2023 New York Laws › ISC - Insurance › Article 34 - Insurance Contracts-Property/casualty › 3404 - Fire Insurance Contracts; Standard Policy Provisions; Permissible Variations.

§   3404.   Fire  insurance  contracts;  standard  policy  provisions;
permissible variations. (a)  The  printed  form  of  a  policy  of  fire
insurance,  as  set  forth  in subsection (e) hereof, shall be known and
designated as the "standard fire insurance policy of the  state  of  New
York."
(b)  (1) No policy or contract of fire insurance shall be made, issued
or delivered by any insurer or by any agent or  representative  thereof,
on  any  property  in  this  state,  unless  it  shall conform as to all
provisions, stipulations, agreements and conditions with  such  form  of
policy,  except  policies  subject  to  the  provisions of section three
thousand one hundred two of this chapter  which  shall  be  required  to
comply  with  the  provisions of paragraph one of subsection (f) of this
section.
(2) There shall be printed or typewritten at the head of  such  policy
the  name and home office address of the insurer or insurers issuing the
policy and a statement whether such insurer or  insurers  are  stock  or
mutual  corporations  or are reciprocal insurers or Lloyds underwriters.
In lieu of such statement a corporation organized under a special act of
the legislature of any state may so indicate upon its policy.  The  head
of  the  policy  may  also  have such devices as the insurer or insurers
issuing it desire.
(3) The standard fire insurance policy need not be used for  effecting
reinsurance between insurers.
(4)  If  the  policy  is issued by a mutual, cooperative or reciprocal
insurer having special regulations with respect to the  payment  by  the
policyholder  of assessments, such regulations shall be printed upon the
policy, and any such insurer may print upon the policy such  regulations
as may be appropriate to or required by its form of organization.
(c)  Two  or  more  insurers  authorized  to  do  the business of fire
insurance in this state may, with the approval  of  the  superintendent,
issue  a  combination standard form of fire insurance policy which shall
contain the following provisions:
(1)  A  provision  substantially  to  the  effect  that  the  insurers
executing  such  policy shall be severally liable for the full amount of
any loss or damage, according  to  the  terms  of  the  policy,  or  for
specified percentages or amounts thereof, aggregating the full amount of
such insurance under such policy.
(2)  A  provision substantially to the effect that service of process,
or of any notice or proof of loss required by such policy, upon  any  of
the  insurers  executing such policy, shall be deemed to be service upon
all such insurers.
(d) (1) Appropriate forms of a supplemental contract or  contracts  or
extended  coverage  endorsements  insuring  against  one  or more of the
perils which the insurer is empowered to  insure,  in  addition  to  the
perils  covered  by such standard fire insurance policy, may be approved
by the superintendent, who may authorize their use in connection with  a
standard fire insurance policy.
(2)  The  first  page  of  the  policy,  in  a  form  approved  by the
superintendent, may be rearranged to provide space for  the  listing  of
amounts of insurance, rates and premiums for the basic coverages insured
under the standard form of policy and for additional coverages or perils
insured  under  attached  endorsements,  and  such  other data as may be
conveniently included  for  duplication  on  daily  reports  for  office
records.
(e) The form of the standard fire insurance policy of the state of New
York  (with  permission  to  substitute  for  the  word "company" a more
accurate descriptive term for the type of insurer) shall be as follows:
FIRST PAGE OF STANDARD FIRE POLICY
No. ............
[Space  for  insertion  of  name  of  company or companies issuing the
policy and other matter permitted to be stated  at  the  head  of  the
policy.]
[Space  for  listing  amounts of insurance, rates and premiums for the
basic coverages insured under the standard  form  of  policy  and  for
additional coverages or perils insured under endorsements attached.]
