obligatory for all companies writing business in the state. Six years later a standard form was adopted by the legislature of New York, and made obligatory in the following year, 1887. This policy, going under the name of the "New York Standard Fire Policy," was later adopted as a statute in a considerable number of other states, and was also used wherever permitted by most of the largest companies. From time to time this policy has been improved. (For present New York Standard Policy, see copy attached to this Chapter). Quite a number of states have adopted special forms of standard policies, differing somewhat but not radically from the New York form. In other states, although not made mandatory by law, the New York form is generally used by nearly all the companies.

Grouping of Policy Provisions. For purposes of discussion the main provisions of the standard fire policy may conveniently be classified under the following heads:

1. The parties to the contract, including insurable interest and agency.

2. Description of the property.

3. The risk assumed.

4. The term of the contract, involving renewal and cancellation.

5. Other insurance on the same property, involving contribution.

6. Endorsements granting special privileges or imposing restrictions.

7. Provisions applying after a loss has occurred.

As regards each of these groups the provisions of the policy will be discussed in the following chapters with reference to their purpose and meaning, and the most important interpretations that have been placed upon them by the courts.

and legal representatives, to the extent of the actual cash value (ascertained with proper deductions for depreciation) of the property at the time of loss or damage, but not exceeding the amount which it would cost to repair or replace the same with material of like kind and quality within a reasonable time after such loss or damage, without allowance for any increased cost of repair or reconstruction by reason of any ordinance or law regulating construction or repair and without compensation for loss resulting from interruption of business or manufacture, for the term of..

192.. at noon, 192....

at noon,

against all DIRECT LOSS AND DAMAGE BY FIRE and by removal from premises endangered by fire, except as herein provided, to an amount not exceeding.. .. Dollars,

to the following described property while located and contained as described herein, or pro rata for five days at each proper place to which any of the property shall necessarily be removed for preservation from fire, but not elsewhere, to wit:

This policy is made and accepted subject to the foregoing stipulations and conditions, and to the stipulations and conditions printed on the back hereof, which are hereby made a part of this policy, together with such other provisions, stipulations and conditions as may be endorsed hereon or added hereto as herein provided.

PROVISIONS REQUIRED BY LAW TO BE STATED IN THIS POLICY:-This Policy is in a stock corporation, and is issued under and in pursuance of Sections 130, 131 and 132 of the Insurance Law of the State of New York.

In Witness Whereof, this Company has executed and attested these presents; but this policy shall not be valid unless countersigned by the duly authorized Agent of the Company at....

Countersigned at..

this........day of..

192 ..Agent.

President.

Secretary.

4 insurance or the 5 swearing by the 6 insurance or the

7

8

9

10

Uninsurable

and

This entire policy shall be void if the insured has concealed or misrepresented any material fact or circumstance concerning this subject thereof; or in case of any fraud or false insured touching any matter relating to this subject thereof, whether before or after a loss.

Excepted property. 11 scripts, mechanical Hazards not covered.

12

13

14

This policy shall not cover accounts, bills, currency, deeds, evidences of debt, money, named hereon in writing, bullion, manunotes or securities; nor, unless specifically drawings, dies or patterns.

This Company shall not be liable for loss or damage caused directly or indirectly by invasion, insurrection, riot, civil war or 15 commotion, or military or usurped power, or by order of any 16 civil authority; or by theft; or by neglect of the insured to use 17 all reasonable means to save and preserve the property at and 18 after a fire or when the property is endangered by fire in 19 neighboring premises.

20

This entire policy shall be void, unless otherwise provided 21 by agreement in writing added hereto,

22 Ownership, etc. (a) if the interest of the insured be other than

23

unconditional and sole ownership; or (b) if 24 the subject of insurance be a building on ground not owned by 25 the insured in fee simple; or (c) if, with the knowledge of the 26 insured, foreclosure proceedings be commenced or notice given 27 of sale of any property insured hereunder by reason of any mort28 gage or trust deed; or (d) if any change, other than by the death 29 of an insured, take place in the interest, title or possession of 30 the subject of insurance (except change of occupants without 31 increase of hazard); or (e) if this policy be assigned before a loss. 32 Unless otherwise provided by agreement in writing added 33 hereto this Company shall not be liable for loss or damage 34 occurring

35

36

Other insurance. 37 on property covered 38

39 Increase of hazard. 40

(a) while the insured shall have any other contract of insurance, whether valid or not, in whole or in part by this policy; or

(b) while the hazard is increased by any means within the control or knowledge of the insured; or

(c) while mechanics are employed in building, altering or repairing the described premises

43 beyond a period of fifteen days; or

(d) while illuminating gas or vapor is generated on the described premises; or while (any usage or custom to the contrary not47 withstanding) there is kept, used or allowed on the described 48 premises, fireworks, greek fire, phosphorus, explosives, benzine, 49 gasoline, naphtha or any other petroleum product of greater 50 inflammability than kerosene oil, gunpowder exceeding twenty51 five pounds, or kerosene oil exceeding five barrels; or

52

Factories.

