REAL ESTATE
AND
(Copyright. 1917, by Ths Record and Quids Oo.)
NEW YORK, SEPTEMBER 8, 1917
NEW STANDARD FIRE INSURANCE POLICY
Becomes Operative After January 1, 1918—Superintendent
Phillips Instructs Companies—Blanket Forms Prohibited
/^N January 1, 1918, the new standard
^^ fire insurance policy will go into
effect and this form of contract must
be strictly adhered to by both fire in¬
surance agents and companies. There
must be no variations from the form.
Following is a letter sent by Superin¬
tendent Phillips to stock fire insurance
companies:
"I am enclosing: herewith a copy of the
Standard Fire Insurance Policy of the
State of New York, as filed by me in
the State of New York on and after
January 1, 1918, under the directions
contained in section 121 of the Insurance
Law as amended by chapter 440 of the
Laws of 1917. I am also enclosing a
copy of chapter 440 of the Laws of
1917.
"I must call your attention most em¬
phatically to the provisions of section
121, and particularly to the last sentence
in the first paragraph of such section
forbidding the issuance or use in this'
State, after January 1, 1918, of any fire
insurance policy other than such as con¬
forms in all particulars as to blanks, size
of type, context, provisions, agreements
and conditions with such printed blank
form of contract or policy. It has been
the experience of this department that
insurance companies and their printers
were not sufficiently careful in the prep¬
aration of fire insurance policy forms.
I am going to insist upon a literal
compliance with the requirements of
law, and the representatives of your
company must, therefore, make sure
that the policies which are prepared
for use in this State on and after Janu¬
ary 1, 1918, conform exactly as to blanks,
size of type, context, provisions, agree¬
ments and conditions with the copy
herewith enclosed.
"In this connection and in order to
emphasize still more the necessity for
exact compliance, I call your attention
to section 1193 of the Penal Law as
amended by chapter 440 of the Laws
of 1917, and appearing on page 9 of
the copy of such law. You will note
therefrom that any corporation, officer
or agent issuing or delivering a fire
insurance policy on property in this
State which does not conform in all
particulars as to blanks, size of type,
context, provisions, a.ofreemcnts and
conditions with the policy form here¬
with enclosed is guilty of a misde¬
meanor punishable by a fine of not
less than $25 nor more than $100 for
the first offense, and of not less than
$100 nor more than $250 for each sub¬
sequent offense.
"By the provisions of the law here¬
with enclosed, you will note that the
new form enclosed herewith must be
used on and after January 1, 1918.
You^ will also note that the existing
section 121 of the Insurance Law re¬
quiring the use of the present form
is repealed, to take effect January 1.
1918. Therefore, the form now in use
must be used exclusively until that date.
T have received inquiries v.'ith respect
to the use of the large form of policv.
sometimes known as the 'blanket forni,'
and. inasmuch as there fs nothing in the
law authorizing its use, I would advise
you that, after January 1. 1918. such
blanket form, even containing the pro¬
visions of the new form, may not be
used.
"I call your attention to the following
paragraphs of the law:
"Under paragraph 1, the name of the
company, its location, date of incorpora¬
tion, description as 'stock' or 'mutual,'
and device or devices adopted by the
company, may be printed in the space
at the head of the policy entitled 'Space
for insertion of name of company or
companies issuing the policy and other
matter permitted to be stated at the
head of the policy.*
"Paragraph 2 prescribes the method
by which provision is to be made for
signatures.
"Paragraph 3 provides for the use of
the space entitled 'Space for description
of property' and also provides for agree¬
ments or riders. The requirements of
this paragraph should be very carefully
observed.
"Paragraph 4 requires the printing of
'Provisions required by law to be stated
in this policy.'*
"Paragraph 9 permits the printing
upon the filing back of the policy of the
name of the company, its location, cap¬
ital, device or devices adopted by it,
and the name of the agents. This para¬
graph also permits the addition at the
top of the filing back of the names of
any other States in which this precise
policy form may be standard.
"Paragraph 10 permits the printing at
any other point than upon the first and
second pages or the filing back, of the
names of officers and directors, and a
form providing for assignment of inter¬
est or removal, and a form of receipt,
subject to my approval. I may say, in
general, that I will approve the use of
the same forms in these receipts, as
were contained in the original policy
adopted in 1886, and which are still in
use by many companies.
"I also call your attention to the last
paragraph on page 7 of the law as here¬
with enclosed respecting the approval of
riders, endorsements, clauses, permits,
forms or other memoranda to be at-
, tached to and made a part of the con¬
tract. Subsequent rulings are to be ex¬
pected as to such forms.
