(1) Patrick v. ses v. Pratt, 4 who was to supply the cargo might have refused to send on board another bag without subjecting himself to an action.' He was accordingly of opinion that an insurable interest in only the 150 bags on board had accrued at the time of the loss.(1) Insurance being made on the freight of the ship Etheta from New York to Sisal, or some other port in the province of Yucatan and back, 'carried or not carried,' the ship, after taking in a part of her cargo at Silam, was driven on shore and lost. The rest of the cargo had been purchased and the export duty paid, and it was ready to be shipped, and would have been so, but for the unfavourable weather, when the ship was lost. The judges say, 'as the freight was valued at the sum insured, " carried or not carried," the assured is entitled to recover as for a total loss, (2) De Lon- notwithstanding a full cargo was not on board.'(2) guemere v. The Phon. Ins. Co. 10 Johns. 127; The same v. The N. York Fire Ins. Co. 10 Johns. 201. (3) Davy v. (5) Mestaer v. The interest of persons owners, in freight. other than the By the preceding case it appears, that if the assured has done something towards earning the freight, and there is nothing to prevent earning it except the perils insured against, his interest in the whole freight has commenced. The judges distinguish this case from Forbes v. Aspinwall before cited, by the circumstance that the part of the cargo, not on board, was procured and ready to be put on board. They say this is precisely the case of Montgomery v. Eggington cited above. Mr. Justice Kent said, in another case, that an inchoate right to freight' constitutes an insurable interest.(3) According to what was said by Mr. Justice Eyre,' if the goods be so situated as to create a well grounded expectation of freight being realized, freight is insurable.'(4) The same question as to the commencement of the insurable interest occurs in respect to persons having an interest in the freight, other than the owners of the vessel;(5) and it is to be inquired besides what persons have such an interest. The charterer who agrees absolutely to pay a certain sum for the use of the ship during a certain time, or for a specified voyage, has an insurable interest in the freight. He alone is interested in the earnings of the vessel for the time agreed upon, since he agrees to pay the stipulated amount, whether the vessel earns freight or The charterer of a ship from the port of London to Russia and back, agreed that in case the discharging of the outward cargo, or the shipping of a return cargo, should not be permitted, he would pay the owner 2500l. on the return of the vessel to London. The court held that this agreement gave the charterer an insurable interest in the freight, to that amount.(6) The risk insured against, was that of the Russian government's not allowing the outward cargo to be discharged. The case does not therefore show that the charterer had an interest, that he might have insured against sea-risks; these still remained with the owner, and there seems to be no reason why he might not still protect his freight against these by a policy on his own (7) Sanson v. account. The owner and charterer had therefore each of them Ball, 4 Dal. an insurable interest in the freight, in respect to the risks to which they were severally liable. But if the charterer agrees absolutely to pay freight, he has an insurable interest in it in respect to all risks.(7) (6) Puller v. Halliday, 12 459; Mac kenzie v. Shedden, 2 not. Johns. 522. a part of a voyage may be insured. If a person sells a ship, reserving the use of it for a certain (1) Riley v. voyage or time, he seems to stand precisely in the place of a Delafield, 7 charterer, and to have a similar insurable interest.(1) The freight of a part of a voyage may be insured. A ship The freight of sailed from St. Ubes for Gottenburg, but was to put into Portsmouth for convoy. The freight was insured from St. Ubes to Portsmouth. Lord Ellenborough said, there is no doubt that a party may insure his ship or goods for a part of a voyage; I cannot conceive why he may not insure freight in the same man(2) Park. 451. ner. There is no case which intimates the contrary, except (3) Taylor v. Murdock v. Potts, (2) which is inconsistent with all the other Wilson, 15 cases.'(3) 6 East, 324. If the owner of the ship advances money for wages or charges, Expenses inhe has an insurable interest in consequence ;(a) and the same curred on acholds true of the charterer.(4) count of the voyage may It has been held that the advance of money by the charterer give an inteof the ship for the expenses of the vessel, constitutes no insurable rest in freight. interest in ship, cargo, or freight, nor, in respect to the risks of the voyage, in the money so advanced, unless the charterer is (4) Sanson v. Ball, 4 Dal. to lose the money advanced in case of the vessel's not earning 459. freight, or in some other event. Bailey, J. said, ' if the charterparty had clearly expressed that the money advanced should be in part payment of freight, then the loss of the ship would produce to the freighter a loss of the money advanced, and he would have an insurable interest.' But if he still might recover the money of the owners, notwithstanding the loss of the vessel, he was held not to have an insurable interest.