however, that policies of insurance are instruments to which mercantile usage has assigned a certain meaning, and in their case the written part may reasonably be entitled to more weight than the printed." 1

§ 14. The policy may be in the form of a bond, or of any other form,2 so that the scope and meaning of it is an insurance; and a paper purporting to be conditions of insurance, if annexed to, and delivered with, a fire policy, is primâ facie a part of it, although the policy does not contain any express reference to such paper; the juxtaposition of the papers denotes the intention of the parties, though the evidence may be rebutted by parol evidence, as by showing, that the papers were connected by mistake. When reference is made in a policy to another document or paper, the contents of the document or paper become a part of it, although not actually embodied in the policy;5 but to have this effect, there must be

1 Alsager v. St. Katherine's Dock Co. 14 M. & Welsb. R. 704. As to the effect of written, in controlling printed clauses in policies of insurance, see Coster v. Phoenix Ins. Co. 2 Wash. (Cir. Ct.) R. 51; Grousset v. Sea Ins. Co. 24 Wend. (N. Y.) R. 209.

2 See ante, § 11, 12, et seq.

3 When the Protector Fire Office was instituted, the policy was laid before one of the most eminent common lawyers, and one equally eminent as a conveyancer, for the purpose of giving the public the best security upon this subject. Ellis, 2. See the form, Appx. p. v.

4 Murdock v. Chenango County Mutual Fire Ins. Co. 13 Comst. (N. Y.) R. 210; Roberts v. Chenango County Mutual Ins. Co. 3 Hill (N. Y.) R. 501; Beadle v. Same, Ibid. 161; Duncan v. Sun Fire Ins. Co. 6 Wend. (N. Y.) R. 488; Sexton v. Montgomery County Mutual Ins. Co. 9 Barb. (N. Y.) Sup. Ct. R. 191. As a general rule, an indorsement made upon an instrument before it is executed, may be parcel of the obligation. Emerson v. Murray, 4 N. Hamp. R. 171; it being a contemporary act. Preston, 8 T. R. 483; Stocking v. Fairchild, 5 Pick. (Mass.) R. 181; Etna Fire Ins. Co. v. Tyler, 16 Wend. (N. Y.) R. 399.

Burgh v.

5 1 Duer, 19, et seq.; Burritt v. Saratoga Mutual Fire Ins. Co. 5 Hill, (N. Y.) R. 188.

an express stipulation, that the policy was made and accepted in reference to such other document or paper, (e. g. application for insurance and conditions annexed.) The words"Reference being had to the application of said H. (the assured) for a more particular description and the conditions annexed, as forming a part of this policy," make the conditions annexed to it, and the application, as much a part of the policy as if they had been written on its face. But without so clear and express a stipulation, the court would not hear evidence, that it was the custom of the insurer to consider a written memorandum wrapped up in, or wafered to a policy, as a part of such policy.3

§ 15. The principles on which the ratio of premiums paid for fire insurance is determined, are simply those which experience shows to be most equitable, according to the number of fires and the amount of property consumed on the average of a great number of years. If the premium is felt to be too high, the competition between different companies will generally bring it down to a proper level. The officers, in general, in order to render the operative part of the contract more concise, introduce the scale of premiums applicable to the different risks by indorsement upon the policy, referring to them, so as to make them a part of the contract; and these indorsements usually consist of a table of premiums to be paid1. In respect of such as are called "common insurances," or those for which the lowest rate of premium is to be paid, as

1 Snyder v. Farmers Ins. and Loan Co. 13 Wend. (N. Y.) 92; Jefferson Ins. Co. v. Cotheal, 7 Wend. (N. Y.) R. 72; Andrews v. Essex Fire and Marine Ins. Co. 3 Mason, (Cir. Ct.) R. 6; Delonguemare v. Tradesman's Ins. Co. 2 Hall, (N. Y.) R. 589; Stebbins v. Globe Ins. Co. 2 Ibid. 632.

2 Jennings v. Chenango County Mutual Ins. Co. 2 Denio, (N. Y.) R. 75; Burritt v. Chenango County Mutual Ins. Co. 5 Hill, (N. Y.) R. 188; Wall v. Howard Ins. Co. 14 Barb. (N. Y.) Sup. Ct. R. 383.

3 Pawson v. Burnevelt, Doug. R. 12, note; and see Beaumont on Ins. 54; and see post, Chap. VI.

buildings, which, from their construction, materials, or use, are exposed to the least degree of hazard. 2. In respect of such as are called "hazardous insurances," as buildings, which, from their materials or construction are more susceptible of ignition, but in which no hazardous trades are carried on, or hazardous goods deposited; buildings not of a hazardous nature, as those of the first class, but in which hazardous trades are carried on, or some circumstances of hazard are attached, as the presence of stoves; the stock and goods of various specified traders, whose occupation exposes the goods to hazard; various specified articles of trade of a hazardous nature deposited in buildings not hazardous. For insuring these a higher rate of premium is to be paid.1 3. In respect to such risks as are called "doubly hazardous insurances," such as buildings, which, from their construction or materials are of a hazardous nature, in which hazardous goods are deposited, or hazardous trades are carried on, thus exposing the insurers to an increased liability of ignition, both from the nature of the buildings and the goods contained in them, or trades carried on; for insuring these a still higher premium is to be paid.2

§ 16. There are besides, cases of special or extraordinary risk, as those of sugar refineries and manufactories, not included in the usual tables of premiums. These are most generally made the subjects of special agreements, all the circumstances of the case being taken into consideration.

