, ay-men).
[Latin] Hist. In the name ofGod, Amen. -This phrase
formerly appeared at the beginning ofa will or other
instrument.
innotescimus (in-oh-tes-a-mas). [Law Latin "we make
known"] Hist. A certification, in the form ofletters
patent, ofa charter of feoffment or other instrument
not filed of record. -This term derives from the word
ofemphasis appearing at the end ofthe document. Cf.
EXEMPLIFICATION.

innovata lite dependente (in-oh-vay-ta II-tee dee-pen
den-tee). [Law Latin] Hist. Innovations during the
pendency of a suit. -lhe phrase appeared in reference
to the interference with something that is the subject
of a lawsuit. See PENDENTE LITE.
innovation. Scots law. See "OVATION.
innoxiare (i-nok-shee-air-ee), vb. [Law Latin] Hist. To
purge (a person) offault.
in nubibus (in n[yJoo-bi-bas), adv. & adj. [Law Latin] In
the clouds. _ An expression for something that is under
the protection of the law.
in nudis finibus contractus (in n[y]oo-dis fin-a-bas
bn-trak-tas). [Law Latin] Hist. In the bare terms of
a contract.
in nudis terminis (in n[y]oo-dis tilr-ma-nis). [Law Latin
"with bare limits"] Hist. In its bare terms. -The phrase
appeared in reference to the simple terms of an instru
ment. See NUDUM PACTUM.
innuendo (in-yoo-en-doh). [Latin "by hinting") (17c)
1. An oblique remark or indirect suggestion, usu. of a
derogatory nature. 2. An explanatory word or passage
inserted parenthetically into a legal document. -In
criminal law, an innuendo is a statement in an indict
ment showing the application or meaning of matter
previously expressed, the meaning of which would
not otherwise be clear. In the law of defamation, an
innuendo is the plaintiff's explanation of a state
ment's defamatory meaning when that meaning is not
apparent from the statement's face. For example, the
innuendo of the statement "David burned down his
house" can be shown by pleading that the statement
was understood to mean that David was defrauding
his insurance company (the fact that he had insured
his house is pleaded and proved by inducement). Cf.
INDUCEMENT (4); COLLOQUIUM. [Cases: Libel and
Slander (::::>86.]
"Innuendo (from innl/o, to nod or beckon with the head) is
a word used in declarations and law pleadings, to ascertain
a person or thing which was named before .... If a man
say, that such a one had the pox, innuendo the French pox,
this will not be admitted, because the French pox was not
mentioned before, and the words shall be construed in a
more favourable sense. But, if in discourse of the French
pox, one say, that such a one had the pox, innuendo the
French pox, this will be admitted to render that certain
which was uncertain before." 2 Richard Burn, A New Law
Dictionary 24 (l792).
"It is not a true innuendo to repeat the obvious meaning of
defamatory words in other language, or in an embroidered
or exaggerated way. Otherwise an ingenious pleader could
perplex the judge and jury and harry the defendant by
ringing the changes on the same words, creating numerous
different causes of action, each requiring a separate
verdict. A true innuendo relies on a conjunction of the
words used and some extrinsic fact. Thus it is defamatory
in itself to say that a man's affairs are being investigated
by the Fraud Squad: but the statement does not support
the innuendo that those affairs are being carried on fraudu
lently. Conversely, the statement 'X is a good advertiser' is
innocent in itself, but carries a libellous innuendo if pub
lished to persons who know the extrinsic fact that X is an
eminent member of the Bar." R.F.v. Heuston, Salmond on
the Lawo(Torts 149 (17th ed. 1977). [The example about lawyers' advertising no longer has relevance to American
law. Eds.]
in nullius bonis (in na-h-as boh-nis). See NULLIUS IN
BONIS.
in nullo est erratum (in nal-oh est i-ray-tam), adj. [Law
Latin "in nothing is there error"] Hist. Of or relating
to a demurrer that denies any error and at once refers
a question oflaw to the court.
in obligatione (in ob-li-gay-shee-oh-nee). [Latin] Hist.
Under an obligation.
in odium (in oh-dee-<lm). [Latin] Hist. In detestation.
-For example, a gift made to a woman who was later
divorced for committing adultery was revoked in odium
ofher guilt.
in odium corrumpentis (in oh-dee-am kor-am-pen-tis).
[Latin] Hist. In detestation ofthe person corrupting.
inofficiosus (in-a-fish-ee-oh-sas), adj. [Latin "inof
ficious"] Roman law. Contrary to a natural duty of
affection, used esp. of a will that unjustly disinherits a
child or close relative. See QUERELA INOFFICIOSI TES
TAMENT!.
inofficious testament. See TESTAMENT.
inofficious will. See inoffiCiOUS testament under TESTA
MENT.
in omnibus (in ahm-ni-bas). [Latinl In all things; on all
points <a case parallel in omnibus>.
inoperable mode. Patents. In a patent application, a
disclosed way of working an invention that is not the
best mode. -'The term usu. designates a mode that is
intended to misrepresent or deliberately conceal the
best mode. That misrepresentation or concealment
is inequitable conduct that will bar patentability or
render an issued patent unenforceable. [Cases: Patents
(;:::;>98.]
inoperative, adj. (17c) 1. Having no force or effect; not
operative <an inoperative statute>. 2. Patents. (Of an
invention), the condition ofnot being capable of func
tioning as described in the patent application.
"An invention is inoperative if an exemplification, built
exactly as described in the patent, won't operate, or if
further experiment and invention are required to make it
operate." Roger Sherman Hoar, Patent Tactics and the Law
37 (3d ed. 1950).
inops consilii (in-ahps bn-sil-ee-I), adj. [Latin) Des
titute of counsel; without legal counsel. _ This term
described actions taken without benefit oflegal advice,
as when a testator drafts a will without the help of an
attorney.
'Hlhat in devises by last will and testament, (which, being
often drawn up when the party is inops consilii, and are
always more favoured in construction than formal deeds,
which are presumed to be made with great caution, fore
thought, and advice) in these devises, I say, remainders
may be created in some measure contrary to the rules
before laid down ...." 2 William Blackstone. Commentar
ies on the Laws of England 172 (1766).
in order. 1. Ready for business <the meeting is in order>.
2. Available and appropriate for consideration under

862 inordinatus
the applicable rules <the motion is in order>. Cf. OUT
OF ORDER (1).
inordinatus (in-or-d,,-nay-t<Js), n. [Latin "disorderly;
unordained"] Hist. See INTESTATE.
in pacato solo (in p,,-kay-toh soh-Ioh), adv. [Latin] In a
country that is at peace.
in pace Dei et regis (in pay-see dee-I et ree-jis), adv. [Law
Latin] Hist. In the peace of God and the king . This
phrase was used in an appeal from a murder convic
tion.
in pais (in payor pays). [Law French "in the country")
Outside court or legal proceedings. See equitable
estoppel (1) under ESTOPPEL.
in paper. Hist. Ofa proceeding that is within the juris
diction of the trial court; that is, before the record is
prepared for an appeal.
"Formerly, the suitors were much perplexed by writs of
error brought upon very slight and trivial grounds, as mis
spellings and other mistakes of the derks, all which might
be amended at the common law, while all the proceedings
were in paper, for they were then considered in fieri, and
therefore subject to the control of the courts." 3 William
Blackstone, Commentaries on the Laws of England 407
(1768).
in pari causa (in par-I kaw-zJ), adv. [Latin "in an equal
case"] In a case affecting two parties equally or in which
they have equal rights <in pari causa, the possessor
ordinarily defeats the nonpossessory claimant>.
in pari delicto (in par-I dJ-lik-toh), adv. [Latin "in equal
fault"] Equally at fault <the court denied relief because
both parties stood in pari delicto>. [Cases: Action (;=:
4; Equity (;=:65.]
in pari delicto doctrine, n. [Latin] (1917) The principle
that a plaintiff who has participated in wrongdoing
may not recover damages resulting from the wrong
doing. [Cases: Action (;=:4; Contracts (;=: 139; Equity
(;=:65.]
in pari materia (in par-I m,,-teer-ee-d). [Latin "in the
same matter"] 1. adj. On the same subject; relating to
the same matter . It is a canon of construction that
statutes that are in pari materia may be construed
together, so that inconsistencies in one statute may
be resolved by looking at another statute on the same
subject. [Cases: Statutes C:::)223.2(1)-223.2(35).]
"[Ilt seems that the present position is that, when an earlier
statute is in pari materia with a later one, it is simply part
of its context to be considered by the judge in deciding
whether the meaning of a provision in the later statute is
plain." Rupert Cross, Statutory Interpretation 128 (1976).
2. adv. Loosely, in conjunction with <the Maryland
constitutional provision is construed in pari materia
with the Fourth Amendment>.
in patiendo (in pash-ee-en-doh), adv. & adj. [fro Latin
patior "suffer"] In suffering or permitting.
in patria potestate (in pay-tree-" [or pa-tree-J] poh-tes
tay-tee). [Latin) Roman law. (Ofa person) in the power
of the father or a senior male ascendant; subject to
patria potestas .  Uncles and brothers never had power over nephews or younger brothers. See patria potestas
under POTESTAS; SUB POTESTATE. Cf. SUI JURIS.
in patrimonio principis (in pa-tr<J-moh-nee-oh prin-si
pis). [Latin] See INTER REGALIA.
in pectore judicis (in pek-td-ree joo-di-sis), adv. & adj.
[Latin) In the breast of the court. See BREAST OF THE
COURT.
in pejorem partem (in pJ-jor-Jm pahr-tdm), adv. [Law
Latin] In the worst part; on the worst side.
in pendente (in pen-den-tee). [Latin] Hist. In suspen
sion; in abeyance.
inpenny and outpenny. Hist. A customary payment ofa
penny on entering into and going out of a tenancy.
in periculo constitutus (in p,,-rik-Y;:l-loh kon-sti-t[y]
OO-tJ8). [Latin] Hist. Standing in danger.
in perpetuam commendam (in pdr-pech-oo-dm kJ-men
d;:lm). [Law Latin] Hist. In perpetual trust.  Something
given in perpetuam commendam was equivalent to a
gift.
in perpetuam rei memoriam (in pJr-pech-oo-Jm [or
pJr-pe-tyoo-Jm) ree-I mJ-mor-ee-Jm), adv. [Latin] In
perpetual memory ofa matter . This phrase refers to a
deposition taken to preserve the deponent's testimony.
[Cases: Federal Civil Procedure (;=: 1291; Pretrial Pro
cedure (;::=>61.]
in perpetuity (in pdr-p,,-t[yjoo-J-tee). (14c) Forever. See
PERPETUITY.
in perpetuum (in pJr-pech-oo-"m or p"r-pe-tyoo-Jm),
adv. [Latin] Forever; perpetually. Sometimes spelled
imperpetuum.
in perpetuum rei testimonium (in pJr-pech-oo-dm [or
p"r-pe-tyoo-dm] ree-I tes-ti-moh-nee-Jm), adv. [Law
Latin] In perpetual testimony ofa matter . This phrase
refers to a statute that confirms existing common law.
"Statutes also are either declaratory of the common law, or
remedial of some defects therein. Declaratory, where the
old custom of the kingdom is almost fallen into disuse,
or become disputable; in which case the parliament has
thought proper, in perpetuum rei testimonium, and for
avoiding all doubts and difficulties, to declare what the
common law is and ever hath been." I William Blackstone,
Commentaries on the Laws of England 86 (1765).
in personam (in p"r-soh-nJm), ad). [Latin "against a
person"] (1Sc) 1. Involving or determining the personal
rights and obligations of the parties. 2, (Of a legal action)
brought against a person rather


determining the personal
rights and obligations of the parties. 2, (Of a legal action)
brought against a person rather than property. Also
termed personal. See action in personam under ACTION
(4). Cf. IN REM. [Cases: Courts (;::::10.] in personam,
adv.
"An action is said to be in personam when its object is to
determine the rights and interests of the parties them
selves in the subject-matter of the action, however the
action may arise, and the effect of a judgment in such an
action is merely to bind the parties to it. A normal action
brought by one person against another for breach of
contract is a common example of an action in personam."
R.H. Graveson, Conflict ofLaws 98 (7th ed. 1974).
in personam jndgment. See personal judgment under
JUDGMENT.