(5) But if the freight when earned, was to be a fund out of which the freighter was to be repaid, and he had a control over that fund for the purpose, why had he not the same insurable interest in the freight, that a mortgagee has, or that a creditor has in the life of his debtor? Section 12. Interest in Fishing Voyages. In fishing voyages the insurable interest consists of the vessel, outfits, and fare, catchings, or stock. In whaling voyages the outfits are supplied wholly by the owners of the vessel. The men ship upon shares, or lays, each one being entitled to a certain proportion of the proceeds of the voyage. They accordingly have an insurable interest in the cargo as soon as it is on board. This interest is, however, rarely, if ever, insured by the men themselves, but sometimes is so by the assignees of the shares. The insurance is not that a cargo shall be obtained, which would in effect be a guaranty that wages should be realized, but it is upon the cargo obtained, and is therefore similar to an insurance of goods purchased by a mariner, or received by him as wages. (a) Salvador v. Hopkins, 3 Burr. 1707; Bell v. Bell, 2 Camp. 475. Though Siffken v. Allnutt, 1 M. & S. 39, seems to be contrary; but the facts do not appear distinctly. (5) Mansfield v. Maitland, 4 B. & A. 582. See also Wil son v. Roy. (1) 19 Geo. v. Fletcher, 2 (3) Walker v. In cod-fishing voyages, as they are conducted in the United States, the outfits consist of the great and the small general. The great general is supplied wholly by the owners, and includes the salt for curing the fish, the bait, premium of insurance, and some other small articles and expenses. The small general is supplied by each man for himself, and consists mostly of the provisions and fuel. The insurable interest of the owners accordingly consists of their interest in the vessel, the great general, and their proportion of the fare, or stock, which is customarily one quarter, or, including the expense of curing the fish, three eighths.(a) The interest of the men in the proceeds of these voyages is rarely insured. Voyages in mackerel-fishing are conducted in a similar way, and the interests of the several parties are not unlike those in a cod-fishing voyage. Section 13. Interest in Reinsurance. Reinsurance is an illustration of the distinction between an insurable interest, and a property in the subject to which the insurance relates. An underwriter, by subscribing a policy, acquires no interest in the subject insured, yet he acquires an insurable interest, and having rendered himself directly liable to loss from certain perils, may stipulate to be indemnified against those perils. His interest, however, exists only in relation to the perils against which he has insured in the original policy. The English law forbids reinsurance, 'unless the insurer shall be insolvent, become bankrupt, or die ;'(1) and this statute is construed to extend to reinsurance of foreigners;(2) but it is allowed in France, and is frequent in the United States. Upon the same principle, on which an insurer has an interest that may be the subject of reinsurance, it has been held that the owners of a vessel who were answerable for any loss by the fault of boatmen employed in bringing the cargo from the shore to the vessel, might insure the goods against that risk. This liability gave them an insurable interest in the goods, in respect to that risk.(3) Section 14. Interest in Lives. One who is directly liable to a loss by the death of any person, has an insurable interest in the life of such person. A credi (a) The owners usually supply the men with more or less of the small general, and as they depend wholly upon the proceeds of the voyage for payment, it is understood, by some persons conversant in this business, that they have an insurable interest to the amount of the small general supplied by them, though the price is in fact legally and absolutely due from the men. But it admits of some doubt whether they can insure except in behalf of the men. tor has an insurable interest in the life of his debtor, as far as he is liable to any loss by his death. The policy,' says Lord Mansfield, may be considered a collateral security for the debt,'(1) and therefore depends upon the same principle as a policy upon the interest of a mortgagee. Lord Kenyon instructed the jury, in case of a debt due from Lord Newhaven to Anderson and Mitchell, and an agreement between Anderson and Mitchell, on a settlement of accounts, that the debt should remain to the account of Mitchell only,' that Anderson still had an insurable interest in the life of the debtor.(2) But it does not appear what interest Anderson could have. (1) Stackpool . Simond, Park, 648; Marsh. 772. (2) Anderson v. Edie, Marsh. 776; Park, 640. 