N.Y. ISC Law § 3404 — New York Code / Act ISC / Article 34 / Section 3404
Fire insurance contracts; standard policy provisions; permissible variations
Status: in_force

§ 3404. Fire insurance contracts; standard policy provisions;\npermissible variations. (a) The printed form of a policy of fire\ninsurance, as set forth in subsection (e) hereof, shall be known and\ndesignated as the "standard fire insurance policy of the state of New\nYork."\n  (b) (1) No policy or contract of fire insurance shall be made, issued\nor delivered by any insurer or by any agent or representative thereof,\non any property in this state, unless it shall conform as to all\nprovisions, stipulations, agreements and conditions with such form of\npolicy, except policies subject to the provisions of section three\nthousand one hundred two of this chapter which shall be required to\ncomply with the provisions of paragraph one of subsection (f) of this\nsection.\n  (2) There shall be printed or typewritten at the head of such policy\nthe name and home office address of the insurer or insurers issuing the\npolicy and a statement whether such insurer or insurers are stock or\nmutual corporations or are reciprocal insurers or Lloyds underwriters.\nIn lieu of such statement a corporation organized under a special act of\nthe legislature of any state may so indicate upon its policy. The head\nof the policy may also have such devices as the insurer or insurers\nissuing it desire.\n  (3) The standard fire insurance policy need not be used for effecting\nreinsurance between insurers.\n  (4) If the policy is issued by a mutual, cooperative or reciprocal\ninsurer having special regulations with respect to the payment by the\npolicyholder of assessments, such regulations shall be printed upon the\npolicy, and any such insurer may print upon the policy such regulations\nas may be appropriate to or required by its form of organization.\n  (c) Two or more insurers authorized to do the business of fire\ninsurance in this state may, with the approval of the superintendent,\nissue a combination standard form of fire insurance policy which shall\ncontain the following provisions:\n  (1) A provision substantially to the effect that the insurers\nexecuting such policy shall be severally liable for the full amount of\nany loss or damage, according to the terms of the policy, or for\nspecified percentages or amounts thereof, aggregating the full amount of\nsuch insurance under such policy.\n  (2) A provision substantially to the effect that service of process,\nor of any notice or proof of loss required by such policy, upon any of\nthe insurers executing such policy, shall be deemed to be service upon\nall such insurers.\n  (d) (1) Appropriate forms of a supplemental contract or contracts or\nextended coverage endorsements insuring against one or more of the\nperils which the insurer is empowered to insure, in addition to the\nperils covered by such standard fire insurance policy, may be approved\nby the superintendent, who may authorize their use in connection with a\nstandard fire insurance policy.\n  (2) The first page of the policy, in a form approved by the\nsuperintendent, may be rearranged to provide space for the listing of\namounts of insurance, rates and premiums for the basic coverages insured\nunder the standard form of policy and for additional coverages or perils\ninsured under attached endorsements, and such other data as may be\nconveniently included for duplication on daily reports for office\nrecords.\n  (e) The form of the standard fire insurance policy of the state of New\nYork (with permission to substitute for the word "company" a more\naccurate descriptive term for the type of insurer) shall be as follows:\n                   FIRST PAGE OF STANDARD FIRE POLICY\n   No. ............\n  [Space for insertion of name of company or companies issuing the\n  policy and other matter permitted to be stated at the head of the\npolicy.]\n  [Space for listing amounts of insurance, rates and premiums for the\n  basic coverages insured under the standard form of policy and for\n  additional coverages or perils insured under endorsements attached.]\n  In Consideration of the Provisions and Stipulations herein or added\nhereto and of .......................................... Dollars Premium\nthis Company, for the term of ........, from the ........ day of\n........., 19..  to the ........ day of ........, 19.. at noon, Standard\nTime, at location of property involved, does insure\n..........................  and legal representatives, TO THE LESSER\nAMOUNT OF EITHER:\n  .1) THE ACTUAL CASH VALUE OF THE PROPERTY AT THE TIME OF THE LOSS, OR\n  2) THE AMOUNT WHICH IT WOULD COST TO REPAIR OR REPLACE THE PROPERTY\nWITH MATERIAL OF LIKE KIND AND QUALITY WITHIN A REASONABLE TIME AFTER\nSUCH LOSS, WITHOUT ALLOWANCE FOR ANY INCREASED COST OF REPAIR OR\nRECONSTRUCTION BY REASON OF ANY ORDINANCE OR LAW REGULATING CONSTRUCTION\nOR REPAIR, AND WITHOUT COMPENSATION FOR LOSS RESULTING FROM INTERRUPTION\nOF BUSINESS OR MANUFACTURE, OR\n  3) TO AN AMOUNT NOT EXCEEDING ................ DOLLARS, BUT IN ANY\nEVENT FOR NO MORE THAN THE INTEREST OF THE INSURED, AGAINST ALL DIRECT\nLOSS BY FIRE, LIGHTNING AND BY REMOVAL FROM PREMISES ENDANGERED BY THE\nPERILS INSURED AGAINST IN THIS POLICY, EXCEPT AS HEREINAFTER PROVIDED,\nto the property described hereinafter while located or contained as\ndescribed in this policy, or pro rata for five days at each proper place\nto which any of the property shall necessarily be removed for\npreservation from the perils insured against in this policy, but not\nelsewhere.\n  Assignment of this policy shall not be valid except with the written\nconsent of this Company.\n  This policy is made and accepted subject to the foregoing provisions\nand stipulations and those hereinafter stated, which are hereby made a\npart of this policy, together with such other provisions, stipulations\nand agreements as may be added hereto, as provided in this policy.\nIn Witness Whereof, this Company has executed and attested these\npresents; but this policy shall not be valid unless countersigned by the\nduly authorized Agent of this Company at ...............................\n.........................................................................\n.........................................................................\n                    Secretary.                              President.\n  Countersigned this .... day of ....., 19 ....   ......................\n                                                            Agent.\n                   SECOND PAGE OF STANDARD FIRE POLICY\n  Concealment, fraud. This entire policy shall be void if, whether\nbefore or after a loss, the insured has wilfully concealed or\nmisrepresented any material fact or circumstance concerning this\ninsurance or the subject thereof, or the interest of the insured\ntherein, or in case of any fraud or false swearing by the insured\nrelating thereto.\n  Uninsurable and excepted property. This policy shall not cover\naccounts, bills, currency, deeds, evidences of debt, money or\nsecurities; nor, unless specifically named hereon in writing, bullion or\nmanuscripts.\n  Perils not included. This Company shall not be liable for loss by fire\nor other perils insured against in this policy caused, directly or\nindirectly, by: (a) enemy attack by armed forces, including action taken\nby military, naval or air forces in resisting an actual or an\nimmediately impending enemy attack; (b) invasion; (c) insurrection; (d)\nrebellion; (e) revolution; (f) civil war; (g) usurped power; (h) order\nof any civil authority except acts of destruction at the time of and for\nthe purpose of preventing the spread of fire, provided that such fire\ndid not originate from any of the perils excluded by this policy; (i)\nneglect of the insured to use all reasonable means to save and preserve\nthe property at and after a loss, or when the property is endangered by\nfire in neighboring premises; (j) nor shall this Company be liable for\nloss by theft.\n  Other Insurance. Other insurance may be prohibited or the amount of\ninsurance may be limited by endorsement attached hereto.\n  Conditions suspending or restricting insurance. Unless otherwise\nprovided in writing added hereto this Company shall not be liable for\nloss occurring\n(a) while the hazard is increased by any means within the control or\nknowledge of the insured; or\n(b) while a described building, whether intended for occupancy by owner\nor tenant, is vacant or unoccupied beyond a period of sixty consecutive\ndays; or\n(c) as a result of explosion or riot, unless fire ensue, and in that\nevent for loss by fire only.\n  Other perils or subjects. Any other peril to be insured against or\nsubject of insurance to be covered in this policy shall be by\nendorsement in writing hereon or added hereto.\n  Added provisions. The extent of the application of insurance under\nthis policy and of the contribution to be made by this Company in case\nof loss, and any other provision or agreement not inconsistent with the\nprovisions of this policy, may be provided for in writing added hereto,\nbut no provision may be waived except such as by the terms of this\npolicy is subject to change.\n  Waiver provisions. No permission affecting this insurance shall exist,\nor waiver of any provision be valid, unless granted herein or expressed\nin writing added hereto. No provision, stipulation or forfeiture shall\nbe held to be waived by any requirement or proceeding on the part of\nthis Company relating to appraisal or to any examination provided for\nherein.