This policy the co's regulations.

entled to participate in profits in accordance with Form 228.

The blank in the above clause will be filled up with the words “is," or "is not" as arranged. This plan saves needless multiplication of policy forms. But a great many offices in lieu of this clause add to the preceding clause in the case of participating policies the words "Together with such sum or sums, if any, as under the provisions of the company's regulations shall have been appropriated by way of bonus, and added to the principal sum assured."

This policy is subject to the conditions, [see infra, p. 301, et seq.] indorsed hereon which are to be deemed pt of it.

[In the case of an unlimited Company insert the proviso as in Form 239, and in case of a Company having several departments insert Form 240, or some other appropriate form.]

It is not usual to make policies a charge on the assets, and accordingly, if a company is wound up, the policy-holders rank pari passu with general creditors. However there are two or three companies who give a charge, e.g. one leading company by its policy declares that "the capital stock and funds of the Co. shall stand charged and be liable to pay," and another provides that "the insurance shall take effect only as a charge upon the funds by the constitution of the company appropriated," &c. Now that the validity of a floating charge has been established [supra, p. 258] it would seem desirable to give policyholders a pari passu charge. They seem at least as much entitled to protection as debenture-holders. Re Great Britain Mutual, 19 C. Div. 39, is suggestive on this point: there the company was insolvent and the Court made an order reducing contracts, but held that all overdue policies must be paid in full: if there had been a charge, a winding-up order might have been taken and a scheme effected under the Act of 1870, and in that case the overdue policyholders would have been compelled to abate rateably with the other policies.

Some companies have a large number of different printed forms of policies: e.g. (1) own life with profits; (2) own life without profits; (3) own life for terms of years, and so forth, the object being to save time and trouble in issuing policies. Others only have one general form [e.g. as above] or a very limited number of general forms. Form 228 can be used as a general form to be filled up as occasion requires in accordance with Forms 229 to 238, infra, or a number of Forms can be prepared from Form 228 and the Forms last mentioned, leaving blanks merely for dates, names, and amounts.

IN WITNESS whereof the co hath caused its common seal to be

hereunto affixed this day of

NOTE. The co's principal place of business at which notices of assignmt may be given in psuance of the Policies of Assurance Act, 1867, is at [No. -Street in the City of London.]

By S. 4, of the Act of 1867, (30 & 31 Vict. c. 144) above mentioned, an assurance company is required to specify on every policy issued, their principal place or principal places of business at which notices of assignment may be given in pursuance of the Act.

As in Form 228, filling in the numbered blanks as follows: (1) his or Form 229. her own life; (2) the assured; (3) he or she; (5) the assured; (6) the Ordinary own death of the assured.

life.

As in Form 228, filling in the numbered blanks as follows: (1) his [or Form 230. her] own life; (2) the assured; (3) he [or she]; (5) the assured; (6) the Own life for death of the assured within the term of years from the date hereof. term of years.

Form 231.

Own life premium for term of years.

Form 232.

Life of another.

Form 233. Endowment own life.

Form 234. Endowment

As in Form 228, filling in the numbered blanks as follows: (1) his [or her] own life; (2) the assured; (3) he [or she]; (4) until the [i.e. the last premium day]; (5) the assured; (6) the death of the assured.

day of

As in Form 228, filling in the numbered blanks as follows: (1) the life of [B.]; (2) the sd [B.]; (3) he [or she]; (5) the assured; (6) the death of the sd [B.].

As in Form 228, filling in the numbered blanks as follows: (1) his own life; (2) the assured; (3) he [or she]; (5) the assured, his exs, ads, or assigns; (6) the death of the assured, or of his [or ber] having attained the age of years, whichever event first happens.

As in Form 228, filling in the numbered blanks as follows: (1) the life of [B.]; (2) the sd [B.]; (3) he [or she]; (5) the assured; (6) the death life of another. of the sd [B.], or his [or her] having attained the age of whichever event first happens.

Form 235.

At death of survivor.

Form 236.

Joint lives.

Form 237.

Death of B. provided C. then living.

Form 238.

Wife and children.

years,

As in Form 228, filling in the numbered blanks as follows: (1) the lives of B. and C.; (2.) the assured; (3) he [or she]; (5) the assured; (6) the death of the survivor of the sd B. and C.

As in Form 228, filling in the numbered blanks as follows: (1) their joint lives; (2) the assured; (3) they or either of them; (5) the survivor of the assured; (6) the death of either of them.