863 inquest
in personam jurisdiction. See personal jurisdiction
under JURISDICTION.
in pessimafide (in pes-J-mJ fI-dee). [Latin] Hist. In the
worst faith; dishonestly.
in petitorio (in pet-J-tor-ee-oh). [Latin] Hist. In a
petitory action.
in pios usus (in phIS yoo-SJS), adv. [Law Latin] Rist.
For pious uses; for religious purposes. -This phrase
referred to property used by, or claimed by, the church,
such as the property ofan intestate who had no known
heirs.
in placito (in plas-J-toh). [Law Latin] Hist. In a suit.
in plena vita (in plee-nJ VI-tJ), Cldv. & ad). [Law Latin]
In full life .
in pleno comitatu (in plee-noh kahm-i-tay-t[y]oo), adv.
& adj. [Law Latin] In full county court.
in pleno [umine (in plee-noh loo-mJ-nee), adv. & adj.
[Law Latin] In the light ofday; in common knowledge;
in public.
in poenam (in pee-nJm). [Latin] Hist. As a penalty; as
a punishment.
in point. See ON POINT.
in posse (in pos-ee). [Latin] Not currently existing, but
readv to come into existence under certain conditions
in the future; potential <the will contemplated both
living children and children in posse>. Cf. IN ESSE.
in possessorio (in pah-ses-sor-ee-oh). [Law Latin] Hist.
In a possessory suit.
in potestate parentis (in poh-tes-tay-tee pJ-ren-tis), adv.
& adj. [Latin] Hist. In the power ofa parent. See PATRIA
POTESTAS.
in potestate patris (in poh-tes-tay-tee pay-tris arpa-tris).
[Latin] Roman law. Under the power of the father.
The phrase appeared in reference to the position of a
child in power. See patria potestas under POTESTAS; SUB
POTESTATE. Cf. SUI JURIS.
in po testate viri (in poh-tes-tay-tee veer-I). [tatinj Hist.
Under the power of the husband. -Formerly, this
phrase appeared in reference to the position ofa wife
in legal matters because the husband was the guardian
ofthe wife.
in praemissorumfidem (in pree-mJ-sor-Jm [orprem-a-]
fI-dJm), adv. & adj. [Law Latin] Rist. In confirmation
or attestation of the premises. _ This phrase commonly
appeared in notarized documents.
in praesenti (in pri-zen-tI or pree-). [Latin] At present;
right now. Cf. IN FUTURO.
in praesentia dominorum (in pri-zen-shee-a dom-J
nor-Jm). [Latin] Hist. In presence of the lords. -The
phrase was added to the presiding judge's signature to
indicate that the remaining judges did not have to sign
the document because the presiding judge had signed
the writing in their presence. -Abbr. IPD.
in prender (in pren-dar), adj. [Law French "in taking"]
Hist. (Ofa right) consisting in property taken to fulfill a claim to it, such as an incorporeal hereditament (as
a heriot custom) that a lord had to seize in order to
exercise the right to it. Ct~ IN RENDER.
in-presence rule. 1he prinCiple that a police officer may
make a warrantless arrest of a person who commits a
misdemeanor offense not only in the officer's actual
presence but also within the officer's immediate
vicinity.
"The common law rule with respect to misdemeanors was
quite different; a warrant was required except when a
breach of the peace occurred in the presence of the arrest
ing officer. ... Though the 'in presence' rule might be
construed as requiring that the misdemeanor in fact have
occurred in the officer's presence, the modern view is that
the officer may arrest if he has probable cause to believe
the offense is being committed in his presence." Wayne
R. LaFave & Jerold H. Israel, Criminal Procedure  3.5, at
169-70 (2d ed. 1992).
in primis (in prI-mis). See IMPRIMIS.
in principio (in prin-sip-ee-oh), adv. [Latin] At the
beginning.
in privato patrimonio (in prr-vay-toh pa-trJ-moh
nee-oh). [Latin] Hist. Among private property.
in promptu (in promp-t[y]oo), adv. & adj. [Latin "at
hand"] Archaic. Impromptu.
in propria persona (in proh-pree-J par-soh-n~). [Latin
"in one's own person"] See PRO SE.
in proximo gradu (in prok-sJ-moh gray-d[y]oo).
[Latin] Roman law. In the nearest degree . 1he phrase
appeared in reference to a child's relationship to the
father or to a grandchild's relation to a grandfather if
the grandchild represented his or her deceased father.
See PER STIRPES.
in publica custodia (in p<lb-li-kJ kJs-toh-dee-J). [Latin]
Hist. In the public custody. -The phrase appeared in
reference to public records.
in publicam vindictam (in p<lh-li-kJm vin-dik-t~m).
[Latin] Hist. For vindicating public right.
in puram eleemosynam (in pyoor-Jm el-J-mos-a-n;)m).
[Law Latin] Hist. In pure charity. -Gifts were some
times made to churches in puram eleemosynam, requir
ing nothing but prayers for the grantor in return.
in quantum locupletiores facti sumus ex damno alterius
(in kwon-tJm lok-yoo-plee-shee-or-eez fak-tI sly]
oo-mJS eks dam-noh al-teer-ee-as). [Latin] Roman
law. Insofar as we have been enriched to the loss or by
the damage ofanother. _lhe phrase appeared in refer
ence to the rule by which certain persons were bound
in restitution to the extent of their enrichment. See
NEGOTIORUM GESTIO.
in quantum lucratus est (in kwon-tJm 100-kray-tJs est).
[Latin] Hist. Insofar as he has gained or profited.
in quantum valeat (in kwon-t<:1m vay-Iee-at or -Jt).
[Latin] Hist. For what it is worth.
inquest. (Be) 1. An inquiry by a coroner or medical
examiner, sometimes with the aid of a jury, into the
manner ofdeath ofa person who has died under suspi
cious circumstances, or who has died in prison. Also

864 inquest jury
termed coroner's inquest; inquisition after death. [Cases:
Coroners Homicide C=> l1lO.] 2. An inquiry into
a certain matter by a jury empaneled for that purpose.
3. The finding of such a specially empaneled jury. 4.
A proceeding, usu. ex parte, to determine, after the
defendant has defaulted, the amount of the plaintiffs
damages. Cf. INQUISITION.
grand inquest. 1. An impeachment proceeding. 2.
Hist. (cap.) The survey of the lands of England in
lO85-1086, by order of William the Conqueror, and
resulting in the Domesday Book Also termed Great
Inquest; Grand Survey; Great Survey. See DOMESDAY
BOOK. 3. Hist. Grand jury.
inquest of office. Hist. An inquest conducted by a
coroner, sheriff, or other royal officer into the Crown's
right to property by reason of escheat, treason, or
other ground offorfeiture.
5. WARDMOTE.
inquest jury. See JURY.
in qui bus infitiando lis crescit (in kwib-<}s in -fish-ee-an
doh lis kres-it). [Latin] Roman law. In which the suit
increases by denial.  The phrase appeared in reference
to the measure of damages in a legal action when, if
the defendant wrongfully denied a claim for damages,
the defendant could be penalized by a multiple of the
original claimed amount, usu. double, triple, or qua
druple. -Also spelled inficiando.
inquilinus (in-kwd-h-nds), n. [Latin] Roman law. A
person who leases or lives in another's house or apart
ment; esp., an urban tenant.
inquirendo (in-kwd-ren-doh). [Latin] Hist. An inquiry or
investigation; esp., an inquiry into a matter concerning
the Crown's interests, such as lands that are forfeited
to the Crown.
inquiry. (15c) 1. lnt'llaw. FACT-FINDING (2). 2. Parlia
mentary law. A request for information, either proce
dural or substantive. See REQUEST; POINT (2).
parliamentary inquiry. An inquiry that asks a question
about procedure.
3. Hist. A writ to assess damages by the sheriffor sher
iff's deputies.
inquiry notice. See NOTICE.
inquisitio (in-kw<l-zish-ee-oh). [Latin] Inquisition or
inquest. See INQUISITION (1).
inquisitio post mortem (in-kwd-zish-ee-oh pohst mor
tdm). [Latin] See inquest ofoffice under INQUEST.
inquisition. (14c) I. The record ofthe finding ofthe jury
sworn by the coroner to inquire into a person's death.
[Cases: Coroners C=> 18.] 2. A judicial inquiry, esp. in a
derogatory sense. 3. A persistent, grueling examination
conducted without regard for the examinee's dignity or
civil rights. Cf. INQUEST.
inquisition after death. See INQUEST (1).
inquisitor. (16c) l. An officer who examines and inquires,
such as a coroner or sheriff. 2. A person who inquires;
esp., one who examines another in a harsh or hostile manner. 3. Hist. Eccles. law. An officer authorized to
inquire into heresies; esp., an officer of the Spanish
Inquisition.
inquisitorial court. See COURT.
inquisitorial system. (1846) A system of proof-taking
used in civil law, whereby the judge conducts the trial,
determines what questions to ask, and defines the scope
and the extent ofthe inquiry . This system prevails in
most of continental Europe, in Japan, and in Central
and South America. Cf. ADVERSARY SYSTEM.
INR. abbr. BUREAU OF INTELLIGENCE AND RESEARCH.
in re (in ree or ray). [Latin "in the matter of"] (1877) (Of
a judicial proceeding) not formally including adverse
parties, but rather involving something (such as an
estate). _ The term is often used in case citations, esp.
in uncontested proceedings <In re Butler's Estate>.
Also termed matter of<Alatter ofButler's Estate>.
in rebus (in ree-b<}s), adv. [Latin] In things, cases, or
matters.
in rebus litigiosis (in ree-b<'ls IHij-ee-oh-sis). [Latin] Hist.
In things subject to litigation.
in rem (in rem), adj. [Latin "against a thing"] (18c)
Involving or determining the status of a thing, and
therefore the rights of persons generally with respect
to that thing. Also termed (archaically) impersonal.
See action in rem under ACTION (4). Cf. IN PERSONAM.
[Cases: Admiralty Courts ~---, 16.] in rem,
adv.
"An action in rem is one in which the judgment of the
court determines the title to property and the rights of
the parties, not merely as between themselves, but also as
against all persons at any time dealing with them or with
the property upon which the court had adjudicated." R.H.
Graveson, Conflict ofLaws 98 (7th ed. 1974).
quasi in rem (kway-sI in rem or kway-zr). [Latin "as
if against a thing"] (1804) InvolVing or determining
the rights of a person having an interest in property
located within the court's jurisdiction. See action
quasi in rem under ACTION (4). [Cases: Courts
16.]
in re mercatoria (in ree m<}r-k<}-tor-ee-<}). [Latin] Scots
law. In a mercantile transaction . Documents made
in or connected with a mercantile transaction did not
require the typical formalities in order to be binding.
"All writings in re mercatoria are privileged, and are
held valid and binding, although wanting the solemni
ties com mon and necessary to ordinary deeds .... This
privilege has been given to these documents, because of
the rapidity with which, in most cases, they have to be
prepared, and the immediate use


given to these documents, because of
the rapidity with which, in most cases, they have to be
prepared, and the immediate use to which they have to
be put, and also because, from the necessity of the case,
they are generally prepared by those who are not supposed
to be acquainted with the formalities and solem nities of
deeds." John Trayner, Trayner's Latin Maxims 273 (4th ed.
1894).
in rem judgment. See judgment in rem under
JUDGMENT.
in rem jurisdiction. See JURISDICTION.

