Columbia University Libraries Digital Collections: The Real Estate Record

Real estate record and builders' guide: [v. 100, no. 2582: Articles]: September 8, 1917

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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.