is binding on the insured. In the absence of such a requirement notice to a general agent is sufficient.

SECTION IX.

HEALTH INSURANCE.

POLICIES of health insurance provide indemnity, to the extent specified therein, for disability caused solely by bodily disease. In addition to such indemnity, hospital charges and the expense of surgical operations incurred within a limited time by reason of disease are also provided for. Injuries occasioned by accidental violence are usually expressly excepted, as well as sickness or disability sustained in the tropics or in Alaska or the British Possessions north of the sixtieth degree of latitude, or while the insured is engaged in military or naval service.

The application, which is made a part of the contract of insurance, contains a statement of facts made by the insured, including among other things, his age, the nature of his business and his occupation and duties, his present condition of health and his previous history with reference to certain specified diseases, and any medical or surgical treatment to which he has been subjected. The falsity of any of these statements bars the right to recovery, if made with intent to deceive, or materially affects either the acceptance of the risk or the hazard assumed by the company.

SECTION X.

GROUP INSURANCE.

EMPLOYERS now frequently procure insurance for their employees, and a form of policy has been devised by which the whole body of employees eligible for insurance, are insured in a single group, the policy being issued to the employer and the premium paid by him. Such a policy may be a simple life policy, under which, on the death of any employee while in the employer's service a stipulated sum is paid to the beneficiary designated by him; or it may also include a provision for the payment to the employee himself, in case of permanent total disability preventing him for life from engaging in any occupation or employment for wage or profit. Other forms of group policy

insure against accidents and disability caused by disease, and a specific weekly indemnity is agreed to be paid as in the ordinary forms of accident and health policies.

SECTION XI.

EMPLOYERS' LIABILITY INSURANCE.

INSURANCE of employers against claims of their employees for accidental injuries suffered in the course of their employment, is now to a very considerable extent made under the provisions of the Workmen's Compensation Laws, which form the subject of a subsequent chapter. We may remark here, however, that in many States where under these laws the employer is permitted to insure in a private stock or mutual insurance company, it is required that the policies be made in such form that the injured employee may have direct recourse to the insurance company for compensation, as though he were personally a party to the contract.

But even in the States where Workmen's Compensation Laws have been enacted, classes of workmen-as for instance domestic servants and farm laborers-are often expressly excepted from the operation of these laws, and in some States the law applies only to special kinds of business or to establishments in which more than a specified number of workmen are employed, so that a wide field is still left open for the insurance of employers under circumstances to which these laws do not apply.

The forms and terms of employers' liability policies vary with the nature of the employment. Special forms, for instance, are provided for manufacturers, for contractors, and for agricultural and domestic service. In general, the company agrees to indemnify the employer against loss by reason of the liability imposed upon him by law for damages on account of death or bodily injuries accidentally sustained by his employees arising out of and in the course of their employment; to defend any suits brought against him on account of such injuries, and to pay the costs and expenses incurred therein. The assured is required to give the company immediate notice of any accident and of any suit brought for recovery of damages, and, at the request of the company to aid in effecting settlements, or furnishing evidence in defense of any suit. The matter of settlement or de

fense is, however, entirely in the hands of the company, and the employer can make no settlement without its express consent. In some policies it is even provided that no action shall be brought against the company by the assured, except for loss actually sustained and paid by him in money in satisfaction of a judgment, and the time within suits may be brought is always limited.

The declarations made by the applicant for insurance, and which are expressly adopted and form a part of the policy, specify, among other things, the location of the factory, shop or yard where the employer's business is carried on, and the nature of the business, and in the case of a house or farm its location and description; also the number of employees, their duties, and the amounts of salaries and wages paid them. It is upon the facts as set forth in these declarations that the company estimates the extent of the risk assumed, the premium to be paid, and the limit of the indemnity.

As to what is meant by an injury "arising out of and in the course of the employment," see chapter xlvi on Workmen's Compensation Laws where this subject is fully discussed.