865
in rem suam (in rem s[r]oo-am). [Latin] Hist. Regarding
one's own property; for one's own advantage.
in rem versum (in rem var-sam). [Latin] Roman law.
Employed in one's own matter; used to one's own
advantage. See ACTION DE IN REM VERSO.
in render (in ren-dar), adj. [Law French "in yielding or
paying"] Hist. (Of property) required to be given or
rendered. Cf. IN PRE'mER.
in re propria (in ree proh-pree-a). [Latin] Hist. In one's
own affairs.
in rerum natura (in reer-am na-tyuur-a), adv. & adj.
[Law Latin] Hist.ln the nature of things; in existence.
 'Ibis phrase was used in a dilatory plea alleging that
the plaintiff was a fictitious person, and therefore not
capable of bringing the action.
in retentis (in ri-ten-tis). [Law Latin "among things
withheld"] Scots law. Subject to reservation . Evidence
might be taken in retentis if, for example, the witness
were mortally ill, and then be set aside until the proper
time to produce it.
in rigore juris (in rig-ar-ee joor-is). [Latin] Hist. Accord
ing to strict law.
in rixa (in rik-sa). [Latin] Scots law. In an altercation or
brawl.  Words spoken in rixa were usu. not actionable
as defamation.
in rixa per plures commissa (in rik-sa par pIuur-eez
[or ploo-reezl ka-mis-a). [Latin] Scots law. An offense
committed in the course of a quarrel involving several
persons.
inroll, vb. See ENROLL (1).
inrollment. See ENROLLMENT.
INS. abbr. IMMIGRATION AND NATURALIZATION
SERVICE.
in sacris (in say-kris). [Latin] Scots law. In sacred matters.
 The phrase appeared in reference to the supremacy of
ecclesiastical-court jurisdiction in certain matters, esp.
those involving church doctrine and discipline.
insane, adj. (l6c) Mentally deranged; suffering from
one or more delusions or false beliefs that (1) have no
foundation in reason or reality, (2) are not credible to
any reasonable person of sound mind, and (3) cannot
be overcome in a sufferer's mind by any amount of
evidence or argument. See INSANITY. [Cases: Mental
Health
insane asylum. See ASYLUM (3).
insane delusion. (1838) An irrational, persistent belief
in an imaginary state of facts resulting in a lack of
capacity to undertake acts of legal consequence, such
as making a will. See CAPACITY (2). [Cases: Criminal
Law (::=:49.]
insanity, n. (16c) Any mental disorder severe enough
that it prevents a person from having legal capacity and
excuses the person from criminal or civil responSibil
ity. Insanity is a legal, not a medical, standard.
Also termed legal insanity; lunacy. Cf. SANITY. [Cases: inSCriptio
Criminal Law~'47; HomicideC:::>817; Mental Health
''The lawyers refer to 'insanity.' This is a legal term only,
and one that is not used by the psychiatrist; the latter
prefers to speak of mental disorder, mental illness, or of
psychosis or neurosis." Winfred Overholser, Psychiatry and
the Law, 38 Mental Hygiene 243,244 (1954).
"The word 'insanity' is commonly used in discussions of
this problem although some other term would seem to be
preferable such as 'mental disease or defect,' -which may
be shortened to 'mental disorder' in general discussions if
this is clearly understood to include disease of the mind,
congenital lack, and damage resulting from traumatic
injury, but to exclude excitement or stupefaction result
ing from liquor or drugs. Apart from its uses In the law
'insanity' is usually employed to indicate mental disorder
resulting from deterioration or damage as distinguished
from congenital deficiency, Criminal incapacity may result
as readily from one as from the other, but while the earlier
authorities spoke of the 'idiot' and the 'madman,' . ' . the
more recent tendency in the law has been to include both
under the 'insanity' label," Rollin M. Perkins & Ronald N,
Boyce, Criminal Law 952 (3d ed, 1982).
"Another objection to the word 'insanity' is the unwar
ranted assumption that it refers to a very definite mental
condition, seldom put into words but apparent in many
discussions of the problem." Id.
emotional insanity. (1872) Insanity produced by
a violent excitement of the emotions or passions,
although reasoning faculties may remain unimpaired;
a passion that for a period creates complete derange
ment of intellect.  Emotional insanity is sometimes
described as an irresistible impulse to do an act. See
IRRESISTIBLE-IMPULSE TEST. [Cases: Criminal Law
Homicide (::=:818.]
partial insanity. See diminished capacity under CAPA
CITY (3),
temporary insanity. (l8c) Insanity that exists only at
the time of a criminal act.
insanity defense. Criminal law. (1912) An affirmative
defense alleging that a mental disorder caused the
accused to commit the crime. See 18 USCA  17; Fed.
R. Crim. P. 12.2. Unlike other defenses, a success
ful insanity defense may not result in an acquittal but
instead in a special verdict ("not guilty by reason of
insanity") that usu. leads to the defendant's commit
ment to a mental institution. -Also termed insanity
plea. See MCNAGHTEN RULES; SUBSTANTIAL-CAPAC
ITY TEST; IRRESISTIBLE-IMPULSE TEST; DURHAM RULE;
APPRECIATION TEST. [Cases: Criminal Law
Homicide C:::: 817.]
black-rage insanity defense. An insanity defense
based on an African-American's violent eruption of
anger induced at least partly by racial tensions . This
defense was first used in the mid-1990s,
Insanity Defense Reform Act of 1984 test. See APPRE
CIATION TEST.
insanity plea. See INSANITY DEFENSE.
inscriptio (in-skrip-shee-oh), n. [Latin] In later Roman
law, a written accusation detailed in an official register.
 The accuser was liable to punishment if the accused

866 inscription
was acquitted. See INSCRIPTION (3). PI. inscriptiones
(in-skrip-shee-oh-neez). inscribere, vb.
inscription, n. (14c) 1. The act of entering a fact or
name on a list, register, or other record. 2. An entry
so recorded. 3. Civil law. An agreement whereby an
accuser must, ifthe accusation is false, receive the same
punishment that the accused would have been given if
found guilty. -inscribe, vb. inscriptive, adj.
inscriptiones (in-skrip-shee-oh-neez). [Latin] Hist. Title
deeds; written instruments by which rights or interests
are granted.
inscrutable fault. See FAULT.
insecure, adj. (17c) Having a good-faith belief that the
possibility of receiving payment or performance from
another party to a contract is unlikely.
insecurity clause. (1872) A loan-agreement provision
that allows the creditor to demand immediate and full
payment of the loan balance if the creditor has reason
to believe that the debtor is about to default, as when the
debtor suddenly loses a significant source of income.
Cf. ACCELERATION CLAUSE. [Cases: Bills and Notes
129(1); Secured Transactions C=-221.]
in separali (in sep-Cl-ray-h), adv. & adj. [Law Latin] In
several; in severalty.
insert, vb. Parliamentary law. To amend (a motion) by
placing new wording within or around the current
wording. -Some authorities distinguish amendment
by adding, which places new wording after the current
wording, from amendment by inserting. See ADD;
AMENDMENT (3).
inside director. See DIRECTOR.
inside information. Information about a company's
financial or market situation obtained not from public
disclosure, but from a source within the company or
a source that owes the company a duty to keep the
information confidential. Also termed insider infor
mation. See INSIDER TRADING. [Cases: Securities Regu
lation C=-60.28.]
insider. (1848) 1. Securities. A person who has knowl
edge offacts not available to the general public. [Cases:
Securities Regulation C=-60.28.]
temporary insider. A person or firm that receives inside
information in the course ofperforming profeSSional
duties for a client.  Generally, that person or firm is
subject to the same proscriptions as an insider.
2. One who takes part in the control of a corporation,
such as an officer or director, or one who owns 10%
or more of the corporation's stock. 3. Bankruptcy. An
entity or person who is so closely related to a debtor
that any deal between them will not be considered an
arm's-length transaction and will be subject to close
scrutiny. [Cases: BankruptcyC=-2827.]
insider dealing. See INSIDER TRADING.
insider information. See INSIDE INFORMATION.
insider preference. See PREFERENCE.
insider report. See REPORT (1). insider trading. The use of material, non public infor
mation in trading the shares ofa company by a corpo
rate insider or other person who owes a fidUciary duty
to the company . This is the classic definition. The
Supreme Court has also approved a broader definition,
known as the "m isappropriation theory": the deceitful
acquisition and misuse of information that properly
belongs to persons to whom one owes a duty. Thus,
under the misappropriation theory, it is insider trading
for a lawyer to trade in the stock of XYZ Corp. after
learning that a client ofthe lawyer's firm is planning a
takeover ofXYZ. But under the classic definition, that
is not insider trading because the lawyer owed no duty
to XYZ itself. Also termed insider dealing. [Cases:
Securities Regulation (;::::>60.28.]
'''What is insider trading?' The term is probably best defined,
to the extent any definition is adequate, as 'the purchase or
sale of securities on the basis of material, non-pUblic infor
mation.' What counts as 'non-public information'? What
non-pUblic information can be deemed 'material'? When
is a trader who is in possession of material, non-public
information trading 'on the baSis of' that information? Must
the information be about the company whose securities are
being purchased or sold? What characteristics establish
'insider' status sufficient to warrant legal proscriptions of
trading? These are all questions that are derived from the
definition of insider trading just offered ...." C. Edward
Fletcher, Materials on the Law ofInsider Trading 3 (1991).
"A number of different parties may be subject to a variety
of monetary penalties under the federal securities laws
for engaging in illegal insider trading. These parties may
include actual traders, their tippers, as well as broker
dealers and investment advisors (when they fail to take
appropriate steps to prevent the insider trading violation(s)
or fail to maintain and enforce policies and procedures
reasonably designed to prevent the occurrence of such
trading). Measures that may be ordered include (1) requir
ing the subject party to 'disgorge' the iIIgotten profits (or
loss avoided) in an SEC enforcement action, (2) subjecting
individuals to a maximum criminal fine of $1 million and 10
years imprisonment, and (3) in an SEC enforcement action,
within a court's discretion, ordering the subject party to
pay into the U.S. Treasury a treble damage penalty amount
ing to three times the profit gained or loss avoided." Marc
I. Steinberg, Understanding Securities Law 277-78 (2d ed.
1996).
insidiatio viarum (in-sid-ee-ay-shee-oh vI-air-Clm).
[Latin "ambush on the highway"] Rist. The crime of
waylaying someone along the roadway. See LATROCI
NATION; HIGHWAYMAN.
insilium (in-sil-ee-Clm). (Law Latin] Hist. Pernicious
advice or counsel.
in simili materia (in sim-d-II ma-teer-ee-a), adv. & adj.
(Law Latin] Of the same or a similar subject matter.
insimul (in-sim-dl or in-si-mal), adv. [Latin] Together,
jOintly.
insimul computassent (in-sim-Cll or in-si-miJI kahm
pyoo-tas-Clnt). [Law Latin "they accounted together"]
Hist. A count in an assumpsit action asserting that the
parties had reviewed their accounts and that the defen
dant voluntarily agreed to pay the amount sought by
the plaintiff . This term derives from the initial words
ofthe count.

