The Plaintiffs stipulated to pay 7/ 10s. half yearly on 10 June and 10 December, and that they would, as long as the managers agreed to accept the same, make their payments within fifteen days after the time limited, but no insurance is to take place until the premium be actually paid. The continuation of the term therefore depends on two circumstances which may both occur, namely, that the Insured should pay the 77. 10S., and that the Insurers should agree to accept that sum. Barely stating these facts is sufficient to show that the Plaintiffs are not entitled to recover. 1796. Judgment affirmed in Exchequer Chamber. (Walford, Cyclo., ii. 175.) 1805. Salvin and others v. James and Langston. Sun. In this case the Office, before the expiration of the year of insurance, gave notice that it would not continue the risk unless an increased premium was paid. A fire happened during the fifteen days without such additional premium having been paid. The Office was sued under its policy which was issued in pursuance of the provision of its advertisement of 1794, stating that policies taken out for a year protected the Insured for fifteen days beyond the date of expiration (see Days of Grace, p. 376), and it was held by Lord Ellenborough that the effect of the Advertisement and Condition together was to give the parties an option during fifteen days to continue the contract or not; with this advantage on the part of the Insured, that if a fire happened during the fifteen days, though he had not paid his premium, the Office should not after such loss determine the contract, but that this did not deprive the Company of the power of so doing at the end of the term by making their option within a reasonable time before the end of the period for which the insurance was effected, as they had done in this instance. Further, that when the premium was received the effect of it was to give the Insured an insurance for another year, to be computed from the end of the preceding year, and not of the fifteen days. (Walford, Cyclo., ii. 176.) The premium was tendered after the fire, and refused. Held that the Company was not liable. (Ellis, pp. 53-58.) There have been various cases decided in the Law Courts on different points during late years, but it is beyond our purpose to give particulars of all legal proceedings to the present time. CHAPTER V. RATES OF PREMIUM. OR all modes of charging premiums prior to the establishment of FOR the Exchange House Fire Office we must refer to our notices of the respective offices and to Walford's Cyclopædia, iii. 570. Of the charges made by the Exchange House Fire Office we have no knowledge beyond the fact that it was collected quarterly. In 1710 the Company of London Insurers, alias Sun Fire Office, charged First quarter, Is. stamp duty. 2s. 6d. premium, with British Mercury. Afterwards, 2s. 6d. per quarter, 25. per quarter, no Mercury. Every insurance was to terminate at a Quarter day.1 The first charge applied to any part of the quarter when the Insurance was effected, as well as to the whole quarter. This arrangement was soon altered for we find— 21 June, 1710. Every person that takes out a policy in the second month of the quarter shall pay but two shillings the ensuing quarter, and he that takes out one in the third month shall pay but Is. 6d., and that this resolution be published after a month is past in the next quarter. In Dec., 1710, the Office advertised that all those who took out their policies in the second or third month after Michaelmas last, for which full quarteridge was then received, shall have an abatement made in proportion to the time of their entry in this second quateridge, but not to pay less than Is., being for the Stock in Bank, towards the payment of the claims. There was not any classification of risks. Mr. Atkins, in his work on the Average Clause, expressed an opinion. 1 So far as we know, there is no country in the world besides the United Kingdom of Great Britain and Ireland which requires Insurances to be made to expire at one or other of the four Quarter days. that "the subscriptions were confined to the proprietors of ordinary dwellings and shops, while all buildings and trades of a more hazardous description were altogether excluded." Such, however, does not appear to have been the fact, for we find policies On Goods in a Sugar House, On Goods in Still-house of a Distillery, Each at the usual quarterage. The following will serve as specimens of the early advertisements of the Company relative to terms of insurance : The British Mercury published by the Company of the Sun Fire Office in Threadneedle Street behind the Royal Exchange, London, where in due form Policies are delivered out for insuring Houses, moveable Goods, Furniture, and Wares from Loss and Damage by Fire in any part of Great Britain to the value of 500l. each Policy, to any person who shall take them paying the Stamp Duty. In No. 377 of British Mercury, 1712, 24th Sept., the advertisement proceeds : and 2s. 6d. for the first Quarter, which they are to pay afterward within 15 days after every Quarter day; but those persons who shall have policies in the months of September, December, March, and June shall pay only is. for their second Quarteridge, and for those policies delivered at any other time of the year the persons insured are to pay, besides the above Is., so