In  Consideration  of  the Provisions and Stipulations herein or added
hereto and of .......................................... Dollars Premium
this Company, for the  term  of  ........,  from  the  ........  day  of
........,  19..  to the ........ day of ........, 19.. at noon, Standard
Time,    at    location    of    property    involved,    does    insure
.........................    and  legal  representatives,  TO THE LESSER
AMOUNT OF EITHER:
.1) THE ACTUAL CASH VALUE OF THE PROPERTY AT THE TIME OF THE LOSS, OR
2) THE AMOUNT WHICH IT WOULD COST TO REPAIR OR  REPLACE  THE  PROPERTY
WITH  MATERIAL  OF  LIKE KIND AND QUALITY WITHIN A REASONABLE TIME AFTER
SUCH LOSS, WITHOUT  ALLOWANCE  FOR  ANY  INCREASED  COST  OF  REPAIR  OR
RECONSTRUCTION BY REASON OF ANY ORDINANCE OR LAW REGULATING CONSTRUCTION
OR REPAIR, AND WITHOUT COMPENSATION FOR LOSS RESULTING FROM INTERRUPTION
OF BUSINESS OR MANUFACTURE, OR
3)  TO  AN  AMOUNT  NOT EXCEEDING ................ DOLLARS, BUT IN ANY
EVENT FOR NO MORE THAN THE INTEREST OF THE INSURED, AGAINST  ALL  DIRECT
LOSS  BY  FIRE, LIGHTNING AND BY REMOVAL FROM PREMISES ENDANGERED BY THE
PERILS INSURED AGAINST IN THIS POLICY, EXCEPT AS  HEREINAFTER  PROVIDED,
to  the  property  described  hereinafter  while located or contained as
described in this policy, or pro rata for five days at each proper place
to  which  any  of  the  property  shall  necessarily  be  removed   for
preservation  from  the  perils  insured against in this policy, but not
elsewhere.
Assignment of this policy shall not be valid except with  the  written
consent of this Company.
This  policy  is made and accepted subject to the foregoing provisions
and stipulations and those hereinafter stated, which are hereby  made  a
part  of  this policy, together with such other provisions, stipulations
and agreements as may be added hereto, as provided in this policy.
 
In  Witness  Whereof, this  Company  has  executed  and  attested  these
presents; but this policy shall not be valid unless countersigned by the
duly authorized Agent of this Company at ...............................
 
........................................................................
........................................................................
Secretary.                              President.
Countersigned this .... day of ....., 19 ....   ......................
Agent.
SECOND PAGE OF STANDARD FIRE POLICY
Concealment,  fraud.  This  entire  policy  shall  be void if, whether
before  or  after  a  loss,  the  insured  has  wilfully  concealed   or
misrepresented   any  material  fact  or  circumstance  concerning  this
insurance or the  subject  thereof,  or  the  interest  of  the  insured
therein,  or  in  case  of  any  fraud  or false swearing by the insured
relating thereto.
Uninsurable  and  excepted  property.  This  policy  shall  not  cover
accounts,   bills,   currency,   deeds,  evidences  of  debt,  money  or
securities; nor, unless specifically named hereon in writing, bullion or
manuscripts.
Perils not included. This Company shall not be liable for loss by fire
or other perils insured against  in  this  policy  caused,  directly  or
indirectly, by: (a) enemy attack by armed forces, including action taken
by  military,  naval  or  air  forces  in  resisting  an  actual  or  an
immediately impending enemy attack; (b) invasion; (c) insurrection;  (d)
rebellion;  (e)  revolution; (f) civil war; (g) usurped power; (h) order
of any civil authority except acts of destruction at the time of and for
the purpose of preventing the spread of fire, provided  that  such  fire
did  not  originate  from any of the perils excluded by this policy; (i)
neglect of the insured to use all reasonable means to save and  preserve
the  property at and after a loss, or when the property is endangered by
fire in neighboring premises; (j) nor shall this Company be  liable  for
loss by theft.
Other  Insurance.  Other  insurance may be prohibited or the amount of
insurance may be limited by endorsement attached hereto.
Conditions  suspending  or  restricting  insurance.  Unless  otherwise
provided  in  writing  added hereto this Company shall not be liable for
loss occurring
(a) while the hazard is increased by any means  within  the  control  or
knowledge of the insured; or
(b)  while a described building, whether intended for occupancy by owner
or tenant, is vacant or unoccupied beyond a period of sixty  consecutive
days; or
(c)  as  a  result  of explosion or riot, unless fire ensue, and in that
event for loss by fire only.
Other perils or subjects. Any other peril to  be  insured  against  or
subject  of  insurance  to  be  covered  in  this  policy  shall  be  by
endorsement in writing hereon or added hereto.
Added provisions. The extent of the  application  of  insurance  under
this  policy  and of the contribution to be made by this Company in case
of loss, and any other provision or agreement not inconsistent with  the
provisions  of this policy, may be provided for in writing added hereto,
but no provision may be waived except such  as  by  the  terms  of  this
policy is subject to change.
Waiver provisions. No permission affecting this insurance shall exist,
or  waiver of any provision be valid, unless granted herein or expressed
in writing added hereto. No provision, stipulation or  forfeiture  shall
be  held  to  be  waived by any requirement or proceeding on the part of
this Company relating to appraisal or to any  examination  provided  for
herein.