867 inspeximus
insimul tenuit (in-sim-~l or in-si-mCll ten-yoo-it).


peximus
insimul tenuit (in-sim-~l or in-si-mCll ten-yoo-it).
[Law Latin "he held together"] Hist. A writ brought
by a coparcener to recover a fee tail alienated by an
earlier tenant; a type offormedon in the descender. See
formedon in the descender under FORMEDON.
insinuare (in-sin-yoo-air-ee), vb. [Latin] Roman & civil
law. To register; to deposit (an instrument) with a
public registry.
insinuatio (in-sin-yoo-ay-shee-oh). [Law Latin) Hist.
Information or suggestion. This term sometimes
appeared in the phrase ex insinuatione ("on the infor
mation"), which is the precursor to the modern on irifor
mation and belief See INFORMATION AND BELIEF.
insinuation (in-sin-yoo-ay-shCln). Civil law. 1. 'The act of
depositing (an instrument) with a public registry for
recording. 2. A document that evidences a donation
ofproperty.
insinuation of a will. Civil law. The first production of
a will for probate.
insist, vb. (Of a house in a bicameral legislature) to
reaffirm (an amendment) that the other house has
considered but in which it has not concurred, or to
reaffirm nonconcurrence in an amendment from which
the other house has not receded . An insistence often
results in a request for a conference. See CONCUR (4);
CONFERENCE (2); RECEDE. -insistence, n.
"When one house refuses to recede from its amendments,
the bill is not thereby lost, because the house may vote
to insist upon its amendments. A message is sent to the
other house stating that the house has insisted upon its
amendments and is usually accompanied by a request for
conference. When one house insists upon its amendments,
the other house may then insist upon its nonconcurrence
in the amendments and request a conference or recede
from its nonconcurrence and concur in the amendments,
which would constitute a final passage of the bill with the
amendments." National Conference of State legislatures.
Mason's Manual ofLegislative Proceaure  768, at 556-57
(2000).
in solido (in sol-Cl-doh). [Latin "as a whole"] (Of an obli
gation) creating joint and several liability . The term
is used in most civil-law jurisdictions, but no longer in
Louisiana. -Also termed in solidum. See SOLIDARY.
in solidum (in sol-d-ddm). See IN SOLIDO.
in solo (in soh-Ioh), adv. & adj. [Latin] In the soil or
ground.
in solo alieno (in soh-loh ay-Iee-ee-noh or al-ee-), adv.
& adj. [Latin] In another's ground.
in solo proprio (in soh-Ioh proh-pree-oh), adv. & adj.
(Latin] In one's own ground.
in solutum (in sa-Ioo-tdm). [Latin] Hist. In payment.
insolvency, n. (17c) 1. The condition of being unable
to pay debts as they fall due or in the usual course of
business. 2. The inability to pay debts as they mature.
Also termed failure to meet obligations;failing circum
stances. See BANKRUPTCY (2). Cf. SOLVENCY.
balance-sheet insolvency. Insolvency created when
the debtor's liabilities exceed its assets . Under
some state laws, balance-sheet insolvency prevents a corporation from making a distribution to its share
holders. Also termed balance-sheet test.
equity insolvency. Insolvency created when the debtor
cannot meet its obligations as they fall due . Under
most state laws, equity insolvency prevents a corpora
tion from making a distribution to its shareholders.
insolvency law. A statute that provides relief to a debtor
who lacks the means to pay creditors . The term is
sometimes used interchangeably with bankruptcy law
because legislative drafting may not produce a bright
line distinction. Also termed insolvent law. Cf.
BANKRUPTCY LAW (2).
insolvency proceeding. Archaic. A bankruptcy proceed
ing to liquidate or rehabilitate an estate. See BANK
RUPTCY (1).
insolvent, adj. (16c) (Of a debtor) haVing liabilities that
exceed the value ofassets; having stopped paying debts
in the ordinary course of business or being unable to
pay them as they fall due. insolvent, n.
insolvent law. See INSOLVENCY LAW.
in spe (in spee). [Latin] Hist. In hope.
in specie (in spee-shee-ee or spee-shee). [Latin" in kind"]
In the same or like form; IN KIND <the partners were
prepared to return the borrowed items in specie>.
inspectator. Archaic. A prosecutor, adversary, or inspec
tor.
inspectio corporis (in-spek-shee-oh kor-pdr-is). [Latin]
Hist. An inspection of the person. An inspectio
corporis was an actual physical examination, the
performance of which was rarely allowed except in
extreme cases, such as one involVing the concealment
of pregnancy.
inspection. (14c) A careful examination of something,
such as goods (to determine their fitness for purchase)
or items produced in response to a discovery request (to
determine their relevance to a lawsuit). [Cases: Inspec
tion C=>1-7; Sales 168.J
inspection right. (1898) The legal entitlement in certain
circumstances to examine articles or documents, such
as a consumer's right to inspect goods before paying for
them. [Cases: Sales G 168.J
inspection search. See administrative search under
SEARCH.
inspector. (17c) 1. A person authorized to inspect some
thing. 2. A police officer who ranks below a superinten
dent or deputy superintendent, and who is in charge of
several precincts.
inspector general. (often cap.) 1. One of several federal
officials charged with supervising a particular agency's
audits or investigations. 2. A governor-appointed state
official who oversees internal review within executive
agencies to ensure that there is no waste or abuse of
resources.
inspeximus (in-spek-si-mds), vb. [Latin "we have
inspected") Hist. A charter in which the grantor

install 868
confirms an earlier charter. -Inspeximus was the
opening word ofthe charter. Also termed vidimus.
install, vb. (l6c) To induct (a person) into an office or a
rank <the newly elected governor was soon installed
in office>.
installment, n. (18c) A periodic partial payment of a
debt.
installment accounting method. See ACCOUNTING
METHOD.
installment contract. See retail installment contract
under CONTRACT.
installment credit. See CREDIT (4).
installment debt. See DEBT.
installment land contract. See contract for deed under
CONTRACT.
installment loan. See LOAN.
installment note. See NOTE (1).
installment payment. See PAYMENT.
installment plan. See INSTALLMENT SALE.
installment sale. (1893) A conditional sale in which the
buyer makes a down payment followed by periodic
payments and the seller retains title or a security
interest until all payments have been received. Also
termed installment plan; retail installment sale. [Cases:
Sales (;::::>82(4).]
disguised installment sale. Bankruptcy. A debtor's
leasing ploy to try to keep property outside the bank
ruptcy estate, whereby a lease either presents the les
see-debtor with a bargain purchase option or transfers
title to the lessee-debtor at the end of the lease term.
-When such a lease is discovered, the property is
treated as part of the bankruptcy estate, meaning that
to defeat competing creditors, the lessor must have
perfected a security interest. [Cases: Bankruptcy (;::::>
3101; Secured Transactions (::::> 10.]
instance, n. (14c) 1. An example or occurrence <there
were 55 instances of reported auto theft in this small
community last year>. 2. 'Ihe act of instituting legal
proceedings <court offirst instance>. 3. Urgent solici
tation or insistence <she applied for the job at the
instance of her friend>.
instance, vb. (17c) To illustrate by example; to cite
<counsel instanced three cases for the court to
consider>.
instance court. See COURT.
instant, adj. This; the present (case, judgment, order,
etc.); now being discussed <the instant order is not
appealable>.
instantaneous crime. See CRIME.
instantaneous death. See DEATH.
instant case. See case at bar under CASE.
instanter (in-stan-t;}r), adv. (17c) Instantly; at once <the
defendant was ordered to file its motion instanter>.
instant-runoff voting. See VOTING. instar (in-stahr). [Latin] Hist. Likeness; the equivalent of
a thing. -This term appeared in phrases such as instar
omnium ("equivalent or tantamount to all").
in statu quo (in stay-t[yJoo kwoh). [Latin "in the state in
which"] In the same condition as previously <Johnson,
as a minor, can recover the whole of what he paid ifhe
puts the other party in statu quo by returning all the
value received>. -Also termed in statu quo ante. See
STATUS QUO. [Cases: Cancellation ofInstruments
23; Contracts (::::>265.]
instigate, vb. (l6c) To goad or incite (someone) to take
some action or course.
instinct, adj. Archaic. Imbued or charged <the contract
is instinct with an obligation ofgood faith>.
in stirpes (in stdr-peez). See PER STIRPES.
institor (in-sti-tor or -tdr), n. [Latin] Roman law. A
person, often but not always a son or slave, to whom the
transaction of any particular business is committed;
esp., a shopkeeper or other person in charge of a com
mercial business. See actio institoria under ACTIO.
institorial power. See POWER (3).
institute, n. 1. A legal treatise or commentary, such as
Coke's Institutes in four volumes (published in 1628).
2. (cap. &pl.) An elementary treatise on Roman law in
four books. -This treatise is one of the four compo
nent parts of the Corpus Juris Civilis. Also termed
Institutes ofJustinian; Justinian's Institutes. See CORPUS
JURIS CIVILIS. 3. (cap. & pl.) An elementary treatise
written by the Roman jurist Gaius. -The Institutes,
written in the second century A.D., served as a foun
dation for the Institutes ofJustinian. -Also termed
Institutes ofGaius. 4. (cap. & pl.) A paraphrase ofJus
tinian's Institutes written in Greek by Theophilus, a
law professor at Constantinople who helped prepare
the Institutes ofJustinian. -This work was prepared
in the sixth century A.D. -Also termed Paraphrase
of Iheophilus; Institutes of Iheophilus. 5. Civil law. A
person named in a will as heir, but under directions to
pass the estate on to some other specified person (called
the substitute). See SUBSTITUTE (2). 6. An organization
devoted to the study and improvement of the law. See
AMERICAN LAW INSTITUTE.
institute, vb. (14c) To begin or start; commence <insti
tute legal proceedings against the manufacturer>.
instituted heir. See testamentary heir under HEIR.
Institute for Telecommunication Sciences. See
NATIONAL TELECOMMUNICATIONS AND INFORMATION
ADMINISTRATION. Abbr. ITS.
Institute ofMuseum and Library Services. An inde
pendent federal agency that makes grants to support
libraries and museums. -It was established within the
National Foundation on the Arts and the Humanities
in 1996. -Abbr. IMLS. See NATIONAL FOUNDATION
ON THE ARTS AND THE HUMANITIES.
Institutes ofGaius. See INSTITUTE (3).
Institutes ofJustinian. See INSTITUTE (2).

