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 AGENts Key 
 
 TO 
 
 Fire Insurance 
 
 Concise and Helpful Information 
 
 FOR Agents, Brokers and Field Men 
 
 Regarding Essentials 
 
 OF THE Business 
 
 includes a comprehensive 
 collection of modern forms 
 
 By 
 
 Robert P. Barbour 
 
 Price, $3.50 
 
 I 922 
 
 THE SPECTATOR COMPANY 
 
 Chicago Office 135 William Street 
 
 Insurance Exchange NEW YORK 
 

 Copyright, 1917, by 
 
 THE SPECTATOR COMPANY 
 
 New York 
 
 Second Edition 
 
 Copyright, 1920, by 
 
 THE SPECTATOR COMPANY 
 
 New York 
 
 Third Edition 
 
 Copyright, 1922, by 
 
 THE SPECTATOR COMPANY 
 
 New York 
 
PREFACE TO THIRD EDITION 
 
 The revision of the "Key" for its Third Edition 
 introduces subjects not dealt with in previous editions. 
 Many chapters have been rewritten and new informa- 
 tion added; the latest and most modern forms in- 
 cluded; all that it may be as complete, up-to-date and 
 helpful as possible within the limits of its scope. 
 
 This book is designed to give in a simple and clear way, 
 free from technicalities, information regarding those fire 
 insurance principles, systems and practices with which 
 the agent, broker and fieldman should be familiar in 
 order to give the maximum of service to his clients. 
 
 Since it is primarily intended as a practical aid to 
 those coming directly in touch with the policyholder, 
 particular attention is given to those subjects which 
 experience shows are constantly arising in one form 
 or another in the office and outside work of the agent 
 and the broker. 
 
 These subjects cover a wide range and deal with 
 agents' and brokers' relations with the company and 
 the insured, the scope of their authority and responsi- 
 bility, soliciting, office systems, policy writing, prepara- 
 tion of forms and clauses, explanation of the policy 
 contract, the principal clauses used and the various 
 covers written by fire insurance companies, cancella- 
 tions, collection of premiums, adjustment of losses and 
 many other subjects embraced in the field of their 
 operations. It brings together in one volume infor- 
 mation often difficult to find and much that is not 
 obtainable in any other publication. That which is 
 elemental is considered necessary in order that the 
 treatment of each subject may not be incomplete. 
 
 Every effort has been made to represent the best 
 judgment of those recognized as leaders in the business 
 and grateful acknowledgment is rendered to friends 
 who have contributed by suggestion, information or 
 advice, in the preparation of this volume. 
 
 It should not be overlooked that the laws of the 
 various states differ and care should be exercised that 
 nothing herein shall lead to violation or disregard of 
 the statutes of any particular state. 
 
 THE AUTHOR. 
 
CONTENTS 
 
 PART ONE 
 
 PAGE 
 
 Chap. I. Fire Insurance 1 
 
 II. The Agent 11 
 
 III. The Broker 16 
 
 IV. Insurance Organizations 19 
 
 V. General Office Work 30 
 
 VI. .Writing Policies and Endorse- 
 ments 55 
 
 VII. Losses 66 
 
 VIII. The Policy Contract 88 
 
 IX. Waiver and Estoppel by Agent... 116 
 
 X. Selection and Inspection 119 
 
 XL Rates and Rating Methods 131 
 
 XII. Cancellation and Substitution... 134 
 
 XIII. Mortgagee and Payee Interests... 147 
 
 XIV. Important Clauses (Coinsurance 
 AND Others) . . ., 157 
 
 XV. Special Kinds of Insurance (Side 
 
 Lines) 173 
 
PART TWO 
 
 PAGE 
 
 Chap. XVI. Forms, Privileges and Clauses 195 
 
 Div. I. Writing Forms 197 
 
 " II. Special Agreements 204 
 
 " III. Residence Property 215 
 
 " IV. Churches, Schools, Colleges and Public 
 
 Buildings and Contents 237 
 
 " V. Mercantile and Office Buildings and 
 
 Their Contents 245 
 
 " VI. Hotels, Saloons, Clubs and Business 
 
 Stables and Their Contents 255 
 
 " VII. Elevators, Warehouses and Cold Storage 
 
 Houses and Their Contents 262 
 
 " VIII. Manufacturing Buildings and Contents 277 
 
 " IX. Miscellaneous Non-Manufacturing 292 
 
 " X. Vessel Property 311 
 
 " XT. Marine Insurance 320 
 
 " XII. Cotton and Cotton Seed "ill 
 
 " XIII. Rent and Leasehold 348 
 
 " XIV. Use and Occupancy, Profits and .Com- 
 missions 370 
 
 " XV. Excess, Floating and General Cover 
 
 Contracts 407 
 
 " XVI. Miscellaneous 421 
 
 General Index 437 
 
The Agents Key to Fire Insurance 
 
 PART ONE 
 
CHAPTER I 
 FIRE INSURANCE 
 
 Its Nature — By Whom Furnished — Stock Compa- 
 nies — Mutuals — Inter-insurance Associations — 
 Lloyds — Factory Insurance Association — Western 
 Factory Insurance Association. 
 
 Fire insurance, as the term is commonly used, is an under- 
 taking by the insurer, expressed in a contract known as the 
 ** policy", to indemnify those insured for monetary loss sus- 
 tained through damage or destruction by fire of specified 
 property. The organizations selling fire insurance depend 
 upon the monej^ paid therefor by the whole number insured 
 to reimburse such of their number as suffer losses. Thus for 
 a small and fixed premium one is insured against possible 
 large and uncertain losses. 
 
 Hence, in its broader meaning, fire insurance may be de- 
 fined as a system for distributing the cost of fires. The 
 
 burden of reimbursing those who suffer losses 
 Its Nature from fire is borne by the entire body of those 
 
 who insure. The money paid for fire insurance 
 indemnity, namely the premium, is the contribution of the 
 individual to the common fund from which losses are in 
 turn disbursed. Each insured pays a rate that is fixed in 
 accordance with the estimated risk of fire damaging his 
 property, plus the necessary expenses and profit of the com- 
 panies and associations that constitute the agencies through 
 which this distribution is effected. 
 
 The fire insurance policy constitutes one of the most nearly 
 universal contracts undertaken and it enters into practically 
 all activities dealing with tangible property. 
 
 It is estimated that 60% of all realty in the United States 
 is encumbered by mortgage, and as the mortgagee commonly 
 demands the protection of fire insurance, the 
 A Necessity statement may well be made for that reason 
 alone, if no other, that fire insurance touches 
 every home, every trade, every business, every industry, and 
 that upon it rests in large measure the vast system of credit, 
 
 1 
 
2 THE.AgE^M.TS KEY<TO't:iRE INSURANCE 
 
 without which commerce would be dwarfed and the wheels 
 of industry find difficulty in moving. The merchant, the 
 manufacturer, or the warehouseman, seeking credit from 
 his bank to pay for goods purchased or stored, must insure 
 to obtain a loan. All through our commercial life the seller 
 on credit universally relies for a part of his security on the 
 buyer's fire insurance protection. Like the banking system, 
 the importance and useful purpose of fire insurance is uni- 
 versally conceded, and, since creditors rely on its protection, 
 the necessity for stable and reliable indemnity is quite as 
 vital to the home and business life of our country as sound 
 banking or undebased currency. • 
 
 The economic importance of fire insurance and the ability 
 of the present system of indemnity to serve its purpose is 
 
 illustrated again and again in the vast number 
 Economic of losses paid each year which would otherwise 
 
 Importance fall Avith crushing force upon the individual 
 
 owners, the sums so paid in the year 1921 
 aggregating about $446,160,000 in the United States alone. It 
 is even more sharply illustrated in the case of conflagrations 
 such as that of San Francisco, where the fire insurance 
 companies paid approximately $300,000,000 for property 
 burned or otherwise destroyed. This great fire loss also 
 shows that no city, nor even a State, could afford to take 
 the risk of furnishing indemnity to its citizens; the dis- 
 tribution of the fire cost must be over a wider field and with 
 a greater number of contributors in order to provide the 
 necessary resources for times of stress. 
 
 While insurance companies serve this useful and necessary 
 purpose they are in no sense benevolent institutions any more 
 than banks are. They are formed and oper- 
 Companies ated in the hope of making money, and if the 
 Entitled to capital invested in insurance companies yielded 
 Reasonable no return it w^ould be withdrawn. Such corn- 
 Profit panics are entitled to a reasonable under- 
 writing profit, and much discussion as to what 
 that should be has resulted in a fairly well defined senti- 
 ment that an average underwriting profit of 5% is one with 
 which the companies as a whole should be satisfied, and to 
 which the public whom they serve should not object. To 
 average 5% there must be some years when the profit is 
 greater, for there will inevitably be some when it is less; 
 there are lean years and fat years; the fire fiend is no re- 
 specter of limits, trade profits, or surplus. 
 
FIRE INSURANCE 6 
 
 Such 5% profit, however, does not take into account the 
 conflagrations which experience shows visit our country 
 periodically and to build up a reserve to promptly pay losses 
 sustained in such catastrophes it is generally considered that 
 3% additional profit is necessary. Some States have laws 
 specifying that rates shall be reduced when stock fire in- 
 surance companies shall show, as a Avhole, an actual profit in 
 excess of a reasonable amount over a period of 5 consecutive 
 years. The justice of the normal profits outlined in the 
 foregoing has been recognized by an agreement between 
 representatives of the National Board of Fire Underwriters 
 and the National Convention of Insurance Commissioners 
 as follows: 
 
 1. The minimum '^reasonable" underwriting profit is 5% 
 of premiums earned plus 3% additional for conflagrations. 
 
 2. Five years is a minimum term upon which to base a 
 calculation as to underwriting profits. 
 
 3. The difference between earned premiums and incurred 
 losses, plus incurred expenses, represents underwriting profit 
 or loss. 
 
 4. A conflagration is defined as property loss exceeding 
 $1,000,000. 
 
 5. In determining the underAvriting experience in any 
 given state the first $1,000,000 of loss shall be charged to 
 the particular state and the balance distributed among all 
 the states (including the one in which it occurred) in propor- 
 tion to the premium income of each. 
 
 6. That no part of the so-called ''banking" profit shall 
 be included in the underwriting profit. 
 
 What panics are to banks, conflagrations are to fire in- 
 surance companies, and such institutions must husband their 
 
 resources and vitality to stand the strain when 
 Sound it comes. To the individual every fire is a con- 
 
 Indemnity flagration, therefore his interest in securing 
 
 sound indemnity is vital, and the first duty 
 of the agent or broker is to make certain that the insurance 
 he places for his client shall be in companies that are 
 financially sound and in good repute. 
 
 CLASSES OF COMPANIES 
 
 Fire insurance indemnity in the United States is furnished 
 bj^ three general classes of insurers, (1) Stock Companies, 
 
4 THE AGENTS KEY TO FIRE INSURANCE 
 
 (2) Mutual Companies, Reciprocals and Inter-insurance 
 Associations, (3) Lloyds Groups or Associations. 
 
 Stock Companies. These may be classed as of two kinds. 
 
 While each state terms all companies * 'foreign" that are 
 not domiciled in and organized under its own laws, it is 
 the common practice to term all companies ''domestic" that 
 are organized under the laws of any one of the 48 States, 
 and "foreign" all those organized in some other country. 
 
 At the beginning of 1922 there were about 290 domestic 
 stock fire insurance companies, 430 Mutuals (not including 
 over 2,000 small farm associations) and 91 foreign companies, 
 (not counting those non-admitted) transacting a fire insur- 
 ance business within the United States. 
 
 The requirements of the various States relating to capital, 
 deposits, investments, etc., differ to a considerable extent, 
 but those of New York State will serve as illustrations. 
 
 Domestic stock companies chartered — or admitted — to con- 
 duct the fire insurance business in the State of New York 
 
 must have a capital, fully paid, of not less 
 Requirements than $200,000 and not less than $400,000 to 
 
 transact both fire and marine business. For- 
 eign companies must maintain on deposit with the Superin- 
 tendent of Insurance in approved securities an amount not 
 less than the minimum capital required of domestic com- 
 panies to transact a like business, and must also execute 
 a trust deed and place in the hands of trustees approved 
 by the Insurance Department the sum of $300,000 in cash 
 or approved securities to do a fire business only or $400,000 
 to do both fire and marine business. Both domestic and 
 foreign companies must set aside a certain portion of all 
 premiums as a reserve fund, and must have at all times 
 net assets equal to or exceeding the amount of said reserve 
 and all other liabilities. This is called the unearned pre- 
 mium reserve and is estimated to be sufficient to reinsure 
 or carry to maturity all its outstanding liability. Therefore, 
 the measure of a company's strength is not its capital so 
 much as its surplus, and the proportion this bears to the 
 amount of business it is writing. All admitted resources, 
 other than premiums or other items in course of collection, 
 must be in cash, or on deposit in banks, or invested in 
 properties or securities approved by the Superintendent of 
 
FIRE INSURANCE 
 
 Insurance, which are designated by law as follows: Bonds 
 of the United States or any political division thereof, or 
 collateral loans on the pledges of such securities, or bonds 
 and mortgages on improved, unincumbered real property 
 worth fifty per centum more than the amount loaned thereon ; 
 stocks, bonds, and other evidences of indebtedness of any 
 solvent institution incorporated under the laws of the United 
 States or of any State thereof. Foreign companies may 
 invest (to the extent of the minimum deposit capital re- 
 quired) in securities of their own country, if Americjan com- 
 panies are reciprocally privileged in the countries of such 
 foreign companies' origin. All of these requirements are 
 intended to secure for the policyholder the safety of his 
 indemnity. Policies of insurance issued by such companies 
 are written for a stated premium, are non-assessable and 
 do not participate in the earnings. 
 
 Such companies may write the following classes of in- 
 surance (1922): 
 
 ** Against loss or damage, including loss of use or occu- 
 pancy, by fire, lightning, windstorm, tornado, cyclone, 
 earthquake, hail, frost or snow, weather or 
 Classes of climatic conditions, including excess or de- 
 Insurance ficiency of moisture, flood, rain or drought, 
 rising of the waters of the ocean or its tribu- 
 taries, bombardment or invasion, insurrection, riot, civil 
 war or commotion, military or usurped power, and by 
 explosion whether fire ensues or not (except damage to 
 steam boilers and similar apparatus caused by inherent 
 explosion), also against loss or damage by insects or 
 disease to farm crops or products and loss of rental value 
 of land used in producing such crops or products and 
 also against loss or damage by water or other fluid to any 
 goods or premises arising from the breakage or leakage 
 of sprinklers, pumps or other apparatus erected for ex- 
 tinguishing fires, or of other conduits or containers or by 
 water entering through leaks or openings in buildings and 
 of water pipes, and against accidental injury to such 
 sprinklers, pumps, apparatus, conduits, containers or water 
 pipes 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 navi- 
 gation and transportation, ' ' and all forms of marine cover, 
 ''insurances upon automobiles and airplanes, seaplanes, 
 
b THE AGENTS KEY TO FIRE INSURANCE 
 
 dirigibles or other aircraft, whether stationary or being 
 operated under their own power, which shall include all 
 or any of the hazards of fire, explosion, transportation, 
 collision, loss by legal liability for damage to property 
 resulting from the maintenance and use of automobiles and 
 airplanes, seaplanes, dirigibles or other aircraft, and loss 
 by burglary or theft, vandalism or malicious mischief, 
 or the wrongful conversion, disposal or concealment of 
 automobiles, whether held under conditional sale contract 
 or subject to chattel mortgages or any one or more of 
 such hazards but shall not include insurance against loss 
 by reason of bodily injury to the person." 
 
 Underwriters Agencies. These are organizations backed by 
 one or more stock companies and operate the same as the 
 parent institution. They serve the purpose of feeders, ena- 
 bling the parent company to obtain agents who would other- 
 wise not be available. 
 
 Mutual Companies, Reciprocals and Inter-Insurance Asso- 
 ciations. Such organizations are of four general classes 
 which, for convenience, may be denominated (1) Deposit 
 Premium Mutuals, (2) Ordinary Premium Mutuals, (3) 
 Inter-insurance Associations, and (4) Reciprocals. 
 
 Deposit Premium Mutuals. Policies in such organizations 
 are usually issued for a comparatively large premium esti- 
 mated to be in excess of that necessary to cover normal losses 
 and expenses. A portion of such premium at the end of a 
 stated period is returned to the policyholder in the shape of 
 dividends, thus making the cost of this form of insurance 
 the difference between the deposit premium (plus loss of in- 
 terest thereon) and the dividend. Policies of this character 
 are assessable in case the losses and expenses exceed the 
 receipts, although as a rule no assessments are necessary be- 
 cause of the large deposit premium advanced. 
 
 Ordinary Premium Mutuals. Policies in such organizations 
 are usually issued for a cash premium, based either on stock 
 company rates or on some percentage thereof, which are 
 estimated to be sufficient to pay all losses and expenses. 
 Some such companies return in the form of dividends, or 
 credits on renewal policies, any excess of income over outgo ; 
 others place the excess in a surplus fund. Quite frequently 
 agency plants are maintained, commissions paid for business 
 secured, and operations conducted in much the same manner 
 
FIRE INSURANCE 7 
 
 as by the stock companies. Policyholders are assessable for 
 losses and expenses in excess of income. Some States are 
 now requiring companies of this type to set aside a portion 
 of the premiums as a reserve fund. The same remarks 
 regarding liability of policyholders apply to this form of 
 indemnity as to that of Inter-insurance Associations. 
 
 Inter-insurance Associations. These are operated under 
 various plans; some, such as the small farm associations, have 
 practically no expense, and issue policies for a nominal fee, 
 levying assessments on the policyholders to pay such losses 
 and incidental expenses as may occur. Some issue policies 
 for a small cash premium designed to cover expenses and 
 trifling losses, and in addition require premium notes on 
 which payments are demanded to cover losses and expenses 
 occurring in excess of those covered by the cash premiums. 
 Others operate in a similar way without requiring premium 
 notes, merely levying assessments as necessary. 
 
 Companies of this type are not usually required to have any 
 capital, surj^lus or reserve fund. The indemnity offered 
 
 thereby depends necessarily on the solvency 
 Policyholders' of the various policyholders and as each 
 Liability one is usually liable for all debts of the 
 
 association, policies therein not only con- 
 stitute self insurance, but also, in effect, make the holder the 
 endorser of each other policyholder's ability to pay such 
 assessments as may be levied. In effect, the acceptance of a 
 policy is like endorsing a note of unknown parties, for an 
 unknown amount, payable on demand. In some States it has 
 been held that trustees or agents of others may not accept 
 fire insurance policies that are assessable, on the theory that 
 they have no right to bind their principals to a transaction 
 that will make them liable to unknown persons for unknown 
 debts of unlimited amounts. 
 
 Reciprocals. These are sometimes called inter-insurance 
 exchanges and while mutual in their character are unin- 
 corporated and, in this respect, differ from the so-called 
 ''mutuals." They also differ from ''Lloyds," in that the 
 latter do business Tvith the public; whereas these ''ex- 
 changes" grant insurance only to their subscribers, each 
 of whom is thus both insurer and insured. Usually these 
 organizations are operated by an attorney-in-fact, who, in 
 such capaeit}^, acts- as the agent of each of the subscribers 
 and has power to bind them as insurance carriers within the 
 
8 THE AGENTS KEY TO FIRE INSURANCE 1 
 
 limit of his authority as fixed by the power of attorney | 
 from the subscriber to him. In these organizations each i 
 subscriber assumes a proportionate amount of the liability | 
 issued and bears his share of the losses and expenses, being | 
 liable pro rata for assessment if the funds in the hands '^ 
 of the attorney-in-fact are insufficient. Some American \ 
 courts have held organizations of this kind to be, in effect, j 
 copartnerships. By statutory provision or in accordance i 
 with the powers of attorney, service made upon the attorney- I 
 in-fact is in most States equivalent to service on each one! 
 of the subscribers, no matter if non-resident. Except that 3 
 each subscriber is liable only for his pro rata share of losses \. 
 and expenses the remarks regarding policyholders ' liability | 
 
 apply to reciprocals. 
 
 \ 
 Non-Assessable Mutuals. There are a few companies which, ; 
 while mutual in form, do business on the cash plan, issue J 
 only non-assessable policies, and operate generally in the ^ 
 same manner as do stock companies. Policies in such com- ^ 
 panics are, as a rule, protected by the assets only, since there f. 
 is no assessable liability. i 
 
 Lloyds Groups or Associations. These are organizations of { 
 individuals known as subscribers or underwriters, each usu- j 
 ally assuming liability for a given proportion of each policy ■;. 
 issued. In some cases the liability is limited and in others i 
 unlimited. The policies are issued for a cash premium and | 
 are not assessable. ^ 
 
 Two features may be stated in connection with this form ' 
 of insurance which are worthy of consideration : — First, the j 
 difficulty of knowing the financial strength of each subscriber j 
 or underwriter; second, if a loss occurs and suit to recover i 
 becomes necessary, each individual subscriber or underwriter ^ 
 must be sued for his share of the loss, thus entailing much J 
 trouble and expense. 
 
 Senior Mutuals. This is the name commonly used to desig- ] 
 nate a group of Mutual companies associated together for J 
 the purpose of writing insurance on high grade properties! 
 equipped with automatic sprinklers. They make their own^ 
 standards of construction and protection, issue policy con-| 
 tracts under separate forms, and operate independently in .^ 
 every way, subject to such regulations as may be imposed ^ 
 upon them in those States which they enter. ;; 
 
FIRE INSURANCE \) 
 
 Policyholders are required to pay a deposit premium, which 
 is usually much in excess of that produced by stock company 
 rates, and dividends to policyholders are de- 
 Method of clared out of earnings. These dividends vary 
 Operation with the different companies forming the group, 
 and as an average reduce the cost of insurance 
 to a low figure. These companies depend on careful selection, 
 rigid standards and excellent inspection service to produce a 
 low fire cost, and have been very successful in operation. 
 
 Policies in the Senior Mutuals are assessable and the cost 
 of such insurance can never be definitely known in advance. 
 In determining the premium cost to the policyholder interest 
 on the deposit premium advanced must be taken into account. 
 The Senior Mutuals deal directly with the insured and pay 
 no commission to agents or brokers. 
 
 Junior Mutuals. This is a group of Mutual companies simi- 
 lar to the Senior Mutuals in operation, but with somewhat 
 less rigid standards of selection, construction, protection and 
 inspection, and with a less favorable loss and dividend-paying 
 record. 
 
CHAPTER II 
 
 THE AGENT 
 
 His Authority — Limitations — Waivers — Responsi- 
 bility — His Work — Solicitation — Middleman — 
 — Duty to Client — Duty to Company — Agent's 
 Own Property — Re-insurance by Agent. 
 
 The great bulk of fire insurance in the United States is 
 written by and through local agents in the various cities and 
 
 towns, of whom there are estimated to be 
 Authority 150,000, each agent representing one or more 
 
 companies, and this method of transacting the 
 business has become known as the American Agency System. 
 In many other countries the insured deals direct with the 
 company, and while that is the practice here to some extent, 
 the volume of business so transacted is negligible in pro- 
 portion to the whole. A very considerable percentage of 
 business is done through brokers (see Brokers). 
 
 The local agent is authorized to rejpresent the company in 
 his city or town and vicinity; to issue and countersign its 
 policies and collect the premiums therefor, and in general to 
 act locally for the company in all matters pertaining to the 
 acceptance or declination of lines of insurance, and the issu- 
 ance or cancellation of binders and of policy contracts cov- 
 ering the various classes of insurable property. Customarily 
 he does not adjust losses except when requested or authorized 
 by the company to do so. 
 
 Almost every one of the 48 States require that an agent 
 shall be licensed as such by the State as well as authorized 
 by the company before he can transact a fire insurance 
 business, and many States attempt to enforce laws or rulings 
 which require an agent to possess certain qualifications be- 
 fore he can be licensed. In general these are that he be 
 trustworthy and competent, be regularly in the fire in- 
 surance business, and able to show at least elementary knowl- 
 edge of the policy contract and the various clauses and riders 
 that may be attached thereto. 
 
 10 
 
THE AGENT 11 
 
 The powers conferred are broad within their field and such 
 limitations as are placed thereon are usually conveyed in a 
 letter of instructions sent at the time of ap- 
 Limitations pointment, covering the general subjects of 
 line limits, prohibited risks, etc., and supple- 
 mented from time to time by more specific advices from the 
 company or its general. State or special agents. The com- 
 pany is bound by any act of the agent, within the scope of 
 his general authority as its local representative, regardless of 
 these limitations unless they are known to the policyholder, 
 but as between the agent and the company a violation of such 
 limitations renders the agent personally liable to the com- 
 pany for resulting damages. To illustrate, suppose the agent 
 is instructed not to exceed a line of $5,000 on any one risk 
 and he issues a policy for $7,500. If the company accepts 
 the over-line then the agent is relieved of liability. But 
 suppose the property to burn before there has been oppor- 
 tunity to accept or decline it: In that case the company 
 must pay the $7,500 loss, but it has a legal claim on the agent 
 for the $2,500 in excess of the limitation fixed in its instruc- 
 tions. 
 
 Although the policy contains a provision that no agent 
 shall have power to waive any provision or condition thereof, 
 
 nor grant any privilege or permission affecting 
 Waiver the insurance, unless written upon or attached 
 
 to the policy, the courts have almost uniformly 
 held that an oral agreement between insured and agent may 
 waive any provision or condition of the policy, and, similarly, 
 may give permission for something that would otherwise 
 void the policy (see Waiver and Estoppel by Agent). The 
 companies have very rarely held the agent personally liable 
 for such oral waivers, but if the agent were to waive some- 
 thing which ran counter to his instructions he could un- 
 doubtedly be held personally liable for damages resulting be- 
 cause of his act. 
 
 It will be seen, therefore, that while the agent's authority 
 is very broad, it entails a large measure of responsibility, not 
 
 only for the company's welfare but also for 
 Responsibility his own pocket. The confidence reposed by 
 
 the company in its agent extends far beyond 
 the writing of policies and remitting premiums, for in addi- 
 tion to the foregoing the selection of business is to a large 
 extent in his hands, and upon his knowledge of men and 
 conditions, and his good judgment, depend in great measure 
 
12 THE AGENTS KEY TO FIRE INSURANCE 
 
 the profit to the company which is the desideratum for his 
 continuance as agent. While physical conditions are to a 
 considerable extent cared for by rates and by inspection at 
 the hands of field men and inspection bureaus, the compa- 
 nies depend in great measure on the local agent as regards the 
 moral hazard. He has avenues of information about men and 
 conditions in his own town and vicinity that are not open 
 to the company or its supervising representatives and the 
 local agent is the only one in many cases who is in positior 
 to determine those worthj?^ of confidence. 
 
 The first and most important work of the local agent is the 
 solicitation and obtaining of business. Just how this is to 
 
 be accomplished rests largely with the individual, 
 His Work but there are a few general suggestions which 
 
 may prove helpful. 
 
 First of all, the agent should understand what he is selling 
 and should, therefore, familiarize himself with the conditions 
 
 of the policy contract and of the clauses in 
 Solicitation common use, and be able to explain them 
 
 clearly and simply. Almost all insurance busi- 
 ness is obtained by personal solicitation — very little comes 
 in any other way. Advertising and letter writing are good 
 merely to supplement personal work. Usually the new agent 
 begins by soliciting the smaller business, such as dwellings, 
 household furniture, mercantile buildings and stocks, churches, 
 schools, public buildings and the smaller special hazards. 
 Such risks, so far as numbers go, compose the great bulk of 
 the insurance business and can usually be obtained more 
 easily than the larger risks. Indeed, they constitute the back- 
 bone of most agencies and once obtained are more readily 
 held and renewed, year after year, than the larger business 
 for which, risk by risk, there is naturally greater competition. 
 It is a common saying that an agency controlling a large 
 volume of small business is more of an asset than one where 
 a few large risks make up the bulk of the premiums. 
 
 There are no set rules for soliciting, but the following sug- 
 gestions are merely setting down a portion of the work which 
 a trained solicitor does: 
 
 Take advantage of any occurrence which may bring about 
 the necessity for new or additional fire insurance, such as the 
 
 erection of new structures, the remodeling of a 
 Possibilities building or the enlargement of a plant. A man 
 
 about to marry may desire household furniture 
 insurance; merchants often require additional insurance dur- 
 
THE AGENT 13 
 
 ing Christmas and Easter seasons; those using cold storage 
 plants require insurance on contents almost daily during the 
 busy season; and so the list may be continued. 
 
 Learn the rates of premium applying on any property be- 
 fore soliciting insurance thereon and if possible make up the 
 form of cover that will be used. If the risk is 
 Rates and specifically rated, get a copy of the *' make-up" 
 Forms of the rate and see if any charges can be re- 
 
 moved by improvements or corrections, thus 
 bringing the rate down; if not rated under schedule, go over 
 the property carefully with a copy of the schedule that will 
 be used in making a rate and see if its application will pro- 
 duce a lower rate than the one applying on the risk. The 
 rate is largely what counts in obtaining business; money 
 talks, and a reduction in rate is a better solicitor than friend- 
 ship or pull. Examine the forms under which insurance is 
 placed and see if they can be changed to advantage; ascer- 
 tain whether the insured is properly covered and all neces- 
 sary'- clauses and permits are on each policy and whether the 
 insurance is all concurrent; if property is rated under co- 
 insurance conditions and insured at flat rates, talk coinsur- 
 ance rates, and if at 80% coinsurance rates, see if the reduc- 
 tion for the use of 100% clause will prove attractive. Always 
 make a note of the expiration of existing insurance and 
 keep it tabulated so you can solicit the lines a month or so 
 before they expire. 
 
 Cultivate architects and builders who may give valuable 
 pointers; loaning institutions, lawyers and real estate men 
 often place insurance and may be made valua- 
 Service ble clients ; there are many avenues for obtain- 
 
 ing insurance besides the direct solicitation of 
 the owner. If no fire insurance is wanted, try for a tornado 
 or hail policy, or one on rents, or use and occupancy. Per- 
 haps the key-note of success in soliciting is preparedness, that 
 is, the submission of a concrete proposition to insure, giving 
 the form of cover and the cost : Nothing else will so quickly 
 give the impression to the insured that the agent knows his 
 business and is thorough, reliable and able to give helpful 
 service, not only in arranging for insurance under adequate 
 forms at the lowest rates obtainable from reputable com- 
 panies, but also in sound advice and assistance in case a loss 
 occurs. A reputation for intelligent and reliable service once 
 established is a most valuable asset. 
 
14 THE AGENTS KEY TO FIRE INSURANCE 
 
 The local agent acts as a middleman between the company 
 on the one hand and the insured on the other and in turn 
 
 is the representative of each. The query is 
 Middleman often propounded: **Is the local agent's first 
 
 obligation to his client or his company?" Why 
 to one more than the other ? His obligation is to his client in 
 the things he is doing for his client and to the company in 
 the things he is doing for it. Thus his work and duties are 
 naturally divided into two branches: — 
 
 To coordinate information of all kinds respecting the prop- 
 erty to be covered; to draw policy forms and examine poli- 
 cies written, to see that they give adequate 
 Duty to coverage and the necessary and desirable privi- 
 
 Client leges and are free from non-concurrence; to 
 
 dissect insurance rates, advise regarding im- 
 provements, and secure the lowest rates obtainable from 
 reputable companies for the kind of indemnity required; to 
 assist the insured in case of loss and to advise with him on 
 all insurance matters. 
 
 To report promptly all business binding or written, with all 
 necessary and material information; to learn and follow the 
 
 underwriting practices of each company repre- 
 Duty to sented ; to comply with general or specific in- 
 
 Company structions and particularly to cancel policies 
 
 promptly when requested; to answer corre- 
 spondence within reasonable time; to collect premiums and 
 remit balances within the time agreed upon; to report losses 
 as soon as possible after the fire, with information as to the 
 property covered and the estimated amount of loss thereon, 
 the cause of fire and all material information obtainable: 
 In short, to act truly as the local representative of the com- 
 pany, responsible for the conduct of its affairs. The reputa- 
 tion of a company in a given locality is to a large degree that 
 of its local agent. 
 
 An agent cannot make a valid contract with himself, hence, 
 if he desires to insure his own property the assent of his 
 
 company should be obtained to make such 
 Agent's transaction binding. This may be done by an 
 
 Own exchange of letters, or by sending a policy, 
 
 Property duly made out, for approval or countersigning 
 
 by an official of the Company. 
 
THE AGENT 16 
 
 An agent cannot legally bind or issue the policy of one of 
 
 his companies as reinsurance of another company which he 
 
 also represents, for the reason that the agent 
 
 Reinsurance cannot act in matters of discretion for the two 
 
 by Agent parties in the same transaction. 
 
 The New York Court of Appeals, in Empire 
 State Insurance Co. vs. American Central Insurance Co., 
 states this principle of law as follows, in part : — * * The same 
 person may sometimes act as agent for the two parties in the 
 same transaction, but he can do so only in case he has no 
 discretion to exercise for either party." Where he is vested 
 with discretion, as an insurance agent is, and acts for both 
 companies, he occupies "an antagonistic position, and there 
 would be a conflict of interests. Contracts thus negotiated 
 are void at the option of any non-assenting party thereto. It 
 matters not that the agent has acted fairly and honestly, 
 and that neither party to the contract has suffered injury." 
 
 The agent may have an understanding with his companies 
 whereby each agrees in advance to ratify reinsurance of — 
 or hj — anj' other of his companies, but otherwise each such 
 reinsurance must be dub" ratified to make it valid. 
 
 Sometimes when an agency is terminated the certificate 
 of authority issued to such agency by the company cannot 
 be found. In such case it is customary to have executed 
 a certificate of which the following is an illustration: 
 
 "Certificate of Loss of Agency Commission 
 
 ' ' Agency at 19 
 
 **This is to certify that the Commission issued by 
 
 Insurance Company to 
 
 as its Agent 
 
 for and vicinity 
 
 has been lost or destroyed and cannot be produced, and 
 that we hereby release the said Insurance Company from 
 all liability under said Commission, which we acknowledge 
 to be no longer of any force or effect, and we agree to 
 return it to the Company should it be found. 
 
 Agent. ' ' 
 
CHAPTER III 
 THE BROKER 
 
 Local — General — Solicitors. 
 
 The fire insurance broker as such does not represent any 
 company and is considered to be the representative and 
 agent o£ the insured, though it has been held in some courts 
 that he is the agent of the company in so far as the collec- 
 tion of the premium is concerned. The broker is a free- 
 lance in soliciting and in placing business, being confined 
 neither to any given territory in obtaining business nor to 
 any given company in placing his business. Brokers may be 
 divided into two classes, local and general. 
 
 Local Brokers. The local broker confines his soliciting 
 mostly to his own town and vicinity, and many cities have 
 brokers of this type who are much the same as solicitors, 
 except that they do not place all their business through one 
 agency. 
 
 G-eneral Brokers. The general broker does not confine 
 himself to any one locality but seeks business wherever he can, 
 especially the accounts of large concerns, and is the type of 
 broker to which the remarks that follow chiefly apply. He 
 frequently deals direct with the company at its head or 
 branch offices, in which case the application for the business 
 there bound is usually sent to the local agent where the 
 property covered is situated, for him to issue a policy in 
 accordance with local rates and rules, the policy being re- 
 turned to the company for delivery to the broker and the 
 collection of the premium. The commission paid the broker, 
 usually termed the brokerage, is less than the agent's com- 
 mission, and the agent receives what is termed an overriding 
 (sometimes called overwriting) commission for issuing the 
 policy and giving the company information about the risk 
 covered. 
 
 16 
 
THE BROKER 17 
 
 The broker occupies a useful and necessary place, particu- 
 larly in financial centres where large concerns have their 
 
 headquarters. Such concerns frequently have 
 Service of property in many localities and States, with 
 Broker separate rating organizations, differing rules in 
 
 regard to forms and clauses, and the privi- 
 leges that maj^ be granted, so that if such concerns were to 
 attempt to handle their fire business through the local agents 
 in the places where their various properties are situated, it 
 would often be necessary to employ the services of an expert 
 to look after that work alone. The broker's service elimi- 
 nates this necessity and consequent expense, and in addition 
 furnishes a similarity of forms and cover, and a coordination 
 of all insurance, that would be difficult to obtain when deal- 
 ing with many agents instead of one broker. Then, too, the 
 local agent is often unknown to the headquarters officials; 
 business would necessarily be transacted largely by corre- 
 spondence; whereas, if something arises of an unusual nature 
 or requiring the services of an expert, the broker is available 
 on short notice for a personal interview. Another important 
 thing is that frequently additional insurance is needed, or a 
 privilege is necessary, or some change occurs which renders 
 the insurance void unless endorsed. It would sometimes be 
 impossible to have this bound at once when dealing through 
 local agents in several distant States, but the broker can 
 usually protect his client by securing binders within an hour 
 or two of receiving the order. 
 
 On the other hand, it may be pointed out that there are 
 certain advantages in dealing with the local agent where it 
 
 is possible, for he often is influential in local 
 Agent vs. matters and can aid in securing for his client 
 
 Broker from the local authorities those privileges and 
 
 accommodations that are frequently needed by 
 a large concern. The business enterprise which consistently 
 endeavors to win local sentiment and friendliness is apt to 
 have, thereby, greater success in handling its labor prob- 
 lems and its necessities for municipal service; it has a power- 
 ful advocate in the local agent, who is usually a representa- 
 tive man in his locality. Recognizing this fact, the insured, 
 though he feels it necessary to have the services of a broker, 
 frequently directs that the insurance shall be placed through 
 pertain designated local agents and the commissions divided. 
 
18 THE AGENTS KEY TO FIRE INSURANCE 
 
 For business that is controlled where it is located, the local 
 man should be in position to give equal or better service than 
 an outsider; but the local agent, if he is to give such service, 
 needs to have the same familiarity as the broker with rates, 
 schedules, rules and forms, and maintain the same equipment 
 for handling all questions that may arise. If he is so equip- 
 ped, he has then the advantage which always lies with the 
 man on the ground. 
 
 Solicitors. The solicitor usually is connected with an agent 
 or broker and is compensated either by salary or commission. 
 In either case the business he obtains is usually handled by 
 his principal, except for the delivery of the policy and the 
 collection of the premium. 
 
CHAPTER IV 
 
 INSURANCE ORGANIZATIONS 
 (AGENTS AND STOCK COMPANIES) 
 
 Co-operation Efforts — Engineering — Technical — 
 Underwriting — Rating — Inspecting — Adjusting — 
 Social — Educational. 
 
 In a business so extensive as fire insurance, it is natural 
 that there should be many organizations and associations 
 with various objects in view and these are briefly reviewed. 
 
 National Association of Local Agents. Local agents main- 
 tain this organization and in most States a State Association 
 with the object of exchanging information of mutual interest, 
 keeping watch on the legislation introduced, securing uni- 
 formity of practice in those things susceptible to such treat- 
 ment and for such other objects as may promote their mutual 
 welfare. It was through the efforts of the National and 
 State Associations that the uniform monthly account and 
 the uniform daily report blank have been adopted; also an 
 agreement on the part of most companies not to write ' * over- 
 head" — that is not to write business in a given territory 
 except through the local agent commissioned therefor. 
 
 Insurance Federations. Agents are also largely interested 
 in the Insurance Federation of America which numbers in 
 its ranks both fire and casualty insurance agents and many 
 fire and casualty companies. There are also many State 
 Federations with similar membership. The object of the 
 Insurance Federation is to promote healthy conditions in 
 insurance in each of the States and to oppose legislation 
 inimical to the interests of its membership, particularly that 
 which contemplates that the State itself sell or otherwise 
 provide indemnity for loss. 
 
 Local Boards. In many of the cities, towns and counties 
 local agents representing stock fire insurance companies 
 maintain local Boards a few of which have rate making 
 powers and are supported by assessments on premiums writ- 
 ten. Most of such Boards are maintained by the agents 
 
 19 
 
20 THE AGENTS KEY TO FIRE INSURANCE 
 
 themselves for the purpose of establishing local practices, 
 such as the amount of brokerage payable and various other 
 agreements intended for the benefit of the members. 
 
 National Board of Fire Underwriters. Of the several 
 organizations maintained by stock fire insurance companies 
 tliis is one of the most important in character 
 General of work and universality of membership, which 
 
 Character comprises nearly all the stock fire insurance 
 companies transacting any considerable amount 
 of business. It has no supervision over rates, commissions 
 or agents, nor any direct authority over the business in 
 general, but confines its activities in an advisory capacity 
 to legal, technical, engineering and statistical features of 
 the fire insurance business. 
 
 It promulgates standards for public and private fire 
 department organizations, for the protection of buildings and 
 
 their parts from fire and for the installation 
 Building and of machinery whose operation has inherent or 
 Protection incidental fire hazard. It also promulgates and 
 Standards endeavors to secure the adoption of improved 
 
 building codes and of ordinances designed for 
 the greater safety from fire hazard. Its work inures to the 
 benefit of the public as well as to insurance companies be- 
 cause of its active and intelligent efforts towards fire 
 prevention. 
 
 Its engineering department makes surveys of American 
 cities to determine the character of the fire hazard as a 
 
 whole and of the protection available, con- 
 Engineering suiting with the city authorities in all matters 
 Reports relating thereto. Its reports go into a great 
 
 deal of detail covering water supply, fire de- 
 partment, fire alarm, building and structural conditions and 
 important occupancies. 
 
 For immediate use in case of a conflagration, it maintains 
 an equipment consisting of a detailed working method for 
 
 handling losses on a large scale and a cabinet 
 Losses and containing all the cards, indexes, folders and 
 Arbitration other blanks necessary for the organization of 
 
 a central ofi&ce and a general loss committee. 
 It also stands ready through its committee on adjustments 
 to act as arbitrator in case of dispute among companies 
 regarding their liability as reinsurers, or in apportionments 
 of non-concurrent insurance. 
 
INSURANCE ORGANIZATIONS 21 ] 
 
 Arson It also maintains an Arson Bureau wliose ac- ! 
 
 tivities are directed against incendiaries. \ 
 
 Through its committee on laws and its general counsel, i 
 
 it keeps in touch with the constantly changing statutes and ; 
 
 the great amount of proposed legislation in 
 
 Laws the various States and endeavors to interpret ^ 
 
 the State laws and the rulings and regulations i 
 
 of the various insurance departments to its membership. i 
 
 i 
 
 In 1917 the National Board adopted a standard classifica- I 
 
 tion of 454 classes, which were later condensed to 151, and i 
 
 formed the Actuarial Bureau which con- ^ 
 
 Actuarial tains in its membership most of the stock com- ; 
 
 Bureau panies and many of the mutual companies ! 
 
 operating in the United States. This Bureau i 
 
 tabulates all of the writings, premiums and losses of the ! 
 
 members, each of whom furnishes it annually with the j 
 
 amount of liability written and the premium received on i 
 
 each class in each State of the United States and a report • 
 
 regarding each loss that occurs. A further feature of the ' 
 
 Bureau is the special recording of each loss that is reported i 
 
 to have been fraudulent or of incendiary origin. j 
 
 Underwriters' Laboratories, Incorporated. This was es- \ 
 
 tablished in 1893 by the stock fire insurance companies. Its ■ 
 
 main office and laboratory is in Chicago and is said to be i 
 
 one of the few standard fireproof buildings in the world. ; 
 In this plant careful and exacting tests are made of various 
 
 materials and devices directly or indirectly associated with j 
 
 building construction and equipment, fire protection, pre- • 
 
 vention and extinction. If found to fulfill the standard i 
 
 requirements of the Underwriters Laboratories it issues a < 
 
 formal approval of the device or material, which then be- ! 
 comes accepted and approved by all the underwriting organ- 
 izations where recognition is called for by rating schedules 
 
 or other rules. ■ 
 
 i 
 
 Among the things so tested are sprinkler heads, gasoline \ 
 and acetylene lighting systems, fire extinguishers, hose, ; 
 pumps and many other articles whose use and operation ■ 
 have to do with fire hazards or prevention. The organiza- ' 
 tion is now supported almost entirely by fees received from 
 manufacturers whose devices and inventions are tested, busi- 
 ness men having found that the approval of the Labora- < 
 
32 THE AGENTS KEY TO FIRE INSURANCE 
 
 tories is of sufficient value for selling purposes to warrant 
 the moderate costs involved. 
 
 In practice it has been found that mere formal approval of 
 an article submitted is not sufficient for the needs of manu- 
 facturers, the public and others, since the goods when placed 
 on the market may not be up to standard. Therefore, a 
 label service is maintained by which, under certain specified 
 conditions of inspection and supervision, manufacturers are 
 authorized for a small fee to attach the Underwriters' label 
 to their goods, this carrying with it in effect the warranty 
 by the Laboratories that the article is up to the required 
 standard. Final action on the merit or demerit of a given 
 article submitted for test by the Laboratories is taken upon 
 the authority of an advisory council, of which one member 
 is a representative of the Bureau of Standards of the United 
 States Government, which acts as a court of last resort in 
 case a decision is questioned. 
 
 National Fire Protection Association. This is an organiza- 
 tion numbering in its membership both stock and mutual fire 
 insurance companies and "more than one hundred national 
 associations and business organizations covering nearly the 
 entire field of commercial activity. Its objects are to pro- 
 mote and improve fire protection and prevention methods, 
 draft standards for construction of buildings, for the manu- 
 facture and installation of machinery and equipment and for 
 all the various kinds of protective and fire fighting apparatus 
 and devices. This organization initiates many of the stand- 
 ards later adopted by the National Board of Fire Under- 
 writers and other organizations. 
 
 The Eastern Union. This is a voluntary association of 
 stock fire insurance companies having for its purpose, where 
 lawfully permitted, the securing of uniformity in methods 
 of rate making, forms of policies, compensation to agents 
 and the conserving of good practices in general. The 
 membership comprises over one hundred companies which 
 write about 75% of the total amount of agency fire premiums 
 in the New England, Middle and such of the Southern States 
 as are embraced in its field of operations. 
 
 Western Union and Western Insurance Bureau. These 
 two organizations have functions in the Central and Western 
 States similar to those of the Eastern Union. 
 
INSURANCE ORGANIZATIONS 23 
 
 The Rocky Mountain and Pacific States also have associa- 
 tions which regulate commissions and make rates where they 
 are not in the hands of independent rating bureaus. 
 
 UlSTDERWRITINa ASSOCIATIONS 
 
 There are a number of associations having a stock com- 
 pany membership which underwrite for their members cer- 
 tain specified classes of business and maintain their own 
 offices and salaried employees. The members share in the 
 business equally up to an agreed maximum, or upon a fixed 
 percentage of all lines written, and likewise in the expenses 
 and losses sustained. Such associations include the follow- 
 ing: 
 
 Factory Insurance Association. This is a group of stock 
 fire insurance companies associated together under one man- 
 agement, with its office in Hartford, Conn., for the purpose 
 of competing with the Senior and Junior Mutuals on the 
 same class of business written, namely, high grade sprink- 
 lered risks. 
 
 The F. I. A. carefully selects its risks, imposes standards 
 of construction and protection that compare with those of 
 the Mutuals, but as a rule are less onerous for 
 Method of the insured, and give an excellent inspection 
 Operation service that is one of the most valuable fea- 
 tures of its work and a great advantage to the 
 insured as an aid in preserving property from destruction by 
 fire. 
 
 This association issues policies on the standard form pre- 
 scribed by the State where the property insured is located, 
 and adjusts its own losses. Its rates of premium are about 
 the same as the net cost of insurance in the Mutuals. It 
 deals with the insured through the medium of such agent or 
 broker as the insured may designate and pays a commission 
 on the premiums of all policies issued, either new or re- 
 newals. Protection may be obtained against loss by fire, by 
 sprinkler leakage and by tornado, and in some cases against 
 loss of Use and Occupancy. 
 
 The advantage of dealing through the Factory Insurance 
 Association is that policies are in the standard form and, 
 therefore, non-assessable. The premium cost is known in 
 advance and is about the same net cost as for insurance in 
 
24 THE AGENTS KEY TO FIRE INSURANCE / ] 
 
 i 
 
 the Mutuals, and does not depend on dividends; in other | 
 words, is not affected if the fire cost in any one year is 
 excessive. i 
 
 Western Factory Insurance Association; Western Sprin- I 
 klered Risk Association; Underwriters' Service Association, j 
 
 These three organizations have their headquarters in Chi- j 
 cago, operate in the Central and Western States and are ■ 
 similar in organization, purpose and method of operation 
 to the F. I. A. The last named is authorized to write other 
 classes of business, but has not done so to any large extent. ; 
 
 Cotton Insurance Association. Cotton is the most im- \ 
 
 portant product in the Southern States and the class calls ' 
 
 for such specialized underwriting that in 1905 a number of ; 
 the companies formed the Cotton Insurance Association, 
 
 which writes cotton in storage, in compresses, in transit, etc., : 
 
 for its members. It is able to give cover and service to large ' 
 
 cotton factors that it would not be possible for any one , 
 
 company to give if it handled the business independently. \ 
 
 Cotton Fire & Marine Association. This was organized in 
 1919 for a similar purpose as the C. I. A., the two being \ 
 competing organizations. 
 
 Underwriters' Grain Association. This organization was ■ 
 formed during the war, when companies were called upon ' 
 to furnish very large amounts of insurance on grain in j 
 elevators and were asked to do everything in their power j 
 to reduce fire hazards and increase the protection in terminal i 
 elevators, in order that the great quantities of very necessary I 
 foodstuffs should be preserved from destruction. Inspection 
 and supervision of elevators by this organization and the 
 convenience found by grain handlers in dealing with one 
 source regarding insurance matters has had the effect of 
 continuing the Association in existence. Agents and brokers 
 are paid a commission on such business as thev place through 
 the U. G. A. 
 
 Oil Insurance Association. This organization was formed 
 in 1918 for the purpose of handling certain oil business for 
 the companies which it represents as an underwriting and 
 reinsurance medium. Its headquarters are in Chicago in 
 charge of a salaried manager. Its work involves the in- 
 spection, supervision and underwriting of oil refineries and 
 tank storage of crude and refined oil and its products, espe- 
 
INSURANCE ORGANIZATIONS 25 
 
 cially in certain of the southwestern states. It deals through 
 agents and brokers with the various oil interests and arranges 
 for the issuance of one policy covering an entire schedule 
 in one of the companies for which it acts, placing the neces- 
 sary reinsurance with the other companies represented. Any 
 policies written are always in the standard form prescribed 
 in the state where property insured is located and issued 
 through the accredited local agent of the company whose 
 policy is placed in the hands of the insured. It uses the 
 standard forms and the rates that are made by the recog- 
 nized rating bodies, paying a commission to agents on all 
 policies issued whether new or renewals. Protection may 
 be obtained against loss by fire, lightning and tornado, 
 including use and occupancy cover. 
 
 Railroad Syndicates. Steam railroad properties have been 
 written for many years by syndicates or groups of fire in- 
 surance companies, onq in the east and one in the west, 
 being handled on much the same plan as the Oil Insurance 
 Association. 
 
 VARIOUS OTHER ORGANIZATIONS 
 
 There are a number of organizations either operated in 
 connection with rate making bodies, or independently, which 
 have certain definite functions to perform that have a useful 
 purpose in the fire underwriting world. 
 
 Central Traction & Lighting Bureau. This is an organiza- 
 tion of stock companies which is not a rate making or under- 
 writing body, but has for its functions the recommending 
 of rating schedules and standards of construction and pro- 
 tection for street railway properties and electric light and 
 power plants. 
 
 Inspection Bureaus. There are three inspection bureaus 
 maintained by stock companies in the New England and 
 Middle States, one in Texas and one on the Pacific Coast. 
 These Bureaus make periodical inspections of sprinklered 
 and unsprinklered special hazards in their various fields and 
 furnish surveys, diagrams and other reports to the member 
 companies. 
 
 Electrical Inspections. Although many municipalities at- 
 tempt to inspect and regulate electrical wiring and apparatus 
 in use, it has been found to be an advantage in many sections 
 
26 THE AGENTS KEY TO FIRE INSURANCE 
 
 of the United States for fire insurance companies to main- 
 tain special bureaus, or departments under the supervision 
 of rating organizations, with the object of inspecting all the 
 electrical installations. Where these are found to be in 
 accordance with the National Electric Code a certificate is 
 issued to the property owner on the payment of a small 
 fee. In localities where this is done no permit to use elec- 
 tricity is given on insurance policies except with the pro- 
 vision that such a certificate has been issued. In many cases 
 an understanding exists between the underwriters and the 
 electric light and power companies that the current will not 
 be turned on until the installation has been approved. The 
 National Electrical Code has become the accepted standard 
 and being so recognized fixtures, devices and all articles in- 
 tended for electrical installations are available everywhere, 
 so that the electrical problem has become greatly simplified. 
 
 Reinsurance. The majority of companies for many years 
 confined their lines largely to the amounts they could retain 
 for their own account and these varied from $1,500 to $5,000 
 or more according to class. With the increased efficiency 
 of fire protection, the growth and concentration of values 
 and the larger assets of the fire insurance companies, not 
 only have retained lines become greater, but also the practice 
 has developed of accepting gross lines much in excess of 
 the amount to be retained, the surplus being reinsured. 
 
 The need of reinsurance facilities, combined with the desire 
 not to lose the benefits of the surplus amounts given off, 
 led to the formation, in 1911, of the Reinsurance Bureau 
 for the purpose of exchanging reinsurances. Each member 
 company may cede thereto an amount equal to its own re- 
 tention on any class of risk except where located in certain 
 defined congested areas of cities and each member shares 
 upon a stipulated percentage in the total premiums received 
 and in the expenses and losses incurred. 
 
