Partner ship not dissolved by sale of interest. Purchaser takes, subject to liens, out dissolving the partnership. The purchaser, from the date of his purchase, becomes a member of the partnership. NOTE.-Duryea vs. Burt, 28 Cal., p. 569. 2517. A purchaser of an interest in the mining ground of a mining partnership takes it subject to the unless, etc. liens existing in favor of the partners for debts due all creditors thereof, or advances made for the benefit of the partnership, unless he purchased in good faith, for a valuable consideration, without notice of such lien. NOTE.-Duryea vs. Burt, 28 Cal., Takes with notice of lien, when. Contract in writing, when binding. Owners of majority of shares govern. p. 569. 2518. A purchaser of the interest of a partner in a mine when the partnership is engaged in working it, takes with notice of all liens resulting from the relation of the partners to each other and to the creditors of the partnership. NOTE.-Duryea vs. Burt, 28 Cal., p. 569. 2519. No member of a mining partnership or other agent or manager thereof can, by a contract in writing, bind the partnership, except by express authority derived from the members thereof. NOTE.-Lachman vs. Skillman, 23 Cal., p. 199; see note to Sec. 2511. 2520. The decision of the members owning a majority of the shares or interests in a mining partnership binds it in the conduct of its business. NOTE.-Dougherty vs. Creary, 30 Cal., p. 290. TITLE XI. INSURANCE. CHAPTER I. Insurance in General. II. Marine Insurance. III. Fire Insurance. IV. Life and Health Insurance. CHAPTER I. INSURANCE IN GENERAL. ARTICLE I. DEFINITION OF INSURANCE. II. WHAT MAY BE INSURED. III. PARTIES. IV. INSURABLE INTEREST. V. CONCEALMENT AND REPRESENTATION. VI. THE POLICY. VII. WARRANTIES. VIII. PREMIUMS. IX. Loss. X. NOTICE OF Loss. XI. DOUBLE INSURANCE. XII. REINSURANCE. ARTICLE I. DEFINITION OF INSURANCE. SECTION 2527. Insurance, what. what. 2527. Insurance is a contract whereby one under- Insurance, takes to indemnify another against loss, damage, or liability, arising from an unknown or contingent event. NOTE.-In England it is held that life insurance is not a contract of indemnity.-Dalby vs. India Life Assurance So., 15 C. B., p. 365. But a late decision in the State of New York, Ruse vs. Mut. Benefit Ins. Co., 23 N. Y., p. 516, sustains the text. The contract of insurance (other than of life and health) does not cover injuries which must inevitably occur, even though the parties do not know that they are inevitable.-Paterson vs. Harris, 1 Best & Sm., p. 336. 1 Phil. Ins., Sub. Sec. 1, defines insurance as "a contract whereby, for a stipulated consideration, one party undertakes to indemnify the other against damage or loss on a certain subject by certain perils;" and in Note 1, id., it is said that Mr. Duer (Mart. Ins., Vol. 1, p. 59) "considers the amount insured to be an essential part of the contract; but I do not see anything to prevent an insurance without any limitation of the amount. Other contracts of indemnity are frequently made without such limitation." "An indemnity must be stipulated for."-Flannegan vs. Camden Mut. Ins. Co., 1 Dutch., N. J., p. 506; see, also, Commonwealth Ins. Co. vs. Sennett, 37 Penn. St., p. 205. All the elementary writers, including Duer, Phillips, and Parsons, in the commencement of their valuable works, discuss more or less the origin and practice of insurance, more particularly as connected with commerce, which is not considered of sufficient importance to be here more than referred to. The tendency of capital, in the present day, to seek profit in the business of insurance is greater than at any previous period in the history of our country. It is the opinion of some that this does less to aid and assist, than to demoralize trade and commerce, and argue that recent developments are not encouraging to the wise lawmaker to much further extend the facilities for such investments. The disposition to protect capital invested in the productive pursuits of the country, by insurance, is undoubtedly commendable; but should it be so far protected and encouraged as to decrease popular interest in material wealth? At all events, the rapid growth of the business of insurance, and its universality-interesting all classes of the population as it does-gives rise to an absolute necessity that all should be able to understand thoroughly the relations, liabilities, and obligations existing upon the assumption of the positions of "insured" and "insurer." These observations disclose the importance of this branch of the Civil Code. ARTICLE II. WHAT MAY BE INSURED. SECTION 2531. What events may be insured against. 2532. Insurance of lottery or lottery prize unauthorized. SECTION 2533. Usual kinds of insurance. 2534. All subject to this Chapter. events may be insured against. 2531. Any contingent or unknown event, whether What NOTE.-Coggshall vs. American Ins. Co., 3 Wend., p. 283; 1 Phillips Ins., Sub. Sec. 2. rights of the assured in respect to which he is liable to of lottery or lottery prize 2532. The preceding section does not authorize Insurance an insurance for or against the drawing of any lottery, or for or against any chance or ticket in a lottery draw unauthoring a prize. NOTE.-Const., Art. IV, Sec. 27; Stats. 1861, p. 229, ized. 4. Health insurance; and, 5. Accident insurance. NOTE.-See Title II, Part IV, Division First of this Code, ante. Health and accident insurance are authorized by the law, and are governed by this Chapter, as also insurance of the lives of animals, companies being authorized to be formed therefor by Sec. 286, Subd. 2, ante. 2534. All kinds of insurance are subject to the All subject provisions of this Chapter. NOTE. And are also subject to the provisions of Art. XVI, Chap. III, Part III," of the Government of the State," Political Code, "Insurance Commissioner." to this Chapter. 17-vol. ii. ARTICLE III. Designa tion of parties. Who may insure. Who may be insured. PARTIES TO THE CONTRACT. SECTION 2538. Designation of parties. 2539. Who may insure. 2540. Who may be insured. 2541. Assignment to mortgagee of thing insured. 2542. New contract between insurer and assignee. 2538. The person who undertakes to indemnify another by a contract of insurance is called the insurer, and the person indemnified is called the insured. NOTE.-1 Phillips Ins., Sub. Sec. 2. "The party undertaking to make the indemnity is called the insurer or underwriter; the party to be indemnified the assured or insured." As underwriting is not practiced in this State, the term "underwriter" is not used in this Code. 2539. Any one capable of making a contract may be an insurer, subject to the restrictions imposed by special statutes upon foreign corporations, non-residents, and others. NOTE. The restrictions alluded to are found in the references made in the notes to Secs. 2533, 2534, in the Pol. Code, and this Code, ante, under the Titles "Corporations" and "Insurance Commissioner." 2540. Any one except a public enemy may be insured. NOTE.-1 Phil. Ins., Sub. Sec. 223. "It being illegal to buy of public enemies, or to sell to them, or contract with them, the goods and ships and any other subjects of insurance embarked in such intercourse, or destined to it, or to be derived from it, become affected by the prohibition. Property or interests so employed or so situated cannot lawfully be protected by insurance.”— Le Guidon, Chap. 2, Arts. 2 and 5; The Joseph, 1 Gall. C. C., p. 545; The Rapid, 8 Cranch, p. 155; and see 3 Kent Com. (5 ed.), p. 253; 1 Emer., Chap. 4, Sec. 9; Consulat de La Mar., C., p. 344; Poth. des Ass., N. 95; The Eenrom, 2 C. Rob., p. 1. Such a contract or trade is not excused on the ground of mistake or ignorance, any more than any other contravention of law. The Expedit Van |