New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1898-04-27
Not LIABLE FOR BONBA RDNENT.
SUPERINTENDENT PAYN SAYS INSURANCE
COMPANIES NEED NOT FAY

Albany. April pc (SpecaD-I.ouls F Pawn
the Superintendent Of the Insurance Depart
ment. made public to-day the following letter in
relation 10 hazards incident 70 hombardncnt'
April % 1905
Messrs Weed e. Kennedy. No 20 Llbcrty-s,
New York.
slrs: We are In receipt NJ yours ~ IN" 23d
inst. in reference TO lnsuring property IN this
State against the hazards incident TO lombard
ment.
A fire insurance corporation organized unler
Article III Of the Insurance law. or authorized
under said article may make Insurance against
loss damage by fire. lightning. wind storms
or tornadocs. and upon vessels. boats. cargOes
goods. merchandise. freights and other property
against loss or damage by all or any Of the risks
OF lake. river. canal and inland navigation and
transpor alton"
a marine insurance COMPANY organized under
Article " Of the Insurance law. or authorized
under said article is not permitted to assume
hazards on property located on land
Fire insurance corporations required TO
use the standard fire insurance policy provided
for in Section 12l Of the insurance law. This
policy expressly provides at lines II and 30 the
following:
This company shall not be liable for loss caused
directly or indirectly by INVASION. instruction
riot. civil war or commoon. or military or usurrel
power. etc.
In the opinion OF this Department this ex-
press provision in tho standard policy cannot be
waived by fire insurance corporation. our
standard policy provides that n company shall
not be liable for loss caused directly or indi
ance law provides that no other or different
provision, agreement. condition or clause shall
be in any manner made part OF any contract
policy or Endorsed thereon or delivered there
with except as follows. etc. And the exceptions
which follow do not authorize a waiver Of any
condition OF Insurance or any particular risk
inconsiStent with or contrary 20 the conditions
or provisions OF the standard policy. Beyond Is
the question Of public policy In permitting such
a corporation to waive this express provision
fire insurance company necessarily has its
risks scattered, and its business Is secured
largely by its financial showing, representing
its capital and surplus It's policy holders must
be considered in their entirety. To permit such
corporation to assume hazard Of this char
acter might entail upon ii such serious financial
losses at some particular point subjected to
bOmbardment. n fire following same. to
danger It's financial condition. in fact. to make
IL insolvent. In such an event the poll y-hold-
ers residing in other localities whose property
is not subject 10 this haZlrd would he deprived
OF that responsible insurance for which they
paid In my judgment. the moral hazard at
present Is sufficient justification for this De-
partment TO disa pprove Of any waiver OF the
standard fire policy.
The authority to insure against damage re-
suting from bombardment. If fire did not en-
sue IL clearly not contemplated by the insur-
ancc law OF this State providing for the organi-
cation OF fire insurance companies and for the
admission to this State OF companies organized
in other States and countries. Yours respect
fully. LOUIS F. PAWN. Superintendent