 The Reinsurance Clearing House was later formed and 
 operates in much the same way as the Bureau. 
 
 Almost all fire insurance companies have what are known 
 as ^* reinsurance treaty contracts" under which the rein- 
 suring company is obliged to accept any risk ceded to it 
 under the terms of the treaty. There are a few American 
 reinsurance companies and some direct writing stock com- 
 panies that make treaty reinsurance contracts, but the bulk 
 of such business is in the hands of foreign companies. 
 
INSURANCE ORGANIZATIONS 27 
 
 Adjustment Bureaus. It became evident some years ago 
 that a method of adjusting losses must be found which would 
 be less expensive and cumbersome than by having each of 
 the several companies interested in a single loss represented 
 by a separate adjuster. This led to the formation in 1905 
 of the General Adjustment Bureau, and later of four other 
 bureaus, the five now maintaining some sixty offices scattered 
 over the United States and a large corps of trained adjusters 
 and other employees. These bureaus, while under the direc- 
 tion of certain of the stock fire insurance companies, will 
 adjust losses for non-members as well as for members. 
 
 Salvage Corps. An important co-operative effort of the 
 stock fire insurance companies is the maintenance in many of 
 the larger cities of salvage corps, sometimes called *'fire 
 patrols" or ** protective departments." These organisations 
 have certain rights recognized by the various cities in which 
 they operate and their duty is to protect property at the time 
 of fire and so far as possible to reduce the damage especially 
 from water. 
 
 KINDRED ASSOCIATIONS 
 
 There are a number of organizations maintained in con- 
 nection with the many other classes of business that fire in- 
 surance companies write besides that which is usually termed 
 regular fire insurance. Such associations have for their 
 purpose the standardizing of forms of policies and their 
 conditions, rates of premiums, commissions or brokerage 
 payable, and other rules and practices that are for the com- 
 mon interest. 
 
 Aircraft. The National Aircraft Underwriters ' Association 
 assumes jurisdiction over this class for the entire United 
 
 States. 
 
 Automobile. The following organizations have territorial 
 jurisdiction as indicated by their names: National Auto- 
 mobile Underwriters ' Conference, Eastern Automobile Under- 
 writers ' Conference, New England Automobile Underwriters' 
 Conference, Southern Automobile Underwriters' Conference, 
 Western Automobile Underwriters' Conference, and the 
 Pacific Coast Automobile Underwriters' Conference. 
 
 Explosion, Riot and Civil Commotion. The Explosion Con- 
 ference with headquarters in New York and the Western 
 
28 THE AGENTS KEY TO FIRE INSURANCE 
 
 Explosion Conference with headquarters in Chicago, between 
 them have jurisdiction over the entire United States. 
 
 Hail. The Western Hail and Adjustment Association op- 
 erates in the Central and Western States, where practically- 
 all of the hail business is done and the Pacific Coast Hail 
 Association supervises the small amount of business written 
 in that territory. 
 
 Mail Package and Tourist Floater. Both of these classes 
 come under the supervision of the Tourist Floater Insurance 
 Conference for all the United States. 
 
 Registered Mail. There are several groups of companies 
 formed for the purpose of sharing the liability, premiums, 
 losses and expenses on registered mail business upon an 
 agreed percentage, which attempt to regulate the practices 
 relating to this class of insurance. 
 
 Sprinkler Leakage. This class is under the jurisdiction of 
 the Sprinkler Leakage Conference and the Western Sprinkler 
 Leakage Conference respectively. 
 
 Water Damage. The Water Damage Conference has juris- 
 diction for the entire United States. 
 
 Windstorm or Tornado. The Eastern Tornado Associa- 
 tion has supervision over the New England and Middle 
 States and the Southern Tornado Association over the 
 Southern States. The Western Union and Western Insurance 
 Bureau look after the Central and Western States and 
 similar associations supervise the class in the Rocky Moun- 
 tain and Pacific Coast States. 
 
 Social and Educational Organizations. There are many 
 societies, associations or clubs that were formed with the 
 thought of proving a benefit to the business from an edu- 
 cational or social standpoint. Membership in such organiza- 
 tions is individual rather than a company membership. 
 Among such may be mentioned the Insurance Library Asso- 
 ciation of Boston, which maintains the most comprehensive 
 library on fire insurance in the United States; the Insurance 
 Society of New York, which was the first organization of the 
 kind in this country, there being seventeen similar societies 
 now in existence; and the Insurance Institute of America, 
 which conducts classes in insurance each year in various 
 insurance centers. There are numerous local associations 
 
INSURANCE ORGANIZATIONS 29 
 
 of fieldmen, such as the Fire Underwriters' Association of 
 the Northwest, the Smoke & Cinder Club of Pittsburgh and 
 others. One of the interesting national organizations that 
 is social in character is known as the ^'Ancient & Honorable 
 Order of the Blue Goose," with local *' ponds," in many 
 of the States, membership being open to officers of the com- 
 panies, general agents and fieldmen, independent fire insur- 
 ance adjusters, members of the editorial staffs of insurance 
 publications and officials of various organizations to which 
 insurance companies are subscribers. Most of the organiza- 
 tions grouped under this heading do not attempt any juris- 
 diction over agents, rates, compensation, or any other under- 
 writing questions, but are of value in bringing insurance men 
 together for the exchange of information and the promotion 
 of good fellowship. 
 
CHAPTER V 
 
 GENERAL OFFICE WORK 
 
 Supplies — Lost Policy Vouchers — Daily Reports — 
 Binders — Monthly Accounts — Agent's Commis- 
 sions — Collection of Premiums and Payment of 
 Balances — Office Records— Correspondence — In- 
 structions — Reporting Losses — Keeping Records. 
 
 Each company supplies the agent with blank policies ; daily 
 reports and a register for his own use; blanks for reporting 
 
 losses; requisition blanks for ordering supplies 
 Supplies and forms for use in writing policies, unless 
 
 these are furnished by some central body. 
 Various other supplies are usually available and the com- 
 pany's requisition blank will indicate their nature. Rates 
 and rules will be furnished the agent in accordance with prac- 
 tices followed in his locality, together with the necessary ex- 
 planation for their use. The company will also furnish the 
 agent with instructions regarding its underwriting practices, 
 with restrictions, if any, as to classes he must avoid and the 
 lines (that is, amount of policy) he may write on a single 
 risk, or in a block, or on given classes of business. 
 
 Policies are furnished in blank by each company and are 
 usually numbered in print consecutively and should be used 
 
 in numerical order. The printed number of a 
 Policies policy should never be changed. Policies 
 
 spoiled in writing should not be destroyed but 
 instead should be returned to the company. The agent is 
 charged with each blank policy furnished to him and is 
 expected to account for each by returning it or reporting its 
 issuance. If a blank policy is lost the fact should be re- 
 ported to the company, when its own particular form of 
 voucher executed by the agent will usually be required. 
 
 Lost Policy Voucher (Agent). Where agent has lost a 
 blank policy the following form of voucher may be used if 
 the company does not furnish one: 
 
 30 
 
GENERAL OFFICE WORK 31 ! 
 
 Agency 19 I 
 
 residing in i 
 
 County of State of being first duly sworn 
 
 upon oath depose . . and say., that ..he., (is) (are) Agent., j 
 
 of the Insurance Co., for and < 
 
 vicinity : that . . he . . received from the said Insurance Com- 
 pany certain blank Insurance Policies of said Company, num- : 
 
 bered for use in Agency. That : 
 
 Insurance Folic, numbered ha., been mislaid j 
 
 or lost and cannot be found; that said Folic, ha., never i 
 been issued by or by or with privity, knowl- 
 edge or consent, to any person, persons or corporation, and { 
 that said Folic, (is) (are) null and void, and whenever j 
 found will be returned to said Insurance Company. j 
 Subscribed and sworn to before me, ■ 
 this day of 19 (L. S.) > 
 
 Agent "'' 
 
 Notary Fublic. 
 
 ! 
 
 The voucher should be signed and sworn to by the agent | 
 
 personally, or if the agency is a partnership by one of the 1 
 
 partners signing for the partnership as follows: ''John R. ' 
 
 Doe & Co., by Richard Roe, a member of the firm". Or if ) 
 
 a corporation by one of the officers — preferably the one ac- ■ 
 
 customed to signing policies. \ 
 
 j 
 
 Some companies will accept a voucher in the following j 
 
 form: I 
 
 Agency at 19 . . | 
 
 I Hereby Certify that Folicy No Renewal No. = 
 
 of the Insurance Company, j 
 
 received by me as Agent of said Company, has never been I 
 
 issued to any person or party whatsoever, but has been lost 'j 
 
 or mislaid, and that there is no liability whatever on the part j 
 
 of said Company thereunder; — that I have made diligent ; 
 
 search therefor without success, and I agree to return same ■ 
 to said Company at once, if found. 
 
 Agent. ; 
 
33 THE AGENTS KEY TO FIRE INSURANCE ; 
 
 Lost Policy Voucher (Insured). The following form may 
 be used as a voucher when the insured has lost or mislaid his \ 
 policy. The return premium, if any, is figured pro rata if 
 the policy is to be re-written or short rate if the policy is to ' 
 be cancelled: 
 
 '* Agency at 19 . . . ■ 
 
 This is to Certify, that Policy No and covering \ 
 
 $ on situate i 
 
 has been lost or destroyed and cannot be produced, and in 
 
 consideration of a return premium of $ receipt of l 
 
 which is hereby acknowledged, the said Insurance Company ; 
 
 is hereby released from all liability under said policy, which j 
 
 is declared null and void and no longer of any force or effect. ; 
 Witness to Signature 
 
 Insured. 
 
 The insured will usually wish a new policy in place of the 
 one lost. This may be issued for a full term and the unearned 
 premium on the one lost credited on the premium of the new 
 policy, or a new policy may be issued for the remainder of 
 the term of the one lost, filling in as follows the space on the 
 policy where premium is usually inserted: 
 
 ''The cancellation and surrender of Policy No 
 
 and of $ '^ (insert amount of unearned premium on 
 
 lost policy). 
 
 The unearned premium stated on the lost policy voucher 
 and the premium stated on the policy replacing the one lost 
 should be identical. 
 
 REPORTING BUSINESS WRITTEN. 
 
 It is necessary that a complete and accurate copy of the 
 written portions of the policy be sent to the company on 
 blank furnished for that purpose, called the 
 Daily daily report. The information furnished there- 
 
 Report on will include the following: Name of in- 
 
 sured as entered on policy; amount, rate, 
 premium, commencement, term, and expiration, and a copy in 
 
GENERAL OFFICE WORK 33 
 
 full of the form. The daily report, in addition to being an 
 accurate record of the policy, calls for certain information re- 
 specting the insured and the property covered. Sometimes it 
 is not necessary to give the information provided for by 
 specific questions thereon: for example, no diagram is neces- 
 sary if the insurance map shows risk and exposures accu- 
 ratel}^ The company or its special agent will advise with the 
 agent respecting this part of his work and tell him what is 
 necessary or required. But it is important that no material 
 information be withheld, and if there is anything unusual 
 about the risk, known to the agent or indicated by title, rate, 
 term, amount, form, map, or exposures, a suitable explanation 
 should be made to the company on the daily report or in a 
 letter. This will save both agent and company much corre- 
 spondence. For illustration the upper half of a sample daily 
 report follows: 
 
 U risk thown on Fin 
 
 DAILY REPORT AGFNa Rochafltar, H. Y. Frt..n .. 
 
 
 
 
 
 RI<wk.N» R-\^. 
 
 H?gMgrN. 
 
 STREET: 
 
 784692 
 
 N«m> 
 
 
 Nn 
 
 F-Vamnl** In^iirjmpp f^.r»mniin\/ rtt M««... \/^ i_ 
 
 
 
 cw I urK. 
 
 TWa SPACE FOB HOME OFFHX USE Ora.Y 
 
 Amount $_ 
 
 _60Q0^. 
 
 - 
 
 Pate .60 PrPmium $ 2,Q. 00 
 
 
 Thirty and OO/lOO Dollarx Premium 
 
 Assured 
 
 
 
 
 far thit iermnf thras vearB 
 
 from the^ 
 
 34th 
 
 
 day of Jantiary IffLI at nnnn 
 
 totht 
 
 S4th 
 
 
 day of 3maaX7 /.«0 at nnon 
 
 AMOCMT INSUSED 
 
 
 
 Piva 
 
 ThomBand and 00/100 n„//^. 
 
 ' ■ ■'^'""j- 
 
 Give F«ll C«»r of Writln tmiMm •( Politr 
 
34 THE AGENTS KEY TO FIRE INSURANCE 
 
 The agent should notify the company without delay when- 
 ever he binds insurance on a risk to take effect at once or 
 
 prior to the time when the daily report would 
 Binders in the ordinary course of business reach the 
 
 company's office. Such notice of insurance 
 binding may be in the form of a letter or a printed slip such 
 as the following: 
 
 Insurance Company. 
 
 INSURANCE IS BOUND AS FOLLOWS : 
 
 In the name of 
 
 Amount, $ , dating from 191 
 
 Covering on 
 
 Situate 
 
 for months, at rate of 
 
 Coinsurance clause attached. 
 
 Agent. 
 
 The agent may bind insurance orally, but if this is done he 
 should confirm it in writing. Where one agent represents a 
 number of companies, he should, as soon as he binds insur- 
 ance, designate the companies by name together with the 
 amount for which each company is bound. On one occasion 
 an agent bound some insurance by telephone about 12:15 
 P. M. and then went home to luncheon without having made 
 any notation or deciding in his own mind as to the companies 
 in which he intended to bind the line. Before he returned fire 
 had destroyed the risk. The agent represented twenty com- 
 panies and he found himself in a very embarrassing position, 
 as may readily be imagined. 
 
 At the end of each month, the agent should make up and 
 send to the company a monthly account, on blank furnished 
 
 for the purpose, showing in numerical order 
 Monthly the policies issued during the month with the 
 
 Accounts premiums thereon, together with additional 
 
 premiums for endorsements made during the 
 month; also showing any policies cancelled during the month 
 
GENERAL OFFICE WORK 
 
 35 
 
 with the return premiums therefor, together with the return 
 premiums for endorsements made during the month; also 
 the amount of agent's commissions on the net premiums. 
 These items, with any charges or credits that have occurred 
 during the month, such as a charge for map or map correc- 
 tions, constitute the agent's monthly balance, which is to be 
 paid in amount as rendered. 
 
 The making out and forwarding of the monthly account 
 should not be delayed awaiting collections; the company 
 needs the account promptly in order to close its books. Can- 
 celled and spoiled policies should not be held until account 
 is made up, but should be forwarded to the company as soon 
 as possible. 
 
 For illustration, a copy of a monthly account properly 
 made out is appended. 
 
 (Official Blank of National Association of Insurance Agents.) 
 JOHN R. HORNER. AGENT AT PLEASANT VALLEY, PA. 
 
 In Account With 
 
 EXAMPLE INSURANCE COMPANY 
 
 Month op January, 1920 
 
 
 
 Gross Premiums 
 
 
 Expiration I 
 
 For 
 
 N limber 
 
 Amount 
 Insured 
 
 
 
 
 Term 
 (in 
 
 
 
 Home Offi 
 
 
 
 
 
 
 
 Use 
 
 
 
 15% 
 
 20% 
 
 25% 
 
 years) 
 
 Mo. 
 
 Yr. 
 
 Class 
 
 124967 
 
 4000 
 
 
 
 
 
 20 
 
 00 
 
 3 
 
 1 
 
 23 
 
 
 968 
 
 2000 
 
 
 
 
 
 8 
 
 00 
 
 3 
 
 1 
 
 23 
 
 
 969 
 
 3000 
 
 
 
 18 
 
 00 
 
 
 
 1 
 
 1 
 
 21 
 
 
 970 
 
 1000 
 
 15 
 
 00 
 
 
 
 
 
 1 
 
 1 
 
 21 
 
 
 971 
 
 Spoiled 
 
 
 
 
 
 
 
 
 
 
 
 972 
 
 20000 
 
 180 
 
 00 
 
 
 
 
 
 1 
 
 1 
 
 21 
 
 , 
 
 973 
 
 5000 
 
 
 
 40 
 
 00 
 
 
 
 5 
 
 
 26 
 
 
 974 
 
 9000 
 
 63 
 
 90 
 
 
 
 
 
 X 
 
 6 
 
 20 
 
 
 975 
 
 500 
 
 
 
 
 
 2 
 
 50 
 
 1 
 
 1 
 
 21 
 
 
 ^otal 
 
 
 
 
 
 
 
 
 
 
 
 Total Gr« 
 
 'remiums.. 
 
 
 258 
 
 90 
 
 58 
 
 00 
 
 30 
 
 50 
 
 
 347 
 
 40 
 
 Premiums 
 
 
 
 
 
 
 
 
 
 
 
 
 Icarr. for. ( 
 
 Petal 
 
 
 
 
 
 
 
 
 
 fTotal Groj 
 iCommissio 
 
 ^mmisa'oi 
 
 18 
 
 38 
 
 84 
 
 11 
 
 60 
 
 7 
 
 62 
 
 
 58 
 
 06 
 
 
 
 
 
 
 
 
 
 
 
 
 Icarr. for. ( 
 
36 
 
 THE AGENTS KEY TO FIRE INSURANCE 
 
 
 
 
 OFFICIAI 
 
 BLANK 
 
 (Continued) 
 
 
 
 
 
 
 
 Amount 
 Can- 
 celled 
 
 Return Premiums 
 
 For Home Office Use 
 
 Number 
 
 15% 
 
 20% 
 
 25% 
 
 Term 
 
 (in 
 years) 
 
 Com. 
 
 Exp. 
 
 Original 
 Premium 
 
 Clf 
 
 
 Mo. 
 
 Yr. 
 
 Mo. 
 
 Yr 
 
 
 124942 
 948 
 953 
 
 4000 
 1500 
 
 35 
 
 35 
 5 
 
 62 
 00 
 
 62 
 34 
 
 — 
 
 
 
 4 
 4 
 
 20 
 20 
 05 
 
 
 39 
 
 82 
 
 
 
 
 
 
 Return 
 Premiums 
 
 
 
 /Total Return Premiums 
 \entered below (2) 
 
 Return 
 Commissions 
 
 
 6 
 
 39 
 
 (Total Return Commis- 
 \sions entered below (4) 
 
 SUMMARY FOR THE MONTH OF JANUARY, 1920 
 
 (To be filled out by Company) 
 Total Gross Writings 
 brought forward $ 
 
 Total Gross Writings 
 cancelled $ $ 
 
 Re-insured $ $. 
 
 Net Writings $. 
 
 (1) Total Gross Premiums (To be filled out by Agent) 
 brought forward from 
 other side $347 40 
 
 (2) Less Return Premiums 
 
 as above $ $ 
 
 Re-insurance. ... $ $ 39 82 
 
 Net Premiums $307 58 
 
 (If return premiums in excess 
 extend in red ink) 
 
 (3) Total Gross Commis- 
 sions $51 
 
 (4) Total Return Commis- 
 sions _$j 
 
 Net Commission due Agent $5 
 (If return commission in ex( 
 
 extend in red ink) 
 
 (1) Total Gross Premiums brought for- 
 ward from other side 
 
 $347 
 6 
 
 40 
 39 
 
 (2) Total Return Premiums as above . 
 
 (3) Total Commission on Gross Pre- 
 miums from other side 
 
 $39 
 
 
 58 
 
 
 
 20 
 
 
 Local Board Expenses when authorized 
 
 by Company (vouchers herewith) . . . 
 
 Postage when authorized by Company 
 
 Re-insurance effected by agents (per 
 
 1 
 
 
 Loss 124269 
 
 32 
 
 
 Remittance herewith 
 
 
 Balance (if any) due Agent 
 
 
 203 
 
 
 Total 
 
 
 Total 
 
 $353 
 
 79 
 
 $353 
 
 Agency at. 
 
GENERAL OFFICE WORK 37 
 
 The agent receives his compensation in the fomi of a com- 
 mission which is calculated on net premiums written, i. e., 
 
 premiums and additional premiums, less return 
 Agents' premiums for cancellations or reductions in 
 
 Commissions rate. Return commission is credited to the 
 
 company in the same percentage as was 
 charged on the original premium. The insured pays the 
 original premium in full and in case of cancellation or re- 
 duction in rate is entitled to the full amount of the unearned 
 premium without deduction for agent's commission or for 
 brokerage. Some of the larger agencies run what they call 
 a return commission sinking fund; that is, they credit said 
 fund with a given percentage of all commissions, say 10%, 
 and then charge the fund with all return commissions in 
 full. The object of this is to provide a steady commission 
 income, for with some agencies there are seasons of the 
 year when large amounts of insurance are written under 
 annual policies which are cancelled after running a few 
 months, and without the plan outlined there would be some 
 months when the return commissions on business cancelled 
 would amount to nearly as much as the commissions on busi- 
 ness written during such time. 
 
 It is important to remember that a commission is not 
 earned until the premium on the policy is collected, nor is 
 
 the transaction complete until the company is 
 Collection paid its premium. There is unfortunately no 
 and time within which it is the universal custom 
 
 Payment to require payment of premiums on the part 
 
 of the insured, though there are a number of 
 localities where it is the rule to cancel policies if they are 
 not paid for within forty-five days. There is no good reason 
 for extending undue credit and it is often remarked that 
 since the insured is always anxious to have any loss that 
 occurs paid promptly, he ought to be willing to pay the 
 premium promptly. The companies as a rule require bal- 
 ances to be paid within a stipulated time whether the agent 
 has made collection or not, and this is necessary for the safe 
 conduct of the business and on the whole results beneficially 
 to the agent. It necessitates his putting some capital into 
 his business but on the other hand is a check against undue 
 credit. Many agents will not deliver small premium policies 
 until they are paid for, since the cost of running after little 
 premiums often amounts to more than the ^commission in- 
 j^olved. 
 
38 THE AGENTS KEY TO FIRE INSURANCE ' 
 
 A very interesting method of collecting insurance pre- I 
 
 miums has been adopted with success by agents in certain ] 
 
 localities, being an adaptation to the fire ; 
 
 Trade insurance business of the Trade Acceptance, j 
 
 Acceptance so familiar in commercial lines. The way in j 
 
 which the plan is carried out is as follows: j 
 
 When policies are forwarded to the insured they are j 
 
 accompanied by a statement of the premiums involved. If ' 
 
 these remain unpaid at the end of thirty days, or there- i 
 
 abouts, the insured is asked for a check and if further time | 
 
 is desired he is requested to discharge the account by pay- ; 
 
 ment of a portion thereof in cash and the giving of a Trade : 
 
 Acceptance for the balance. The cash payment is to cover | 
 
 earned premiums up to the maturity of the acceptance, : 
 
 which is made for thirty, sixty, or ninety days, or such other ; 
 
 period of time as may be agreed upon. j 
 
 The Trade Acceptance has attached to it a statement of i 
 
 the premiums covered thereby, this statement giving each j 
 
 policy number, amount and premium for the purpose of ' 
 
 identification in case of cancellation, return premium, or \ 
 
 other subsequent transaction. ] 
 
 When the cash payment and Trade Acceptance is in hand 
 
 the insured is given a receipted bill for the premiums in- ] 
 
 volved, which closes the agent's ledger account, the accept- ' 
 
 ance being deposited in bank which makes collection in ; 
 
 the ordinary course of business. ! 
 
 If the Acceptance bears a longer maturity than sixty I 
 
 days from the inception of the insurance it usually bears , 
 
 interest at the legal rate. \ 
 
 One form of Trade Acceptance used by a prominent Balti- ; 
 
 more agency is as follows: i 
 
 No. 19.... $.... ; 
 
 after date pay to the order of Ourselves , 
 
 Dollars with interest | 
 
 The obligation of the acceptor hereof is for premiums ; 
 
 on insurance policies, per invoice dated 19 ; 
 
 Value received and charge the same to account of Acceptor, 'i 
 
 In consideration of the payment or assumption of pay- j 
 
 ment by the payee hereof, to the respective insurance com- ; 
 
 panics of the premiums for which this trade acceptance is I 
 
GENERAL OFFICE WORK 39 
 
 given, the acceptor hereby assigns to the payee any unearned 
 premium to which he may become entitled under said policy 
 or policies as hereinafter provided. In the event of the 
 insolvency or bankruptcy of the acceptor or the appoint- 
 ment of receivers for his, their or its property, prior to the 
 due date hereof, the amount hereof shall at once become 
 due and payable to the payee, and if not immediately paid 
 upon demand, or if not paid on its due date, the acceptor 
 agrees for himself, themselves, or itself, his personal repre- 
 sentatives, successors or assigns, to immediately surrender 
 all said policies to the payee to the end that the payee 
 may, for the account of the acceptor, surrender all said 
 policies to the Companies and receive the return premium 
 thereon and credit the same against the amount of this 
 acceptance. And said acceptor agrees that pending the 
 payment of this acceptance or the surrender of said policies 
 he, they or it, will not do or permit anything to be done 
 to said insurance policies contrary to this agreement. 
 
 Across the face of above form the following inscription is 
 printed in red ink: 
 
 *' ACCEPTED 
 
 Date 
 
 Payable at 
 
 Location of bank , 
 
 Signature ' ^ 
 
 It is an excellent plan to keep a separate bank account in 
 which to deposit all premiums collected, and from which to 
 
 pay all company balances. This results in a 
 Separate separation of what are really trust funds, and 
 
 Bank serves as a good check on collections. It goes 
 
 Account without saying that balances should be paid 
 
 to the company within the time agreed upon. 
 Indeed, some companies will not retain an agent who is con- 
 tinually delinquent in this regard, for they argue that a man 
 who is careless about money matters is not usually the type 
 to make a reliable agent. 
 
 There is probably no part of an agent's work that causes 
 him more annoyance, if not worry, than that of making col- 
 lections, and often it is the least systemi^ed. 
 Collection Local customs, the character of his clientele 
 of and other considerations affect the methods 
 
 Premiums which may be successfully employed, and no 
 one method will prove suitable in all cases. 
 By far the great majority of business houses make their 
 
40 THE AGENTS KEY TO FIRE INSURANCE 
 
 collections by mail, which may be taken as good evidence that 
 this method has been found more satisfactory on the average 
 than by personal calls, and there seems to be no good reason 
 for believing that this system cannot be made successful when 
 applied to insurance agency collections. 
 
 If mail collections are to be attempted, a system for keep- 
 ing track of unpaid accounts, and following them up, will 
 prove helpful if not, indeed, necessary, and the suggestions 
 offered here may serve as a basis for building one adapted 
 to the particular needs of a given agency. 
 
 It may be taken for granted that a bill for the premium is 
 sent at the same time that a policy is delivered. This bill 
 
 may be made in duplicate, and the copy filed in 
 Systems a loose leaf collection book, to be followed up 
 
 in any manner decided upon. 
 
 Another and more comprehensive system requires a file 
 having 31 compartments, one for each day of the month. 
 Each bill is made out in triplicate, each copy of a different 
 color. For instance, the original may be white, the duplicate 
 blue and the triplicate red. 
 
 The duplicate and triplicate are placed in the compartment 
 of the collection file corresponding to the date on which the 
 policy takes effect. AVhen bills are paid, the duplicates 
 and/or triplicates are removed and destroyed, having served 
 their purpose. 
 
 Assume that this system has been in operation for one 
 month, and that it has been decided to follow up collections 
 on the basis of monthly periods from the date of policy ; then, 
 on each working day of the month the duplicate bills (blue) 
 are taken out of the compartment of the collection file for the 
 corresponding day of the previous month, and mailed to the 
 customer, leaving the triplicate (red) in the file, A form 
 letter may be sent with the duplicate bill, and may read 
 somewhat as follows: 
 
 '* Following our usual custom we are mailing you the 
 
 enclosed statement for $... , having found that a 
 
 majority of our customers prefer to receive and pay their 
 bills by mail rather than through a personal visit. If, 
 however, we can be of any service to you by calling, or 
 any explanation of the statement is desired, please ad- 
 
GENERAL OFFICE WORK 41 i 
 
 vise US and we will be very glad to see you promptly on \ 
 the matter." | 
 
 On the corresponding day of the following month, or such ] 
 
 other period of time as may be deemed desirable, the tripli- j 
 
 cates (red) are removed from the collection file, ; 
 
 Past Due and given such treatment as may seem best, ; 
 
 File and may be then placed in another file, called : 
 
 the Past Due File, to be followed up as each j 
 
 separate case demands. Sometimes at the end of sixty days j 
 
 a letter reading somewhat as follows will prove effective : i 
 
 **In calling your attention again to the statement of i 
 
 premiums due our office, amounting to $ , we are ■ 
 
 led to explain that our Companies give us only a limited i 
 time in which to remit for insurance written. 
 
 We are obliged to account within a few days for the \ 
 premiums shown on said statement, and therefore ask 
 you to let us have check in order that we may make 
 proper remittance to the Companies. ' 
 
 We feel sure you will agree with us that since the | 
 Companies are expected to — and do — pay their losses 
 promptly, it is only fair that they should receive the 
 premiums promptly from their agents, and that you will i 
 cooperate with us to that end. ] 
 
 Thanking you in advance, we remain," ■ 
 
 If this letter does not bring the money, it is sometimes felt j 
 
 desirable to send a notice that the Company requires the \ 
 
 premium or the cancellation of the policy. In ■ 
 
 Payment or sending such a letter, if it is desired to be a ; 
 
 Cancellation cancellation in case the premium is not paid 
 
 within the time stated, care must be exercised ■ 
 
 to make the notice unequivocal in its terms, and it is believed j 
 
 that the following phraseology will serve that purpose: ; 
 
 i *'In accordance with customary rules, the Example ; 
 
 ^ Insurance Company requires me to remit the premium of \ 
 
 $ on policy No issued to j^ou and cov- j 
 
 ering on situate , or to cancel ] 
 
 said policy in accordance with its conditions. (See lines J 
 
 I to inclusive.) ■ 
 
 f The PREMIUM REMAINING UNPAID, I am re- \ 
 
 luctantly compelled as agent of said Company to notify ! 
 you of its election to cancel the policy at the expiration \ 
 
42 THE AGENTS KEY TO FIRE INSURANCE 
 
 of five days from receipt by you hereof. All liability 
 thereunder on the part of the Company will cease and de- 
 termine at the expiration of the said five days, unless 
 
 during such period the premium of $ is paid at 
 
 my office (give address). 
 
 Regretting the necessity of this action and hoping to 
 hear from you, I remain, 
 
 Yours very truly. 
 
 Agent." 
 
 In order to have proof of cancellation in case the premium 
 is not paid, it will be necessary to send the foregoing notice 
 by registered mail and obtain the registry return receipt, or 
 to give the notice in some other legal manner. (See Can- 
 cellations.) 
 
 It seems desirable to send a second letter after a period of 
 from seven to ten days, and if by any chance the first letter 
 is not registered this second one should be. This second 
 letter may read as follows: 
 
 **This is to notify you that policy No of the 
 
 Company, issued to you and covering on 
 
 at , has been cancelled for non- 
 payment of premium by the notice sent you under date 
 of (date), in accordance with the policy conditions con- 
 tained in lines to inclusive. 
 
 Please note that you are therefore without the pro- 
 tection of such policy, and return it to us for our files. 
 
 Wo also request that you pay us the sum of $ , 
 
 being the amount of the pro rata earned premium from 
 the beginning of the policy to its cancellation." 
 
 If the policy was made payable to a mortgagee, ten days' 
 notice should be sent by registered mail cancelling the mort- 
 gagee clause. (See Cancellations.) 
 
 If loss was made payable to a payee who was not a mort- 
 gagee, a five days' notice should be sent by registered mail. 
 (See Cancellations Page 144, Form Two.) 
 
 It may be of interest to know that agencies do not lose 
 on the average more than I/2 of 1% per annum on un- 
 collectible accounts. 
 
GENERAL OFFICE WORK 4S 
 
 OFFICE RECORDS. 
 
 There are a great variety of systems in use by agents for 
 the keeping of agency records and accounts. 
 
 The simplest system for a small agency is to use the register 
 of each company as the record of all policies and endorse- 
 ments issued for such company; as an expira- 
 Registers tion record, and even as customers' ledger and 
 
 cash book. It takes less bookkeeping than any 
 other method, and where the agent does not maintain an office 
 force it usually works very well, but it will only serve for a 
 small business, where the risks are mostly of small value, 
 with only one or two policies to a risk. 
 
 A system which can be used for a larger business utilizes 
 the individual register of each company to record all poli- 
 cies issued in such company, or one large register in which 
 to record the policies of all companies represented, or the 
 duplicate daily report system. This is supplemented by a 
 cash book and ledger and sometimes by a journal. The ex- 
 pirations are posted to an expiration register, keeping each 
 month of each year by itself, or to a card system by months 
 of each year, or to a system of individual cards for each risk, 
 filed by years, months and days of the month. 
 
 The tendency of the more modern office is to keep every- 
 thing by card system and loose leaf books. There are many 
 
 such systems in use and almost any of the large 
 Card office supply houses (names furnished on re- 
 
 System quest) will design one for the special needs of 
 
 any office, or may be able to furnish stock cards 
 for the purpose. 
 
 The system outlined here is taken from various sources and 
 is intended for use in an up-to-date office where the business 
 is of considerable volume. The system starts with the making 
 of a duplicate daily report for each policy issued, the original 
 daily report being sent to the company and the duplicate con- 
 stituting the original agency record. The duplicate daily 
 reports of each company are usually kept together in a file, 
 either in numerical order or by expiration. The following 
 chart illustrates the main elements of the system ; sample of 
 each card is printed herewith : 
 
44 
 
 THE AGENTS KEY TO FIRE INSURANCE 
 
 DUPLICATE DAILY REPORT 
 
 Journal and 
 Cash Book 
 
 Expiration Card. 
 
 Loca^tion. Car d 
 nsureds Card ^ ~ 
 to Customer I 
 
 Prems.ReceiVaible 
 
 Ledger and 
 Company Register 
 
 Monthly Account 
 
 General 
 
 Ledq( 
 
 The cards used for recording (a) expirations, (b) amount 
 at risk in each location, (c) insurance for customer at each 
 location and (d) bill to insured, have been designed so all 
 may be typewritten at one operation by use of carbon paper. 
 
 To insure immediate recognition and to aid in correct 
 filing they may be clipped or notched; expiration cards 
 notched in center of top, location cards clipped upper right 
 corner, insured's card clipped upper left corner. By this 
 means one cannot be misfiled with the others without instant 
 detection. 
 
 Each card shows a circle in the upper right hand corner; 
 also a space for numbering. As cards are filed they should 
 be numbered consecutively when there is more than one card 
 for a given location, or for one insured, and as each is 
 numbered an X should be put in the circle on the prior card. 
 Thus, an uncrossed circle on card indicates it is the last one 
 for that particular location or insured. 
 
 Expiration Card. (6x4) The purpose of this card is to 
 keep a record of all the business by expiration dates and to 
 make certain that no policy is permitted to expire without 
 being noticed. These cards are filed first as to years, then 
 as to months, then as to days of the month. 
 
 It is suggested that different colors of cards be used to 
 serve as a check on the correctness of the expiration date, 
 one for each of five years of expirations (few policies being 
 issued for more than a five-year term). Distinctive colors 
 should be chosen, distinguishable in any light, such as, 1922 
 blue, 1923 buff, 1924 orange, 1925 green, 1926 red; all short 
 terms expiring in year written, and long terms (over 5 years) 
 white. The colors may be repeated at 5-year intervals. 
 
 Since the value of the system depends on the use of the 
 proper color for the year of expiration, all expiration cards 
 
GENERAL OFFICE WORK 
 
 45 
 
 before being filed should be run over to see that the color 
 and expiration correspond. When filed by years there should 
 be only two colors together, that chosen for the particular 
 year, and white for the short and long terms, and any other 
 color will be misfiled. 
 
 
 
 
 
 
 
 Di 
 
 
 
 o 
 
 
 
 C3 
 
 D 
 U 
 
 .-J 
 W 
 
 z 
 
 < 
 
 
 
 >- 
 
 
 I 
 
 
 
 
 r 
 
 
 g 
 
 • >> 
 
 
 ^^5 
 
 
 >; 
 
 4> Q) 
 
 
 t^ 
 
 
 
 
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46 
 
 THE AGENTS KEY TO FIRE INSURANCE 
 
 Location Card. (6x4) This card is used to show the ' 
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GENERAL OFFICE WORK 
 
 47 
 
 Insured's Card. (6x4) This card is intended to be a 
 complete record of all the insurance for a given insured at 
 a given location, and a card is made for each insured at each 
 se])arate location where insurance is placed. 
 
 
 
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48 
 
 THE AGENTS KEY TO FIRE INSURANCE 
 
 Bill to Customer. (6x4) On direct business this bill may 
 be sent with the policy to the insured. When the business 
 is chargeable to a broker the bills may be kept untjl the end 
 of the month (filed alphabetically by brokers) and a state- 
 ment of all premiums due sent at that time. 
 
 
 
 
 
 
 
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GENERAL OFFICE WORK 
 
 49 
 
 Company Register and Premiums Receivable Ledger 
 (15x81/2 or 15x17). This book serves two purposes. On 
 the left hand page it gives a consecutive record of policies 
 issued for each company in the Agency with other infor- 
 
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50 
 
 THE AGENTS KEY TO FIRE INSURANCE 
 
 mation needed for the monthly account, as shown. The 
 left side of the sheet is so arranged that a carbon copy 
 may be made, such premium list to be sent to the company, 
 totals only being carried into the regular account blank 
 under this system. 
 
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GENERAL OFFICE WORK 51 
 
 The right side of the sheet shows commission to broker 
 (if any), net premium to agency, name of assured and 
 broker. 
 
 This register together with the right hand page which has 
 columns for payments and balances by months constitutes 
 a ledger and monthly trial balance that is quickly proved 
 even when there is a large volume of business. Return 
 premiums are entered in red on sheets similarly ruled but 
 with appropriate changes in the headings. This ledger is 
 controlled by a ** Premiums Receivable'' account in the 
 general ledger. 
 
 Monthly Account — Premium List. This, as explained pre- 
 viously, is an exact carbon duplicate of the left side of the 
 register over to the column for ''Commission to Broker." 
 A margin should be left on the right side of this duplicate 
 so that the Company office will have room for notation of 
 original premiums on the return premium lists. 
 
 Card Filing. The use of distinctive colors for the various 
 years of expiration will check the correctness of the card as 
 to the year, but not as to the month. This may be accom- 
 plished by either of two methods: 
 
 First, the cards may have a tab projecting above the top 
 line of the card, so placed as to denote the respective months 
 of the year. With this method, when all October cards, for 
 example, are filed the tabs will show a straight line along 
 the top of the October file, and any tab out of line will denote 
 a misfiled card. The objection to such a card is the likelihood 
 of the tab being broken off in handling. 
 
 Second, the card may have a notch cut into the top line of 
 card in place of a tab projecting above. With this method, 
 when all October cards, for example, are filed the notches will 
 show in the form of a groove along the top of the October 
 file, and any break in the groove will denote a misfiled card. 
 The notched cards may be handled without much chance of 
 injury. 
 
 The top line of the two forms of cards will appear as 
 illustrated : 
 
 /-"X 
 
 TaJD 
 
 Notch \ J I 
 
52 THE AGENTS KEY TO FIRE INSURANCE 
 
 Color Expiration System. A suggested system for over- 
 coming the labor of entering expirations on a register or on 
 cards is as follows: 
 
 Each company's daily reports to be used for original and 
 duplicate, and an agent's daily report as a triplicate. This 
 agent's triplicate daily report to be practically a blank, so 
 that it will record the essential information no matter in 
 what form the original daily report is arranged. Thus each 
 daily report will give the amount, rate, premium, name of 
 insured, commencement, term and expiration. A copy of the 
 form should be pasted thereon unless the form has been 
 written on the policy itself. 
 
 This triplicate to be in different colors, one for each of 
 five years of expirations. For example, for business written 
 in 1922 the following distinctive colors, discernible in any 
 light if properly chosen, may be used for each respective year 
 that policies expire: 1923 blue, 1924 buff, 1925 orange, 1926 
 green, 1927 red, and all short terms (expiring in 1922) or 
 long terms (over five years) white. When the expirations 
 for January, 1923, are desired, the whole January file will 
 be run over and the blue and white triplicates picked out; 
 so with all other months of that year. Beginning 1924 all 
 buff and all white daily reports will be picked out. When it 
 comes time to write five-year business expiring in 1927 the 
 blue daily reports will again be used, since all blues denoting 
 1923 will have been picked out for each month before the 
 1928 daily reports for that month are ready for filing; thus 
 blues will be 1923 and 1928, buffs 1924 and 1929, etc. Since 
 the accuracy of the record depends on the use of the proper 
 color for the year of expiration, all daily reports before be- 
 ing filed should be run over to make sure the color used is 
 the correct one. A system could be arranged to check the 
 triplicates against the duplicates, but it would entail con- 
 siderable work and seems unnecessary. The duplicates will 
 be filed by months and each company 's business separately in 
 numerical order without reference to year of expiration. 
 All endorsements and cancellations should be recorded on 
 both duplicate and triplicate daily reports. 
 
 Correspondence. There is little to say about letter writing 
 in the insurance business that does not apply equally in other 
 lines of work. It is proverbial that clear, simple, concise, 
 and courteous letters are an asset to any business. It is ob- 
 vious that information sought, by client or company, should 
 be promptly furnished. Sometimes this is not possible and 
 
GENERAL OFFICE WORK bo \ 
 
 many agents make a practice of acknowledging letters, where j 
 a full and complete answer can not be sent at once, by using j 
 a card or printed sheet reading somewhat as follows ; I 
 
 19.. i 
 
 Dear Sir(s) : ] 
 
 Your letter of is receiving careful ; 
 
 attention. Reply will be made within a short time. ] 
 
 j 
 
 Agent. i 
 
 Nothing is much more annoying than to have letters ig- ' 
 nored that call for a reply, and this simple acknowledgment 
 shows that a letter is not overlooked, at the same time giving 
 opportunity to obtain the desired information or to take 
 necessary action. \ 
 
 Instructions. Each company has its own system of under- j 
 
 writing and its own methods of operation. Its success de- j 
 
 pends in large measure upon the cooperation of its agents. ] 
 
 Unless they carefully and intelligently follow its policy in j 
 
 the selection of business and in the lines written on indi- ^ 
 
 vidual risks or in congested sections, the success of both ] 
 
 company and agent will be endangered. The agent who fol- , 
 
 lows the company's instructions carefully and promptly not | 
 
 only does his share in the maintenance of its system of aver- i 
 
 age, but also escapes any personal liability which he might j 
 
 be assuming by failure to observe same. j 
 
 Reporting Losses. The agent should notify the company j 
 
 as soon as possible after a loss has occurred. Some com- ' 
 
 panics request telegraphic notice if their share of the loss \ 
 
 exceeds $100 and the following form of telegram is recom- • 
 
 mended : ' 
 
 j 
 
 ** per cent, loss policy Seven Sixty-one \ 
 
 Richards. (Name of Company) (Name of Company) also j 
 
 interested. ' ' \ 
 
 The last three numbers of the policy or policies involved is i 
 
 suflftcient. The telegraphic notice is usually sent to the com- j 
 
 pany and is followed by a mail notice, using the standard j 
 
 blank furnished, one copy thereof also being sent to the ^ 
 
 Special Agent. It will be noted that this blank calls for cer- | 
 
 tain definite information and this should be given where pos- 1 
 
54 THE AGENTS KEY TO FIRE INSURANCE 
 
 sible to furnish it, particularly information as to property 
 damage and estimated loss thereon (expressed in percentage 
 of the insurance rather than of the value), the cause of fire, 
 and where it originated. Any other pertinent information of 
 possible value to the company or its adjuster or field man 
 should also be given. (See * 'Losses.") 
 
CHAPTER VI 
 
 WRITING POLICIES AND ENDORSEMENTS 
 
 Signing Forms and Policy — Titles — Amount, Rate 
 AND Premium — Term — Perpetual Policies — De- 
 scription OF Property — Location — Occupancy — 
 Rubber Stamps — Endorsements (with Samples). 
 
 Each policy should state the full name of insured, amount, 
 rate, premium, commencement, term and expiration, together 
 with a complete description of the property 
 The Policy covered and its location. Avoid all abbrevia- 
 tions, erasures or interlineations. The phrase, 
 **etc.,'* should not be used, but instead **and other similar 
 property.'' Neither should the term, **et al" be used. 
 
 The rule should always be followed of writing a policy in 
 such clear, explicit and unmistakable terms, that no question 
 will arise regarding the insured, the property covered or its 
 location, or any of the conditions set forth in the form. 
 
 Signing the Forms and Policy. Each separate form, or 
 rider, attached to a policy should bear the following or simi- 
 lar language: ** Attached to and forming part of policy No. 
 
 of the Ins. Co Agent." 
 
 and should be signed in ink by the agent, or his name written 
 or stamped thereon, together with the name or initials of 
 the one affixing same. 
 
 The policy itself should be signed in ink by the agent, or 
 by one who has been authorized to sign his name for him. 
 The object of signing in ink is because a pencil mark may 
 smear, blur or be erased. The object of appending the initials 
 of one signing agent's name is to provide identification of 
 the signature in case it is necessary to prove same. Rubber 
 stamp signatures or those written on a typewriter are espe- 
 cially unsatisfactory unless initialed, since any one can use 
 a stamp or typewriter and there is no possible way of proving 
 from the signature itself who affixed it. A signature in print 
 is open to the same objection unless initialed. 
 
 Title (Insured). It is customary in writing the title of a 
 policy in the name of an individual to use one of the given 
 
 55 
 
♦56 THE' AGENTS KEY TO FIRE INSURANCE 
 
 names of the insured, and if in the name of a married woman 
 to use her given name. 
 
 The following are examples of familiar titles : 
 John R. Doe. 
 
 John R. Doe and Richard Roe, as interest may appear. 
 Doe & Roe, as now or hereafter constituted. 
 The Roe Engineering Co., Inc. 
 
 Richard E. Roe & The Roe Engineering Co., Inc., as in- 
 terest may appear. 
 John R. Doe, Contractor, & Richard E. Roe, as interest 
 
 may appear. 
 John R. Doe, Referee (or Trustee) in bankruptcy for 
 
 Richard E. Roe. 
 John R. Doe, as Trustee for whom it may concern. 
 John R. Doe, for account of whom it may concern. 
 John R. Doe, as Trustee (or Guardian) for Richard E. 
 
 Roe (infant). 
 John R. Doe, Executor (or Administrator) of Richard E. 
 
 Roe, deceased. 
 John R. Doe, Kate S. Roe, and Kate S. Roe, as Trustee 
 
 (or Guardian) for Arthur T. Roe, infant, heirs of 
 
 James C. Roe, deceased. 
 Estate of James C. Roe, deceased. 
 Heirs of James C. Roe, deceased. 
 
 * 'As interest may appear." This phrase is often used where 
 owner and lienor, owner and contractor, owner and tenant, 
 or vendor and vendee desire protection under one policy. 
 By so doing two interests are covered without stating the pre- 
 cise interest of each. It relieves the insured from the war- 
 ranty as to sole and unconditional ownership. The phrase 
 is employed rather indiscriminately, but there is usually no 
 harm in its use and there are circumstances when it is ad- 
 visable if not necessary. Moreover, when used it gives each 
 interest the right to demand payment to it individually of a 
 loss sustained, in accordance with the terms and conditions 
 of the policy contract, to the property owned by such interest. 
 This right is very seldom exercised, for insurance companies 
 customarily pay a loss by draft made to the several interests 
 as designated in the policy, leaving the division of the money 
 to those entitled thereto. 
 
 "As Now or May be Hereafter Constituted." This phrase 
 is used in order to keep the insurance valid, or avoid possible 
 
WRITING POLICIES AND ENDORSEMENTS 57 
 
 dispute, in case of changes in name or personnel of the in- 
 sured which might involve a change of interest. For example, 
 if a copartnership takes in a new partner the interest is held 
 to be changed, but not if a partner retires, nor if, without 
 new partners, the firm name changes. In the latter case, how- 
 ever, it is usually felt desirable to change the title of the in- 
 surance. 
 
 Estates. In writing insurance for an estate it is never ad- 
 visable, if it can be avoided, to write it as in the last two 
 titles given in the foregoing list, for the reason that if loss 
 occurs the insurance company will not know to whom loss 
 should be payable except by evidence outside of the policy 
 contract, and sometimes it is difficult to get a satisfactory 
 release of the insurance company's obligation to pay the 
 amount of any loss to heirs, or others, who may have an in- 
 terest in the property covered. This is especially true when 
 the policy is written under the title of ^'Estate of James C. 
 Roe, Deceased," and it is found that the insured has left no 
 will. The question then arises, *'Who are the heirs, and who 
 is entitled to an interest in the estate?" and the company 
 is not likely to pay any loss until that question is answered. 
 When it becomes necessary to insure against loss to prop- 
 erty of the estate of a deceased person where there is no 
 will, it is best to insert a condition after this form : **Loss, if 
 any, to be adjusted with, payable to and recoverable by John 
 R. Doe, and by him only," substituting for "John R. Doe" 
 the name of some person representing all parties in interest, 
 or at least those thereof at whose instance the insurance is 
 procured. 
 
 "For Whom It May Concern." This phrase is chiefly in- 
 tended for use when '*John R. Doe" (the insured specifi- 
 cally named) desires to protect by insurance other and vari- 
 ous parties, who it may be are constantly changing. It is 
 held that the interests protected by these words must be such 
 interests as were contemplated by the one securing the policy; 
 they need not necessarily be particular individuals, but may 
 be a certain class of individuals. As illustrative : Insurance 
 taken out in the name of an owner of an elevator or cold 
 storage plant to cover grain or produce by whomsoever owned 
 while contained therein. 
 
 This phrase will protect those intended to be covered who 
 have property involved in a loss, regardless of whether they 
 
58 THE AGENTS KEY TO FIRE INSURANCE 
 
 had an interest at the time the insurance was taken, out, or 
 acquired it subsequently; it gives each such owner the same 
 right as do the words **held in trust/' (see Commission 
 Clauses), viz., subsequent to a fire to ratify the insurance, even 
 though previously ignorant of its existence, and take the 
 benefit thereof. 
 
 Policies written in the name of ''John R. Doe, for account 
 of whom it may concern, '^ should have a clause inserted, 
 reading, ''Loss, if any, to be adjusted with, payable to and 
 recoverable by John Doe and by him only,'' and should also 
 exclude property specifically insured (See Exclusion Clauses). 
 
 POLICY WRITING 
 
 Amount. The amount for which a policy is written, com- 
 monly called its "face," should agree with the amount stated 
 on the form, if but a single item is covered, or should equal 
 the sum of the amounts of all items, if there are two or more. 
 The exception to the latter is where the amount of the policy, 
 being only a portion of the total insurance, is intended to 
 cover pro rata of all the items. 
 
 Where a form is used that has two or more items, such as 
 
 "$ on building, $ on machinery therein," 
 
 but the whole amount of the policy is to cover on but one of 
 the items, the word "Nil" or "Nothing" should be entered 
 
 in the space after the sign "$ " Otherwise the 
 
 policy may be held to cover blanket over all the items. 
 
 Rate and Preniimn. Rates are customarily based upon 
 $100 of insurance for the term of one year; thus a rate of 
 60c means 60c per $100 per annum. The amount of policy 
 multiplied by the rate will result in the premium; thus $1,000 
 of insurance at the rate of 60c calls for a premium of $6.00. 
 
 Commencement, Term and Expiration. The commencement 
 of the policy is the date on which the insurance is to take 
 effect. The term is the length of time for which it is to cover. 
 Local underwriting rules customarily determine the terms, 
 i. e., the length of time, for which various classes of prop- 
 erty may be written and the rates therefor. Usually policies 
 are written for periods of one year or less, three years and 
 five years. 
 
WRITING POLICIES AND ENDORSEMENTS 59 
 
 Wide latitude is given in changing by endorsement the 
 printed or written conditions of the policy, but the term and 
 expiration sl^ould never be changed by endorsement; the 
 policy should be cancelled and rewritten, or, in rare cases 
 may be changed by erasure. 
 
 Perpetual Policies. Some companies issue perpetual poli- 
 cies which run without limit of time and are usually issued 
 only at the head office of the company and under special 
 circumstances. A deposit premium is paid and no further 
 premium is necessary unless conditions surrounding the prop- 
 erty call for a readjustment of the rate. Customarily these 
 policies may be cancelled by either the insured or the com- 
 pany. In the former case 90% of the deposit premium is re- 
 turned to the insured and in the latter case all of it is re- 
 turned. 
 
 Description. Descriptions of buildings in policy forms are 
 somewhat a matter of local custom and rating methods, but, 
 generally speaking, dwellings are described by height, roof 
 and construction, as for example, *Hhe two story, shingle 
 roof, frame dwelling. '^ Other classes of buildings are de- 
 scribed by construction only. When buildings do not show 
 on insurance maps it is customary to describe them in more 
 detail in the policy form. 
 
 When insuring contents, the form should specifically de- 
 scribe them, with necessary detail, followed by the words, 
 ** while contained in," followed in turn by a description of 
 building and its location. 
 
 Location. The location should be explicit so that there is 
 no mistaking the situation of the property described, as for 
 example, ** situate No. 24 State Street, Rochester, N. Y.," or 
 ''East side of State Street about 170 feet North from Main 
 
 Street" or *'Lot No , Block No " together 
 
 with the division or sub-division if necessary, or "Westerly 
 side of Long Street, being the house now occupied by James 
 Roach." There are various ways of describing property lo- 
 cated in the country, as for example, ''situate westerly side 
 of main road from Norfolk to Suffolk in Kent Township, 
 Middlesex County, N. J." In some parts of the country it 
 is customary to give the Section, Township and Range num- 
 bers. 
 
