premium

a ' cash premium ,' and the word 'capital' a 'fund' absolutely devoted (like a stock capital) to the payment of the debts of the corporation, and not merely subject to the payment of the debts on the mutual principle .

In Insurance. The consideration for a contract of insurance. A policy of insurance always expresses the consideration allied the premium, which is a certain amount or a certain rate upon the value at risk, paid wholly in cash, or partly so and partly by promissory note or otherwise. 2 Pars. Marit. Law 182. By the charters of mutual fire insurance companies, the insured building is usually subject to a lien for the premium; Union Ins. Co. v. Hoge, 21 How. (U. S.) 35, 16 L. Ed. 61. The premium may be payable by service rendered; Kentucky Mut. Ins. Co. v. Jenks, 5 Ind. 96. In life insurance, the premium is usually payable periodically; Buckbee v. Trust Co., 18 Barb. (N. Y.) 541; and the continuance of the risk is usually made to depend upon the due payment of a periodical premium; Hallock v. Ins. Co., 26 N. J. L. 268. Illness is no excuse for not paying; Hipp v. Ins. Co., 128 Ga. 491, 57 S. E. 892, 12 L. R. A. (N. S.) 319. But if the practice of the company and its course of dealings with the insured, and others known to him, have been such as to induce a belief that so much of the contract as provides for a forfeiture upon non-payment at a fixed time will not be insisted on, the company will not be allowed to set up such a forfeiture, as against one in whom their conduct has induced such belief; May, Ins. § 361; Mut. Bl. Ins. Co. v. Higginbotham, 95 U. S. ' 380, 24 L. Ed. 499; Home estops a company from refusing/a premium after the death of the insured; Thompson v. Ins. Co., 116 Tenn. 557, 92 S. W. 1098, 6 L. R. A. (N. S.) 1039, 115 Am. St. Rep. 823. The acceptance by a manager of a life insurance company of a promissory note from the insured for the amount of the advance premium, and a delivery of the policy upon receipt of the note, constitute a waiver of the cash premium provided for in the application and policy which binds the company, although the policy also provides that the first premium shall be paid at the home office of the company on the delivery of the policy, and that no agent has power in any way to waive the terms of the contract; 18 N. Y. L. J. 1785. A company receiving and appropriating money paid by a policy holder cannot avoid liability on the policy on the ground that no receipt in the prescribed form was given; Matthews v. Ins. Co., 147 N. C. 339, 61 S. E. 192, 18 L. R. A. (N. S.) 1219. An action lies to recover a premium paid on a policy of life insurance where the company, upon the discovery of certain false statements inserted therein by the company’s agents, cancelled the policy, but the cost of the insurance enjoyed by the insured during the life of the policy must first be deducted; Mc Donald v. Ins. Co., 68 N. H. 4, 38 Atl. 500, 73 Am. St Rep. 548. But this is doubted in 46 Am. L. Reg. 40, because the insured should be entitled to recover the entire premium, he never having had any insurance under the void policy. New York L. Ins. Oo. v. Fletcher, 117 U. S. 519, 6 Sup. Ct. 837, 29 L. Ed. 934. So far as the agreed risk is not run in amount or time under a marine policy, the whole or a proportional stipulated or customary part of the premium is either not payable, or, if paid, is to be returned unless otherwise agreed; 2 Pars. Mart. Law 185; Hill v. Reed, 16 Barb. (N. Y.) 280; Mut Marine Ins. Co. v. Munro, 7 Gray (Mass.) 246. Where an insurance company authorizes the insured to seiu Da premium by mail, such premium is paid when the letter containing it is deposited in the post office addressed to the company; Mc Cluskey v. Life Ass’n, 77 Hun 556, 28 N. Y. Supp. 931.

Lat. Reward; compensation. Prwmium asseourationis, compensation for insurance; premium of insurance. Locc. de Jur. Mar. lib. 2, c. 5, § 6.

— Premium emancipationis. In Roman law. A reward or compensation anciently allowed to a father on emancipating his child, consisting of one-third of the child's separate and individual property, not derived from the father himself. See Mackeld. Rom. Law, § 605.

— Praemium pudicitiae. The price or chastity; or compensation for loss of chastity. A term applied to bonds and other engagements given for the benefit of a seduced female. Sometimes called "præmxwm pudoris." 2 Wils. 339, 340.

The sum paid or agreed to be paid by an assured to the underwriter as the consideration for the insurance; being a certain rate per cent, on the amount insured. 1 Phil. Ins. 205; State v. Pittsburg, etc., Ry. Co., 68 Ohio St 9, 67 N. B. 93, 64 It. R. A. 405, 96 Am St. Rep. 635; Hill v. Insurance Co., 129 Mich. 141, 8S N. W. 392. A bounty or bonus; a consideration given to invite a loan or a bargain; as the consideration paid to the assignor by the assignee of a lease, or to the translerrer by the transferee of shares of stock, etc. So stock is said to be "at a premium" when its market price exceeds its nominal or face value. Rhode Island Hospital Trust Co. v. Anming-ton, 21 R. I. 33, 41 AH. 571; White v. Williams, 90 Md. 719, 45 AtL 1001; Washington, etc., Assn v. Stanley, 38 Or. 319, 63 Pac. 489, 58 L. It. A. 816, 84 Am. St. Rep. 793; Building Ass'n v. Eklund, 190 111. 257, 60 N. E. 521, 52 In In A. 637. See Par. In granting a lease, partof the rent is sometimes capitalized and paid in a lump sum at the time the lease is granted. This is called a "premium."
—Premium note. A promissory note given by the insured for part or all of the amount of the premium.
—Premium pudicitiæ. The price of chastity. A compensation for the loss of chastity, paid or promised to, or for the benefit of, a seduced female.

A reward or recompense, for an act done; the sum paid the insurer, as the consideration promissory note given as part

* Reward, recompense; price; the sum paid or to be paid. To a " wager " or " bet " there are two parties. To a " premium " or reward there is but one party until the act, thing, or purpose for which it is offered, has been accomplished. A " premium " is a reward or recompense for some act done; a " wager " is a stake upon an uncertain event. In a " premium " it is known who is to give before the event; in a " wager " it is not known until after the event.' Compare further Bet; Bounty; Prize; Wager, 3. At a premium. At a price higher than the nominal value; as, when it is said that a share of stock, or exchange, is at a premium. Premiiim note. A promissory note given for the price of insurance. Premium of insurance. The sum paid for undertaking the risk in a contract of insurance. The payment of the annual premium in life insurance is a condition subsequent only, the non-performance of which may incur a forfeiture of the policy, or may not, according to circumstances. The insured may show a waiver of the condition, or a course of conduct which gave him a just and reasonable ground to infer that a forfeiture would not be exacted ' See Inburakce.

The money paid by the insured in the contract of in-

A Latin vcord, meaning price or sum paid; which has been Anglicized to stand for the price or payment peculiar to certain transactions. Thus premium for insurance is the price or sum which the underwriter or company exacts as the consideration of undertaking the risk. Shares are said to sell at a premium, when they bring a price above their cost or nominal value. Premium note. A promissory note which a person insured is allowed, by the practice of some insurance companies, to give for either all or part of the price of the insurance; a note for insurance premium. Premium pudicitiae. The price of chastity. A compensation for the loss of chastity, paid or promised to, or for the benefit of, a seduced female. Sometimes termed premium pudoris.