3. What is "general average”?

4. What is "particular average”?

5.

What risks are usually covered by an accident insurance policy? 6. What is group insurance?

7. What is the usual purpose of liability insurance? Who takes

out the policy?

8. What is title insurance?

10.

9. What does the owner of an automobile want insurance against? Who takes out fidelity insurance? What is the simplest form? Under this form could the holder of the policy recover if his employee lost the money?

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