60 THE AGENTS KEY TO FIRE INSURANCE 
 
 Occupancy. Most rating organizations and companies re- 
 quire that the nature of the occupancy, or the general class 
 of occupancy, be stated in the form. It therefore may be 
 laid down as a rule that same should always be stated, as for 
 example, **as a dwelling," **as a store and dwelling," "for 
 mercantile purposes," or **as a shoe factory," etc. Some- 
 times local underwriting rules require the specific nature of 
 the occupancy to be stated. Then it will not be sufficient to 
 say, **for mercantile purposes," but instead must state, for 
 example, **as a hardware store." It is not advisable to use 
 the expression ** while occupied as," except in those cases 
 where the agent and/or company desires to specifically re- 
 strict the occupancy to that stated in the policy, then it is 
 best toisay **only_while occupied as." 
 
 Rubber Stamps. The courts have held that any provision 
 of a policy that is not legible shall not be binding on the 
 insured, therefore if a rubber stamp is used care must be 
 exercised that the imprint on the policy shall be clear and 
 easily decipherable. For this purpose red ink is preferable, 
 as being more distinct. 
 
 POLICY CHANGES 
 
 A policy sometimes requires changes in amount, rate, form 
 or conditions, in which case an endorsement thereon, written, 
 
 typewritten, or printed, is necessary. Such 
 Endorsements endorsement, if on a separate piece of paper, 
 
 should bear the name of the issuing agency, 
 policy number, name of insured, and the date and nature of 
 the changes expressed in clear and unambiguous language. 
 The endorsement should be signed (with date stated) by the 
 agent (see Signing the Forms) and securely pasted — not 
 pinned — upon the policy. A full and complete copy of the 
 endorsement, in the exact language thereof, should be filed 
 with the agent's records and a similar copy forwarded to the 
 company', with any explanation necessary or desirable. Each 
 endorsement should bear the following or a similar phrase : 
 
 ** Attached to and forming part of Policy No 
 
 of the .Insurance Company. 
 
 Agent." 
 
 There is no one general form or set phraseology used but 
 it is always well to give the date from which the endorsement 
 is to take effect, such as stating, "From date hereof," or 
 
WRITING POLICIES AND ENDORSEMENTS 61 
 
 "On and after (date)." A few illustrations of the more 
 frequently used forms of endorsements follow: 
 
 Assignment of Interest. Where property described in a 
 policy changes ownership, the policy may be assigned to the 
 new owners. Most policies have a place specifically provided 
 for this change, usually under the headings 
 
 ** Assignment of interest by insured" 
 
 and 
 
 ** Consent by Company to Assignment of Interest." 
 
 The * ^ assignment " should be signed by the insured who is 
 transferring ownership, and the ''consent" by the agent of 
 the company. When such assignment is made it should be 
 noted on the agent's records and the company advised in the 
 following or similar language: 
 
 ''Interest of (name of insured) in this policy as- 
 signed to (name of new owner) by consent," 
 
 It is rarely advisable to partially assign a policy, as for 
 example, where it covers on a dwelling and on household 
 furniture therein and the dwelling is sold. Either cancel and 
 re- write under two policies, one for each owner, or cancel the 
 amount covering on the property sold, and write a new policy 
 thereon in the name of the new owner. 
 
 Removal. The policy may be transferred to cover the same 
 property in another location (see exceptions noted). The fol- 
 lowing or similar language may be endorsed on policy : 
 
 ''Permission is hereby granted to remove the prop- 
 erty insured by this policy to the situate 
 
 and this policy is hereby made to cover 
 
 same property in new location, all liability in former lo- 
 cation to cease from this date." 
 
 There is usually no objection to making the policy cover in 
 both locations pro rata during removal, in which case the fol- 
 lowing is used in place of the last 10 words of the foregoing : 
 
 "This policy shall cover in both locations during re- 
 moval in the proportion that the value in each bears to 
 the value in both." 
 
 If the rate is not the same in both locations then the addi- 
 tional — or return — premium should be stated, being figured 
 usually on a pro rata basis. 
 
62 THE AGENTS KEY TO FIRE INSURANCE 
 
 Exceptions : 
 
 The agent usually has no authority to grant removal per- 
 mit where property is taken to another state, or to a town 
 or locality not in the vicinity where he is commissioned to 
 act as agent, but may be consented to by the company. 
 
 Policies covering on grain in elevators, merchandise in 
 storage, whiskey in bonded or free warehouses, and similar 
 properties, are not usually transferred, but instead are can- 
 celled at short rates. 
 
 The local underwriting rules will guide the agent in this 
 respect. 
 
 Changes in Cover or Items. Where a readjustment of the 
 insurance requires a change in the form attached to a policy, 
 or a change in its items, the endorsement should clearly ex- 
 press such change, for example as follows: 
 
 WHERE NO CHANGE IS REQUIRED IN PREMIUM, 
 
 AMOUNT OR ITEMS BUT MERELY A CHANGE 
 
 IN FORM. 
 
 ''From date hereof this policy shall cease to cover as 
 heretofore, and shall apply as follows:" 
 
 Below this attach the new form. 
 
 WHERE INSURANCE APPLYING ON ONE OR MORE 
 
 ITEMS OF A SCHEDULE IS TO BE INCREASED, 
 
 BUT THE AMOUNT OF POLICY UNCHANGED. 
 
 *'From date hereof the form attached to this policy is 
 
 hereb}^ amended as follows: $ shall hereafter 
 
 apply on item No , covering known as 
 
 , and the total amount of schedule 
 
 is increased to $ , the amount of this policy re- 
 maining unchanged and to cover pro rata of all items." 
 
 WHERE PREMIUM IS CHANGED. 
 
 ''In consideration of $ additional (or return) 
 
 premium, from date hereof this policy shall cease to cover 
 as heretofore and shall apply as follows:" 
 
 To complete this endorsement a new form may be attached 
 showing the full amount by items, or only the changes in the 
 items affected may be stated. 
 
WRITING POLICIES AND ENDORSEMENTS 63 
 
 WHERE PREMIUM AND AMOUNT ARE CHANGED. 
 
 "In consideration of $ additional (or return) 
 
 premium, the amount of this policy is hereby increased 
 (or reduced) $ , making the total amount there- 
 of $ and from date hereof same shall cease to 
 
 cover as heretofore, and shall apply as follows: 
 
 on item No. 1, covering, 
 on item No. 2, covering, 
 on item No. 3, covering. 
 
 Partial Cancellation. "When the amount of insurance is to 
 be reduced it is often preferable to cancel the policy outright 
 and to write a new one for the reduced amount. Sometimes, 
 however, there is good reason for a reduction in the amount 
 of the policy, more particularly when only one item is af- 
 fected, and in such cases the endorsement should be made to 
 elearlj'^ express the change, for example as follows: 
 
 **In consideration of $ return premium 
 
 of the amount of this policy (or the 
 
 item of this policy) is cancelled from date hereof, leav- 
 ing in force $ covering as before (or cover- 
 ing on said item) '\ 
 
 In all cases of partial cancellation the endorsement should 
 be signed by the insured in duplicate, one copy being attached 
 to the policy and one forwarded to the company. This is to 
 avoid any question in case of loss, for the endorsement might 
 in some way become detached from the policy, the insured 
 or agent not recall that reduction of amount had been made, 
 leaving it difficult if not impossible for the company to prove 
 the transaction. 
 
 Reinstatement of Loss. The term ** Reinstate the policy*' 
 means to reinstate the amount of loss that has been paid 
 thereunder and make the policy again cover for the original 
 amount. This is customarily done in the case of small losses, 
 and the following form of endorsement may be used: 
 
 ''In consideration of $ additional premium, 
 
 loss amounting to $ by fire of (date) is hereby 
 
 reinstated, and policy is continued for the full amount, 
 Viz., $ '' 
 
 Mortgage Claim Satisfied. When a mortgage has been paid 
 off, and policy is to be made payable to the insured, or to a 
 
64 THE AGENTS KEY TO FIRE INSURANCE 
 
 new mortgagee, the endorsement should read somewhat as fol- 
 lows: 
 
 ^* Interest of mortgagee having ceased, (or, 
 
 mortgage interest of having been satisfied) loss, 
 
 if any, under this policy shall hereafter be payable to 
 the insured,*' (or ** payable to mortgagee.") 
 
 Foreclosure and Notice of Sale. When mortgage is — or 
 about to be — foreclosed, the following or similar endorsement 
 should be made on the policies of insurance: 
 
 ^'Consent is hereby given for foreclosure proceedings 
 to be commenced on the within described property or 
 notice given of sale thereof by virtue of mortgage or 
 trust deed." 
 
 Certificates and Duplicate Policies. When the mortgagee, 
 as is customary, holds the policy, the insured will frequently 
 desire a Certificate of Insurance, or, in some cases, a dupli- 
 cate policy. Most companies furnish blank certificates, the 
 following being a sample : 
 
 No 
 
 Amount $ Rate . i Premium $ 
 
 This Certifies, That Policy numbered as above has been 
 issued, for a stipulated consideration of 
 
 Dollars Premium 
 
 Insuring 
 
 for the term of 
 
 from the day of 19 at noon 
 
 to the day of 19 at noon 
 
 against all direct loss or damage by fire, except as therein 
 provided, to an amount not exceeding 
 
 Dollars, 
 
 to the following described property while located and con- 
 tained as described, and not elsewhere, to-wit; 
 
 Loss, if any, payable to Mortgagee. 
 
 This Certificate is issued with the understanding that it is 
 only a Copy of the Policy named herein, and is subject to all 
 clauses, riders, amendments, endorsements and assignments 
 
WRITING POLICIES AND ENDORSEMENTS 65 
 
 that may be made on said Policy, and in case of cancellation 
 of Policy this Certificate will immediately become null and 
 void. 
 
 Agent. 
 
 Where a duplicate policy is issued a blank policy may be 
 taken out of the regular series and written up in identical 
 form with the original. It should have stamped or written 
 across its face the word DUPLICATE, together with the fol- 
 lowing or similar condition: 
 
 DUPLICATE. 
 
 **This Duplicate is issued with the understanding that 
 it is only a copy of the ORIGINAL, and subject to all 
 endorsements and assignments that may be made on said 
 original and in case of cancellation thereof this dupli- 
 cate will immediately become null and void." 
 
 When a duplicate policy is issued, a daily report should be 
 sent to the company, marked "Duplicate of Policy No. 
 
 ,'' and duly recorded as such in the agent's records 
 
 and in the company's monthly account. 
 
CHAPTER VII 
 
 LOSSES 
 
 What to Do— What to Avoid Doing — Advice to In- 
 sured — Adjustment by Agent — Proofs of Loss — 
 Receipts for Loss Paid — Payment of Losses — Ap- 
 praisal Agreement — Non-Waiver Agreement- 
 Subrogation Receipt. 
 
 When a loss occurs the agent is often in doubt what to do, 
 or avoid doing, in order to properly conserve the interests of 
 both parties, namely, the insured and the corn- 
 Agent's pany; yet, in large measure, he must be guided 
 Duty by his own good judgment based on the particu- 
 lar circumstances surrounding each claim 
 Certain things, however, are always expected of the agent: 
 
 **He should give proper notice to the company (or 
 companies) interested, and to its iield men, if any, (see 
 Reporting Losses) ; 
 
 **He should avoid making any endorsement or correc- 
 tion or change of any kind on a policy after a fire has oc- 
 curred, or accepting any premium or additional premium. 
 The reason for this is to avoid taking action that might 
 waive some violation of the conditions of the policy or 
 reinstate a policy that is void; 
 
 *|If binder has been given and fire occurs before the 
 policy is issued, it is usually better to report the facts to 
 the company and let it direct what further action shall 
 be taken.'' 
 
 Advice to the insured after a fire should usually be confined 
 to pointing out the conditions of the policy as set forth there- 
 in. It is the first duty of the insured, after 
 Giving notice of fire has been sent to the company, 
 
 Advice to handle the damaged property in a way to 
 
 prevent further loss, and this may be explained 
 to the insured and advice given as to the best means to em- 
 ploy. Within reasonable limits, expenditures undertaken foi 
 protecting the property from further damage become a propei 
 
 66 
 
LOSSES 67 
 
 charge against the loss and may be included in the claim; 
 such as, for example, covering a hole in the roof, handling 
 wet stock, greasing machinery, etc. : But expenditures neces- 
 sary in order that the insured may be in position to present a 
 claim are not properly chargeable to the loss; such as, mak- 
 ing the inventory, preparing statements, etc. 
 
 There are so many different conditions which may arise 
 that it seems impracticable to give any definite directions 
 how to protect property from further damage. Good sense 
 must largely govern. Buildings with holes in roof or walls 
 should be protected from the elements, and it is usually better 
 not to dry out a building by artificial heat, except of very 
 low degree. Machinery that is wet should be greased, using 
 what machinists call ** slush.'' Stock should be dried; usu- 
 ally, air drying is preferable and an excessive degree of heat 
 is almost always harmful. Often the advice of someone in 
 the same line of business will be valuable, and perhaps the 
 very best guide is for the insured to consider, '^What would 
 I do if I had no insurance. ' ' 
 
 The company or its field man is very likely to refer small 
 losses to the agent for adjustment, in which case it will be 
 
 expected that he will deal fairly with both in- 
 Adjustment sured and company, fixing the amount of loss 
 by Agent on the basis of indemnity only, but allowing the 
 
 insured all to which he is entitled. (See Cash 
 Value.) 
 
 It seems proper to say that while the companies naturally 
 desire to keep their losses down as much as they can legiti- 
 mately, the time has long since passed when reputable com- 
 panies wish to have their losses settled for as little as pos- 
 sible regardless of equity; and the company that permits its 
 representatives to browbeat and mulct the insured very soon 
 gains an unenviable reputation, both among agents and brok- 
 ers, and among other companies — to say nothing of that part 
 of the public with whom it comes in contact loss-wise. 
 
 In adjusting a loss all the policies covering on property in- 
 volved should be examined and tabulated, showing the amount 
 of each and the items (if more than one) under which claim 
 for loss is made: they should be carefully compared to see 
 whether they are concurrent, and read in detail to see whether 
 the property is covered for which claim is made. 
 
68 THE AGENTS KEY TO FIRE INSURANCE 
 
 Inquiry should be made and all evidence examined to de- 
 termine, if possible, the cause of fire; and, if this cannot be 
 definitely established, then the most likely cause should be 
 given, with suitable explanation. 
 
 The adjustment should determine sound value of both the 
 damaged and the undamaged property, as well as the loss, 
 and if there is a coinsurance clause attached (insurance being 
 insufficient to comply therewith) the apportionment should 
 show the portion of the loss borne by the insured in accord- 
 ance with such coinsurance clause. 
 
 If the agent is not certain that the company is liable, or 
 if there are any doubts in his mind about the honesty of the 
 origin of the fire, or the claim for loss, and he cannot resolve 
 such doubts, he will naturally refer same to the company, 
 with a full statement of facts, and ask instructions. 
 
 In the settlement of every loss the papers required by the 
 company are: Proof of Loss, Report of Loss (for statistical 
 
 purposes) and, in certain cases. Receipt for 
 Required Payment. When the sound value and the loss 
 
 Papers are agreed upon, the agent usually makes out 
 
 the Proof of Loss, has the insured sign and 
 swear to it, and forwards it to the company or field man, 
 draft in payment being forwarded to the agent in due 
 course for delivery to the insured. The policy provides 
 that payment shall be made within 60 days after proof 
 is received by the company, but small losses are usually paid 
 without delay. For the reason that loss need not be paid 
 until 60 days have elapsed, it was for many years the custom 
 to take off 1% discount if loss was paid at once, and this 
 custom still prevails in some sections, although it has quite 
 largely been abandoned, and companies generally are now 
 promptly paying all losses, large or small, without discount. 
 
 The short form Proof of Loss is used where the whole loss 
 is $100 or less; otherwise, the long form. Sometimes the 
 
 agent pays with his own check the small losses 
 Proofs which he adjusts, and charges the loss to the 
 
 of Loss company in his next account, or deducts the 
 
 amount from his next remittance. The Proof 
 of Loss need be signed only by the insured, but checks in pay- 
 ment of a loss should be made payable to all parties men- 
 tioned in the policy; that is, the insured, and all the mort- 
 gagees or trustees, if any, or the payee under a loss payable 
 clause ; when the pgent pays the loss a receipt, likewise signed, 
 
LOSSES 69 
 
 should always be secured and forwarded to the company for 
 its voucher. The policy unless cancelled by loss or when loss 
 is paid, should always be endorsed with the payment of the 
 loss, a convenient form being as follows: 
 
 **Fire...(4.a.te)...; Loss $ ; Paid.(datel; item 
 
 involved; Amount of policy or items reduced accord- 
 ingly." 
 
 Some companies require a receipt signed in duplicate by 
 the insured, one going to the company and one being attached 
 to the policy. Other companies forward a receipt with draft 
 in payment of loss and require it to be signed on delivery of 
 draft and attached to policy. 
 
 All the information called for on proofs of loss should be 
 given, including a detailed statement of the property dam- 
 aged or destroyed. 
 
 When loss is submitted to appraisal as provided in the 
 policy, it is the custom for an appraisal agreement to be exe- 
 cuted between the insured and the company or 
 Appraisal companies interested. This should be signed, 
 in duplicate, by the insured and all the com- 
 panies interested, one copy being for use by the appraiser 
 named by the insured and the other for use by the appraiser 
 named by the company or companies. 
 
 FORM OF APPRAISAL AGREEMENT 
 
 (For use under Old New York Standard Policy) 
 
 IT IS HEREBY stipulated and agreed by and between 
 
 John and Richard Roe 
 
 of the first part, and 
 
 Example Insurance Company of Hartford 
 
 Victor Insurance Company of New York 
 
 each acting for itself and not as agent for the other, and 
 
 each as party of the second part, that 
 
 Henry Jones , designated by the parties of the 
 
 first part, and 
 
 Thomas Smith , designated by the parties of 
 
 second part, shall ascertain, pursuant to the terms and con- 
 
70 THE AGENTS KEY TO FIRE INSURANCE 
 
 ditions of the policies of insurance issued by said companies 
 to the party of the first part, the sound actual cash value 
 of the property of said party of the first part, on the 4th 
 day of . . . .May. . . ., 1916, which is more particularly de- 
 scribed in the policies as 
 
 (Attach copy of form) 
 
 as well as the actual direct loss or damage caused thereto by 
 a fire which occurred on that day; that the said two ap- 
 praisers shall first select a competent and disinterested per- 
 son who shall act as umpire, and the said two appraisers 
 together shall then estimate and appraise the loss, stating 
 separately sound value and damage, and failing to agree 
 shall submit their differences to the said umpire; and the 
 award, in writing, of any two shall determine the amount 
 of such loss. Such loss or damage shall be ascertained or 
 estimated according to the actual cash value of said property 
 at the time of the occurrence of said fire, with proper de- 
 duction for depreciation however caused, and shall in no 
 event exceed what it would then cost the insured to repair or , 
 replace the same with material of like kind and quality, but 
 such appraisement does not in any respect waive any of 
 the provisions or conditions of said policies of insurance, or 
 any forfeiture thereof, or the proof of such loss and damage 
 
 required by the polic of insurance thereon. 
 
 New York, May 7, 1916. 
 
 . John & Richard Roe, 
 
 . .... by John Roe 
 
 .Example Insurance Company,, 
 by E. R. Loe, 
 
 Special Agent. . . . 
 
 , Victor Insurance Company, . . . 
 by H. P. Moe, 
 
 State Agent 
 
LOSSES 71 
 
 APPRAISAL AGREEMENT 
 
 (For use under New New York Standard Policy) 
 
 IT IS HEREBY stipulated and agreed by and between 
 
 John and Richard Roe 
 
 of the first part, and 
 
 Example Insurance Co. of Hartford 
 
 Victor Insurance Co. of New York 
 
 each acting for itself and not as agent for the other, and 
 
 each as party of the second part, that 
 
 Henry Jones , designated by the part .... 
 
 of the first part, and 
 
 Thomas Smith , designated by the part .... 
 
 of the second part, shall ascertain, pursuant to the terms and 
 conditions of the polic .... of insurance issued by said 
 
 comp to the party of the first part, the sound actual cash 
 
 value of the property of said party of the first part, on 
 the. . . .day of , 192. . ., which is more particu- 
 larly described in the policies as 
 
 (Attach copy of form) 
 
 as well as the actual direct loss and damage caused thereto 
 by a fire which occurred on that day and/or, if this agree- 
 ment contemplates personal property, in such case damage 
 if any caused by removal from premises endangered by 
 fire; that the said two appraisers shall first select a com- 
 petent and disinterested person who shall act as umpire, and 
 the said two appraisers together shall then estimate and 
 appraise the loss, stating separately sound value and damage 
 
72 THE AGENTS KEY TO FIRE INSURANCE 
 
 to each item, and failing to agree, shall submit their differ- 
 ences only, to the umpire. An award, in writing, so item- 
 ized, of any two when filed with the insurance companies 
 above designated shall determine the amount of sound value 
 and of loss or damage. Such loss or damage shall be ascer- 
 tained according to the actual cash value of said property at 
 the time of the occurrence of said fire, with proper deduc- 
 tions for depreciation however caused, and shall in no event 
 exceed what it would cost to repair or replace the same with 
 material of like kind and quality within a reasonable time 
 after such loss or damage, without allowances for any in- 
 creased cost of repair or reconstruction by reason of any 
 ordinance or law regulating construction or repair and with- 
 out compensation for loss resulting from interruption of 
 business or manufacture, but such appraisement does not 
 in any respect waive any of the provisions or conditions 
 of said policy or policies of insurance, or any forfeiture 
 thereof, or the proof of such loss and damage required by 
 the policy or policies of insurance thereon. 
 
 Each appraiser shall be paid by the party selecting him 
 and the expenses of appraisal and umpire shall be paid by 
 the parties equally. 
 
 The reverse side of the appraisal agreement blank provides 
 as follows: 
 
 APPOINTMENT OF A THIRD PERSON 
 
 We, the undersigned, do hereby appoint 
 
 as umpire, as provided for in the within Agreement. 
 192... 
 
 Appraisers. 
 DECLARATION 
 
 State of / 
 
 \ ss. 
 County of ' 
 
 We, the undersigned, do solemnly swear that we are not 
 interested, either directly or indirectly, as partners, creditors. 
 
LOSSES 73 
 
 or otherwise, or related to either of the parties of the fore- 
 going agreement; that we will act with strict impartiality in 
 making an appraisement agreeably to the foregoing appoint- 
 ment, according to the best of our knowledge, skill and 
 judgment. 
 
 WITNESS our hands this day of 
 
 A. D., 192.... 
 
 Appraisers. 
 Umpire. 
 
 Sworn to before me by said 
 
 and subscribed by in my presence, this. 
 
 day of ...A. D. 192.... 
 
 AWARD 
 
 We, the undersigned, pursuant to the within appointment, 
 do hereby certify that we have truly and conscientiously 
 performed the duties assigned us, agreeably to the foregoing 
 stipulations, and have appraised and determined the actual 
 
 cash value of said property on the day of 192. ., 
 
 and the actual direct loss and damage thereto by the fire 
 on that day, to be as follows, to wit: 
 
 Actual Net Cash Value 
 
 Actual Direct Loss and Damage 
 
 WITNESS our hands, this day of 192. . 
 
 Appraisers. 
 Umpire. 
 
74 THE AGENTS KEY TO FIRE INSURANCE 
 
 When there is question as to the liability of the company 
 under a policy, but it is desired to fix the amount of sound 
 
 value and loss, leaving the question of liability 
 Non-waiver for determination later, it is the custom for a 
 Agreement non-waiver agreement to be executed between 
 
 the insured and the company interested. This 
 is intended to have the effect of relieving the company from 
 any acknowledgment of liability, or waiver of violation of 
 any of the conditions of the policy. Generally speaking, any 
 act by a company or its representative looking toward the 
 actual adjustment of a claim for loss, taken after knowledge 
 of a violation of some policy condition, or a fraud, may be 
 construed as a waiver thereof unless a non-waiver agreement 
 has been executed. 
 
 FORM OF NON-WAIVER AGREEMENT 
 
 It is hereby mutually understood and agreed by and between 
 
 John and Richard Roe 
 
 of the first part and the Example Insurance Company. ... 
 
 of Hartford and other Companies signing this 
 
 agreement, parties of the second part, that any action taken 
 by said parties of the second part in investigating the cause 
 of fire or investigating and ascertaining the amount of loss 
 and damage to the property of the parties of the first part 
 
 caused by fire alleged to have occurred on May 4th 
 
 shall not waive or invalidate any of the conditions of the 
 policies of the parties of the second part, held by the parties 
 of the first part, and shall not waive or invalidate any rights 
 whatever of either of the parties to this agreement. 
 
 The intent of this agreement is to preserve the rights of 
 all parties hereto and provide for an investigation of the fire 
 and the determination of the amount of the loss or damage, 
 without regard to the liability of the parties of the second 
 part. 
 
 Signed in duplicate, this ..7th.. day of May 1916. 
 
 John & Richard Roe, 
 
 by John Roe 
 
 Example Insurance Co., 
 
 by E. R. Loe, 
 
 Special Agent. . . . 
 
 Victor Insurance Co., 
 
 by H. P. Moe, 
 
 State Agent 
 
LOSSES iO 
 
 NON-WAIVER AaREEMENT 
 
 (In use in New York City (1922)) 
 
 Whereas, an early ascertainment of the amount of both 
 Sound Value and Loss or Damage, if any, is desired by 
 both parties to this agreement: 
 
 It is hereby mutually understood and agreed by and 
 
 between par 
 
 of the first part and the of 
 
 and other Insurance Companies signing this 
 
 agreement, or assenting hereto, part of the second part, 
 
 that this agreement and/or any action taken by said part 
 
 of the second parf in investigating the cause of fire and/or 
 investigating and ascertaining by appraisement or otherwise 
 the sound value of and the amount of loss and damage to 
 the property, described in the policies of the said fire 
 
 Insurance Companies, situated 
 
 caused by fire alleged to have occurred on 
 
 shall not waive or invalidate any of the conditions of the 
 polic of the part of the second part, or any for- 
 feiture thereof, and shall not waive or invalidate any rights 
 whatsoever of either of the parties to this agreement. 
 
 The intent of this agreement is to preserve the rights of 
 all parties hereto and provide for an investigation of the 
 fire and the determination of the sound value and the amount 
 of the loss or damage, without regard to the liability of the 
 part of the second part. 
 
 Signed in duplicate, this day of 19. . . 
 
 Subrogation Receipt. When the insurance company is to 
 be subrogated to any rights or claims the insured may have 
 against a third party, the following form of receipt maj^ be 
 executed by the insured: 
 
76 THE AGENTS KEY TO FIRE INSURANCE 
 
 SUBROGATION RECEIPT. 
 
 $ Received of the Example Insurance Co., by the 
 
 hands of . . . .John R. Jones. . . .Agent. . . .Rochester, N. Y.. . 
 
 the sum of. . . .Two Thousand ($2,000) Dollars, 
 
 being in full of all claims and demands for loss and damage 
 
 by fire on the 4th day of May 1916, 
 
 to the property insured by Policy No 322,496. . .issued at 
 
 the . . . .Rochester, N. Y Agency of said Company. 
 
 And in consideration of such payment the undersigned 
 hereby assigns and transfers to the said Company each and 
 all claims and demands against any person, persons or prop- 
 erty, arising from or connected with such loss or damage, 
 (and the said Company is subrogated in the place of and 
 to the claims and demands of the undersigned against said 
 person, persons or property in the premises,) to the extent 
 of the amount above named. 
 
 Dated this 7th day of May 1916, at 
 
 Rochester, N. Y 
 
 (Signed) John & Richard Roe,. . . . 
 
 by John Roe. 
 
 ANOTHER FORM OF SUBROGATION RECEIPT 
 
 Received of the Victor Insurance Co. the sum of 
 
 Dollars, 
 
 being in full of all claims and demands for loss and damage 
 by fire, collision or other casualty, occurring on or about 
 
 the day of , 192. . . to the property 
 
 described and insured by Policy No issued at 
 
 Agency of said Company ; 
 
 and in consideration of such payment the undersigned hereby 
 assigns and transfers to said Company each and all claims 
 and demands against any person, persons or property arising 
 from or connected with such loss or damage, and the said 
 Company is hereby subrogated in the place of and to the 
 claims and demands of the undersigned against said person, 
 persons or property in the premises to the extent of the 
 amount of said payment, which right of subrogation shall 
 
LOSSES 77 
 
 be prior to any right of the undersigned; and the under- 
 signed hereby agrees that said Company may bring suit in 
 the name of the undersigned but to the sole benefit of said 
 Companj^, and may compromise any such claims and receive 
 any payment deemed expedient by it in full settlement of 
 all claims and demands of any persons, firm or corporation 
 against any person, persons or property without right of 
 intervention or objection by the undersigned; and the under- 
 signed further agrees to execute upon request of said Com- 
 pany any and all forms of release, discharge and agreement 
 of settlement deemed necessary or expedient by the said 
 Company, without interest or right on the part of under- 
 signed unless the amount to be received as consideration 
 for said releases shall exceed the amount of the above pay- 
 ment with all expenses and costs to which the Company 
 may be put in recovering the same, and in such case the 
 interest of the undersigned shall be only to the amount 
 of such excess; it being understood and agreed that the 
 undersigned is to be saved harmless from any expense in 
 connection with the prosecution of such claim or suit, except 
 in case a counter-claim is filed and recovery had on 
 said counter-claim, in which event the undersigned agrees 
 to pay said counter-claim without liability on the part of 
 said Company. 
 
 Dated and duly executed by the undersigned this 
 
 •lav of A. D. 19.... 
 
 APPORTIONMENTS (NONCURRENT INSURANCE) 
 
 Apportionment of insurance which is not concurrent is 
 one of the most vexing and troublesome questions with which 
 adjusters have to deal, and one reason therefor lies in the 
 fact that no rule or rules have been established either by 
 law or custom under which such apportionments may be 
 made without fear of challenge. The difficulties arising in 
 cases of nonconcurrence are so clearly recognized that a 
 number of the states permit on the file page of the standard 
 policy a memorandum reading as follows: ^*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." 
 
 Many so-called ''rules" have been originated, each in- 
 
78 THE AGENTS KEY TO FIRE INSURANCE 
 
 tended to solve some specific problem of nonconcurrence and 
 subsequently invoked as a precedent, so that there exist 
 today a number of such rules, all having real or fancied 
 merit, by which the adjuster may be guided as the case may 
 seem to warrant, unless he leaves all beaten paths and blazes 
 a new trail; these are set forth in following pages with 
 examples showing their application. 
 
 There are two legal maxims which the adjuster will bear 
 in mind in making an apportionment of nonconcurrent in- 
 surance — nan],ely, (a) any ambiguity in the terms of a con- 
 tract shall be construed against the party thereto responsible 
 for its phraseology, (b) Apportionments of nonconcurrent 
 insurance shall be made in the manner most favorable to 
 the policyholder. 
 
 Nonconcurrent insurance may be divided into two general 
 groups, namely, simple nonconcurrence and double or com- 
 pound nonconcurrence. 
 
 Simple Nonconcurrence 
 
 The term *' simple nonconcurrence" covers those cases 
 which come within the following classes: 
 
 Where loss occurs on a property covered by specific in- 
 surance and by blanket insurance which covers other property 
 as well, there being no loss on the property covered only 
 by the blanket insurance. The rule in such case is that the 
 face amount of such blanket insurance must contribute with 
 such specific insurance to pay the loss. This is known as the 
 ''Page vs. Sun" rule. 
 
 EXAMPLE 
 Value Lioss Insurance 
 
 A $100 (X) 1000 1 2000 (y) 
 
 X 
 
 $3000 
 Ins. • ^I^<>«« 
 
 $1000 (specific on A) $33.33 
 
 y 2000 (blanket on A and B) 66.67 j 
 
 3000 $100.00 ; 
 
 Where loss occurs on a property covered by a single item ; 
 
 of specific insurance and as well by blanket insurance which ; 
 
 covers in addition other property on which there is no : 
 
 specific insurance,, there being a loss also on the property ! 
 
 covered only by the blanket insurance. The rule in such | 
 
 case is that the loss on the property covered only by the \ 
 
LOSSES 
 
 79 
 
 blanket insurance is first apportioned to that insurance and 
 the remainder of such blanket insurance then contributes 
 with the specific insurance to pay the loss which both policies 
 cover. This is known as the Cromie rule. 
 
 (y) 
 
 (X) 
 
 Value 
 
 (Blanket on A and B) 
 (Specific on A) 
 
 EXAMPLE 
 
 $100 
 500 
 
 $600 
 
 Ins. 
 
 2000 
 
 L.08S 
 
 500 
 
 Inwurant'e 
 
 (x) 1000 
 
 Ins. 
 
 1500 
 1000 
 
 L.088 
 
 60. 
 40. 
 
 (y) 2000 
 
 2500 100. 
 
 $3000 
 
 Total 
 Ins. Loss 
 
 2000 560 
 1000 40 
 
 3000 600 
 
 Double Nonconcurrence 
 
 The tenn ** double" or *' compound nonconcurrence" is 
 intended to include those cases where each of two or more 
 items or classes of property is covered by specific insurance 
 and such property is also within the cover of blanket insur- 
 ance. There is no generally accepted rule for the apportion- 
 ment of such nonconcurrences. The following rules are in 
 use: 
 
 The Reading Rule. The blanket policy is divided among 
 the several items of property in the ratio of their respective 
 values. 
 
 EXAMPLE 
 
 Value 
 
 1000 
 1000 
 2000 
 
 4000 
 
 Ins. Loss 
 
 1000 66.07 
 
 Loss 
 
 100. 
 500. 
 
 600. 
 
 B 
 
 Ins. Loss 
 
 Insurance 
 
 4000 
 
 c 
 
 500 
 1500 
 
 33.33 
 100.00 
 
 1000 
 500 
 
 333.33 
 166.67 
 
 Ins. 
 
 1000 
 
 1500 500.00 
 
 1000 
 
 Less 
 
 nil 
 
 Total 
 Ins. Loss 
 
 1000 66.67 
 
 1000 
 2000 
 
 4000 
 
 336.33 
 200.00 
 
 600.00 
 
 Modified Reading Rule. (A) The blanket policy is divided 
 among the several items of insurance involved in loss in 
 the ratio of their respective values. 
 
80 
 
 THE AGENTS KEY TO FIRE INSURANCE 
 
 
 A 
 B 
 
 C 
 
 Ins. 
 
 1000 
 
 1000 
 
 Value 
 
 1000 
 1000 
 2000 
 
 4000 
 A 
 
 Loss 
 
 50. 
 
 50.* 
 
 EXAMP 
 Loss 
 
 100. 
 500. 
 
 600. 
 
 Ins. 
 
 1000 
 1000 
 
 LE 
 
 X 
 
 y 
 
 Insurance 
 
 1000 \ 2000 z 
 
 X 
 
 y 
 z 
 
 B 
 
 4000 
 
 Total 
 
 Loss Ins. L.088 
 
 1000 50. 
 
 250. 1000 250. 
 
 250. 2000 300. 
 
 2000 
 
 100. 
 
 2000 
 
 500. 
 
 4000 
 
 600. 
 
 Modified Reading Rule. (B) The blanket policy is divided 
 among all classes of property whether involved in loss or 
 not so that as nearly as possible the ratio of insurance to 
 value will be the same on each class as on all together. 
 
 Value 
 
 A 3000 
 B 3000 
 C 4000 
 
 10000 
 
 EXAMPLE 
 Lross Insurance 
 
 100 w 1000 
 
 500 X 1000 }■ 2000 
 
 400 y 1000 
 
 1000 
 
 Ins. Loss 
 1000 66.67 
 
 B 
 
 Ins. Loss 
 
 5000 
 
 c 
 
 500 
 1500 
 
 33.33 
 100.00 
 
 1000 
 500 
 
 333.33 
 166.67 
 
 1500 500.00 
 
 Ins. 
 
 1000 
 1000 
 
 2000 
 
 Loss 
 
 200 
 200 
 
 400 
 
 Total 
 Ins. Loss 
 
 1000 66.67 
 1000 333.33 
 1000 200.00 
 2000 400.00 
 
 5000 1000.00 
 
 The Albany Rule. Each item of specific insurance is given 
 contribution from the face amount of the blanket policy. 
 (This rule seems to be out of use, as it should be.) 
 
 EXAMPLE 
 
 
 A 
 B 
 
 c 
 
 Ins. 
 
 1000 
 
 2000 
 
 Value 
 
 1000 
 1000 
 2000 
 
 4000 
 
 A 
 
 Loss • 
 33.33 
 
 66.67 
 
 Loss 
 100. 
 
 500. 
 
 600. 
 
 Ins. 
 
 1000 
 2000 
 
 B 
 
 X 
 
 y 
 
 Insurance 
 
 1000 ) 
 
 1000 y 2000 z 
 
 X 
 
 y 
 
 z 
 
 
 4000 
 
 Loss 
 
 166.67 
 333.33 
 
 Total 
 Ins. Loss 
 1000 33.33 
 1000 166.67 
 2000 400.00 
 
 3000 
 
 100.00 
 
 8000 
 
 500.00 
 
 4000 
 
 600.00 
 
 The Finn, Qriswold or Kinne Rule. The blanket policy j 
 is divided among the classes of property in the ratio of the \ 
 respective losses. 
 
LOSSES 
 
 81 
 
 EXAMPLE 
 
 
 
 Value 
 
 
 Loss 
 
 Insurance 
 
 
 
 
 
 A 1000 
 B 1000 
 C 2000 
 
 
 100 
 500 
 400 
 
 1000 
 
 X 1{M)0 ) 
 y 1000 y z 
 w 1000 ) 
 
 2000 
 
 
 
 4000 
 
 
 5000 
 
 
 
 
 Ins. 
 
 A 
 
 I.088 
 
 Ins. 
 
 B 
 
 Loss 
 
 Ins. 
 
 c 
 
 Loss 
 
 Total 
 Ins. Loss 
 
 X 
 
 y 
 
 w 
 z 
 
 1000 
 200 
 
 83.33_ 
 16.67 
 
 1000 
 1000 
 
 250.00 
 250.00 
 
 1000 
 800 
 
 222.22 
 
 177.78 
 
 400.00 
 
 1000 
 1000 
 1000 
 2000 
 
 83.63 
 250.00 
 222.22 
 444.45 
 
 
 1200 
 
 100.00 
 
 2000 
 
 500.00 
 
 1800 
 
 5000 
 
 1000.00 
 
 G-radual Reduction Rule. The blanket policy contributes 
 first on its face amount with the insurance covering spe- 
 cifically on the item where the loss is greatest. Its re- 
 mainder then contributes with the insurance on the item 
 where the next greatest loss occurs, and so on until the 
 loss on all items is apportioned or the blanket insurance is 
 exhausted. 
 
 NOTE: Many of the men who have studied this question 
 object to this rule because the blanket insurance contributes 
 in the aggregate on an amount of insurance frequently much 
 in excess of the amount of insurance for which the com- 
 pany received premium, and because it assigns a wholly 
 disproportionate amount of loss to the blanket policy, which 
 is often most nearly correct in form of all the policies on 
 the risk. Furthermore, when certain forms of coinsurance 
 clauses are on the policies, it is the rule most likely to be 
 impossible of application. 
 
 
 
 
 
 EXAMPLE 
 
 
 
 
 
 
 
 Value 
 
 L.OSS 
 
 
 Insurance 
 
 
 
 
 A 
 B 
 
 
 100. 
 500. 
 
 600. 
 
 X 
 
 y 
 
 1000 I 
 
 1000 S 
 
 2000 z 
 
 
 
 4000 
 
 
 
 
 IllH. 
 
 B 
 
 L.OSS 
 
 Ins. 
 
 A 
 
 Loss 
 
 
 Total 
 Ins. L,08S 
 
 X 
 
 y 
 Z 
 
 1000 
 2000 
 
 
 166.67 
 333.33 
 
 1000.00 
 1666.67 
 
 
 37.50 
 62.50 
 
 
 1000 37.50 
 1000 166.67 
 2000 395.83 
 
 3000 500.00 2666.67 100.00 4000 600.00 
 
 The Rice Rule. This rule is based on a division of the 
 blanket insurance. The various steps followed are: . The 
 face amount of the' blanket insurance is assigned to each 
 specific item of insurance, and a total theoretical amount of 
 
82 THE AGENTS KEY TO FIRE INSURANCE 
 
 insurance for each specific item is thus reached. The loss 
 on each item is subtracted from the theoretical insurance on 
 each item, and a theoretical overinsurance on each item thus 
 obtained. The actual overinsurance in the aggregate is then 
 divided in the proportions of the theoretical overinsurance, 
 and the results obtained are added to the respective losses. 
 The total insurance on each item is thus found, and the 
 blanket insurance is divided so as to reach those totals. The 
 loss is then apportioned. 
 
 EXAMPLE 
 
 
 
 Value 
 
 Loss 
 
 
 Insurance 
 
 
 A 
 
 7931.54 
 
 4600.00 
 
 X 
 
 S } 2000 z 
 
 
 B 
 
 5552.00 
 
 4164.00 
 
 y 
 
 
 13483.54 
 
 8764.00 
 
 
 11000 
 
 
 A 
 
 B 
 
 Total 
 
 
 Less Actual 
 
 
 Ins. 
 
 
 Insurance 
 
 
 Total Loss Overinsurance 
 
 X 
 
 0000 
 
 
 11000 
 
 
 8764 2236 
 
 y 
 
 
 3000 
 
 
 
 
 z 
 
 2000 
 
 2000 
 
 Theoretical Overinsurance 
 
 
 
 
 
 
 A 3400 
 
 
 8000 
 
 5000 
 
 
 
 B 836 
 
 Loss 
 
 4000 
 
 4164 
 
 
 
 
 
 
 
 
 
 Total 4286 
 
 Over Ins. 
 
 3400 
 
 836 
 
 
 
 
 Division of Overinsurance 
 
 A 3400/4236 X 2236 = 1794.71 
 B 836/4236 X 2236 = 441.29 
 
 A 4600 plus 1794.71 
 B 4164 plus 441.29 
 
 =« 6394.71 
 = 4605.29 
 
 2236.00 
 
 Total contributi 
 « « 
 
 ament 
 B 
 
 Loss 
 
 2712.53 
 1451.47 
 
 ng lusurnnce. 
 
 A 
 
 Ins. Loss 
 
 X 6000.00 4316.07 
 
 z 394.71 283.93 
 
 11000.00 
 Apportioi 
 
 Ins. 
 
 3000.00 
 1605.29 
 
 Total 
 Ins. Pays 
 
 6000 4316.07 
 3000 2712.53 
 2000 1735.40 
 
 6394.71 4600.00 4605.29 4164.00 11000 87&4.00 
 
 Simplified Finn or Rice Rule. The blanket policy is so 
 divided among all policies included in the loss that when 
 possible, and as nearly as possible, the ratio of available in- 
 surance to loss will be the same on each class as on all 
 together. 
 
 
 
 EXAMPLE 
 
 
 Value 
 
 Loss 
 
 Insurance 
 
 A 
 
 :UMM) 
 
 200 
 
 w 10(M) } 
 
 X 1500 • ir,oo z 
 
 y 2000 S 
 
 15 
 
 :>(K)o 
 
 :\m 
 
 C 
 
 40(K) 
 
 500 
 
 10000 1000 6000 
 
LOSSES 83 
 
 A B C Total 
 
 InK. L.OKK liiM. L.OSS Ills. L.USM liis. I^ukk 
 
 w 1000 100.67 IfMM) 106.67 
 
 X 1500 250 1500 250.00 
 
 V 2000 333.33 2000 333.33 
 
 200 33.83 SOO 50 1000 166.67 1500 250.00 
 
 1200 200.00 1800 300 3000 500.00 6000 1000.00 
 
 Limit of Liability Rule. In New York City the Commit- 
 tee on Losses and Adjustments uses what is known as the 
 Limit of Liability rule. The statement of this rule follows: 
 
 **The sound value of and loss on property insured by 
 each class or kind of insurance having been determined, first 
 find the limit of liability under each class or kind of 
 insurance whether a single policy, or group covering con- 
 currently. If there is any average or coinsurance clause 
 operation this will determine the limit where it applies, if 
 not, such limits will be determined either by the amount of 
 the loss or the amount of the insurance, whichever is the 
 smaller. 
 
 ''Next, add the limits thus determined. If the sum is in 
 excess of the whole adjusted loss, use this as a basis for 
 a pro rata apportionment. If the sum of the limits of lia- 
 bility is less than the whole loss it is evident that payment 
 by each company must be on the basis of its maximum 
 individual limit of liability, on the principle that the greatest 
 possible collectible loss is due the assured. 
 
 ''If it should happen that the insurance (blanket and 
 specific) on any certain group of items is charged with a 
 payment in excess of the actual loss on the group, it is 
 obvious that this excess over the actual loss must be reap- 
 portioned to the other insurance. Deduct the excess pro rata 
 from one group, and add it pro rata to the other insurance. 
 If this should result in charging any group of insurance 
 with more than its limit of liability, the excess above the 
 limit would have to be apportioned a third time to any 
 groups having unexhausted limits of liability." 
 
 EXAMPLE 
 
 Building 
 
 Stock 
 
 Macliinery 
 
 Value 
 
 34,860.00 
 8,504.95 
 19,287.72 
 
 L,088 
 
 14,624.00 
 8,504.95 
 8,050.00 
 
 Ingurance 
 
 17,000 A ) 
 3,000 B [ 
 9,000 C ) 
 
 16000 / 
 
 E 
 
 28000 
 
 62.652.67 31,178.95 73,000 
 
 90% Coinsurance Clause on A, D and E. 
 80% Coinsurance Clause on B and C. 
 
84 THE AGENTS KEY TO FIRE INSURANCE 
 
 Limit of 
 l^iability 
 
 A 90%- of 34860 = 31374. 17000/31374 X 14624 = 7924.01 
 
 B Insurance is limit. Loss total to insurance 3000.00 
 
 C 80% of 19287.72 = 15430.17. 9000/15430.17 X 8050 = 4695.35 
 D 90% of 62652.67 = 56287.41. 16000/56287.41 X 31178 = 8847.06 
 B Loss is limit 28000 16554.95 
 
 41,021.67 
 
 
 Limit of 
 
 
 IJability 
 
 A 
 
 7924.01 
 
 B 
 
 3000.00 
 
 O 
 
 4695.35 
 
 I) 
 
 8847.06 
 
 E 
 
 16554.95 
 
 Loss 
 
 6022.78 
 2280.19 
 3568.78 
 6724.35 
 12582.85 
 
 41021.37 31178.95 
 
 It will be noted that B, C and E constitute all of the 
 insurance covering contents and that the aggregate loss 
 charged to those policies is $18,431,82, as follows : 
 
 B 2280.19 
 C 3568.78 
 E 12582.85 
 
 18431.82 
 
 The whole amount of the stock and machinery loss as 
 shown at the beginning of this statement is $16,554.95, so 
 that the policies covering stock and machinery are over- 
 paying the loss on that property by $1,876.87, as follows : 
 
 18,431.82 
 16,554.95 
 
 1,876.87 
 Following the rule this amount of $1,876.87 is deducted 
 pro rata from B, C and E and added pro rata to A and D, 
 as follows: 
 
 A 
 B 
 C 
 D 
 B 
 
 Loss 
 
 6022.78 
 2280.19 
 3568.78 
 6724.35 
 12582.85 
 
 Deduct 
 
 232.19 
 363.28 
 
 1281.40 
 
 Add 
 
 886.74 
 
 990.13 
 
 Reapportionment 
 
 6909.52 
 2048.00 
 6205.50 
 7714.48 
 11301.45 
 
 
 31178.95 
 
 1876.87 
 
 1876.87 
 
 31178.95 
 
 The Giesse Eule. First find the limit of liability of each 
 class of insurance, under the average or coinsurance clause, 
 and find the total of those limits (which will usually be 
 somewhat greater than the aggregate loss) by adding them 
 together; then find what each class would pay if it got the 
 full benefit of its contribution clause, i. e., contribution from 
 the face or full amount of all other insurance covering the 
 
LOSSES 
 
 85 
 
 whole or any part of the property which itself covers, and 
 find the total of these amounts (which of course will be less 
 than the aggregate loss) by adding them together. We thus 
 find the most each class can be made to pay, and also the 
 least it can possibly get off for. Add the several differences 
 between these pairs of limits, find what proportion of that 
 total the aggregate excess of the upper limits over aggregate 
 loss constitutes, and deduct that proportion of each of the 
 differences from the respective upper limits, to find what 
 each class of insurance shall pay to make up the loss. 
 
 Value 
 
 A 8065.72 
 B 3813.76 
 C 1905.90 
 
 EXAMPLE 
 
 L.08S Insurance 
 
 3383.41 w 2250 ) 
 3604.01 $ 5250 x 
 
 500.00 z 1750 
 
 2750 y 
 
 13785.38 
 
 7487.42 
 
 12000 
 
 2250 
 
 80% of 8065.72 
 5250 
 
 80% of 11879.48 
 2750 
 
 80% of" 5719.66 
 1750 
 
 80% of 1905.90 
 
 80% Clause 
 All Policies 
 
 X 3383.41 
 
 X 6987.42 
 
 X 4104.01 = 
 
 Average 
 Clause 
 Limit 
 
 1179.79 
 
 6860.01 
 
 2466.50 
 
 2250 
 
 Contribution 
 Clause 
 Maximum 
 
 X 3383.41 = 1015.03 
 
 X 6987.42 = 3578.92 
 
 X 4104.01 = 1157.54 
 
 X 500 = (573.87) 500.00 
 
 4500 
 
 X 500. = 194.44 
 
 Shortage 
 Excess 
 
 8006.30 5945.93 
 
 Aggregate loss 7487.42 Aggregate loss 7487.42 
 
 1541.49 
 
 1541.49 
 
 518.88 
 
 Excess 518.88 Shortage 
 
 Sum of 
 differences 2060.37 
 
 Average Clause 
 Limit 
 
 1179.79 
 
 3860.01 
 
 2466.50 
 
 500.00 
 
 $518.88 excess of the aggregate of the upper 
 limits over aggregate loss is 25.1837% of 
 that sum ($2060.37). 
 Contribution Clause Difference 
 
 Minimum Between Limits 
 
 1015.03 164.76 
 
 3578.92 281.09 
 
 1157.54 1308.96 
 
 194.44 305.56 
 
 8006.30 
 
 Difference 
 
 Between Limits 
 
 164.76 
 
 281.09 
 
 1308.96 
 
 ■ 305.56 
 
 5945.93 
 
 25.1887 
 25.1837 
 25.1837 
 25.1837 
 
 2060.37 
 
 Application 
 
 of Excess 
 
 41.49 
 
 70.79 
 
 329.65 
 
 76.95 
 
 2060.37 
 
 518.88 
 
86 
 
 THE AGENTS KEY TO FIRE INSURANCE 
 
 
 
 , 
 
 Amount of I.okk 
 
 
 
 
 Applying to 
 
 
 
 Averajfe ClaiiMti Hxress to l»e 
 
 Ka«li ClasH 
 
 
 
 Limits Deducted 
 
 of InHurance 
 
 w 
 
 
 1179.79 41.49 
 
 1138.30 
 
 X 
 
 
 3860.01 70.79 
 
 3789.22 
 
 y 
 
 
 2466.50 329.65 
 
 2136.85 
 
 Z 
 
 
 500.00 76.95 
 
 423.05 
 
 Total 
 
 8006.30 518.88 
 
 7487.42 
 
 
 
 Apportionment 
 
 
 
 w 
 
 Ins. 2250 
 
 Average Clause Limit 1179.79 
 Less excess as above 41.49 
 
 
 
 
 Loss 
 
 1138.30 
 
 
 X 
 
 Ins. 5250 
 
 Average Clause Limit 3860.01 
 Less excess as above 70.79 
 
 
 
 
 • Loss 
 
 3789.22 
 
 
 y 
 
 Ins. 2750 
 
 Average Clause Limit 2466.50 
 Less excess as above 329.65 
 
 
 
 
 Loss 
 
 2136.85 
 
 
 z 
 
 Ins. 1750 
 
 Average Clause Limit 500.00 
 Less excess as above 76.95 
 
 
 
 
 Loss 
 
 423.05 
 
 Total 7487.42 
 
 The Morristown Rule. This rule starts each policy at its 
 lower limit as found by the Giesse rule, and then distributes 
 to each, pro rata, the loss remaining unpaid, if necessary, 
 until each reaches its coinsurance clause limit. 
 