Cancellation  of policy. This policy shall be cancelled at any time at
the request of the insured, in  which  case  this  Company  shall,  upon
demand  and  surrender of this policy, refund the excess of paid premium
above the customary short rates for the expired time. This policy may be
cancelled at any time by this Company by giving to the  insured  a  five
days'  written  notice  of  cancellation  with  or without tender of the

excess of paid premium above the pro rata premium for the expired  time,
which  excess,  if  not tendered, shall be refunded on demand. Notice of
cancellation shall state that said excess premium (if not tendered) will
be refunded on demand.
Mortgagee  interests  and  obligations.  If  loss  hereunder  is  made
payable, in whole or in part, to a designated mortgagee not named herein
as the insured, such interest in this policy may be cancelled by  giving
to such mortgagee a ten days' written notice of cancellation.
If  the  insured  fails  to  render proof of loss such mortgagee, upon
notice, shall render proof of loss in the form herein  specified  within
sixty (60) days thereafter and shall be subject to the provisions hereof
relating  to appraisal and time of payment and of bringing suit. If this
Company shall claim that no liability existed as  to  the  mortgagor  or
owner,  it  shall, to the extent of payment of loss to the mortgagee, be
subrogated to all  the  mortgagee's  rights  of  recovery,  but  without
impairing  mortgagee's right to sue; or it may pay off the mortgage debt
and require an assignment thereof and of the mortgage. Other  provisions
relating to the interests and obligations of such mortgagee may be added
hereto by agreement in writing.
Pro  rata  liability.  This  Company shall not be liable for a greater
proportion of any loss than the amount hereby insured shall bear to  the
whole  insurance  covering  the  property  against  the  peril involved,
whether collectible or not.
Requirements in case loss occurs. The  insured  shall  give  immediate
written  notice  to  this Company of any loss, protect the property from
further damage, forthwith separate the damaged  and  undamaged  personal
property,  put  it  in  the  best  possible  order,  furnish  a complete
inventory of the destroyed, damaged and undamaged property,  showing  in
detail  quantities, costs, actual cash value and amount of loss claimed;
and within sixty days after the loss, unless such time  is  extended  in
writing  by  this  Company,  the  insured shall render to this Company a
proof of loss, signed and sworn to by the insured, stating the knowledge
and belief of the insured as to the following: the time  and  origin  of
the loss, the interest of the insured and of all others in the property,
the  actual  cash  value  of  each  item  thereof and the amount of loss
thereto, all encumbrances thereon, all  other  contracts  of  insurance,
whether  valid or not, covering any of said property, any changes in the
title, use,  occupation,  location,  possession  or  exposures  of  said
property  since the issuing of this policy, by whom and for what purpose
any building  herein  described  and  the  several  parts  thereof  were
occupied  at the time of loss and whether or not it then stood on leased
ground, and shall furnish a copy of all the descriptions  and  schedules
in  all  policies and, if required, verified plans and specifications of
any building, fixtures or machinery destroyed or damaged.  The  insured,
as  often  as  may  be  reasonably required, shall exhibit to any person
designated by this Company all  that  remains  of  any  property  herein
described,  and submit to examinations under oath by any person named by
this Company, and subscribe the same; and, as often as may be reasonably
required, shall produce for examination all  books  of  account,  bills,
invoices and other vouchers, or certified copies thereof if originals be
lost,  at  such  reasonable  time and place as may be designated by this
Company or its representative, and  shall  permit  extracts  and  copies
thereof to be made.
Appraisal. In case the insured and this Company shall fail to agree as
to  the  actual  cash  value or the amount of loss, then, on the written
demand of either,  each  shall  select  a  competent  and  disinterested
appraiser  and  notify the other of the appraiser selected within twenty
days of such demand. The appraisers shall first select a  competent  and

disinterested  umpire;  and  failing for fifteen days to agree upon such
umpire, then, on request of the insured or  this  Company,  such  umpire
shall  be selected by a judge of a court of record in the state in which
the  property covered is located. The appraisers shall then appraise the
loss, stating separately actual cash value and loss to each  item;  and,
failing  to  agree, shall submit their differences, only, to the umpire.
An award in writing, so itemized,  of  any  two  when  filed  with  this
Company  shall  determine the amount of actual cash value and loss. Each
appraiser shall be paid by the party selecting him and the  expenses  of
appraisal and umpire shall be paid by the parties equally.
