Fort Worth gazette. [volume] (Fort Worth, Tex.) 1891-1898, 1894-03-22
THE INSURANCE CLAUSE
Adopted by the Texas Insur-
anoe Club at Dallas,
wmCH has RAISED A BIG x1oK.
Showing. from the standpoins OF the
Poiicy-makors, that IL is Fair
and Equitable to Both Par
ties to the Contract


PLANT among the merchants OF Fort
Worth and the property owners on 10
count OF what is called the Equitable
Company Insurance and Contribution
Clause" which was adopted by the
Texas Insurance club at a meeting
lheld In Dallas on February 2s. The
Texas Insurance club Is composed OF
the general officers OF All IRE insurance
companies doing business in the state.
When Mr.. Stuart Harrison OF the
firm OF HCrrlson Il Wright was asked
for a detailed explanation OF the new
clause. Its full scope and operation.
he said that the existence OF the clause
nna lts meaning were not generally
The public should divest itself OF
the idea" said Mr.. Harrfaon. that
there "a anything new or complicated
OF diu'cuh to understand about IL. 1t
~ simply combination Of two OF the
Oldest clauses known to the insurance
business co-insurance clause and
loss clause"
Mr.. Harrison then showed the clause
which reads as Follows.
1T is understood and agreed that this
company shall be liable only for such
proportion OF the loss under any di-
hereby insured on said division bears
To the total value ot the property de-
scribed therein. Provided, that In the
event the total insurance ON any de
Nlhion or property, as per division OF
this policy, shall be equal 10 or exceed
the total cash value thereof. then this
company shall be liable only for its pro
rata share OF the loss under such d.
vision, II being Understood and agreed
that the term total Insurance. enc
braces the amount FOR which the as
sured becomes co-inRurer as Per agree
meut as follows, to-wlt.
1T - understood and agreed that The
assured shall be a co-lnsurer FOR az
least the following amounts. to-wit: n
AT the time OF the hre the total value
OF all property covered By this policy
shall amount 10 s2j.D0n. or less. the as
Hured shnll be- co-lnsurcr for at least
20 per cent OF tho value OF each iii.
vision OF property aa per division of
this policy; n tin total value OF all
property shall be more than S2J. 900
aud does not exceed 10000. the as
nured shan be n oo-iusutCr FOR al least
20 per cent OF the value OF each de
vision Of property; " the total
value OF All property shall he more
than 10000 ana does not exceed 800
900. the assured shall be- a co,insurer
for NJ least 10 per cent OF the value ~
each division Of property N the total
value Of all property shall exceed $780,
900, the assured shall be co-infurrr
for at least 10 per cent OF the value ~
each division Of property"
"ThiH clause applies To every insur-
once policy made la the state" said
MIR. Harrison, land h binding upon nll
insurance companies doing business IN
the state,
NJ the assured chooses 90 keep his
premium and do without Insurance he
IA "
occur. He Is free to do with aH little
Insurance as he picages, he being a CO.
insurer. as under the fun co.insur-
nncr clause. while on the other band
he X ht liberty 10 take as much insur-
BnCr ms he pleases, 40 long as lie agreed
10 be u co-inBurer for 40 least a stated
percentage or the value Of his prop
erty, as u guarantee OF his interest
IN protecting his property against uu-
necessary loss or dnmnEe by fre.
Aud while insurance win secure to
every man reasonable amount OF In
dcmnity against loss by nio, under
tho operation Of this clnuse n will
cease to be temptation 10 the weak,
and In stimulating the honest 10
Srcatcr care should reduce the fire
waste, which Is such burdensome
tax upon the large majority N our
honest patrons and drain upon the
commonwealth
Ascertain the value or the property
insured, IN case OF loss. and then cnl.
culnte the amount for which the as
Hurcd IL co-iusurcr, Added "a the
amount carried by the companies this
amount will constitute tho total
amount 10 contribute 10 the lnaH-
AN ILLUSTRATION.
Mr. Harrison then gave an illugtration
under the first division of the clause
where the asaured clects 20 carry a
: greater proportion Of risk than is re
q'hred by the second paragraph of the
clause. thus:
Valuation. 10000; ioss, 10000. insur-
snee by comnlanies 5000; assured's
'.IHSe coInpanies pay G-10. or $1,000
wliilc tho assured paws 40. or $1,000.
In every case where there T. total
destruction ~ then roperty and tho
amount. Of the insunance. Including the
hssurcd's proportion. docs not exceed
nnonnt OF their policies
Under the above statement Of value
and ine1rancc, The loss being $1,000.
The apportionncnt VIII Ne a. follows
o-H OF SgooO 70 be paid hv The caru-
by the assured.
SECOND CLAUSE EXPLAINED.
"Supposc the valuation Il 10000. Tho
tnSured's proportion. 5000, the insnr.
nnce by companies would he S75Ob III,
total insurance being $1,000.
With The total destruction Of prnp.
erty the companieS pay the full amount
OF their policies, and the aesnred loses
only his proportion, which 4 $500
should tho loss be less than total me
conpanie pay three fonrths of the
amount Of loss and tho asaur,id OF course
rays the other one-fourfh II the ma
Sufed fails 70 maintain $500 Insurance
WIN NE companies rhe adjustment +
anep hgurcd under the hra division Of
NC clansc, az wis explained above.
WiERE INSURANCE. EXCEEDS
VALUE.
i,et us suppose another illustration.
"'NAt,tus .s......s- SlN,OO0 |
Arurede proportion. 81. 81 800
insurance by companies. 1000
Total insnrnoe. Sit,5OO |
Hence, with the total destruction Of |
P,9perty inn. companies pay 0Oii5 az |
Ssl9yoo and the assurei's burden Z
S,,aan2 q that amount II the losss Il |