many twopences as there shall be weeks from the date of the said policies to the next Quarter day. The rest of the Conditions of the Insurance are contained in the Company's proposals printed 4 July last, which are to be had gratis at their Office. And the Company declare that the Affirmation of any Quaker shall be allowed Instead of the Oath mentioned in the 11 Article of said proposals. As has appeared under "Proposals," the Office intended in the outset to charge 6d. per cent. extra per quarter for Insurances in the Country. In 1720 they advertised, in July, their premiums for insuring houses, goods, and merchandize from loss by fire in any part of the kingdom as being "at the easy Rate of 2s. 6d. per Quarter, with a Book entitled the Historical Register, and 2s. a Quarter without it," not exceeding 500/ for each policy, the subscribers being liable for no further contributions. In July, 1721, they agreed to insure 1,000/. on House and Goods for 5s. per quarter. Occupiers of small houses 300/. House and Goods for 2s. per quarter. The Royal Exchange Corporation and the London Assurance in their first proposals of 1721 adopted some classification of risks with increased rates. 1723. The Sun charged for 1,000l. 20s. per annum. and in 1725 for hazardous trades and thatched risks 3s. per cent. per annum. 26 In Jan., 1725 it was resolved not to accept any new insurances or arrears on houses on London Bridge without the authority of the Committee (see 1744-15). After the fire at Gravesend in August, 1727, it was stated that All severe losses were on thatched or timber and plaister buildings adjoining, and it was determined not to accept new insurances on such property. Circular to agents: The Great Fire at Gravesend, and many other Fires lately happening among Timber Buildings adjoining to each other, where this Office have and will suffer very much, and the Committee, considering the extreme hazard in the like Insurances, have come to the following Resolutions, which you are desired punctually to observe, and make a report to the Office of the situation and circumstances of the Buildings insured within your Collection, that the Office may find out means, if possible, to act for the best Security of themselves, and to give all reasonable satisfaction to the Insured. Probably the Resolutions referred to were similar to the Instructions given to the Gravesend agent, viz.— No new Insurance to be taken on Timber or thatched Buildings. No arrears on Policies on such Risks to be received. No Renewals to be accepted on such Risks except by Special Orders. The Office intends to avoid hazardous Insurances, and none more so than Timber and thatch adjoining. In 1727 the Office raised its rates and adopted a classification more in accordance with that of the Royal Exchange Assurance, charging graduated rates according to the amount insured. The practice of charging higher rates for larger risks, which had been justified by Rev. D. Wilkie, of Edinburgh, in his work on Interest and Annuities (1794), was generally abandoned in 1804, mainly it is supposed in consequence of the establishment of the Globe and Imperial with large capitals. In 1727 the Office altered their proposals and policies by inserting in Article X. of the former, and, in the Covenant of Liability in the latter, the words : "So long as the (Managers) Trustees or Acting Members of the Society for the time being shall agree to accept the same" (i.e., the premium). This alteration led to some correspondence with dissatisfied Insured, whose premiums were apparently to be increased, and the power of the Office to raise its rates on existing policies was disputed by them. The office declared that it insured 20 per cent. cheaper than any other Office. In the same proposals it was stated in Article X. :— "All persons insuring shall, upon their taking out a policy, pay the premium to the next Quarter day, and from thence for one year more. 1744, Oct. The City were rebuilding the houses on London Bridge, and offered them for insurance. If the Committee of Management approved, they were to agree with the City on terms and conditions. proper for the benefit and advantage of the Office. 46) 1715, 9th Jan. Persons occupying old buildings on London Bridge applied to insure their goods and stock. After survey it was decided to accept risks on this side the Drawbridge leading to St. Magnus' Church at 10s. per cent., which the parties were willing to pay, such being fair risks by reason of their situation and nearness to the Water Works. In 1762 Waterside risks were accepted and rates raised. 1775. The district on both sides of the river below London Bridge was declared hazardous. Rates were not adequate: almost all the property was insured in the Sun as other offices declined the insurance thereof. Rates again raised. 1782. A new classification of hazardous risks and trades made at the time of the establishment of the New or Phanix Fire Office. 1794. Special rates fixed for merchandise west of Irongate, and not within the Waterside district. 1803. Some trades raised from common to hazardous premium in consequence of frequent losses thereon. From this time much more minute attention was paid to the rating of risks, and especially of mills and manufactories. 1805. This year the London Docks were opened for business, and the following rates were fixed : |