Property Insurance: Comprising Fire and Marine Insurance, Automobile ... - Solomon Stephen Huebner - Google Books

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I. THE FUNCTIONS OF FIRE AND MARINE INSUR-

Definition of insurance, 1. Extent of fire and

marine insurance business, 2. Benefits derived

from fire and marine insurance, 4. Substitution

of certain for uncertain loss, 4. Correct inspec-

tion and rating of risks, 7. Increased efficiency

through the elimination of worry, 9. Insurance

the basis of our credit system, 10. Marine in-

surance a national commercial weapon, 14.

II. THE POLICY CONTRACT IN FIRE INSURANCE

The fire insurance policy a personal contract,

16. The fire insurance policy a contract for in-

demnity, 17. Nature of the indemnity promised,

18. Rules underlying the interpretation of the

contract, 19. Benefit of doubt to the insured in

case of ambiguity, 20. Endorsements control

the regular provisions of the policy, 21. Each

policy is an independent contract, 22. Forfei-

ture generally limited to the continuance of

policy violation, 22. Development of the stand-

ard policy, 23. Grouping of provisions in the

policy, 27. Copy of New York standard fire

III. THE INSURED INSURABLE INTEREST AND AS-

Definition and nature of insurable interest, 34.

Examples of insurable interest, 35. The time

and continuity of insurable interest, 37. Policy

provisions relating to ownership and interest, 40.

Assignment of fire policies, 43. Assignment

before loss without company's consent prohib-

ited, 43. Form of the company's endorsement

acknowledging consent to assignment, 44. As-

signment when there has been a transfer of the

property, 45. Pledging of policy as collateral

security not prohibited by assignment clause,

Assignment after the occurrence of a loss,

IV. THE MORTGAGEE CLAUSE

Mortgagee and mortgagor have separate insur-

able interests, 49. The mortgagee may insure

his own interest, 50. Mortgagee may take the

mortgagor's policy by way of assignment, 51.

Mortgagor's policy endorsed "loss, if any,

payable to mortgagee as his interest may ap-

pear, "' 52. The "mortgagee clause,'' 53. Ad-

vantages of the mortgagee clause, 55. Analysis

of the clause, 56. Payment of loss to mortga-

gee, 56. Mortgagee's interest not invalidated by

act or neglect of mortgagor, 57. Mortgagee

liable for the premium, 57. Cancellation of the

mortgagee's protection, 58. Subrogation when

mortgagor violates policy, 58. Special or

blanket agreements, 59. Contribution under the

mortgagee clause, 59.

Classification of insurers, 63. Stock companies,

63. Local assessment mutuals, 65. State mu-

tuals, 68. Deposit premium companies, 69.

Factory mutuals, 69. Ordinary premium mu-

tuals, 71. "Reciprocal" or "inter-insurer'

associations, 71. Non-assessable mutuals, 72.

Ship owners' mutual associations or clubs, 72.

Lloyd's of London, 74. American Lloyd's asso-

ciations, 78. Self-insurance, 79.

Importance of agency in fire insurance, 81.

Method of reporting business written, 82. The

daily report, 83. Statutory regulation of agents,

84. Powers and liabilities of the agent, 86.

Agent's apparent powers coextensive with those

of his principal, 86. Liability of company for

the acts of sub-agents and employees of the

agent, 86. Legal effect of agent's opinions on

the meaning of policy provisions, 87. Personal

liability of the agent for misconduct to his

principal, 87. An agent may not act as such

for two parties in the same transaction, 88.

Waiver provision in the standard fire policy, 88.

Brokers distinguished from agents, 91. Defini-

tion and licensing of brokers, 91. Services of

the broker, 92. Legal status of the broker, 94.

VII. DESCRIPTION OF THE PROPERTY INSURED

Policy provisions relating to the subject, 97.

Description of character and location of risk, 97.

Different interpretations of this provision, 98.

Concealment or misrepresentation of material

facts, 100. Doctrine of the entirety of the con-

tract, 101. Examples of its application, 101.

Reasons for enforcing this doctrine in certain

cases, 103. Warranties and representations, 104.

Distinction between warranties and representa-

tions, 105. State statutes relating to warran-

VIII. THE RISK ASSUMED UNDER THE POLICY

Definition of the insurer's liability under the

policy, 107. The doctrine of proximate cause,

109. Examples of its application, 109. Doctrine

of proximate cause in marine insurance, 111.

Meaning of "loss and damage by fire, 112.

Excluded risks, 113. Excluded articles, 116.

Company's liability for loss limited to the

actual cash value of the property, 117. Com-

pany's option to rebuild or replace, 118. Aban-

donment of property to company prohibited, 119.

IX. TERM OF THE CONTRACT-RENEWAL AND CAN-

X.

Policy definition of "the term, 121. When

the policy takes effect, 121: The binding"

of insurance, 122. Retroactive insurance, 124.

