154 required, shall produce for examination all books of account, 155 bills, invoices, and other vouchers, or certified copies thereof, 156 if originals be lost, at such reasonable time and place as may 157 be designated by this Company or its representative, and shall 158 permit extracts and copies thereof to be made. 159 160 Appraisal. In case the insured and this Company shall fail to agree as to the amount of loss or 161 damage, each shall, on the written demand of either, select 162 a competent and disinterested appraiser. The appraisers 163 shall first select a competent and disinterested umpire; and 164 failing for fifteen days to agree upon such umpire then, on 165 request of the insured or this Company, such umpire shall be 166 selected by a judge of a court of record in the state in which 167 the property insured is located. The appraisers shall then 168 appraise the loss and damage stating separately sound value 169 and loss or damage to each item; and failing to agree, shall 170 submit their differences only, to the umpire. An award in 171 writing, so itemized, of any two when filed with this Company 172 shall determine the amount of sound value and loss or 173 damage. Each appraiser shall be paid by the party selecting 174 him and the expenses of appraisal and umpire shall be paid 175 by the parties equally. 176 177 Company's options. 178 It shall be optional with this Company to take all, or any part, of the articles at the agreed or appraised value, and also to 179 repair, rebuild, or replace the property lost or damaged with 180 other of like kind and quality within a reasonable time, on 181 giving notice of its intention so to do within thirty days 182 after the receipt of the proof of loss herein required; but there can be no abandonment to this Company of any property. 183 Abandonment. 184 185 When loss 186 187 payable. The amount of loss or damage for which this Company may be liable shall be payable sixty days after proof of loss, as herein 188 provided, is received by this Company and ascertainment of 189 the loss or damage is made either by agreement between the 190 insured and this Company expressed in writing or by the 191 filing with this Company of an award as herein provided. 192 Suit. 193 No suit or action on this policy, for the recovery of any claim, shall be sustainable 194 in any court of law or equity unless all the requirements of 195 this policy shall have been complied with, nor unless com196 menced within twelve months next after the fire. 197 198 Subrogation. This Company may require from the insured an assignment of all right of recovery 199 against any party for loss or damage to the extent that pay200 ment therefor is made by this Company. ASSIGNMENT OF INTEREST BY ASSURED The interest of.... .as owner of the property covered by this Policy is hereby assigned to. Dated,. .19.... [Signature of the Assured.] CONSENT BY COMPANY TO ASSIGNMENT OF INTEREST The Insurance Company, of N. Y., hereby consents that the interest of as owner of the property covered by this Policy be assigned to. Dated. .19.... FORM FOR REMOVAL Agent. Permission is hereby granted to remove the property insured by this Policy to the. .situate.. and this Policy is hereby made to cover the same property in new locality, all liability in former locality to cease from this date. いい CHAPTER III THE INSURED-INSURABLE INTEREST AND ASSIGNMENT Definition and Nature of Insurable Interest.-The fire insurance policy, as already explained, is essentially a personal contract. To eliminate the moral hazard as much as possible, it is important that the insured should have a pecuniary interest in the property which he wishes to insure. Fire insurance policies are contracts for indemnity and not for profit. Where the insured has no insurable interest in the property covered by the policy there can be no loss, and hence no indemnity. In life insurance, as contrasted with fire insurance, this principle of indemnity has not been defined clearly. Not only do the courts hold that a person has an insurable interest in his own life for any amount for which he may be willing to pay premiums, but as regards the insurable interest of blood relatives in the life of the insured, and, in many states, even as regards the interest of creditors, the tendency has been not to lay down hard and fast rules as to the amount of insurance that may be taken. In fact, most legal authorities do not regard life insurance policies as contracts for indemnity, but view them as agreements for the payment of a definite sum “upon the happening of a certain event at an uncertain time in the future." "Insurable interest," as applied to fire insurance contracts, has been defined as "every interest in property or in relation thereto or liability in respect thereof, of such a nature that a contemplated peril may directly damnify the insured.”1 Every person who has such an insurable interest in property has the right to insure the same under a fire or marine insurance policy. It is to be noted that the definition is exceedingly broad in its scope, and that insurable interest does not necessarily imply ownership or possession of the property. Insurable interest may assume hundreds of forms, and may exist under very different conditions. Elliott briefly summarizes the nature of the interest as follows: "The interest which may be insured must be neither illegal nor immoral. It may be either legal or equitable, but it is not necessary that the party should have either legal or equitable title to the property. The interest may be either conditional or contingent. . . . An insurable interest does not imply ownership of the property or even a right to its possession. A person may insure his interest in expected commissions, or, in what seems an extreme case, an expected catch of fish. But in all such cases an expectation of profit or benefit must arise out of some subject in which the party is actually interested at the time of the loss, and it is not enough that he only expects to be interested in such property." 2 Examples of Insurable Interest.-Space limits forbid. a full enumeration of the immense variety of forms that insurable interest in property may assume. Moreover, there is probably no other legal phase of property insurance where there are so many border-line court decisions. The following classification will furnish the most. important instances where the weight of legal authority upholds the existence of an insurable interest: EXAMPLES OF INSURABLE INTEREST (1) Ownership or possession: Those having legal title to property. Those having equitable title to property. Those in possession under an illegal or defective title. Those in possession, with a claim of title until the same is judicially held invalid. Lessee, in property held under lease. Mortgagor, to the full value of property mortgaged. Part owners, in their respective interests. Vendee in possession, or when obligated to pay the purchase price. Vendor, until final transfer takes place. (2) Custodians of property entrusted to their care (to the extent of their interest or liability): Administrators of estates. Agents or factors, in property held for principal. Trustees. Receivers. Common carriers. Warehousemen. Commission merchants. (3) Creditor or debtor relations: Judgment or attaching creditors. Mortgagee, to extent of mortgage debt. Debtors, in property seized for debt. Endorsers and sureties, in property of the guaranteed. Pledgees, to value of goods held in pledge. Those who have, with consent, expended money upon other persons property. |