Insurance is a system of distributing the losses of a few persons among a large number of persons. Thus, 5,000 persons might take out insurance policies, each paying $100 a year, making a total income of $500,000. If 100 persons die (assuming it is life insurance) and each has a policy of $5,000, the $500,000 will be consumed, and the loss of 100 have been distributed among 50 times that number. Actually, of course, the insurance company will have something left, if its risk tables have been carefully prepared, and if no extraordinary disaster, such as a severe earthquake or famine, has occurred. Almost every conceivable risk may be insured: Life, marine, fire - these are the more common; but there are companies that insure against tornadoes, steam-boiler explosions, plate glass, burglaries, injuries, automobile theft or lawsuits, defaults or embezzlements, etc. The insurance policy is a contract, and the premium paid is the consideration. Lawful contracts of insurance cannot be made unless the person paying the premium has an insurable interest in the person or thing insured; thus, a baseball club may insure the lives of its players, but probably, would not be allowed to insure the life of an opera singer. The foregoing kinds of insurance are subdivided into many classes; for instance, life insurance may be endowment, straight life, or term. Insurance policies having a "surrender value" may be pledged, and such assignment duly recorded on the books of the insurance company, as collateral for a loan, if they are properly assigned to the lender. By "surrender value" is meant the sum the company agrees to pay to the holder of the policy when he surrenders it. The sum that will be paid is based on the policy reverse and is less than amount paid as premiums.