KFLCC Kingdom Law 2nd Ed.

642

INSURANCE

INSURANCE

S roperty resulting from such explosion.— Title isurance. Insurance against loss or damage resulting from defects or failure of title to a particular parcel of realty, or from the enforce ment of liens existing against it at the time of the insurance. This form of insurance is taken out by a purchaser of the property or one loan ing money on mortgage, and is furnished by companies specially organized for the purpose, and which keep complete sets of abstracts or duplicates of the records, employ expert title examiners, and prepare conveyances and trans fers of all sorts. A "certificate of title" fur nished by such a company is merely the for mally expressed professional opinion of the company's examiner that the title is complete and perfect (or otherwise, as stated), and the company is liable only for a want of care, skill, or diligence on the part of its examiner; where as an "insurance of title" warrants the valid ity of the title in any and all events. It is not always easy to distinguish between such insur ance and a "guaranty of title" given by such a company, except that in the former case the maximum limit of liability is fixed by the poli cy, while in the latter cast the undertaking is to make good any and all loss resulting from defect or failure of the title.— Tornado insur ance. Insurance against injuries to crops, timber, houses, farm buildings, and other prop erty from the effects of tornadoes, hurricanes, and cyclones. Other compound and descriptive terms. —Concurrent insurance. That which to any extent insures the same interest against the same casualty, at the same time, as the primary insurance, on such terms that the in surers would bear proportionately the loss hap pening within the provisions of both policies. Rubber Co. v. Assur. Co., 64 N. J. Law, 580, 46 Atl. 777; Corkery v. Insurance Co., 99 Iowa, 382, 68 N. W. 792; Coffee Co. v. Insur ance Co., 110 Iowa, 423, 81 N. W. 707, 80 Am. St. Rep. 311.— Double insurance. See DOUBLE.— General and special insurance. In marine insurance a general insurance is effected when the perils insured against are such as the law would imply from the nature of the contract considered in itself and sup posing none to be specified in the policy; in the case of special insurance, further perils (in addition to implied perils) are expressed in the policy. Vandenheuvel v. United Ins. Co., 2 Johns. Cas. (N- Y.) 127.— Insurance agent. An agent employed by an insurance company to solicit risks and effect insurances. Agents of insurance companies are called "general agents" when clothed with the general over sight of the companies' business in a state or large section of country, and "local agents" when their functions are limited and confined to some particular locality. See McKinney v. Alton, 41 111. App. 512; State v. Accident Ass'n, 67 Wis. 624, 31 N. W. 229; Civ. Code Ga. 1895, § 2054.— Insurance broker. A broker through whose agency insurances are effected. 3 Kent, Comm. 260. See BROKER. —Insurance commissioner. A public of ficer in several of the states, whose duty is to supervise the business of insurance as con ducted in the state by foreign and domestic companies, for the protection and benefit of policy-holders, and especially to issue licenses, make periodical examinations into the condi tion of such companies, or receive, file, and publish periodical statements of their busi ness as furnished by them.— Insurance com pany. A corporation or association whose business is to make contracts of insurance. They are either mutual companies or stock companies. A "mutual" insurance company is one whose fund for the payment of losses con sists not of capital subscribed or furnished by outside parties, but of premiums mutually contributed by the parties insured, or in oth er words, one in which all persons insured

gations on the part of the other contracting party; to this class belong policies of contract credit and title insurance. Cowles v. Guaranty Co., 32 Wash. 120, 72 Pac. 1032, 98 Am. St. Rep. 838.— Employer's liability insurance. In this form of insurance the risk insured against is the liability of the assured to make compensation or pay damages for an accident, injury, or death occurring to a servant or oth er employe in the course of his employment, either at common law or under statutes impos ing such liability on employers.— Fidelity in surance is that form of insurance in which the insurer undertakes to guaranty the fidelity of an officer, agent, or employ^ of the assured, or rather to indemnify the latter for losses caused by dishonesty or a want of fidelity on the part of such a person. See People v. Rose, 174 111. 310, 51 N. E. 246, 44 L. R. A. 124.— Fire insurance. A contract of insurance by which the underwriter, in consideration of the premium, undertakes to indemnify the in sured against all losses in his houses, buildings, furniture, ships in port, or merchandise, by means of accidental fire happening within a prescribed period. 3 Kent, Comm. 370; Mu tual L. Ins. Co. v. Allen, 138 Mass. 27, 52 Am. Rep. 245; Durham v. Fire & Marine Ins. Co. (C. C.) 22 Fed. 470.— Fraternal insur ance. The form of life or accident insur ance furnished by a fraternal beneficial associa tion, consisting in the undertaking to pay to a member, or his heirs in case of death, a stipu lated sum of money, out of funds raised for that purpose by the payment of dues or assess ments by all the members of the association.— Guaranty insurance is a contract whereby one, for a consideration, agrees to indemnify an other against loss arising from the want of in tegrity or fidelity of employes and persons hold ing positions of trust, or embezzlements by them, or against the insolvency of debtors, losses in trade, loss by non-payment of notes, or against breaches of contract. See People v. Rose, 174 111. 310, 51 N. E. 246, 44 L E. A. 124; Cowles v. United States Fidelity & Guaranty Co., 32 Wash. 120, 72 Pac. 1032. — Life insurance. That kind of insurance in which the risk contemplated is the death of a particular person; upon which event (if it occurs within a prescribed term, or, according to the contract, whenever it occurs) the insurer engages to pay a stipulated sum to the legal representatives of such person, or to a third person having an insurable interest in the life of such person.— Live-stock insurance. In surance upon the lives, health, and good condi tion of domestic animals of the useful kinds, such as horses and cows.— Marine insurance. A contract whereby, for a consideration stipu lated to be paid by one interested in a ship, freight, or cargo, subject to the risks of marine navigation, another undertakes to indemnify him against some or all of those risks during a certain period or voyage. 1 Phil. Ins. 1. A contract whereby one party, for a stipulated premium, undertakes to indemnify the other against certain perils or sea-risks to which his ship, freight, and cargo, or some of them, may be exposed during a certain voyage, or a fixed period of time. 3 Kent, Comm. 253. Marine insurance is an insurance against risks con nected with navigation, to which a ship, car go, freightage, profits, or other insurable inter est in movable property may be exposed during a certain voyage or a fixed period of time. Civ. Code Cal. § 2655. A contract of marine insur ance is one by which a person or corporation, for a stipulated premium, insures another against losses occurring by the casualties of the sea. Code Ga. 1882, § 2824.— Plate-glass insurance. Insurance against loss from the accidental breaking of plate-glass in windows, doors, show-cases, etc.— Steam boiler insur ance. Insurance against the destruction of Eteam boilers by their explosion, sometimes in cluding indemnity against injuries to other