 EXAMPLE 
 
 Value Loss 
 
 A 8065.72 '3383.41 
 B 3813.76 3604.01 
 C 1905.90 500.00 
 
 Insurance 
 
 w 2250 > 
 
 S X 5250; 
 z 1750 y y 2750 
 
 13785.38 7487.42 12000 
 All policies subject to 80% Average Clause. 
 ribution Clause Minimum Average Clause Limit 
 
 2250 2250 
 X 3383.41 = 1015.03 X 3383.41 = 1179.7 
 
 7500 
 5250 
 
 10250 
 2750 
 
 9750 
 1750 
 
 4500 
 
 57.42 = 3578.92 
 
 X 4104.01 = 1157.54 
 
 X 500.00 = 194.44 
 
 80% of 8065.72 
 5250 
 
 80% of 11879.48 
 2750 
 
 80% of 5719.66 
 1750 
 
 80% of 1905.90 
 
 X 6987.42 = 3860.01 
 
 X 4104.01 = 2466.50 
 
 500.00 = 500.00 
 
 Aggregate Loss 
 
 5945.93 
 7487.42 
 
 8006.30 
 
 1541.49 
 
LOSSES 
 
 
 
 Sum of Contribution 
 
 Contribution Ciau»!>e 
 
 
 Clause Minimum 
 
 Minimum 
 
 Deficit 
 
 and Excess 
 
 w 1015.03 
 
 263.15 
 
 1278.18 
 
 X 3578.92 
 
 927.84 
 
 4506.76 
 
 y 1157.54 
 
 300.09 
 
 1457.63 
 
 z 194.44 
 
 50.41 
 1541.49 
 
 244.85 
 
 5945.93 
 
 7487.42 
 
 Sum of Contribution 
 
 
 
 Clause Minimum Coi 
 
 nsurance Clause 
 
 Excess Over 
 
 and Deficit 
 
 Limits 
 
 Coinsurance L-imits 
 
 w 1278.18 
 
 1179.79 
 
 98.39 
 
 X 4506.76 
 
 3860.01 
 
 646.75 
 
 y 1457.63 
 
 2466.50 
 
 
 z 244.85 
 
 500.00 
 
 
 7487.42 • 8006.30 745.14 
 
 It will be noted that the amount apportioned to '*w'' 
 and *'x'' exceed the coinsurance limits, and a reapportion- 
 ment of the excess is necessary, as follows : 
 
 Apportionment 
 
 of Excess 
 y 1457.63 
 
 z 244.85 
 
 1702.48 
 
 637.97 
 107.17 
 
 745.14 
 
 Insures 
 
 2250 
 5250 
 2750 ) 
 
 1750 
 
 Final Apportionment 
 
 rius Excess 
 above 
 
 Plus Excess 
 above 
 
 1457.63 
 637.97 
 
 244.85 
 107.17 
 
 Total 
 
 Total 
 
 2095.60 
 352.02 
 
 2447.62 
 
 Pays 
 
 1179.79 Coins. Limit 
 3860.01 Coins. Limit 
 
 2095.60 
 
 352.02 
 
 7487.42 
 
 It will be seen from the foregoing that the most noticeable 
 development in rules for apportionment of noncurrent insur- 
 ance has been the increasing use of the coinsurance or 
 average clause limit as an important factor in solving the 
 problem. Before such clauses came into general use there 
 were but two limits on a company's liability, namely (a) 
 the amount of the insurance and (b) the amount of the loss; 
 but the limit reached by the operation of the coinsurance 
 or average clause is of equal force — hence the development 
 is a natural one in connection with nonconcurrences involv- 
 ing policies containing such a clause. 
 
CHAPTER VIII 
 THE POLICY CONTRACT 
 
 (Old and New New York Standard) 
 
 Indemnity — Insurable Interests — Universal Con- 
 tract — Loss BY Fire — Cash Value — Repair or 
 Replace — Salvage — Concealment or Misrepresen- 
 tation — Interest Not Truly Stated — Policy Void 
 — Cease Operations — Hazard Increased — Interest 
 Not Sole and Unconditional — Vacancy and Unoc- 
 CUPANCY — Application a Warranty — Duty of 
 Insured — In Case of Fire — In Case of Loss — Proof 
 OF Loss — Plans and Specifications — Magistrate's 
 Certificate — Exhibit Remainder — Produce Books 
 and Vouchers — Appraisal — Contribution — Subro- 
 gation. 
 
 The policy of fire insurance is one of the most important 
 and universal contracts in the world, and in the fire insur- 
 ance business it is of the most vital importance, since it 
 constitutes the visible and tangible evidence of the goods 
 sold; the bridge between company and its insured; the 
 charter of their respective rights and privileges and the 
 rock of safety or of wreck in their mutual relations. Even 
 the simplest and clearest language may be interpreted in 
 more than one way, hence it is not strange that opinions 
 differ regarding portions of the standard policy. 
 
 There are a few fundamental facts that it is well to bear 
 in mind in considering this subject. 
 
 A policy of fire insurance is a personal contract of in- 
 demnity. It does not insure property. It insures the owner 
 
 of property against loss thereof by fire. It 
 Personal does not agree to pay a stated sum in case of 
 
 Contract fire, but to reimburse the insured, in whole or 
 
 in part, for a loss occasioned by fire damaging 
 or destroying the particular property specified in the policy. 
 The amount for which a policy is written is the limit, not 
 the measure of loss payable thereunder. The policy by its 
 terms provides in case of fire for the payment of the ''actual 
 
 88 
 
THE POLICY CONTRACT ^ 89 
 
 cash value of the property damaged or destroyed with proper 
 deductioD for depreciation however caused." It does not 
 contemplate that the insured shall profit by the occurrence of 
 a fire. Consequential damage is not covered, such as loss 
 of trade, inability to use the building, etc., unless liability 
 for such damage has been specifically assumed, which is usu- 
 ally done if at all under a separate contract. 
 
 The policy being a contract for indemnity 
 Indemnity only, if fire occurs and the insured loses noth- 
 Only ing, then he has no claim. It follows, there- 
 
 fore, that there must be an insurable interest 
 in order to sustain a valid claim. 
 
 Insurable Interest. Generally speaking, if in given prop- 
 erty one has a tangible interest of recognizable value, which 
 fire can destroy or impair, then he has an insurable interest 
 which may be separately covered under a properly drawn 
 form of policy. 
 
 It does not necessarily involve ownership of the property 
 itself, but may be any direct financial interest in property 
 whereby destruction of the latter will cause a loss either of 
 profit, possession and use, security or other benefits which de- 
 pend on its continued existence. 
 
 The interests in realty most frequently covered by fire in- 
 surance are those of the owner and mortgagee, and, in such 
 case, the policy is usually written in the name 
 Realty of the owner, with loss, if any, payable to the 
 
 mortgagee. There are, however, many interests 
 which may be the subject of specific insurance by the owners 
 thereof and among them may be mentioned the following : 
 
 The building. A reversionary interest. 
 
 The rents. Use and Occupancy. 
 
 The rental value. Improvements. 
 
 Advanced rents. Mortgagee interest 
 
 Ground rents. Guarantor's interest. 
 
 Leasehold interest. Lienor's interest. 
 
 A fractional interest. Contractor's interest. 
 
 A life interest. Vendor under contract.* 
 
 An undivided interest. Vendee under contract.* 
 
 Liability for repairs or restoration. 
 
 Various contingent liabilities, for example, failure of 
 
 owner to maintain insurance to protect the mortgagee. 
 
 *The vendor in possession is considered the owner of prop- 
 erty, but if the vendee comes into possession , then he is con- 
 sidered the owner. 
 
DO THE AGENTS KEY TO FIRE INSURANCE 
 
 These may be insiu'ed against loss by fire or lightning, or 
 by tornado; and there are other special insurable interests 
 which may be covered in certain cases. 
 
 The interests in personal property commonly covered by fire 
 insurance are those of the owners, part owners, or joint own- 
 ers, the policies being written in their names. 
 Personalty There are a variety of subjects of insurance 
 which may be separately covered. Among these 
 may be mentioned : 
 
 The property itself, such as machinery, stock, fixtures, fur- 
 nishings, materials, tools and supplies, patterns, drawings, 
 dies, household furniture, collections, personal effects, etc. 
 
 Property held in trust or on commission or consignment or 
 on joint account or sold but not removed, and in general any 
 liability for property belonging in whole or in part to others. 
 
 Labor performed and materials expended on property of 
 others. 
 
 Profits or commissions on property sold, or held for sale, 
 or which would have been available for sale but for the fire. 
 
 Interest and/or liability of pawnbrokers, warehousemen, 
 wharfingers, common carriers, judgment creditors, lienors, 
 lessors or patentees. 
 
 Property in the hands of courts, sheriffs, receivers, trustees 
 and others similar. 
 
 Chattel mortgage interest is usually uninsurable as such, 
 though loss, if any, under a policy is often made payable to a 
 chattel mortgagee. Many companies make a distinction be- 
 tween purchase money mortgages and other kinds, the former 
 being regarded more favorably. 
 
 The interest of a bank or loaner of money on personal 
 property is not usually insured separately, but loss, if any, 
 under the policy is often made payable to a bank or lender 
 as giving additional security. 
 
 It seems proper to call attention to the fact that the fire 
 insurance policy is a contract for use in covering any of the 
 different classes of property and interests that 
 Universal are in existence and insurable, and that the 
 Contract necessity or desirability of having but one 
 
 standard form of policy for all classes requires 
 the inclusion of clauses which are not always applicable to 
 
THE POLICY CONTRACT 91 
 
 every risk insured. Some apply to realty only, some to per- 
 sonalty only, others to both. The language used is in the 
 endeavor to fit the policy to whichever or whatever class of 
 property is the subject of insurance. 
 
 Again, all classes and kinds of people are insured, and 
 many of the restrictions and conditions are intended for use 
 and safeguard against the unfair or dishonest claimant, who 
 seeks that to which he is not in equity entitled. By far the 
 great majority of losses are adjusted and paid amicably and 
 satisfactorily to all concerned; but where an improper claim 
 is made the company needs the protection of every condi- 
 tion, for it is always at a serious disadvantage with the in- 
 sured, who knows the facts which the company can only 
 suspect or surmise, and that it can learn only by invoking 
 the aid of the policy conditions. 
 
 What may be termed the "old" New York Standard policy 
 was established by law in 1886 and has served as a model 
 for most of the fire insurance policies in use in the various 
 States of the United States. Almost every line of it has 
 been adjudicated. 
 
 The * * new ' ' New York Standard policy was made effective 
 as of January 1, 1918, and only a few of its conditions have 
 been interpreted by the courts. 
 
 It would be manifestly impossible within this small com- 
 pass to give adequate treatment of the various provisions, 
 but a brief review and comparison of those which most come 
 in question in agency work may serve as a guide to those 
 who have not made a study of the subject. 
 
 LOSS BY FIRE 
 
 • "Does insure * * * against all direct loss or damage by 
 fire." Two conditions will be noted in the foregoing 
 language, namely, that the loss shall be "direct" and that it 
 shall be caused "by fire," and this language is used both 
 in the old and the new standard policj^ 
 
 Direct Loss. The word "direct" here has the meaning of 
 proximate. The fire itself, or those things which are an ac- 
 companiment of a fire, must be the actual cause of the loss. 
 Thus damage caused by heat or smoke from a hostile fire, 
 or by firemen endeavoring to extinguish the flames, or by rain 
 
92 THE AGENTS KEY TO FIRE INSURANCE 
 
 or other of the elements as the result of a fire, are all cov- 
 ered by the policy and constitute a proper claim thereunder. 
 On the other hand : Loss of trade, or of use of building, or of 
 leasehold interest, or of rents, are not covered (unless lia- 
 bility is specifically assumed), for such are held to be indirect, 
 not direct losses. 
 
 One of the federal courts in defining fire, as meant in an 
 insurance policy, said, **Fire is oxidation which is so rapid as 
 to produce flame or glow. Fire is always caused 
 What by combustion, but combustion does not always 
 
 Is Fire? cause fire. No definition of fire can be found 
 
 that does not include the idea of visible heat 
 or light, and this is also the popular meaning of the word." 
 
 Fires are commonly divided into two classes: ** Friendly" 
 and ** Hostile." By a friendly fire is meant one that is con- 
 fined to the place where it is intended to be, 
 Friendly such as in a lamp, gas jet, stove, fireplace, 
 
 and Hostile furnace, etc., and any damage done by such a 
 Fires fire so confined, or by smoke, heat or soot there- 
 
 from, is not intended to be covered by a fire 
 policy. If, however, fire escapes from its proper confines and 
 causes ignition, so much as is outside its intended limits is a 
 hostile fire. Such a fire is presumed to be an accident, and 
 a hostile or accidental fire is what is contemplated in the 
 policy cover. As illustrative: If a lace curtain ignites from 
 a gas jet, or combustible material catches fire from contact 
 with a stove, the losses caused thereby to other property are 
 covered. But loss caused by heat, steam, smoke or soot es- 
 caping from their proper places is not ^covered, such, for 
 example, as smoke from a lamp or register, or steam from a 
 broken pipe. An explosion is not to be considered a fire as 
 contemplated in the policy and damage by explosion is not 
 covered unless such explosion is the result of a hostile fire. 
 
 An eminent adjuster gives the following definition of loss 
 by fire : 
 
 ** Within the meaning of an ordinary policy of insur- 
 ance the word 'fire' must be construed in its ordinary 
 popular sense, and not be given such technical or re- 
 stricted meaning as might be applied to it upon scientific 
 analysis. There must be something besides mere com- 
 bustion; the element of flame or glow must be present. 
 The fire must be without intent on the part of the in- 
 sured or his responsible agent to injure the property; 
 
THE POLICY CONTRACT 93 
 
 it must be accidental with respect to the insured. If in- 
 tentionally kindled for a useful purpose in a place 
 specially designed or provided, the fire does not change 
 its character because the flame extends unusually high, or 
 the heat becomes excessive, or smoke escapes there- 
 from and causes damage. The fire must be hostile as 
 distinguished from what is universally regarded as 
 friendly, and it must be the proximate and not the remote 
 cause of the loss. 
 
 If a hostile fire causes an explosion, the fire is held 
 to be the efficient cause of the whole loss which ensues 
 in the premises where it originates when its effects are 
 produced in direct sequence, though one of the incidents 
 of the sequence may be an explosion, on the theory that 
 it could not have been intended to nullify such predomi- 
 nant cause by the explosion exemption provision. 
 
 If, as the result of a hostile fire the concussion of the 
 air causes damage to neighboring property, the explosion 
 or concussion^ and not the fire, is held to be the proxi- 
 mate cause of the loss. If a friendly fire causes an ex- 
 plosion, none of the damage resulting can be regarded as 
 a loss by fire." (Bament, **What is a Fire Loss,*' 
 Ins. Soc. of N. Y.) 
 
 The new standard policy also assumes direct loss or 
 damage ''by removal from premises endangered by fire," 
 which was assumed in somewhat different terms under the 
 old standard (see lines 60-66). Both policies extend their 
 cover, though in different language, **pro rata for five days 
 at each proper place to which any of the property shall 
 necessarily be removed for preservation from fire." This 
 provision has the same effect as the distribution clause (see 
 index) . 
 
 CASH VALUE 
 
 Old N. Y. Standard. ''This company shall not be 
 liable beyond the actual cash value of the property at 
 the time any loss or damage occurs, and the loss or 
 damage shall be ascertained or estimated according to 
 such actual cash value, with proper deduction for de- 
 preciation however caused, and shall in no event exceed 
 what it would then cost the insured to repair or replace 
 
94 THE AGENTS KEY TO FIRE INSURANCE 
 
 the same with material of like kind and quality;^' 
 *'Nor, bej^ond the actual value destroyed by fire, for 
 loss occasioned by ordinance of law regulating con- 
 struction or repair of buildings, or by interruption of 
 business, manufacturing processes, or otherwise;" 
 
 New N. Y. Standard. The company insures 
 * ' To the extent of the actual cash value (ascertained with 
 proper deductions for depreciation) of the property at th.e 
 time of loss or damage, but not exceeding the amount which 
 it would cost to repair or replace the same with material 
 of like kind and quality within a reasonable time after 
 such loss or damage, without allowance for any increased 
 cost of repair or reconstruction by reason of any ordinance 
 or law regulating construction or repair and without com- 
 pensation for loss resulting from interruption of business or 
 manufacture. ' ' 
 
 To give a definition of ''actual cash value" which could 
 be applied to every case presented would be as difficult a task 
 as to devise one schedule for rating all classes 
 Sound of risks. Value depends on so many things 
 
 Value and such a variety of conditions that it seems 
 
 impracticable to do more than throw some side 
 lights on the methods in practice for its determination. This 
 is attempted because of the necessity of understanding how 
 to approximate the actual cash value (often termed sound 
 value) in order to decide the amount of insurance to be car- 
 ried, particularly where the coinsurance or average clause is 
 made a part of the contract. 
 
 The language of the policy itself endeavors to make this 
 subject clear, for it first refers to actual cash value, then 
 states that depreciation must be considered, 
 Cost of and finally contains the condition that the value 
 
 Replacement shall never exceed the cost of repair or replace- 
 ment. Since the contract is one of indemnity 
 for direct loss, it is clear that the actual cash value should 
 never be considered greater than the amount which will make 
 good to the insured, without gain and without consideration 
 of sentiment, or affection, that which has been destroyed, and 
 
THE POLICY CONTRACT 
 
 95 
 
 shall not include indirect or consequential loss unless liability 
 for such loss is specifically assumed or covered by the policy; 
 also, that the same measure should be used in determining the 
 value of property undamaged and the value of property 
 damaged or destroyed. 
 
 Actual cash value is sometimes construed as the equivalent 
 of market value at the time and place of fire; losses on 
 whiskey in bond, finished leather, grain, sugar 
 Market and other commodities, which have a ready 
 
 Value sale and recognized daily market value, are 
 
 almost always settled on the basis of the mar- 
 ket value on the date of the fire, with proper deductions for 
 the cost, if any, of getting them to market. At other times 
 it is cost of reproduction as in the case of manufactured goods 
 at the factory, and again it is replacement cost less de- 
 preciation. It is not contemplated that old shall be replaced 
 with new, for that would mean pecuniary gain to the insured ; 
 nor that property depreciated in value from whatever cause 
 shall be considered worth the cost of restoration: Neither is 
 the value to be fixed at what a junk shop or second hand 
 dealer would give, nor what it would bring at forced sale. 
 What one pays for property does not necessarily fix its 
 value, for the insured is entitled to the benefit of a bargain, 
 and declines or advances in values from whatever cause are 
 factors to be considered. 
 
 Building values are quite generally determined by ascertain- 
 ing the cost of replacement and deducting depreciation prop- 
 erly chargeable on the building damaged or 
 Realty destroyed. If justified by the extent of the 
 
 loss it is proper to add an allowance for archi- 
 tects ' fees and the cost of removing debris caused by fire. 
 If the original cost is taken then increases or decreases in the 
 cost of materials and labor are to be considered. Commer- 
 cial depreciation is often taken into account as in the case 
 of a building not suitable to its location or to the purpose for 
 which it is erected. Builders, associations and boards of 
 trade from time to time have tried to formulate some plan 
 of percentage reduction according to age that would be 
 acceptable as an average, but so many factors other than 
 age enter into the question that no such table has proven 
 satisfactory, hence the judgment of a competent builder, 
 or agreement between owner and adjuster, usually prevails. 
 In ease of partial losses to buildings it would seem that 
 the same depreciation should be deducted from cost of repair 
 
96 THE AGENTS KEY TO FIRE INSURANCE 
 
 in arriving at the insurance loss as from replacement in 
 arriving at sound value, but as a practical matter this does 
 not always obtain. A building is not necessarily of any 
 greater value because some portion of it has been rebuilt 
 with new material, hence the companies frequently allow 
 the entire cost of repairs. But in the case of plastering, 
 painting and roofing depreciation is often deducted, because 
 such elements of a building have a more or less well defined 
 life and new plaster, paint or roofing really add to the value. 
 In some states having valued policy laws, the amount of 
 insurance on the building is considered to be its value, and 
 this is generally true of all property insured under a valued 
 form of policy, providing the property burned is actually 
 that which is described in such policy. 
 
 The value of machinery and fixtures in use is usually de- 
 termined by th§ net cash market cost of replacement, less 
 depreciation on account of age and condition, 
 Personalty which in the case of articles that are out-of- 
 date, old-fashioned, etc., would be very heavy. 
 On the other hand, the value of a stock of machinery in the 
 manufacturer's hands would ordinarily be the cost of re- 
 construction, and in a dealer's hands the cost of replacement. 
 With all stocks of goods the net cash market value of new 
 goods of like kind and quality, after deducting depreciation 
 for age, salability, change of fashion, shopworn condition, etc., 
 is usually considered to be the value. 
 
 One of the most troublesome classes of personal property 
 on which to fix the actual cash value is the contents of a 
 
 dwelling house. It is evident that certain fur- 
 Household niture depreciates slowly, some little, if any, 
 Furniture and some actually appreciates in value, such 
 
 as genuine antiques, some good pictures and 
 fine rugs. Other articles depreciate in value rapidly, such as 
 hangings, carpets, linen and clothing, especially women's 
 dresses and hats. One experienced adjuster gives it as his 
 opinion that with the average household a fair valuation of 
 all clothing is 50% of the original cash cost price ; some things 
 are new, some half-w.orn, some [)ractically valueless, and his 
 thought is that by and large this figure strikes the happy 
 medium which is equitable. 
 
THE POLICY CONTRACT 97 
 
 Cost to replace does not necessarily mean instanter, but 
 may mean within a reasonable time, and it should always be 
 borne in mind that when figuring cost of re- 
 Replacement placement the lowest cash price is to be taken, 
 for the reason that the insured when paid his 
 loss has the cash in hand with which to obtain all the dis- 
 counts possible. 
 
 REPAIR OR REPLACE 
 
 Old y. Y. standard. ^^It shall be optional, however, 
 with this company to take all, or any part, of the articles 
 at such ascertained or appraised value, and also to 
 repair, rebuild, or replace the property lost or damaged 
 with other of like kind and quality within a reasonable 
 time on giving notice, within thirty days after the 
 receipt of the proof herein required, of its intention so 
 to do; but there can be no abandonment to this com- • 
 pany of the property described." 
 
 The New New York Standard policy condition is almost 
 identical in form with the above (see lines 176-184). 
 
 It is not customary for a company to exercise its right to 
 repair, rebuild or replace property damaged or destroyed. 
 Occasionally, buildings in the larger cities are repaired or 
 rebuilt and when the work is done it is customary and, in- 
 deed, necessary, for the company to require the contractor 
 to obtain from the insured a satisfaction piece, so-called, 
 that is, a signed statement stating therein that the work 
 done is satisfactory or is acceptable. 
 
 Occasionally, the value of a stock is agreed upon and the 
 salvage then sold **for account of whom it may concern/' 
 the money received, less expenses, going to the insured and 
 the companies making up the remainder of such loss as is due 
 under the conditions of the policies. Again the companies 
 may pay to the insured the entire sound value and take the 
 salvage to be sold for their account. Either action is, how- 
 ever, optional with the companies, for the insured can not 
 insist on anything but the amount of the actual loss, and 
 must himself handle or be responsible for the salvage, if any, 
 unless the companies elect otherwise, for *' there can be no 
 abandonment to this company of the property described." 
 (See also Duty of Insured in Case of Loss.) 
 
98 THE AGENTS KEY TO FIRE INSURANCE 
 
 ''THIS ENTIRE POLICY SHALL BE VOID 
 
 Old N. Y. Standard. If the insured has concealed or 
 misrepresented, in writing or otherwis e, any material 
 fact or circumstance concerning this insurance or the 
 subject thereof; or if the interest of the ins ured in the 
 property be not truly stated herein; or in case of any 
 fraud or false swearing by the insured touching any 
 matter relating to this insurance or the subject thereof, 
 whether before or after a loss." 
 
 The New N. Y. Standard policy is identical except that 
 it omits the words ''in writing or otherwise" and "or if 
 the interest of the insured in the property be not truly 
 stated herein," it being considered that both of these are 
 covered under other provisions. 
 
 The provision regarding concealment is construed to mean 
 a willful, intentional concealment or misrepresentation, and 
 "material" to mean in this sense substantial or important, 
 as distinguished from trivial. Likewise fraud or false swear- 
 ing must be material, not trivial, to avoid the policy. 
 
 The provision regarding interest truly stated means in 
 general if the interest be untruly stated. For example, 
 the policy is void if the interest is stated to be that of sole 
 and unconditional owner, and it develops that the interest is 
 that of guardian or trustee only. 
 
 Both the old and the new standard policies specify certain 
 kinds of property which cannot be covered at all under 
 any circumstances, viz.: "accounts, bills, currency, deeds, 
 evidences of debt, money, notes, or securities." 
 
 They also specify certain kinds of property which are 
 not covered unless liability is specifically assumed, the 
 language being as follows: 
 
 Old Standard. "Nor, unless liability is specifically as- 
 sumed hereon, for loss to awnings, bullion, casts, curiosities, 
 drawings, dies, implements, jewels, manuscripts, medals, 
 models, patterns, pictures, scientific apparatus, signs, store 
 or office furniture and fixtures, sculpture, tools, or property 
 held on storage or for repairs." 
 
THE POLICY CONTRACT 99 
 
 New Standard. *'Nor unless specifically named hereon in 
 writing, bullion, manuscripts, mechanical drawings, dies or 
 patterns. ' ' 
 
 It will be noted that the new standard is much broader 
 in its cover than the old, having narrowed the list of kinds 
 of property not covered unless specifically named to those 
 which experience shows are of such a nature as to require 
 special cover or provision. The value of bullion, manuscripts, 
 drawings, dies and patterns is of such uncertain nature that 
 it is preferable for both insured and company to have some 
 special understanding regarding their cover rather than to 
 bring them under the general cover of the policy, especially 
 where coinsurance conditions prevail. 
 
 We now come to a very important difference between the 
 old and the new standard policies. Under the old standard 
 the policy was rendered void by a violation of any one of 
 fourteen conditions, which under the new standard are re- 
 duced to five, the others rendering the policy void only 
 during the violation, and automatically reinstating it when 
 the violation ceases. 
 
 The Old Standard policy reads: 
 
 ^^THIS ENTIRE POLICY UNLESS OTHERWISE 
 PROVIDED BY AGREEMENT INDORSED HEREON 
 OR ADDED HERETO SHALL BE VOID • • 
 
 The New Standard policy reads: 
 
 ^^THIS ENTIRE POLICY SHALL BE VOID, UN- 
 LESS OTHERWISE PROVIDED BY AGREEMENT 
 IN WRITING ADDED HERETO." 
 
 The five conditions which are identical in substance are 
 as follows: 
 
 *** * if the interest of the insured be other than uncon- 
 ditional and sole ownership." This requires that the interest 
 be clearly set forth. It does not mean that the 
 Ownership building or personal property at No. 24 John 
 Interest Street must be owned by the insured, but if 
 
 he does not own it solely and unconditionally 
 then the policy must state what his interest is therein, such as 
 a half interest or trustee interest, etc. One method of stat- 
 
100 THE AGENTS KEY TO FIRE INSURANCE 
 
 ing the insured's interest is to use the general phrase **as 
 interest may appear," which broad clause will cover his in- 
 terest of whatever name or nature. 
 
 The following may be cited as examples of conditions, each 
 of which effects a change in ownership that avoids the policy : 
 
 (a) Sale of the property. 
 
 (b) An assignment for the benefit of creditors. 
 
 (c) The appointment of a trustee in bankruptcy; though 
 
 the appointment of a receiver in bankruptcy is not 
 usually considered a change of ownership. 
 
 (d) If a co-partnership takes in a new partner, but not 
 
 if instead one retires. 
 
 (e) Contract of sale where vendee is given or takes pos- 
 
 session. 
 
 Contracts of Sale. An executory contract of sale, without 
 change of possession, is not a breach of the policy con- 
 ditions referring to change of ' * interest, title or possession. ' ' 
 Loss will usually fall on the vendor if a building is damaged 
 by fire between the making of the customary contract of sale 
 and the delivery of the deed. 
 
 On the other hand, if the vendee under such a contract is 
 let into possession, there is a breach of condition. A well- 
 known authority states, ''the test is said to be whether the 
 vendor has parted with absolute control and dominion over 
 the subject of insurance, and where a formal delivery of the 
 deed is delayed for convenience only, such a vendee becomes 
 an equitable owner and liable for any loss ; and the vendor in 
 such case cannot enforce his insurance because there has been 
 a change of title or possession." (See *.) 
 
 Where the interests of both parties to a contract of sale 
 of realty are to be protected under the same fire insurance 
 policy, there are two methods which may be chosen: 
 
 First. To write the policy in the names of the vendor and 
 the vendee, as interest may appear. 
 
 Second. To write the policy in the name of the one in 
 possession, whether vendor or vendee, with loss payable to 
 the other party to the contract, as interest may appear. 
 
 *EcIffar J. Nathan, "OWNERSHIP" : Insurance Society of New York. 
 
THE POLICY C'6n^RA<:T 101 
 
 One reason for this general condition is to prevent an 
 insured from collecting on the basis of entire value of prop- 
 erty when he is in fact only a part owner and therefore only 
 a part loser in case of its destruction. 
 
 '*If the subject of insurance be a building on ground 
 
 not owned by the insured in fee simple 
 
 In such cases the insured might be tempted to permit a 
 destruction of the building in order to collect the value 
 thereof from the insurance before the property passed from 
 his possession. Under this provision a policy on building 
 standing on leased land is void ' ' unless otherwise provided. ' ' 
 
 ^^If with the knowledge of the insured foreclosure 
 proceedings be commenced or notice given of sale of 
 any property * * * by reason of any mortgage or trust 
 deed;^^ 
 
 Such action tends to increase the possibility of moral 
 hazard for obvious reasons and introduces a new and ma- 
 terial interest and condition of which the insurance company 
 is entitled to have notice. 
 
 ^*If any change, other than by the death of an in- 
 sured, takes place in the interest, title or possession of 
 the subject of insurance (except change of occupants 
 without increase of hazard)." 
 
 Such a change brings a different condition that may affect 
 the desirability of the risk and affect the contract as a 
 whole (see remarks under ^^sole and unconditional owner- 
 ship"). 
 
 *^If this policy be assigned before a los s. ' ' 
 
 This would change the most essential feature of the con- 
 tract, which is a personal one. If permitted without notice 
 to or consent of the company it would have no opportunity 
 to select the parties holding its policy contracts or to pass 
 upon their reliability. 
 
 The remaining conditions which are grouped under the 
 general heading voiding the policy in the old standard, are, 
 in the new standard policy grouped under the following 
 heading : 
 
102 . ;, I , T^J., AGENXS KFV ^O FIRE INSURANCE 
 
 '' UNLESS OTHERWISE PROVIDED BY AGREE- 
 MENT IN WRITING ADDED HERETO THIS COM- 
 PANY SHALL NOT BE LIABLE FOR LOSS OR 
 DAMAGE OCCURRING.'^ 
 
 ^^(a) While the insured shall have any other contract 
 of insurance, whether valid or not, on property covered 
 in whole or in part by this policy;" 
 (Compare with lines 11-13, old standard.) 
 
 In many cases companies are willing to insure only when 
 the amount of total insurance carried is limited, hence the 
 necessity of this provision. 
 
 ^^(b) While the hazard is increased by any means 
 within the control or knowledge of the insured." 
 (Compare with lines 14-15, old standard.) 
 
 It is the assumption that the rate at which a policy is 
 issued is based on the conditions existing at the time of 
 
 issuance, and upon their continuance during 
 Hazard the life of the policy in practically unchanged 
 
 Increased form, and that it is inequitable to continue a 
 
 contract covering increased hazards without the 
 consent of the company and a consideration satisfactory 
 to it. Authorities generally hold it is not intended that an 
 incidental, temporary increase of hazard shall void the 
 policy, but that a change in the premises or their use or 
 exposure must be more or less permanent in character, or 
 continued for a period of time that cannot be considered 
 as merely temporary, before same is voided. The use of 
 a tin chimney while a brick chimney was being erected or 
 repaired would be a temporary increase ,of hazard that 
 
 would not void the policy. The increase must 
 Must Be be material, not merely trivial, and be of rela- 
 
 Material tive importance, and as such may be within 
 
 the premises or adjacent thereto. The instal- 
 lation of a power wood-sawing machine in a store or the 
 erection of a planing mill a few feet distant would be a 
 material increase of hazard; but sawing wood with a buck 
 saw or building a dwelling 10 feet distant, would not usually 
 be considered a material increase. The insured should 
 promptly notify the company when an increase of hazard 
 
THE POLICY CONTRACT 103 
 
 comes to his knowledge; by ''promptly" is meant within 
 a reasonable time or without undue delay. 
 
 The policy specifies a number of things which are pre- 
 sumed to increase the hazard either from a physical or moral 
 standpoint, and this may be noted by reading 
 Physical the entire paragraphs of which the foregoing 
 
 or Moral quotations are a portion. It is manifestly im- 
 
 plied by these specified things which are pre- 
 sumed to increase the hazard and thus void the policy that 
 the general phrase ' ' increase of hazard ' ' refers also to things 
 other than physical, and courts have held that an increase in 
 moral hazard, or what might be termed personal hazard, 
 known to the insured and not reported to the company voided 
 the policy. One such case was where enemies had threat- 
 ened to burn all of a man's property, having already set 
 fire to one of his buildings. This seems an extreme case, and, 
 generally speaking, it is the physical hazard that is thought 
 of in connection with this general term. 
 
 An insured is usually considered responsible for the acts 
 of his duly authorized agent; therefore knowledge coming 
 to such agent while acting within the scope of his authorized 
 work is considered knowledge on the part of the insured. 
 
 It should be borne in mind that the old standard policy is 
 voided by breach of this condition, while under the new 
 standard the company is not liable during the breach. The 
 foregoing remarks apply to either form. 
 
 "(c) While mechanics are employed in building, 
 
 altering or repairing the described premises beyond a 
 
 p eriod of fifteen days;'' 
 
 (Compare with lines 15-16, old standard.) 
 
 This provision is necessary because in many cases where 
 mechanics are employed for longer than 15 days the resulting 
 increase of hazard requires an extra premium in order to 
 compensate the company for the extra risk. 
 
 "(d) While illuminating gas or vapor is generated 
 on the described premises; or while (any usage or cus- 
 tom to the contrary notwithstanding) there is kept, used 
 or allowed on the described premises fireworks, greek 
 
104 THE AGENTS KEY TO FIRE INSURANCE 
 
 fire, phosphorus, explosives, benzine, gasoline, naphtha 
 or an}'^ other petroleum product of greater inflammability 
 than kerosene oil, gunpowder exceeding twenty-five 
 pounds, or kerosene oil exceeding five barrels;" 
 (Compare with lines 22-28, old standard.) 
 
 This provision is proper because of the marked increase 
 of hazard resulting from their presence in a risk. 
 
 ^^(e) If the subject of insurance be a manufacturing 
 e stablishment while operated in whole or in part between 
 the hours of ten P. M. and five A. M., or while it ceases 
 to be operated beyond a period of ten days;" 
 (Compare with lines 13-14, old standard.) 
 
 The question is often asked, if a factory is not operating 
 on the date a policy takes effect and so continues for more 
 than ten days, is the policy thereby rendered 
 Cease void? From the wording of this condition it 
 
 Operations is clear that the policy is void under the old 
 N. Y. Standard only when operations cease 
 subsequent to the date when policy takes effect, but the 
 policy may be voided in such case because of the concealment 
 of a material fact. Under the new standard the company 
 would not be liable under the conditions shown in caption. 
 Hence, for safety a permit should be attached. 
 
 Privilege to '* cease operations" in such case would be 
 technically ineffective, for being already idle it cannot cease 
 operations. For this reason the permit is often worded, 
 ''Privilege granted to cease operations or to remain 
 idle for a period of not exceeding .... days at any one 
 time. ' ' 
 
 ''Cease to be operated" is usually defined as a condition 
 where the factory is not producing goods. A manufacturing 
 plant is not usually in operation when merely the office force 
 and shipping department are at work, or workmen are busy 
 making repairs. A plant has "ceased operations" when it is 
 "shut down" as that phrase is commonly used by manufac- 
 turers. 
 
 " (f) While a described building, whether intended for 
 occupancy by owner or tenant, is vacant or unoccupied 
 b eyond a period of ten days;" 
 (Compare with lines 28-30, old standard.) 
 
THE POLICY CONTRACT 105 
 
 The terms ''Vacancy" and "Unoccupancy " are not 
 synonymous: A vacant building is one that is empty — one 
 
 void of all but rubbish or waste paper or 
 Vacancy other similar things; an unoccupied building 
 
 and is one that may have therein the things usual 
 
 Unoccupancy to it, but which has not the presence of human 
 
 beings in the customary way. 
 
 As applied to a dwelling house, unoccupancy has been de- 
 fined as ** lacking the habitual presence and continued abode 
 of human beings within it." The New York Court of Ap- 
 peals in defining occupancy says, "For a dwelling house to 
 be in a state of occupation, there must be in it the presence 
 of human beings as at their customary place of abode, not 
 absolutely and uninterruptedly continuous, but that must be 
 the place of usual return and habitual stoppage." 
 
 Periodical inspection does not constitute occupancy, nor 
 does the presence of a caretaker during the day. Some au- 
 thorities hold that a caretaker living in a house does not 
 render it ''occupied," and most will agree that it is not 
 occupancy in any proper sense ; on the other hand, if servants, 
 as distinguished from mere caretakers, are living in a house 
 and maintaining it in constant readiness for the owner's (or 
 tenant's) presence, then it is usually considered to be occu- 
 pied within the meaning of the policy. 
 
 The occupation of a tenant house on a farm, even where the 
 outbuildings are in use, does not constitute occupancy of the 
 main dwelling; nor would occupancy of the main dwelling and 
 outbuildings constitute occupancy of the tenant house. 
 
 A store, even though filled with goods, is not occupied un- 
 less it is open for trade in the customary manner. On the 
 other hand, a school is not usually considered unoccupied 
 during the vacation period, even though no human beings are 
 in it. A church is usually considered occupied if services are 
 held in it at regular periods. 
 
 "(g) By explosion or lightning, unless fire ensu e, and, 
 in that event, for loss or damage by fire only." 
 
 (Compare with lines 34-35, old standard.) 
 
 This clause in the new N. Y. Standard policy covers a fire 
 loss following one by explosion or lightning, whereas under 
 
106 THE AGENTS KEY TO FIRE INSURANCE 
 
 the old N. Y. Standard form the lightning cover had to be 
 assumed by attaching a rider. 
 
 ^^If an application, survey, plan, or description of 
 property be referred to in this policy it shall be a part 
 of this contract and a warranty by the insured.*^ 
 
 (Omitted from new New York Standard Policy.) 
 
 If the form reads, '*as per application" or **as described 
 in survey'* or "as shown on plan" or any similar language, 
 
 the insured is bound by the information given 
 Application or the statements made in such documents even 
 a Warrantee more than if made in the form itself, for these 
 
 documents become warranties by the insured , 
 and a warranty must be lived up to or the policy is void. If 
 the insured warrants that a building has a shingle roof and 
 the roof is actually of tin, the policy is void strictly speak- 
 ing, although, of course, few companies would care to take 
 advantage of the avoidance on such grounds. 
 
 The Old N. Y. Standard policy provides that unless other- 
 wise endorsed it shall be void 
 
 "If the subject of insurance be personal propert y and 
 be or become encumbered by a chattel mortgage." 
 
 This was felt to be an unnecessarily harsh provision, since 
 a chattel mortgaged piano, for example, if included in a 
 household furniture policy would void the entire contract. 
 
 Hence in drafting the New N. Y. Standard the provision 
 was changed to read as follows: 
 
 " Unless otherwise provided by agreement in writing 
 added heret o this company shall not be liable for loss 
 or damage to any property insured hereunder while 
 incumbered by a chattel mortgage, and during the time 
 of such incumbrance this company shall be liable only 
 for loss or damage to any other property insured here- 
 under. ' ' 
 
 Old N. Y. Standard: "If a building or any part thereof 
 fall, except as the result of fire, all insurance by this policy 
 on such building or its contents shall immediately cease." 
 
THE POLICY CONTRACT 107 
 
 This is unchanged in the New N. Y. Standard except for 
 the insertion of the word ** material" before ^^part," thus 
 bringing the policy condition in line with court decisions 
 that a substantial part of the building must fall in order to 
 terminate the insurance. 
 
 The conditions relating to added clauses and provisions, 
 to waiver and to pro rata liability are substantially alike in 
 both standard policies and need no special comment here 
 (see chapter on Waiver and Estoppel). 
 
 The conditions relating to cancellation of policy and to 
 mortgage interest are felt of sufficient importance to require 
 separate treatment (see Index). 
 
 "Noon." The new N. Y. Standard policy contains an 
 interpretation of the word "noon" as meaning ''noon of 
 standard time at the place of loss or damage." Under most 
 judicial constructions noon has heretofore meant solar instead 
 of standard time and with the introduction of daylight 
 saving time it was felt desirable to have a clear definition 
 in the policy so that all doubt should be removed. 
 
 For convenience of reference tha duties of the insured 
 in case of fire and in case of' claim for loss are grouped 
 together. 
 
 DUTY OF THE INSURED IN CASE OF FIRE 
 
 * 'This company shall not be liable for loss caused * * by 
 neglect of the insured to use all reasonable means to save 
 and preserve the property at and after a fire or when the 
 property is endangered by fire in neighboring premises; " 
 
 This charges the insured with the duty of taking such 
 reasonable measures to put out the fire as common sense 
 would dictate, such as giving the alarm, using available means 
 for extinguishing the flames, as, for example, the water pails, 
 chemical extinguishers, standpipe and hose, etc., but it does 
 not require him to endanger life and limb. In some sense 
 this duty is a public one, quite apart from any question of 
 insurance, for fire may spread from his premises to those 
 adjoining; in Prance and some other countries he would be 
 liable for damage to the property of others caused by a fire 
 that originated on his premises. 
 
108 . THE AGENTS KEY TO FIRE INSURANCE 
 
 It is even anticipated that in the exercise of this duty the 
 insured will remove to a place of safety property endan- 
 gered by fire in neighboring premises, for both 
 Removal the old and the new standard policies spe- 
 
 to Safety cifically assume liability for five days when 
 
 property is so removed. 
 
 When property is so removed * Moss by and expense of re- 
 moval from premises endangered by fire^^ is a proper and 
 valid claim on the insurance, within reasonable limits. 
 
 The duty also extends after the fire and requires the insured 
 *Ho use all reasonable means to save an d preserve the prop- 
 erty^' Therefore, it is not a proper fulfil- 
 Prevent ment of his contract if the insured does noth- 
 
 Further ing to prevent further damage — beyond that 
 
 Loss caused by fire and water. He should not **let 
 
 everything stay just as it is until the insurance 
 people come" as so often is said, but should dry out goods 
 that will otherwise spoil or mildew, oil or grease machinery 
 to keep it from rusting and do all the other things that a 
 careful and prudent man would do if uninsured. A reduction 
 of losses as a whole will bring about a reduction in the cost 
 of insurance as a whole. The theory of this condition where- 
 by the company is not liable for neglect of the insured is 
 that loss resulting therefrom is not a loss caused directly by 
 fire, but rather by the insured's lack of care. Wilful neglect 
 of the insured to protect property comes perilously near to 
 being fraud. 
 
 DUTY OF THE INSURED IN CASE OF LOSS 
 
 When loss occurs there are certain things which the insured 
 MUST do, and others which he may be required to do upon 
 notice from the company. The unconditional duties are : 
 
 **To give immediate notice in writing" to the company; 
 This is held to mean ** within a reasonable time," and notice 
 to the agent is notice to the company, although such notice is 
 sometimes sent direct to the company by registered mail. 
 
 "Protect the property from further damage; " 
 This has been referred to elsewhere and emphasizes the duty 
 of the insured to ^'^save and preserve the property from 
 further damage." 
 
THE POLICY CONTRACT 109 
 
 ** Forthwith separate the damaged and undamaged per- 
 sonal property, put it in the best possible order; ^^ 
 
 * ' Make a complete inventory of the same, stating the quan' 
 titv and cost of each article and the amount claimed there- 
 
 The New N. Y. Standard policy provides that the insured 
 shall ''furnish" a complete inventory of damaged, undam- 
 aged and destroyed property, thus leaving no question that 
 the inventory shall be complete and shall not merely be 
 made but actually furnished to the company. 
 
 The law does not ask impossibilities; the insured must 
 use every reasonable effort to comply with this requirement, 
 but where the facts cannot be ascertained exactly, then the 
 insured must do the best he can to comply. 
 
 The statement referred to in the following is commonly 
 called the ''Proof of Loss." 
 
 "And, within sixty days after the fire, unless such time 
 
 "is extended in writing by this company, shall render a 
 
 " statement to this company, signed and sworn to, stating 
 
 " the knowledge and belief of the insured 
 
 " as to the time and origin of the fire ; ^ * 
 
 " the interest of the insured and of all others in the 
 
 property ; ' ' 
 ' ' The cash value of each item thereof and the amoun t 
 
 of loss th e reon;" 
 "^11 encumbrances thereon;" 
 
 " all other insurance, whether valid or not, covering 
 any of said propert}^ ; ' ' 
 
 "a copy of all the descriptions and schedules in all 
 policies ; ' ' 
 " 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 occu- 
 pied at the time of fire;" 
 The statements contained in this "proof of loss," it will 
 
110 THE AGENTS KEY TO FIRE INSURANCE 
 
 be noted, call for information, furnished and sworn to by 
 the insured, tending to establish the *' actual cash value" of 
 the property damaged or destroyed, and also to show whether 
 or not any of the conditions of the policy have been violated. 
 
 The old and the new N. Y. Standard policies are alike in 
 substance as the requirements relating to proof of loss. 
 
 In addition to these unconditional duties enumerated, the 
 insured is obligated, IF REQUIRED, to perform the follow- 
 ing duties: 
 
 ^ ^ furnish verified plans and specifications of 
 Plans any building, fixtures, or machinery damaged 
 
 or destroyed," 
 
 Under the old but not under the new N". Y. Standard 
 policy the insured, if required, must 
 
 ^ * furnish a certificate of the magistrate or notary pub - 
 lic (not interested in the claim as a creditor or other- 
 wise, nor related to the insured) living near- 
 Magistr at e ' s est the place of fire, stating that he has ex- 
 Certificate amined the circumstances and believes the 
 
 insured has honestly sustained loss to the 
 amount that such magistrate or notary public shall 
 certify. ' * 
 
 These two clauses are omitted from some policies, notably 
 Massachusetts. The requirement of verified plans is almost 
 a necessity where property has been totally destroyed. The 
 magistrate's certificate is seldom required, and when called 
 for the word *^ nearest'' may be construed reasonably. 
 
 ^^ shall exhibit to any person designated by this com- 
 pany all that remains of any property herein 
 Exhibit described, and submit to examinations under 
 
 Remainder oath by any person named by this company, 
 and subscribe the same;" 
 * * sh all produce for examination all books of account , 
 bills, invoices, and other vouchers, or certified 
 Produce copies thereof if originals be lost, at such 
 
 Books and reasonable place as may be designated by thia 
 Vouchers company or its representative, and shall per^ 
 
 mit extracts and copies thereof to be made." 
 
THE POLICY CONTRACT 1 1 1 
 
 In the new N. 'Y. Standard policy an interpretation is 
 placed upon these requirements by law by inserting that 
 the exhibit shall be as reasonably required and that both 
 the place and the time for examination of books of account 
 shall be reasonable. 
 
 Here, again, the law does not require impossibilities, bul 
 the insured must use every reasonable effort to exhibit the 
 remains of property, and must not dispose of it until the 
 company has had an opportunity to examine same; but the 
 company, too, must be reasonable in the time it takes to 
 make the examination. There is usually no reason, however, 
 for not being able to produce books of account, bills, etc., or 
 for not making every reasonable effort to obtain duplicates, 
 and there is no reason, save physical disability, for not 
 submitting to examination under oath touching those matters 
 which have a material bearing on the loss, or the origin of 
 the fire, or the insurance. 
 
 APPRAISAL 
 
 The policies of every state contain a provision in some 
 form for the submission to appraisal of a loss, the amount of 
 which cannot be agreed upon. All such provisions provide 
 for an appraiser chosen by the insured and one by the com- 
 pany, together with a third chosen by these two, or by some 
 court or state official. It is provided that such appraisers 
 shall be ' ' competent and disinterested, ' ' and it 
 Competent is expected that each shall act without bias 
 and toward either party to the loss. By *' corn- 
 
 Disinterested petent" is meant one who has sufficient knowl- 
 edge concerning the kind of property involved 
 to determine values and estimate damages thereto. A build- 
 ing contractor would not usually be competent to appraise a 
 loss on dry goods, nor a ribbon salesman a loss to a building. 
 B}'- *^ disinterested" is meant one who has no pecuniary in- 
 terest in the loss, is not related to any interested party and 
 has no connection that would tend to influence his award. 
 It would not ordinarily bar out one who had done previous 
 work for either party, or expected to do work for either in 
 the future, but usually it is inadvisable to name as an ap- 
 praiser or umpire one who has previously examined the loss 
 and given an opinion or estimate of its amount. In refer- 
 ring to appraisers it is best not to use the terms 'Hhe com- 
 pany's appraiser" or ''the insured's appraiser," for this 
 tends to destroy the element of disinterestedness; the better 
 
112 THE AGENTS KEY TO FIRE INSURANCE 
 
 tenu to use is 'Hhe appraiser uamed by the insured (or the 
 company)." 
 
 While the policy apparently provides for a submission to 
 appraisal in event of disagreement on demand by either the 
 
 insured or the company, there is no penalty 
 Requirements provided if the company refuses, other than to 
 
 be sued at law, whereas the policy provides a 
 penalty if the insured refuses, for one of its provisions is 
 that ^ ^No suit or action on this policy, for r ecovery of any 
 claim, shall be sustainable in any court of law or eq uity until 
 after FULL COMPLIANCE BY THE INSURED WITH ALL 
 THE FOREGOING REQUIREMENTS," and he must, there- 
 fore, submit to appraisal if demanded, though he may after- 
 wards sue in court if he so chooses. It may be stated, how- 
 ever, that appraisals are usually sustained by the courts un- 
 less material bias or incompetence is shown on the part of 
 one or more of the appraisers, or the umpire, or undue influ- 
 ence is exerted. 
 
 The New N. Y. Standard policy changes this condition to 
 read ** until all the requirements of this policy shall have 
 been complied with," which does not change the obligation 
 which the insured has, but opens the way for suit under 
 some other interest, such as that of a mortgagee. 
 
 CONTRIBUTION 
 
 Old N. Y. Standard. ''This Company shall not be liable 
 u nder this policy for a greater proportion of any loss on 
 the described property, or for loss by and expense of re- 
 moval from premises endangered by fire, than the amount 
 hereby insured shall bear to the whole insurance, whether 
 valid or not, or by solvent or insolvent insurers, covering 
 such property." 
 
 New N. Y. Standard. ''This company shall not be liable 
 for a greater proportion of any loss or damage than the 
 amount hereby insured shall bear to the whole insurance 
 covering the prope rty, whether valid or not and whether 
 collectible or not." 
 
THE POLICY CONTRACT 113 
 
 This change is somewhat broader in scope than in the 
 old form and is in part intended to prevent all of a loss 
 falling on one or more companies or set of policies when 
 there were in fact other companies or other policies covering 
 the property, which, due to breach of condition, insolvency 
 or other reason, were uncollectible. 
 
 All insurance to contribute must cover the same INTER- 
 EST, or some portion thereof. There may be two sets of poli- 
 cies covering the same property that would not contribute 
 because they do not cover the same interest ; for example, 
 one may cover on building for the owner and the other the 
 mortgagee's interest as such in said building, in which case 
 neither need contribute with the other: Or a stock of goods 
 may be covered for the owner under one policy, and the own- 
 er's interest in profits thereon may be covered under another 
 policy, neither contributing because the interests are separate 
 and are insured as such. 
 
 The provision that all insurance must contribute "whether 
 valid or not, or by solvent or insolvent insurers,'^ is inserted 
 because without such a provision each company, 
 Validity; to a certain extent, would be in the position of 
 Solvency guaranteeing the indemnity called for under 
 
 all other policies and from all other companies. 
 For example: Assume that Company *'A," Company ''B" 
 and Company *^Z" each issues a policy for $5,000 on a 
 building on which thereafter a loss of $4,500 occurs; assume 
 also that at the time of fire Company *'A'' is solvent and 
 its policy in full force and effect ; that the policy of Company 
 "B" has been rendered invalid by breach of some condition 
 not present in the policy of Company '*A," and that Com- 
 pany *'Z" has become bankrupt and its policy is worthless. 
 In such case, were the policies of Company **B" and Com- 
 pany ^*Z" not held to be contributing insurance, the entire 
 loss of $4,500, instead of only one-third that amount, would 
 fall on Company *'A," which is solvent and whose policy is 
 liberal in its cover. This would be manifestly inequitable. 
 
 **The extent of the application of the insurance under this 
 policy or of the contribution to be made by this Company in 
 case of loss, may be provided for by agreement or cond ition 
 written hereon or attached or append ed hereto. '* 
 
 Th,is condition is rarely called in question. Presumably it 
 
114 THE AGENTS KEY TO FIRE INSURANCE 
 
 was inserted in order to provide for such clauses as the 
 Three-Fourths Value, the Two-Thirds Vacancy, the various 
 Coinsurance or Average Clauses, and others that may have 
 some bearing on the amount which the individual company 
 shall pay under certain conditions, yet it can hardly be ques- 
 tioned that such clauses would have the same effect in the 
 absence of this provision. 
 
 The New N. Y. Standard policy adds to the quoted clause 
 
 the following: ^^And any other agree ment not inconsistent 
 
 with or a waiver of any of the condit ions or provisions of 
 
 this policy. '^ 
 
 SUBROaATION 
 
 Old N. Y. Standard. ^^I f the company shall claim that the 
 fire was caused by the act or neglect of any person or 
 corporation, private or municipal, this company shall, on 
 payment of the loss, be subrogated to the extent of such 
 payment to all right of recovery by the insured for the 
 loss resulting therefrom, and such right shall be assig ned 
 to this company by the insured on receiving such payment." 
 
