POLICY. The instrument whereby insur ance is made by an underwriter in favor of an assured, expressed, implied, or intended, against some risk, peril, or contingency, in reference to some subject.
The written or printed form to which the contract has been reduced, and which evi dences the agreement or contract between the parties. It may be either a specialty or simple contract. 1 Joyce, Ins. § 145.
It must show expressly, or by implication, in whose favor it is made. It may be upon a valuable property, interest, or contingency, or be a gaming or wagering policy on a sub ject in which the assured has no interest, or against risks in respect to which the assured has no interest except what arises from the contract itself.
An interest policy is one where the insur ed has a real, substantial, assignable interest in the thing insured. Sawyer v. Ins. Co., 37 Wis. 539.
An open policy is one on which the value is not fixed, bUt is left to 'be definitely de termined in case of loss. 1 Phill. Ins. §§ 4, 6, 7; Snowden v. Guion, 101 N. Y. 458, 5 N. E. 322; Snell v. ins. Co., 4 Dall. (U. S.) 430, 1 L. Ed. 896. By an "open policy" is also sometimes meant olio in which an aggregate amount is expressed in the body of the poli cy, and the specific amounts and subjects are to be indorsed from time to time; Dou ville v. Ins. Co., 12 La. Ann. 259; Trustees First B. Church v. Ins. Co., 19 N. Y. 305; E. Carver Co. v. Ins. Co., 6 Gray (Mass.) 214; it may also mean one kept open for new subscriptions, or one on a cargo kept open for new subjects of insurance; 1 Joyce, Ins. § 156.
A valued policy is one where a value has been set on the ships or goods insured, and this value inserted in the policy in the nature of liquidated damages. In such a policy the value of the subject is expressly agreed; Schaefer v. Ins. Co., 33 Md. 109; Cox, M. & CO. V. Ins. Co., 3 Rich. (S. C.) 331, 45 Am. Dec. 771; or is, as between the parties, the amount insured. Under an open policy in case of loss, the insured must prove the true value of the property, while under a valued policy, the sum agreed upon is conclusive, ex cept in case of fraud ; 3 Camp. 319; Coolidge
v. Ins. Co., 15 Mass. 341; Lycomlng Ins. Co. v. Mitchell, 48 Pa. 372; May, Ins. § 30; 12 T. L. R. 97.
A mixed policy is one which is open as to certain property and valued as to other property. Riley v. Ins. Co 2 Conn. 368..
A wager policy is a pretended insurance, founded on an ideal risk, where the insured has no interest in the thing insured, and can therefore sustain no loss by the happen ing of any of the misfortunes insured against. These policies are strongly reprobated ; 3 Kent A floating policy is one which applies to goods of a class or kind, which, from its fluctuating, changing nature, differs • as to specific articles. Hoffman & P. v. Ins. Co., 32 N. Y. 405, 88 Am. Dec. 337.
In the absence of any insurable Interest of the beneficiary, the law will presume that a policy was taken out for the purpose of a wager, or speculation; U. B. Mut. Aid Soc. v. McDonald, 122 Pa. 324, 15 Ati. 439, 1 L. R. A. 238, 9 Am. St. Rep. 111.
The insured must be held to a knowledge of the conditions of his policy, and the fact that he had never seen it does not help him any more than the fact that he had not read it, where there is no adequate reason shown why he could not have seen it had he so desired, and the company had not kept it from him through any fault or fraud ; Cleaver v. Ins. Co., 71 Mich. 414, 39 N. W. 571, 15 Am. St. Rep. 275; Morrison v. Ins. Co., 69 Tex. 353, 6 S. W. 605, 5 Am. St. Rep. 63.
Records and documents expressly referred to in the policy are, in effect, for the purpose of the reference, a part of the contract ; Howard F. Ins. Co. v. Bruner, 23 Pa. 50; 23 E. L. & E. 514; Cushman v. Ins. Co., 70 N. Y. 72 ; Southern M. L. Ins. Co. v. Mon tague, 84 'Ky. 653, 2 S. W. 443, 4 Am. St. hep. 218; Standard L. & A. Ins. Co. v. Mar tin, 133 Ind. 376, 33 N. E. 105.