53

(e) if the subject of insurance be a manufacturing establishment while operated in 54 whole or in part between the hours of ten P. M. and five A. M. 55 or while it ceases to be operated beyond a period of ten days; or (f) while a described building, whether intended for occupancy by owner or tenant, is

56

57 Unoccupancy.

58 vacant or unoccupied beyond a period of ten days; or

59

60

Explosion,

Lightning.

62

63

(g) by explosion or lightning, unless fire ensue, and, in that event, for loss or damage by fire only.

Unless otherwise provided by agreement in Chattel mortgage. writing added hereto this Company shall 64 not be liable for loss or damage to any property insured here65 under while incumbered by a chattel mortgage, and during the 66 time of such incumbrance this Company shall be liable only 67 for loss or damage to any other property insured hereunder.

68

69

Fall of building.

If a building, or any material part thereof, fall except as the result of fire, all insurance

70 by this policy on such building or its contents shall immediately

71 cease.

72

Added Clauses.

73

The extent of the application of insurance under this policy and of the contribution to 74 be made by this Company in case of loss or damage, and any 75 other agreement not inconsistent with or a waiver of any of 76 the conditions or provisions of this policy, may be provided for 77 by agreement in writing added hereto.

78

Waiver.

79

No one shall have power to waive any provision or condition of this policy except such 80 as by the terms of this policy may be the subject of agreement 81 added hereto, nor shall any such provision or condition be held 82 to be waived unless such waiver shall be in writing added hereto, 83 nor shall any provision or condition of this policy or any for84 feiture be held to be waived by any requirement, act or proceed85 ing on the part of this Company relating to appraisal or to any 86 examination herein provided for; nor shall any privilege or per87 mission affecting the insurance hereunder exist or be claimed by 88 the insured unless granted herein or by rider added hereto.

This policy shall be cancelled at any time at the request of the insured, in which case the Company shall, upon demand and sur92 render of this policy, refund the excess of paid premium above 93 the customary short rates for the expired time. This policy 94 may be cancelled at any time by the Company by giving to the 95 insured a five days' written notice of cancellation with or with96 out tender of the excess of paid premium above the pro rata 97 premium for the expired time, which excess, if not tendered, 98 shall be refunded on demand. Notice of cancellation shall state 99 that said excess premium (if not tendered) will be refunded on 100 demand.

101

102

Pro rata liability.

This Company shall not be liable for a greater proportion of any loss or damage

103 than the amount hereby insured shall bear to the whole 104 insurance covering the property, whether valid or not and 105 whether collectible or not.

106

Noon.

107

108

109

Mortgage

110

interests.

66

noon

The word " herein means noon of standard time at the place of loss or damage. If loss or damage is made payable, in whole or in part, to a mortgagee not named herein as the insured, this policy may be cancelled 111 as to such interest by giving to such mortgagee a ten days' 112 written notice of cancellation. Upon failure of the insured to 113 render proof of loss such mortgagee shall, as if named as insured 114 hereunder, but within sixty days after notice of such failure, ren115 der proof of loss and shall be subject to the provisions hereof as 116 to appraisal and times of payment and of bringing suit. On pay117 ment to such mortgagee of any sum for loss or damage here118 under, if this Company shall claim that as to the mortgagor or 119 owner, no liability existed, it shall, to the extent of such pay120 ment be subrogated to the mortgagee's right of recovery and 121 claim upon the collateral to the mortgage debt, but without 122 impairing the mortgagee's right to sue; or it may pay the mort123 gage debt and require an assignment thereof and of the mortgage. 124 Other provisions relating to the interest and obligations of such 125 mortgagee may be added hereto by agreement in writing.

126

127 Requirements in The insured shall give immediate notice, in writing, to this Company, of any loss or case of loss. 128 damage, protect the property from further 129 damage, forthwith separate the damaged and undamaged 130 personal property, put it in the best possible order, furnish a 131 complete inventory of the destroyed, damaged and undamaged 132 property, stating the quantity and cost of each article and the 133 amount claimed thereon; and, the insured shall, within sixty 134 days after the fire, unless such time is extended in writing by 135 this Company, render to this Company a proof of loss, signed 136 and sworn to by the insured, stating the knowledge and belief 137 of the insured as to the following: the time and origin of the fire, 138 the interest of the insured and of all others in the property, the 139 cash value of each item thereof and the amount of loss or damage 140 thereto, all incumbrances thereon, all other contracts of in141 surance, whether valid or not, covering any of said property, 142 any changes in the title, use, occupation, location, possession, or 143 exposures of said property since the issuing of this policy, by 144 whom and for what purpose any building herein described and 145 the several parts thereof were occupied at the time of fire; and 146 shall furnish a copy of all the descriptions and schedules in all 147 policies and if required, verified plans and specifications of any 148 building, fixtures or machinery destroyed or damaged. The 149 insured, as often as may be reasonably required, shall exhibit 150 to any person designated by this Company all that remains of 151 any property herein described, and submit to examinations 152 under oath by any person named by this Company, and 153 subscribe the same; and, as often as may be reasonably