New York Consolidated Laws, Insurance Law - ISC § 3404. Fire insurance contracts;  standard policy provisions;  permissible variations

(a) The printed form of a policy of fire insurance, as set forth in subsection (e) hereof, shall be known and designated as the “standard fire insurance policy of the state of New York.”

(b)(1) No policy or contract of fire insurance shall be made, issued or delivered by any insurer or by any agent or representative thereof, on any property in this state, unless it shall conform as to all provisions, stipulations, agreements and conditions with such form of policy, except policies subject to the provisions of section three thousand one hundred two of this chapter which shall be required to comply with the provisions of paragraph one of subsection (f) of this section.

(2) There shall be printed or typewritten at the head of such policy the name and home office address of the insurer or insurers issuing the policy and a statement whether such insurer or insurers are stock or mutual corporations or are reciprocal insurers or Lloyds underwriters.  In lieu of such statement a corporation organized under a special act of the legislature of any state may so indicate upon its policy.  The head of the policy may also have such devices as the insurer or insurers issuing it desire.

(3) The standard fire insurance policy need not be used for effecting reinsurance between insurers.

(4) If the policy is issued by a mutual, cooperative or reciprocal insurer having special regulations with respect to the payment by the policyholder of assessments, such regulations shall be printed upon the policy, and any such insurer may print upon the policy such regulations as may be appropriate to or required by its form of organization.

(c) Two or more insurers authorized to do the business of fire insurance in this state may, with the approval of the superintendent, issue a combination standard form of fire insurance policy which shall contain the following provisions:

(1) A provision substantially to the effect that the insurers executing such policy shall be severally liable for the full amount of any loss or damage, according to the terms of the policy, or for specified percentages or amounts thereof, aggregating the full amount of such insurance under such policy.

(2) A provision substantially to the effect that service of process, or of any notice or proof of loss required by such policy, upon any of the insurers executing such policy, shall be deemed to be service upon all such insurers.

(d)(1) Appropriate forms of a supplemental contract or contracts or extended coverage endorsements insuring against one or more of the perils which the insurer is empowered to insure, in addition to the perils covered by such standard fire insurance policy, may be approved by the superintendent, who may authorize their use in connection with a standard fire insurance policy.

(2) The first page of the policy, in a form approved by the superintendent, may be rearranged to provide space for the listing of amounts of insurance, rates and premiums for the basic coverages insured under the standard form of policy and for additional coverages or perils insured under attached endorsements, and such other data as may be conveniently included for duplication on daily reports for office records.

(e) The form of the standard fire insurance policy of the state of New York (with permission to substitute for the word “company” a more accurate descriptive term for the type of insurer) shall be as follows:

FIRST PAGE OF STANDARD FIRE POLICY

No. ․․․․․․․․․․․․

[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.]

[Space for listing amounts of insurance, rates and premiums for the basic coverages insured under the standard form of policy and for additional coverages or perils insured under endorsements attached.]

 In Consideration of the Provisions and Stipulations herein or added hereto

and of ․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․ Dollars Premium

this Company,

)

(

at noon, Standard Time,

for the term

)

from the ․․․ day of ․․․, 19․․․

(

at location of property

of ․․․․․․․․․․․․․․․․․

)

to the ․․․ day of ․․․․, 19․․․․

(

involved,

does insure ․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․

and legal representatives, TO THE LESSER AMOUNT OF EITHER:

   1) THE ACTUAL CASH VALUE OF THE PROPERTY AT THE TIME OF THE LOSS, OR

   2) THE AMOUNT WHICH IT WOULD COST TO REPAIR OR REPLACE THE PROPERTY WITH MATERIAL OF LIKE KIND AND QUALITY WITHIN A REASONABLE TIME AFTER SUCH LOSS, WITHOUT ALLOWANCE FOR ANY INCREASED COST OF REPAIR OR RECONSTRUCTION BY REASON OF ANY ORDINANCE OR LAW REGULATING CONSTRUCTION OR REPAIR, AND WITHOUT COMPENSATION FOR LOSS RESULTING FROM INTERRUPTION OF BUSINESS OR MANUFACTURE, OR

   3) TO AN AMOUNT NOT EXCEEDING ........ DOLLARS, BUT IN ANY EVENT FOR NO MORE THAN THE INTEREST OF THE INSURED, AGAINST ALL DIRECT LOSS BY FIRE, LIGHTNING AND BY REMOVAL FROM PREMISES ENDANGERED BY THE PERILS INSURED AGAINST IN THIS POLICY, EXCEPT AS HEREINAFTER PROVIDED, to the property described hereinafter while located or contained as described in this policy, or pro rata for five days at each proper place to which any of the property shall necessarily be removed for preservation from the perils insured against in this policy, but not elsewhere.