639. This interest, like any other, must be a legal one; a note given for money won at play, gives no insurable interest in the life of the maker, the debt being illegal, and the note void.(3) (3) Dwyer v. Mr. Justice Buller intimated to the jury, that the holder of the Edie, Marsh. note of an infant had an insurable interest in his life, for he 778; Park, might not avoid the note.(4) In regard to this, as well as other (4) ib. subjects of insurance, an interest contingent in itself, and that might be defeated, or might not have been of any value to the assured, is still a good insurable interest. A young woman who 'was, and had been for several years, supported and educated at the expense of her brother, who stood towards her in loco parentis, was held to have an insurable interest in his life;' and Parker, C. J. in giving the opinion of the court, said, ' a policy effected by a child upon the life of a father, who depended on some fund, terminable by his death, to support the child, would never be questioned.'(5) (5) Lord v. Dall, 12 Mass. Rep. 115. CHAPTER IV. DESCRIPTION OF THE ASSURED. In many policies the assured is so described that any person may be comprehended, and avail himself of the contract, by proving his interest, and showing that the policy was intended for him. Different forms of expression are adopted for this purpose. In England, insurance appears to be made most frequently in the name of the broker, who causes himself to be insured on an interest,' as well in his own name as in the name and names of all persons whatsoever to whom the same may in any way appertain.' The same form is often used in the United States, and also a shorter one of like import, in which the party effecting the policy, is insured for himself and whom it may concern. At Marseilles the policy was formerly expressed to be made for such person as should be thereafter named.' At Hamburgh the losses under a policy were made payable to 'the bearer."(1) Other general forms of expression of similar import, have been used at different places for the same purpose. By these forms the assured might be concealed from the knowledge of the underwriter, and they were equivalent to the practice of subscribing policies in blank, as was formerly done at Marseilles, (2) and also in England.(3) The practice of insuring for whom it might concern was adopted, says Emerigon,(4) for the purpose of concealing the name of the party interested, and keeping his commercial enterprises secret. On this account the insurers in England complained, that 'policies were so loose that an underwriter had no opportunity of knowing the nature of the thing insured, or who the persons were for whom he insured.'(5) Accordingly a statute was made in 1785, prescribing the manner in which the assured should be described in the policy.(6) This statute was intended to secure to the underwriter a knowledge of the person with whom he was contracting. But soon after it went into operation, an underwriter took advantage of it to evade his contract, on the ground that the agent, in whose name the insurance had been effected, was not described as such in the policy. In that case, Lord Mansfield intimated a doubt of the expediency of the law.(7) Another policy was evaded under the same law, because it was made for W. Wilton, and 'the other owners;' they not being named.(8) Another statute was then made to remedy the mischiefs of the first, which required only the name of the person interested, or that of his agent, to be inserted.(9) As the agent needs not to be described as such under this statute, it does not secure to the underwriter a knowledge of the party actually interested.(10) This was in effect repealing the first statute, and no reason appears why it should not be repealed; since the inconvenience, if any existed, seemed to be very much within the power of the underwriters to remedy, without the aid of an act of parliament; if they wished to know what and for whom they insured, they might have refused to sign a policy in which the assured and the subject were not sufficiently described. Such a restriction as the insurers seemed to desire, would be inconvenient in its operation, as abridgments of the liberty of contracting are apt to be, in general. Where an agent holds goods, of which he does not know the actual owner, as was the case with the commissioners of the Dutch prizes,(11) and where one agent consigns goods to another without advising the consignee that he holds them as agent ;(12) the consignee may be able to give the underwriters information of all the facts material to the risk, yet if such a law were in force as that which the insurers desired before the statute 25 Geo. III. c. 44, he could not insure. A policy in the name of a particular person with the clause, 'for whom it may concern,' or other equivalent words, will be enforced to protect the interest of any person in whose behalf it was intended, and by whose authority it was effected.(a) (a) The assured may be answerable over for the amount recovered on a policy made in his own name and for his own benefit; as in |