Macon beacon. [volume] (Macon, Miss.) 1859-1995, 1912-03-22
STATE HAS new
INSURANCE LAW
COMMISSIONER HENRY GIVES MOTT.
FICATION TO UNDERWRITERS.
LAW OFFICER MAKES RULING
Prohibits Companies Attacking co.Insur-
ance of Three-Quarter Clauses On
Policies Covering "Real
Property"

Jackson.-The following Official letter
10 being sent out from the insurance
department to insurance agents through.
out the state:
House Bill No. 283, copy of which ia
attached, has been approved by the
governor and is now a law.
1t will be noted the bill provides un.
der severe penalties that fire insurance
companies or agents shall not issue any
kind of q fire insurance policy contain
ing what is known as the three.fourths
value clause on risks covering @'real
property, buildings, household or kitchen
furniture" AS the body Of the bill was
worded differently from the title, leav-
ing it questionable if that clause could
be used in any kind of a policy, the mat
ter was submitted to Attorney General
X. 4. Collins by the insurance commits
]sioner, who replied verbally that he was
Of the opinion that the bill only applied
to real property or buildings, house
hold or kitchen furniture, and had no
application to other kinds of insurance.
lie was also asked if a combination
policy could be written covering 'real
property or buildings, household or
kitchen furniture" and stocks OF mer.
chandisc. He replied that in his opinion
there should be a separate policy in
cases OF this kind, and that no policy
can DO written with the three.fourths
clause attached. This means that an
agent in writing "a store building and
the merchandising stock must write one
policy covering the store and another
policy covering the stock Of merchan-
disc, and likewise in all cases where the
insurance covers property similarly af-
fected. Yours truly,
r. M. HENRY,
Insurance Commissioner,
House Bill No. 2S3. An act to amend
section 1892 of the Mississippi code,
1900, referring to insurance policies, so
as to prohibit fire insurance companies
from inserting or attaching a co-insur-
ance clause, ~three-quarter value clause,
or other like clause to any policy issued
by them insuring what is termed real
property" or buildings, household or
kitchen furniture.
Section /. Be it enacted by the leg
islature Of the state of Mississippi, that
ft.ea 1892 Of the Mississippi code OF
1906 be and the same is hereby amended
to read az follows:
No insurance company shall know
ingly issue any fire insurance p5Jfffuy upon
property within the state for an amount
which, together with any existing insur-
thereon exceeds a fair value Of the
property, nor for a longer term than
five years. When real property, or build.
ings, household or kitchen furniture in
sured against loss by fire, and situated
within this state, are totally destroyed
by fire, the company shall not be per-
mitted to deny that the property in.
sured was worth at the time of the
issuing of the policy the full value upon
which the insurance is calculated, and
the measure of damage shall be the
amount for which the property was in
sured.
No insurance company, or agent there
Of shall be permitted to insert or attach
a c%o-insurance clause, three-quarters
vaule clause to a policy of this kind,
and any fire insurance company or agent
thereof who violates this act shall be
guilty of q misdemeanor, and shall upon
conviction be fined not less than $780, 90
nor more than 100000 for each Of
Tense. In case of partial loss or dam
age by fire to real property or buildings,
ings, household or kitchen furniture, the
measure of damages shall be an amount
equal to the damage done the property
not to exceed the amount written in the
policy.