869
Institutes of Theophilus. See INSTITUTE (4).
institutio heredis (in-sti-t[yJoo-shee-oh h<J-ree-dis).
[Latin] Roman law. The naming ofan heir, which was
essential to the validity of a will; specif., the designa
tion in a will of a person as the testator's heir. -Also
termed heredis institutio.
institution. (14c) 1. The commencement ofsomething,
such as a civil or criminal action. 2. An elementary
rule, principle, or practice. 3. An established organi
zation, esp. one ofa public character, such as a facility
for the treatment ofmentally disabled persons. -Also
termed public institution. [Cases: Mental Health
31-37.]4. Civil law. A testator's appointment ofan heir;
the designation of an institute. See INSTITUTE (5). 5.
Eccles. law. The investiture of a cleric with a benefice, by
which the cleric becomes responSible for the spiritual
needs of the members of a parish. Cf. PRESENTATION
(2); ADVOWSON.
institutional broker. See BROKER.
institutional gerrymandering. See GERRYMANDER
ING.
institutional investor. See INVESTOR.
institutionalize, vb. (1865) 1. To place (a person) in
an institution. 2. To give (a rule or practice) official
sanction.
institutional lender. A business, esp. a bank, that rou
tinely makes loans to the general public.
institutional litigant. (18


, esp. a bank, that rou
tinely makes loans to the general public.
institutional litigant. (1858) An organized group that
brings lawsuits not merely to win but also to bring about
a change in the law or to defend an existing law.
"Our second observation relates to what has been called
the 'institutional litigant.' There are organized groups,
such as labour unions or trade associations, that have a
continuing interest in the development of the common law.
A group of this sort may take a case to litigation, not so
much for the sake of a determination of the case itself,
but for the purpose of bringing about a change in the law
or of defending an existing rule against a change sought
by some other group. When such groups are involved, the
usual arguments against prospective changes in the law
through judicial decisions lose much of their force. Indeed,
when the litigants have this sort of long-term interest, a
judicial proceeding may take on, with the assent of all
involved, something of the nature of a legislative hearing."
Lon L. Fuller, Anatomy ofthe Law 163 (1968).
institutional market. See MARKET.
institutiones (in-sti-t[y]oo-shee-oh-neez), n. [Latin]
Roman law. Elementary works of law; institutes. See
I:-<STITUTE_
instruct, vb. See JURY CHARGE (3).
instruct down. Missouri law. (Of a court) to give jurors
an instruction on a lesser included offense . A court
must instruct down only if the jury could find the
defendant not guilty of the higher offense but guilty
ofthe lesser one.
instructed delegate. See DELEGATE.
instructed verdict. See directed verdict under VERDICT.
instruction. See JURY INSTRUCTION. instrument
instructional text. Copyright. A literary, graphic, or pic
torial work deSigned and prepared for use in ordinary
teaching activities. See 17 USCA  101.
instruction directive. A document that contains specific
directions concerning the declarant's wishes for health
care decisions. Cf. ADVANCE DIRECTIVE; LIVING WILL;
PROXY DIRECTIVE.
instrument. (I5c) 1. A written legal document that
defines rights, duties, entitlements, or liabilities, such
as a contract, will, promissory note, or share certifi
cate. -Also termed legal instrument.
"An 'instrument' seems to embrace contracts, deeds,
statutes, wills, Orders in CounCil, orders, warrants,
schemes, letters patent, rules, regulations, bye-laws,
whether in writing or in print, or partly in both; in fact,
any written or printed document that may have to be inter
preted by the Courts." Edward Seal, Cardinal Rules ofLegal
Interpretation 55 (A.E. Randall ed., 3d ed. 1924).
statutory instrument. See STATUTORY INSTRUMENT.
testamentary instrument. See WILL.
2. Commercial law. An unconditional promise or
order to pay a fixed amount of money, with or without
interest or other fixed charges described in the promise
or order. -Under the UCC, a promise or order must
meet several other specifically listed requirements to
qualify as an instrument. UCC  3-104(a). See NEGO
TIABLE INSTRUMENT. 3. A means by which something
is achieved, performed, or furthered <an instrument
of social equality>.
inchoate instrument. (1834) An unrecorded instru
ment that must, by law, be recorded to serve as effec
tive notice to third parties . Until the instrument is
recorded, it is effective only between the parties to
the instrument.
incomplete instrument. (1822) A paper that, although
intended to be a negotiable instrument, lacks an
essential element . An incomplete instrument may
be enforced if it is subsequently completed. UCC
3-115. [Cases: Bills and Notes <::=> 144.]
indispensable instrument. The formal written evidence
ofan interest in intangibles, so necessary to repre
sent the intangible that the enjoyment, transfer, or
enforcement of the intangible depends on possession
ofthe instrument.
perfect instrument. (I8c) An instrument (such as a
deed or mortgage) that is executed and filed with a
public registry.
sealed instrument. At common law and under some
statutes, an instrument to which the bound party has
affixed a personal seal, usu. recognized as providing
indisputable evidence ofthe validity ofthe underlying
obligations. Many states have abolished the com
mon-law distinction between sealed and unsealed
instruments.lbe UCC provides that the laws appli
cable to sealed instruments do not apply to negotiable
instruments or contracts for the sale ofgoods. UCC
 2-203. Cf. contract under seal under CONTRACT.
[Cases: Contracts Seals <::=> 1.]

870 instrumental crime
"At common law, the seal served to render documents
indisputable as to the terms of the underlying obligation,
thereby dispensing with the necessity of witnesses; the
sealed instrument was considered such reliable evidence
that it actually became the contract itself -called a 'spe
cialty' -the loss of which meant loss of all rights of the
obligee against the obligor. The seal also had many other
consequences at common law, some of which have been
retained in jurisdictions which still recognize the seal ....
In states where the seal is still recognized, its primary legal
significance is often the application of a longer statute of
limitations to actions on sealed instruments." 69 Am. Jur.
2d Seals  2, at 617-18 (1993).
instrumental crime. See CRIME.
instrumentality, n. 1. A thing used to achieve an end
or purpose. 2. A means or agency through which a
function of another entity is accomplished, such as a
branch of a governing body.
instrumentality rule. The principle that a corporation
is treated as a subsidiary if it is controlled to a great
extent by another corporation. -Also termed instru
mentality theory.
instrumenta noviter reperta (in-str;)-men-t;) noh-v;)-t;)r
ri-p;)r-t;)). [Law Latin] Hist. Instruments newly discov
ered. See EX INSTRUMENTIS DE NOVO REPERTIS.
instrument ofaccession. Int'llaw. A document formally
acknowledging the issuing state's consent to an existing
treaty, and exchanged with the treaty parties or depos
ited with a designated state or international organiza
tion. See ACCESSION (3).
instrument of appeal. Hist. English law. A document
used to appeal a judgment ofdivorce rendered by a trial
judge of the Probate, Divorce and Admiralty Division
to the full panel of the court. The use of the instru
ment ofappeal ended in 1881, when appeals were taken
to the Court ofAppeal rather than the full panel ofthe
Probate, Divorce and Admiralty Division.
instrument ofcrime. See CRIMINAL INSTRUMENT.
instrument of ratification. Int'llaw. A document
formally acknowledging the issuing state's confir
mation and acceptance of a treaty, and exchanged by
the treaty parties or deposited with a deSignated state
or international organization. See RATIFICATION (4).
[Cases: Treaties (::::e3.]
instrumentum (in-stroo-men-t;)m). [Latin] Hist. A
document, deed, or instrument; esp., a document that
is not under seal, such as a court roll.
insubordination. (I8c) 1. A willful disregard of an
employer's instructions, esp. behavior that gives the
employer cause to terminate a worker's employment.
[Cases: Labor and Employment (::::e766.] 2. An act of
disobedience to proper authority; esp., a refusal to obey
an order that a superior officer is authorized to give.
in subsidium (in s;)b-sid-ee-;)m). [Latin] Hist. In aid of.
insufficient evidence. See EVIDENCE.
insufficient funds. See NOT SUFFICIENT FUNDS.
insula (in-s[y];)-l;)), n. [Latin] Roman law. 1. An island.
2. A detached house or block of apartments leased to
tenants. insular, adj. (I7c) 1. Of, relating to, from, or constituting
an island <insular origin>. 2. Isolated from, uninter
ested in, or ignorant of things outside a limited scope
<insular viewpoint>.
insular area. A territory or commonwealth . This
phrase is used by some writers to denote the genus
of which the terms territory and commonwealth are
species. See COMMONWEALTH (2); TERRITORY (1).
insular court. See COURT.
insular possession. See POSSESSION.
in suo (in s[y]oo-oh). [Latin] Hist. In reference to one's
own affairs.
in suo genere (in s[y]oo-oh jen-;)r-ee). [Latin] Hist. Of
their own kind. The phrase usu. referred to certain
writings that were binding even though they lacked the
formal requirements.
in suo ordine (in s[y]oo-oh or-d;)-nee). [Latin] Hist. In
his order.
"In suo ordine .... A cautioner who is entitled to the
benefit of discussion can only be called upon, for fulfilment
of the obligation which he guaranteed, in his order -that
is, after the principal creditor has been discussed. So,
also, an heir can only be made liable for the moveable
debts of his ancestor, after the executor who succeeded
to the moveable estate has been discussed, and where
the moveable estate has proved insufficient to meet those
debts." John Trayner, TrayneY's Latin Maxims 277 (4th ed.
1894).
insurable, adj. Able to be insured <an insurable risk>.
insurability, n.
insurable interest. See INTEREST (2).
insurable value. The worth of the subject ofan insurance
contract, usu. expressed as a monetary amount. [Cases:
Insurance (::::e2171.]
insurance. (17c) 1. A contract by which one party (the
insurer) undertakes to indemnify another party (the
insured) against risk ofloss, damage, or liability arising
from the occurrence of some specified contingency,
and usu. to defend the insured or to pay for a defense
regardless of whether the insured is ultimately found
liable. An insured party usu. pays a premium to the
insurer in exchange for the insurer's assumption ofthe
insured's risk. Although indemnification provisions
are most common in insurance policies, parties to any
type of contract may agree on indemnification arrange
ments. [Cases: Insurance (::::e 1001.] 2. The amount for
which someone or something is covered by such an
agreement. -insure, vb.
"Insurance, or as it is sometimes called, assurance, is a
contract by which one party, for a conSideration, which
is usually paid in money either in one sum or at different
times during the continuance of the risk, promises to make
a certain payment of money upon the destruction or injury
of something in which the other party has an interest. In
fire insurance and in marine insurance the thing insured is
property; in life or accident insurance it is the life or health
of the person." 1 George J. Couch, Couch on Insurance
1.2, at 4-5 (2d ed. 1984).
accident and health insurance. See health insurance.