\n  Cancellation of policy. This policy shall be cancelled at any time at\nthe request of the insured, in which case this Company shall, upon\ndemand and surrender of this policy, refund the excess of paid premium\nabove the customary short rates for the expired time. This policy may be\ncancelled at any time by this Company by giving to the insured a five\ndays' written notice of cancellation with or without tender of the\nexcess of paid premium above the pro rata premium for the expired time,\nwhich excess, if not tendered, shall be refunded on demand. Notice of\ncancellation shall state that said excess premium (if not tendered) will\nbe refunded on demand.\n  Mortgagee interests and obligations. If loss hereunder is made\npayable, in whole or in part, to a designated mortgagee not named herein\nas the insured, such interest in this policy may be cancelled by giving\nto such mortgagee a ten days' written notice of cancellation.\n  If the insured fails to render proof of loss such mortgagee, upon\nnotice, shall render proof of loss in the form herein specified within\nsixty (60) days thereafter and shall be subject to the provisions hereof\nrelating to appraisal and time of payment and of bringing suit. If this\nCompany shall claim that no liability existed as to the mortgagor or\nowner, it shall, to the extent of payment of loss to the mortgagee, be\nsubrogated to all the mortgagee's rights of recovery, but without\nimpairing mortgagee's right to sue; or it may pay off the mortgage debt\nand require an assignment thereof and of the mortgage. Other provisions\nrelating to the interests and obligations of such mortgagee may be added\nhereto by agreement in writing.\n  Pro rata liability. This Company shall not be liable for a greater\nproportion of any loss than the amount hereby insured shall bear to the\nwhole insurance covering the property against the peril involved,\nwhether collectible or not.\n  Requirements in case loss occurs. The insured shall give immediate\nwritten notice to this Company of any loss, protect the property from\nfurther damage, forthwith separate the damaged and undamaged personal\nproperty, put it in the best possible order, furnish a complete\ninventory of the destroyed, damaged and undamaged property, showing in\ndetail quantities, costs, actual cash value and amount of loss claimed;\nand within sixty days after the loss, unless such time is extended in\nwriting by this Company, the insured shall render to this Company a\nproof of loss, signed and sworn to by the insured, stating the knowledge\nand belief of the insured as to the following: the time and origin of\nthe loss, the interest of the insured and of all others in the property,\nthe actual cash value of each item thereof and the amount of loss\nthereto, all encumbrances thereon, all other contracts of insurance,\nwhether valid or not, covering any of said property, any changes in the\ntitle, use, occupation, location, possession or exposures of said\nproperty since the issuing of this policy, by whom and for what purpose\nany building herein described and the several parts thereof were\noccupied at the time of loss and whether or not it then stood on leased\nground, and shall furnish a copy of all the descriptions and schedules\nin all policies and, if required, verified plans and specifications of\nany building, fixtures or machinery destroyed or damaged. The insured,\nas often as may be reasonably required, shall exhibit to any person\ndesignated by this Company all that remains of any property herein\ndescribed, and submit to examinations under oath by any person named by\nthis Company, and subscribe the same; and, as often as may be reasonably\nrequired, shall produce for examination all books of account, bills,\ninvoices and other vouchers, or certified copies thereof if originals be\nlost, at such reasonable time and place as may be designated by this\nCompany or its representative, and shall permit extracts and copies\nthereof to be made.\n  Appraisal. In case the insured and this Company shall fail to agree as\nto the actual cash value or the amount of loss, then, on the written\ndemand of either, each shall select a competent and disinterested\nappraiser and notify the other of the appraiser selected within twenty\ndays of such demand. The appraisers shall first select a competent and\ndisinterested umpire; and failing for fifteen days to agree upon such\numpire, then, on request of the insured or this Company, such umpire\nshall be selected by a judge of a court of record in the state in which\nthe property covered is located. The appraisers shall then appraise the\nloss, stating separately actual cash value and loss to each item; and,\nfailing to agree, shall submit their differences, only, to the umpire.\nAn award in writing, so itemized, of any two when filed with this\nCompany shall determine the amount of actual cash value and loss. Each\nappraiser shall be paid by the party selecting him and the expenses of\nappraisal and umpire shall be paid by the parties equally.\n  Company's options. It shall be optional with this Company to take all,\nor any part, of the property at the agreed or appraised value, and also\nto repair, rebuild or replace the property destroyed or damaged with\nother of like kind and quality within a reasonable time, on giving\nnotice of its intention so to do within thirty days after the receipt of\nthe proof of loss herein required.