 New N. Y. Standard. ^^This company may require from 
 the insured an assignment of all right of recovery against 
 any party for loss or damage to the extent that payment 
 therefor is made by this company . ' ^ 
 
 The common law gives certain rights of subrogation to 
 which the company would be entitled without this provision 
 in the policy, but it is apparently inserted in 
 Rights order that such rights may be clearly under- 
 
 stood and in order that the company may ob- 
 tain subrogation on demand without resort to the courts to 
 enforce the right as might otherwise happen in the case of 
 an obstinate or litigious policj'^holder. 
 
 The cases in which subrogation is usually asked are those 
 where fire is thought to have been caused by sparks from a 
 railroad engine, or by an overloaded electric 
 Negligence light or power wire, or other cases where negli- 
 gence is alleged, or where the insured has the 
 right of recovery from a third party, as in the case of dam- 
 age to property while in the custody of a common carrier. 
 
THE POLICY CONTRACT 115 
 
 For the reason that this right of subrogation is — or may 
 be — valuable to the company, the insured should not waive 
 
 right of recovery without notice to the com- 
 Waiver of pany, and endorsement of the policy, for there 
 Recovery is danger, under certain conditions, that such 
 
 waiver by the insured, without notice, might 
 be held to be concealment of a material fact and so avoid the 
 policy, particularly since most organizations prescribe a 
 charge for waiver of subrogation on the part of the company. 
 
 The endorsement to be made may take the following form : 
 
 '*In consideration of $ additional premium 
 
 notice is hereby acknowledged that the insured has 
 
 waived the right of recovery from for any 
 
 loss or damage by fire to the property herein described. ' ' 
 
CHAPTER IX 
 
 WAIVER AND ESTOPPEL BY AGENT 
 
 Oral Waiver — Knowledge by Agent — Acceptance of 
 Premium — Demand on Insured — Denial of Lia- 
 bility. 
 
 The Old New York Standard policy contains the following 
 provision: ''This policy is made and accepted subject to the 
 
 foregoing stipulations and conditions, together 
 Policy with such other provisions, agreements, or con- 
 
 Provision ditions as may be endorsed hereon or added 
 
 hereto; and no officer, agent or other represen- 
 tative of this company shall have power to waive any pro- 
 vision or condition of this policy except such as by the terms 
 of this policy may be the subject of agreement endorsed here- 
 on or added hereto ; and as to such provisions and conditions 
 no officer, agent or representative shall have such power or 
 be deemed or held to have waived such provisions or condi- 
 tions unless such waiver, if any, shall be written upon or 
 attached hereto, nor shall any privilege or permission affect- 
 ing the insurance under this policy exist or be claimed by the 
 insured unless so written or attached.'^ 
 
 The New New York Standard policy changes the phrase- 
 ology to read : ' ' No one shall have power to waive any pro- 
 vision or condition of this policy except such as by the terms 
 of this policy may be the subject of agreement added hereto, 
 nor shall any such provision or condition be held to be waived 
 unless such waiver shall be in writing added hereto, nor 
 shall any provision or condition of this policy or any for- 
 feiture be held to be waived by any requirement, act or pro- 
 ceeding on the part of this company relating to appraisal 
 or to any examination herein provided for; nor shall any 
 privilege or permission affecting the insurance hereunder 
 exist or be claimed by the insured unless granted herein or 
 by rider added hereto." 
 
 Oral Waiver. The manifest purpose of this provision is to 
 make it impossible to orally waive any condition of the 
 policy; in other words, to require that any modification of the 
 
 116 
 
WAIVER AND ESTOPPEL BY AGENT 117 
 
 conditions of the policy must be in writing. Unfortunately 
 the courts have not uniformly so construed this provision; 
 there are circumstances under which the conditions of the 
 policy may be waived, or a violation thereof tacitly per- 
 mitted, without being endorsed thereon in writing. 
 
 Without attempting to cover the subject in much detail it 
 may prove of value to illustrate briefly some of the views 
 which the courts have taken of this provision : 
 
 Knowledge by Agent. Knowledge by the agent of the 
 company is knowledge by the company itself. When an 
 agent issues a contract of insurance he is presumed to waive 
 any violation of its conditions of which he has knowledge at 
 the inception of the policy. Such knowledge by the agent 
 will ordinarily be knowledge acquired at the time of writing 
 or negotiating the insurance, or within such period of time 
 that the knowledge might reasonably be presumed to be fresh 
 in his mind. It seems improbable that he could be charged 
 with knowledge that he once had, long before, which would 
 ordinarily pass out of his mind. To illustrate: Knowledge 
 of other insurance existing at the inception of the policy 
 would be tacit permission for such amount of other insur- 
 ance, although not for a greater amount, but the fact that a 
 year previously the agent knew that the insured had a barrel 
 of gasoline on his premises would not be held to be a waiver 
 of the restriction in the policy against keeping gasoline. 
 
 Knowledge that premises were vacant at the inception of 
 the policy, or that mechanics were at work therein, or that 
 manufacturing had ceased, would not be tacit permission for 
 such conditions to continue indefinitely, for the policy per- 
 mits them for a certain number of days and it is to be pre- 
 sumed that the insured will comply with the policy conditions 
 after the stated time permitted has elapsed. 
 
 Knowledge that the agent acquired after the issuance of 
 policy of a violation of its conditions may not require any 
 action on his part, and by taking no action he may not waive 
 any defense the company might have, but it is certainly safer 
 to recall the policy unless he is willing to waive the viola- 
 tions. In such cases he should not serve the regular cancel- 
 lation notice, for that might operate to make the insurance 
 valid for at least five days, unless sooner surrendered. (See 
 under ** Cancellations*' for special form therefor). 
 
118 THE AGENTS KEY TO FIRE INSURANCE 
 
 Endorsement or correction of a policy with knowledge of a 
 violation is a waiver thereof even though the endorsement or 
 correction made has no bearing on such violation. 
 
 Accepting Premium. The acceptance of the premium on a 
 policy with knowledge of a violation of its conditions that 
 would be a bar to any recovery thereunder would be a fraud 
 on the insured. Therefore, it is held that the acceptance of 
 the premium under such conditions would operate as a 
 waiver of such violations, thus making the policy valid as 
 to those particular violations. 
 
 Failure to Inquire. There has been some endeavor to hold 
 that failure to inquire of the insured if there is any violation 
 of any of the conditions of the policy is a waiver of such 
 violation as may exist at the inception of the policy, but this 
 seems to be very far fetched. 
 
 Demand Upon Insured. Demand upon the insured after a 
 loss, whether for the premium or for some action on his part, 
 with knowledge of a defense to his claim, is or may prove to 
 be a Avaiver thereof. 
 
 Denial of Liability. A general denial of liability under a 
 policy gives the insured immediate right of action at law to 
 recover the amount of loss without compliance with the con- 
 ditions of the policy as to the filing of proofs, etc. 
 
 A Word of Caution. It will be seen from the foregoing 
 that care should be exercised by the agent that no action of 
 his shall jeopardize any of the rights of his Companies. He 
 is given broad latitude in drawing forms and making en- 
 dorsements that will maintain the policy as a valid contract, 
 but when a fire occurs the agent should consider that a 
 proper conception of his duty to his Company will not per- 
 mit him to take any action that will waive any of the 
 Company's rights, no matter how trivial. The agent who 
 does so knowingly is false to his duty, disloyal to his Com- 
 pany, and untrue to the high standards that have maintained 
 the American Agency System. 
 
CHAPTER X 
 
 SELECTION AND INSPECTION 
 
 Selection — Principles of Underwriting — Law of Av- 
 erage — Moral Hazard — Temperamental Hazard — 
 Physical Hazard — Heating — Chimneys — Lighting 
 — Gas — Acetylene and Gasoline — ICerosene Oil 
 Lamps — Electricity — Power — Gas and Gasoline 
 Engines — Machinery — Housekeeping — Watch- 
 man — Exposure. 
 
 The responsible and conscientious agent will not knowingly 
 commit his company on a risk of doubtful character; there- 
 fore, where a doubt exists regarding the per- 
 Selection sonal attributes of the proposed insured, and 
 
 his trustworthiness, it is wise to avoid insur- 
 ing him. Likewise, if the physical hazards are extreme, either 
 structurally, in processes, or by reason of poor care, the risk 
 is one to avoid at least until it is submitted to and approved 
 by the company or one of its field men. 
 
 In order to know what business is likely to prove profitable 
 the agent should have some understanding of the primary 
 
 rules which govern underwriting. These are 
 Principles of not so hard to define, but in their practical 
 Underwriting application to the daily questions that arise in 
 
 accepting or declining business lie all the 
 problems of the underwriter, and here is where judgment, ex- 
 perience, information and *^ horse sense'' count for so much. 
 
 The systematic application of the law of average is the 
 foundation stone of underwriting. In any such system that 
 which is unusual or abnormal is likely to dis- 
 Law of turb the balancing of the various elements. As 
 
 Average applied to insurance this leads to the conclu- 
 
 sion that risks which are average in character 
 are likely to produce average results, and in proportion 
 as they depart from the average the more likely are 
 they to upset the system. This is well illustrated in 
 the operations of life companies who decline to insure 
 
 119 
 
130 THE AGENTS KEY TO FIRE INSURANCE 
 
 those who do not measure up to a certain fixed standard. It 
 is because of this principle that abnormal or unknown hazards 
 or unusual conditions, not of the customary, ordinary, 
 average character, are avoided so far as possible by j^ood 
 underwriters. Risks which are better than average are natu- 
 rally to be sought, but when below standard they should be 
 written cautiously and for small lines if at all. The question 
 of determining whether or not a risk is aver- 
 Average age is considered in relation to the class where- 
 
 Risk in it falls, both as to moral and physical haz- 
 
 ard. A. standard for dwellings would not be 
 applicable to stores or machine shops; likewise ownership, 
 construction and encumbrances satisfactory as to one class 
 would not be as to all classes. ^* Average for the class" is a 
 term in common use among underwriters, and carries its own 
 definition. For example, it is not unusual to find frame dwell- 
 ing properties encumbered for more than 50% of their value, 
 and in well settled localities these would usually be con- 
 sidered average dwelling risks; but a country grist mill 
 equally encumbered would not be usual. Soda fountain 
 fixtures are so often chattel mortgaged to the manufacturer 
 that it is usual to the class, but a clothing or similar stock 
 chattel mortgaged is unusual and as a rule is a risk to be 
 avoided. 
 
 What is true as to risks is also true as to lines, for these 
 need to be average in amount since an abnormal 
 
 line may mean an abnormal loss; they vary in 
 Average amount with the class and character of risk, 
 
 Lines large amounts being average lines in one case 
 
 or class while small amounts are in others. As 
 an example of these extremes may be cited the fireproof 
 warehouse and the frame planing mill with boiler inside. 
 
 When applying this question of average to the writings of 
 individual companies, the broad principles are alike, but the 
 underwriting practices of companies differ radically in many 
 ways. What is abnormal for one is normal for another. A 
 jumbo line for one is an average line for another. Some 
 companies seek lines on a given class which other companies 
 decline altogether. A company's policy in the general ac- 
 ceptance of business is its individual system for obtaining an 
 average, based, usually, upon its individual experience; if it 
 writes all classes, then as to classes nothing is unusual or ab- 
 normal, and the problem of its underwriters then beeonies 
 that of escaping so far as possible risks that are abnormal or 
 
SELECTION AND INSPECTION 121 
 
 unusual within the individual classes wherein they fall, 
 whether from moral or physical standpoint. 
 
 It would be vain to think it possible that so short an ex- 
 position of the principles of underwriting could cover a sub- 
 ject of such importance and complexity; all that is sought is 
 to give an indication of their nature sufficient to serve in 
 some measure as a guide toward the paths of knowledge. 
 
 It is not to be expected that an agent can do all of the 
 underwriting for each of the companies which he represents, 
 
 whether in the selection of risks or the fixing 
 Agent's of lines; but his power to bind his company 
 
 Underwriting is so broad, and the length of time which may 
 
 elapse before a line he reports can be passed 
 on at the company 's office is often so long, that it is necessary 
 for him to know in a general way what to write and for 
 what amounts, else he may commit his company for a loss 
 that should have been avoided, or for an amount far in excess 
 of the natural or average line. If he is in doubt as to the 
 company's view on any individual risk, as to either line or 
 class, he had best submit same before binding the company. 
 Brief treatment of the subjects of moral and physical hazards 
 is given here, but the individual companies represented must 
 guide the agent in fixing their own lines and in defining the 
 classes which they will write. 
 
 MORAL HAZARD 
 
 By this is meant personal character, integrity, solvency 
 and habits of life, and all that goes to make one worthy of 
 confidence. The primary rule is not to insure 
 Definition unknown persons or those about whom positive 
 information is lacking. It is a pretty difficult 
 thing for any one to say definitely * ' there is a moral hazard, ' ' 
 but there are certain conditions which general experience 
 shows are calculated to induce or lead to moral hazard. A 
 few of them may be cited by way of example: 
 
 Stores and factories that are not doing well, or that have 
 an undue quantity of shopworn, out of date, or otherwise 
 
 unsalable goods, or old-fashioned equipment; 
 What saloons, distilleries or breweries standing idle 
 
 to Avoid and unused for a long time, road houses 
 
 with an unenviable reputation; nuisances of all 
 kinds; factories that are poorly located as to transportation 
 facilities or not adapted to the kind of manufacturing done or 
 
i'Z:i TilE AGENTS KEY TO FIRE INSURANCE , 
 
 i 
 
 processes carried on or where labor troubles are frequent; 
 experimental undertakings; industries depending for profit 
 on the ownership of patents in litigation or about to expire; 
 houses in changing or deteriorating locations likely to become 
 unsuitable; country school houses inconveniently situated; 
 old-fashioned buildings used perhaps for elevators or cold 
 storage plants that find it hard to compete with modern ones ; 
 enterprises carried on by agents, such as a man operating in 
 the name of his wife or someone else; any business that is 
 "petering out." Any of these and many others that might 
 be enumerated presents abnormal conditions, and should be 
 carefully investigated before insurance thereon is accepted. 
 Where a person would profit by a fire, either in ridding him 
 of something that he does not want, or in selling to the in- 
 surance company property that is unsalable to any one else 
 at anything like the same price, then a motive is furnished 
 for having a fire, and such a risk is to be avoided unless the 
 moral hazard is beyond question, or the condition a tempo- 
 rary one. Over-insurance is considered to be one of the 
 greatest causes of the so-called moral hazard fires, and the 
 
 fixing of a proper amount of insurance is one 
 Over- of the most important duties and responsibili- 
 
 Insurance ties of the agent. A policy should never be 
 
 written for an amount in excess of the value 
 of property covered, except temporarily as in cases where a 
 building is being erected, or a stock of goods is being put in, 
 or values are increasing so rapidly that they cannot be closely 
 determined, or in similar instances. 
 
 There is another side to moral hazard which is sometimes 
 called temperamental hazard, and might perhaps be other- 
 wise termed congenital carelessness. There 
 Tempera- are some industries which have notoriously bad 
 
 mental housekeeping conditions due to a variety of 
 
 Hazard reasons, sometimes to the class of men engaged 
 
 in them or to the class of labor employed. 
 There are also certain races which seem always to live in 
 squalor, whose factories and stores are dirty and ill-kept, 
 and their homes likewise. They are careless with their heat- 
 ing and lighting appliances, their stoves, stove pipes and flues, 
 ashes and rubbish, and in many other ways, so that fires are 
 more frequent among them than among races where such 
 conditions do not exist, or at least are unusual. 
 
SELECTION. AND INSPECTION 123 
 
 A bad moral hazard is a menace not only to the property 
 owned by the individual, but also to others who may be 
 tenants in the same or' adjoining premises; 
 Omnibus that is one of the reasons why an omnibus 
 
 Risks (several tenant) occupancy is usually consid- 
 
 ered less desirable. It is difficult to make sure, 
 with the changes of tenants, that someone of an untrust- 
 worthy character will not slip in and constitute a potential 
 danger, moral, physical, or both, to the property of all the 
 tenants in the building. 
 
 Not all successful men are good moral hazards, nor all un- 
 successful or unfortunate ones bad moral hazards; personal 
 
 character counts above all. Yet sometimes a 
 Environment man essentially honest is so unlucky as to be a 
 
 poor insurance risk. There is usually some 
 underlying reason, however, in environment, or class of help 
 employed, or method of operation; and many companies, on 
 general principles, avoid insuring those who have had two or 
 more fires, except where they were unimportant, or the in- 
 sured were large owners of scattered properties. 
 
 Two Classes. There are really two classes into which moral 
 hazard as distinguished from physical hazard may be divided. 
 
 First : — That which has to do with arson, incendiarism, the 
 procuring of fires or intentional carelessness which invites 
 fires, or after the fire the making of dishonest and fraudulent 
 claims, or the increasing of a loss by active means or inten- 
 tional neglect of the property damaged. <i| 
 
 Second : — The things which are temperamental with the in- 
 sured or his surroundings or employees, that are expressed in 
 poor housekeeping, carelessness in removing rubbish, in mak- 
 ing needed repairs, in caring for protective appliances, or in 
 prohibition of smoking, and in general the neglect of main- 
 taining property in good condition and in a state of cleanli- 
 ness, particularly in those essentials which, when neglected, 
 tend to breed fires. 
 
 INSPECTION 
 
 The hazards connected with manufacturing processes, par- 
 ticularly where chemicals are used, call for specialized knowl- 
 edge, and volumes may be written without ex- 
 Physical hausting the field of inquiry. The physical 
 Hazards hazards with which every insurance man is 
 expected to be familiar are those that may be 
 termed the common hazards, viz., those connected with heat, 
 
124: THE AGENTS KEY TO FIRE INSURANCE 
 
 lig:lit and power, and conditions of housekeeping^; for tlie 
 safeguarding of these will remove the most prolific causes of 
 fires. 
 
 Heating. Boilers, furnaces, and stoves not set on legs 
 should have incombustible foundations, and should be far 
 enough from wood work, or other combustible material, so 
 that it will not scorch. The space necessary varies from 6 
 inches to 6 feet in ordinary cases. Where set on wood floors 
 without legs, a proper foundation should be provided. This 
 may consist of a layer of tin or sheet metal or asbestos over 
 the floor, covered with 4 inches of masonry set in cement 
 mortar. Hollow terra cotta is recommended, so laid as to 
 obtain a circulation of air between the top surface and the 
 floor. Brick may be used and will serve equally well if the 
 degree of heat is not too great. • Ordinary stoves and ranges, 
 set on legs on wood floors, should have tin or zinc underneath, 
 extending at least 12 inches in front and at sides of hearth 
 and not less than 4 inches elsewhere. The old-fashioned sand 
 box with 4 inches of fine sand therein is usually safe but 
 unsanitary. Stove, smoke, and heat pipes need to be insu- 
 lated from woodwork, especially where pass- 
 Pipes ing through floors or partitions. Ventilated 
 metal shields or thimbles, such as any good 
 tinsmith can make, providing an inch clearance will be 
 sufficient for the pipe from an ordinary stove, but larger 
 pipes require greater protection up to the standard of three 
 feet or more of clearance for boiler smoke flues. Smoke pipes 
 should not pass through closets or enter chimney in attic or 
 unused room, and should always be securely fastened in place 
 by wiring or metal supports or devices. Smoke pipes should 
 enter chimney horizontally, those entering vertically being 
 usually unsafe. Instead of ventilated metal shields for pro- 
 tection against excess heat, it is usually satisfactory, where 
 feasible, to use metal lath and three-quarter inch of good 
 cement plaster, or a layer of plaster board covered with 
 metal, or cellular asbestos. All shields should have an air 
 space between the heat and the surface protected. 
 
 Hot air pipes usually need a minimum of six inches clear- 
 ance from unprotected woodwork, or half that distance if in- 
 sulated by a ventilated metal shield; a lesser distance may 
 be unsafe; they should have a ventilated thimble where pass- 
 ing through floor or partition. 
 
SELECTION AND INSPECTION 125 
 
 Hot air blowers should be kept clcau, well oiled and run- 
 ning true, and if in a separate room it should be kept free 
 from rubbish or combustible material. The 
 Blowers intake should be supplied by air from outside 
 
 through a screened opening. A fire occurring 
 in the vicinity of the blower may be distributed to the entire 
 building; hence the necessity for care and cleanliness. 
 
 Steam or hot water pipes should be securely hung on metal 
 supports and kept at least 1 inch from woodwork. Where 
 
 passing through floor or partition they should 
 Steam and be provided with a metal collar or bushing one 
 Hot Water inch larger in diameter than the pipe. All 
 Pipes combustible material should be kept away from 
 
 pipes, and in dry rooms they should be screened 
 so that nothing may fall on them which might ignite. Many 
 people laugh at the danger of steam pipes touching wood- 
 work, and do not believe there is any. There are, however, 
 many cases on record where the wood has gradually charred 
 and carbonized, and finally taken fire. This occurs more 
 frequently in dry rooms than in places where there is a circu- 
 lation of air. Steam and hot water pipe coverings should 
 be of incombustible material; hair felt is not suitable and 
 probably asbestos is the best of all coverings made. 
 
 Chimneys. Wherever possible, these should be built from 
 the ground and support their weight on their own foundations, 
 since those so built are less liable to crack. The exception to 
 this is where no stable foundation can be secured. Those 
 resting on floors, beams or brackets may be safe, but are 
 more likely to go wrong, while those hung from wooden raft- 
 ers are usually dangerous. A standard chimney for ordinary 
 uses is one built of one course of brick on side, i. e., flat, 
 
 and lined with 1-inch hard burned terra cotta 
 Standard or fire clay flue lining set in cement mortar 
 
 with joints struck smooth. If not lined, the 
 walls should be 8 inches thick instead of 4 inches. If built 
 of stone the walls should be not less than 8 inches thick and 
 lined. Cobble stone chimneys should be not less than 12 
 inches thick and lined. Tile, clay, or concrete block chimneys 
 are unsafe, since they are liable to crack. Reinforced con- 
 crete chimneys with standard flue lining are permissible, aliBO 
 
126 THE AGENTS KEY TO FIRE INSURANCE 
 
 chimneys built of reinforced concrete blocks properly made 
 (flues lined), but no material is so suitable, 
 
 Concrete durable, and safe as brick. Chimneys should 
 
 be kept in good repair and properly pointed up, 
 
 and should be cleaned once a year, or oftener if required by 
 
 the fuel used. 
 
 Lighting. The chief dangers from lighting by ordinary city 
 gas lie in the possibility of the open flame coming in contact 
 
 with combustible material. No gas bracket 
 Q-aa should be closer than 3 feet to the ceiling, or 
 
 18 inches if latter is protected with ventilated 
 shield. Stationary brackets are preferable, but if swinging 
 fixtures are necessary they should be arranged so that contact 
 with woodwork or other combustible material is impossible. 
 This may be accomplished by suitable stops, or, sometimes, 
 by a globe or wire cage. Protection around the open flame is 
 desirable in dwellings and stores, where window hangings may 
 otherwise blow against the flame. Rubber tubing may be 
 used for lamps; but stoves, glue pots, brazing devices, etc., 
 should have only metal connections and be set on metal, and 
 should be fastened in place, particularly those standing on 
 the floor where they are likely to be moved slightly in sweep- 
 ing, and the joints become loose. 
 
 Such systems should only be installed where the devices are 
 approved by the National Board, and are put in place by 
 
 competent mechanics in accordance with the 
 Acetylene manufacturers' instructions. The same dan- 
 and gers exist as with gas jets, and the same pre- 
 
 Gasoline cautions should be taken. The chief danger in 
 
 the use of these systems lies in having gasoline 
 and carbide about, with all the possibilities that follow in 
 their train. It takes intelligence and some experience to 
 properly operate these systems, particularly when something 
 goes wrong with them, and they are too often left in the care 
 of servants. An astonishing number of fires occur through 
 hunting with an open light or matches for a leak in the gas 
 pipe. Every householder will find it useful to have a portable 
 electric light for emergencies of this kind, and for con- 
 venience when other lighting systems fail. 
 
SELECTION AND INSPECTION 127 
 
 Metal lamps and lanterns are preferable to those of glass, 
 since the latter may crack or may fall and break. Lamps 
 
 should be filled in daylight only. The same 
 Kerosene protection is necessary as with gas jets, particu- 
 Lamps larly overhead. Hanging screws sometimes 
 
 heat and pull out. Central draft lamps are 
 usually dangerous to use, and, if installed, great care should 
 be given to keep them clean, particularly inside the burner, 
 and the wick well trimmed. 
 
 This is the safest form of lighting when properly installed 
 and maintained in accordance with the National Code. The 
 size of wires, the spacing, the load, the fuses 
 Electricity and cut outs, switches, etc., call for the serv- 
 ices of an expert. When inspection discloses 
 the use of wooden cleats, or when wires are hung on nails or 
 other than approved supports, or pass through walls or par- 
 titions or around corners without proper bushing, or if insu- 
 lation is worn off or abraded, then it is desirable to have the 
 equipment gone over, and conditions corrected that are 
 likely to prove unsafe if neglected. 
 
 Power. High pressure boilers for making steam to run en- 
 gines that furnish power use more fuel, generate more heat 
 and need greater clearances and more safeguards than low 
 pressure heating boilers. There should be as little combust- 
 ible material in the boiler room as possible; 
 Boilers sweepings and refuse should not be kept there, 
 
 but burned at once or stored outside, preferably 
 in a fireproof bin cut off from the boiler room. Where wood 
 is burned, the boiler stack should have an approved spark 
 arrester. Soft coal is liable to spontaneous combustion and 
 should not be kept in large quantities in or too near building. 
 
 Gravity feed is to be avoided. Mufflers 
 
 Gas and should be located at least 12 inches from wood- 
 
 Grasoline work, and the exhaust pipe extended outside 
 
 Engines and kept at least 6 inches from woodwork; it 
 
 should be supported firmly in place. 
 
 The hazard of running machinery comes chiefly from the 
 
 danger of overheated bearings, and from oil and waste, of 
 
 combustible material, being allowed to ac- 
 
 Machinery cumulate. Shafting should be well hung and 
 
 run true, and bearings self oiling and kept 
 
 clean. Where machines make combustible litter, such as 
 
128 TPIE AGENTS KEY TO FIRE INSURANCE 
 
 planers, buffers, etc., a blower system should be installed 
 where feasible, and the waste discharged outside away from 
 the building, or into a fireproof vault. 
 
 HOUSEKEEPING 
 
 Care and cleanliness are the * * firgt aids ' ' to fire prevention. 
 The finest construction, the best installed equipments, the 
 
 most approved protective devices, all fail un- 
 Care and less they are maintained in good, workable con- 
 
 Cleanliness dition, and the premises free from dirt and 
 
 rubbish. Carelessness is the cause of more fire 
 losses than poor construction, non-standard equipment, or 
 lack of protection. The poor physical risk in the hands of 
 good housekeepers is often a better fire risk than one that 
 is fine physically but poorly managed. The type of man who 
 goes all over his premises before leaving them at night, and 
 who never retires without looking at the furnace to see that 
 everything is all right, is the type that has few fires. Among 
 the things which may be specifically referred to in connec- 
 tion with good housekeeping are the following: 
 
 Ashes: — Should be kept in metal cans — never in, on or against 
 wood. 
 
 Rubbish: — Should not be allowed to accumulate. Papers, 
 packing materials, broken things, empty cases and need- 
 less combustible articles should be removed daily. 
 
 Oily Waste and Rags: — These are liable to ignite spontane- 
 ously, and should never be thrown in corners or closets, 
 or left lying on floor; if kept in cans, the latter should 
 be of approved metal and be emptied daily. 
 
 Waste (Ordinary) : — Should be kept in approved metal cans. 
 
 Oils and Grease: — Only a working supply should be kept in- 
 side main buildings, and should have approved metal 
 pans to catch drippings. These should be cleaned fre- 
 quently. 
 
 Matches: — The ordinary parlor match is dangerous. Many 
 fires are caused by its use; women and children are 
 often badly burned by match heads flying off and catching 
 in clothes. The so-called safety match — striking on the 
 box — is the best type for use in house, store or factory. 
 
SELECTION AND INSPECTION 139 
 
 Protective Equipment: — Oftentimes valuable appliances are 
 installed which would be of great aid in putting out a 
 fire, but are so poorly cared for that when the emergency 
 arises they are practically useless. An empty fire pail 
 is worse than none. Sand and fire pails should be kept 
 full, chemical extinguishers recharged as per directions, 
 hose examined periodically to see that it is in good condi- 
 tion for use, fire doors maintained in free working order, 
 tanks kept full, fire pumps tested regularly, and the 
 sprinkler equipment maintained in full working order in 
 accordance with directions that are usually furnished 
 when same is installed. 
 
 Watchman. The only way to be reasonably sure that the 
 watchman makes his rounds regularly is to have a proper 
 clock installed, and to check up the records every day to see 
 that the punching of the different stations is recorded in due 
 order and at proper times. 
 
 Inspections. The best way to insure the care of protective 
 devices is to have a regular time for inspections, and to hold 
 responsible the man whose dutj'^ it is to make them. 
 
 To the one who wishes to study in detail the various mat- 
 ters that have been touched upon herein, the following publi- 
 cations are recommended for perusal : 
 
 The National Board Building Code. 
 The National Electrical Code. 
 
 Standards of various kinds published by the National Board 
 of Fire Underwriters, New York City. 
 National Fire Protection Association ''Field Practice." 
 
 EXPOSURE 
 
 A risk is usually considered unexposed if the nearest build- 
 ing, structure or combustible property that may make a fire 
 
 that is other than trivial, is 100 feet or more 
 Limit of distant. This does not mark the limit of dan- 
 
 Danger ger, (sparks or brands from a fire have been 
 
 known to carry several miles and set fire to a 
 wooden roof, although this is the exception that proves the 
 rule), and many things must be taken into consideration in 
 fixing a safe limit in specific cases; but 100 feet is generally 
 accepted as a safe distance on the average. The degree of 
 safety depends somewhat on the construction of the building 
 
130 THE AGENTS KEY TO FIRE INSURANCE 
 
 exposed, and on the construction, area and contents of the 
 exposure. A large area frame building, or 
 Degree of brick building with frame roof, filled with 
 Safety highly combustible contents such as hay, fur- 
 
 niture, etc., is an unsafe exposure at a distance 
 of 100 feet, particularly if the exposed building has a wooden 
 roof. As a rule the distance apart may be decreased with 
 safety in ratio with the improvement in construction, and, 
 also, in ratio with contents which burn either in 
 Distance a flash without sustaining combustion, such as 
 
 millinery stocks, or which burn slowly, such as 
 piece dry goods. Exposures are naturally more serious when 
 there is no protection against fire, and the distance apart 
 may be decreased with safety in ratio with the degree of pro- 
 tection. 
 
 It is a safe rule on the average for the agent to decline any 
 business located within 100 feet of a risk that his company 
 has refused to write, at least without first submitting it for 
 approval. Rating authorities are giving greater attention to 
 exposure than ever before, for it is realized more than ever 
 how much exposure contributes to the fire cost of the country. 
 As congested values increase the losses due to exposure are 
 bound to increase, for all fires that spread from the building 
 where they originate, including conflagrations, are chargeable 
 to exposure. More than one-eighth of the entire fire insur- 
 ance losses of the United States are due to exposure fires. 
 
CHAPTER XI 
 
 RATES AND RATING METHODS 
 
 Minimum Rates — Spixific Rates — Flat Rates — Co- 
 insurance Rates — Blanket Rates — Average Rates 
 Floating Rates — Judgment Rates — Schedule 
 Rates — Analysis of Rates. 
 
 The key note of the insurance business is the rate. All 
 other things revolve around that. It is the price of the goods 
 
 for sale and familiarity with rates and the 
 Rates methods by which they are made is desirable 
 
 for all agents and a prime necessity for those 
 in the larger centers. 
 
 Rates are commonly designated by the following names: — 
 
 Minimimi rates, being those made for and applying to all 
 risks of a given class, such as dwellings, where no specific 
 rate is fixed. 
 
 Specific rates, being those made for and applying to a given 
 risk or property, such as "Building, 24 Main St." 
 
 Flat rates, being those that do not require the use of coin- 
 surance. 
 
 Coinsurance rates, being those requiring the use of coin- 
 surance. 
 
 Blanket rates, sometimes called Average rates, being those 
 applying over two or more properties, or over two or more 
 subjects of insurance, which underwriting rules or customs 
 commonly require to be separately insured, whereas such 
 rates are made so that these properties may be written in 
 one item without separation. (See Blanket Forms.) 
 
 Floating Rates, being those applying to property wherever 
 located within the general confines stated, such as within a 
 given State. 
 
 Judgment and Schedule Rates. Rates are of two general 
 kinds, viz., JUDGMENT and SCHEDULE. 
 
 131 
 
132 THE AGENTS KEY TO FIRE INSURANCE 
 
 Judgment rates are those made without the use of any 
 measure beyond that which the experience, intelligence and 
 good sense of the rate maker provides. Years 
 Judgment of observation and analysis, and the impres- 
 Rates sions constantly received in the daily study of 
 
 construction, hazards, protection and environ- 
 ment, give to the underwriter a training which enables him 
 in a practical way to judge what rate a given risk should 
 bear. Many, particularly of the older school of underwriters, 
 regret the passing away of rate making by judgment and 
 experience, feeling that the intuitive sense of 
 Value of the underwriter, born of long years of train- 
 
 Experience ing, more accurately measures the worth of a 
 risk than the literal application of rate mak- 
 ing schedules. But the great growth in property values, the 
 complexities of our modern mercantile and manufacturing 
 industries, the congestion of our cities and 
 Schedule towns, the different methods of fire protection, 
 
 Rates the wealth of building materials formerly un- 
 
 known, the great development in mechanics, 
 in chemistry and in all the arts and sciences, has rendered 
 impracticable the making of rates by judgment alone, and 
 this evolution of general business conditions has brought 
 about rate making by schedule, which method is rapidly be- 
 coming universal throughout the United States. The sched- 
 ules used are not in themselves based upon demonstrated 
 costs, but their base rates, charges and credits are founded 
 upon the judgment and experience of many trained under- 
 writers whose minds have met in the adoption of the various 
 items of said schedules, which are probably as accurate as it 
 is possible to produce with the information at present avail- 
 able. These schedules are really measures for averaging the 
 rates in a given class, and for this purpose are superior to 
 judgment ratings, just as a tape line is better than pacing 
 to measure distance. 
 
 Two general systems of schedule ratings are in use in 
 the United States to-day: The Universal in the East, and 
 
 the Analytic or Dean in the West. Each starts 
 Schedule from a basis rate and makes charges or gives 
 
 Systems credits for the various items that go to make 
 
 up the schedule applying to the particular risk 
 rated. The Universal, in the main, adds flat or constant 
 charges, for example, 10 cents for defective flue; whereas 
 the Dean adds a percentage of the basis rate, for example, 
 
RATES AND RATING METHODS 133 \ 
 
 10 per cent, for defective flue. Each has a variety of sched- j 
 
 ules or of occupancy charges adapted for use in rating the . 
 
 various classes of property, it having been found that no j 
 
 one schedule can be devised that is practical for rating i 
 
 any and all kinds of risks. ] 
 
 Analysis of Rates. The agent in analyzing a rate on a ! 
 
 given risk first obtains a copy of the schedule used and the i 
 
 •'make-up" of the rate, by which is meant the j 
 
 Charges various charges and credits which produce the ! 
 
 and Credits final rate. He first determines whether the \ 
 
 proper schedule has been used; then he should ■ 
 
 learn whether the charges are properly made and if credit ! 
 
 is given in the rate for everything contained in the risk for ! 
 
 which credit is provided in the schedule; next he should see i 
 
 whether improvements can be made that will result either in j 
 
 eliminating charges, or result in further credits being given, i 
 
 Charges for condition or housekeeping should come in for ! 
 
 special attention as they may usually be removed, and their \ 
 
 correction makes for the safety of the risk. It is well for i 
 
 the agent to remember that his renewal commissions depend ; 
 
 on keeping the property in existence. ■ 
 
 Sometimes a judgment rate exists on a risk, or only a mini- 
 mum rate applies, and it may be found by inspection and the i 
 
 experimental application of the proper sched- 
 
 Which ule that if a rate is made thereunder it will ; 
 
 to Apply be lower than the judgment or the minimum | 
 
 rate, in which case it is obviously to the ad- | 
 
 vantage of the insured to apply for the promulgation of a i 
 
 schedule rate. The agent should remember that it is his j 
 
 duty to secure for his client by every legitimate means the j 
 
 lowest rate possible, and that his competitors j 
 
 Rate always have an eye out for some way of re- j 
 
 Reductions ducing his client's rate and using this as a \ 
 
 lever for prying the account away from him. A '■ 
 
 reduction in rate usually makes a louder noise than the note ■ 
 
 of friendship, and the agent who is most successful in legiti- \ 
 
 mately saving money for his clients, without the sacrifice of \ 
 
 proper coverage, is likely to be the one who has the biggest I 
 
 expiration register. A thorough knowledge of ! 
 
 Knowledge of rates and rate-making schedules — not merely j 
 
 Rate Making a superficial one — ^vastly increases the equip- ■ 
 
 ment for success in soliciting and holding \ 
 
 business, and giving satisfactory service. ] 
 
CHAPTER XII 
 
 CANCELLATION AND SUBSTITUTION 
 
 Policy Ordered Cancelled — Conditional Order — 
 Avoid Reinstatement — Void Policy — Notice of 
 Cancellation — Legal Notice and Tender — Return 
 Premium Without Deduction — Notice to Payee — 
 Notice to Mortgagee — Substitution or Replace- 
 ment — Binders — Cancellation Notices (Forms). 
 
 CANCELLATIONS. 
 
 An agent receiving instructions from his company to cancel 
 a i3olicy must use every reasonable effort to promptly effect 
 cancellation; and failure to make such effort renders him 
 personally liable for any loss which the company sustains 
 because of his neglect. 
 
 Sometimes a company asks cancellation con- 
 Conditional ditional upon certain alleged facts proving to 
 Order be true, or certain specified things taking place. 
 
 In such cases the agent may render himself 
 personally liable if he does not use reasonable diligence to 
 ascertain the truth, or the occurrence of the specified hap- 
 penings. 
 
 Again, the company may instruct agent not 
 Avoid to receive the premium on a given policy, or 
 
 Reinstating not to endorse or correct it, or not to grant 
 further permits, as, for example, a vacancy 
 permit. Such instruction may be with a view of avoiding any 
 act on the part of an agent, or the bringing about of a condi- 
 tion, that would continue a policy in force or reinstate one 
 that is void. 
 
 Where a policy is rendered void by a viola- 
 Void tion of some condition (for example, vacancy 
 Policy beyond the length of time permitted), and such 
 violation comes to the knowledge of the agent, 
 there is danger that it may be claimed the violation was 
 waived if he takes no action. Hence, in such cases, unless 
 permission or waiver is to be endorsed on the policy, or 
 
 134 
 
CANCEIJ-ATION AND SUBSTITUTION lo5 
 
 would be if presented, the policy should be recalled, and the 
 full amount of unearned premium from date of violation re- 
 turned to the insured, thus avoiding all possibility of trouble 
 or embarrassment in case fire occurs. 
 
 When recalling a void policy the ordinary notice of cancel- 
 lation should not be served, for to do so might be held to re- 
 vive the policy during the five days covered by said notice. 
 Notice of recall may be in form similar to the one appended 
 hereto. 
 
 Notice of Cancellation. The policy provides that either the 
 insured or the company may cancel it by giving notice in ac- 
 cordance with its conditions. The agent may give or receive 
 notice personally or by mail, or through a representative, such 
 as an employee or solicitor customarily acting for him in such 
 matters, or specially instructed or authorized. Likewise the 
 insured may give or receive notice personally, or by mail, 
 or through a representative such as an employee, agent or 
 broker. The important thing to be considered here is can- 
 cellation on behalf of the company, and it must always be 
 borne in mind that to be sure of a legal cancellation the com- 
 pany must be in position to prove that notice 
 Proof of of its election to cancel was received by the in- 
 
 Notice sured or his authorized representative. Such 
 
 Necessary representative must have the authority to ac- 
 cept notice of cancellation on behalf of the in- 
 sured else it will not be legal notice to the insured. If a paid 
 employee is in the habit of ordering and cancelling insurance, 
 it is nsuallj'^ sufiicient evidence that he is au- 
 Receipt by thorized by his employer to take such action. 
 Employee and this is true in a less degree of an agent of 
 or Broker the insured, such as one handling his real estate 
 or customarily acting for him in his absence. 
 The broker is sometimes authorized to secure, — but not to 
 cancel — insurance, and the practice of sending notice to the 
 broker may result in cancellation, but cannot be depended 
 upon to relieve either the company of its liability, or the 
 agent of his responsibility for cancellation. 
 
 The best way to effect cancellation is to see the insured, 
 get him to acknowledge the cancellation and surrender the 
 
 policy, but if this cannot be done the conditions 
 Legal of the policy (N. Y. Standard) require that the 
 
 Methods insured be given five days' notice, and the 
 
 policy is not cancelled until five days after such 
 notice is received by the insured, or his authorized representa- 
 
136 THE AGENTS KEY TO FIRE INSURANCE 
 
 tive, unless in the meantime he surrenders it. If notice is 
 to be given it should always be in writing and unequivocal in 
 its terms. This notice may be delivered by hand or sent by 
 registered mail. It should be addressed to the insured at his 
 
 place of business, or an address where he is 
 Address known to receive mail, or to his agent if he is 
 
 represented by one, or, if deemed proper and 
 necessary, to the insured in care of his broker. A duplicate 
 or facsimile cop^ of the notice should be kept by the agent. 
 If notice is delivered, memorandum should be made showing 
 the date and by whom the delivery is effected and by whom 
 it is received. If sent by mail, the letter should be registered 
 and copy of the notice marked with the date and hour of 
 
 mailing, and kept with the post oflSce receipt 
 Registered and the registry return card when it comes 
 Letter back. The envelope should bear the imprint 
 
 of the agent issuing the policy, or representing 
 the company, or the imprint of the company whose policy is 
 being cancelled. This is imperative by reason of court de- 
 cisions. 
 
 Since notice to be effective must reach the insured, or one 
 authorized to act for him, it is important to have him receive 
 
 the registered communication, and that the 
 Proof of registry return card bear his signature or that 
 
 Receipt of his authorized representative. Therefore, it 
 
 is recommended that the envelope be marked 
 ''Deliver to addressee only — ^receipt desired." If so marked, 
 the post office rules require delivery to none other than the 
 addressee. The papers usually required by a company to 
 constitute a voucher for a cancellation by notice are a fac- 
 simile copy of the notice sent, the post office receipt for 
 registration and the registry return card. The card should 
 bear the signature of the insured or his agent or representa- 
 tive. If the insured is a corporation it should bear the signa- 
 ture of such corporation with the name of the one signing 
 therefor. 
 
 Where the premium has not been paid no 
 Premium action is necessary beyond the serving of 
 
 Paid and ' notice. If the policy is in the old New York 
 Unpaid Standard form and the premium has been paid 
 
 it is rarely safe to await the policy before 
 returning the unearned premium, even though it is custom- 
 arily surrendered promptly and return premium due thereon 
 is paid, for it has been held that the cancellation is not 
 
CANCELLATION AND SUBSTITUTION 137 
 
 effective until the unearned premium has been actually paid 
 or tendered to the insured. For that reason it is wise to send 
 
 with the notice the amount of unearned premi- 
 Returning um due. As a matter of convenience a check 
 Unearned is often enclosed with the notice of cancella- 
 Premimn tion and if the insured endorses and cashes 
 
 same, that is acknowledgment and acceptance 
 by him of the notice of cancellation and is effective. 
 
 To be absolutely certain of effecting and proving cancella- 
 tion if policy is in the old New York Standard form, a 
 written notice of cancellation should be handed personally 
 
 to the insured, or his authorized representa- 
 Legal tive, in the presence of one or more witnesses, 
 
 Notice accompanied by the unearned premium in 
 
 and Tender cash that is legal tender of the United States, 
 
 as the insured would have a right to decline 
 the money and not recognize the tender if it were otherwise 
 than legal tender so designated by law. Legal tender consists 
 of United States treasury notes, gold coin of the denomina- 
 tion of $1.00 or over, silver dollars, and subsidiary coin for a 
 limited amount. It is best to use the least number of pieces 
 of money necessary to make up the amount of the tender, 
 therefore, to use gold coin or silver dollars for all but the 
 fractional parts of a dollar, for which silver 50c and 25c 
 pieces, dimes, nickels and pennies should be used in the least 
 number necessary to make up the exact amount. By avoid- 
 ing the use of paper money all doubt is eliminated as to 
 whether the money is legal tender (as in the case of treasury 
 notes) or whether it is other paper money of similar appear- 
 ance such as silver certificates, gold Certificates and national 
 bank notes, none of which is legal tender. The notice and 
 
 tender should be handed to the insured or his 
 Service authorized representative accompanied by a 
 
 of Notice statement as to the nature and purpose of the 
 
 and Tender communication and tender and if possible the 
 
 copy of notice should be read to him. No re- 
 ceipt for the money should be demanded. The notice and 
 money once having been delivered or offered should under 
 no circumstances be taken back. If the insured declines to 
 receive the notice or the tender, either or both should be laid 
 in as convenient a place for him as possible and not be taken 
 back even though the insured goes away, leaving the money 
 or the notice untouched. 
 
 The New New York Standard form obviates the difficulty 
 
138 THE AGENTS KEY TO FIRE INSURANCE 
 
 regarding the return of une«irned premiuui at the time of 
 giving notice, for it provides that the policy shall be can- 
 celled by giving the insured 5 days' notice, ''with or without 
 tender of the excess of paid premium above the pro rata 
 premium for the expired time." But it does require that 
 said excess or unearned premium if not tendered shall be 
 refunded on demand. 
 
 Return Premium Without Deduction. Return of the un- 
 earned premium direct to the insured, whether figured pro 
 rata or short rate, must be without deduction of brokerage 
 or agent's commission. When the unearned premium is re- 
 turned through the medium of the broker, it is customary to 
 deduct the brokerage, figuring it in the same percentage as 
 the brokerage on the original premium (that is, 10%, 15% 
 or other percentage), but it would be unsafe to deduct this 
 brokerage if there is likely to be any trouble over the ef- 
 fectiveness of the cancellation and the prompt surrender of 
 the policy. 
 
 Notice to Payee. There is no direct provision in the policy 
 requiring notice to be given the payee under a simple loss 
 payable clause reading, ''Loss, if any, payable to 
 
 as interest (or as mortgagee interest) may appear." 
 
 Courtesy and fairness, as well as custom, do, however, de- 
 mand the giving of a five days' notice to the payee, and it is 
 quite possible that the courts would hold that the cancellation 
 of a policy was not effective if notice to the payee was not 
 given. 
 
 Notice to Mortgagee. If a mortgagee clause is attached, 
 then notice to the mortgagee, as well as to the insured, be- 
 comes necessary to terminate the company's 
 Cancellation liability, for the mortgagee clause in its terms 
 is a separate contract requiring a separate no- 
 tice. There are two proAdsions therein: 
 
 A. For the termination of the mortgagee interest by can- 
 cellation of the policy. 
 
 B. For the cancellation of the mortgagee clause itself. 
 In either case ten days' notice instead of five is the require- 
 ment on the clauses most widely used. Usually notice of 
 cancellation of a policy will serve to terminate the interest of 
 the mortgagee, because it is usually followed by the surren- 
 der of the policy and the substitution of other insurance 
 therefor, but the safest notice to give is for the cancellation 
 
CANCELLATION AND SUBSTITUTION 139 
 
 of the mortgagee clause itself. Such notice does not under 
 ordinary circumstances require to be accompanied by any 
 tender of unearned premium and its sufficiency does not de- 
 pend on the cancellation of the policy. Indeed, where the 
 insured cannot always be located, or difficulty is experienced 
 in serving him notice, sometimes the burden may be thrown 
 upon the mortgagee by cancelling the mortgagee clause, thus 
 inducing him to insist, as he has a right to do under his 
 mortgage, that the mortgagor (insured) secure other satis- 
 factory insurance payable to him (mortgagee) in the event 
 of loss. 
 
 Substitution or Replacement. When a policy of a company 
 is to be cancelled, unless the risk is deemed undesirable to 
 handle, the agent will usually wish to replace the policy with 
 that of another company. The simple act of binding another 
 company for the same amount on the same risk does not of 
 itself relieve the first company of its liabili ty; the insured 
 must ratify the transaction before it becomes effective. 
 
 Nevertheless, when a company orders its policy cancelled 
 it is customary for the agent to bind its line in another com- 
 pany, but this act should be promptly followed 
 Notice to by notification to the insured of the one com- 
 
 Insured pany's election to cancel and of the substitu- 
 
 tion of another's binder replacing it; if the 
 insured accepts the substitution that act operates to relieve 
 the first company of its liability: Any delay in notification 
 is dangerous, for if fire occurs after the second company is 
 binding and before the insured has accepted substitution, and 
 before the five days following notice of cancellation have 
 elapsed, then in most jurisdictions he may elect which policy 
 he shall hold and which release, but he must do one or the 
 other — he cannot hold both. 
 
 Therefore, when the liability of one company is to be can- 
 celled and another company is to be made binding by the 
 agent in its place, it is best to communicate with the insured 
 personally and secure his authorization for the substitution, 
 then taking up the first company 's policy or binder, and leav- 
 ing in its place the policy or binder of the second company, 
 thus protecting alike the company cancelling and the insured. 
 
 If loss is made payable to a mortgagee, sub- 
 Notice to stitution or replacement even though effective 
 Mortgagee as to the insui'ed is not as to such mortgagee 
 unless consented to by him. 
 
140 THE AGENTS KEY TO FIRE INSURANCE 
 
 Cancellation of Binders. If the binder contains no pro- 
 vision as to the number of days notice required for cancella- 
 tion, it is probable that the courts would hold that five days' 
 notice is necessary, and that if a mortgagee is named on the 
 binder, ten days' notice to him would be required. Where 
 a binder is issued for the renewal of a policy which was made 
 payable to a mortgagee, but for any reason the renewing 
 policy is not issued until after date of inception, notice to 
 mortgagee of cancellation of binder would probably be re- 
 quired, even though such binder made no mention of the 
 mortgagee. 
 
 Oftentimes, binders are issued subject to cancellation on 
 one day's notice, in which case care should be taken not to 
 give the usual five days' notice, which would have the effect 
 of extending the binder for five days after notice is received, 
 instead of one day. 
 
 Insurance companies have not adopted any uniform notice 
 of cancellation and each usually has its individual forms 
 which it prefers to have its agents use. The following are 
 simple forms which will fulfil legal requirements for use 
 as indicated thereon. 
 
 Cancellation Notice — where premium has been paid 
 
 (Old New York Standard Policy) 
 Dear Sir: 
 
 This company hereby notifies you that it elects to cancel 
 
 its Policy No in accordance with the terms and 
 
 conditions therein provided. 
 
 Said policy was issued to you through its agency at 
 
 to cover on 
 
 located 
 
 Herewith we hand you $. . . ^ being an amount not less 
 
 than the pro rata unearned premium for the unexpired term 
 of said policy. 
 
 In accordance with the conditions referred to all liability 
 of this Company under this policy will cease and determine 
 at the expiration of five days from the receipt by you hereof, 
 
CANCELLATION AND SUBSTITUTION 141 \ 
 
 i 
 
 and we request that you kindly return to us the cancelled i 
 
 policy for our files. ' 
 
 Yours very truly, , 
 
 Enc. Insurance Company. 
 
 Agent. ' 
 
 Cancellation Notice — where premium is unpaid j 
 
 (Old or New N. Y. Standard Policy) ] 
 
 j 
 
 For use where it is not desired to retain the line. ] 
 
 Dear Sir: j 
 
 This company hereby notifies you that it elects to cancel ] 
 
 its Policy No in accordance with the terms and ! 
 
 conditions therein provided. j 
 
 Said policy was issued to you through its agency at : 
 
 to cover on ! 
 
 located 
 
 In accordance with the conditions referred to all liability i 
 
 of this company under this policy will cease and determine j 
 
 at the expiration of five days from the receipt by you hereof, i 
 
 and we request that you kindly return to us the cancelled ■ 
 policy for our files. 
 
 AS NO PART OF THE PREMIUM ON THE POLICY ! 
 
 HAS' BEEN PAID, we request that you pay to us without \ 
 
 delay $ , being the pro rata earned premium from j 
 
 the beginning of the policy to its cancellation by virtue of ! 
 
 this notice. I 
 
 Yours very truly, i 
 
 Insurance Company. \ 
 
 Agent. . 
 
 j 
 
 Cancellation Notice — where premium is unpaid \ 
 
 (Old or New N. Y. Standard Policy) j 
 
 For use where it is desired to retain the line. .< 
 
 Dear Sir : ' 
 
 In accordance with customary rules, the EXAMPLE IN- ; 
 
143 THE AGENTS KEY TO FIRE INSURANCE 
 
 SURANCE COMPANY requires me to remit the premium of 
 
 $ on policy No issued to you and covering 
 
 on situate , or to cancel said policy 
 
 in accordance with its conditions. 
 
 THE PREMIUM REMAINING UNPAID, I am reluctantly 
 compelled as agent of the EXAMPLE INSURANCE COM- 
 PANY to notify you of its election to cancel the policy at the 
 expiration of five days from receipt by you hereof. All lia- 
 bility thereunder on the part of the Company will cease and 
 determine at the expiration of the said five days, unless 
 
 during such period the full premium of $ is paid at 
 
 my office (give address). 
 
 Regretting the necessity of this action and hoping to hear 
 from you, I remain, 
 
 Yours very truly, 
 
 Agent. 
 
