der to deceive the honeft and unfufpicious trader out of his premiums, and who were in infolvent circumftances, that it became an object of national concern, and parliamentary interference. The mifchiefs then exifting in this branch of trade, and the dangerous confequences thence arifing to the intereft of the country, are to be collected from the preamble of the flatute, which 6 George 1. paffed in the reign of George the First, to remedy thefe evils, and which has in fome, though not in any great degree, reftrained the rule of the common law as to the unlimited right any man or body of men had to become infurers. "Whereas it has "been found by experience, that many particular

C. 18.

perfons, after they have received large premiums "or confideration monies for or towards the in"furing fhips, goods, and merchandizes at fea, "Fave become bankrupts, or otherwife failed in "anfwering or complying with their policies of "affurance, whereby they were particularly en"gaged to make good, or contribute towards the

loffes which merchants or traders have fuftained, "to the ruin and impoverishment of many mer"chants and traders, and to the difcouragement "of adventurers at fea, and to the great diminu❝tion of the trade, wealth, ftrength, and publick "revenues of the kingdom: And whereas it is "conceived, that if two feveral and diftinct cor"porations, with a competent joint stock to each "of them belonging, and under proper condi"tions, reftrictions, and regulations, were erected " and established for affurance of fhips, goods, or " merchandizes at fea, or going to fea, (exclufive "cf all or any other corporations or bodies poli"tick already created, or hereafter to be created, "and likewife exclufive of fuch focieties or part"nerfhips as now are, or may hereafter be enter"ed into for that purpofe) feveral merchants or

traders, who adventure their eftates, or part of "their eftates, in fuch fhips, goods, and mer"chandizes, at fea, or going to fea, (efpecially in

"C remote

"remote or hazardous voyages) would think it "much fafer for them to depend upon the poli"cies or affurances of either of thofe two corpo"rations, fo to be erected and established, than "on the policies or affurances of private or par"ticular perfons." The ftatute then goes on to authorize his majefty to grant charters to two diftinct companies or corporations, for the infurance of fhips, goods, and merchandizes, at fea, or going to fea, and for lending money on bottomree. The ftatute alfo enacts that the corporations may purchafe lands, to the amount of one thoufand pounds per annum, may have a common feal, and may be capable to fue and be fued at law; that each corporation fhall provide a fufficient ftock of ready money to fatisfy and discharge all juft demands, arifing upon their policies of infurance; and in cafe of refufal, the parties infured may bring their action against the corporation, and fhall recover double damages and cofts. This claufe, however, 8 Geo. 1. c. giving double damages, was afterwards thought 15. f. 25. by the legiflature to be hard and oppreffive; and 11 Geo. 1. therefore by a claufe in a fubfequent ftatute, thefe 30. f. 43. corporations were allowed to plead the general iffue to any action brought against them, and the Vide pof. jury, in eftimating the damages, as well with re- c. 20. fpect to them as any other perfons, were left to their own difcretion.

c.

After feveral other claufes for the internal regulation of these corporations, the ftatute of the fixth of Geo. the First goes on to prohibit any other fociety or partnership whatsoever from making infurances, or lending money on bottomree. "And Sec. 12.

"be it enacted, that from and after the granting or making the faid charters or indentures for " erecting the two corporations before mentioned, "and paffing the fame under the great feal, for "and during the continuance of the faid corpo"rations refpectively, or either of them, all other corporations or bodies politick, before this time " erected or established, or hereafter to be erected

or established, whether fuch corporations or "bodies politick, or any of them, be fole or aggregate, and all fuch focieties and partner"fhips as now are, or hereafter fhall or may be, "entered into by any perfon or perfons, for af"furing fhips or merchandizes at fea, or for lend

ing money on bottomree, fhall, by force and "virtue of this act, be reftrained from granting, figning, or underwriting any policy of affu

rance, or making any contracts for affurance "of or upon any fhip or fhips, goods, or mer"chandizes, at fea, or going to fea, and for lend"ing any monies by way of bottomree as afore"faid: and if any corporation or body politick, "or perfons acting in fuch fociety or partnership "(other than the two corporations intended to be "eftablished by this act, or one of them) fhall

prefume to grant, fign, or underwrite, after "the twenty-fourth day of June 1720. any fuch policy or policies, or make any fuch contract "or contracts for affurance of or upon any fhip "or fhips, goods or merchandizes, at fea or go

