Insurance contracts were traditionally concluded on the basis of each type of risk (risks were defined extremely narrowly) and a separate premium was calculated and calculated for each of them. Only the individual risks expressly described in the policy or “foreseen” were covered; This is why these guidelines are now described as “individual” or “calendar” guidelines. [13] This system of “designated hazards”[14] or “specific hazards”[15] did not proven to be sustainable in the context of the Second Industrial Revolution, as a typical large conglomerate could present dozens of types of risks against which it must insure itself. For example, in 1926, an insurance industry spokesman stated that a bakery had to take out a separate policy for each of the following risks: production companies, elevators, teamster, product liability, contractual liability (for a secondary track connecting the bakery to a nearby railway), operating liability (for a retail business), and owner protection liability (for negligence of contractors responsible for modify buildings). [13] Until the mid-twentieth century, insurance companies were relatively free from federal regulation in the United States. According to the U.S. Supreme Court to Paul v. Virginia, 75 U.S. (8 Wall.) 168, 19 L. Ed. 357 (1868), the issuance of an insurance policy was not a commercial transaction. This meant that states had the power to regulate insurance activities. In 1944, the High Court decided on United States v.
South-Eastern Underwriters Ass’n, 322 U.S. 533, 64 S. Ct. 1162, 88 L. Ed. .
