Article — Gury-Ballerini, Compendium of Moral Theology (8th ed., 1884)
Article I. On Insurance
Insurance is a contract by which one takes upon himself the risk of some thing, and the other obliges himself to a price for a risk of this kind having been undertaken. Thus in various cities there exist societies which insure, for example, houses against fire, ships against shipwrecks, etc.
- Questions. - Q. 1. Whether the contract of insurance is lawful?
Resp. Affirmatively. For equality is preserved when the due conditions concur, as the Theologians commonly confess, and daily practice confirms.
Q. 2. What are the conditions required for insurance?
Resp. They are the following: 1. that the price be proportioned to the risk; 2. that the risk be true and equally known to each party; 3. that the insured observe all the conditions of the contract; 4. that the insurer have that from which he can pay. - St. Lig. n. 911. - See Cases, n. 1012.