Company's options. It shall be optional with this Company to take all,
or  any part, of the property at the agreed or appraised value, and also
to repair, rebuild or replace the property  destroyed  or  damaged  with
other  of  like  kind  and  quality  within a reasonable time, on giving
notice of its intention so to do within thirty days after the receipt of
the proof of loss herein required.
Abandonment. There can be  no  abandonment  to  this  Company  of  any
property.
When  loss  payable.  The amount of loss for which this Company may be
liable shall be payable sixty  days  after  proof  of  loss,  as  herein
provided,  is  received by this Company and ascertainment of the loss is
made either by agreement between the insured and this Company  expressed
in  writing  or  by  the  filing with this Company of an award as herein
provided.
Suit. No suit or action on this policy for the recovery of  any  claim
shall  be  sustainable  in  any  court  of  law or equity unless all the
requirements of this policy shall have been complied  with,  and  unless
commenced within twenty-four months next after inception of the loss.
Subrogation.  This  Company may require from the insured an assignment
of all right of recovery against any party for loss to the  extent  that
payment therefor is made by this Company.
THIRD PAGE OF STANDARD FIRE POLICY
ATTACH FORM BELOW THIS LINE
BACK OF STANDARD FIRE POLICY
(OPTIONAL)
Standard Fire Insurance Policy of the States of
Expires _______________________________________
Property ______________________________________
Assured _______________________________________
No. _______________________
(COMPANY)
It  is  important  that  the written portions of all
policies covering the  same  property  read  exactly
alike.  If  they do not, they should be made uniform
at once.
(f)  (1) Subject to the approval of the superintendent, a policy which
insures solely against the peril of fire or which  insures  against  the
peril  of fire in combination with other kinds of insurance either for a
divisible or indivisible premium need not comply with the provisions  of
subsection (e) of this section, provided:
(A)  the policy contains, with respect to the peril of fire, terms and
provisions no less favorable to the insured than those contained in  the
standard fire policy;
(B)  the provisions in relation to mortgagee interests and obligations
in such  standard  fire  policy  are  incorporated  without  substantive
change; and
(C)  the policy or contract is complete as to all of its terms without
reference to the standard  form  fire  insurance  policy  or  any  other
policy.
(2)  Policies  of  automobile or aircraft physical damage insurance or
policies of inland marine insurance may be issued as heretofore  without
reference  to  the  limitations  contained  in  paragraph  one  of  this
subsection.
(g) Notwithstanding any other provision of law to  the  contrary,  the
provisions  of  the  appraisal  clause set out on the second page of the
standard fire policy and the provisions of section three  thousand  four
hundred eight of this article, including determinations as to the amount
of  loss  or damage rendered thereunder, shall be binding on all parties
to the contract of insurance evidenced by the policy and may be enforced
by either the insurer or the insured by  application  made  pursuant  to
subsection  (c)  of  section  three  thousand four hundred eight of this
article.
(h) As used in this section, "binder" means  a  written  document  (1)
which  includes  the  name and address of the insured and any additional
named  insureds,  mortgagees,  or  lienholders;  a  description  of  the
property  insured;  a  description  of the nature and amount of coverage
which shall be  deemed  to  include  the  terms  of  the  standard  fire
insurance  policy  except  as  conspicuously  noted  on  the binder; the
identity of the insurer and of the authorized  representative  executing
the  binder;  the  effective  date of coverage; the binder number or the
policy number where applicable to a  policy  extension,  and  (2)  which
temporarily  obligates  the  insurer  to provide that insurance coverage
pending issuance of the insurance policy. The  cancellation  of  such  a
binder  shall  be  governed  at  the  minimum  by  the provisions of the
standard fire insurance  policy  and  the  provisions  of  this  chapter
applicable  thereto.  No exempt organization, as defined in section five
hundred ninety of the banking law, or  licensed  mortgage  banker  which
originates mortgage loans shall, at the time of title closing for a loan
secured  by  a  one  to four family residential real property, refuse to
accept  a  binder,  issued  by  an  insurer,  or   a   duly   authorized
representative  of an insurer, licensed to do business in this state, as
evidence that hazard insurance  has  been  procured  for  the  mortgaged
premises.  Nothing herein is intended to prohibit the mortgage banker or
exempt organization from  requiring  the  borrower  to  also  furnish  a
receipt  indicating  that  the  annual  or  installment  premium on such
insurance policy has been paid.