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or is an unusual effect of a known cause, and, therefore, not expected." An accident excludes the idea of volition or intention on the part of the person injured. It is something which occurs by chance, unexpectedly and not according to the usual course of things.

Accident policies usually provide that the insurer shall not be liable for injury sustained resulting from the contributory negligence of the insured, and the insured then cannot recover unless he was in the exercise of ordinary care, but unless such a clause exists, the insurer cannot set up contributory negligence as a defense. But where a policy contained a clause that the insurer was not to be liable for injuries happening to the insured by reason of his wilfully and want only exposing himself to any unnecessary danger or peril", it was held that there was no exposure where the insured was killed in trying to board a train slowly moving out of a station, and there was a recovery on the policy.

Where a policy contained a provision exempting the insurer in case of an injury to the insured from an occupation or exposure classified by the company as more hazardous than that stated in the policy and under such a policy a banker was injured while boarding a train, the court held that the words "occupation" and "exposure" referred exclusively to classified occupations and that the mere act of the insured in exposing himself to an increased hazard, not in an occupation or business, did not affect the liability of the company. Such cases are different from those where the insured was temporarily actually engaged in a more hazardous line of business.

Where a policy provided that it "does not cover accident or death wholly or partly, directly or indirectly, from intentional injuries inflicted by the insured or any other person' there could be no recovery where the insured had been deliberately murdered. "If the killing was accidental as to the insured in that he anticipated or expected no injury, but was intentional as to his assassin, then, according to the plain language of the policy, there can be no recovery."

The following clauses restricting or avoiding the liability of the insurer, have been held valid: Riding on the platform of a car; leaving a car while in motion; suicide (See "Suicide" under Life Insurance); walking on railroad track, voluntary exposure to unnecessary danger;intentional injuries received by others; injuries received in a state of voluntary intoxication, etc.

A provision limiting the time in which an action may be brought on a policy is valid, provided it is not unreasonably short; also, a provision to arbitrate, provided the entire matter is not to be left to arbitration, including whether or not there is a legal liability to pay under the policy, so as to oust courts of their proper jurisdiction. Provisions as to giving notice in case of injury and as to mode of making proof of loss must generally be substantially complied with. A provision that "immediate" notice of injury must be given is not satisfied by notice given twenty-eight days after the accident. "Immediate" notice means within such convenient time as may be reasonably possible under the circumstances.

The amount to be recovered under an accident policy depends on the terms of the policy, and is usually a fixed sum in case of death, or a fixed sum for certain injuries, as the loss of a hand, arm or leg, or a weekly indemnity in case of injury. When a policy provides for indemnity in case of a "loss of hand" or "loss of leg", amputation is not necessary to warrant a recovery. If the limb was injured so as to become useless as such, this is sufficient. Our supreme court has held that there may be a recovery if the injury resulted in paralysis, destroying the use of the limb.

The provisions of an accident policy may be waived. See "Waiver" under the head of Life Insurance.

Employers' liability insurance. --By this very recent form of insurance an employer may insure against risks usually incurred by the employment of labor. The insurer steps into the shoes of the employer and is usually subrogated to his rights. The rate is, of course, proportionate to the risk, depending largely on the kind of business, condition of the plant, opportunity for inspection, etc. When an accident occurs, the insured employer notifies the company and it investigates the case, and if it considers the insured liable, it pays the claim. If the claim is not paid, and the injured party brings suit, the insurer defends the action, furnishes counsel and conducts the case. The insured is kept harmless according to the terms of the policy, which terms must be complied with as in other insurance contracts. Such insurance is a contract of indemnity, hence the employer cannot recover of the insurer before paying the party insured. Our statutes provide "No casualty corporation issuing employer's liability policies shall condition the same upon compliance by

the assured with any law or ordinance respecting the safety of persons", but shall clearly and distinctly state what conditions and requirements are to be complied with by him.

Plate glass insurance.-Insurance may also be had against the breakage or destruction of plate glass, and plate glass in the windows fronting the street, especially when on the ground floor in buildings in cities, is now commonly insured against this peril. In case of breakage, the company usually replaces the glass, as it is usually able to obtain it at a lower figure than the insured, but as to this, and the rights generally, the terms of the policy must be looked to and are controlling.

Fidelity insurance.-This class of insurance is constantly growing and has taken many different forms. When a person has undertaken to discharge a certain duty, or accepted a position of trust, the employer or provisions of law often require a bond guaranteeing the faithful performance of the duties undertaken, and especially that all money will be accounted for. Such bonds were formerly signed by friends but corporate suretyship is now superseding personal sureties. Surety companies now furnish bonds for officers and employees of banks and other establishments, postmasters, official bonds in general, administrators, executors, guardians, receivers, trustees, appeal bonds, etc. The premium is based on the amount of the bond and the class of risk. Such surety companies must be duly authorized to do business in this state before their bonds will be accepted in legal proceedings.

Other kinds of insurnace.-There are many other kinds of insurance; among them, boiler insurance, indemnifying against loss by boiler explosions. Such insurance usually covers damage done to the boiler and also to surrounding property. There are also companies guaranteeing the validity of title to real estate. There are companies insuring against loss occasioned by the insolvency of customers of merchants. Risks created by running an elevator may be covered by insurance, and lately policies are issued insuring against loss by theft. Many of these policies have not as yet been interpreted by the courts. It may be generally said, however, that to all these different kinds of policies the general principles underlying the law of insurance will probably be applied.

SECTION IV.

MARINE INSURANCE.

Marine insurance is the insurance of a ship, freight or cargo subject to marine risks, usually for a definite period or for a certain voyage. It differs materially from insurance on property situated on land and is governed by somewhat different rules, arising, for the most part, from the fact that the property is on water and movable. The treatment of the subject is not within the purpose and scope of this work and therefore it will not be further considered.

CHAPTER XXIII.

BANKS AND BANKING.

SECTION I.

STATE BANKS.

Introductory.-A bank is an institution, usually incorporated, with power to issue promissory notes, intended to circulate as money, to receive the money of others on general deposit, creating a fund to be used in its business and to make loans and discounts and deal in exchange, or exercising any one or more of these functions. At common law any person could engage in the banking business, but the matter is now regulated by the national banking act and the state banking laws. Our state constitution was amended in 1902, giving the legislature power to enact a general banking law and to provide generally for the regulation and supervision of the banking business, provided two thirds of all members elected to each house are in favor of such law. Pursuant to this provision, the legislature of 1903 passed a banking act, which will first be briefly considered.

THE STATE BANKING ACT.

General provisions.-By this law, a "State Banking Department" is created, the same to be under the supervision of the commissioner of banking, who is appointed by the governor. It is the duty of the commissioner of banking to examine each state bank and mutual savings bank doing business in this state at least once in each year. Whenever the commissioner of banking shall become satisfied that the capital stock of any bank has been reduced below the amount required by law, or the act of incorporation, or below the amount certified to the commissioner of

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