a

have endeavoured to treat it not as an isolated system but as one among many systems, and have illustrated its principles and practice where possible by comparison with Marine Insurance. I have also endeavoured to use the lessons of history and to show how an insurance system is a living organism with its roots in the past. By this use of the comparative and historical methods I have tried to throw light on some of the difficult problems of Fire Insurance, and have also tried to produce a book which will be of interest to many readers who have no connection with insurance business. This is not a difficult or technical work. It is written in plain English, and the writer believes that his twelve years' experience as a journalist has at least preserved him from being needlessly dull.

Both in the preparation of this work, and for many years past in the course of my daily occupations, I have received the fullest information and assistance from many leading insurance officials. Their assistance has been of the greatest possible service in fact what there is of merit in this book is due almost wholly to them and I trust that they will endure patiently my private opinions and criticisms. Such criticisms as I have offered have been put forward in a sincere and friendly spirit. I have approached my subject as an observer and interpreter, and as one who has had many opportunities of inside information, and have in the treatment of it followed the lead of my individual judgment. No one is in any way responsible for the views expressed in this work except the writer of it.

The literature of Fire Insurance is somewhat scanty, and there does not exist in this country a treatise which can compare with the excellent American book on Fire Insurance and How to Build, by Mr. F. C. Moore. This volume has been of much service to me, and I have also consulted with profit the historical work on Fire Insurance Companies, by Mr. F. B. Relton. A large amount of valuable and practical information is contained in the papers read before the Insurance Institutes of Great Britain and Ireland, and published by the Federated Institutes. Some other books, such as Mr. Lynch's Redress by Arbitration, are also of much interest to the insurance student. As this book is written primarily as an elementary treatise for the use of students of insurance and of officials in fire offices, it may be useful if I append a list of those books and papers which have been of most assistance to the

writer, and which will give much information
on the various points dealt with.
Fire Insurance and How to Build, by Mr. F. C.

Moore (New York).
Fire Insurance Companies, by Mr. F. B. Relton.
Redress by Arbitration, by Mr. Lynch.
Marine Insurance, by Mr. Frederick Templeman.
Cost Price of Fire Insurance, by Mr. James Ostler.
Fire Hazard of more Important Chemical Products,

by Dr. E. H. Cook.
Fire Insurance, by Mr. John M. M'Candlish.
Observations on the Progress and Prospects of Fire

Insurance as a Science, by Mr. David L. Laidlaw.
The Aspect of Electricity from an Insurance Point of

View, by Mr. B. Chatterton.
History and Practice of Marine Insurance, by Mr.

Douglas Owen.
Notes on the Usual Provision for Unexpired Risks,

by Mr. David Deuchar.
The Necessity for a Tariff Organisation in connection

with Fire Insurance Business, by Mr. David

Deuchar.
The Average Conditions of a Fire Insurance Policy,

CONTENTS.

CHAPTER I.

THE FIRB INSURANCE CONTRACT.

A Personal Contract of Indemnity-Lloyd's Fire Policies,

The Necessity for Good Faith and Interest—The Beginnings

of Fire Insurance—The Fire Policy becomes

one of

Indemnity-The Fire Policy & Personal Contract—The

Liability of Fire Insurance Companies

Pp. 1-22

.

CHAPTER II.

THE DISTRIBUTION OF Loss.

Municipal Fire Insurance-Joint Stock Companies and

Mutual Associations—The Equitable Distribution of Fire

Losses Essentials of a True Distribution-Fire Insurance

Profits—The Scope for Equitable Distribution-The

American Mercantile Schedule-The Individual Trader-

Limitation of Risks

Pp. 23-57

OHAPTER III.

FIRE INSURANCE POLICIES.

Liberal rather than Legal Interpretation-Simplicity in

Policies—The Face of a Fire Policy-Lloyd's Fire Policy

Form Preliminaries in Fire Insurance Misdescrip-

tion

. Pp. 58-82

.

.

.

.

Reinstatement—The Custody of Damaged Property-

Contribution towards Losses—Co-operation between the

Insured and the Insurance Company - Warranties

“ Unconditional" Furniture Policy

Pp. 83-114

CHAPTER V.

DISPUTES AND ARBITRATION.

Determination of Loss Assessment–The Rarity of Serious

Disputes-Arbitration, Formal and Informal—The Omission

of an Arbitration Clause-Fire Insurance Companies and

Arbitration (History)—The Future of the Arbitration Clause

-The Arbitration Act, 1889—Appeals--Arbitration specially

applicable to Insurance Disputes .

Pp. 115-140

CHAPTER VI.

AVERAGE.

Pro rata sharing of Loss—The Equitable Nature of Average-

Co-insurance-Early Average Conditions The Contribution

Clause (Average)—General Principles of Average Conditions

-Examples of Average-Difficulties in Practice—Principles

to be maintained by Average Conditions—France-Germany

-Austria-Hungary-Average Examples showing Range of

Policies.

Pp. 141-161

.

CHAPTER VII.

RATING OF RISKS AND TARIFFS.

The Two Objects of Rating–Classification of Risks—How

Rates are Determined - Home and Foreign Rates British

Tariffs-Fire Hazards in various Towns-Fire-resisting

Construction-Penal Rates for Dangerous Buildings and

Appliances—Reductions in Rates—Observation into Causes

of Fires—The Contents of Buildings-Example of Rating

by American Universal Schedule

Pp. 162-189