ing to fea, or take or agree to take any pre"mium or other reward for fuch policy or poli"cies, every fuch policy and policies of affurance "of or upon any fuch fhip or fhips, goods or " merchandizes, fhall be ipfo facto void, and all "and every fuch fum or fums fo figned and un"derwritten in fuch policy or policies fhall be "forfeited, and fhall and may be recovered, one "half to the use of his majefty, the other to that "of the informer, by action: and if any corpo"ration or bodies politick, or perfons acting in "fuch fociety or partnership, other than the two "corporations intended to be erected by this act, "or one of them, fhall prefume to lend, or agree "to lend, or advance, by themfelves or any others

on their behalf, after the faid twenty-fourth "day of June 1720. any money by way of bot"tomree contrary to this act, the bond or other "fecurity for the fame fhall be ipfo fatto void,

<< and

"and fuch agreement fhall be adjudged to be an "ufurious contract, and the offenders therein thall "fuffer as in cafes of ufury: nevertheless it is in"tended and hereby declared, that any private

or particular perfon or perfons fhall be at liberty "to write or underwrite any policies, or engage "himself or herself in any affurances of, for, or upon any fhip or fhips, goods or merchandizes "at fea, or going to fea, or may lend money by way of bottomree, as fully and beneficially, as "if this act had never been made, fo as the fame "be not on the account or rifque of a corpora"tion or body politick, or upon the account or "rifque of perfons acting in a fociety or partnerfhip for that purpofe as aforefaid.'

But there are claufes, in a fubfequent part of Sec. 24. 26. the ftatute, fecuring to the South Sea and East 28. India Companies, all the rights and privileges which they had enjoyed previous to the paffing of that act, and the right of lending money on bottomree to the captains of their own fhips.

This is the only pofitive regulation to be found in the law of this country, with refpect to what perfons fhall, or fhall not be infurers. By virtue of that regulation, the two offices under the names of the Royal Exchange Afsurance Office, and the London Affurance Office were created and established, by charter of George the First, under the great feal of Great Britain, bearing date the twentyfecond day of June, in the fixth year of his reign; and they ftill continue offices for the infurance of property. The legislature having thus anxiously provided for the fecurity of thofe merchants, who might be defirous of carrying on an extenfive trade, but who were deterred from doing fo, thro' fear of the infolvency of private underwriters, having ftipulated with the company that they fhould have fufficient funds for the payment of all demands that might be made, and at the fame time, allowing to private underwriters the 'full liberty of infuring to any amount with those who

were

I Magens 4.

Glover v.
Black,
3 Burrow
1394. and

1 Blackstone

Rep. 405.

were fatisfied to trust to their private fecurities only; it is not to be wondered at, that the bufinefs of infurance increafed to a degree almost inconceivable. Indeed, any perfon, fince this ftatute, may infure as at the common law, with this fingle exception, that any policy fubfcribed by a private firm or partnership, is abfolutely void.

2dly. What things may be infured. I beg leave here to premife, that I do not mean at prefent to go into the great queftion of infurance, upon intereft or no intereft, having referved that for the subject of a distinct chapter. My defign in this place is only to fhew, what kinds of property are the fubject of infurance, upon fuppofition that every perfon, making infurance, is interested in the goods as the law requires.

The most frequent objects of infurance are ships, goods, merchandizes, the freight or hire of ships: alfo houses, warehouses, and the goods laid up in them from danger by fire, and infurance on lives. Of the two last of which, more will be faid hereafter. But although infurances upon fuch property, as we have just enumerated, most frequently occur in practice, yet in the law books we meet with cafes which can hardly fall within any of thofe defcriptions.

Thus bottomree and refpondentia are a particular fpecies of property which may be the fubject of infurance. But then it must be particularly expreffed in the policy to be refpondentia intereft; for under a general infurance on goods, the party infured cannot recover money lent on bottomree. Such has been, and is at this day, the established ufuage of merchants.

This was folemnly decided in an action upon a policy of insurance "upon goods and merchan"dizes, loaden, or to be loaden on board the "Denham, William Tryon, commander, at and "from Bengal, to any ports or places whatsoever "in the East Indies, until her fafe arrival in Lon"don." The evidence appeared to be, that be

fore