N.Y. Insurance Law § 3408: Fire insurance; appraisal of loss; procedure for selection of umpire on failure to agree

§ 3408. Fire insurance; appraisal of loss; procedure for selection of

umpire on failure to agree. (a) Whenever application shall be made for

the selection of an umpire pursuant to the provisions relating to

appraisals contained in the standard fire insurance policy of the state

of New York it shall be made to a justice of the supreme court residing

in the county or to a county judge of the county in which the lost or

damaged property is or was located. The application shall be on five

days' notice in writing to the other party. Any such notice in writing,

when served by the insured, may be served upon any local agent of the

insurer.

(b) The court shall, on proof by affidavit of the failure or neglect

of the appraisers to agree upon and select an umpire within the time

provided in such policy, and of the service of notice pursuant to

subsection (a) hereof, forthwith appoint a competent and disinterested

person to act as such umpire in the ascertainment of the amount of such

loss or damage.

(c) In the event of a covered loss, whenever an insured or insurer

fails to proceed with an appraisal upon demand of the other, either

party may apply to the court in the manner provided in subsection (a) of

this section for an order directing the other to comply with such

demand. An appraisal shall determine the actual cash value, the

replacement cost, the extent of the loss or damage and the amount of the

loss or damage which shall be determined as specified in the policy and

shall proceed pursuant to the terms of the applicable appraisal clause

of the insurance policy and not as an arbitration. Notwithstanding the

provisions of this subsection, an appraisal shall not determine whether

the policy actually provides coverage for any portion of the claimed

loss or damage.