INSURANCE, MARINE¹, contracts. Marine insurance is a contract whereby one party, for a stipulated² premium³, undertakes to indemnify the other against certain perils⁴ or sea risks, to which his ship, freight, or cargo⁵, or some of them may be exposed, during a certain voyage, or a fixed⁶ period of time. 3 Kent, Com. 203; Boulay-Paty, Dr. Commercial, t. 10.

2. This contract is usually reduced to writing; the instrument is called a policy of insurance. (q. v.)

3. All persons, whether natives, citizens, or aliens, may be insured, with the exception of alien enemies.

4. The insurance may be of goods on a certain ship, or without naming any, as upon goods on board any ship or ships. The subject insured must be an insurable legal interest.

5. The contract requires the most perfect good faith; if the insured make false representations to the insurer, in order to procure⁷ his insurance upon better terms, it will avoid the contract, though the loss arose from a cause unconnected with the misrepresentation, or the concealment⁸ happened through mistake, neglect, or accident, without any fraudulent intention. Vide Kent, Com. Lecture, 48; Marsh⁹. Ins. c. 4; Pardessus, Dr. Com. part 4, t. 5, n. 756, et seq.; Boulay-Paty, Dr. Com. t. 10.

INSURANCE ON LIVES, contracts. The insurance of a life is a contract whereby the insurer, in consideration of a certain premium, either in a gross sum or periodical payments, undertakes to pay the person for whose benefit the insurance is made, a stipulated sum, or an annuity¹⁰ equivalent thereto, upon the death of the person whose life is insured, whenever this shall happen, if the insurance be for the whole life, or in case this shall happen within a certain period if the insurance be for a limited time. 2 Marsh. Ins. 766; Park on Insurance, 429.

2. The insured is required to make a representation or declaration, previous to the policy being issued, of the age and state of health of the person whose life is insured and the party making it is bound to the truth of it. Park, Ins. 650; Marsh. Ins. 771; 4 Taunt¹¹. R. 763.

3. In almost every life policy there are several exceptions, some of them applicable to all cases, others to the case of insurance of one's life. The exceptions are, 1. Death abroad, or at sea. 2. Entering into the naval¹² or military service without the previous consent of the insurers. 3. Death by suicide. 4. Death by duelling. 5. Death by the hand of justice. The last three are not understood to be excepted when the insurance is on another's life. 1 Bell's Com. 631, 5th ed. See 1 Beck's Med. Jur. 518.

INSURED, contracts. The person who procures¹³ an insurance on his property.

2. It is the duty of the insured to pay the premium, and to represent fully¹⁴ and fairly all the circumstances relating to the subject-matter of the insurance, which may influence the determination of the underwriters in undertaking¹⁵ the risk, or estimating the premium. A concealment of such facts amounts to a fraud, which avoids the contract. 1 Marsh. Ins. 464; Park, Ins. h. t.