 Cancellation Notice to Mortgagee 
 (When premium has been paid) 
 Dear Sir: 
 
 Please take notice that the Insurance Company elects 
 
 to cancel the mortgagee clause in your favor attached to its 
 policy No issued to covering on prop- 
 erty described as follows: 
 
 This notice is given you in accordance with the provisions 
 contained in said mortgagee clause relating to cancellation, 
 and liability on the part of this Company under said mort- 
 gagee clause will cease and determine at the expiration of 
 ten days from the receipt by you hereof. 
 Yours very truly, 
 
 Insurance Company. 
 
 \ Agent. 
 
 Cancellation Notice to Mortgagee 
 
 (When premium is unpaid) 
 Dear Sir: 
 
 Please take notice that the Insurance Company elects 
 
CANCELLATION AND SUBSTITUTION 143 
 
 to cancel the mortgagee clause in your favor attached to its 
 policy No issued to covering on prop- 
 erty described as follows: 
 
 This notice is given you in accordance with the provisions j 
 
 contained in said mortgagee clause relating to cancellation, ; 
 
 and liability on the part of this Company under said mort- i 
 
 gagee clause will cease and determine at the expiration of j 
 
 ten days from the receipt by you hereof. \ 
 
 WE HAVE RECEIVED NO PART OF THE PREMIUM j 
 
 ON THIS POLICY. j 
 
 Yours very truly, j 
 
 Insurance Company. I 
 
 Agent. 
 
 Cancellation Notice — subject to loss ) 
 
 Memorandum : For use in cancellation subject to loss where , 
 
 the Company has no known defense; return premium to '. 
 
 be figured pro rata of the ent ire premium from date of 1 
 
 notice. If it has a known defense — don't cancel. 1 
 
 Dear Sir: I 
 
 This company hereby notifies you that it elects to cancel j 
 
 its Policy No in accordance with the terms and j 
 
 conditions therein provided. \ 
 
 Said policy was issued to you through its agency at \ 
 
 to cover on ; 
 
 located i 
 
 Herewith we hand you $ being an amount in ex- 
 cess of the pro rata unearned premium on said policy, subject 
 to correction hereafter. 
 
 In giving this notice this Company neither admits nor ! 
 
 denies liability for any claim by reason of fire (date). ' \ 
 
 In accordance with the policy conditions, to which we have j 
 
 referred, all liability under this policy on the part of this | 
 
144 THE AGENTS KEY TO FIRE INSURANCE \ 
 
 Company will cease and determine at the expiration of five ; 
 
 days from the receipt by you hereof. ■> 
 
 Yours very truly, ; 
 
 Enc. Insurance Company. 
 
 Agent, j 
 
 Cancellation Notice to Payee | 
 
 (To be sent to a payee — not a mortgagee) : 
 
 Dear Sir: j 
 
 Please take notice that the Insurance Company elects i 
 
 to cancel its policy No in accordance with lines | 
 
 to inclusive thereof. j 
 
 This policy was issued through its agency at , j 
 
 to , covering on at , 
 
 and loss, if any, thereunder was made payable to you. ■ 
 
 All liability to you on the part of this Company under said : 
 
 policy will cease and determine at the expiration of five days ^ 
 from the receipt by you hereof, without further notice. 
 
 Yours very truly, ■ 
 
 Insurance Company, i 
 
 Agent, i 
 
 Note: — If the premium has not been paid the following j 
 
 may be added: '*WE HAVE RECEIVED NO PART OF ! 
 
 THE PREMIUM ON THIS POLICY." j 
 
 Notice recalling Void Policy j 
 
 (For use where it is not desired to waive the ^ 
 
 breach of condition) i 
 
 Dear Sir: j 
 
 Information has reached us indicating that the property ; 
 
 described in this company's policy No located j 
 
 (is encumbered by chattel ; 
 
 mortgage). j 
 
 If this is true the policy is void, and there will be due you * 
 
 upon its return the unearned premium thereon. ! 
 
CANCELLATION AND SUBSTITUTION 145 
 
 If our information is incorrect we will be pleased to have 
 
 you advise us. 
 
 Yours very truly, 
 
 Insurance Company. 
 
 Agent. 
 
 Insert after location the nature of the condition which 
 voids the policy ; for example : 
 
 *'Is encumbered by chattel mortgage.'^ 
 
 **Has been vacant for more than time permitted thereon." 
 
 '* Contains gasoline in excess of amount permitted.'' 
 
 **Has been sold." 
 
 **Has been removed." 
 
 Notice recalling Void Policy 
 
 (For use where, if satisfactorily explained, the breach of 
 condition may be waived by endorsement on the policy.) 
 
 Dear Sir: 
 
 Information has reached us indicating that the property 
 
 described in this Company's policy No located 
 
 (is encumbered by chat- 
 tel mortgage) . 
 
 If this is true the policy is void, and there will be due you 
 upon its return the unearned premium thereon. 
 
 If you will let us have a statement of the facts regarding 
 above, we will be pleased to see whether or not the policy may 
 be reinstated by proper endorsement thereon, and continue in 
 force. 
 
 Awaiting word from you, we remain. 
 
 Yours very truly, 
 
 Insurance Company. 
 
 Agent. 
 
 Insert after location the nature of the condition which 
 voids the policy; for examples see foregoing notice. 
 
146 THE AGENTS KEY TO FIRE INSURANCE '. 
 
 Note: Under the terms of the old New York Standard j 
 
 policy it was void if there was a breach of certain specified j 
 
 conditions, but under the new New York Standard policy \ 
 the company is not liable WHILE the breach continues. 
 
 Technically perhaps the policy is therefore not *'void" but > 
 
 merely suspended during such time, but it is believed the j 
 
 use of the word **void" in the two foregoing notices is I 
 
 quite proper. \ 
 
CHAPTER XIII 
 
 MORTGAGEE AND PAYEE INTERESTS 
 
 Mortgage Clauses — Separate Contract — Payment of 
 Loss — Multiple Mortgages — Interest Not Invali- 
 dated — Liability for Premium — Cancellation — 
 Subrogation — A Personal Contract — Amount of 
 Loss — Chattel Mortgage — Payee Interest. 
 
 Old New York Standard Policy. The only reference 
 therein to mortgagee interests is as foUows: ''If, with the 
 consent of this company, an interest under this policy shall 
 exist in favor of a mortgagee or of any person or corporation 
 having an interest in the subject of insurance other than the 
 interest of the insured as described herein, the conditions 
 heretofore contained shall apply in the manner expressed 
 in such provisions and conditions of insurance relating to 
 such interest as shall be written upon, attached, or appended 
 hereto." 
 
 It will be noted that under this provision the conditions 
 applicable and enforceable as regards a mortgagee are only 
 those preceding line 56, and by attachment of the standard 
 mortgagee clause many of these are waived. Such im- 
 portant provisions as those requiring notice of loss, rendering 
 proofs, right of appraisal, limitation of time for beginning 
 suit and others were omitted from the contract with the 
 mortgagee since they are not mentioned in the mortgagee 
 clause. 
 
 To remedy this somewhat anomalous condition without 
 jeopardizing mortgage interests the following conditions were 
 inserted in the 
 
 New New York Standard Policy. **If loss or damage is 
 made payable, in whole or in part, to a mortgagee not 
 named herein as the insured, this policy may be cancelled 
 as to such interest by giving to such mortgagee a ten days' 
 written notice of cancellation. Upon failure of the insured 
 to render proof of loss such mortgagee shall, as if named 
 as insured hereunder, but within sixty days after notice of 
 
 147 
 
148 THE AGENTS KEY TO FIRE INSURANCE 
 
 such failure, render proof of loss, and shall be subject to 
 the provisions hereof as to appraisal and times of payment 
 and of bringing suit. On payment to such mortgagee of 
 any sum for loss or damage hereunder, if this Company 
 shall claim that as to the mortgagor or owner, no liability 
 existed, it shall, to the extent of such payment be subrogated 
 to the mortgagee's right of recovery and claim upon the 
 collateral to the mortgage debt, but without impairing the 
 mortgagee's right to sue; or it may pay 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. ' ' 
 
 Under the provision the policy as to the mortgagee may 
 be cancelled upon ten days' written notice; the mortgagee 
 if required shall render proof of loss; and is made subject 
 to the provisions of policy relating to time of payment 
 and of bringing suit; and those relating to appraisal and 
 subrogation. 
 
 When realty is encumbered by mortgage the mortgagee has 
 an insurable interest therein, and may insure it as such, but 
 the customary method is to issue the insurance 
 Insurable to the owner or mortgagor, making loss, if any, 
 Interest payable to the mortgagee and attaching a mort- 
 
 gagee clause. If the policy covers both real and 
 personal property, the mortgagee clause should be made to 
 apply to the realty only. A mortgage on realty does not 
 give the mortgagee anj'^ ownership interest in the property, 
 and therefore does not affect the **sole and unconditional 
 ownership" referred to in the policy. 
 
 Unless required by the mortgagee it is not necessary to 
 make any mention in the policy of a mortgage interest in 
 realty, nor to make loss, if any, under the policy 
 Mention payable to the mortgagee, nor to attach the 
 
 Unnecessary mortgagee clause. Sometimes two policies are- 
 taken out by the assured, one for the amount 
 of the mortgage, payable to the mortgagee, and the other for 
 the remainder of value of building, omitting any loss payable 
 clause ; but this is not as good practice as to make all policies 
 payable to the mortgagee, as his mortgage interest may ap- 
 pear, thus protecting the owner, the mortgagee and the in- 
 surance company. 
 
MORTGAGEE AND PAYEE INTERESTS 149 
 
 Mortgagee Clauses. In New York State there are two 
 fonns of Standard Mortgagee Clauses, one called the Non- 
 Contribution Mortgagee Clause, and the other the Full Con- 
 tribution Mortgagee Clause. The two are exactly alike, ex- 
 cept for a condition in the Full Contribution Mortgagee 
 Clause which is self-explanatory and reads as follows: — **In 
 case of any other insurance upon the within described prop- 
 erty this company shall not be liable under this policy for a 
 greater proportion of any loss or damage sustained than the 
 sum hereby insured bears to the whole amount of insurance 
 on said property, issued to or held by any party or parties 
 having an insurable interest therein, whether as owner, mort- 
 gagee or otherwise.^' 
 
 Contribution. Where there is insurance under two or more 
 policies containing the mortgagee clause without the **full 
 contribution" feature, the mortgagee may demand that the 
 full amount of any loss ascertained to be payable, and not 
 in excess of the amount of such insurance, shall be payable 
 to him (mortgagee), even though the insurance so payable 
 constitutes but part of the total insurance, the balance being 
 payable to some other interest. The non-contribution mort- 
 gagee clause may therefore be a greater protection to the 
 mortgagee than the full contribution mortgagee clause, but 
 if all the insurance is payable to the mortgagee and held by 
 him it does not matter which clause is. used. The Company's 
 interest is better protected by the full contribution clause. 
 
 Separate Contract. The mortgagee clause is held to be a 
 contract between the insurance company and the mortgagee, 
 separate and distinct from the policy contract between the 
 company and the insured. It contains several provisions 
 which maj'' be reviewed as follows : — 
 
 (1) LOSS PAYABLE 
 
 That loss, if any, under the policy shall be payable to the 
 mortgagee. 
 
 Payment of Loss. Most companies in paying a loss where 
 a mortgagee clause is attached to the policy make draft pay- 
 able both to the mortgagee and the insured, thus obtaining a 
 release from both. If the company were to pay the insured 
 only and the mortgagee were afterward to demand payment, 
 the company might be required to pay him even though it 
 could not recover the money paid to the insured, and would 
 then be in the position of paying the loss twice. 
 
 Multiple Mortgages. Where there is more than one mort- 
 gage on realty and each mortgagee has separate insurance to 
 
150 THE AGENTS KEY TO FIRE INSURANCE 
 
 protect his interest, the non-contribution clause being at- 
 tached to the policies, it is sometimes thought that each set of 
 insurance must pay to the mortgagee named therein the full 
 amount of any loss that occurs under the policy (not exceed- 
 ing such insurance), even though the amounts so paid are 
 double the amount of the loss. This does not seem equitable, 
 and it is doubtful if the mortgagee clause would always be 
 construed so favorably to both mortgage interests. 
 
 Where realty is encumbered by two mortgages there are 
 several ways in which the rights of each mortgagee may be 
 protected without jeopardizing the rights of the insurance 
 company, bearing in mind that any insurance money paid to 
 a mortgagee reduces his mortgage by such amount. Either of 
 the following methods will protect either mortgagee, pro- 
 viding the property is worth the amount of both mortgages 
 and all insurance thereon is made payable to one or to the 
 other, or to both: 
 
 First : — By making the loss payable to John Doe, first mort- 
 gagee, and Richard Roe, second mortgagee, as interest may 
 appear. 
 
 Second : — By making loss payable to John Doe, first mort- 
 gagee, as interest may appear, and remainder, if any, to 
 Richard Roe, second mortgagee. 
 
 Sometimes a third method is adopted, viz., of attaching the 
 full contribution mortgagee clause to policies which are issued 
 separately, in favor of one or the other mortgagee interest, 
 or in any case attaching it to the policies of the second 
 mortgagee. This method is not recommended. 
 
 (2) INTEREST NOT INVALIDATED 
 
 That the insurance as to the interest of the mortgagee 
 therein shall not be invalidated by any act or neglect of the 
 insured, or of any tenant, or by any legal proceedings, or by 
 change of title or occupancy or increase of hazard, provided, 
 however, that the mortgagee shall notify the insurance com- 
 pany of any change of title or occupancy or increase of haz- 
 ard that comes to his knowledge, and shall on demand pay the 
 premium for such increased hazard. 
 
 If the mortgagee at the inception of the policy knows of 
 conditions which render it void as to the insured, it is prob- 
 ably void also as to the mortgagee, but knowl- 
 Policy Void edge acquired by the mortgagee after the in- 
 ception of the policy, except as to change of 
 ownership or occupancy or increase of hazard, does not affect 
 his rights. 
 
MORTGAGEE AND PAYEE INTERESTS 151 
 
 This condition shows how thoroughly the interest of the 
 mortgagee is protected against any act of the owner or tenant 
 that does not come to his knowledge. On this point an emi- 
 nent authority says : ' ' If there are any rights or advantages 
 which the mortgagee does not possess, it is either becau^ he 
 has not yet discovered them or has not gone after them, and 
 more remarkable still is the fact that for all this the mort- 
 gagee pays nothing whatever. He gets without money and 
 without price a contract which the mortgagor or owner of the 
 best risk in the land cannot buy at any price. ' '* 
 
 (3) LIABILITY FOR PREMIUM 
 
 That if the owner (insured) neglects to pay any premium 
 due on the policy the mortgagee, on demand, shall pay the 
 premium. 
 
 When the mortgagee himself orders the insurance he is 
 expected to pay the premium in the ordinary course of busi- 
 ness, but if the insured orders the insurance 
 Payment of and does not pay the premium, then on demand 
 Premium the mortgagee must pay it within a reasonable 
 
 time, or forfeit his rights under the con- 
 tract. It is doubtful if the mortgagee can be held except for 
 the proportion of the premium from the date of demand for 
 premium to the expiration of the policy ; or, in other words, it 
 is doubtful whether in all cases he can be made to pay for that 
 portion of the insurance which has already run at the time 
 of demand for the premium, even though he has had the pro- 
 tection of the insurance during such time. 
 
 (4) CANCELLATION 
 
 That the interest of the mortgagee may be terminated (1) 
 by cancellation of the policy, or (2) by cancellation of the 
 mortgagee clause, but in either case the mortgagee must be 
 given ten days' notice and his interest continues for ten 
 days after notice is received. (See Cancellations.) 
 
 (5) SUBROGATION 
 
 That when the insurance company shall pay the mortgagee 
 for a loss under the policy, and shall claim that as to the 
 owner (insured) no liability existed, then the company shall, 
 
 Wm. M. Bament, The Mortgagee Clause. 
 
152 THE AGENTS KEY TO FIRE INSURANCE 
 
 'i 
 
 to the extent of such payment, be subrogated to all the rights 
 of the mortgagee. 
 
 This means that the company will in such case have an 
 interest in the mortgage to the extent of the amount of loss 
 paid to the mortgagee. When subrogation to the rights of the 
 mortgagee is to be taken, it is customary for the insurance 
 company to pay the entire amount of the mortgage, which is 
 then assigned to such company. 
 
 The loss payable and mortgagee clauses are personal; they 
 protect the mortgagee not the mortgage. Hence, if the mort- 
 gage is sold or transferred, the policy should 
 A Personal be endorsed, making loss payable to the new 
 Contract mortgagee. If a mortgage is paid off and a new 
 
 mortgage is executed to the same party, it is 
 held to be a change of mortgage interest and to require en- 
 dorsement on the policy. If the policy contains no pro- 
 vision making loss payable to a mortgagee there is no obli- 
 gation on the company's part to pay such loss to the mort- 
 gagee. The mortgagee in such case has only such rights as 
 are given him by the terms of his mortgage, and by the law, 
 and these must be asserted in the proper manner in order to 
 be effective. 
 
 The making of loss, if any, payable to a mortgagee, with or 
 without a mortgagee clause, is not intended to waive the con- 
 ditions of the policy relating to the amount of 
 Amount loss that is so payable; it merely stipulates, in 
 
 of Loss this respect, that loss in such amount as may 
 
 be duly ascertained to have been sustained, un- 
 der the terms and conditions of the policy, shall be payable as 
 provided. 
 
 Therefore, the loss payable, or the mortgagee clause, is not 
 intended to waive the application of a coinsurance or average 
 clause, or any other clause affecting the amount payable, or 
 change in any way the application of the insurance. 
 
 The contention sometimes asserted that the mortgagee 
 clause overrides such provisions and clauses and nullifies 
 them in so far as the mortgagee is concerned does not coincide 
 with the general understanding, and a mortgagee cannot 
 safely rely on such an extreme construction of the rights 
 given to him under the mortgagee clause. 
 
MORTGAGEE AND PAYEE INTERESTS 153 
 
 The following clause is sometimes used on a policy of in- 
 surance which is ordered and paid for by the mortgagee : 
 
 **Loss, if any, to be adjusted with, payable to and recover- 
 able by, Mortgagee. It is understood and agreed 
 
 that if in the event of fire there is found to be in force any 
 other insurance in this or any other Company, said other in- 
 surance shall not be considered as contributing insurance nor 
 shall said other insurance pro rate with this Company as far 
 
 as the interest of in said loss is concerned, unless 
 
 said other insurance is also payable to as 
 
 Mortgagee. It is further understood and agreed that it is 
 the intent of this Company to reimburse as mort- 
 gagee for the full amount of his loss up to the amount of 
 this policy, regardless of any other insurance (except such 
 as may also be payable to him) which may have been effected 
 on said property. '* 
 
 The best method of protecting all mortgagee interests, 
 when there are two or more mortgages on the same property, 
 is one of the questions that frequently arises, particularly 
 with reference to the interest of the second and subsequent 
 mortgages. 
 
 The method recommended by most authorities is to issue 
 all insurance to the owner, with loss if any payable under 
 
 a mortgagee clause to the first mortgagee, as 
 First and interest may appear, remainder if any to sec- 
 
 Subsequent ond mortgagee, and so on. Unless complicated 
 Mortgagees by some other question there should be no 
 
 impairment of the security of any mortgagee 
 interest if the full amount of the loss is paid to the first 
 mortgagee, thereby reducing his mortgage interest by such 
 sum, therefore, this method is equitable and in line with the 
 principle of indemnity. 
 
 It has been claimed by some authorities that if property 
 is encumbered by four mortgages and each mortgagee holds 
 insurance for the full value of the property, payable to him 
 alone under a mortgagee clause, that each set of insurance 
 might be required to pay the full amount of any loss that 
 was less than the mortgage interest covered thereby, which 
 would therefore amount to paying four times the actual 
 property loss. This is neither sensible nor equitable and 
 it is at least doubtful whether any court would sustain 
 such an uneconomical procedure. In fact there have been 
 
154 THE AGENTS KEY TO FIRE INSURANCE 
 
 SO many conflicting decisions and opinions arising where 
 mortgagees had separate insurance to protect their interests 
 as to warrant the statement that no well settled principle 
 has been laid down. 
 
 Certain it is that where each of two or more mortgagees 
 obtains insurance, payable separately to him alone, all mort- 
 gagee interests are likely to be involved in questions of coin- 
 surance, contribution, apportionment and subrogation which 
 would be avoided if all insurance were made payable to 
 all mortgagees in the customary manner. 
 
 CHATTEL MORTQAaE 
 
 Where a policy on personal property is made payable to a 
 chattel mortgagee many companies will not permit the at- 
 tachment of a mortgagee clause, being unwill- 
 Notice ing to give to the chattel mortgagee the benefit 
 
 in Policy of that separate and broad contract. In such 
 
 cases the payee clause is made to read, **Loss, 
 if any, payable to John Doe as interest may appear, (or as 
 mortgage interest may appear), subject, nevertheless, to all 
 the conditions of this policy. '^ The exception to this rule 
 is where a large enterprise, such as a Railroad, has executed 
 a mortgage, covering both real and personal property, to pro- 
 tect an issue of bonds, in which case there is usually no 
 objection to making loss payable to the trustee for the bond- 
 holders, and attaching the mortgagee clause. 
 
 While insurance companies do not as a rule regard chattel 
 mortgaged property as a good insurance risk, there are cir- 
 cumstances under which they will accept lines 
 Where with more or less freedom on the recommenda- 
 
 Permitted tion of the agent. The following will serve as 
 illustrations of such cases: 
 
 The stock of an old established drug, grocery or jewelry 
 concern that has been purchased by one familiar with the 
 business, giving in payment part cash and protecting the 
 balance by a purchase money mortgage, which is to be re- 
 duced in regular installments; 
 
 Stocks in warehouses mortgaged to a bank to protect a 
 loan. 
 
MORTGAGEE AND PAYEE INTERESTS 165 
 
 STOCKS IN WAREHOUSE MORTaAGED OR PLEDaED 
 TO A BANK TO PROTECT THE LOAN 
 
 In a case of this kind it has been the custom to attach 
 the simple loss payable clause, but this is not always satis- 
 factory to the bank. The best method of protecting the 
 bank's interest in goods pledged as collateral for loan is 
 to issue the insurance to the owner of the goods, attaching 
 a standard mortgagee clause making loss payable to the 
 bank. Some companies might object to this course since it 
 is against established practice to attach a mortgagee clause 
 to policies covering personal property. 
 
 Another suggested method is to issue the policy to the 
 bank **For Account of Whom It May Concern." This has 
 the objection that it gives any one having an interest in 
 the goods the right to make claim for a share of the insur- 
 ance in case of loss. The filing of such a claim upon the 
 bank or the insurance company would require recognition 
 if the interest were valid. If no other interest made claim 
 under the insurance the insurance company ordinarily would 
 pay the amount of claim to the bank and take its receipt, 
 but this might not secure for the bank the exclusive pro- 
 tection desired. Perhaps the most important objection to 
 this method is a possible complication regarding contribution. 
 Unless goods are described in the policy by marks or num- 
 bers or otherwise specifically identified insurance might and 
 probably would apply to any property of the same kind in 
 the same location insured in a similar manner. To illustrate : 
 Smith borrows from the bank on collateral of sugar in 
 warehouse. Jones borrows from the same bank on the same 
 kind of collateral in same warehouse. The bank takes out 
 separate insurance on each lot of sugar under the title 
 ^'For Account of Whom It May Concern. '^ There is little 
 doubt that all such policies covering sugar in warehouse 
 would contribute with each other. Hence under-insurance 
 in the aggregate, or insolvency of some one company, or 
 other cause, might seriously complicate a situation so created. 
 
 Another suggested method is to issue policies to owner 
 and/or bank as interest may appear with loss payable to 
 the bank. Such a policy covers two separate and distinct 
 interests — namely, ownership interest and lienor's interest — 
 and has the advantage that in ordinary practice the bank 
 may join in the adjustment of lo^s and would join in 
 executing proofs, so that it would always be in touch with 
 
156 THE AGENTS KEY TO FIRE INSURANCE 
 
 the cdiiiu). In the extreme case a bank would have the right 
 to render independent proofs, making claim for loss to its 
 interest as lienor. Such a policy probably would not be 
 avoided by an act of the owner atlfeeting the owner's in- 
 terest, because the bank's interest is a separate and different 
 subject of insurance even though joined in one policy con- 
 tract with the ownership interest. 
 
 PAYEE INTERESTS 
 
 Where a policy contains the provision, "Loss, if any, pay- 
 able to John Doe, as interest may appear," it has been un- 
 derstood that such a clause did not cause the insurance com- 
 pany to assume any obligation, nor the payee to receive any 
 rights, beyond requiring that any money becoming due and 
 payable by reason of loss under the policy shall be paid to 
 said payee and that payee shall be notified in case the insur- 
 ance company elects to cancel the policy. There is no dis- 
 puting this view in so far as any payee interests are con- 
 cerned except a mortgage interest, but the courts in some 
 cases now seem to be leaning toward the view that the intent 
 of such clause is to give the mortgagee an interest in the 
 insurance that is superior to the owner 's interest. No opinion 
 is ventured on this point, and it is mentioned only to show 
 the care that needs to be exercised in putting loss payable 
 clauses on policies covering personal property. 
 
CHAPTER XIV 
 
 IMPORTANT CLAUSES 
 Affecting Amount or Distribution of Liability 
 
 Coinsurance Clauses — Theory of Coinsurance — 6% 
 Waiver Clause — Coinsurance (Floating) — Coin- 
 surance and Limitation Clause — Distribution 
 Clauses — Pro Rata Clauses — Three-fourths 
 Value Clause — Three-fourths Loss Clause — Two- 
 thirds Vacancy Clause. 
 
 The use of coinsurance on fire insurance contracts is an 
 adaptation of the average clause used in all marine insurance 
 
 contracts and a principle that dates back to 
 Other the earliest beginnings of maritime ventures. 
 
 Names Such clauses in fire insurance contracts are 
 
 also referred to as average clauses, contribu- 
 tion clauses, percentage coinsurance clauses, reduced rate 
 average clauses, reduced rate coinsurance clauses and re- 
 duced rate contribution clauses, all having the same general 
 meaning and effect, however worded, except possibly in cases 
 of non-concurrency. 
 
 The following clauses will illustrate those in common use, 
 though there are others with somewhat different wordings: 
 
 COINSURANCE CLAUSE 
 
 *'It is hereby agreed that the assured shall maintain in- 
 surance during the life of this policy upon the property 
 
 hereby insured to the extent of at least per cent. 
 
 of the actual cash value at the time of the fire; and that 
 failing so to do, the assured shall to the extent of such 
 deficit bear his proportion of any loss." 
 
 157 
 
158 THE AGENTS KEY TO FIRE INSURANCE i 
 
 AVERAGE CLAUSE ' 
 
 ''This Company shall not be liable for a greater propor- ! 
 
 tion of any loss or damage to the property described herein ■ 
 
 than the sum hereby insured bears to per cent, i 
 
 ( % ) of the actual cash value of said property at the j 
 
 time- such loss shall happen, nor for more than the propor- j 
 
 tion which this policy bears to the total insurance thereon." i 
 
 REDUCED RATE AVERAGE CLAUSE 
 
 ''In consideration of the rate at and/or form under which ; 
 
 this policy is written, it is expressly stipulated and made a j 
 
 condition of this contract, that this Company shall be held ; 
 
 liable for no greater proportion of any loss than the amount i 
 
 hereby insured bears to per cent, of the actual ] 
 
 cash value of the property described herein at the time when j 
 such loss shall happen; but if the total insurance upon such 
 
 property exceeds per cent, at the time of such loss, j 
 
 then this company shall only be liable for the proportion j 
 
 which the sum hereby insured bears to such total insurance, ] 
 
 not exceeding the actual amount of loss to the property ! 
 insured. ^ ' 
 
 PERCENTAGE VALUE CLAUSE i 
 
 "If at the time of fire the whole amount of insurance * 
 
 on the property covered by this policy shall be less than ' 
 
 per cent, of the actual cash value thereof, this ! 
 
 company shall in case of loss or damage be liable for only | 
 
 such portion of such loss or damage as the amount insured : 
 
 by this policy shall bear to the said per cent, of 1 
 
 the actual cash value of such property." \ 
 
 Whenever clauses of this kind are attached to policy, : 
 
 it is the custom to include therewith the following condition : ; 
 
 "If the insurance under this policy be divided into , 
 
 two or more items the foregoing conditions shall apply j 
 
 to each item separately." i 
 
 The purpose of this clause is to avoid the possibility of I 
 
 there being sufficient insurance over the whole amount of > 
 
 property to comply with the 80% clause, yet with some item : 
 
IMPORTANT CLAUSES (COINSURANCE AND OTHERS) 159 
 
 covered by a specific amount of insurance very much less 
 than the required 80%, thus defecting the purpose of the 
 80% clause. 
 
 In effect the coinsurance or average clause constitutes 
 an agreement between the insured and the company deter- 
 mining the proportion of any loss for which 
 Its Meaning the latter shall be liable, same being con- 
 tingent upon the amount of insurance main- 
 tained in proportion to the value of property covered. 
 
 If the 100 per cent, (or full) coinsurance clause is used 
 then the insured is entitled to recover such proportion of any 
 loss as the total insurance bears to the total value of prop- 
 erty covered. 
 
 Practically, if the insured maintains concurrent insurance 
 equal to the value of property covered, the insurance pays 
 all of any loss; if the insurance maintained is less than the 
 value then it pays proportionately less of the loss. This is 
 merely an example of the familiar *' ratio and proportion'' 
 found in every arithmetic, and is usually clear to all. 
 
 Where many experience difficulty is in explaining the 80% 
 coinsurance clause, yet its application is identical with the 
 
 foregoing, being merely a requirement of 80% 
 80% Clause insurance to value instead of 100%. Hence, if 
 
 the insured maintains concurrent insurance 
 equal to 80% (or more) of the value of property covered, the 
 insurance pays all of any loss (not exceeding, of course, the 
 amount of the insurance) ; if less than 80% insurance is 
 maintained, then same pays proportionately less of the loss. 
 
160 
 
 THE AGENTS KEY TO FIRE INSURANCE 
 
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IMPORTANT CLAUSES ( COINSURANCE AND OTHERS) 161 
 
 There is nothing in the clause to prohibit more than 80% 
 insurance to value; thus if with a value of 
 
 Insurance $7,500 there is $7,000 or $7,500 insurance it 
 
 May must pay all of any loss up to those amounts. 
 
 Exceed 80% Many think that the 80% clause means that the 
 insured is only entitled to collect 80% of any 
 
 loss that occurs, but that is untrue as the above clearly shows. 
 
 The four things to remember when using the 80% clause 
 are these: 
 
 1. That the 80% clause does not mean that the insurance 
 will pay only 80% of any loss. 
 
 2. That if the insured fails to carry at least 80% insur- 
 ance to value, then, in effect, he insures himself for the 
 amount lacking, and this self insurance must pay its propor- 
 tion of any loss. 
 
 3. That if a loss equals or exceeds the percentage of value 
 stipulated in the coinsurance clause the latter is inopera- 
 tive. 
 
 4. To ascertain the value of property and then be careful 
 to have concurrent insurance amounting to 80% or more of 
 such value, in which case the insured will be entitled to collect 
 the loss just as if the clause was not attached to the policy. 
 
 100% (or full) and 90% coinsurance clauses follow the 
 same principle, merely substituting the percentage of insur- 
 ance to be carried. 
 
 The Theory of Coinsurance. Fire insurance is a system 
 of averages in the sense that premiums collected from the 
 
 many who insure must pay the losses of the 
 Average few whose property is destroyed by fire. The 
 
 cost of insurance, i. e., the rate of premium, 
 varies in accordance with construction, hazard and means 
 of extinguishing fire, and is reduced proportionately with 
 the likelihood that fire occurring will only partially destroy 
 the property involved. Manifestly rates can be so reduced 
 
162 THE AGENTS KEY TO FIRE INSURANCE 
 
 only when a partial loss to proper ty will result in a pro- 
 portionately partial loss to insurance thereon. Governed 
 
 by the laws of average these rates cannot be 
 To Preserve fixed to justly and equitably distribute the 
 Equity burden of this fire cost unless the percentage of 
 
 insurance carried to the value of property cov- 
 ered is about the same in each case, or else some limitation 
 of liability for loss in the proportion that insurance bears to 
 value, precisely as it is impossible to justly and equitably fix 
 an average rate of city taxation unless the assessed valuation 
 of all buildings is fixed at the same percentage of their full 
 or market value. It is therefore inequitable that one should 
 
 insure, for 50% of value, another for 30%, 
 Like a another for 80% and andther for 100%, unless 
 
 Tax Rate the insurance pays in like proportion on any 
 
 loss that occurs, for otherwise some would 
 pay less than their share of the average premiums while re- 
 ceiving full indemnity up to the amount of insurance carried. 
 Every man expects to recover his loss in full, therefore he 
 should pay his share of the average premium in full, or 
 suffer the consequence of his neglect to bear his part of the 
 burden. 
 
 These are the principles upon which the use of coinsurance 
 is based, and its universal application to contracts of insur- 
 ance will result in a more equitable distribution 
 Principles of the fire cost, and lower average rates of 
 premium, than could possibly obtain without 
 its adoption. 
 
 *Five Per Cent. Waiver Clause. It is recognized that if 
 large values are covered under an insurance policy it would 
 
 work a hardship on the insured to require an 
 Waiver of inventory of the undamaged as well as the 
 Inventory damaged property, hence there has arisen the 
 
 use, in connection with the coinsurance clause, 
 of the 5% waiver clause, reading as follows, or in words of 
 similar meaning: 
 
 **In the event that the aggregate claim for any loss 
 is both less than ten thousand dollars ($10,000) and less 
 
 ♦Sometimes "Two" instead of "Five. 
 
IMPORTANT CLAUSES ( COINSURANCE AND OTHERS) 163 
 
 than five per cent. (5%) of the total amount of insurance 
 upon the property described herein at the time such 
 loss occurs, no special inventory or appraisement of 
 the undamaged property shall be required. '* 
 
 ''If the insurance under this policy be divided into two 
 or more items, the foregoing conditions shall apply to 
 each item separately." 
 
 It will be observed that this does not waive the applica- 
 tion of coinsurance clause; it merely waives the special in- 
 ventory of undamaged property in cases where the loss has 
 been agreed upon. 
 
 Floating Coinsurance Clause. A special coinsurance clause 
 for use in writing floating policies in New York State reads 
 as follows: 
 
 ''If any property included in the terms of this policy 
 shall at the time of any loss be more specifically insured 
 by this company or any other insurer, this policy shall 
 extend to cover such property only so far as relates 
 to any excess of value not covered by such other in- 
 surance, whether valid or not, and this policy shall be 
 liable on such more specifically insured property only 
 for such loss as shall be in excess of the amount payable 
 by or recoverable from such more specific insurers, 
 whether solvent or otherwise, but in no event shall 
 this Company under this policy be liable for a greater 
 proportion of any loss than the amount of this policy 
 
 shall bear to per cent. ( % ) of the total 
 
 cash value of the property covered by this policy (in- 
 cluding such excess value) at the time of any loss." 
 
 Coinsurance and Limitation Clause. This is another special 
 clause sometimes used in writing certain classes of property. 
 Its MSB arose through the attempt to eliminate moral hazard 
 by requiring that an insured must carry a certain fixed 
 amount of insurance, yet must himself bear a certain amount 
 of any loss sustained. The clause reads in various ways, of 
 which the following is one form : 
 
 If at the time of fire the whole amount of insurance on 
 the property'- covered by this policy shall be less than 
 (75) per cent, of the actual cash value thereof, this Com- 
 pany shall, in case of loss or damage, be liable for such 
 
164 THE AGENTS KEY TO FIRE INSURANCE 
 
 portion only of the loss or damage as the amount insured 
 by this policy shall bear to the said (75) per cent, of the 
 actual cash value of such property; provided, that in 
 case the whole insurance shall exceed (75) per cent, of 
 the actual cash value of the property covered by this 
 policy, this Company shall not be liable to pay more 
 than its pro rata share of said (75) per cent, of the 
 actual cash value of such property; and should the whole 
 insurance at the time of fire exceed the said per cent. 
 a pro rata return of premium on such excess of insurance 
 from the time of the fire to the expiration of this policy 
 shall be made on surrender of the policy. 
 
 Effects Permission for Other Insurance. It should not be 
 overlooked that the attachment of a coinsurance clause consti- 
 tutes permission for insurance in amount equal to the per- 
 centage of value stipulated by such clause. 
 
 DISTRIBUTION CLAUSE 
 
 Sometimes called the AVERAGE CLAUSE, the AVERAGE 
 DISTRIBUTION CLAUSE and the PRO RATA DISTRIBU- 
 TION CLAUSE. This clause reads in various ways, the 
 following forms being in most common use: 
 
 '*This policy shall attach in each building or location 
 in the proportion that the value in each bears to the value 
 in all.'' 
 
 '*The amount of this policy shall attach pro rata with 
 the value of property covered hereunder in each separate 
 building or location.'' 
 
 **This insurance shall apply in both locations pro rata 
 according to the value of the property covered." 
 
 "It is understood and agreed that the amount insured 
 by this policy shall attach in each of the above named 
 premises in that proportion of the amount hereby insured 
 that the value of the property covered by this policy, 
 contained in each of the said places, shall bear to the 
 value of such property contained in all of the above 
 named premises." 
 
IMPORTANT CLAUSES ( COINSURANCE AND OTHERS) 165 j 
 
 The foregoing clause is also used with the word ''build- ; 
 
 ings" in place of the words ''premises" or "places." ^ 
 
 "It is understood and agreed that the amount insured ^ 
 
 by this policy shall attach in or on each building, shed '■ 
 
 and other structure and/or place in that proportion of the j 
 
 amount hereby insured that the value of the property I 
 covered by this policy in or on each said building, shed 
 
 and other structure and/or place shall bear to the value 1 
 
 of all the property described herein." 1 
 
 Western Union Distribution Clause (West) j, 
 
 "It is a condition of this policy that the amount in- | 
 
 sured hereunder shall attach in or on each building, shed ; 
 
 and other structure and (or) place, in that proportion . \ 
 
 of the amount hereby insured that the value of the I 
 
 property covered by this policy in or on each said build- : 
 ing, shed and other structure and (or) place, bears to 
 the value of all property described herein." 
 
 Uniform Pro Rata Distribution Clause (East) ■ 
 
 "It is a condition of this contract that the amount ! 
 
 insured hereunder shall attach in or on each building, | 
 shed and other structure and/or place in that proportion 
 
 of the amount hereby insured that the value of the prop- i 
 
 erty covered by this policy in or on each said building^ i 
 
 shed and other structure and/or place shall bear to the \ 
 
 value of all the property described herein. " ' 1 
 
 The clause used in writing lumber in New York State ; 
 
 reads as follows: j 
 
 "It is a condition of this contract that the amount 
 
 insured under this policy shall attach at the time of j 
 
 any loss in each building and/or shed and in each section ' 
 
 of "yard or piling ground as shall be separated by | 
 
 feet or more of CLEAR SPACE (platforms and tram- i 
 
 ways without lumber piled thereon not included) from 1 
 
 any other building or section, in that proportion of the j 
 
 amount hereby insured that the value of the property { 
 covered by this policy in each such location shall bear 
 to the value of such property in all such locations." 
 
 Where policy is written blanket on building and contents, • 
 
 and the rule requires a specific amount on building, on ma- \ 
 
166 THE AGENTS KEY TO FIRE INSURANCE 
 
 chinery and on stock, the following distribution clause will 
 serve the purpose if there is no prescribed form : 
 
 **This policy shall attach separately on building, on 
 machinery and on stock therein, in the proportion that 
 the value of each bears to the value of all." 
 
 Where there is more than one building, and it is desired to 
 write buildings, machinery and stock blanket, with distribu- 
 tion clause applying separately to each building, to the ma- 
 chinery in each and to the stock in each, the following form 
 of clause will serve if there is no prescribed form : 
 
 **This policy shall attach separately on each building, 
 on the machinery in each building and on the stock in 
 each building, in the proportion that the value of each 
 such subject bears to the value of all." 
 
 The meaning and application of all such clauses follow the 
 same principle, and can hardly be explained any more simply 
 
 and clearly than by the clauses themselves. 
 Meaning The distribution clause automatically makes a 
 
 policy specific, for under its operation the in- 
 surance follows the value of property proportionately in the 
 various buildings or locations, or, expressed another way, the 
 insurance attaches specifically in the various buildings or 
 locations proportionately with the value of property covered. 
 This may be illustrated as follows: 
 
 If a $20,000 policy is distributed over five items aggregat- 
 ing $30,000 in value as shown below, then *^This insurance 
 ($20,000) shall cover in each building (or location) in the 
 proportion that the value in each bears to the value in all," 
 with the following result: 
 
 Value Proportion Insurance 
 
 Building 1 $4,000 4/30ths $2,666.67 
 
 Building 2 6,000 6/30ths 4,000.00 
 
 Building 3 .12,000 12/30ths 8,000.00 
 
 Building 4 5,000 5/30ths 3,333.33 
 
 Building 5 3,000 3/30ths 2,000.00 
 
 Totals 30,000 30/30ths 20,000.00 
 
 The distribution clause is designed for use when property 
 
IMPORTANT CLAUSES (COINSURANCE AND OTHERS) 167 
 
 constituting two or more separate risks, not likely to be in- 
 volved in anj'^ one fire, is written under a 
 When blanket form, for without its use the insurance 
 
 Used would have to be made to cover for specific 
 
 amounts at each location, otherwise the 90% 
 or 100% coinsurance clause made a part of the contract. (See 
 Blanket Forms.) There is usually no reason for its use when 
 insuring buildings, for their values are not subject to much 
 fluctuation; its advantage lies in covering contents (either 
 machinery or stock) under a blanket form where the values 
 are shifting from building to building, or location to location, 
 yet are fairly stable in the aggregate, for it is not always 
 feasible with such shifting values to carry specific amounts 
 in each building or location. 
 
 The blanket form is often used with the distribution clause 
 and the 80% coinsurance clause and the advantage here lies 
 in securing the benefit of the lower rates offered 
 Blanket for the use of coinsurance without having to 
 
 Forms carry specific amounts in each building or lo- 
 
 cation as is otherwise required when the 80% 
 clause alone is used. As has been stated, it is not always 
 feasible to maintain just the right amount of insurance in 
 each place separately, whereas it is usually easy to keep track 
 of the values as a whole, and thus to comply with the con- 
 ditions of the coinsurance clause. It also gives a wider 
 margin for fluctuations of values, so that there is less likeli- 
 hood of having insufficient insurance, and thus having to bear 
 a part of the loss; besides there is the saving in the expense 
 of the extra 10% or 20% insurance that would be needed to 
 comply with the 90% or 100% clauses. 
 
 The insured should be cautioned and made to clearly under- 
 stand that when the distribution clause is used he must carry 
 sufficient insurance in the aggregate to supply 
 What Is his requirements in any particular building or 
 
 Necessary location as to the amount of indemnity needed, 
 knowing that whatever amount of insurance is 
 maintained in proportion to the total value of the property 
 covered will apply in the same relative proportion to the 
 value of such property in each specific building or location. 
 Also that he must carry enough insurance to value in the 
 aggregate to supply his needs with reference to the coinsur- 
 ance clause if one is attached to his policies. Sometimes the 
 distribution clause is used with the 90% coinsurance clause, 
 but it is not used with the 100% clause for obvious reasons. 
 
168 THE AGENTS KEY TO FIRE INSURANCE 
 
 There is no disadvantage to the insured in the use of a 
 blanket form with the distribution clause and the 80% 
 clause, as compared with a form covering specifically each 
 separate building and/or contents with the 80 7o clause, assum- 
 ing that the same relative amount of insurance is to be main- 
 tained in each case; nor as compared with a blanket form 
 and the 100% clause (except that he may have less insur- 
 ance) : But there is one disadvantage as compared with a 
 blanket form and the 90% clause without the distribution 
 
 clause, viz., that when the 90To clause alone is 
 Disadvantage used, and the insurance maintained is not less 
 
 than 90% of the total value of all the prop- 
 erty covered, then if the property covered in any one loca- 
 tion is entirely destroyed by fire the whole amount of the 
 policy applies thereon and therefore the entire loss is paid 
 out of the insurance, whereas if the distribution clause also 
 were used the insurance would apply on such property only 
 in the same proportion that the whole insurance bore to the 
 whole value, and the available insurance might therefore be 
 exhausted before the entire loss was paid subject to the dis- 
 tribution clause. For example, 6 buildings valued at $40,000, 
 insurance $36,000, value building destroyed $10,000, loss 
 $10,000, insurance applying $9,000, insurance pays $9,000. 
 
 PRO RATA CLAUSE 
 
 This clause commonly reads : * * This policy covers pro rata 
 
 of each of the above amounts aggregating $ , ' ^ and 
 
 means that the amount of the policy applies on each item in 
 the same percentage that the whole amount of the policy bears 
 to the whole amount of the items. For example, if a $5,000 
 policy applies pro rata over items aggregating $20,000, then 
 5/20 or 1/4 of the policy will apply on each item, which is 
 illustrated as follows: 
 
 Item 1 $9,000 Policy covers $2,250 
 Item 2 7,000 Policy covers 1,750 
 Item 3 4,000 Policy covers 1,000 
 
 Total $20,000 Policy covers $5,000 
 
 It will be seen therefore that the pro rata clause makes the 
 policy apply specifically and proportionately on each item, 
 and this is true whether the amount of the policy is greater or 
 less than the aggregate of the items. 
 
 If the foregoing example be reversed, it will illustrate the 
 latter; thus a $20,000 policy applies pro rata over items aggre- 
 
IMPORTANT CLAUSES ( COINSURANCE AND OTHERS) 169 
 
 gating $5,000 and then 20/5 or four times the policy will 
 apply on each item, which is illustrated as follows: 
 
 Item 1 $2,250 Policy covers $9,000 
 Item 2 1,750 Policy covers 7,000 
 Item 3 1,000 Policy covers 4,000 
 
 Total $5,000 Policy covers $20,000 
 
 Sometimes it is the desire not to have the form disclose how 
 large an amount of insurance is carried, and for this reason 
 the amount stated in the form as applying on each item will 
 be less than the actual amount of insurance carried on such 
 item. A favorite method is to make each item of the form 
 show some fraction of the real amount of insurance, for in- 
 stance, one-quarter; thus, if the real amount under all the 
 items aggregates $200,000, then the amount filled in for each 
 item is 1/4 of the real amount applying on such item, and 
 the sum of the items is $50,000. Each policy stipulates that 
 it covers pro rata of all the items, and a total of $200,000 
 insurance is then written under such form. If during the 
 term of the insurance an increased amount is needed on any 
 one item, it is usually simpler to place separate insurance 
 covering specifically on such item for the additional amount 
 required rather than to change the item on all of the pro rata 
 policies. 
 
 THREE-FOURTHS VALUE AND THREE-FOURTHS LOSS 
 CLAUSES 
 
 In some sections of the United States a clause is required 
 limiting recovery either to three-fourths of the cash value of 
 property covered, or, to three-fourths of any loss sustained, 
 the object being to eliminate moral hazard in so far as that 
 may be accomplished by making the insured sustain a part 
 of any loss that occurs. These clauses are variously worded, 
 the following being commonly used forms: 
 
 THREE-FOURTHS VALUE CLAUSE 
 
 ''It is a part of the consideration of this policy and the 
 basis upon which the rate of premium is fixed, that, in 
 the event of loss, this company shall not be liable for an 
 amount greater than three-fourths of the actual cash 
 value of the property covered by this policy at the time 
 of such loss, and in case of other insurance, whether 
 policies are concurrent or not, then for only its PRO 
 RATA proportion of such three-fourths value. 
 
170 THE AGENTS KEY TO FIRE INSURANCE 
 
 If this policy be divided into two or more items, the 
 foregoing conditions shall apply to each item separately. 
 
 Total insurance permitted is hereby limited to three- 
 fourths of the actual cash value of the property hereby 
 covered and to be concurrent herewith. '^ 
 
 THREE-FOURTHS VALUE CLAUSE (Another Form) 
 
 *'It is understood and agreed to be a condition of this 
 insurance, that, in the event of loss or damage by fire to 
 the property insured under this policy, this company shall 
 not be liable for an amount greater than three-fourths 
 of the actual cash value of each item of property cov- 
 ered by this policy (not exceeding the amount insured 
 on each such item) at the time immediately preceding 
 such loss or damage; and in the event of additional in- 
 surance, if any is permitted thereon, then this company 
 shall be liable for its proportion only of three-fourths 
 such cash value of each item insured at the time of fire, 
 not exceeding the amount insured on each such item. 
 
 $ other insurance, warranted concurrent here- 
 with, permitted. 
 
 It is understood and agreed that no additional insur- 
 ance is permitted unless amount allowed is entered in 
 blank space in paragraph next above." 
 
 THREE-FOURTHS LOSS CLAUSE 
 
 *'It is understood and agreed to be a condition of this 
 insurance, that, in the event of loss or damage under this 
 policy, this company shall not be liable for an amount 
 greater than three-fourths of such loss (not exceeding 
 the sum insured) and, in the event of additional insur- 
 ance permitted thereon, then this company shall not be 
 liable for an amount greater than its proportion of three- 
 fourths of such loss ; in both events the other one-fourth 
 to be borne by the insured." 
 
 The essential difference between the two clauses is, that, 
 under the three-fourths value clause the company is liable for 
 
 any loss that does not amount to more than 
 Explanation three-fourths of the actual cash value of the 
 
 property covered, and therefore it really does 
 not operate to make the insured stand any portion of his 
 loss unless such loss exceeds three-fourths of the actual cash 
 value; but, under the three-fourths loss clause the company 
 
IMPORTANT CLAUSES (COINSURANCE AND OTHERS) 171 
 
 is liable only for three-fourths of any loss that occurs, and 
 the insured bears one-fourth of any loss. It will be seen, 
 therefore, that the three-fourths loss clause should act as a 
 ^eater deterrent to carelessness, and presumably has a 
 greater moral effect than the three-fourths value clause. 
 
 TWO-THIRDS VACANCY CLAUSE. 
 
 Vacancy, and to a less extent unoccupancy, is recognized as 
 increasing the hazard of fire. With both there is the danger 
 that tramps, or boys, or other unauthorized persons, may 
 enter premises, and, by carelessness or with malicious intent, 
 set fire thereto. Then, too, property deteriorates rapidly un- 
 less it is in use and thus values are reduced, — such a condi- 
 tion always creating a potential moral hazard. 
 
 Frequently a charge is made for either vacancy or unoccu- 
 pancy, but in lieu of a charge the two-thirds vacancy clause 
 is sometimes attached to the policy continuing it in force for 
 only two-thirds of its amount or for only two-thirds of any 
 loss during the time of such vacancy or unoccupancy. 
 
 Two forms of clauses are given herewith : 
 
 Two-Thirds Vacancy Clause. ' * The Insur- 
 ance Company hereby consents that the building above 
 described may remain vacant for a period of not ex- 
 ceeding days from date hereof, to expire at noon. 
 
 And in consideration of the increased hazard occasioned 
 by vacancy, and in lieu of additional premium therefor, 
 it is hereby AGREED that while the premises so remain 
 vacant under this permit the amount of insurance under 
 this policy shall be reduced one-third ; and when attached 
 to a policy covering more than one item, the amount of 
 insurance on each item shall be considered as having been 
 reduced to the extent above named. This permit is given 
 and accepted under the foregoing conditions.'* 
 
 Two-Thirds Vacancy or Unoccupancy and Loss Clause. 
 
 "Permission is hereby given that the premises described 
 
 herein may remain vacant or unoccupied from the 
 
 day of 19 . . , to the day of 
 
 19 . . , at noon. 
 
 And in consideration of the increased hazard by reason 
 of such vacancy or unoccupancy it is hereby understood 
 and agreed, that, during such vacancy or unoccupancy 
 
172 THE AGENTS KEY TO FIRE INSURANCE 
 
 ONE-THIRD of the amount of the insurance hereunder 
 shall be and remain suspended and of no effect, and in 
 case of loss this company shall not be liable to pay or 
 make good to the insured exceeding TWO-THIRDS of 
 the amount insured on said premises, not exceeding 
 TWO -THIRDS of the amount of loss or damage there- 
 to.'^ 
 
 To either of the above clauses other conditions are some- 
 times added, for example: 
 
 ''Provided, also, that while said building is vacant (or 
 unoccupied), the doors and windows shall be securely 
 fastened, and the premises be in charge of a competent 
 person who shall from time to time personally examine 
 the same/' 
 
 "It is understood and agreed between this company 
 and the insured that the building shall be under the 
 supervision and care of some competent person during 
 such time, and the doors and windows securely closed 
 and locked or bolted, and all rubbish removed from said 
 building; otherwise this policy is null and void." 
 
CHAPTER XV 
 
 SPECIAL KINDS OF INSURANCE 
 (SIDE LINES) 
 
 Aircraft — Automobile — Crop — Earthquake — Explo- 
 sion, Riot and Civil Commotion (Including 
 Strike) — Flood — Hail — Mail Package (Parcel 
 Post) — Radium — Rain — Registered Mail — Sales- 
 men's Samples — Sprinkler Leakage — Tornado — 
 Tourist Baggage — Transportation — Water Dam- 
 age. 
 
