the intentions of the parties at the time it was signed. But as a matter of honour, it is expected that if an underwriter agrees to the submission of his quotation in this form, he will-for such a time as will permit the broker to receive from his principal a message indicating acceptance or refusal-hold himself ready to go on with the insurance on the terms he named.

Practice in Quotation.-Generally in practice an underwriter may be expected to confirm within reasonable time quotations made to principals or agents (brokers), unless meanwhile exceptional circumstances have arisen, unexpected news has come in, or the underwriter has already undertaken a risk on the venture from another offerer. But that is a matter entirely of honourable and not of legal obligation.

The following instance of the course adopted by a Marine Insurance Company in connection with a quotation may be of interest and value :—

On 21st August 1888, Messrs. H. of B., Lancashire, wrote to the X. Marine Insurance Company, Liverpool, asking their rate on cotton valued £650 per ship T. D. from P. to Liverpool, due to leave P. about the end of June.

In reply the X. Company wrote on 22nd August on a memorandum form, bearing the full name of the company and the clause "Quotations available for three days only," the following:-"In reply to your enquiry of yesterday we beg to quote as follows: T. D., P. to Liverpool, 65 bales cotton, value £650, 40s. per cent."

On 24th August the X. Company received a letter from Messrs. H. dated from 23rd August, accepting their quotation.

On 23rd August a report appeared in the papers that the T. D. had been lost some time before; and when on 24th August the X. Company received Messrs. H.'s acceptance of the quotation, they replied that the ship was lost and quite uninsurable.

Messrs. H. answered that they must hold them to their quotation.

The X. Company submitted the matter to eminent

counsel, who advised that the company, having received no consideration to keep the offer open for three days, was at liberty to withdraw the offer any time before acceptance: that not having so withdrawn, the company could not refuse to ratify acceptance if made within three days, even if it reached the company after news of the loss: that in the absence of the three days' clause or other similar clause, the proposed assured would have a reasonable time within which to exercise his option of acceptance or refusal of the quotation, but that such reasonable time would probably not extend beyond the last post of the day on which the offer was received.

On receipt of this opinion the X. Company issued its policy for £650 per T. D. from P. to Liverpool at 40s. per cent and paid the loss.

Warned by this instance of the dangers that may be contained in a clause apparently rendering a quotation unavailable after a named time, but actually making it available for all that time, unless specially retracted, another Liverpool company has adopted the form of quotation note printed in Appendix D, containing the clause "Subject to acceptance by and no risk until confirmed by us." Under this clause even the payment of a consideration for keeping the quotation open for acceptance till a named time would not legally oblige the underwriter in case of acceptance to issue his policy on the terms named, as there is the special reserve in the clause providing that no risk attaches until the quotation after acceptance by the assured is confirmed by the underwriter.

Without any clause naming a period for which a quotation is available, there appears to be no reason to doubt that provided no withdrawal of the underwriter's quotation comes in meanwhile-an acceptance posted by the last mail of the day on which the offer is received, is acceptance within a reasonable time.

Policy.—The broker's slip, the underwriter's cover note, or his signed quotation accepted by the intending assured, can be regarded only as a temporary memorandum of the intention of the parties to an insurance: neither of them is

C

That

the definitive expression of the contract to insure. expression is usually found in the shape of what is termed a policy. The name is common to all commercial countries, all having adopted it from the Italian polizza d'assicurazione (literally, promise of insurance). As the insurer signifies his acceptance of the liabilities detailed in the policy affecting the objects mentioned therein as insured, by subscribing his name to the policy, he is called in English the underwriter.

Classes of Policies.-Policies are divided into various classes in accordance with the different kinds of insurances effected by means of them. The most important of these are voyage policies and time policies, in which property is insured for transit from one point to another, or for a certain period of time.

Interest policies are those in which it is clear from their form and wording that they are intended to cover some real interest in ship, goods, freight, or other matter capable of insurance; while wager policies show from their form and wording that they do not require from the assured any proof of reality of interest in what is stated as the subject of insurance.

