All terms, conditions and stipulations of this Bond are to be deemed conditions precedent to any claim by the Indemnified. No suit or action on this Bond shall be brought or be sustainable until after the compliance by the Indemnified with the terms, conditions and stipulations of this Bond, nor, in the absence of any statutory provision to the contrary, unless commenced within twelve (12) months after its expiration. CHAPTER XXXII MISCELLANEOUS FORMS OF PROPERTY Combined Importance of Such Forms.-Twelve special kinds of insurance, protecting against loss of or damage to property, are worthy of a brief review. Most of these forms of insurance are written by fire or fire-marine companies; some are written only by casualty companies; while a few are transacted by both types of companies. Latest figures indicate that the aggregate annual premium income in the United States, derived from nine of these types of insurance, amounts to almost $94,000,000. If data were available for all, there is reason to believe that this total would equal, if not exceed, $100,000,000. Briefly described, the forms of insurance referred to are: Burglarly and Theft Insurance.-Forty-two companies write this form of insurance, and collected for the year 1920, $20,902,117 in premiums. Policies are either of the "residence" or "commercial" type, and the latter may, in turn, assume any one of four forms, namely, "mercantile open stock," "mercantile safe," "messenger robbery," and "bank burglary." Residence burglary, larceny and theft policies, comprising about 50 per cent of the total business, protect the insured, to the extent defined in the contract, against loss (1) "by burglary, larceny, or theft of property of the insured as defined in the schedule from within the premises, committed by any person whose property is not covered hereunder'; and (2) "by damage, except by fire to the said property and to the said premises, caused by any such person while in or upon the premises with the intent to commit burglary, larceny or theft." No liability, however, is assumed for any loss: (1) of money or securities in excess of $50; (2) occurring subsequent to the date of any chattel mortgage, bill of sale, assignment, or change of interest in any of the insured property; (3) of property in excess of the cost of replacement at the time of loss; (4) from, contributed to by, or occurring during, a fire in the building in which the premises are located; (5) from, or contributed to by, any invasion or war, or for damage caused by water or the action of the elements; (6) from, contributed to by, or occurring during any explosion, except when caused by burglars; (7) if the risk is so changed as to materially increase the hazard without the company's knowledge, or if, the insured defrauds or attempts to defraud the company; (8) from any porch, veranda or piazza, and (9) of any property separately valued in or covered by any other policy. Within any policy year vacancy of the premises for four months is permitted, although by endorsement and upon payment of additional premium this period of vacancy may be extended. The insured property is described and valued under three groups. Group "A" comprises jewelry, silverware and furs; group "B," all other household goods common in residences; and group "C," articles separately and specifically described and insured. With respect to Group "A," representing from 60 to 65 per cent of all the loss on residence policies, 80 per cent coinsurance was at one time. compulsory if the amout of insurance was less than $20,000, but subsequently was made optional owing to the competitive methods of a few companies that would not agree to the compulsory plan. If coinsurance is used, manual rates are reduced by 20 per cent, whereas if not used, such rates are increased by 10 per cent. The amount of insurance on Class "B" must be at least $500. Statistics of losses are now reported by the companies to a central statistical bureau, and are there compiled with reference to all the factors that enter into rate-making. Rates, although based chiefly upon experience, will vary according to territory (the country being divided into four territorial groups), classification of the risk, depending on the number of different occupants or the nature of the occupancy (there being three groups), degree of coverage, and the form of the policy. Mercantile open stock policies, representing about 20 per cent of the total losses, insure against (1) "loss by burglary of merchandise usual to the insured's business, as described in schedule hereof, and furniture and fixtures from within the premises as hereafter defined, occasioned by any person or persons who shall have made felonious entry into the premises by actual force or violence when the premises are not open for business, of which force and violence there shall be visible marks made upon the premises at the place of such entry by tools, explosives, electricity or chemicals"; and (2) "all damage (except by fire) to such merchandise, furniture, fixtures and premises, caused by such burglarly or attempt thereat." Limitations upon the company's liability are in the main similar to those noted in connection with residence policies, except that the company does not assume responsibility (1) for loss or damage if the insured, any associate or employee is implicated in the burglary as principal or accessory; (2) for loss or damage if the premises are occupied for any purpose other than those stated in the schedule; (3) unless books and accounts are kept in such manner that the exact amount of loss can be determined accurately by the company; and (4) for loss or damage to plate glass, or lettering, or ornamentation thereon. These policies are written subject to 80 per cent coinsurance. A maximum amount of insurance is determined for each merchant in the various classifications. The insured is then required to carry the maximum stipulated by the company. If he complies, no coinsurace is applied; if not, "the company shall not be liable for a greater proportion of any loss of or damage to the merchandise hereby insured, than the sum hereby insured bears to 80 per cent of the actual cash value of all such merchandise contained in the premises at the time such loss or damage occurs. Rates are graded on the basis of territory (two groups), and the nature of the business (three groups). They are increased for various kinds of additional coverage allowed by endorsement, or are reduced by discounts for the maintenance of an approved burglar alarm system or a watchman service. Plate Glass Insurance.-For 1919 plate glass premiums in the United States amounted to $17,573,386. The policy, which is standard among all companies, protects "against loss by breakage of the glass described in the schedule set forth in the policy." Such breakage, however, must be the result of accident and due to cause beyond the control of the insured, and liability is limited to the value of the glass at the time of breakage, including lettering or ornamentation thereon if the same is injured by breakage. The company has the option of paying the actual value or of replacing the glass. No liability exists for loss or damage resulting from (1) fire, whether on the insured premises or elsewhere; (2) earthquake, inundation, insurrection, riot, or military and usurped power; (3) blowing up of buildings when authorized by civil authorities; (4) scratching, chipping or defacing of the glass; (5) persons engaged in repairing or constructing the building; and (6) removal, glazing or storage of the glass. The determination of rates has been described as follows:1 1 See C. Tubman: "The Story of Plate Glass,” p. 10. |