871
accident insurance. Insurance that indemnifies against
bodily injury caused by an accident.  Covered losses
may include expenses, time, suffering, or death. Cf. :
casualty insurance. [Cases: Insurance C=1012.]
accounts-receivable insurance. 1. Insurance against
losses resulting from the insured's inability to collect
outstanding accounts receivable because ofdamage to
or destruction ofrecords. 2. See credit insurance.
additional insurance. Insurance added to an existing
policy.
all-risk insurance. Insurance that covers every kind of
insurable loss except what is specifically excluded.
annuity insurance. An agreement to pay the insured
(or annuitant) for a stated period or for life. [Cases:
Annuities
assessable insurance. 1. Insurance in which the insured
is liable for additional premiums ifa loss is unusually
large. 2. See assessable policy (1) under INSURANCE
POLICY.
assessment insurance. A type of mutual insurance
in which the policyholders are assessed as losses are
incurred; a policy in which payments to an insured
are not unalterably fixed, but are dependent on the
collection ofassessments necessary to pay the amount
insured.
automobile insurance. An agreement to indemnify
against one or more kinds ofloss associated with the
use of an automobile, including damage to a vehicle
and liability for personal injury. [Cases: Insurance
C=10l5.]
aviation insurance. Insurance that protects the insured
against a loss connected with the use of an aircraft.
 This type of insurance can be written to cover a
variety of risks, including bodily injury, property
damage, and hangarkeepers' liability. [Cases: Insur
ance C=2329.]
broad-form insurance. (1959) Comprehensive insur
ance. This type of insurance usu. takes the form
of an endorsement to a liability or property policy,
broadening the coverage that is typically available.
bumbershoot insurance. 1. Marine insurance that
provides broad coverage for ocean marine risks. 2.
See umbrella insurance .  This term derives from
the British slang tecm for umbrella. The term applies
esp. to a policy insured through the London insur
ance market. See umbrella policy under INSURANCE
POLICY.
burial insurance. Insurance that pays for the holder's
burial and funeral expenses.
business-interruption insurance. An agreement to
protect against one or more kinds of loss from the
interruption ofan ongoing business, such as a loss of
profits while the business is shut down to repair fire
damage. [C


ruption ofan ongoing business, such as a loss of
profits while the business is shut down to repair fire
damage. [Cases: Insurance G=::>2163, 2179.]
business-partner insurance. See partnership insur
ance. insurance
captive insurance. 1. Insurance that provides coverage
for the group or business that established it. [Cases:
Insurance G-:::: lIn.] 2. Insurance that a subsidiary
prOVides to its parent company, usu. so that the parent
company can deduct the premiums set aside as loss
reserves.
cargo insurance. An agreement to pay for damage to
freight damaged in transit. [Cases: Insurance C=
2137(3),2217.]
casualty insurance. An agreement to indemnify against
loss resulting from a broad group of causes such as
legal liability, theft, accident, property damage, and
workers' compensation . 'Ihe meaning ofcasualty
insurance has become blurred because of the rapid
increase in different types of insurance coverage.
Cf. accident insurance. [Cases: Insurance 1008;
Workers' Compensation C=1061.]
coinsurance. (1889) 1. Insurance provided jointly by
two or more insurers. 2. Insurance under which the
insurer and insured jointly bear responsibility . An
example is commercial insurance under which only
a portion of a property's value is covered, and the
property owner assumes liability for any loss in excess
ofthe policy limits. [Cases: Insurance G=::>2170.J
collision insurance. (1921) Automobile insurance that
covers damage to the insured's vehicle resulting from
a rollover or collision with any object, but does not
cover a personal injury or damage to other property.
[Cases: Insurance G=::> 2704.]
commercial insurance. 1. An indemnity agreement in
the form of a deed or bond to protect against a loss
caused by a party's breach of contract. 2. A form of
coverage that allows an insurer to adjust the premium
rates at will, and doesn't require the insured to accept
the premium or renew the coverage from period to
period.
"Commercial insurance is a popular and very elastic term,
having reference to indemnity agreements issued in the
form of an insurance bond or policy, whereby parties to
commercial contracts are, to a deSignated extent, guar
anteed against loss by reason of a breach of contractual
obligations on the part of the other contracting party. To
this class belong poliCies of 'contract,' 'credit,' and 'title'
insurances." Thomas Gold Frost, A Treatise on Guaranty
Insurance  3, at 14 (2d ed. 1909).
comprehensive general-liability insurance. Insurance
that broadly covers an insured's liability exposure,
including product liability, contractual liability, and
premises liability. -Abbr. CGL insurance.
comprehensive insurance. (1924) Insurance that
combines coverage against many kinds oflosses that
may also be insured separately . This is commonly
used, for example, in an automobile-insurance
policy.
compulsory insurance. (1887) Statutorily required
insurance; esp., motor-vehicle liability insurance that
a state requires as a condition to register the vehicle.
[Cases: Automobiles G=::>43.]

insurance 872
convertible collision insurance. Collision insurance
that carries a low premium until a claim is made
against the policy.
convertible insurance. (1926) Insurance that can be
changed to another form without further evidence
ofinsurability, usu. referring to a term-life-insurance
policy that can be changed to permanent insurance
without a medical examination. [Cases: Insurance
C:=-1908-1911.]
credit insurance. An agreement to indemnify against
loss that may result from the death, disability, or
insolvency of someone to whom credit is extended.
 A debtor typically purchases this type ofinsurance
to ensure the repayment of the loan. -Also termed
accounts-receivable insurance.
credit life insurance. See LIFE INSURANCE.
crime insurance. Insurance covering losses occasioned
by a crime committed by someone other than the
insured.
crop insurance. Insurance that protects against loss to
growing crops from natural perils such as hail and
fire. [Cases: Insurance <::-'""""::'2203-2208.]
D&O insurance. See directors' and officers' liability
insurance.
decreasing term insurance. Insurance that declines in
value during the term; esp., life insurance that lessens
in value to zero by the end ofthe term.
deposit insurance. (1933) A federally sponsored indem
nification program to protect depositors against the
loss oftheir money, up to a specified maximum, ifthe
bank or savings-and-loan association fails or defaults.
[Cases: Banks and Banking C:=-506.]
directors and officers' liability insurance. An agree
ment to indemnify corporate directors and officers
against judgments, settlements, and fines arising
from negligence suits, shareholder actions, and other
business-related suits. -Often shortened to D&O
liability insurance; D&O insurance. [Cases: Insurance
C:=-2377.]
disability insurance. Coverage purchased to protect
a person from a loss of income during a period of
incapacity for work. See general-disability insurance;
occupational-disability insurance. [Cases: Insurance
C:=-1012, 2534-2579.]
double insurance. (l8c) Insurance coverage by more
than one insurer for the same interest and for the
same insured. Except with life insurance, the
insured is entitled to only a single indemnity from
a loss, and to recover this, the insured may either (1)
sue each insurer for its share of the loss, or (2) sue one
or more ofthe insurers for the entire amount, leaving
any paying insurers to recover from the others their
respective shares of the loss.
dread-disease insurance. Health insurance that covers
medical expenses arising from the treatment of any
of several specified diseases. e-commerce insurance. Insurance that covers a busi
ness's computer-related damages and losses caused
by computer hackers and Internet viruses . Covered
damages usu. include physical destruction or harm to
computer circuitry, loss of access, loss of use, loss of
functionality, and business interruption.
employers'-liability insurance. 1. An agreement
to indemnify an employer against an employee's
claim not covered under the workers' -compensation
system. 2. An agreement to indemnify against liabil
ity imposed on an employer for an employee's neg
ligence that injures a third party. [Cases: Insurance
C:=-2317.]
employment-practices liability insurance. Insurance
that provides coverage for claims arising from an
insured's injury-causing employment practice, such
as discrimination, defamation, or sexual harass
ment. -Abbr. EPL insurance.
endowment insurance. A type oflife insurance that is
payable either to the insured at the end of the policy
period or to the insured's beneficiary if the insured
dies before the period ends. See endowment life insur
ance under LIFE INSURANCE.
errors-and-omissions insurance. An agreement to
indemnify for loss sustained because ofa mistake or
oversight by the insured -though not for loss due to
the insured's intentional wrongdoing . For example,
lawyers often carry this insurance as part oftheir mal
practice coverage to protect them in suits for damages
resulting from inadvertent mistakes (such as missing
a procedural deadline). While this insurance does not
cover the insured's intentional wrongdoing, it may
cover an employee's intentional, but unauthorized,
wrongdoing. -Often shortened to E&O insurance.
[Cases: Insurance C:=-2383.]
excess insurance. (1916) An agreement to indemnify
against any loss that exceeds the amount ofcoverage
under another policy. -Also termed excess policy.
Cf. primary insurance. See EXCESS CLAUSE. [Cases:
Insurance C:=-2110, 2394.]
excess-lines insurance. See surplus-lines insurance.
extended insurance. Insurance that continues in force
beyond the date that the last premium was paid by
drawing on its cash value.
extended-term insurance. (1925) Insurance that
remains in effect after a default in paying premiums,
as long as the policy has cash value to pay premiums.
 Many life-insurance policies provide this feature to
protect against forfeiture of the policy if the insured
falls behind in premium payments.
family-income insurance. An agreement to pay benefits
for a stated period following the death ofthe insured.
 At the end of the payment period, the face value is
paid to the designated beneficiary.
fidelity insurance. An agreement to indemnify an
employer against a loss arising from the lack ofinteg
rity or honesty ofan employee or ofa person holding a

873 insurance
position oftrust, such as a loss from embezzlement.
Also termed fidelity guaranty insurance; fidelity and
guaranty insurance; surety and fidelity insurarlce.
[Cases: Insurance 0:::> 1014.]
fire insurance. An agreement to indemnify against
property damage caused by fire, wind, rain, or other
similar disaster. [Cases: Insurance Cr~1009.)
first-party insurance. (1953) A policy that applies to
an insured or the insured's own property, such as life
insurance, health insurance, disability insurance, and
fire insurance. Also termed indemnity insurance;
self-insurance.
fleet insurance. Insurance that covers a number of
vehicles owned by the same entity.
floater insurance. An agreement to indemnify against
a loss sustained to movable property, wherever its
location within the territorial limit set by the policy.
flood insurance. Insurance that indemnifies against
a loss caused by a flood . This type of insurance is
often sold privately but subsidized by the federal gov
ernment. [Cases: Insurance 0:::>2209-2213.]
fraternal insurance. Life or health insurance issued by
a fraternal benefit society to its members.
general-disability insurance. Disability insurance that
provides benefits to a person who cannot perform any
job that the person is qualified for. Also termed
total-disability insurance. Cf. occupational-disability
insurance. [Cases: Insurance C=2561.]
government insurance. Life insurance underwritten
by the federal government to military personnel,
veterans, and government employees.
group insurance. A form of insurance offered to
a member of a group, such as the employees of a
business, as long as that person remains a member of
the group . Group insurance is typically health or
life (usu. term life) insurance issued under a master
policy between the insurer and the employer, who
usu. pays all or part of the premium for the insured
person. Other groups, such as unions and associa
tions, often offer group insurance to their members.
"'Group Insurance' refers to a method of marketing
standard forms of insurance, such as life insurance,
whereby a master policy is issued to the party negotiating
the contract with the insurer (frequently an employer), and
certificates of partici pation are issued to the individual
insured members of the group (frequently employees)."
John F. Dobbyn, Insurance Law in a Nutshell 13 (2d ed.
1989).
guaranty insurance (gar-,:m-tee). An agreement to
cover a loss resulting from another's default, insol
vency, or specified misconduct. Also termed surety
insurance. [Cases: Insurance ~-::>1014.]
"The term 'guaranty insurance' is generic in its scope and
Signification, and embraces within it those subsidiary
species of insurance contracts known as 'fidelity,' 'com
merCial,' and 'judicial' insurances .... In legal acceptation
guaranty insurance is an agreement whereby one party
(called the 'insurer') for a valuable consideration (termed
the 'premium') agrees to indemnify another (called the
'insured') in a stipulated amount against loss or damage arising through dishonesty, fraud, unfaithful perfor
mance of duty or breach of contract on the part of a third
person ... sustaining a contractual relationship to the
party thus indemnified." Thomas Gold Frost, A Treatise on
Guaranty Insurance  1, at 11 (2d ed. 1909).
health insurance. Insurance covering medical expenses
resulting from sickness or injury. -Also termed
accident and health insurance; sickness and accident
insurance. [Cases: Insurance <>1012.)
homeowner's insurance. Insurance that covers both
damage to the insured's residence and liability claims
made against the insured (esp. those arising from the
insured's negligence).
indemnity insurance. See first-party insurance.
industrial life insurance. See LIFE INSURANCE.
inland marine insurance. An agreement to indemnify
against losses arising from the transport of goods on
domestic waters (Le., rivers, canals, and lakes). Cf.
ocean marine insurance.
insurance ofthe person. Insurance intended to protect
the person, such as life, accident, and disability insur
ance.
interinsurance. See reciprocal insurance.
joint life insurance. See LIFE INSURA.NCE.
judicial insurance. Insurance intended to protect liti
gants and others involved in the court system.
"By judicial insurance reference is had to insurance bonds
or policies issued, in connection with the regular course
ofjudicial or administrative procedure