"Open policies,'' 125. Renewal of the contract,

125. A renewal policy legally a new contract,

126. Description of the property in renewal

contracts, 126. Right of cancellation and rea-

sons for, 127. Cancellation clause of the stand-

ard policy, 127. Tender of the unearned pre-

mium, 128. Notice of cancellation, 129. Short

rate tables explained, 130. Sample short rate

138.

PAGE
97-106

107-120

121-133

"OTHER INSURANCE" AND "CONTRIBUTION'

Definition of other insurance, 134. Purpose of

policy provisions relating to other insurance, 134.

History of the other insurance clause, 136. Sig-

nificance of the words "valid or invalid,'

Significance of the words "covered in whole or

in part," 138. Other insurance in relation to

renewal and substitution, 138. The other insur-

ance clause in marine insurance, 139. Contribu-

tion in fire insurance, 140. Apportionment of

loss when the policies are concurrent, 141. Sig-

nificance of the words "whether valid or not

and whether collectible or not,'
'' 142. Contri-

bution when the policies are non-concurrent, 143.

Illustration of apportioning compound insurance,

145. Numerous rules in use for the apportion-

ment of loss among compound and specific pol-

XI. PROVISIONS WHICH APPLY AFTER A LOSS HAS

Two-fold classification of provisions in this re-

spect, 149. Notice of loss and proofs of loss,

149. Meaning of "immediate notice," 151.

Exhibition of property and records and exami-

nation of the owner, 152. Appraisal clause of

the standard policy, 152. Interpretation of the

clause, 154. Form of appraisal agreement, 155.

XII. COINSURANCE

Meaning of coinsurance, 158. Wording of dif-

ferent clauses, 158. Application of coinsurance

illustrated, 159. Reasons justifying coinsurance,

162. Justice between property owners secured,

162. Rates of premium similar to tax rates,

166. Protection of small against large owners

made possible, 168. Anti-coinsurance laws, 169.

Graded rate systems, 170. Special coinsurance

clauses, 173. Other leading clauses distributing

loss or limiting the insurer's liability, 174. Pro

rata clause, 174. Pro rata distribution clause,

174. Two-thirds vacancy clause, 175. Three-

fourths value clause, 176. Three-fourths loss

XIII. REINSURANCE

Definition of reinsurance, 178. Extent of rein-

surance, 179. Reasons for reinsurance, 179.

Conditions required in effecting reinsurance, 182.

Sample reinsurance form, 184. Types of rein-

surance agreements, 185. Agreements covering

specific risks, 185. Reinsurance "clearing

houses'' or "exchanges,'' 185. "Share or

participating arrangements," 186. Reinsurance

'pools" or "syndicates, 187. Excess rein-

surance, 188. Reinsurance covering excess loss,

188. Application of the reinsurance contract to

the original insured, 189. State regulations

pertaining to reinsurance, 189.

XIV. POLICY ENDORSEMENTS IN FIRE INSURANCE

Standard policy not adapted to meet all kinds

of circumstances, 192. Forms or clauses descrip-

tive of the property or interest insured, 193.

Clauses describing the property, 193.
Clauses

describing the insured's interest, 194. Clauses

permitting changes in the location of the prop-

erty, 195. Clauses allowing an adjustment in

the insurance coverage, 195. Clauses extending

the insurance coverage, 195. Endorsements

limiting or distributing the indemnity, 196.

Endorsements decreasing the hazard, 196. Per-

mits, mostly suggested by the policy, which in-

crease the hazard, 198.

XV. USE AND OCCUPANCY, PROFITS, AND RENT IN-

The standard fire policy incomplete in its cov-

erage against loss by fire, 202. Use and occu-

pancy insurance, 203. Meaning and application

of use and occupancy insurance, 203. Items

usually constituting the value of use and occu-

pancy, 206, Policy definition of buildings,

machinery and equipment, 206. Company's

liability under use and occupancy insurance, 207.

Other leading provisions and endorsements, 208.

Profits and commissions insurance, 210. Lead-

ing differences between profits insurance and

use and occupancy insurance, 210. Nature of

the protection under profits insurance, 210.

Nature of the protection under commissions

insurance, 210. Policy provisions under profits

and commissions insurance, 211. Rent, rental

value, and leasehold insurance, 213. Nature of

service performed by rent insurance, 213. Mean-

ing of the several types of rent coverage, 214.

Leasehold insurance, 214. Ground rent insur-

ance, 215. Different degrees of coverage ob-

tainable under rent and rental value insurance,

The reserve defined, 217. Real purpose of the

reserve, 218. Legislative and state depart-

mental requirements for a reserve, 219. Ascer-

tainment of the reserve on the yearly basis,

220. Abstract of a company's financial report,

221. State insurance department's recapitula-

tion of fire risks and premiums, 222. Computa-

tion of the reserve by months, instead of by

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