 Aircraft Insurance. The marked developments in design- 
 ing, manufacturing and flying heavier-than-air machines that 
 took place during the war have led to greatly increased use 
 since then of both aeroplanes and hydroplanes for pleasure 
 and commercial purposes. In turn this has brought a de- 
 mand for the various forms of insurance now being granted 
 by some of the stock fire insurance companies. 
 
 Under a special form of policy following quite closely the 
 phraseology of the automobile form protection is given 
 against loss by fire, theft, collision and property damage 
 and, by special endorsement, losses from windstorm and from 
 mooring perils (seaplane) and other special risks. 
 
 The rates are high and vary according to the classification 
 of the pilot as regards his training, experience and record. 
 At present (1922) all policies contain the three-quarters loss 
 clause and there are various other special clauses and pro- 
 visions that are made a part of the contract as may be 
 necessary or required. 
 
 Insurance may be obtained not only to cover the owner 
 of the plane for property damage he may cause, but also 
 to cover the propertyholder against loss due to falling or 
 unmanageable planes. The demand for the latter cover was 
 stimulated by the disaster in Chicago where an aircraft 
 crashed into the dome of the Illinois Trust Company in the 
 heart of the city, killing several people and causing a con- 
 siderable property loss. 
 
 173 
 
174 THE AGENTS KEY TO FIRE INSURANCE 
 
 Automobile Insurance. Under this general term is in- 
 cluded insurance of all motor vehicles, whether electric, 
 gasoline or steam, and whether pleasure or business cars, 
 trucks, tractors or motorcycles. 
 
 The premium account for this class of business has become 
 a large one, having been over $80,000,000 in 1921. It is 
 estimated that there are 10,291,674 motor vehicles in use 
 (1922) in the United States and that only one in four is 
 insured, so the field for developing further business is a 
 large and growing one. The great bulk of cars are of the 
 pleasure type, gasoline driven and individually owned. 
 
 Automobile insurance is written by stock fire insurance 
 companies and also to some extent by mutuals and re- 
 ciprocals. 
 
 Two special forms of policies are now (1922) in current 
 use, one covering against the perils of fire and transporta- 
 tion, the other fire, transportation and theft; by special 
 endorsement liability for collision and for property damage 
 may be assumed under either. 
 
 The fire and transportation policy covers the automobile 
 and its equipment wherever it may be in the United States 
 
 and Canada against loss by fire arising from 
 Fire and any cause whatsoever and lightning; also while 
 
 Transpor- being transported in any conveyance by land 
 tation or water caused by the stranding, sinking, 
 
 collision, burning or derailment of such con- 
 veyance, including general average and salvage charges for 
 which the insured is legally liable. 
 
 The fire, transportation and theft policy covers the same 
 perils and in addition loss by theft, robbery or pilferage, 
 excepting theft, robbery or pilferage by any 
 Fire, Trans- person or persons in the insured's household 
 portation or in the insured's service or employment, 
 
 and Theft whether such theft, robbery or pilferage oc- 
 curs during the hours of such service or em- 
 ployment or not; the wrongful conversion, embezzlement, or 
 secretion bj'^ a mortgagor or vendee in possession under mort- 
 gage, conditional sale or lease agreement; and in any case, 
 other than in case of the theft of the entire automobile 
 described herein, the theft, robbery or pilferage of tools and 
 repair equipment. 
 
 Each form of policy contains a somewhat extended de- 
 
SPECIAL KINDS OF INSURANCE (SIDE LINES) 1T5 
 
 scription of the automobile and certain facts in relation to 
 its ownership, intended uses and where it is customarily kept. 
 There are various provisions and conditions affecting liability 
 of the company and recovery by the insured, all intended 
 to make a clear and equitable contract. 
 
 Collision liability may be assumed by special endorsement 
 and covers loss or damage by accidental collision excepting: 
 
 (1) Loss or damage to any tire, due to puncture, cut, 
 
 gash, blowout or other ordinary tire trouble; and 
 
 excluding in any event loss or damage to any 
 
 Collision tire, unless caused in an accidental collision 
 
 which also causes other loss or damage to 
 
 the insured automobile; 
 
 (2) Loss or damage occurring while the automobile in- 
 
 sured is engaged in any race or speed contest or 
 while being operated by any person under the 
 age limit fixed by law or in any event under the 
 age of sixteen years. 
 
 There is also a provision that the amount recoverable for 
 accidental collision shall not exceed the actual cash value 
 of the property at the time of any loss or damage, but shall 
 not be limited by the amount of insurance named in the 
 policy. This means that if a policy is written for $1,200 
 fire, transportation (and theft) on a car actually worth 
 $2,000 which was totally wrecked by collision that the com- 
 pany would be liable for $2,000. Collision claims may be 
 cumulative without limit as to the number of accidents during 
 the policy year. Collision insurance is charged for on the 
 basis of a stated premium for a particular car rather than a 
 stated rate per hundred dollars of insurance and the formula 
 for arriving at such stated premium considers the type, age 
 and average value of each kind and model of automobile 
 manufactured. 
 
 In addition to the liability assumed for the full collision, 
 
 forms are also in use which contain a deductible clause 
 
 reading as follows: **The perils insured 
 
 Deductible against hereunder include accidental collision 
 
 Clause where the damage from such collision to the 
 
 automobile and/or equipment herein described 
 
 is in excess of $ " (either $50 or $100 as the 
 
 case may be) *'€ach accident being deemed a separate claim 
 and said sum to be deducted from the amount of each claim 
 when determined." 
 
176 THE AGENTS KEY TO FIRE INSURANCE 
 
 Property damage liability may be assumed by special en- 
 dorsement which covers the insured's legal liability to other 
 persons for the injury to or destruction of the 
 Property property of such persons (including resultant 
 
 Damage loss of use of such property), and in addition 
 
 thereto the legal expenses incurred by the 
 insured with the consent of this Company in connection 
 with such injury or destruction, resulting solely and directly 
 from the ownership, maintenance or use of the automobile 
 herein described, provided such injury or destruction occurs 
 during the period covered by this policy, subject, however, 
 to the following limitations and exclusions : 
 
 (1) Property of the insured, or in charge of the insured 
 
 or of any of his employees, or carried in or upon 
 the automobile described herein, is excluded from 
 this coverage; 
 
 (2) This company's liability for injury or destruction 
 
 is limited to the actual cash value of the property 
 destroyed at the time of its destruction and/or 
 the actual cost of the suitable repair of the prop- 
 erty injured, but in no case shall this company be 
 liable with respect to claims (including claims 
 for loss of use) arising from one accident for 
 more than $1,000, and in addition thereto the 
 legal expenses incurred by the insured with the 
 consent of this Company. 
 
 (3) The insurance under this endorsement does not 
 
 attach or cover while the automobile insured is 
 engaged in any race or speed contest, or while 
 being operated by any person under the age limit 
 fixed by law or in any event under the age of 
 sixteen years. 
 
 [Note : Additional insurance for a greater sum than $1,000 
 in any one accident may be secured by the payment of a 
 slightly higher premium.] 
 
 For rate making purposes, motor vehicles are divided into 
 four general classes, (1) private passenger cars, (2) com- 
 mercial cars, (3) public automobiles and (4) 
 Rating dealers' and manufacturers' cars. Manuals 
 
 are published containing all the rates, rules 
 and forms for all cars included in these groups that are on 
 the market and in use, showing the year of manufacture of 
 
SPECIAL KINDS OF INSURANCE (SIDE LINES) 17? 
 
 the various models with their horse power, list price, etc., 
 for each make. 
 
 A large variety of special forms, rates and rules has been 
 developed to care for the various conditions of the business 
 and the uses to which motor vehicles have been adapted. 
 Special forms and rates are used for dealers' open policies, 
 manufacturers' output and others, and special rates apply to 
 Fire Department apparatus, hearses, ambulances, patrol 
 wagons and street sweepers, oil trucks and commercial fleets 
 of ten or more cars. 
 
 There are also a number of special endorsements that may 
 be attached to policies under certain conditions. Among 
 these may be mentioned: 
 
 Additional Body, 
 Bumper, 
 
 Equipment Exclusion, 
 Fire Extinguisher, 
 Livery and Renting, 
 Locking Device, 
 Monthly Reduction, 
 Pilferage, 
 Speed Contest, 
 Personal Effects. 
 
 Automobile Diminishing Clause (used in some territories). 
 '*It is a part of the consideration for which this policy is 
 issued that the amount of insurance in force thereunder 
 shall be reduced (without return of premium or further 
 endorsement) by 2% of the original amount at the end of 
 each calendar month during the first year and by 1% of 
 the original amount at the end of each calendar month 
 thereafter. 
 
 The amount of insurance in force at any time shall be 
 considered as a maximum only and shall in no way be con- 
 strued as fixing a value on the automobile insured hereunder, 
 it being understood and agreed that in case of loss the 
 terms and conditions of the policy relating to adjustment and 
 appraisal shall remain in full force and effect." 
 
 Insurance may also be procured on automobiles against 
 loss by tornado, earthquake, explosion, riot and civil commo- 
 tion, hail, water damage and other similar perils, all of which 
 are assumed under a special endorsement attached to the 
 regular automobile policy. 
 
178 THE AGENTS KEY TO FIRE INSURANCE 
 
 Automobile insurance rates, forms, rules and requirements 
 have been in a state of flux for some years, for it is of such 
 recent origin and marked growth that it has been difficult 
 to keep pace with the public requirements, but practices are 
 gradually approaching a more stable condition, and should 
 reach an equilibrium before long. 
 
 Because of the frequent changes in rates and forms, it is 
 necessary for agents and brokers to make sure at all times 
 that they have the latest information promulgated. 
 
 Crop Insurance. There have been several attempts on the 
 part of mutual and stock companies to insure growing crops 
 against damage from various and sundry causes, but so far 
 these have not been successful from all standpoints and the 
 sale of such indemnity upon well settled principles has not 
 yet been developed to a point where it is readily available 
 upon satisfactory terms and under a satisfactory contract 
 to all purchasers. There have been three general plans tried. 
 The first plan contemplated insurance covering all the 
 hazards to which crops are subject with the exception of 
 fire, fioods, winterkill and failure on the part of the farmer 
 to properly till and care for his crops, the amount of in- 
 surance being fixed at a uniform sum for each acre insured. 
 
 Under the second plan the amount of insurance to be 
 written per acre was fixed on the basis of actual investment 
 in the crop by placing a specified value on each operation 
 in preparing the soil and tilling and harvesting the crop, 
 then adding to this sum a reasonable allowance for seed and 
 rental value of the land. It undertook to insure loss or 
 damage by the elements, including frost, winterkill, flood 
 and drought, and from insects or disease, but not if resulting 
 from fire, hail, wind, tornado, failure of the seed to germinate, 
 or failure on the part of the farmer to properly do his part 
 in seeding, cultivating or harvesting the crop. 
 
 Under the third plan the basis for determining the amount 
 of insurance is the average yield during the past five years 
 together with the price of the product during the same 
 period. 
 
 The rates that have been charged average around 7 or 
 8% and the following are some of the provisions which 
 have been contained in the specially prepared policies used 
 for this class of indemnity. 
 
 ''In case the crop insured hereunder shall be totally 
 destroyed and/or abandoned by reason of any of the hazards 
 
SPECIAL KINDS OF INSURANCE (SIDE LINES) 179 
 
 insured against, before the time of harvest, the liability of 
 this company shall not exceed 75% of the cost of crop 
 operations actually performed up to the time of such total 
 destruction or abandonment, nor more than 75% of the 
 amount insured hereunder/' 
 
 ''If at the time of harvest and/or threshing the crop 
 yield by reason of any other hazards insured against does not 
 equal or exceed in quantity the estimated yield set forth in 
 the insured's application, the company's liability for de- 
 ficiency in crop yield shall not exceed that proportion of 
 the amount insured hereunder that the deficiency in the 
 crop yield below the estimated yield bears to the estimated 
 yield, but in no event shall this company be liable for 
 deficiency in crop yield in case the crop harvested shall, by 
 standard measure, or in the case of a crop which requires 
 to be threshed, by threshing machine measure, equal or 
 exceed the estimated yield set forth in the insured's applica- 
 tion attached hereto. 
 
 "It at the time of harvest and/or threshing it shall be 
 proved by the insured that the crop harvested has suffered 
 damage in quality by reason of any of the hazards insured 
 against hereunder, the liability of this company for such 
 damage shall not exceed the same percentage of the amount 
 of insurance remaining, after deducting from the total 
 amount insured, the amount, if any, allowed for deficiency 
 in crop yield as the ascertained percentage of damage to 
 the ci*op harvested. 
 
 ''In no event shall the liability of this company exceed 
 what it would cost at the time of harvest and/or threshing 
 to replace or make good any part or all of the estimated 
 yield set forth in the application with products of like kind 
 and sound quality; no more than the amount, if any, by 
 which the amount insured shall exceed the market value of 
 the crop harvested." 
 
 The Government has interested itself in this subject and 
 published bulletin No. 1043 of the Department of Agriculture 
 as of January 23rd, 1922, which goes into considerable ex- 
 planation of the whole subject. 
 
 The real need for crop investment insurance comes not 
 only from the farmer but also from bankers and merchants 
 who are interested as creditors to a large extent dependent 
 on successful crops for the liquidation of debts for money 
 loaned or goods sold on credit. A plan for crop insurance 
 
180 THE AGENTS KEY TO FIRE INSURANCE 
 
 which is equitable, economical and practical would tend to 
 place farming on a better business basis than it can be 
 where the farmer himself takes the whole risk of loss by 
 drought, insects or other perils. 
 
 Earthquake Insurance. This form of insurance has a very 
 limited demand, being confined almost exclusively to the 
 Pacific Coast. When written, the standard fire policy is used 
 with a special form which provides : 
 
 That the word earthquake shall be substituted for the word 
 fire wherever the latter occurs in the printed portions of the 
 policy; 
 
 That the Company shall not be liable for loss or damage 
 caused by fire, whether the fire be caused by earthquake or 
 otherwise ; 
 
 That if the property be damaged or destroyed partly by 
 earthquake and partly by fire, the Company shall not be 
 liable for a greater amount than the difference between the 
 actual cash value of the property at the time of such loss or 
 damage and the actual cash value of the portion of said prop- 
 erty destroyed by fire. 
 
 In addition to the foregoing, certain provisions of the 
 printed portions of the policy are eliminated, being the cease 
 operations, the mechanics, the fallen building, and the va- 
 cancy or unoccupancy clauses, and those provisions relating 
 to illuminating gas, and the keeping of certain enumerated 
 articles, such as benzine, fireworks, etc. 
 
 The 1% Loss Exemption, and the 70% Coinsurance Clauses 
 are attached; otherwise the contract is subject to the printed 
 conditions of the fire policy. 
 
 Rates on the Pacific Coast vary according to construction 
 of buildings, these being divided into four classes, the rates 
 applying with 70% clause run from about 12i/^ cents to 
 32 cents. 
 
 Contents are divided into two classes according to esti- 
 mated damageability by earthquake and rates are 25% and 
 50% respectively higher than the rate for building they 
 are in. 
 
 Explosion, Riot and Civil Commotion (sometimes called 
 *' Strike '^ insurance). This class of indemnity, inaugurated 
 in somewhat different form during the late war, is given 
 permanent value and salability by the complexities and 
 problems of present business and social conditions. 
 
SPECIAL KINDS OF INSURANCE (siDE LINES) 181 
 
 The developments that have accompanied modern manu- 
 facturing methods, processes and machinery and the in- 
 creasing use of various chemicals and of gasoline, naphtha, 
 acetylene and oil fuel, bring possibilities of explosion for- 
 merly unknown or rare, so that severe damages not covered 
 by the regular fire insurance policy may easily occur. 
 
 The industrial and social disorders developed by present 
 conditions, and the large numbers of different nationalities 
 existing among our population and not yet assimilated pro- 
 vide an ever present potentiality for trouble; agitation or 
 resentment over real or fancied grievances may easily find 
 an outlet in crime and violence resulting in destruction of 
 valuable property. There have been notable instances of 
 these eventualities in the past, such as bombing of newspaper 
 offices and the homes of public officials, judges, capitalists 
 and heads of large industries; in the Wall Street, New York, 
 bomb explosion, the Youngstown, Ohio, disturbances, the 
 Boston strike and the race riots at various points. No one 
 can tell when or where the next outbreak may occur or 
 how serious it may be. 
 
 Losses from explosion or riot and civil commotion are not 
 covered under the Standard Fire Policy which states: 
 '^This company shall not be liable for damage occur- 
 ring by explosion, unless fire ensues, and in that event, 
 
 for loss or damage by fire only." 
 
 *'Nor for loss or damage caused directly or indirectly 
 
 by invasion, insurrection, riot, civil war or commotion 
 
 or military or usurped power, or by order of any civil 
 
 authority. ' ' 
 
 The demand for protection against such losses has been 
 met by the preparation of special forms of policies that 
 cover as follows: 
 
 An EXPLOSION policy covers against direct loss to prop- 
 erty by explosion whether originating on the premises of 
 insured or elsewhere, occurring from accidental or malicious 
 causes, including processes of work and materials. It ex- 
 cludes only explosion originating on the insured's premises 
 in steam boilers, pipes, fly wheels, engines and machinery 
 connected therewith, which are intended to be covered 
 specifically under casualty insurance policies. Explosion from 
 other than steam piping is therefore covered. 
 
 A RIOT AND CIVIL COMMOTION policy gives much 
 more complete protection since it covers all that is con- 
 
]82 THE AGENTS KEY TO FIRE INSURANCE 
 
 templated under an explosion policy and in addition covers 
 riot, insurrection and civil commotion, including that which 
 may come about through a strike. Thus it oflcers protection 
 against loss of property by explosion and by industrial dis- 
 orders, including destruction of buildings, machinery and 
 stocks by mobs or by employees on strike, or from bombing, 
 or concerted violence arising through ignorance, or from 
 vicious or anarchistic sources. 
 
 The insurance may be written to cover building, machinery 
 and/or stock blanket, or any one of them specifically if 
 desired; usually the 50% coinsurance clause is required, 
 with further credits for the 80% or 100% clauses. 
 
 Policies may be written covering rents, and rental value, 
 leasehold, use and occupancy, profits and commissions, tor- 
 nado, legal liability and other insurable interests as well as 
 direct property damage. The rates applying differ for the 
 various classes of risks and at present (1922) range from 
 5c. per $100.00 per annum upward. 
 
 By specific endorsement the following clauses may be at- 
 tached ; 
 
 Conseauential Loss Clause. *'This insurance being other- 
 wise against only direct loss or damage (in consideration of 
 additional rate charged, this Company also assumes liability 
 not exceeding the amount of this policy remaining after the 
 liability of this Company for any direct loss or damage has 
 been determined) for any loss or damage to the property 
 described while contained in the above-named building or 
 buildings caused by change of temperature, resulting from 
 the total or partial destruction or disablement of the cooling 
 apparatus, connections or supply pipe by explosion or other 
 hazards specifically assumed hereunder." 
 
 Foundation Clause. ''Foundations and other parts of the 
 building and the appurtenances thereof, which are below 
 the under surface of the lowest basement floor, or, where 
 there is no basement, which are below the surface of the 
 ground, are excluded from being covered by this policy, 
 but no other part of the structure or of the appurtenances 
 thereof are so excluded." 
 
 Glass Breakage Clause. This company shall also be liable 
 for loss and/or damage to glass which may be a part of 
 the buildings insured, to an amount, however, not exceeding 
 10% of the value of such buildings; subject in all other 
 
SPECIAL KINDS OF INSURANCE (siDE LINES) 183 
 
 respects to the printed conditions of this policy and/or 
 conditions attached hereto, but in no event shall this com- 
 pany be liable for a greater proportion of such loss or damage 
 than the amount which this policy bears to the total amount 
 of all similar insurance whether or not such other insurance 
 shall include liability for loss or damage to glass. 
 
 Thirty Day Notice of Cancellation Clause. The 8th para- 
 graph of the printed conditions of this policy is hereby 
 amended to read as follows: 
 
 ''This policy shall not be subject to cancellation by 
 . the insured or by this company for a period of ninety 
 days beginning with the date of this policy, but there- 
 after this policy shall be cancelled, at the request of 
 the insured, provided at least thirty days' previous 
 notice shall have been given in writing by the assured 
 to the company, of the desire for such cancellation, in 
 which case the company shall upon demand and sur- 
 render of this policy, refund the excess of paid premium 
 above the customary short rates for the expired time, 
 meaning the customary short rate of fire insurance prac- 
 tice. This policy may be cancelled by the company after 
 the end of ninety days, by giving to the insured a thirty 
 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 and surrender of 
 this policy. Notice of cancellation shall state that said 
 excess premium (if not tendered) will be refunded on 
 demand." 
 
 Pillage and Looting Clause. ''It is a condition of this in- 
 surance that the exclusion of loss by 'theft' in the printed 
 conditions of this policy shall not be construed to exclude 
 direct loss from pillage and/or looting, when such pillage 
 and/or looting occurs during and at the immediate place of 
 a riot, subject in all respects to the conditions and limitations 
 of this policy." 
 
 Absolute Non-Cancellation Clause. In consideration of the 
 rate of premium at which this policy is written it is stipu- 
 lated and made a condition of the contract that this policy 
 shall not be cancelled during its term by either of the par- 
 ties hereto, any printed conditions in this policy to the con- 
 trary notwithstanding. 
 
184 THE AGENTS KEY TO FIRE INSURANCE 
 
 Flood Insurance. This form of indemnity is of recent 
 origin in the United States, but there is a very considerable 
 demand for such protection in the vicinity of rivers and 
 dams and along the sea coast and an increasing amount is 
 being sold each year. 
 
 It is written under a special form of policy which covers 
 against all direct loss or damage by water caused by flood, 
 overflowing rivers and/or tidal wave and by removal from 
 premises so endangered; all risks of fire and of windstorm 
 are excluded. 
 
 By endorsement the policy may be extended to cover the 
 accidental discharge or leakage of water from water supply 
 mains or public hydrants located outside the premises and 
 the form contains a stipulation that the company shall not 
 be liable for loss or damage arising from breakage or leakage 
 from any system of piping or apparatus for the use of 
 water, including the standpipes, hose, automatic sprinkler 
 system, and all accessories thereto within the building or 
 buildings, it being the intent to limit the liability to loss 
 or damage caused by accidental inflow of water from without, 
 but not to include damage due to roof leakage or damage 
 caused by rain entering windows, or sky lights, or from 
 choked sewers, or damage caused by the fire department or 
 fire protection apparatus. 
 
 Customarily basement stocks are not covered under the 
 policy, although they may be included for limited amounts 
 by special endorsement. 80%, 90% or 100% coinsurance 
 clause is required. The policies are written only on applica- 
 tion and' premium is payable in advance. Rates vary accord- 
 ing to location, season and previous flood record. 
 
 Hail Insurance. Hail insurance on growing crops is written 
 throughout the United States, but chiefly in the grain states 
 west of the Mississippi River. Special forms of policies 
 cover against loss or damage by hail to such crops as wheat, 
 rye, corn, hay and alfalfa and also in some sections fruit 
 trees and tobacco. 
 
 The unit is usually one acre and the limit of liability 
 that may be assumed this year (1922) is $20.00 per acre on 
 grain on non-irrigated land and $30.00 per acre on grain on 
 irrigated land. The rate runs from 3% to as high as 20% 
 in some sections. Because of the technical nature of the 
 adjustments and the experience necessary for this work, 
 losses for practically all companies writing the class in the 
 
SPECIAL KINDS OF INSURANCE (siDE LINES) 185 
 
 Central and Western States are adjusted by the Western 
 Adjustment and Inspection Company which maintains a 
 special force for this purpose. 
 
 The business is seasonal, insurance being taken out usually 
 when the farmer sees he has a crop in sight. The writing 
 of this class usually starts first in Texas and Oklahoma 
 during March and in other sections at later dates up to 
 July in North Dakota. All policies cease to cover when the 
 crop is harvested, but in any event terminate on September 
 15th or October 1st according to locality. 
 
 Hail insurance on other property than growing crops is 
 usually assumed in connection with tornado insurance by 
 attaching to the tornado policy (not to a fire policy) a rider 
 reading as follows: 
 
 ''In consideration of $ extra premium, it 
 
 is made a condition of this insurance that this policy 
 shall cover any direct loss or damage to the property 
 described herein, caused by Hail, whether accompanied 
 by wind or not; provided, however, that if there shall be 
 any other tornado insurance on said property, this com- 
 pany shall be liable only pro rata with such other 
 tornado insurance for any direct loss or damage caused 
 by Hail, whether such other tornado insurance covers 
 direct loss or damage caused by Hail or not. It is a 
 further condition of this insurance that this company 
 shall not be liable for loss or damage caused by Hail 
 to hay, grain or straw, in fields or in stacks. ' ' 
 
 Mail Package (Parcel Post) Insurance. The enormous 
 number of packages handled by the Post Office Department, 
 being in excess of 1,000,000,000 annually,' with all the oppor- 
 tunity for loss from fire, wreck, theft, breakage and non- 
 arrival due to various causes, has led to the development of 
 this form of insurance, which is becoming of growing im- 
 portance with the increase in this convenient and inex- 
 pensive form of shipping. 
 
 The opportunity for loss has been recognized by the United 
 States Government which maintains a system of insurance 
 that in 1921 is said to have paid losses amounting to over 
 $5,000,000, which indicates the wide field that exists for 
 the sale of such indemnity. 
 
 For the occasional shipper the Government insurance is 
 probably the most convenient, but for those shipping goods 
 regularly by mail a comparison of the Government method 
 
186 THE AGENTS KEY TO FIRE INSURANCE 
 
 with that of the insurance company may disclose advantages 
 for the latter. 
 
 Government Method: — This contemplates that a package 
 must be taken to the Post Office and receipt obtained, re- 
 sulting in time being spent waiting in line especially at busy 
 hours of the day when goods are most apt to be shipped. 
 Collection of a loss claim calls for considerable delay because 
 of the routine through which it must go before the claim 
 can be recognized and paid by the Government. 
 
 Insurance Company Method: — There are two ways of 
 writing this class of insurance. The one most commonly 
 used is called the ' * certificate method ' ' under which a policy 
 is issued with a book of 100, 200 or 500 certificates attached. 
 To insure thereunder the name and address of consignee, kind 
 and value of article insured, date and class of mail by which 
 shipped is entered on the certificate stub and the coupon 
 detached for inclosure with package or invoice. The cost of 
 such a policy usually runs from 5c. to 10c. per coupon or 
 certificate. 
 
 The other method is called the ''reporting form" and is 
 used by large shippers. The policy provides for reporting 
 shipments on large sheets or bordereaux and an agreed rate 
 is charged for insurance equal to the total value of the 
 goods shipped. A deposit premium of say $100 is required 
 and monthly reports of shipments are made to the company 
 and additional premium paid after the initial premium is 
 exhausted. 
 
 Under either method from the moment a package passes 
 into the custody of the Post Office, either through delivery 
 to carrier, or deposit in the collection box, or at the Post 
 Office itself, the contents are insured against loss due to 
 non-arrival from whatever casualty until delivered to con- 
 signee. By either of these methods the shipper is enabled 
 to preserve in convenient book form the necessary record 
 of his shipments and effects insurance in his own premises, 
 thus avoiding waste of time and cost of messenger in sending 
 to Post Office. 
 
 If the package is not received by the consignee within 
 a reasonable time, or is delivered in damaged condition, claim 
 is made on company or its agent under a simple form and 
 is customarily paid without delay. 
 
 While the amount of premium from this class is not great 
 
SPECIAL KINDS OF INSURANCE (siDE LINES) 187 
 
 compared with some other lines, it is steadily increasing and 
 is one of the ways of helping out the premium account. 
 
 Radium Insurance. Among the interesting forms of in- 
 surance called for by modern science is that covering the 
 loss of radium. This valuable product is in use by doctors, 
 surgeons and hospitals and very tiny quantities cost a great 
 deal of money; radium having about the bulk of a small 
 bead is worth $10,000. 
 
 Insurance thereon is issued under a special form of policy 
 and covers against all risks of loss or damage, while within 
 the limits of the United States and/or Canada, except in- 
 vasion, insurrection, riot, civil war or commotion, oi^ military 
 or usurped power or risks of contraband or illicit trade. 
 *'A11 risks" includes fire, lightning, windstorm, flood, theft, 
 breakage, disappearance and other causes. 
 
 Practically the only special condition in the form is one 
 requiring that a patient being treated by the radium insured 
 shall be under the care and direction of a doctor, nurse or 
 other attendant. This is to avoid the possibility of a patient 
 taking off the bandages because of irritation or other cause 
 and losing the radium. 
 
 Rain Insurance. The sale of rain insurance is of quite 
 recent origin in this country although it has been in vogue 
 in England and continental Europe for some years. 
 
 It is written under a special form of policy upon applica- 
 tion furnished by the insured through agent or broker and 
 is intended to provide protection against loss sustained 
 because of rain, snow, hail or sleet. 
 
 Outdoor events, whether of a business or charitable char- 
 acter, are largely dependent on fair weather for success. 
 Often in preparing for an event considerable sums of money 
 are spent which may be lost if rain occurs, to say nothing 
 of anticipated profits. In many legitimate and proper ways 
 rain insurance serves the useful purpose of providing in- 
 demnity for losses that cannot be avoided otherwise. 
 
 Various forms and conditions are in use, but in a general 
 way the policy provides indemnity for loss of expenses, 
 or of profit, or income, or gate receipts if rain falls during 
 certain hours of a given day or during several stated days. 
 The policy stipulates that there can be no recovery unless 
 the rainfall, established by a Government observer, is at least 
 1/lOths or 2/lOths of an inch, as the case may be, during 
 the time specified in the policy. 
 
188 THE AGENTS KEY TO FIRE INSURANCE . 
 
 For obvious reasons no order is accepted unless received 
 and paid for at least five days before the event takes place. 
 
 The business is of a hazardous nature not subject to close 
 calculation and liable to very large losses if there is wide 
 spread rain on such days as May 30th, July 4th and Labor 
 Day. The rates are correspondingly high, ranging from 4% 
 upward. If recovery is based on 1/10" rainfall, rates are 
 higher than if based on a greater rainfall, because loss might 
 be sustained in the one case and not in the other. Likewise 
 the longer the hours covered the higher the rate because of 
 the greater chance of loss occurring. Elaborate and care- 
 fully worked out tables of rates apply to the various sections 
 of the country and to various seasons of the year, all the 
 result of detailed study of Government weather reports over 
 a series of years. 
 
 The opportunities for selling rain insurance are much 
 greater than might be thought on first consideration, for 
 instance, all of the following are natural subjects of Rain 
 insurance: baseball games; state and county fairs; auto- 
 mobile and horse races; parades, amusement parks; conces- 
 sions of all kinds ; block parties ; dances ; church and fraternal 
 fairs and entertainments; athletic meets; football games; 
 tennis tournaments; prize fights; live stock sales; horse 
 fairs; special merchandise, or holiday sales; celebrations of 
 all kinds, and any event whose success would be injured by 
 rainfall. 
 
 Registered Mail Insurance. Under special form of policy 
 insurance is granted against loss of bonds, coupons, bank 
 notes, legal tender, certificates of stock, and similar securi- 
 ties, including currency and postage stamps, sent by regis- 
 tered mail within certain prescribed areas. Such policies 
 usually cover against loss, however caused, whether from 
 fire, lightning, tornado, theft, wreck, or any other cause, from 
 the time of deposit and registration in the Post OflSce to ar- 
 rival at the place of address. There are special conditions 
 which differ somewhat in the policies issued by the various 
 companies. Usually not more than market value, or a slight 
 percentage in excess thereof, is recoverable. 
 
 Salesmen's Samples Floater Insurance. The samples car- 
 ried by travelling salesmen often run into large values and 
 are subject to loss by fire, lightning, collision, derailment, 
 theft and other causes and this has led to the development 
 of a special form of insurance for this class. It is sold 
 
SPECIAL KINDS OF INSURANCE (siDE LINES) 189 
 
 to manufacturers, wholesalers, jobbers and selling agents 
 to cover all samples in the hands of all their salesmen 
 against such losses from the time they leave the premises 
 of the insured until their return, subject to such conditions 
 as may be made a part of the policy contract. 
 
 Fires are frequent in hotels, baggage cars and railroad 
 depots and accidents often happen in transportation by rail- 
 road or truck. Hotel keepers and truckmen are not always 
 financially responsible and their liability is somewhat proble- 
 matical, while that of common carriers is limited by law to 
 $100, unless at the time of shipment a higher value is 
 declared and excess charges paid, so that with all these 
 factors taken into account the insurance offered is much 
 better and more certain protection at much less cost. 
 
 Usually no coinsurance clause is required on policy, but 
 the amount of insurance applying on samples in the hands of 
 any one salesman is limited and as a rule companies require 
 that the total insurance carried shall be approximately 90% 
 of the estimated value of goods in the hands of all salesmen 
 at any one time. 
 
 Sprinkler Leakage Insurance. This form of insurance has 
 arisen because of the possibility of loss by water leaking from 
 an automatic sprinkler system. A special form of policy is 
 used, which covers against all direct loss or damage by sprink- 
 ler leakage, but not damage from leakage caused directly or 
 indirectly by fire, lightning, cyclone, tornado, windstorm, 
 earthquake, explosion or blasting; for these are held to be 
 covered properly under fire, tornado, explosion or casualty 
 policies; neither does it cover against loss caused directly or 
 indirectly by the fall or collapse of any building or any part 
 thereof, unless such fall or collapse is caused by the acci- 
 dental leakage of water from the automatic sprinkler system 
 or the tanks supplying it; as, for instance, the bursting of a 
 pipe that results in the washing out of foundations, thereby 
 damaging the building and possibly causing it* to fall. The 
 policy does not cover loss due to stoppage or interruption of 
 business, nor damage caused by the material parts of a tank 
 in falling, unless such liability is specifically assumed. 
 
 Sprinkler leakage is defined as leakage, discharge or pre- 
 cipitation of water from the automatic sprinkler system, or 
 tanks supplying it, and may be caused by freezing, or by 
 mechanical injury, or by defective joint or sprinkler head, or 
 from leaky pipe or tank, or by the breaking of a pipe, or by 
 the opening of a sprinkler head without apparent cause. 
 
190 THE AGENTS KEY TO FIRE INSURANCE 
 
 As a rule, sprinkler leakage insurance is made binding only 
 upon specific authorization by the company or its field men; 
 policies are usually issued by the company and may be made 
 to cover building and/or contents, and are also written to 
 cover against loss of use and occupancy due to sprinkler 
 
 Tornado or Windstorm Insurance. Special forms of policies 
 are issued to insure against direct loss or damage to building 
 or contents by tornado or windstorm ; if the roof is blown off, 
 or walls, doors or windows blown in, damage by water, rain 
 or snow entering through such openings is also covered. 
 
 The same forms that are used on fire policies may generally 
 be used on the regular tornado policies for describing the 
 property covered, subject to such restrictive or qualifying 
 clauses and conditions as are locally prescribed. 
 
 The 50% Coinsurance Clause is in general use on tornado 
 forms except in states where coinsurance is prohibited. 
 
 The Lightning Clause should not be attached to a tornado 
 policy, and the permits usuallj^ granted when issuing a fire 
 policy are unnecessary on a tornado policy, since its printed 
 conditions are not the same as those of the fire insurance 
 polic5\ 
 
 Millions of dollars' worth of property is destroyed each 
 year by tornadoes or windstorms. Neither city nor country is 
 secure from their devastating power; they constitute the one 
 potentiality for property loss that man is powerless to pre- 
 vent or mitigate. 
 
 Tourist Baggage Insurance. This form of insurance is 
 intended to cover personal effects outside the permanent 
 residence of insured against loss due to the hazards of fire, 
 theft, lightning, transportation and navigation. It not only 
 insures the traveller while away from home, but also covers 
 articles usually kept at golf, country, sporting and other 
 clubs, and clothing at laundries, cleaning and tailor shops, 
 and effects taken on automobile trips, week-end parties and 
 other outings. Because of the broad and liberal cover and 
 the many possibilities of loss from which it protects the 
 insured, an increasing amount of this class of insurance is 
 being carried all the year round, rather than merely when 
 one is taking a trip. The following two forms of policies 
 are in general use: 
 
 T. A. Limited Cover: — This insures baggage and personal 
 
SPECIAL KINDS OF INSURANCE (siDE LINES) 191 
 
 effects of the insured, or any member of his family, or 
 accompanying servants, wherever the property may be 
 against any and all risks and perils of fire, theft, lightning, 
 navigation and transportation while in transit by or in the 
 custody of any railroad, express, transfer or transportation 
 company, or steamship, or watercraf t ; against loss or damage 
 by fire and lightning while in any building except in the 
 permanent residence of the insured, or in storage, or theatre, 
 or other places of public amusement, or if specifically in- 
 sured. Property is also covered against loss by fire while 
 accompanying the insured on any automobile or motorcycle, 
 or against loss caused by stranding, sinking, burning or 
 collision of a yacht on which the insured is a guest. The 
 loss by theft is limited to entire trunks, valises or other 
 receptacles of travel, from rooms occupied by insured or 
 when checked in any hotel, boarding house or railroad ter- 
 minal. It does not cover pilferage, or larceny, or theft of 
 jewelry nor of hand baggage while in the custody of the 
 insured. The present rate (1922) is around 1% per $100. 
 
 T. B. Broad or Pilferage Cover. This form is a very much 
 broader cover and includes theft, pilferage and larceny, 
 except of automobile accessories, also jewelry subject to 
 agreed limitations. Because of the broader undertaking it 
 covers only in the United States, Canada and Great Britain, 
 but may be extended by endorsement to cover other countries 
 or world wide. The present rate (1922) up to $2,500 is 
 around 2^/2% per $100 and a less rate for additional in- 
 surance beyond $2,500. 
 
 Comparatively few people know of this convenient form 
 of floating insurance, or that it will cover not only the head 
 of the family but also all other members and their servants 
 while accompanying them. All people who travel, or have 
 automobiles, or belong to clubs, or act as delegates, are 
 prospective purchasers. 
 
 Transportation Insurance. The demand for transporta- 
 tion insurance is increasing for a variety of reasons, being 
 stimulated particularly by the adoption of the motor truck 
 as an auxiliary means of transporting goods. 
 
 The liability of common carriers is limited, whether rail- 
 road, express companies or trucking concerns, and frequently 
 there is no liability unless carelessness or negligence can be 
 shown. In the case of trucking companies frequently there 
 is little or no financial responsibility and the shipper often 
 
192 THE AGENTS KEY TO FIRE INSURANCE 
 
 finds it impossible for this reason to collect any amount 
 due him for a loss. Experience has shown that settlement 
 from railroad and express companies may be secured only 
 after very considerable delays. All of these conditions are 
 factors in creating a demand for this special form of insur- 
 ance furnished by stock fire insurance companies. 
 
 Transportation insurance is divided into two general 
 groups, the *Hrip transit" policy and the '' transportation 
 floater" policy, either of which is available whether ship- 
 ments are made by rail or by truck. 
 
 The trip transit form of policy is intended to cover a 
 single shipment of goods, while in transit from one point to 
 another by rail or truck, against the hazards of fire, lightning, 
 stranding, sinking, collision, derailment and upset, but not 
 against loss .by breakage, scratching, marring, or other similar 
 damage, unless caused by fire, collision, derailment or upset. 
 The rates for this class of insurance are based on the dis- 
 tance the shipment is going; also, if made by rail, on the 
 form of bill of lading used and, if made by truck, on its 
 capacity and the nature of the goods shipped. For short 
 distances the rates begin at 5c. per $100 for shipment by 
 rail and 10c. per $100 for shipment by truck. The 100% 
 Coinsurance Clause is attached to policy. 
 
 Under the transportation floater form of policy the goods 
 are insured while in the hands of common carriers, including 
 licensed public truckmen, or the policy may cover goods 
 while on owners' trucks. The hazards insured against are 
 fire, lightning, cyclone, tornado, flood (meaning rising 
 waters), collision, upset, derailment and all risks and perils 
 of transportation (except as provided), during the time the 
 property insured is in transit by or in custody of railroad, 
 express, or licensed public truckman, while on land, and 
 against marine perils while on ferries and/or cars, on trans- 
 fer in connection therewith; also while the property insured 
 is on docks or in depots and/or platforms in custody of 
 railroad, express or licensed public truckman, incidental to 
 transportation. The coming together of railroad cars during 
 coupling is not considered a collision nor is the insurance 
 liable for loss by breakage, scratching, marring, or other 
 similar damage, unless caused by fire, collision, derailment or 
 upset. 
 
 Rates depend on the nature of the merchandise, form of 
 bill of lading used, method of shipment, territory covered, 
 and if by truck, its tonnage. They range from 21/2% to 3% 
 
SPECIAL KINDS OF INSURANCE (siDE LINES) 193 
 
 on classes of goods not easily susceptible to loss by col- 
 lision or upset and as high as 5% for those more damage- 
 able. 
 
 Various forms of policies are issued. Sometimes policies 
 are written for an amount representing the estimated total 
 value of the insured's annual shipments, then at the end of 
 the policy year the insured furnishes a verified statement 
 showing the actual total value of all shipments; if this is 
 greater than the amount for which the policy is written, 
 an additional premium is paid, if less, a rebate is allowed. 
 In other cases an open policy is issued under which individual 
 shipments are declared and paid for on an agreed basis. 
 
 The chief customers for this form of insurance are manu- 
 facturers, wholesalers and jobbers; also truckmen and ware- 
 housemen, who usually take out policies covering their legal 
 liability as common carriers under a form of policy reading : 
 ' * On lawful goods and/or merchandise owned by the insured 
 or for which he may be legally liable as carrier, consisting 
 
 principally of 
 
 while loaded for shipment on or in transit in or on the 
 following described motor trucks and/or trailers owned and 
 operated by the insured." 
 
 Water Damage Insurance. — This is one of the modern 
 kinds of indemnity and insures against loss or damage caused 
 by leakage of water to ceilings, walls, floors, and decora- 
 tions of buildings, stocks of goods in stores and warehouses, 
 delicate machinery, furnishings, etc. 
 
 A special form of policy is issued which in terms covers 
 loss or damage caused by accidental discharge, leakage or 
 precipitation of water or steam from such one or all of 
 the following sources as may be specified : 
 Plumbing system. 
 
 Plumbing tanks (for the storage of water for the 
 supply of the plumbing system). 
 
 Steam or hot water heating pipes and radiators. 
 Elevator tanks and cylinders. 
 Standpipes for fire hose. 
 Roofs, leaders and spouting. 
 
 Rain or snow driven or admitted through broken or 
 open windows and skylights. 
 
 The cost of repairing or replacing broken piping or 
 apparatus causing the loss is not covered, neither is discharge 
 from automatic sprinkler system, but the latter may be 
 
194 THE AGENTS KEY TO FIRE INSURANCE 
 
 insured separate!}' under a Sprinkler Leakage Policy. Policies 
 are customarily issued with not less than a 10% Coinsurance 
 Clause, there being marked credits in rate as insurance to 
 value increases. 
 
 The causes of water damage losses are numerous and 
 practically unpreventable. Among them are: Faucets left 
 open by children, servants or careless employees; leakage, 
 overflow, bursting or fall of plumbing supply tanks ; defective 
 joints or leaky radiators in steam and hot water systems 
 due to rust or freezing; standpipe connections broken or 
 accidentally opened. Rain, snow or frost from windows 
 or skylights left open either carelessly or at night for air 
 may cause great damage. Water damage from leaky roof 
 or through spouts, leaders or gutters is especially important 
 in mercantile and warehouse buildings where roof drains 
 are located inside the building. 
 
 Tenants are exposed to damage by the carelessness of 
 others in the same building; there is a growing demand for 
 tenant's legal liability policies in cases where under the 
 lease a loss due to carelessness is collectible from the tenant 
 causing it rather than from the landlord. 
 
 The field for the sale of this kind of indemnity is almost 
 unlimited and is largely undeveloped. 
 
PART TWO 
 
 CHAPTER XVI 
 
 FORMS, PRIVILEGES AND CLAUSES 
 (Sixteen Divisions) 
 
INTRODUCTORY NOTE 
 
 (1922 Edition) 
 
 The forms given herein, some chosen from the many 
 thousands in use, and others especially written for this pub- 
 lication, are intended to illustrate those which may be em- 
 ployed for insuring all the usual classes of property, and it 
 is believed that none, appropriately used, will prove un- 
 acceptable to general writing companies where permitted by 
 local rules. The currently used forms for most sections 
 of the United States will be found in each division. 
 
 In those territories where certain prescribed forms and 
 clauses are the only ones which are permitted, some of these 
 forms may not be used, but one of the objects of printing 
 so many different kinds is to inform the reader as to the 
 phraseology used in the different sections of the country, 
 for such helpful suggestions as their perusal will give. Care 
 should be exercised in not attempting to use a form that 
 local rules will not permit. 
 
 The simplest forms are the ones recommended ; many might 
 have less verbiage yet furnish equal or broader cover, but 
 would probably not meet the general desire, for the majority 
 prefer more or less extended descriptions, even though realiz- 
 ing that this tends to narrow the cover. It may be said, how- 
 ever, that the simpler forms are gaining in popular favor, 
 both with agents and brokers and the general public. 
 
 It will be noted that the clauses and conditions given are 
 mostly permissive in character rather than restrictive ; the 
 latter differ widely in the various jurisdictions, and no at- 
 tempt has been made to include them for fear that would be 
 confusing rather than helpful; besides, the restrictive clauses 
 will be required, whether or no, while the use of permissive 
 clauses rests in large measure with the agent or broker. 
 
 THE AUTHOR. 
 
 PUBLISHER'S NOTE 
 
 While this book is copyrighted as a whole, all policy forms, 
 privileges and clauses contained herein are hereby released 
 from copyright, and permission is given for their free usa 
 
 THE SPECTATOR COMPANY. 
 
DIVISION I 
 
 WRITING FORMS 
 
 General Remarks — Title and Interest — Separation 
 OF Building and Contents — Building — Machinery 
 — Furniture and Fixtures — Stock — Blanket Poli- 
 cies — Non-concurrency — Valued Policies. 
 
 The ideal fire insurance form should be clear, concise and 
 complete, leaving nothing to the imagination and containing 
 
 no language capable of more than one interpre- 
 Ideal tation. In general the simpler the form, the 
 
 Forms broader the cover; enumeration and wealth of 
 
 detail in any description of property tends to 
 restrict rather than widen the application of the policy. 
 
 It has been so much the habit to give extended details of 
 property, that the very simple forms with no unnecessary 
 
 verbiage are not those most in use, and this 
 Details may be due in part to the thought that a long 
 
 form full of descriptive language will seem 
 more impressive to the insured, and carry to him the idea 
 that he is more securely and more liberally covered than by a 
 form so short and simple as to seem elementary. 
 
 In the forms included herein it is sought to give illustration 
 of both the simple and extended phraseology so that both may 
 be available if desired. The language em- 
 Local ployed may in certain cases run counter to the 
 Rules rules of various associations having jurisdic- 
 tion over such matters, for the business has 
 not yet reached a condition of uniformity; this will certainly 
 prove true as to clauses, and care must be exercised to substi- 
 tute the particular clause in use in any given territory for the 
 similar clause which may be quoted. 
 
 There are a few general rules for policy writing and form 
 drawing that need to be borne in mind, and these may be 
 briefly rehearsed. (Please read Introductory Note.) 
 
 The Title and Interest. It is a general rule that either the 
 title or the form of the policy must disclose the interest of 
 the insured, or must in some way put the company on notice if 
 
 197 
 
198 THE AGENTS KEY TO FIRE INSURANCE 
 
 the interest be other than sole and unconditional ownership. 
 If the title reads, **John Doe, as interest may appear," that 
 is sufficient to cover his interest as owner, mortgagee, lienor, 
 contractor, etc.; or if the title reads, John Doe, **0n his in- 
 terest in, etc.," that is sufficient to cover any interest: But 
 if the title reads John Doe and the form reads '*0n building, 
 etc.," with no explanatory language or clause, then the 
 insurance will not be valid unless John Doe is the sole and 
 unconditional owner. 
 
 Separation of Building and Contents. It is the general rule 
 that a building must be insured in a separate item from con- 
 tents, or come under the rule governing blanket policies. The 
 various rating organizations all agree on this general rule, 
 though their requirements differ regarding any further sep- 
 aration, and vary with the different classes of risks. 
 
 It is the general custom to insure a dwelling in one item and 
 all contents thereof in another; the same is true of private 
 jf . , barns and contents, except that some organiza- 
 
 ProDPrtv^ tions require a separate item or items on live 
 ^ ^ stock, and in the case of farm property a still 
 
 further separation. 
 
 Insurance on mercantile property is usually 
 Mercantile separated into three items: One on building 
 and permanent fixtures, another on store furni- 
 ture and fixtures, and another on stock. 
 
 Insurance on manufacturing risks usually covers sepa- 
 rately: The building and fixtures pertaining to its service; 
 „ the machinery and appurtenances; the stock 
 
 » , . and materials for manufacturing. Sometimes 
 
 acturmg ^ separate item covers boilers and engines, 
 and another item on patterns, though the latter are usually in- 
 cluded with the machinery and a limit clause is attached 
 reading as follows or similarly: ''Not more than 10% (or 
 15%) of this item shall cover on patterns." 
 
 The rules of rating associations governing the separation of 
 
 subjects of insurance into specific items are so 
 
 Local varied that any further illustration might lead 
 
 Rules to confusion; the rules applying in any given 
 
 territory should be referred to when preparing 
 
 forms to cover property located therein. 
 
 Building. Under the building item it is customary to in- 
 clude with the structure what are termed permanent fixtures. 
 
WRITING FORMS 199 
 
 Except where otherwise provided by underwriting rules, these 
 fixtures include the boilers, engines, elevators and apparatus 
 for heating, lighting and ventilating; water pipes and other 
 fixtures pertaining to the service of the building for the pur- 
 pose for which it is intended, for these are considered as part 
 and parcel of a complete building. 
 
 Machinery. Under this item it is customary to cover all 
 the machinery, together with tools, apparatus and supplies 
 for use in connection therewith, except such as are covered 
 under the building item. The machinery item is usually so 
 worded as to include office furniture and fixtures. Care 
 should be taken not to enumerate those things that are cov- 
 ered Avith the building, for confusion ensues when a loss 
 occurs and it is found that two or more items of the form 
 cover on identical property. 
 
 Furniture and Fixtures. In a mercantile or non-manufac- 
 turing risk it is customary to cover under this item all the 
 furniture and fixtures, tools and apparatus not covered under 
 the building item. 
 
 Stock. Under this item all stock is covered, including 
 boxes, cartons, labels and supplies for use in connection there- 
 with. As a rule, household furniture or wearing apparel in 
 use may not be included in an item on stock. 
 
 Note: — It is desirable to cover in the building item what- 
 ever machinery or fixtures may be included under local under- 
 writing rules, for the building usually bears a lower rate than 
 contents. 
 
 Blanket Policies. A policy is termed ^* blanket, ^^ or to have 
 a ** blanket form," when it covers under one item property 
 that is usually covered under two or more separate items: 
 For example, dwelling and household furniture ; building, ma- 
 chinery and stock, 'or furniture and fixtures with stock ; also, 
 when property in two or more locations, that are considered 
 to be separate fire risks, is covered under one item. 
 
 Blanket policies are usually required to have as a part of 
 the contract, the 90% or 100% Coinsurance Clause, or the 
 80% Coinsurance Clause coupled with the Distribution 
 Clause, or perhaps the Distribution Clause alone. 
 
 IK Usually only manufacturing or large mercantile establish- 
 Hients are insured under blanket policies. 
 1 
 
200 THE AGENTS KEY TO FIRE INSURANCE 1 
 
 Hon-Concurrence. One of the most important things in ] 
 
 writing and placing insurance is to make certain that all ' 
 
 policies covering identical property in whole or i 
 
 Importance in part shall be concurrent. This does not mean ; 
 
 that the forms must necessarily be identical, i 
 
 word for word, but it does mean that in effect and applica- ' 
 
 tion their terms and conditions must be the same so far as • 
 
 they affect liability for loss or the apportion- ; 
 
 Familiar ment of loss. The most frequent form of non- i 
 
 Types concurrence is where some policies cover j 
 
 specifically and other policies cover blanket i 
 
 over two or more separate properties. To illustrate: i 
 
 If policy 1 covers $4,000 on building A, i 
 
 policy 2 covers 5,000 on building B, and \ 
 
 policy 3 covers 3,000 on both A and B, ' 
 
 such insurance is non-concurrent and would be still further ; 
 
 complicated if the coinsurance clause were attached to the ; 
 
 policies. Other familiar forms of non-concurrence are: — I 
 
 Where some policies bear the coinsurance clause and others | 
 
 do not, or where they are in (iifferent percentages; where i 
 
 some cover in building and others in building and yard ad- | 
 
 jacent; where some cover building and additions while others j 
 
 cover building only. One famous case is where two build- | 
 
 ings were separately insured in different companies and each \ 
 
 form read, ** building and additions or extensions adjoining \ 
 
 or communicating.'' They were situated on two different j 
 
 streets and came nearly together in the rear in the form of a I 
 
 right angle. In this angle there was a structure which ad- [ 
 
 joined both buildings and communicated with each and this ■ 
 
 contained an elevator that served both in common. This ele- , 
 
 vator structure was erected jointly by the owners of both j 
 
 buildings on land belonging part to one and part to the other. < 
 
 The fire destroyed this structure and damaged each adjoining ! 
 
 building. The question arose which set of policies should ; 
 
 pay the loss to the elevator structure and if both should pay j 
 
 then in what proportion. i 
 
 ) 
 
 There are certain forms of non-concurrence that are not i 
 
 substantial, for example, one policy on stock may describe it i 
 
 in great detail, another may read simply, **on ', 
 Less stock of merchandise," but both would pre- 
 Important sumably pay any loss that either would pay. 
 Kinds A privilege may be worded in many different 
 ways under different policies but so long as the 
 things granted are the same the non-concurrence of phrase- 
 
 J 
 
WRITING FORMS 201 
 
 ology is not substantial. These, however, are excuses rather 
 than reasons for not having all policies read exactly alike, 
 word for word, which is much the better and safer way. 
 
