N.Y. Insurance Law § 3404: Fire insurance contracts; standard policy provisions; permissible variations

§ 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, for the term of ........, from the ........ day of

........., 19.. to the ........ day of ........, 19.. at noon, Standard

Time, at location of property 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

Concealment, fraud. This entire policy shall be void if, whether

before or after a loss, the insured has wilfully concealed or

misrepresented any material fact or circumstance concerning this

insurance or the subject thereof, or the interest of the insured

therein, or in case of any fraud or false swearing by the insured

relating thereto.

Uninsurable and excepted property. This policy shall not cover

accounts, bills, currency, deeds, evidences of debt, money or

securities; nor, unless specifically named hereon in writing, bullion or

manuscripts.

Perils not included. This Company shall not be liable for loss by fire

or other perils insured against in this policy caused, directly or

indirectly, by: (a) enemy attack by armed forces, including action taken

by military, naval or air forces in resisting an actual or an

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

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

of any civil authority except acts of destruction at the time of and for

the purpose of preventing the spread of fire, provided that such fire

did not originate from any of the perils excluded by this policy; (i)

neglect of the insured to use all reasonable means to save and preserve

the property at and after a loss, or when the property is endangered by

fire in neighboring premises; (j) nor shall this Company be liable for

loss by theft.

Other Insurance. Other insurance may be prohibited or the amount of

insurance may be limited by endorsement attached hereto.

Conditions suspending or restricting insurance. Unless otherwise

provided in writing added hereto this Company shall not be liable for

loss occurring

(a) while the hazard is increased by any means within the control or

knowledge of the insured; or

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

or tenant, is vacant or unoccupied beyond a period of sixty consecutive

days; or

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

event for loss by fire only.

Other perils or subjects. Any other peril to be insured against or

subject of insurance to be covered in this policy shall be by

endorsement in writing hereon or added hereto.

Added provisions. The extent of the application of insurance under

this policy and of the contribution to be made by this Company in case

of loss, and any other provision or agreement not inconsistent with the

provisions of this policy, may be provided for in writing added hereto,

but no provision may be waived except such as by the terms of this

policy is subject to change.

Waiver provisions. No permission affecting this insurance shall exist,

or waiver of any provision be valid, unless granted herein or expressed

in writing added hereto. No provision, stipulation or forfeiture shall

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

this Company relating to appraisal or to any examination provided for

herein.

Cancellation of policy. This policy shall be cancelled at any time at

the request of the insured, in which case this Company shall, upon

demand and surrender of this policy, refund the excess of paid premium

above the customary short rates for the expired time. This policy may be

cancelled at any time by this Company by giving to the insured a five

days' written notice of cancellation with or without tender of the

excess of paid premium above the pro rata premium for the expired time,

which excess, if not tendered, shall be refunded on demand. Notice of

cancellation shall state that said excess premium (if not tendered) will

be refunded on demand.

Mortgagee interests and obligations. If loss hereunder is made

payable, in whole or in part, to a designated mortgagee not named herein

as the insured, such interest in this policy may be cancelled by giving

to such mortgagee a ten days' written notice of cancellation.

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

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

sixty (60) days thereafter and shall be subject to the provisions hereof

relating to appraisal and time of payment and of bringing suit. If this

Company shall claim that no liability existed as to the mortgagor or

owner, it shall, to the extent of payment of loss to the mortgagee, be

subrogated to all the mortgagee's rights of recovery, but without

impairing mortgagee's right to sue; or it may pay off the mortgage debt

and require an assignment thereof and of the mortgage. Other provisions

relating to the interests and obligations of such mortgagee may be added

hereto by agreement in writing.

Pro rata liability. This Company shall not be liable for a greater

proportion of any loss than the amount hereby insured shall bear to the

whole insurance covering the property against the peril involved,

whether collectible or not.

Requirements in case loss occurs. The insured shall give immediate

written notice to this Company of any loss, protect the property from

further damage, forthwith separate the damaged and undamaged personal

property, put it in the best possible order, furnish a complete

inventory of the destroyed, damaged and undamaged property, showing in

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

and within sixty days after the loss, unless such time is extended in

writing by this Company, the insured shall render to this Company a

proof of loss, signed and sworn to by the insured, stating the knowledge

and belief of the insured as to the following: the time and origin of

the loss, the interest of the insured and of all others in the property,

the actual cash value of each item thereof and the amount of loss

thereto, all encumbrances thereon, all other contracts of insurance,

whether valid or not, covering any of said property, any changes in the

title, use, occupation, location, possession or exposures of said

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

any building herein described and the several parts thereof were

occupied at the time of loss and whether or not it then stood on leased

ground, and shall furnish a copy of all the descriptions and schedules

in all policies and, if required, verified plans and specifications of

any building, fixtures or machinery destroyed or damaged. The insured,

as often as may be reasonably required, shall exhibit to any person

designated by this Company all that remains of any property herein

described, and submit to examinations under oath by any person named by

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

required, shall produce for examination all books of account, bills,

invoices and other vouchers, or certified copies thereof if originals be

lost, at such reasonable time and place as may be designated by this

Company or its representative, and shall permit extracts and copies

thereof to be made.

Appraisal. In case the insured and this Company shall fail to agree as

to the actual cash value or the amount of loss, then, on the written

demand of either, each shall select a competent and disinterested

appraiser and notify the other of the appraiser selected within twenty

days of such demand. The appraisers shall first select a competent and

disinterested umpire; and failing for fifteen days to agree upon such

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

shall be selected by a judge of a court of record in the state in which

the property covered is located. The appraisers shall then appraise the

loss, stating separately actual cash value and loss to each item; and,

failing to agree, shall submit their differences, only, to the umpire.

An award in writing, so itemized, of any two when filed with this

Company shall determine the amount of actual cash value and loss. Each

appraiser shall be paid by the party selecting him and the expenses of

appraisal and umpire shall be paid by the parties equally.

Company's options. It shall be optional with this Company to take all,

or any part, of the property at the agreed or appraised value, and also

to repair, rebuild or replace the property destroyed or damaged with

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

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

the proof of loss herein required.

Abandonment. There can be no abandonment to this Company of any

property.

When loss payable. The amount of loss for which this Company may be

liable shall be payable sixty days after proof of loss, as herein

provided, is received by this Company and ascertainment of the loss is

made either by agreement between the insured and this Company expressed

in writing or by the filing with this Company of an award as herein

provided.

Suit. No suit or action on this policy for the recovery of any claim

shall be sustainable in any court of law or equity unless all the

requirements of this policy shall have been complied with, and unless

commenced within twenty-four months next after inception of the loss.

Subrogation. This Company may require from the insured an assignment

of all right of recovery against any party for loss to the extent that

payment therefor is made 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 uniform

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.