   Assignment of this policy shall not be valid except with the written consent of this Company.

   This policy is made and accepted subject to the foregoing provisions and stipulations and those hereinafter stated, which are hereby made a part of this policy, together with such other provisions, stipulations and agreements as may be added hereto, as provided in this policy.

In Witness Whereof,  this Company has executed and attested these presents;  but this policy shall

not be valid unless countersigned by the duly authorized Agent of this Company at ․․․․․․․․․․․․․․․․․

․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․

Secretary.

President.

Countersigned this ․․․․․ day of ․․․․․․․․․․, 19․․․․․․․․․․․․․․․․․

․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․

AGENT. 

SECOND PAGE OF STANDARD FIRE POLICY

  1

Concealment,

This entire policy shall be void if, whether

  2

fraud.

before or after a loss, the insured has wil-

  3

fully concealed or misrepresented any ma-

  4

terial fact or circumstance concerning this insurance or the

  5

subject thereof, or the interest of the insured therein, or in case

  6

of any fraud or false swearing by the insured relating thereto.

  7

Uninsurable

This policy shall not cover accounts, bills,

  8

    and

currency, deeds, evidences of debt, money or

  9

excepted property.

securities;  nor, unless specifically named

 10

hereon in writing, bullion or manuscripts.

 11

Perils not

This Company shall not be liable for loss by

 12

included.

fire or other perils insured against in this

 13

policy caused, directly or indirectly, by:  (a)

 14

enemy attack by armed forces, including action taken by mili-

 15

tary, naval or air forces in resisting an actual or an immediately

 16

impending enemy attack;  (b) invasion;  (c) insurrection;  (d)

 17

rebellion;  (e) revolution;  (f) civil war;  (g) usurped power;  (h)

 18

order of any civil authority except acts of destruction at the time

 19

of and for the purpose of preventing the spread of fire, provided

 20

that such fire did not originate from any of the perils excluded

 21

by this policy;  (i) neglect of the insured to use all reasonable

 22

means to save and preserve the property at and after a loss, or

 23

when the property is endangered by fire in neighboring prem-

 24

ises;  (j) nor shall this Company be liable for loss by theft.

 25

Other Insurance.

Other insurance may be prohibited or the

 26

amount of insurance may be limited by en-

 27

dorsement attached hereto.

 28

Conditions suspending or restricting insurance.  Unless other-

 29

wise provided in writing added hereto this Company shall not

 30

be liable for loss occurring

 31

(a) while the hazard is increased by any means within the con-

 32

trol or knowledge of the insured;  or

 33

(b) while a described building, whether intended for occupancy

 34

by owner or tenant, is vacant or unoccupied beyond a period of

 35

sixty consecutive days;  or

 36

(c) as a result of explosion or riot, unless fire ensue, and in

 37

that event for loss by fire only.

 38

Other perils

Any other peril to be insured against or sub-

 39

or subjects.

ject of insurance to be covered in this policy

 40

shall be by endorsement in writing hereon or

 41

added hereto.

 42

Added provisions.

The extent of the application of insurance

 43

under this policy and of the contribution to

 44

be made by this Company in case of loss, and any other pro-

 45

vision or agreement not inconsistent with the provisions of this

 46

policy, may be provided for in writing added hereto, but no pro-

 47

vision may be waived except such as by the terms of this policy

 48

is subject to change.

 49

Waiver

No permission affecting this insurance shall

 50

provisions.

exist, or waiver of any provision be valid,

 51

unless granted herein or expressed in writing

 52

added hereto.  No provision, stipulation or forfeiture shall be

 53

held to be waived by any requirement or proceeding on the part

 54

of this Company relating to appraisal or to any examination

 55

provided for herein.

