anything belonging to an island.—Insular situations are productive of many happy consequences to the inhabitants, both with respect to the climate, The parties who engage to pay the damage are called insurers or underwriters; the parties for whose security they engage are called the insured; and the premium is understood to be paid when the insurance is made.

On this subject, we shall consider, What is necessary to render an insurance valid:—When the risk commences, and when it terminates:—What constitutes a total or a partial loss:—What proof of loss is necessary:—and, How the loss is adjusted.

First, In order to render an insurance valid, the insured must have property really at stake; the voyage must take place under the circumstances agreed on; the dangers insured against must not be contrary to law, and a candid account must be given of circumstances which enhance the danger.

1. The condition of possessing property was required by 19 Geo. II. c. 37, to prevent ships from being fraudulently destroyed when insured above their value; and to discourage a practice which had become common, of converting policies to the purpose of mere wagers. In transactions of this kind, as the insured had no property, and could claim no indemnification for partial damage; so the insurers, having lost their wager by the ship's being lost, could claim no abatement, though part was saved: accordingly, the policies contained clauses of interest or no interest, free from average, and without benefit of salvage. All such policies are declared invalid.

This restriction does not extend to privateers, nor to ships trading to the Spanish or Portuguese plantations.

Insurances are commonly made as interest shall appear; and it is incumbent on the insured to prove the value of his property. The value of the goods may be proved by the invoices; and the coquet must be produced, if required, to instruct that the goods were actually shipped. It is admitted to value the ship at prime cost and charges, deducting the freights that have been drawn since purchased, if the proprietors choose to stand to that rule; but they are not restricted to it. Sometimes the value of the ship or goods is expressed in the policy; and this value must be admitted, although it be higher than the true one: but it is incumbent on the insured to prove that he had property at stake; and, if the property be trifling in comparison of the sum insured, the insurance will be set aside, as an evasion of the statute.

Expected profits, and bounty on the whale fishery, if specified in the policy, may be insured.

When the value is less than the sum insured, the owners may claim a return of premium for the excess.

If there be several policies on the same subject, of different dates, the earliest one is valid, and the others must be vacated. If they be of the same date, they must be vacated in equal proportions.

When a policy is vacated, in whole or in part, the underwriters have a right to retain ½ per cent. for their trouble.

In the case of a cargo intended for A, but afterwards sent to B, both expected it, and insured, and B claimed for the value on its being lost. The underwriters answered, that it was a double insurance, and they ought only to pay their proportion. Judgment was