As in Form 228, filling in the blanks as follows: (1) the life of [B.]; (2) the assured; (3) he [or she]; (5) the assured; (6) the death of B. in the lifetime of C.

As in Form 228, filling in the blanks as follows: (1) his own life, for the benefit of his wife and children, pursuant to the Married Women's Property Act, 1882; (2) the assured; (3) to the trustee or trustees appointed, pursuant to the sd Act, or in default of notice of any such appointmt to the exs or ads of the assured the principal sum assured; (6) the death of the assured. And insert also the following:

This policy is effected for the benefit of —, the wife of the assured and his children by her, and the policy and the monies payable thereunder, are to be held by the trustee or trustees (which expression in this policy means the trustees or trustee for the time being of this policy, or the monies payable thereunder, including the assured, whilst he remains a trustee) upon the trusts following, that is to say, upon such trusts in favour of the sd wife and children of the assured as the assured shall by deed, with or without power of revocation, or by will or codicil appoint, and subject to or in default of any such appointmt

upon trust to invest such monies in or upon any investmts for the time Form 238. being authorised by law as an investmt for trustees, with full discretionary power of variation, and to pay the income of the sd monies and the investmts thereof for the time being to the sd wife during her life, without power of anticipation, and after her death to hold the trust premes in trust for all or any such one or more of the children of the assured, and in such shares, and subject to such conditions, and in such manner as the sd wife shall from time to time by deed, with or without power of revocation, or by will or codicil appoint, and in default of and subject to any such appointmt as last afsd, in trust for all the children, or any the child of the assured, who being male, attain the age of twenty-one years, or being female, attain that age, or marry : Provided always, that no child who takes any pt of the trust premes under any such appointmt as last afsd, shall be entled to any share in the unappointed pt without bringing the pt so appointed to him or her into hotch-pot: Provided also, that the trustee or trustees may upon the request in writing of the sd wife during her life, and afterwards at his or their discretion raise any pt or pts not exceeding in the whole one-half of the then expectant presumptive or vested share of any child of the assured under the trusts afsd, and apply the same for his or her advancemt or benefit.

The statutory power of maintenance and education is to be applicable. Subject, and without prejudice to the trusts afsd, the trust premes are to be deemed pt of the estate of the assured.

The trustee or trustees shall have absolute discretionary power at any time

(1) To assent to any reduction of the principal sum assured, or other modification of the policy, with a view to the diminution or extinction of subsequent premiums.

(2) To assent to the applicon of any bonus with the like view.

The trustee or trustees shall not be under any obligation to keep the policy on foot, or be responsible for any loss occasioned by its becoming void by any means.

As provided by the sd Act the assured may by any memorandum under his hand appoint a trustee or trustees of the monies payable under the policy, and from time to time appoint a new trustee or new trustees thereof.

Sect. 11 of The Married Women's Property Act, 1882 (45 & 46 Vict., c. 75), provides as follows:

11. "A married woman may by virtue of the power of making contracts herein before contained effect a policy upon her own life or the life of her husband for her separate use; and the same and all benefit thereof shall enure accordingly.

"A policy of assurance effected by any man on his own life, and expressed to be for the benefit of his wife, or of his children, or of his wife and children, or any of them, or by any woman on her own life, and expressed to be for the benefit of her husband, or of her children, or of her husband and children, or any of them, shall create a trust in favour of the objects therein named, and the monies payable under any such policy shall not, so long as any object of

Form 238. the trust remains unperformed, form part of the estate of the insured, or be subject to his or her debts: Provided, that if it shall be proved that the policy was effected and the premiums paid with the intent to defraud the creditors of the insured, they shall be entitled to receive, out of the moneys payable under the policy, a sum equal to the premiums so paid. The insured may by the policy, or by any memorandum under his or her hand, appoint a trustee or trustees of the monies payable under the policy, and from time to time appoint a new trustee or new trustees thereof, and may make provision for the appointment of a new trustee or new trustees thereof, and for the investment of the monies payable under any such policy. In default of any such appointment of a trustee, such policy, immediately on its being effected, shall vest in the insured and his or her legal personal representatives, in trust for the purposes aforesaid. If, at the time of the death of the insured, or at any time afterwards, there shall be no trustee, or it shall be expedient to appoint a new trustee or new trustees, a trustee or trustees or a new trustee or new trustees may be appointed by any court having jurisdiction under the provisions of the Trustee Act, 1850, or the Acts amending and extending the same. The receipt of a trustee or trustees duly appointed, or, in default of any such appointment, or in default of notice to the insurance office, the receipt of the legal personal representative of the insured shall be a discharge to the office for the sum secured by the policy, or for the value thereof, in whole or in part."

