19 Geo. 2. c. 32. f. 2.

16 Cha. 2.

c. 6. f. 12.

given up every thing to his other creditors. This being likely to prove a difcouragement to trade, parliament was obliged to interpofe; and it accordingly enacted, "That the obligee in any "bottomry or respondentia bond, made, and en"tered into upon a good and valuable confi"deration, bona fide, fhould be admitted to

claim, and after the contingency should bare "happened, to prove his, or her debt or demands "in respect of fuch bond, in like manner as if the "contingency bad happened before the time of the ifuing of the commiffion of bankruptcy against fuch

obligor, and fhould be entitled unto, and "fhould have and receive a proportionable part, "fhare, and dividend of fuch bankrupt's eftate, "in proportion to the other creditors of fuch bankrupt, in like manner as if fuch contingency had happened before fuch commiffion "iffued: and that all and every perfon or perfons, against whom any commiffion of bankruptcy fhould be awarded, fhould be dif"charged of and from the debt or debts owing "by him, her, or them, on every fuch bond as ૯ "aforefaid, and fhould have the benefit of the feveral ftatutes now in force against bankrupts, "in like manner, to all intents and purpofes, as "if fuch contingency had happened, and the "money due in refpect thereof had become payable, before the time of the iffuing of fuch "commiffion."

By the ftatute-book it appears, that the mafters and mariners of fhips, having taken upon bottomry greater fums of money than the value of their adventure, had been accustomed wilfully to caft away, burn, or otherwise destroy the fhips under their charge, to the great lofs of the merchants and owners: it was therefore enacted, "That if any captain, master, mariner, or other "officer belonging to any fhip, fhould wilfully "caft away, burn, or otherwife deftroy the fhip

unto which he belonged, or procure the fame

<< to be done, he should fuffer death as a felon.".
The duration of this act having been limited to
three years, it became extinct: but the neceffity

of fuch a provifion was fo great, that a fimilar 22 & 23 Cha. law was made a few years afterwards, and is ftill 2. c. 11.f. 12. in force.

As the commerce of the country increased to an amazing degree, fo the custom of lending money, on bottomry became alfo very prevalent and as the lenders had fubjected themfelves to great risks, they began to think it neceffary to protect their property, by infuring to the amount of the money lent. In a former chapter, much was faid Vide ante. of the mode by which infurances on fuch pro- c. 1. perty were to be effected; and we then faw 3 Burr, 1394 from the cafe of Glover v. Black, that it was neceffary to infert in the policy that the intereft infured was bottomry or refpondentia, and that fuch was the law and practice of merchants. From this cafe too it is evident, that when a perfon has infured a bottomry or refpondentia intereft, and he recovers upon the bond, he cannot alfo recover upon the policy: because he has not fuftained a lofs within the meaning of his contract; and to fuffer any man to receive a double fatisfaction, would be contrary to the first principles of infurance law. As it is merely a contract of indemnity, a man shall never receive lefs; nor can he be entitled to recover more than the amount of the damage he has, in fact, fuftained.

CHAPTER THE TWENTY-SECOND,

A

Of Infurances upon Lives.

N Infurance upon Life is a contract, by, Postlethw. which the underwriter for a certain fum, Dict. of Tr. proportioned to the age, health, profeffion, and p. 150. Ii 4 other

Vide the Appendix,

No. 3.

other circumstances of the perfon, whose life is the object of infurance, engages that that perfon fhall not die within the time limited in the policy or if he do, that he will pay a fum of money to him in whofe favour the policy was granted. Thus if A. lend 100l. to B. who can give nothing but his perfonal fecurity for repayment: in order to fecure him, in cafe of his Com. 459 death, B. applies to C. an infurer, to infure his life in favour of A. by which means, if B. die within the time limited in the policy, A. will have a demand upon C. for the amount of his infurance.

2 Blackft.

Postlethw.

$50.