In the form of policy for manufacturers it is usually further provided, that the company shall be responsible only for injuries sustained within the premises described in the declarations, or on the premises and ways immediately adjoining, except that drivers, salesmen and messengers whose duties are performed off from the premises are covered while in the performance of their duties wherever they may be.

SECTION XII.

PUBLIC LIABILITY INSURANCE.

FEW people realize the extent of the liability to which every owner of property or employer is subject on account of injuries. to the persons or property of others due to his own negligence or that of his servants or employees, especially when it is remembered that he is responsible for the acts of his servants or employees while in the conduct of his business. My teamster or chauffeur may run over some one or collide with another vehicle. My servant may leave the coal hole in the side walk open, and some one may fall in and be injured. I may negligently allow

snow and ice to accumulate on the roof of my house and fall and injure a passerby.

To provide for these and other similar contingencies a great variety of policies are issued by insurance companies, in most of which the assured is indemnified against loss imposed upon him by law on account of bodily injuries sustained by any person other than his employees, upon the premises described in the policy. Different forms are issued for factories, stores, dwellings, farms, etc. Injuries on elevators are usually excepted, and are covered by special forms of policy. Injuries to persons or property by vehicles, automobiles or air craft, owned or operated by the person insured are also the subjects of special forms of insurance.

In the case of automobiles the policy may cover not only injury to the persons and property of others but damage to the automobile itself. Automobile policies always except injuries caused during racing, or comparative speed tests, or when the machine is operated by a person under the age required by law, or an age specified, usually sixteen or seventeen years. Air craft policies also provide that they shall not apply when the air craft is used for any purpose contrary to law, or in any race or comparative speed test, public exhibition flight, or "trick" or "stunt" flying, or when discharging any ammunition or projectiles, and that they shall apply only when the aircraft is in charge of a qualified pilot, who must be of at least a specified age, usually nineteen years.

Different kinds of insurance are sometimes contained in the same policies, with special provisions applicable to each kind. For instance a house or farm policy may include liability under Workmen's Compensation Laws, employer's liability and public liability.

SECTION XIII.

FIDELITY INSURANCE.

Or late years insurance of the fidelity and honesty of employees of large corporations and others has become an almost universal practice. The policy usually takes the form of a surety bond, but many of the general principles of insurance are applicable to

If any statements material to the risk, either in the original application or any renewal are untrue, the surety will be discharged. It has been held, however, that an official certificate made by a bank in view of the renewal of a cashier's bond, that his books and accounts had been examined and found correct, was not a warranty of their correctness, and that if the statements were made in good faith and based on a careful examination of the books and accounts, the bank could recover although the cashier was in fact then a defaulter. But if it appears that the examination was conducted carelessly, and that if properly made it would have shown the true state of affairs, the surety will be discharged.

As to precautions to be taken to prevent or detect future frauds, if the bond prescribes any specific measures they must be strictly complied with, but generally any statements on the subject in the application are considered only as representations of intention, and it is enough if they are followed substantially and in good faith. In one case where the bond required that the surety should be notified if the employee was found to be speculating or gambling, failure to notify was held to avoid the bond, although the employee had promised not to speculate again; but in such cases the insured is only bound to report facts, and not mere suspicions. It is a common provision that the surety shall not be responsible for acts committed during the term of the bond, but not discovered within six months after its expiration.

The surety is entitled to information of any important change in the duties of the employee increasing his responsibility, as when a mere clerk is appointed cashier. In case of defalcation notice must be given to the insurer as soon as practicable, otherwise he will be discharged.

SECTION XIV.

BURGLARY AND OTHER INSURANCE.

In the foregoing pages we have briefly considered the principal kinds of insurance. There are, however, many others, such as Steam Boiler Insurance, Plate Glass Insurance, Tornado Insurance, etc., and new forms are added from time to time as the exigencies of modern business or social life show the need for them. All, however, depend upon the same general principles,