judicial insurance reference is had to insurance bonds
or policies issued, in connection with the regular course
ofjudicial or administrative procedure, for the purpose
of securing the faithful performance of duty on the part
of court appointees, to guarantee due compliance with
the terms of undertakings entered into by parties litigant
before the courts, and to secure proper administration of
statute law." Thomas Gold Frost, A Treatise on Guaranty
Insurance  3, at 14 (2d ed. 1909).
key-employee insurance. See key-employee life insur
ance under LIfE INSURANCE.
last-survivor insurance. See last-survivor life insurance
under LIFE INSURANCE.
lease insurance. An agreement to indemnify a lease
holder for the loss of a favorable lease terminated by
damage to the property from a peril covered by the
policy. The amount payable is the difference between
the rent and the actual rental value of the property,
multiplied by the remaining term ofthe lease.
level-premium insurance. Insurance whose premiums
remain constant throughout the life of the agreement.
 Most whole life policies are set up this way.
liability insurance. An agreement to cover a loss result
ing from the insured's liability to a third party, such
as a loss incurred by a driver who injures a pedes
trian. The insured's claim under the policy arises
once the insured's liability to a third party has been
asserted. Also termed third-party insurance; pub
lic-liability insurance. [Cases: Insurance 0:::> 1010.]
life insurance. See LIFE INSURANCE.
limited-policy insurance. Insurance that covers only
specified perils; esp., health insurance that covers a

insurance 874
specific type ofillness (such as dread-disease insur
ance) or a risk relating to a stated activity (such as
travel-accident insurance).
Lloyd's insurance. (1897) Insurance provided by
insurers as individuals, rather than as a corporation.
 The insurers' liability is several but not joint. Most
states either prohibit or strictly regulate this type of
insurance. See LLOYD'S OF LONDON. [Cases: Insur
ance 1220.]
loss insurance. Insurance purchased by a person who
may suffer a loss at the hands ofanother. This is the
converse of liability insurance, which is purchased by
potential defendants.
malpractice insurance (mal-prak-tis). (1943) An
agreement to indemnify a professional person, such
as a doctor or lawyer, against negligence claims. See
errors-and-omissions itlSurance. [Cases: Insurance
"Most contemporary lawyers regard malpractice insurance
as an expensive, but essential, part of law practice. Its cost,
along with other costs of the lawyer's trade, is ultimately
borne by the consumer, the client who pays the lawyer's
fees.. , . Neither the ABA Code nor the ABA Model Rules
impose an ethical obligation to carry adequate malprac
tice insurance. But contemporary lawyers have found it
prudent to do so, both to protect their personal assets
and to promote their public image as reliable professionals
who are financially responsible." Mortimer D. Schwartz &
Richard C. Wydick, Problems in Legal Ethics 127-28 (2d
ed,1988).
manual-rating insurance. A type of insurance whereby
the premium is set using a book that classifies certain
risks on a general basis, rather than evaluating each
individual case.
marine insurance. An agreement to indemnify against
injury to a ship, cargo, or profits involved in a certain
voyage or for a specific vessel during a fixed period, or
to protect other marine interests. [Cases: Insurance
(::::'2214-2256.]
medigap insurance. See MEDIGAP INSURANCE.
mortgage insurance. 1. An agreement to payoff a
mortgage if the insured dies or becomes disabled.
[Cases: Insurance C=:c2405; Mortgages C=:c20L] 2. An
agreement to provide money to the lender ifthe mort
gagor defaults on the mortgage payments. -Also
termed private mortgage insurance (abbr. PMI).
mutual insurance. A system of insurance (esp. life
insurance) whereby the policyholders become
members of the insurance company, each paying
premiums into a common fund from which each can
draw in the event of a loss.
national-service life insurance. See LIFE INSURANCE.
no-fault auto insurance. An agreement to indemnify
for a loss due to personal injury or property damage
arising from the use of an automobile, regardless
of who caused the accident. [Cases: Insurance
2817-2856,] nonassessable insurance. Insurance in which the
premium is set and the insurer is barred from
demanding additional payments from the insured.
occupational-disability insurance. Disability insur
ance that provides benefits to a person who cannot
perform his or her regular job. [Cases: Insurance C=:c
2561(2).]
occurrence-based liability insurance. Insurance that
covers bodily injuries or property damage suffered
during the policy period . Each instance of injury
or damage is an "occurrence" that may trigger an
insured's entitlement to benefits. The terms ofoccur
rence-based liability insurance policies are usu. broad,
limited only by specific exclusions. Also termed
accident-based insurance. [Cases: Insurance (,,2264,
2265.]
ocean marine insurance. Insurance that covers risks
arising from the transport of goods by sea. Cf.
inland marine itlSurance. [Cases: Insurance
2214-2256.]
old-age and survivors' insurance. See OLD-AGE AND
SURVIVORS' INSURANCE.
ordinary insurance. See ordinary life insurance under
LIFE INSURANCE,
ordinary life insurance. See LIFE INSURANCE.
overinsurance. See OVERINSURANCE.
paid-up insurance. (1871) Insurance that remains in
effect even though no more premiums are due.
participating insurance. A of insurance that
allows a policyholder to dividends. This
insurance is invariably issued by a mutual company.
partnership insurance. 1. Life insurance on the life of a
partner, purchased to ensure the remaining partners'
ability to buyout a deceased partner's interest. Also
termed partnership life insurance. 2. Health insurance
for a partner, payable to the partnership to allow it
to continue to operate while the partner is unable to
work due to illness or injury. Also termed (in both
senses) business-partner insurance.
patent insurance (pat-ant). 1. Insurance against
loss from an infringement of the insured's patent.
2. Insurance against a claim that the insured has
infringed another's patent. 3. Insurance that funds a
claim against a third party for infringing the insured's
patent.
port-risk insurance. Insurance on a vessel lying in port.
Cf. time insurance; voyage insurance.
primary insurance. Insurance that attaches immedi
ately on the happening ofa loss; insurance that is not
contingent on the exhaustion ofan underlying policy.
Cf. excess insurance. [Cases: Insurance C=:c,2110.]
private mortgage insurance. See mortgage insurance.
products-liability insurance. An agreement to indem
nify a manufacturer, supplier, or retailer for a loss
arising from the insured's liability to a user who is

875
harmed by any product manufactured or sold by the
insured. (Cases: Insurance 0::>2296, 2359.]
profit insurance. Insurance that reimburses the insured
for profits lost because of a specified peril.
property insurance. An agreement to indemnify
against property damage or destruction. Also
termed property-damage insurance. [Cases: Insur
ance (;:::> 1009.]
public-liability insurance. See liability insurance.
reciprocal insurance. A system whereby several indi
viduals or businesses act through an agent to under
write one another's risks, making each insured an
insurer of the other members of the group. -Also
termed interinsurance. [Cases: Insurance (;:::>1204.]
reinsurance. See REINSURANCE.
renewable term insurance. Insurance that the insured
may continue at the end of a term. but generally at a
higher premium. -The insured usu. has the right to
renew for additional terms without a medical exami
nation.
replacement insurance. (1938) Insurance under which
the value of the loss is measured by the current cost of
replacing the insured property. See replacement cost
under COST. [Cases: Insurance (;:::>2172, 2184.]
retirement-income insurance. An agreement whereby
the insurance company agrees to pay an annuity
beginning at a certain age if the insured survives
beyond that age, or the value of the policy if the
insured dies before reaching that age.
self-insurance. A plan under which a business main
tains its own special fund to cover any loss. -Unlike
other forms ofinsurance, there is no contract with an
insurance company. Also termed first-party insur
ance. [Cases: Insurance (;:::> 1004.]
sickness and accident insurance. See health insur
ance.
single-premium insurance. See single-premium life
insurance under LIFE INSURANCE.
social insurance. Insurance provided by a government
to persons facing particular perils (such as unemploy
ment or disability) or to persons who have a certain
status (such as the elderly or the blind). -Social insur
ance such as that created by the Social Security Act
of1935 is usu. part of a government's broader social
policy. See WELFARE STATE. [Cases: Social Security
and Public Welfare (;:::> 121-149.5,174-182; Unem
ployment Compensation (;:::> 1.]
split-dollar insurance. See split-dollar life insurance
under LIFE INSURANCE.
step-rate-premium insurance. Insurance whose
premiums increase at times specified in the policy.
stop-loss insurance. Insurance that protects a self
insured employer from catastrophic losses or
unusually large health costs of covered employees.
 Stop-loss insurance essentially provides excess
coverage for a self-insured employer. The employer insurance
and the insurance carrier agree to the amount the
employer will cover. and the stop-loss insurance will
cover claims exceeding that amount. [Cases: Insur
ance ~-::>2523, 2525(1).]
straight life insurance. See whole life insurance under
LIFE INSURANCE.
surety andfidelity insurance. See fidelity insurance.
surety insurance. See guaranty insurance.
surplus-lines insurance. Insurance with an insurer that
is not licensed to transact business within the state
where the risk is located. -Also termed excess-lines
insurance. [Cases: Insurance (;::::c 1330.]
term life insurance. See LIFE INSURANCE.
terrorism insurance. Insurance that indemnifies
against losses sustained because of an act of terror
ism. Terrorism insurance has been available since
the 1970s; it was (and is) required for U.S. airports of
almost all sizes. In the mid-1980s, terrorism insur
ance was offered to indiViduals, originally as a form
of travel insurance that provided compensation for
terrorism-related cancellations or changes in itin
erary when traveling to or in certain countries. See
TERRORISM.
third-party insurance. See liability insurance.
time insurance.1l1arine insurance. Insurance covering
the insured for a specified period. Cf. voyage insur
ance.
title insurance. (1889) An agreement to indemnify
against loss arising from a defect in title to real
property, usu. issued to the buyer of the property by
the title company that conducted the title search. Cf.
GUARANTEE OF TITLE. [Cases: Insurance (;:::> 1013.]
''Title insurance is normally written by specialized com
panies that maintain tract indexes: companies involved
in writing life or casualty usually are not involved in title
insurance. Title insurance is an unusual type of insur
ance in a few respects. For one thing, it is not a recurring
policy: There is only a single premium, and a title insurance
policy written on behalf of an owner theoretically remains
outstanding forever to protect him or her from claims
asserted by others. It is more similar to an indemnifica
tion agreement than to an insurance policy. For another,
title insurance companies generally do not take risks that
they know about. Ifthe title search shows that a risk exists,
the company will exclude that risk from the coverage of
the policy."" Robert W. Hamilton, Fundamentals of Modern
Business 84 (1989).
total-disability insurance. See general-disability insur
ance.
travel-accident insurance. Health insurance limited
to injuries sustained while traveling.
umbrella insurance. Insurance that is supplemental,
providing coverage that exceeds the basic or usual
limits ofliability. Also termed bumbershoot insur
ance. [Cases: Insurance (;:::>2110,2394.]
underinsurance. See UNDERINSURANCE.
unemployment insurance. (1897) A type of social
insurance that pays money to workers who are unem
ployed for reasons unrelated to job performance .