Form 239.

Policy of unlimited

company.

The forms used for the purposes of this section vary considerably: those of some companies being well expressed, and those of others the reverse. The above [Form 238] can readily be altered to any form authorised by this section.

It will be observed that the section provides that the policy shall create a trust in favour of the objects therein named, and some companies act on the footing that these words render it necessary to give the proper names of the objects; but there seems no foundation for this notion.

In Re Adams Policy Trusts, 23 C. D. 525, a policy was effected under the Married Women's Property Act, 1870, for the benefit of the assured's “wife A. and the children of their marriage ;" and it was held, not without some difficulty, that the proper construction was that the wife was to take for life, with remainder to the children as joint tenants.

WHAS, proposal, &c., [supra, Form 228.]

AND WHAS, paymt of premium, &c. [supra, Form 228.]

NOW THIS POLICY WITNESSETH and declares that if, &c. [As in Form 228.]

Then, and in such case, the funds and ppty of the co shall, according to the provisions of the co's [deed of settlemt] be subject and liable to pay and satisfy to the exs, &c.

[Another form is "Then, and in such case, the co will, out of its funds and ppty, pay," &c., as in Form 228.]

Provided always that the funds and ppty of the co shall alone be liable to answer and make good all claims and demands under or by virtue of this policy, and that no shareholder in the co shall in any case be liable to contribute to the funds of the co more than the unpaid pt, if any of his or her share or shares in the capital thereof [and that after the transfer of any share has been duly registered in accordance with the provisions of the sd deed of settlemt, the transferee shall be answerable for the unpaid pt of any such share in exoneration of the transferor.]

It is well settled that a policy framed as above effectually limits the Form 239. liability of the shareholders. Hallett v. Dowdall, 18 Q. B. 2; Lethbridge v. Adams, 13 Eq. 547; Host's case, 1 C. Div. 307; Lindley, 378. In McIver's case, ubi supra, Giffard, L.J., was of opinion that the provision that the funds shall be liable to pay effectually limited the liability, and that the proviso did not carry the matter any further, i. e., was superfluous.

It is also settled that a policy so framed creates no lien or charge on the property of the company, and accordingly that policy holders have no priority over general creditors, or inter se. State Fire Insurance Co., 1 De G. J. & S. 634; Re International Society, McIver's claim, 5 Ch. 424.

This policy is issued out of the life departmt of the co, and the funds Form 240. and ppty of the co for the time being appropriated to the satisfon of Clause where claims upon life policies, as specified in clause of the co's articles of several association, shall alone be liable to pay and make good all claims under or by virtue of this policy.

Where a company has several branches, e. g., fire, life, and marine, the regulations generally provide for keeping the funds of each branch separate; and in such case the policies should be framed accordingly.

branches.

CONDITIONS

For Use in connection with the above Policies.

According to present practice the following are fairly liberal conditions; Form 241. but there is a general tendency to increased liberality. That the conditions bind the assured, see Macdonald v. The Law Union, L. R. 9 Q. B. 328; tion and nonMisrepresenta, Anderson v. Fitzgerald, 4 H. L. C. 484.

1. If the proposal and declon, on the basis of which a policy is effected, contains any untrue statemt, or fails to disclose any material fact, the policy shall be void.

The policies of almost all the British companies refer to a proposal, or some other preliminary document, and make it the basis of the contract, and also insert a condition as above. A policy so framed is voidable, if the declaration or proposal contain a single misstatement, whether material or not, and whether made fraudulently or innocently.

But of late years a good many companies have adopted qualifying conditions, as below (2), which relax to some extent the extreme severity of the foregoing condition; and this relaxation is gradually extending.

disclosure,

2. Nevertheless, where a policy has endured for five years, it shall be When policy indisputable and unchallengeable on any ground connected with such indisputable. proposal and declon, any error in age being dealt with in accordance with condition 3.

Such a condition as the above adds considerably to the value of a policy, whether regarded as an investment, security for money, or settlement; and with more or less modification it is adopted by a good many companies. Some, however, add the words, "except in case of fraud;" but the addition goes far to render the protection ostensibly conferred by the clause illusory; for persons dealing with the policy can never be certain that it does not suffer from some latent flaw.

A few companies protect as from the date of the policy the interests of third