\n  Abandonment. There can be no abandonment to this Company of any\nproperty.\n  When loss payable. The amount of loss for which this Company may be\nliable shall be payable sixty days after proof of loss, as herein\nprovided, is received by this Company and ascertainment of the loss is\nmade either by agreement between the insured and this Company expressed\nin writing or by the filing with this Company of an award as herein\nprovided.\n  Suit. No suit or action on this policy for the recovery of any claim\nshall be sustainable in any court of law or equity unless all the\nrequirements of this policy shall have been complied with, and unless\ncommenced within twenty-four months next after inception of the loss.\n  Subrogation. This Company may require from the insured an assignment\nof all right of recovery against any party for loss to the extent that\npayment therefor is made by this Company.\n                   THIRD PAGE OF STANDARD FIRE POLICY\n                       ATTACH FORM BELOW THIS LINE\n                      BACK OF STANDARD FIRE POLICY\n                               (OPTIONAL)\n             Standard Fire Insurance Policy of the States of\n          Expires _______________________________________\n          Property ______________________________________\n          Assured _______________________________________\n                  No. _______________________\n                                (COMPANY)\n          It is important that the written portions of all\n          policies covering the same property read exactly\n          alike. If they do not, they should be made uniform\n          at once.\n  (f) (1) Subject to the approval of the superintendent, a policy which\ninsures solely against the peril of fire or which insures against the\nperil of fire in combination with other kinds of insurance either for a\ndivisible or indivisible premium need not comply with the provisions of\nsubsection (e) of this section, provided:\n  (A) the policy contains, with respect to the peril of fire, terms and\nprovisions no less favorable to the insured than those contained in the\nstandard fire policy;\n  (B) the provisions in relation to mortgagee interests and obligations\nin such standard fire policy are incorporated without substantive\nchange; and\n  (C) the policy or contract is complete as to all of its terms without\nreference to the standard form fire insurance policy or any other\npolicy.\n  (2) Policies of automobile or aircraft physical damage insurance or\npolicies of inland marine insurance may be issued as heretofore without\nreference to the limitations contained in paragraph one of this\nsubsection.\n  (g) Notwithstanding any other provision of law to the contrary, the\nprovisions of the appraisal clause set out on the second page of the\nstandard fire policy and the provisions of section three thousand four\nhundred eight of this article, including determinations as to the amount\nof loss or damage rendered thereunder, shall be binding on all parties\nto the contract of insurance evidenced by the policy and may be enforced\nby either the insurer or the insured by application made pursuant to\nsubsection (c) of section three thousand four hundred eight of this\narticle.\n  (h) As used in this section, "binder" means a written document (1)\nwhich includes the name and address of the insured and any additional\nnamed insureds, mortgagees, or lienholders; a description of the\nproperty insured; a description of the nature and amount of coverage\nwhich shall be deemed to include the terms of the standard fire\ninsurance policy except as conspicuously noted on the binder; the\nidentity of the insurer and of the authorized representative executing\nthe binder; the effective date of coverage; the binder number or the\npolicy number where applicable to a policy extension, and (2) which\ntemporarily obligates the insurer to provide that insurance coverage\npending issuance of the insurance policy. The cancellation of such a\nbinder shall be governed at the minimum by the provisions of the\nstandard fire insurance policy and the provisions of this chapter\napplicable thereto. No exempt organization, as defined in section five\nhundred ninety of the banking law, or licensed mortgage banker which\noriginates mortgage loans shall, at the time of title closing for a loan\nsecured by a one to four family residential real property, refuse to\naccept a binder, issued by an insurer, or a duly authorized\nrepresentative of an insurer, licensed to do business in this state, as\nevidence that hazard insurance has been procured for the mortgaged\npremises. Nothing herein is intended to prohibit the mortgage banker or\nexempt organization from requiring the borrower to also furnish a\nreceipt indicating that the annual or installment premium on such\ninsurance policy has been paid.\n