 56

Cancellation

This policy shall be cancelled at any time

 57

of policy.

at the request of the insured, in which case

 58

this Company shall, upon demand and sur-

 59

render of this policy, refund the excess of paid premium above

 60

the customary short rates for the expired time.  This pol-

 61

icy may be cancelled at any time by this Company by giving

 62

to the insured a five days' written notice of cancellation with

 63

or without tender of the excess of paid premium above the pro

 64

rata premium for the expired time, which excess, if not ten-

 65

dered, shall be refunded on demand.  Notice of cancellation shall

 66

state that said excess premium (if not tendered) will be re-

 67

funded on demand.

 68

Mortgagee

If loss hereunder is made payable, in whole

 69

interests and

or in part, to a designated mortgagee not

 70

obligations.

named herein as the insured, such interest in

 71

this policy may be cancelled by giving to such

 72

mortgagee a ten days' written notice of can-

 73

cellation.

 74

If the insured fails to render proof of loss such mortgagee, upon

 75

notice, shall render proof of loss in the form herein specified

 76

within sixty (60) days thereafter and shall be subject to the pro-

 77

visions hereof relating to appraisal and time of payment and of

 78

bringing suit.  If this Company shall claim that no liability ex-

 79

isted as to the mortgagor or owner, it shall, to the extent of pay-

 80

ment of loss to the mortgagee, be subrogated to all the mort-

 81

gagee's rights of recovery, but without impairing mortgagee's

 82

right to sue;  or it may pay off the mortgage debt and require

 83

an assignment thereof and of the mortgage.  Other provisions

 84

relating to the interests and obligations of such mortgagee may

 85

be added hereto by agreement in writing.

 86

Pro rata liability.

This Company shall not be liable for a greater

 87

proportion of any loss than the amount

 88

hereby insured shall bear to the whole insurance covering the

 89

property against the peril involved, whether collectible or not.

 90

Requirements in

The insured shall give immediate written

 91

case loss occurs.

notice to this Company of any loss, protect

 92

the property from further damage, forthwith

 93

separate the damaged and undamaged personal property, put

 94

it in the best possible order, furnish a complete inventory of

 95

the destroyed, damaged and undamaged property, showing in

 96

detail quantities, costs, actual cash value and amount of loss

 97

claimed;  and within sixty days after the loss, unless such time

 98

is extended in writing by this Company, the insured shall render

 99

to this Company a proof of loss, signed and sworn to by the

100

insured, stating the knowledge and belief of the insured as to

101

the following:  the time and origin of the loss, the interest of the

102

insured and of all others in the property, the actual cash value of

103

each item thereof and the amount of loss thereto, all encum-

104

brances thereon, all other contracts of insurance, whether valid

105

or not, covering any of said property, any changes in the title,

106

use, occupation, location, possession or exposures of said prop-

107

erty since the issuing of this policy, by whom and for what

108

purpose any building herein described and the several parts

109

thereof were occupied at the time of loss and whether or not it

110

then stood on leased ground, and shall furnish a copy of all the

111

descriptions and schedules in all policies and, if required, verified

112

plans and specifications of any building, fixtures or machinery

113

destroyed or damaged.  The insured, as often as may be reason-

114

ably required, shall exhibit to any person designated by this

115

Company all that remains of any property herein described, and

116

submit to examinations under oath by any person named by this

117

Company, and subscribe the same;  and, as often as may be

118

reasonably required, shall produce for examination all books of

119

account, bills, invoices and other vouchers, or certified copies

120

thereof if originals be lost, at such reasonable time and place as

121

may be designated by this Company or its representative, and

122

shall permit extracts and copies thereof to be made.

123

Appraisal.

In case the insured and this Company shall

124

fail to agree as to the actual cash value or

125

the amount of loss, then, on the written demand of either, each

126

shall select a competent and disinterested appraiser and notify

127

the other of the appraiser selected within twenty days of such

128

demand.  The appraisers shall first select a competent and dis-

129

interested umpire;  and failing for fifteen days to agree upon

130

such umpire, then, on request of the insured or this Company,

131

such umpire shall be selected by a judge of a court of record in

132

the state in which the property covered is located.  The ap-

133

praisers shall then appraise the loss, stating separately actual

134

cash value and loss to each item;  and, failing to agree, shall

135

submit their differences, only, to the umpire.  An award in writ-

136

ing, so itemized, of any two when filed with this Company shall

137

determine the amount of actual cash value and loss.  Each

138

appraiser shall be paid by the party selecting him and the ex-

139

penses of appraisal and umpire shall be paid by the parties

140

equally.

