II.   Instruments & Transactions

Insurance is a formal Instrument issued under the Corporate Securities standards of instruments and writing first formed under the Westminster laws of Great Britain from the 17th Century as a form of Marine Assurance under Admiralty Law whereupon one party assures the safety of a ship or its cargo, or to make good any potential losses against the ship or its cargo, or any potential losses incurred by some other party as a result of the operation of the ship or its cargo.

All Insurance is by default subject to Admiralty Law and any reference to Insurance therefore implies an instrument subject to Admiralty Law. Since Insurance is Marine Assurance under Admiralty Law, it is not possible to determine an Insurance matter in anything other than a court having certain Admiralty jurisdiction.

There are primarily three (3) forms of possible Insurance based upon the primary classification of Risk, being Safety, Loss and Liability:

(i) Safety Insurance is born from the first treaties of Admiralty between nations in the 17th Century in the form of a Pass-Port (Passport) or License (such as Drivers License) purchased by a merchant to ensure safe passage against privateers and others with Letters of Marque and the power to stop, detain and seize goods or crew from a ship (or vehicle) without a Passport/License. Life Insurance (excluding death benefits) is a form of Safety Insurance; and

(ii) Loss Insurance is born from the most ancient concept of marine insurance and the risk of damage of goods, spoiling, wreckage of ship or some other misadventure. Loss Insurance includes (but is not limited to) Fire Insurance, Property Insurance, Auto Insurance, Health Insurance, Accident and Sickness Insurance and Death Benefits of a Life Insurance Policy; and

(iii) Liability Insurance is born from the risk of injury to third parties due to an accident, or trespass, or wrong, or failure of performance and includes (but is not limited to) Public Liability Insurance, Contract Insurance, Production Insurance and Event Insurance. The Certificate of Registration issued against a Motor Vehicle is a simple form of Liability Insurance with some jurisdictions even requiring drivers to take additional Liability Insurance.

In terms of Safety Insurance:

(i) The concept of Safety Insurance was first defined under the Treaty Maritime of 1674 between the Dutch Republic and England, whereby the captains and masters of neutral ships of both countries could apply and purchase a Letter known as a “Pass-Port” (Passport) as proof they were neutral parties, not carrying contraband or prohibited goods and that any pirate holding a letter of marque as a privateer, or any other military official was forbidden to detain, hold, seize or damage such vessel, or crew or goods upon production of the Pass-Port; and

(ii) Life Insurance was first permitted as the insuring against the head of a passenger in risk of being taken by pirates, slave traders or misadventure from the 17th Century; and

(iii) In the 18th Century as Admiralty Law transferred to the Land, the concept of Passports was extended to Licenses for the same concept of government assurance of peaceful travel and forbiddance of privateers with letters of marque seizing goods. This was extended further in numerous acts in the 19th Century and became the basis of the concept of the Drivers License.

In terms of the unique elements of Insurance defined in law from the 17th Century:

(i) Insurance is either Public or Private: (a) Public Insurance is done at a valid office of assurance, or one commissioned for oaths and duly attested, witnessed and recorded; and (b) Private Insurance is agreed upon between merchant and merchant in private; and

(ii) By definition, all Insurance is Marine Assurance under Admiralty Law. Therefore, all Insurance, whether public or private must be made (a) upon the ship (vessel); or (b) consigned goods; or (c) ship and goods; and

(iii) Unique characteristics of Admiralty Law by historic precedent permits objects on land to be “converted” to objects of the sea. Therefore, a car and even a home in certain circumstances may be treated as a “vessel” while a man or woman or their personal possessions may be considered a “good”; and

(iv) Insurance may be to a certain place or places (a fixed port or “address”) or general; and

(v) Providing the conditions of a Policy of Insurance comply with Admiralty Law and conditions of the laws of a society, by tradition there is no restriction on a competent merchant or agent making either a public or private Insurance Policy; and

(vi) The rate of Premium of a Policy depend upon the risk and terms of assurance within the Policy. Therefore, the higher the risk, the higher the rate, the lower the risk, the lower the rate might be.

In terms of historic conditions and requirements of Insurance since the 17th Century:

(i) Insuring for more than a ship or goods are worth considered fraudulent and the insurers are not obliged to answer (26 Car.2.); and

(ii) Deliberately damaging ship or goods to collect insurance is fraudulent and the insurers shall not be prejudiced (1 Ann and 11 Geo .1); and

(iii) If goods insured are not contraband at the time of Lading and Insurance and after become such, they are then seized, the insurers are answerable (12 Car.2. c.32); and

(iv) If goods and merchandize be lawfully insured and afterwards the ship becomes disabled by reason of which, with the consent of the merchant they are re-laden into another vessel and that vessel proves the ship of an enemy, the insurers are liable; and

(v) If goods are insured on a ship bound to any foreign port and in the voyage she happens to be leaky or receive other damage and another vessel is freighted for the preservation of the goods and the second vessel is lost at sea, the insurers are discharged withut a special clause making them liable; and

(vi) If goods are stolen or embezzelled on ship board, the master and not the insurers are liable (15 Car 2.); and

(vii) Insurance may be on mens heads as where a man is in danger of being taken into slavery, whereby ransom must be paid for his redemption, he may advance a premium in consideration of which the insurer must answer the ransom secured if there is an agreement 29 Car; and

(viii) Houses may be insured in case of loss by fire 19 Geo 2. C. 37; and

(ix) No assurance of Insurance shall be made by any person on any ship belonging to the Crown or his subjects, except privateers and by the owners of such ships or on any goods laden on board such ships, interest; and

(x) Re-assurance shall not be made except the assurer becomes insolvent.