876 insurance adjuster
Individual states administer unemployment insur
ance, which is funded by payroll taxes. Also termed
unemployment compensation. lCases: Taxation
3260; Unemployment Compensation 40,60.]
universal life insurance. See LIFE INSURANCE.
variable life insurance. See LIFE INSURANCE.


universal life insurance. See LIFE INSURANCE.
variable life insurance. See LIFE INSURANCE.
valuable-papers insurance. Insurance covering the
cost of research, labor, and materials necessary to
reconstruct damaged or lost documents and records
-written, printed, or otherwise inscribed includ
ing books, maps, manuscripts, legal documents,
drawings, and films . This insurance does not cover
cash or securities. [Cases: Insurance
voyage insurance. Marine insurance. Insurance
covering the insured between destinations. Cf. time
insurance.
war-risk insurance. 1. Insurance covering damage
caused by war. _ Ocean marine policies are often
written to cover this type of risk. [Cases: Insur
ance 0=2159, 2223.J 2. Life and accident insurance
provided by the federal government to members of
the armed forces . This type of insurance is offered
because the hazardous nature of military service often
prevents military personnel from obtaining private
insurance. [Cases: Armed Services
whole life insurance. See LIFE INSURANCE.
insurance adjuster. (1934) A person who determines
the value of a loss to the insured and settles the claim
against the insurer. -Also termed claims adjuster. See
ADJUSTER. [Cases: Insurance
insurance agent. (1866) A person authorized by an
insurance company to sell its insurance policies.
Also termed producer; (in property insurance) record
ing agent; record agent. [Cases: Insurance G=>1604.J
general agent. An agent with the general power of
making insurance contracts on behalf of an insurer.
[Cases: Insurance G=> 1634(2).J
special agent. An agent whose powers are usu. confined
to soliciting applications for insurance, taking initial
premiums, and delivering policies when issued.
Also termed local agent; solicitor. [Cases: Insurance
G=> 1634(2).J
insurance broker. See BROKER.
insurance certificate. (1865) 1. A document issued by
an insurer as evidence ofinsurance or membership in
an insurance or pension plan. 2. A document issued by
an insurer to a shipper as evidence that a shipment of
goods is covered by a marine insurance policy.
insurance commissioner. (1889) A public official who
supervises the insurance business conducted in a state.
[Cases: Insurance C=) 1029.]
insurance company. (18c) A corporation or association
that issues insurance policies. [Cases: Insurance
1003.J
captive insurance company. A company that insures
the liabilities of its owner . The insured is usu. the sole shareholder and the only customer ofthe captive
insurer. -Also termed captive insurer. [Cases: Insur
ance G=> 1192.J
mixed insurance company. An insurance company
having characteristics of both stock and mutual
companies in that it distributes part of the profits
to stockholders and also makes distributions to the
insureds.
mutual insurance company. An insurance company
whose policyholders are both insurers and insureds
because they pay premiums into a common fund,
from which claims are paid; an insurer whose policy
holders are its owners, as opposed to a stock insurance
company owned by outside shareholders. Cf. stock
insurance company. [Cases: Insurance G':::J 1121.]
"Mutual insurance companies are organized by a number
of persons for the purpose of transacting some particular
insurance business .... A company is a mutual one when
the persons constituting the company contribute either
cash or assessable premium notes, or both, to a common
fund, out of which each is entitled to indemnity in case of
loss. The distinguishing feature is mutuality, evidenced
by the cooperation of members, uniting for that purpose,
each taking a proportionate part in the management of its
affairs and being at once insurer and insured. contributing
to a fund from which all losses are paid .... Democratic
ownership and control is a fundamental characteristic of a
mutual insurance company." 18John Alan Appleman, Insur
ance Law and Practice  10041, at 79-80 (1945).
stock insurance company. An insurance company
operated as a private corporation and owned by
stockholders who share in the company's profits and
losses.
stock life-insurance company. A stock insurance
company that does life-insurance business.
insurance fraud. See FRAUD.
insurance ofthe person. See INSURANCE.
insurance policy, (1869) 1. A contract of insurance. 2. A
document detailing such a contract. -Often shortened
to policy. Also termed policy ofinsurance; contract
ofinsurance.
accident policy. A type of business or personal policy
that insures against loss resulting directly from acci
dental bodily injuries sustained during the policy
term. [Cases: Insurance <.r"::;) 1012, 1716.J
assessable policy. 1. A policy under which a policy
holder may be held liable for losses of the insurance
company beyond its reserves. -Also termed assess
able insurance. 2. See assessable insurance (1) under
INSURANCE.
bailee policy. A floating policy that covers goods in a
bailee's possession but does not particularly describe
the covered goods.
basic-form policy. (1997) A policy that offers limited
coverage against loss . A basic-form policy generally
covers damages from fire, windstorm, explosion, riot,
vehicles, theft, or vandalism. -Also termed
limited policy; specific policy.

877 insurance policy
blanket policy. (1894) An agreement to indemnify
all property, regardless oflocation. -Also termed
compound policy; floating policy.
block policy. An all-risk policy that covers groups of
property (such as property held in bailment or a busi
ness's merchandise) against most perils. See all-risk
insurance under INSURANCE.
broad-form policy. (1950) A policy that offers broad
protection with few limitations. -1bis policy offers
greater coverage than a basic-form policy, but less
than an open-perils policy.
claims-made policy. (1974) An agreement to indem
nify against all claims made during a specified period,
regardless ofwhen the incidents that gave rise to the
claims occurred. Also termed discovery policy.
lCases: Insurance
closed policy. An insurance policy whose terms cannot
be changed. - A fraternal benefit society is not per
mitted to write closed policies. Also termed closed
insurance contract.
commercial general-liability policy. A comprehensive
policy that covers most commercial risks, liabilities,
and causes ofloss. -This type of policy covers both
business losses and situations in which a business is
liable to a third party for personal injury or property
damage. First introduced in 1986, this policy has
largely replaced comprehensive general-liability
policies. -Abbr. CGL policy. Cf. comprehensive
general-liability policy.
completed-operations policy. A policy usu. purchased
by a building contractor to cover accidents arising
out of a job or an operation that the contractor has
completed.lCases: Insurance <::=2296.]
compound policy. See blanket policy.
comprehensive general-liability policy. (1943) A
broad-coverage commercial insurance policy
covering a variety ofgeneral risks, esp. bodily injury
and property damage to a third party for which
the business entity is liable . This policy was first
offered in 1940. It has largely been replaced by the
commercial-general liability policy. -Also termed
CGL policy; general-liability policy. Cf. commercial
general-liability policy.
concurrent policy. (1937) One oftwo or more insurance
policies that cover the same risk. _ Concurrent insur
ance policies are stated in almost identical terms so
that liability can be apportioned between the insurers.
[Cases: Insurance~2107.]
continuous policy. See perpetual policy.
corrected policy. A policy issued after a redetermina
tion of risk to correct a misstatement in the original
policy.
deferred-dividend insurance policy. Hist. A life insur
ance policy that accumulated a fixed percentage ofthe
insurer's surplus profits, payable as a lump sum on a
certain date or at the insured's death, whichever came
first. [Cases: Insurance discovery policy. See claims-made policy.
drummer floater policy. Hist. A policy that covered
the goods carried by a commercial salesperson while
traveling.
endowment policy. A life-insurance policy payable at
the end ofa specified period, if the insured survives
that period, or upon the insured's death if death
occurs before the end of the period.
excess policy. See excess insurance under INSURANCE.
extended policy. A policy that rema! ns In effect beyond
the time when premiums are no longer paid.
flier policy. Hist. A policy issued at a very low rate near
the end of the year for the purpose of swelling the
insurance agent's annual-sales figures. -Also spelled
flyer policy.
floating policy. An insurance policy covering property
that frequently changes in quantity or location, such
as jewelry. -Also termed running policy; blanket
policy.
following-form policy. An insurance policy that adopts
the terms and conditions ofanother insurance policy.
[Cases: Insurance <::=3615.]
gambling policy. See wager policy.
graveyard insurance. See wager policy.
group policy. See master policy.
homeowner's policy. A multiperil policy provid
ing coverage for a variety of risks, including loss by
fire, water, burglary, and the homeowner's negligent
conduct.
incontestable policy. (1897) A policy containing a pro
vision that prohibits the insurer from contesting or
canceling the policy on the basis ofstatements made
in the application. lCases: Insurance C":::>3121.J
interest policy. A policy whose terms indicate that the
insured has an interest in the subject matter of the
insurance. Cf. wager policy.
joint life policy. (1927) A life-insurance policy that
matures and becomes due upon the death of any of
those jointly insured.
lapsed policy. (1873) 1. An insurance policy on which
there has been a default in premium payments. [Cases:
Insurance <::=2039.] 2. An insurance policy that,
because ofstatutory provisions, remains in force after
a default in premium payments. _ Statutes normally
proVide a 30-or 31-day grace period after nonpay
ment ofpremiums. [Cases: Insurance <::=2018.]
level-rate legal-reserve policy. A policy that seeks to
build a reserve equal to the policy's face value by the
end of the insured's life.
life policy. A life-insurance policy that requires lifetime
annual fixed premiums and that becomes payable only
on the death of the insured. -Also termed regular
life policy. [Cases: Insurance (,=1011, 1716.]

878 insurance pool
limited policy. (1884) 1. An insurance policy that spe
cifically excludes certain classes or types of loss. 2.
See basic-form policy.
manuscript policy. (1962) An insurance policy contain
ing nonstandard provisions that have been negotiated
between the insurer and the insured.
master policy. (1926) An insurance policy that covers
multiple insureds under a group-insurance plan.
Also termed group policy. See group insurance under
INSURANCE.
mixed policy. Marine insurance. A policy combining
aspects ofboth a voyage policy and a time policy.
multiperil policy. (1951) An insurance policy that
covers several types oflosses, such as a homeowner's
policy that covers losses from fire, theft, and personal
injury. Also termed named-perils policy.
nonmedical policy. An insurance policy issued without
a prior medical examination of the applicant.
occurrence policy. An agreement to indemnify for
any loss from an event that occurs within the policy
period, regardless ofwhen the claim is made. [Cases:
Insurance C::'2264.J
open-perils policy. (1997) A property insurance policy
covering all risks against loss except those specifically
excluded from coverage.
open policy. See unvalued policy.
package policy. An insurance policy prOViding pro
tection against multiple perils and losses ofboth the
insured and third parties. A homeowner's policy is
usu. a package policy.
paid-up policy. A policy that remains in effect after
premiums are no longer due.
participating policy. A policy that allows the holder a
right to dividends or rebates from future premiums .
This type of policy is issued by a mutual company.
permanent policy. A renewable policy that is effective
for a specified period and is terminable by either the
insurer or the insured after giving express notice.
perpetual policy. An insurance policy that remains
effective without renewal until one of the parties
terminates it according to its terms. Also termed
continuous policy.
regular life policy. See life policy.
runningpolicy. See floating policy.
specific policy. See basicjorm policy.
standard policy. (1893) 1. An insurance policy pro
viding insurance that is recommended or required
by state law, usu. regulated by a state agency. [Cases:
Insurance 1775.] 2. An insurance policy that
contains standard terms used for similar insurance
policies nationwide, usu. drafted by an insurance
industrial association such as Insurance Services
Office.
survivorship policy. A joint life policy that is payable
after all the insureds have died. term policy. A life-insurance policy that gives protec
tion for a specified period, but that does not have a
cash value or reserve value.
time policy. (1852) An insurance policy that is effective
only during a specified period.
tontine policy (tahn-teen or tahn-teen). An insurance
policy in which a group ofparticipants share advan
tages so that upon the default or death of any par
ticipant, his or her advantages are distributed among
the remaining participants until only one remains