141

Company's

It shall be optional with this Company to

142

options.

take all, or any part, of the property at the

143

agreed or appraised value, and also to re-

144

pair, rebuild or replace the property destroyed or damaged with

145

other of like kind and quality within a reasonable time, on giv-

146

ing notice of its intention so to do within thirty days after the

147

receipt of the proof of loss herein required.

148

Abandonment.

There can be no abandonment to this Com-

149

pany of any property.

150

When loss

The amount of loss for which this Company

151

payable.

may be liable shall be payable sixty days

152

after proof of loss, as herein provided, is

153

received by this Company and ascertainment of the loss is made

154

either by agreement between the insured and this Company ex-

155

pressed in writing or by the filing with this Company of an

156

award as herein provided.

157

Suit.

No suit or action on this policy for the recov-

158

ery of any claim shall be sustainable in any

159

court of law or equity unless all the requirements of this policy

160

shall have been complied with, and unless commenced within

161

twenty-four months next after inception of the loss.

162

Subrogation.

This Company may require from the insured

163

an assignment of all right of recovery against

164

any party for loss to the extent that payment therefor is made

165

by this Company.

THIRD PAGE OF STANDARD FIRE POLICY

ATTACH FORM BELOW THIS LINE

BACK OF STANDARD FIRE POLICY

(OPTIONAL)

Standard Fire Insurance Policy of the States of

Expires____________________________________________________________________________________________

Property___________________________________________________________________________________________

Assured____________________________________________________________________________________________

No. ____________

(COMPANY)

It is important that the written portions of all

policies covering the same property read exactly

alike.  If they do not, they should be made uni-

form at once.

(f)(1) Subject to the approval of the superintendent, a policy which insures solely against the peril of fire or which insures against the peril of fire in combination with other kinds of insurance either for a divisible or indivisible premium need not comply with the provisions of subsection (e) of this section, provided:

(A) the policy contains, with respect to the peril of fire, terms and provisions no less favorable to the insured than those contained in the standard fire policy;

(B) the provisions in relation to mortgagee interests and obligations in such standard fire policy are incorporated without substantive change;  and

(C) the policy or contract is complete as to all of its terms without reference to the standard form fire insurance policy or any other policy.

(2) Policies of automobile or aircraft physical damage insurance or policies of inland marine insurance may be issued as heretofore without reference to the limitations contained in paragraph one of this subsection.

(g) Notwithstanding any other provision of law to the contrary, the provisions of the appraisal clause set out on the second page of the standard fire policy and the provisions of section three thousand four hundred eight of this article, including determinations as to the amount of loss or damage rendered thereunder, shall be binding on all parties to the contract of insurance evidenced by the policy and may be enforced by either the insurer or the insured by application made pursuant to subsection (c) of section three thousand four hundred eight of this article.

(h) As used in this section, “binder” means a written document (1) which includes the name and address of the insured and any additional named insureds, mortgagees, or lienholders;  a description of the property insured;  a description of the nature and amount of coverage which shall be deemed to include the terms of the standard fire insurance policy except as conspicuously noted on the binder;  the identity of the insurer and of the authorized representative executing the binder;  the effective date of coverage;  the binder number or the policy number where applicable to a policy extension, and (2) which temporarily obligates the insurer to provide that insurance coverage pending issuance of the insurance policy.  The cancellation of such a binder shall be governed at the minimum by the provisions of the standard fire insurance policy and the provisions of this chapter applicable thereto.  No exempt organization, as defined in section five hundred ninety of the banking law , or licensed mortgage banker which originates mortgage loans shall, at the time of title closing for a loan secured by a one to four family residential real property, refuse to accept a binder, issued by an insurer, or a duly authorized representative of an insurer, licensed to do business in this state, as evidence that hazard insurance has been procured for the mortgaged premises.  Nothing herein is intended to prohibit the mortgage banker or exempt organization from requiring the borrower to also furnish a receipt indicating that the annual or installment premium on such insurance policy has been paid.


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