The advantages refulting from fuch infurances are many and obvious: and most of them may be reduced under the following claffes. To perfons poffeffed of places or employments for life; to masters of families, and others, whofe income is fubject to be determined, or leffened, at their respective deaths; who, by infuring their lives, may fecure a fum of money for the use of their families. To married perfons, where a jointure, penfion, or annuity, depends on both or either of their lives, by infuring the life of the perfons entitled to fuch annuity, penfion, or jointure. To dependents upon any other perfon, during whofe life they are entitled to a falary or benefaction, and whofe life being infured, will enable fuch dependents, at the death of their benefactor, to claim from the infurers a fum equal to the premium paid. To perfons wanting to borrow money, who, by infuring their lives, are enabled to give a fecurity for the money borrowed. Thefe, and many other advantages, being fo obvious, the Bishop of Oxford, Sir Thomas Allen, and fome other gentlemen, were induced to apply to Queen Anne, to obtain her charter for incorporating them and their fucceffors, whereby they might provide for their families, in an eafy and beneficial manner. Accordingly, in the year 1706, her Majesty granted

her

her royal charter, incorporating them by the name of "The Amicable Society for a perpe"tual Affurance Office," giving them a power to purchase lands, an ability to fue and be fued in their corporate capacity, and a common feal for the more eafy and expeditious management of the affairs of the Company.

The benefits, which accrued to the public from this fpecies of contract, were found to be fo extensive, that another office was established by déed enrolled in the Court of King's Bench at Westminster, for the infurance of lives only. The name of this office is the "fociety for equitable af"furances on lives and furvivorships.

Befides

this, the two Companies of the Royal Exchange, and London Affurance, obtained his Majefty's charter, to enable them also to make infurances on lives. The charter points out the advantages of fuch inftitutions; for it ftates as the ground, on which fuch a permiffion is to be granted, "That it has been found by experience to

be of benefit and advantage, for perfons having "offices, employments, eftates, or other incomes, "determinable on the life or lives of themselves

or others, to make affurances on the life or "lives, upon which fuch offices, employments, "eftates, or incomes are determinable." Private underwriters also may enter into policies of this nature, as well as any other, provided the party, making the infurance, chufes to trufl their fingle fecurity.

The antiquity of this practice cannot be very eafily afcertained; however we find traces of it in fome very old authors. In the French book entitled Le Guidon, we find it mentioned, as a con- Le Guidon, tract perfectly well known, at that time, in other c. 16. art. 5. published in countries. The author of that book, however, 1661. tells us in the fame paffage, that it was a fpecies of contract wholly forbidden in France, as being repugnant to good morals, and as opening a door

to a variety of frauds and abufes. Such, indeed, 2 Valin, 54.

2 Magens, 70. Le Guid. loc. cit.

Roccus de
Affec.
Not. 74-

the law of France continues at this day and infurances upon lives are prohibited in other countries of Europe by positive regulation. The fame French author has, however, gone a little too far in afferting, that the other countries, in which they had been till that time encouraged, were also obliged to forbid them. This had not certainly taken place at that time, as may be inferred from the 66th article of the laws of Wibuy: and in England they never have been prohibited. The learned Roccus alfo takes notice of them as legal contracts, and quotes various authors in fupport of his opinion.

Thefe infurances being thus fanctioned in England by royal authority, and the funds of the different focieties having very much encreased, and Mag. 33. being fixed on a ftable and permanent foundation, contracts of this nature became fo much a mode of gambling (for people took the liberty of infuring any one's life, without hefitation, whether connected with him, or not, and the insurers feldom asked any question about the reafons, for which fuch infurances were made,) that it at laft became a fubject of parliamentary difcuffion. The refult of that difcuffion was, that a ftatute paffed, by which it was enacted, "That no infurance fhould be made by any perfon or perfons, bodies politick or corporate, on the life or lives of any perfon or perfons, or on any other event or events whatsoever, wherein the perfon or perfons, for whofe "ufe, benefit, or on whofe account, fuch policies fhould be made, fhould have no intereft, or by way of gaming or wagering; and every insurance "made, contrary to the true intent and meaning

14 Geo. 3. c. 48. . .

Sect. z.

"

thereof, fhould be null and void to all intents "and purposes." And in order more effectually to guard against any impofition or fraud, and to be the better able to afcertain, what the interest of the perfon, entitled to the benefit of the infurance, really was, it was further enacted, by the

fame