"Please permit me to reiterate that all
company officials, employes and printers
preparing policies for companies should
observe most literally the provisions
of this law, in order to avoid the inevit¬
able embarrassments which will result
from a failure to strictly comply with
all its provisions.
"Please acknowledge receipt of this
letter at once, and when your forms are
printed, please send one copy thereof
to^ this department, so that we may re¬
tain same in our files. Do not send
copies or proofs in advance for approval.
We have no facilities for approviner same
nor is it our function under the law. It
is for you to see to it that your form
is in exact compliance with requirements,
not only to avoid unnecessary embar¬
rassments but the serious penalties to
which your attention has been called
above."
Accompanying the foregoing letter is
a copy of Chapter 440 of the New York
Laws of 1917, to which many references
are made in the superintendent's let¬
ter.
STANDARD FIRE INSURANCE POLICY OF NEW YORK
[Space for insertion of name of company or
companies issuing the policy and other matter
permitted to be stated at the head of the policy.]
No.......
Amount $...... Rate...... Premium .$......
In consideration of the stipulations herein
named any of ...... dollars premium does in¬
sure ......and legal representatives, to the ex¬
tent of the actual cash value (ascertained with
proper deductions for depreciation) of the prop¬
erty at the time of loss or damage, but not ex¬
ceeding 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 in¬
creased oost of repair or reconstruction by rea¬
son of any ordinance or law regulating con¬
struction or repair and without compensation
for loss resulting from interruption of business
or manufacture, for the term of......from the
......day of......in. .. at noon, to the......
day of ...... in... at noon, against all direct
loss and damage by fire and by removal from
premises endangered by fire, except aa 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 else¬
where, to wit: [Space for description of prop¬
erty. 1
This policy is made and accepted subject to
the foreeoing stipulations and conditions, and
to the stipulations and conditions printed on the
hack hereof, which arp 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.
In witness whereof, this company has executed
and attested these presents.
fSnace for date and for signatures and titles
of officers and agent.]
Fraud, mis-representatiem, r(r.—-This entire
policv shall be void if the insured has concealed
or misrepresented anv material fact or circum¬
stance concerning this insurance or the subject
thernof : or in case of anv fraud or false swear¬
ing bv the insured tnuchine any matter relating
to this insurance or the subject thereof, whether
before or after a loss.
Vninsnrohle and excentcd vronertu.—This
nolicy shall not rover accounts, .bills, currencv.
deeds, evidence of debt, money, notes or securi¬
ties ; nor, unless specifically named hereon In
writing, bullion, manuscripts, mechanical draw¬
ings, dies or patterns.
Hasiards not covered.—This company shall not
be liable for loss or damage caused directly or
indirectly by invasion, insurrection, riot, civil
war or commotion, or military or usurped power,
or by order of any civil authority; or by theft;
or by neglect of the insured to use all reason¬
able means to save and preserve the property
at and after a fire or when the property is en¬
dangered by fire in neighboring premises.
This entire policy shall be void, unless other¬
wise provided by agreement in writing added
hereto.
Oimership, eto.— (a) If the interest of the
insured be other than unconditional and sole
ownership ; or (b) if the subject of insurance
be a building on ground not owned by the in¬
sured in fee simple; or (c) if, with tbe knowl¬
edge of tbe insured, foreclosure proceedings be
commenced or notice given of sale of any prop¬
erty insured hereunder by reason of any mort¬
gage or trust deed; or (di if any change, other
than by the death of an insured, take place in
the interest, title or possession of the subiect of
insurance (except change of occupants without
increase of hazard) ; or (e) if this policy be
assigned before a loss.
TTnless otherwise provided by agreement in
writing added hereto this company shall not be
liable for loss or damage occurring.
Other insvrnnre.— (a) While the insured shall
have any other contract of insurance, whether
valid or not. on property covered in whole or in
part by this policy; or
Increase of ha::ard.— (b") while the hazard Is
increased by any means within the control or
knowledge of the insured ; or
Repairs, etc.—(c) while mechanics are em¬
ployed in building, altering or repairing the de¬
scribed premises beyond a period of fifteen days;
or
Explosives, gas, etc.—(di while Illuminating
gas or vapor is generated on the described
premises; or while (any usage or custom to the
contrary notwithstandine:) there Is kept, used
or allowed on the described premises fireworks,
?reek fire, phosphorus, exniosives. benzine. g.Tso-
lene. naphtha or any other petroleum product
of greater inflammability than kerosene oil,
gunpowder exceeding twentv-five pounds, or
kerosene oil exceeding five barrels ; or
Factories.— (e) if the subject of insurance
be a manufacturing establishment while operat¬
ed in whole or in part between the hours of ten
___ llECORD AND GUIDB IS IX ITS FIFTIETH YEAR OF CONTINUOUS PUBLICATION.