In valued policies, the amount at which the insured object is valued is definitely stated; while in open policies there is no such statement, and in case of the value being needed for completing the transaction of insurance, it has to be fixed presumably in accordance with the law or usage of the country in which the insurance is effected, unless there be some stipulation to the contrary in the policy.

Finally, in named policies the vessel on which the risk is taken is definitely stated; in floating policies there is usually no such limitation, the wording being made wide enough to cover the insured interest by whatever steamer or steamers, ship or ships it may come. The old designation of this kind of insurance was in quovis. But it is not rare nowadays to have floating policies limited to certain named fleets or classes of vessels, or to vessels to be approved by the underwriter before being "declared on the policy" as it is termed.

The ordinary form of English policy will be discussed at length hereafter (pp. 27-129).

Stamp. The Revenue authorities of most European countries have laid marine insurances under special taxes. In England the regulations for this purpose have been until lately of exceptionally complicated character, but matters have been considerably simplified by the latest Act of Parliament dealing with the subject, the Stamp Act, 1891 [54 & 55 Vict. c. 39]. The importance of these regulations lies in the fact that unless they are complied with, no document, however clear the intention of the parties to it, can be considered valid or of use for the purposes of evidence in any court of the United Kingdom except as regards the date of acceptance of a risk. The provisions of the Act and of the schedule are so short that it is worth while giving them in full, as under ::

[54 & 55 Vict.]

STAMP ACT 1891

[Ch. 39.]

Policies of Insurance

91. For the purposes of this Act the expression "policy of insurance" includes every writing whereby any contract of insurance is made or agreed to be made, or is evidenced, and the expression "insurance" includes assurance.

Policies of Sea Insurance

92. (1) For the purposes of this Act the expression "policy of sea insurance" means any insurance (including reinsurance) made upon any ship or vessel, or upon the machinery, tackle, or furniture of any ship or vessel, or upon any goods, merchandise, or property of any description whatever on board of any ship or vessel, or upon the freight of, or any other interest which may be lawfully insured in or relating to, any ship or vessel, and includes any insurance of goods, merchandise, or property for any transit which includes not only a sea risk, but also any other risk incidental to the transit insured from the com

mencement of the transit to the ultimate destination covered by the insurance. (2) Where any person, in consideration of any sum of money paid or to be paid for additional freight or otherwise, agrees to take upon himself any risk attending goods, merchandise, or property of any description whatever while on board of any ship or vessel, or engages to indemnify the owner of any such goods, merchandise, or property from any risk, loss, or damage, such agreement or engagement shall be deemed to be a contract for sea insurance.

93. (1) A contract for sea insurance (other than such insurance as is referred to in the fifty-fifth section of the Merchant Shipping Act Amendment Act, 1862) shall not be valid unless the same is expressed in a policy of sea insurance. (2) No policy of sea insurance made for time shall be made for any time exceeding twelve months. (3) A policy of sea insurance shall not be valid unless it specifies the particular risk or adventure, the names of the subscribers or underwriters, and the sum or sums insured, and is made for a period not exceeding twelve months.

94. Where any sea insurance is made for a voyage and also for time, or to extend to or cover any time beyond thirty days after the ship shall have arrived at her destination and been there moored at anchor, the policy is to be charged with duty as a policy for a voyage, and also with duty as a policy for time.

95. (1) A policy of sea insurance may not be stamped at any time after it is signed or underwritten by any person, except in the two cases following; that is to say, (a) Any policy of mutual insurance having a stamp impressed thereon may, if required, be stamped with an additional stamp, provided that at the time the additional stamp is required the policy has not been signed or underwritten to an amount exceeding the sum or sums which the duty impressed thereon extends to cover:

(b) Any policy made or executed out of, but being in any manner enforceable within, the United Kingdom, may be stamped at any time within ten days after it has been