hazard, and only a
rich person, who can afford to lose his money, ought to invest in the
stock of such companies. Their profits and losses vary greatly from
year to year; and failures have been frequent. Nevertheless some
companies have a fine record, enough to tempt them to continue
notwithstanding their trying reverses.

As the contract of insurance is for an indemnity, the insured must
have some interest in the property insured, otherwise the contract is
a mere wager, which the law condemns. Moreover the interest must
continue and exist at the time of the loss. Who, therefore, has an
insurable interest? A bailee, a carrier of goods, a consignee who has
authority to sell them, a factor, pledgee, warehouseman, an assignee
for the benefit of creditors, an executor or administrator, an
attachment creditor, but not a general creditor, a landlord, tenant,
mortgagee of real or personal property, a lienor, for example, the
holder of a mechanic's lien, a receiver, residuary legatee or devisee,
a trustee, vendees and vendors of real and personal property, the
owner of stock in a corporation, any agent who has the care and
management of his principal's property, besides many others. But a
fire insurance policy may be assigned as collateral security with the
company's consent, and continue valid though the assignee has no
interest in the property. This rule therefore is fundamental, and if
the interest of the insured in the property has been extinguished
after making his contract and prior to its loss by fire, he can get
nothing from the company. Likewise the property must have been in
existence at the time of making the contract, if it was not, the
policy is void. Many stories are told of insuring ships after learning
of their loss; such conduct is a palpable fraud.

An insurance policy is a contract, of which the policy is evidence. A
standard policy has been prescribed in several states by statute: in
other states the parties are still free to make such terms as they
please. It is usual for companies to execute blank policies in due
form to be filled out and delivered by their agents. Such policies are
not valid until countersigned, unless the countersigning is waived.

When does the policy become valid or binding on the insured? Says a
competent authority: "Where a policy has been duly executed in
compliance with an application on the part of the insured, so that the
minds of the parties have fully met as to the terms and