1 Ellis on Life and Fire Insurance, 11. The attention of this author was necessarily directed to the subjects of both fire and life insurance, in consequence of his having been professionally connected with two offices, in England, of very extensive business; and in addition to the experience which that connection afforded him, he was favored by them with much valuable information upon the details and practical operations of business. See his Preface.

2 Ellis on Life and Fire Insurance, 11. See post, Chap. XXI. § 418, et seq.

Money and securities for money are not in general insured upon any terms.1

§ 17. After these tables of premiums, there usually follow the conditions or proposals, which the assured must comply with at his peril, as they form part of the policy and are conditions precedent, upon a due compliance with which must depend his right to indemnity in case of loss. The most important conditions are usually to the following effect: The assured, upon effecting a policy, must give an accurate description of the construction and nature of the premises and goods to be insured, for upon that statement the insurers fix the amount of the premium to be paid, or exercise their discretion by rejecting the insurance altogether. This is a point of the utmost importance for a party about to insure, to attend to; for even without any special condition, a misrepresentation, whereby a less premium is paid than would be payable if a true statement had been made, even without a fraudulent intent, would, upon common principles of insurance, be sufficient to render the policy void.2

1 Ellis on Life and Fire Ins. 11.

2 See Park on Ins. 285; Fitzherbert v. Mather, 1 T. R. 12. See post, Chap. VI. § 142. See the conditions indorsed, on which the Protector Fire Insurance Company make insurance from loss or damage by fire. Appx. p. v. Dowdeswell, in his small work on Life and Fire Insurances, pp. 82, 83, has the following: "COMMON INSURANCES:-1. Buildings covered with slates, tiles, or metals, and built on all sides with brick or stone, or separated by party-walls of brick or stone, and wherein no hazardous trade or manufacture is carried on, or hazardous goods deposited. 2. Goods in buildings as above described, such as household goods, plate, wearing apparel, and printed books, liquors in private use, merchandise, and stock, and utensils in trade, not hazardous,— at 1s. 6d. per cent. per annum, with certain exceptions. HAZARDOUS INSURANCES:- Buildings of timber and plaster, or not separated by partition walls of brick or stone, or not covered with slates, tiles, or metals, and thatched barns and outhouses having no chimney; and buildings falling under the description of common insurances, but in which hazardous goods are deposited or hazardous trades or manufactures are carried on. 2. Goods,All the stock and goods of bread-bakers, tallow-chandlers, (not melters,)

§ 18. Where the conditions exhibited one sort of goods as not hazardous, and another as hazardous, the assured cannot offer proof, that no greater risk attached to the insurance of the latter than the former, nor that a particular article, asserted in the conditions to belong to one of the classes, did in reality belong to another class. A description of the goods as belonging to the former class, is a warranty of that fact, and is in the nature of a condition precedent. Such a representation extends not merely to the time of taking the policy, but it warrants that the goods shall continue to be of that description during the whole continuance of the policy; and that not merely a part of the goods, but all of them, are, and shall be of that description. It has been consequently held, that where a policy was taken upon "a stock in trade, consisting of not hazardous merchandise," and the insured kept, among other goods, for sale, the articles of oil and glass, which in the "conditions" were denominated "hazardous," the policy was thereby vacated.1

chemists, innholders, and stable-keepers, together with all manner of fodder and corn unthrashed, at 2s. 6d. per cent, per annum, with certain exceptions. DOUBLY HAZARDOUS INSURANCES: 1. Buildings,-All thatched buildings, having chimneys, or communicating with or adjoining to buildings having one, although no hazardous trade shall be carried on, nor hazardous goods deposited therein; and all hazardous buildings in which hazardous goods are deposited, or hazardous trades carried on. 2. Goods,- All hazardous goods deposited in hazardous buildings, and in thatched buildings having no chimney, nor adjoining to any building having a chimney; also china, glass, mathematical and musical instruments, pictures, and jewels in private use, at 4s. 6d. per cent. per annum. There are, however, other circumstances enhancing the danger, which may bring the property to be insured within a FOURTH class, which are termed SPECIAL or EXTRAORDINARY risks. This classs includes mills and stock contained in them: mills containing any kiln, steam-engine, stove or oven, used in any manufactory, and stock therein, and also any other special hazard. Such special hazard must be set forth in the policy, and according to the probability of injury, the premium is assessed.

1 Richards v. Protection Ins. Co. 17 Shepl. (Me.) R. 273. See post, Chap.