 The importance of concurrent insurance can hardly be over- 
 stated, and in examining policy forms the test to be applied 
 is this : — Do these policies attach in such man- 
 The Test ner that any loss which happens will be cov- 
 
 ered without question arising as to which 
 
 policies or items will pay same or in what proportion? 
 
 * 
 
 Valued Policies. In some states there is a statute in force, 
 commonly called the valued policy law, under which the 
 
 amount of insurance covering a building and in 
 Definition force at the time of fire is considered to be the 
 
 value of such building, regardless of what its 
 real value may be ; and if the building is so far destroyed by 
 fire that it cannot be repaired, then the insurance must be 
 paid in full, regardless of whether such insurance is in ex- 
 cess of the real loss or not. In one or two states this law is 
 also extended to include certain classes of personal property. 
 
 Some authorities hold that a valued policy merely fixes the 
 value of the property covered as at the inception of the 
 
 policy, and that if it has depreciated in value 
 Modification the insurance cannot be held liable for more 
 
 than the stated value less depreciation. An il- 
 lustration of this view is made as follows: Assume that a 
 valued policy for $5,000 has been placed on a building, and 
 that subsequently a tornado carries off the roof which will 
 cost $1,000 to replace. Some time later, no repairs having 
 been made, the remainder of the building is destroyed by fire. 
 In such case it is not believed that the courts would require 
 payment of the face of the policy if it were conceded that 
 the original value of the building was not more than $5,000. 
 This being true, it is argued, would not the insurance be en- 
 titled to any depreciation in value that could be shown to have 
 taken place subsequent to the issuance of the policy. 
 
 For this reason it is held by these authorities that the in- 
 sured should not rely, under any and all circumstances, on a 
 recovery of the face of a valued policy. 
 
202 THE AGENTS KEY TO FIRE INSURANCE ; 
 
 The valued policy law is generally held by thoughtful and ^ 
 
 observant minds to be pernicious, subversive of economic law \ 
 
 and the principle of indemnity upon which fire ; 
 
 Pernicious; insurance is based; to be wrong in theory, i 
 
 Uneconoiuic harmful in practice and a direct incentive to \ 
 
 fraud. Where such a law exists, especial care j 
 
 needs to be exercised in fixing the amount of insurance to be ; 
 
 carried. The rules to be observed in issuing policies covering ; 
 
 buildings, or other property if affected, differ in the various ; 
 
 states where such a law is in force, but there is one rule that | 
 
 is universal, namely, not to write nor permit more insurance ^ 
 
 than the actual cash market value of the property' covered. | 
 
 Sometimes, in writing policies on buildings, the total insur- '\ 
 
 ance permitted is limited in the policy under the following ; 
 
 or similar wording: 1 
 
 "The insurable value of the building described herein ■ 
 
 is fixed at $ , and total concurrent insurance | 
 
 thereon, including this policy, is hereby permitted to that 
 
 amount only.'' ! 
 
 While the valued policy law is a vicious one as applied 
 indiscriminately to buildings, the value of which may be de- 
 termined with fair accuracy and does not vary 
 Applied to greatly from time to time, it is doubly so when 
 
 Personalty applied generally to personal property, where i 
 
 values are constantly changing and cannot in 
 the nature of things be kept track of. Nevertheless, there 
 are certain classes of personal property whose values fluctuate 
 little, if any, which it is quite customary to insure under a 
 
 valued form of policy, for the reason, that, because of their | 
 
 peculiar character, it has been found to work out more satis- ; 
 
 factorily in practice to agree on the value beforehand, rather | 
 
 than to leave this for determination after loss has occurred j 
 
 and the property covered has been destroyed. Within these j 
 
 classes are embraced pictures, paintings, etchings, statuary i 
 
 and other works of art; curios, antiques, rare stamps, nega- ' 
 
 tives, specimens and documents, and in some cases violins, ' 
 
 cellos and other musical instruments; valuable horses, cattle | 
 
 or other live stock; collections, or other property of unusual j 
 
 value. As a rule, valued policies on personal property are not i 
 
 written until submitted to and approved by the company; : 
 
 many companies decline them altogether. \ 
 
 The forms in use for insuring personal property with the j 
 
 value fixed may be illustrated in a general way by the follow- j 
 
 ing two forms : \ 
 
WRITING FORMS 203 
 
 VALUED FORM NO. 1. 
 
 $....0n paintings, including frames and/or shadow boxes, as 
 per schedule following herewith, while contained in the two and 
 one-half story frame slate roof dwelling, situate No. 100 Elysian 
 Field, Tarrytown, New York. 
 
 It is understood and agreed that the amount stated opposite the 
 name of each picture shall, for the purposes of this insurance, be 
 considered the value thereof. 
 
 $ Portrait of Mrs. John Doe by Sir Joshua Reynolds. 
 
 $ Arabian War Scene, by Fortuny. 
 
 $ On oil painting; "Vanity"; young girl in rose colored 
 
 empire gown standing before a mirror; by Walter McEwen. 
 
 VALUED FORM NO. 2. 
 
 On the following described property while contained in the 
 three-story frame shingle roof dwelling, situate 
 
 $ On antique Chinese screen of 7 folds, portraying an elope- 
 ment and attributed to the Eighteenth Century period, valued at 
 
 $ On United States Silver Dollar coined in the year 1814, 
 
 valued at $ 
 
 $....0n a six-foot mahogany side board, Chippendale pattern, 
 valued at $ 
 
 It should be borne in mind that the phrase, '* Valued at 
 
 $ /' or other similar language, definitely establishes 
 
 the value of the property so described, and all that is incum- 
 bent on the insured to sustain a claim in respect of value is 
 to prove that property destroyed by fire is actually the identi- 
 cal property described and valued in the policy. 
 
 Where a limit of value is to be fixed the phrase, '^Valued 
 
 at $ " should not be used, but instead *'not exceeding 
 
 $ to apply on any one ," or in some cases 
 
 '* value limited to not exceeding $ " may be used. 
 
 I 
 
DIVISION II 
 
 SPECIAL AGREEMENTS 
 
 General Remarks — General Privileges and Condi- 
 tions — Other Insurance — Lightning Clause — 
 Dynamo Clause — Kerosene Oil Stoves — Heirs and 
 Assigns — Work and Materials — Noon — Founda- 
 tions — Leased Land — Divisible Contract — Bonds 
 and Mortgages — Foreclosure — Act or Neglect — 
 Contract of Sale — Commission (in Trust) Clauses 
 — Guests and Servants Clause — Exclusion 
 Clauses — Miscellaneous Clauses. 
 
 In addition to drawing a form that shows the interest cor- 
 rectly, that properly describes and locates the property in- 
 tended to be covered, and that is free from non-concurrency, 
 care should be exercised that permission be given for any 
 violation of the policy conditions of which the agent has 
 knowledge at the time of issuing the policy, in so far as 
 they are present in his mind. 
 
 It is not customarily held to be the duty of the agent to 
 interrogate the insured regarding all possible violations of 
 the policy conditions one by one, but ordinary 
 Interrogation care in drawing the contract will lead him* to 
 Not Required include therein the permits that are customarily 
 granted when insuring all classes of property, 
 and, also, the special permits usually applicable to given 
 classes of risks. For example, practically all risks are lighted 
 artificially, therefore, proper permit should be given when 
 lighting is by some system that requires permission, such as 
 by electricity, or by gasoline, acetylene or Blau Gas systems. 
 Again, printers commonly clean type with benzine or gasoline, 
 therefore, proper permit should be attached covering that 
 feature when insuring printers. 
 
 The wise and prudent agent will always ask the insured to 
 read over the policy, including both the written and the 
 J .J,, printed portions, in order that the policy when 
 
 ^,,. .. issued may contain all the provisions neces- 
 
 ^^ ^ ^ sary to make it a valid contract according to 
 conditions as they exist at its inception. 
 
 201 
 
SPECIAL AGREEMENTS 205 
 
 GENERAL PRIVILEGES AND CONDITIONS 
 
 There are certain general privileges granted or conditions 
 incorporated in insurance policies that are applicable under 
 certain circumstances when covering any and all classes of 
 property. Some of these are as follows, though the wording 
 of such clauses may differ in the different parts of the 
 country : 
 
 (1) "Other Insurance Permitted Without Notice Until Re- 
 quired." This is commonly used on all forms (except where 
 it is not intended to permit it), and is essential to the safety 
 of the contract, since otherwise the existence of other insur- 
 ance would void the policy. Sometimes this permit is made 
 to read, "Privilege granted for other insurance," ^* Other 
 concurrent insurance permitted," or ** Other concurrent in- 
 surance permitted to the extent of $ only. ' ' 
 
 (2) Lightning Clause. The lightning clause is usually at- 
 tached to all policies of fire insurance. The New York Stand- 
 ard clause reads as follows: 
 
 ^^This policy shall cover any direct loss or damage 
 caused by Lightning (meaning thereby the commonly 
 accepted use of the term Lightning, and in no case to 
 include loss or damage by cyclone, tornado or wind- 
 storm), not exceeding the sum insured, nor the interest 
 of the insured in the property, and subject in all other 
 respects to the terms and conditions of this policy; pro- 
 vided, however, if there shall be any other insurance on 
 said property this Company shall be liable only pro 
 rata with such other insurance for any direct loss by 
 Lightning, whether such other insurance be against direct 
 loss by Lightning or not." 
 
 (3) Dynamo Clause. When electrical machinery and sup- 
 plies are insured, the dynamo clause is usually required, one 
 form of which reads as follows: 
 
 **If dynamos, exciters, lamps, motors, switches, or 
 other electrical appliances or devices are covered under 
 this policy, this company shall not be liable for any 
 electrical injury or disturbance, whether from artificial 
 or natural causes, unless fire ensues, and then for the 
 loss by fire only." 
 
 (4) "Privilege Granted for Kerosene Oil Stoves for Heat- 
 ing and Cooking." The policy permits the use of kerosene oil 
 for light but makes no mention of stoves, hence, this privilege 
 is advisable on all policies where stoves are likely to be used. 
 
206 THE AGENTS KEY TO FIRE INSURANCE 
 
 (5) "In the event of the death of the insured this policy 
 shall continue in force for the benefit of the heirs, adminis- 
 trators or assigns as interest may appear." 
 
 "The use of this provision probably arose prior to 
 the use of the present standard policies because under 
 the old forms there was some doubt whether the policy 
 covered the insured's property passing to others upon 
 his death. The present policy provisions render this 
 language unnecessary. ' ' 
 
 (6) Work and Materials Clause. This clause is worded in 
 a number of ways, the following being an example : 
 
 "Permission granted to do such work and to keep and 
 use such materials as are usual in the business of 
 (specifying the business).'' 
 Sometimes the following is added to the clause: 
 
 **but the use, handling or storage of benzine, benzole, 
 gasolene, naphtha, calcium carbide, fire-works, nitro- 
 glycerine, dynamite, ether, collodion, lacquer (or "ba- 
 nana liquid") and rubber cement is prohibited unless 
 specific permission is indorsed hereon, otherwise this 
 policy to be null and void." 
 
 • The printed conditions of the policy provide that it shall 
 become void if certain specified articles are kept, used or 
 allowed on the premises, or if the hazard be increased within 
 the control or knowledge of the insured. The clause first 
 quoted is intended to permit the use of any articles or the 
 doing of any work, if "usual" in the specified business, 
 whether that involves increase of hazard or the use of the in- 
 terdicted articles. The added language qualifies this only 
 by forbidding the use, handling or storage of the articles 
 enumerated therein. 
 
 (7) "Where the Word 'Noon' is used Same Shall Be Con- 
 strued to Mean Standard Time at the Location of Property 
 Involved." The Policy specifies that liability shall begin and 
 end *at noon,' and this clause is designed to avoid confusion 
 with *Sun' time in use in many localities. 
 
 (8) "Foundations of Buildings Below the Level of the 
 Ground and Cost of Excavations are not Covered Hereunder." 
 
 There is no occasion for this clause except where coinsurance 
 is a part of the policy contract. Usually little, if any, damage 
 
SPECIAL AGREEMENTS 207 
 
 to such portions of a building result from fire and by ex- 
 cluding them less insurance is necessary. 
 
 (9) "It is Understood and Agreed that this Policy Shall 
 Not Be Invalidated If Building Stands on Leased Land." The 
 
 policy provides that if the building stands "on ground not 
 owned by the insured in fee simple" the policy is void. Hence, 
 the necessity for this privilege where land is leased. Ground 
 rents are quite customary in some cities — practically the en- 
 tire City of Salamanca, New York, stands on land leased from 
 the Indians — and such leases are frequent along the right-of- 
 way of a railroad, or near piers and wharves. Care should 
 be exercised in each case where building is insured to learn 
 whether the land on which it stands is owned or leased. 
 
 (10) "It Is Understood and Agreed That This Policy Shall 
 Be Considered a Divisible and Severable Contract, As If 
 Separate Policies Were Issued on Each Building and/or Its 
 Contents." The policy by its terms provides that a breach of 
 condition voids the entire policy, not merely the one item 
 which may be affected. Thus, vacancy beyond ten days of 
 one building out of twenty insured would render void the en- 
 tire policy. This does not seem just nor the true intent of 
 the contract and several states have held that the policy is a 
 divisible contract in spite of its terms, but it is much safer 
 to insert the condition quoted in the form and save all trouble, 
 particularly in schedule forms covering separate and distinct 
 risks. 
 
 (11) "It Is Understood and Agreed That the Existence of 
 Bonds and/or Mortgages Covering in Whole or in Part the 
 Property Described Herein Shall not Invalidate this Insur- 
 ance." Large corporations frequently execute a mortgage cov- 
 ering their entire property, both real and personal, as se- 
 curity for a bond issue, and since such mortgage would be in 
 part a chattel mortgage, this clause is desirable on all policies 
 issued to corporations. Sometimes such policies are made 
 payable to trustees for bondholders and in such case there 
 is usually no objection to the attachment of a mortgagee 
 clause. 
 
 (12) "Consent Is Hereby Griven for Foreclosure Proceed- 
 ings to Be Commenced on the Within Described Property or 
 Notice Given of Sale Thereof by Virtue of Mortgage or 
 Trust Deed." This condition is usually permitted in the form 
 only when covering property in the larger cities and should 
 
208 THE AGENTS KEY TO FIRE INSURANCE 
 
 not be used when insuring outlying or country property, ex- 
 cept by endorsement in case of necessity. 
 
 (13) "This Insurance Shall Not Be Invalidated by the Act 
 or Neglect of Any Other Occupant of the Within Described 
 Premises, Providing Such Act or Neglect Is Not Within the 
 Knowledge or Control of This Insured." The reason for at- 
 taching this condition is because some authorities hold that 
 the breach of condition of the policy by any tenant of a build- 
 ing affects all the insurance attaching on or in the building. 
 
 (14) "The Execution of Contracts of Sale Shall Not Preju- 
 dice This Insurance. ' ' The use of this clause is generally held 
 to protect the insured's (vendor's) interest in realty under 
 contract of sale, even though the vendee is let into posses- 
 sion; but it does not extend the insurance to cover the ven- 
 dee's interest. 
 
 Another form is sometimes used, which is self-explanatory : 
 
 * ' Contracts of sale may be entered into without preju- 
 dice to this insurance, which shall continue for the benefit 
 of vendor and vendee, as interest may appear, until 
 the delivery of deed, but this insurance shall not attach if 
 other insurance (except renewals of existing policies) has 
 been procured subsequent to execution of contract of 
 sale." (See also Contracts of Sale.) 
 
 (15) COMMISSION (IN TRUST) CLAUSES 
 
 Such clauses read variously, a common form being as 
 follows : 
 
 His own or held by him in trust, or on commission or con- 
 signment, or on storage or for repairs, or sold but not re- 
 moved, or for which he may be liable. 
 
 This clause is principally used on forms insuring stock, 
 although it is also used somewhat on machinery forms. When 
 
 introduced it was evidently intended to cover 
 Where the insured's interest in — and legal liability 
 
 Used for — property belonging in whole or in part to 
 
 others, but it has been given a very much 
 broader meaning by the courts. Regardless of whether the 
 merchant, the manufacturer, or the warehouseman has 
 
 assumed responsibility or is legally liable for 
 Danger property of others that is on his premises, or 
 
 of Use has agreed to cover it with insurance, the courts 
 
 have held that the language quoted, if on his 
 policies of insurance, gives each owner of such property the 
 
SPECIAL AGREEMENTS 209 
 
 right after a fire to ratify the insurance so placed and make 
 claim thereunder for loss or damage to his goods. It does not 
 matter that the insured did not contemplate this, nor provide 
 
 sufficient insurance to cover the value of all the 
 Obligation property in his keeping in addition to his own, 
 of Insured nor that his own loss alone is more than the 
 
 amount of his insurance, nevertheless it has 
 been held that he must share his insurance with the owners 
 of such property pro rata. 
 
 It will be seen, therefore, that this clause, while intended 
 to be beneficent in character, may work to the serious dis- 
 advantage of the insured, and if it is contained 
 Rarely in his policy form he must be prepared, in order 
 
 Beneficent to be safe, to carry insurance sufficient in 
 amount to cover adequately the value of all 
 the property in his premises. 
 
 There are many cases where the insured has an interest in 
 property in which others also have an interest; for instance, 
 where materials have been sent for manufae- 
 Necessity ture and he has expended labor and findings 
 
 for Cover thereon. Goods are often held on commission 
 or otherwise on consignment which the cus- 
 todian has agreed to keep insured, and there are other cases 
 where it is necessary or desirable to assume liability for prop- 
 erty of others. Hence, it becomes necessary to 
 Proper provide insurance which will give the proper 
 
 Method protection without being open to the objections 
 
 set forth in the foregoing. There are two ways 
 in which this may be accomplished : 
 
 I First, by taking out separate insurance, either by a separate 
 policy or under a separate item, specifically covering prop- 
 erty for which the insured is legally liable and excluding his 
 own property therefrom. 
 
 Second, by substituting for the customary commission 
 clause one reading as follows : 
 
 *Hhe property of the insured; and on the interest of 
 
 the insured in and/or liability for similar property held 
 
 by the insured, whether on storage, or for repairs, or 
 
 y otherwise, and belonging in whole or in part to others." 
 
210 THE AGENTS KEY TO FIRE INSURANCE 
 
 Another form of clause, in use in the West, reads : 
 
 *'the property of the insured; and, providing the in- 
 sured is legally liable therefor, this item shall also cover 
 such merchandise held in trust, or on commission, or 
 sold but not delivered. '* 
 
 Whenever any commission clause is used it is recommended 
 that a clause be inserted in the form excluding property on 
 which there is specific insurance. (See Exclusion Clauses.) 
 
 (16) GUESTS AND SERVANTS CLAUSE 
 
 Such clauses read in various ways, the common form being 
 ''belonging to the insured or any member of the family, 
 guests or servants. '^ An extreme form of the clause reads, 
 *'The property of the insured or any member of the family 
 or household, their relatives, friends, guests, and/or ser- 
 vants. '* Such clauses are used on household furniture forms 
 evidently with the thought that the broader cover is a better 
 contract for the insured. It is, however, open to the same 
 
 objections that obtain in the case of commis- 
 Like a sion clauses, namely, that it gives to guests and 
 
 Commission others the right to a portion of the house- 
 Clause holder's insurance in case property belonging 
 
 to them while in his house is damaged by fire. 
 If the policy is made to cover the property of the insured and 
 members of his household, it would undoubtedly cover that 
 owned by himself, wife, children and relatives living with 
 him. It can hardly be disputed that it would also cover the 
 property of servants, for they are in fact members of the 
 household or family, so recognized alike in law and custom. 
 
 If the insured wishes to assume liability for the property of 
 guests and others, this may be safely done by taking out a 
 separate policy, or having a separate item, 
 Proper specifically covering the property of guests 
 
 Method separately from his own. It is seldom that the 
 
 host wishes to do this and it is therefore sug- 
 gested that the safe clause to put on a household furniture 
 policy is one reading as follows : 
 
 ''The property of the insured or any member of his 
 own family and on the legal liability of the insured for 
 loss or damage to similar property of others." 
 
 Then, if the host assumes the liability of protecting his 
 guests against loss by fire, this clause will cover their prop- 
 erty. 
 
SPECIAL AGREEMENTS 211 
 
 As a mean between the two extremes the following clause 
 has been adopted for use in the West. 
 
 '*Not exceeding ten (10) per cent, of the amount of 
 any item of this policy on personal property shall cover 
 also, as per above form, property of guests, and servants, 
 loss, if any, to be adjusted with and payable to the in- 
 sured named in this policy. *' 
 
 (17) EXCLUSION CLAUSES 
 
 (Property specifically insured.) 
 There are many forms of general clauses in use for exclud- 
 ing property that is more specifically insured, the following 
 being examples: 
 
 ''This policy does not cover property specifically in- 
 sured. ' ' 
 
 "This policy shall not be held to cover personal prop- 
 erty of others that is specifically insured." 
 
 ''This policy does not cover on any of the above men- 
 tioned property that is the subject of more specific in- 
 surance." 
 
 ' ' Any particular machine or any other article or prop- 
 erty above described, on which there is specific insurance, 
 shall not be covered by this policy." 
 
 "This policy does not cover the assured 's interest in 
 personal property in which parties other than the as- 
 sured also have an insurable interest when the assured 's 
 interest in said property is otherwise specifically in- 
 sured. ' ' 
 
 "The following, if the subject of more specific insur- 
 ance, shall not be covered hereunder: 
 
 Personal property belonging exclusively to parties 
 other than the insured specifically named herein ; 
 
 The insured's interest in and/or legal liability for per- 
 sonal property in which others also have an insurable 
 interest. ' ' 
 
 "This policy shall not cover personal property be- 
 longing to others, nor the interest of the insured in 
 and/or liability for personal property belonging in whole 
 or in part to others, or held on storage or for repairs, 
 when such property, interest, and/or liability is the sub- 
 ject of more specific insurance." 
 
 Note. — The two last clauses should not be used unless 
 
 e commission clause is a part of the contract. 
 
 i 
 
212 THE AGENTS KEY TO FIRE INSURANCE I 
 
 To any of the foregoing or other exclusion clauses which- 
 may be used, the following provision is sometimes added : i 
 
 ''except for the excess of value over such specific | 
 insurance. * ' 
 
 The object in attaching a clause excluding property specifi- i 
 cally insured is chiefly to prevent the general insurance from ! 
 
 contributing with such specific insurance in the | 
 Object payment of a loss, for this is apt to work to j 
 
 the disadvantage of the holder of the general i 
 insurance, and all the evils, pitfalls and vexations of non- j 
 concurrency may flow therefrom. j 
 
 Some of the rating organizations prescribe the exact form ' 
 of general exclusion clause which shall be used. 
 
 MISCELLANEOUS CLAUSES ! 
 
 I 
 
 (18) **It is understood and agreed that when the in- ' 
 sured is the owner of the building, and any of the above ■ 
 property is enumerated under building policies, that this 
 item does not cover such property." \ 
 
 NOTE : Used on policies covering machinery or fix- < 
 tures. 
 
 (19) ''The enumeration herein is intended to be de- ; 
 scriptive not restrictive. " i 
 
 NOTE : Used on any kind of form, but of little effect. ; 
 
 (20) "If any policy of fire insurance covering prop- ] 
 erty described herein is subject to coinsurance or aver- ; 
 age conditions, this policy shall be subject to the same i 
 conditions." .j 
 
 NOTE: This conditional coinsurance clause was for- j 
 merly quite often used, but seldom now, and it is doubtful 
 if such a provision could be enforced. 
 
 (21) "It is understood that pictures or other property 
 on which there is specific insurance are not covered by 
 this item." 
 
 NOTE : Used on household furniture policies. .^ 
 
 (22) "It is understood that property purchased on ^ 
 the installment plan is included in this policy, and for ^ 
 the purpose of this insurance the insured is considered 
 the sole and unconditional owner of such property." '^ 
 
SPECIAL AGREEMENTS 213 
 
 (23) "Property purchased under any installment or 
 credit plan is covered under this item to the extent only 
 of the insured's interest therein." 
 
 NOTE: These two clauses are used mostly on house- 
 hold furniture policies. 
 
 (24) ''It is understood that such of the above de- 
 scribed property as may be the subject of more specific 
 insurance is not covered hereunder. ' ' 
 
 NOTE: Used on stock and/or machinery forms, but 
 not always permitted. 
 
 (25) ''It is understood and agreed that loss, if any, on 
 goods contracted for and awaiting shipment shall be ad- 
 justed on the basis of the contract price." 
 
 NOTE: Used on merchandise forms, but not always 
 permitted. 
 
 (26) "For the purpose of adjustment of loss, if any, 
 under this policy, it is understood and agreed that stock 
 and/or supplies purchased from another department of 
 insured's industries, and insured under this policy, shall 
 be considered the same as though purchased elsewhere." 
 
 NOTE : Used on stock policies under conditions as in- 
 dicated. 
 
 INVENTORY AND IRON SAFE CLAUSE 
 
 {Requirement to Keep Books and Inventory) 
 
 It is made a condition of this insurance: (1) That the assured 
 under this policy shall take an inventory of the stock and other 
 personal property hereby insured at least once every twelve months 
 during the term of this policy, and unless such inventory has been 
 taken within one year prior to the date of this policy, one shall 
 be taken in detail within thirty (30) days thereafter; (2) That 
 the assured shall keep a set of books showing a complete record 
 of business transacted, including all purchases and sales both for 
 cash and credit; (3) That the assured shall keep such books and 
 inventory securely locked in a fireproof safe at night, and at all 
 times when the store mentioned in the within policy is not actually 
 open for business, or in some secure place not exposed to a fire 
 which would destroy the building where such business is carried 
 on; (4) That in case of loss the assured shall produce such 
 books and last inventory. 
 
 NOTE: Used on stock policies. in certain territories. 
 
214 
 
 THE AGENTS KEY TO FIRE INSURANCE 
 
 EXPOSURE CLAUSE 
 
 It is made a condition of this insurance that no change in 
 exposure shall take place during the term of this policy, by 
 the erection of other buildings, or otherwise, within sixty (60) 
 feet of property insured hereunder without due notice to this 
 company and consent therefor endorsed hereon. 
 
 NOTE: Used in some territories on dwelling and mer- 
 cantile policies. 
 
 RUBBISH CLAUSE 
 
 In consideration of the rate of premium at which this policy 
 is written, it is a condition of this insurance that the premises 
 described in this policy shall be kept clear of loose hay, dry grass, 
 weeds and tubbish for a distance of at least fifty (50) feet 
 surrounding any building described in this policy; and in the 
 event of failure on the part of the assured to comply with the 
 foregoing condition, this policy shall be null and void. 
 
 NOTE : Used in some places on oil tank, hay barn and 
 similar policies. 
 
 BITUMINOUS COAL OR SPONTANEOUS 
 COMBUSTION CLAUSE 
 
 {Uniformity East) 
 In consideration of the rate of premium at which this policy is 
 written — no claim will be made on this Company for loss or 
 damage to coal, or for salvaging thereof, resulting from fire or 
 heat caused by fire originating in the coal stored on the premises 
 described in this policy. 
 
 Radio Equipments. The installation of radio receiving and 
 signalling apparatus has recently been so extensive that the 
 National Board of Fire Underwriters (New York) has issued 
 rules and regulations therefor which are now available upon 
 request. While there might be exceptions thereto, it is the 
 general opinion among underwriters that the presence of 
 either broadcasting or receiving apparatus properly installed 
 is not an increase of hazard as contemplated in the fire 
 insurance policy and therefore it is not considered necessary 
 that policy be endorsed with privilege for such installation 
 
DIVISION III 
 RESIDENCE PROPERTY FORMS 
 
 Policies on this class of property usually cover, separately, 
 the building and the contents, except that barn contents are 
 often required 'to have the livestock covered under a separate 
 item, and farm barn contents require a further separation. 
 Policies usually contain the following permits and clauses, 
 worded in accordance with local rules: 
 
 Other Insurance, Lightning, Electric or other Lighting that 
 may be required, Kerosene Oil Stove, Mechanics, Gasoline or 
 Benzine for Household Use ; also Vacancy or Unoccupancy as 
 permitted, together with such other clauses as may be neces- 
 sary or desirable, or as may be required by local underwriting 
 rules. (See also Special Agreements.) 
 
 Incubators, brooders or hovers, if used, require a special 
 permit applying to the building (or contents) where kept; 
 likewise a special permit is required if an automobile is kept 
 in any building insured. (See also Special Agreements.) 
 
 NOTE: — (a) Under various restrictions locally applying, 
 fences, lawn furniture, yard fixtures, shrubbery, outside 
 toilets, other small outbuildings, and similar property, may be 
 covered under the dwelling. 
 
 (b) Usually the following clause will be approved in a 
 policy covering household furniture: 
 
 **It is understood that carpets, rugs, oil cloths, bedding, 
 
 linen and wearing apparel are covered while being 
 
 cleaned, aired or dried out-of-doors on same premises. ' ' 
 
 Each item of the forms given herewith may be used on 
 separate policies, or may be brought together in one policy in 
 such combination as may be desired or needed. 
 
 DWELLING, HOUSEHOLD FURNITURE, STABLE 
 AND CONTENTS FORM 
 
 1. $ On the story roof building, and 
 
 additions, adjoining and communicating, including foundations, 
 plumbing, steam, gas and water pipes; lighting and heating appa- 
 ratus and all permanent fixtures; plate and ornamental glass and 
 fresco work; also storm doors and windows, screens, screen doors, 
 awnings, whether in position or stored in said building, or stored 
 in outbuildings on premises described below; while occupied as a 
 dwelling by not more than families, situate 
 
 215 
 
216 THE AGENTS KEY TO FIRE-INSURANCE 
 
 2. $....0n household furnishings and utensils of every descrip- 
 tion, useful and ornamental; fuel and family stores; printed books 
 and music, pictures, paintings, engravings and mirrors and their 
 frames (value in case of loss not to exceed cost) ; wearing apparel, 
 watches and jewelry in use, works of art, traveling equipments, 
 musical and scientific instruments, sporting equipment, bicycles, tools 
 and implements; awnings, window and door screens, gas fixtures, 
 and gas chandeliers, when owned by the insured and not covered 
 under the building insurance, and all other personal property for 
 household use or personal adornment — the property of the insured 
 or any member of the immediate family, and on the legal liability 
 of the insured for loss or damage to similar property of others. It 
 is understood and agreed that pictures, or other property, specifically 
 insured are not covered under this item; musical instruments and 
 household furnishings purchased on the installment plan are covered 
 to the extent only of the insured's interest therein and/or liability 
 therefor. All while contained in or on or attached to the above 
 described building and additions. 
 
 3. $ On the story roof building, and 
 
 additions adjoining and communicating, and all permanent fixtures 
 therein, thereon and belonging thereto, while occupied as a private 
 barn or tool house, and situated on the above described premises. 
 
 4. $....0n horses, in case of loss no one horse to be valued at 
 
 over $ , and on vehicles (excluding automobiles and motor 
 
 cycles), horse and carriage equipments, hay, grain and feed, barn 
 and garden tools, liveries, and household furniture in use therein, 
 while contained in the above described barn. 
 
 5. $. . . .On 
 
 It is understood and agreed that this policy shall not cover on 
 any item except for the amount set opposite thereto. 
 
 Loss, if any, on building (s), payable to as interest 
 
 may appear; subject to the conditions of this policy. 
 
 Privileges. — Permission is given: For existing communications; 
 for other insurance without notice until required ; for mechanics to 
 be employed for ordinary alterations and repairs; to use kerosene 
 oil and natural gas for lighting, heating and cooking, providing 
 kerosene is of the standard 110 degree test or more; to keep on 
 hand not exceeding one quart, per family, of gasoline, benzine or 
 naphtha for household use, but the use thereof for cooking, heating 
 or lighting is prohibited without special permission indorsed on this 
 
 policy; to be vacant not exceeding consecutive months at any 
 
 one time in any one year, or to be unoccupied not exceeding 
 
 consecutive months in any one year. 
 
 Standard Lightning Clause. — This policy shall cover any direct 
 loss or damage caused by lightning (meaning thereby the commonly 
 accepted use of the term lightning, and in no case to include loss 
 or damage by cyclone, tornado or windstorm), not exceeding the 
 sum insured, nor the interest of the insured in the property, and 
 
RESIDENCE PROPERTY 217 
 
 subject in all other respects to the terms and conditions of this 
 policy; provided, however, if there shall be any other insurance 
 on said property, this company shall be liable only pro rata with 
 such other insurance for any direct loss by lightning, whether such 
 other insurance be against direct loss by lightning or not. If dyna- 
 mos, exciters, lamps, motors, switches or other electrical appliances 
 or devices are covered under this policy, this Company shall not 
 be liable for any electrical injury or disturbance, whether from 
 artificial or natural causes, unless fire ensues, and then for the loss 
 by fire only. 
 
 Attached to and made a part of Policy No of the 
 
 Insurance Co., of issued at its. Agency. 
 
 Dated , 191 • Agent. 
 
 DWELLING AND HOUSEHOLD FURNITURE FORM 
 
 {Uniformity West) 
 (For Use on Either Fire or Tornado Policies) 
 
 On the following described propert)^ all situated 
 
 *1 $. . . .On the story roof building, 
 
 including foundations, plumbing, electric wiring and stationary 
 heating, lighting and ventilating apparatus and fixtures therein; 
 awnings (awnings covered under fire policies only), door and 
 window screens, and storm doors and windows; also all per- 
 manent fixtures belonging to and constituting a part of said 
 building; occupied, and to be occupied, only for dwelling purposes. 
 
 If the building hereby insured is occupied by tenants, this insur- 
 ance shall also cover under this item, if the property of owner 
 of building and not otherwise insured, floor coverings, mirrors, 
 stoves, refrigerators, cleaning apparatus, hose and other fire 
 extinguishing appliances, fuel, janitor's tools and implements, all 
 constituting a part of the equipment and service of the building 
 and only while contained in, or attached to, the above described 
 building. 
 
 This insurance shall also cover under this item, if the property 
 of owner of building, awnings, door and window screens and 
 storm doors and windows, belonging to above described building, 
 while stored in outbuildings on the above described premises. 
 
 *2 $ On household and kitchen furniture and utensils, useful 
 
 and ornamental (the property of assured and all members of 
 assured's family), including carpets, rugs, draperies, curtains, beds, 
 bedding, linen, family wearing apparel and materials for same; 
 plate and plated ware; printed books and music; piano stool and 
 cover; piano and other musical instruments; mirrors, portraits, 
 pictures, paintings, engravings, including their frames, statuary 
 and sculpture, all at not exceeding cost; watches and jewelry and 
 bicycles in use ; baby carriages, amateur photographic outfit and 
 supplies; fishing tackle, firearms, athletic and sporting implements; 
 
218 THE AGENTS KEY TO FIRE INSURANCE 
 
 mechanics', carpenter and garden tools and implements; type- 
 writers, sewing machines, trunks, traveling equipments, canes and 
 umbrellas; lamps, china, glass and crockery ware; fuel, family 
 stores and supplies; electrical apparatus, appliances and devices; 
 scientific apparatus, appliances, devices and implements; and all 
 other furniture and fixtures not belonging to and constituting a 
 permanent part of the building; all only while contained in, or 
 attached to, above described building; also, if not otherwise in- 
 sured, porch and lawn furniture, bicycles in use, trunks (excluding 
 contents of same), tools, fuel and supplies, while stored in out- 
 buildings on the above described premises. 
 
 This insurance shall also cover under this item, if the property 
 of tenant and not otherwise insured, awnings, door and window 
 screens and storm doors and windows, while contained In, or 
 attached to, above described building (attached awnings covered 
 under fire policies only), or while stored in outbuildings on the 
 above described premises. 
 
 This insurance shall also Include the Interest of the assured 
 in articles, covered under this item, purchased on the installment 
 plan. 
 
 *3 $ On the roof building, including founda- 
 tions, occupied as a private garage. 
 
 *4 $. . . .On the roof building, including founda- 
 tions, occupied as a private barn. 
 
 *5 $....0n horses and cows; in case of loss this Company will 
 
 not be liable for more than $ on any one horse, or more than 
 
 $. . . .on any one cow, and only for its pro rata proportion thereof in 
 case of other Insurance, only while contained in above described 
 barn, and, provided this form is attached to a fire policy, against 
 loss by Lightning while on or off the premises. 
 
 *6 $....0n vehicles (excepting automobiles and motorcycles, 
 storage and use of which is prohibited (under fire policies) unless 
 permission is specifically endorsed hereon) ; robes, horse and car- 
 riage equipment, bicycles in use; hay, grain, feed, coal and wood; 
 carpenter, barn and garden tools and Implements; all only while 
 contained in above described barn. 
 
 *7 $ On sheds, outbuildings and fences on above described 
 
 premises. 
 
 *8 $....0n \ 
 
 *9 $....0n 
 
 *No insurance attaches under any of the above items unless a 
 certain amount is specified and inserted in blank immediately pre- 
 ceding the item. 
 
 NOTE (for infonnation only) : The above described 
 dwelling is occupied, or to be occupied, by families. 
 
RESIDENCE PROPERTY 219 
 
 Not exceeding ten (10) per cent, of the amount of any item of 
 this policy on personal property shall cover also, as per above 
 form, property of guests, and servants, loss, if any, to be adjusted 
 with and payable to the assured named in this policy. 
 
 AUTOMOBILE PERMIT 
 
 {Gasoline or Steam Poiver) 
 
 (This permit is void unless number of machines and location 
 
 of same is given) 
 
 Subject to the following conditions, permission is granted, when 
 not in violation of any law, statute or municipal restriction, to 
 keep not more than (state number) automobiles using gaso- 
 line, in building described under item No of this policy. 
 
 The conditions of this permit, in so far as they are within control 
 of the assured, are as follows: 
 
 1 — That no claim shall be made for loss or damage to an auto- 
 mobile, any of its parts or equipment, unless such automobile, 
 its parts or equipment, is specifically mentioned as insured under 
 this policy. 
 
 2 — That the filling, emptying or opening of any gasoline reservoir 
 of an automobile, while the same is contained in said building, 
 shall be done by daylight or incandescent electric light only, and 
 that there shall be no other artificial light, and no fire or blaze 
 in the room where and when such reservoir is being filled or 
 emptied, or open. 
 
 3 — That there shall be no gasoline in excess of ten (10) gallons 
 (which shall be contained in tight and entirely closed metal cans, 
 free from leak), kept or used inside of said building, except that 
 contained in the reservoirs of automobiles. 
 
 4 — That the supply tank shall be at least five (5) feet from 
 said building, unless it is buried at least two (2) feet below 
 the level of the basement floor. All pipes for filling or ventilating 
 the supply tank to be outside said building, and piping to pump 
 to be laid so as to drain toward the tank. 
 
 5 — That when acetylene gas is used for automobile lamps, it 
 shall be contained in an. airtight metal tank or generator, and not 
 over twenty-five (25) pounds of calcium carbide shall be kept 
 in said building, the same to be contained in water-tight metal 
 receptacles. 
 
 6 — The term "gasoline" shall be held to include naphtha, benzine, 
 or any of the light products of petroleum, coal or tar, by whatever 
 name known. 
 
 7 — The term "automobile" shall be held to include motorcycles, 
 or any other self-propelled vehicle using gasoline or steam. 
 
 Permission is hereby granted for the within described premises 
 to be and remain vacant for a period not exceeding sixty (60) days 
 at any one time, the term "vacant" being construed to mean an 
 
220 THE AGENTS KEY TO FIRE INSURANCE ] 
 
 J 
 
 ( 
 
 empty building devoid of personal habitation; or to be and remain I 
 
 unoccupied for a period not exceeding six (6) months at any one j 
 
 time, the term "unoccupied" being construed to mean a dwelling 
 
 that is entirely furnished, but with personal habitation temporarily 1 
 
 absent. \ 
 
 It is agreed by the assured that the premises shall be kept prop- j 
 
 erly closed and secured to prevent trespassing or the entrance of j 
 
 unauthorized persons during the term of vacancy or unoccupancy. ; 
 
 (Attach other usual clauses.) I 
 
 DWELLING FORM— BUILDING AND (OR) HOUSE- ■ 
 
 HOLD FURNITURE '■. 
 
 {Undernvriters' Association of the Middle Department) 
 
 $....0n the story roof building, and j 
 
 additions thereto adjoining and communicating, all while occupied ; 
 
 as a Dwelling House, including foundations, exterior attachments, i 
 
 plate glass, fresco and wall decorations, plumbing, gas, water, | 
 
 steam and ventilating pipes, stationary heating and lighting ap- j 
 
 paratus, electric wiring, burglar alarms, chandeliers, gas fixtures I 
 
 and appurtenances thereto; storm and screen doors, outside win- \ 
 
 dows and blinds, screens, and awnings, whether in position or ' 
 
 stored therein or in any outbuilding located on premises connected j 
 
 with said Dwelling and on all permanent fixtures therein or ; 
 
 thereon ; situated i 
 
 $....On household furniture, useful and ornamental; including 
 
 carpets, rugs and oil cloth, beds, bedding, linen, wearing apparel j 
 
 and material for same; curtains and draperies; trunks, satchels, : 
 umbrellas, parasols, canes, fans; plate, plated and metal ware, 
 
 glass and china ware; printed books and music; sewing machines; \ 
 
 mirrors, opera and eye glasses, clocks, watches and jewelry in use, ; 
 
 musical instruments, phonograph, phonographic and musical rec- : 
 
 ords; statuary, bronzes, bric-a-brac and other works of art, paint- ! 
 
 ings and engravings and their frames, at not to exceed cost; ; 
 
 billiard and pool tables and appurtenances; games and toys; baby i 
 
 carriages; sportsmen's outfit; bicycles, excluding motor cycles, the ! 
 
 housing of which is prohibited, unless otherwise provided by j 
 
 agreement in writing added to this policy; cameras and amateur \ 
 
 photographers' outfit, artists' materials; vacuum cleaner and its ■ 
 attachments, house and garden tools and implements; kitchen and 
 
 laundry utensils and appliances; fuel, family stores, and such I 
 other articles as are of common household, family, or personal use, 
 
 wear, adornment, or amusement, the property of the assured or i 
 
 any member of the family; it being understood and agreed that ; 
 pictures or other property specifically insured are not covered 
 under this item; and that musical instruments and household 
 
 furnishings purchased on the installment plan are covered here- i 
 
 under only to the extent of the assured's payment thereon; all ' 
 
 while contained in ' 
 
 (Attach usual clauses.) ! 
 
RESIDENCE PROPERTY 221 
 
 PROTECTED DWELLING AND FURNITURE FORM 
 
 {Ne^ York State) 
 
 $ On the story building and additions, with 
 
 roof, while accupied as a Dwelling, including all per- 
 manent fixtures belonging thereto while therein or thereon, situate 
 No on the side of Street, within the cor- 
 porate limits (City or Village) of County of 
 
 State of New York, and located within 500 feet of a public hydrant 
 and within 1^ miles of a regularly organized and equipped public 
 fire department station of said municipality. This insurance also 
 to cover awnings, door and window screens, storm doors and 
 windows, belonging to the dwelling, in place or stored in the 
 above building or in the outbuildings on the premises. 
 
 $..0n household and personal property of every description 
 such as is usual or incidental to a dwelling, belonging to the 
 assured, or any member or servant of the family (including 
 drawings and manuscripts, at not exceeding cost, but excluding 
 articles specifically insured), all while contained in the above 
 described dwelling. 
 
 {a) All buildings hereby insured, or containing the property 
 insured, have none other than chimneys or flues constructed of 
 brick or stone (if built of stone they have flue linings) built 
 from the ground or from a living room and not from an attic, 
 and all smoke pipes enter chimneys or flues unobstructed from 
 view at a point below the attic, except as folloivs: 
 
 {b) None of the buildings hereby insured or containing the 
 property insured is in a continuous row or group, except as 
 folloius : 
 
 {c) The dwelling hereby insured or containing the property 
 insured is not occupied by more than three families and the barn 
 is not used for the stabling of more than four horses, except as 
 folloivs: 
 
 (Attach usual clauses.) 
 
 DWELLING AND FURNITURE FORM 
 
 {Nenu Jersey) 
 
 $ On the story roof building, additions 
 
 and extensions thereto, and all permanent fixtures therein, thereon 
 and belonging thereto, including plumbing, steam, gas and water 
 pipes and fixtures, electric light wiring and fixtures, permanent 
 apparatus for heating and cooking, awnings, stoops, sidewalks, 
 mason and iron work, and fences connected therewith, while 
 occupied exclusively for dwelling purposes by not exceeding two 
 families, situated 
 
 $ On household furniture, useful and ornamental, including 
 
 beds, bedding, linen, wearing apparel, plate and plated ware, 
 printed books and music; pictures, paintings and engravings and 
 
222 THE AGENTS KEY TO FIRE INSURANCE 
 
 their frames, bronzes, statuary and other works of art and objects 
 of virtu (at not exceeding cost price) ; all musical and scientific 
 instruments, sewing machines, mirrors, jewelry and precious stones 
 in use, fuel and family stores and supplies, tools, toys, bicycles, 
 guns and other sporting goods and utensils the property of the 
 insured or any member of the family, all while contained in the 
 above-described building. 
 
 It is understood and agreed that the item of this policy 
 
 also covers awnings, door and window screens, and storm doors 
 and windows, while attached to above-described building, or in 
 amount not to exceed $200 while stored in outbuildings upon the 
 above-described premises. 
 
 (Attach usual clauses.) 
 
 DWELLING AND HOUSEHOLD FURNITURE FORM 
 
 (S. E. U. A.) 
 
 $....0n the story building, its additions and 
 
 foundations, with roof, occupied by as a Dwelling 
 
 House, including all permanent fixtures, wiring and cistern; also 
 window and door screens and awnings, contained in or on said 
 building or stored in other buildings on same premises; situate 
 
 $ On Household and Kitchen Furniture of every description, 
 
 useful and ornamental. Family Wearing Apparel and Material 
 for same. Traveling Equipment, Books, Musical Instruments and 
 Music, Pictures, Engravings and their Frames (at not exceeding 
 cost), Firearms and Accoutrements, Bicycles, Bronzes, Statuary, 
 Articles of Virtu, Jewelry in use, Fuel and Household Stores 
 and such other articles as are generally used in housekeeping, the 
 property of assured or of any member of the family, only while 
 contained in the above described Dwelling and its additions. 
 
 $ On the building, with roof, and its additions, 
 
 situate on above described premises, including foundations, and 
 occupied as a Servants' House. 
 
 $ On the building, with roof, and its additions, 
 
 situate on above described premises, including foundations, and 
 occupied as a Private Barn. 
 
 $ On 
 
 (Attach usual clauses.) 
 
 DWELLING OR APARTMENT HOUSE FORM 
 
 $ On the building occupied as situate 
 
 It is understood and agreed that this policy covers additions and 
 extensions adjoining and communicating; plate glass, frescoes and 
 decorations without restriction; gas and electric fixtures and chan- 
 deliers, mirrors, steam, gas and water pipes and fixtures, plumb- 
 
RESIDENCE PROPERTY 223 
 
 ing work and all permanent fixtures, engines, boilers and connec- 
 tions, heating apparatus, machinery, elevators and hoisting ap- 
 paratus, dynamos, electric apparatus, fixtures, wire screens and 
 awnings, contained in or attached to the building or under the 
 sidewalk in front thereof. 
 
 It is understood and agreed that this policy also covers awn- 
 ings, door and window screens, and storm doors and windows, 
 while in or attached to above described building or stored in out- 
 buildings upon the above described premises. 
 
 Personal Property Clause. — If the building insured under first 
 item is occupied by two or more families for dwelling purposes, 
 then, personal property, if any, of the following kinds belonging 
 exclusively to the insured hereunder, as building landlord and 
 not as tenant, and in actual use solely for the furnishings of said 
 building, viz.: floor coverings of public halls and stairs, window 
 shades, awnings, and screens belonging to said building and at- 
 tached to or stored therein, fuel contained and intended for use 
 therein, employees' uniforms and janitor's supplies, is covered here- 
 under. 
 
 (Add usual clauses.) 
 
 DWELLING FORM (Where Permitted) 
 
 {Extended Description) 
 
 $ On the Dwelling and/or additions adjoining and/or 
 
 communicating, and all permanent fixtures attached thereto and/or 
 contained therein, or connected with same, including foundations, 
 porches, verandas, lighting, heating, ventilating and/or plumbing 
 apparatus, (stationary wiring and/or piping), machinery used in 
 the maintenance of building, mill-wright work, stoves, ranges, fur- 
 naces, gas and/or electric fixtures, electric bells, speaking tubes, 
 interior telephone systems, enunciators, plate, ornamental and 
 stained glass windows and doors; decorations, wall paper, frescoes, 
 wall-safes, signs, awnings, screens and/or storm doors, platforms, 
 elevators, dumb waiters and all other building equipment, appa- 
 ratus rind/or appurtenances even though not specifically mentioned, 
 whether in place, stored in, attached to the outside and/or on the 
 roof of building and/or additions; also architect's and/or inspec- 
 tor's fees for supervising replacements and/or repairs; also side- 
 walks, outside toilets and/or fencing on the premises. Situate 
 
 (Add usual clauses.) 
 
 HOUSEHOLD FURNITURE FORM 
 
 $ On household, personal, professional and scientific furniture, 
 
 fixtures and eflfects of every description, and all articles for orna- 
 ment, entertainment, consumption, wear or display for household or 
 personal use, the property of the insured or any member of the 
 immediate family, and on the legal liability of the insured for 
 loss or damage to similar property of others; 
 
224 THE AGENTS KEY TO FIRE INSURANCE 
 
 Including awnings, casts, curiosities, drawings, dies, implements, 
 jewels, models, medals, patterns, pictures, scientific apparatus, 
 signs, sculpture and tools; 
 
 Excluding accounts, bills, currency, deeds, evidences of debt, 
 money, notes, securities, bullion and manuscript. 
 
 All while contained in or on or attached to the building and ad- 
 ditions, adjoining and communicating, occupied as 
 
 situate 
 
 (Add usual clauses.) 
 
 HOUSEHOLD FURNITURE FORM 
 
 {Extended Description) 
 
 $....0n household and kitchen furniture of every description, 
 useful and ornamental, utensils and furnishings, lambrequins, cur- 
 tains, window-shades, blinds and hangings, beds, bedding, linen, 
 carpets, rugs, toilet articles, wearing apparel, plate, plated-ware, 
 crockery, china and glassware, pianos, organs and other musical 
 instruments, covers and stools, chandeliers, electroliers, lamps, 
 library of printed books and music, pictures, engravings, photo- 
 graphs, portraits, mirrors and their frames, bronzes, statuary, works 
 of art, bric-a-brac and objects of virtu, casts, models, curiosities, 
 scientific and mechanical instruments, appliances, utensils, tools and 
 implements, billiard and pool tables and appurtenances, fire-arms, 
 military and society equipments, articles for use, recreation, amuse- 
 ment or personal adornment, sporting, photographic and traveling 
 outfits, canes, umbrellas, parasols, fans, opera and field glasses, 
 artists' materials, garden implements, hose and reel, bicycles, motor- 
 cycles, velocipedes, baby carriages, tricycles and other vehicles, 
 smokers' articles, toys, small wares, embroideries, materials for 
 personal, family or household use, in process of making or not 
 made up, clocks, ornaments, safes, typewriting, adding, duplicating 
 and/or billing machines, sewing machines, and appurtenances, 
 watches, jewelry and precious stones, robes and outfits for riding 
 and driving, signs, awnings, screens and/or storm doors, flags, 
 plants and shrubbery, birds and cages, natural history specimens 
 and their appurtenances, wines, liquors, household supplies, and 
 family stores and fuel and all articles used for ornamentation, 
 amusement, travel, study or research, the property of the assured, 
 or any member of the family household, their relatives, friends, 
 guests, and/or servants, the property of the assured or in which 
 the assured may have an interest or for which the assured may be 
 liable or sold but not removed, including all other household equip- 
 ment, apparatus, and/or appurtenances even though not specifically 
 mentioned. 
 
 All while contained in, attached to the outside and/or on the 
 roof of building and/or additions, situate 
 
 (Add usual clauses.) 
 
RESIDENCE PROPERTY 225 
 
 HOUSEHOLD FURNITURE FORM 
 
 $ On household or other personal property for use, consump- 
 tion or adornment, including all property enumerated in the policy 
 on which liability is required to be specifically assumed; the prop- 
 erty of the insured or any member of the immediate family, and 
 on the interest of the insured in and/or liability for similar property 
 held by the insured on storage, or for repairs, or otherwise, belong- 
 ing in whole or in part to others; all while contained in, on or at- 
 tached to the building, or while temporarily in the open on 
 
 premises, situate 
 
 Property covered under the building item is not covered under 
 the contents item, nor property that is the subject of more specific 
 insurance. 
 
 (Attach usual clauses.) 
 
 PRIVATE GARAGE AND CONTENTS 
 
 $ On the building and additions adjoining and com- 
 municating, and all permanent fixtures, including gasoline and oil 
 apparatus, attached to the building, while occupied as a private 
 garage, situate 
 
 $ On furnishings and equipment, tools, apparatus, supplies, 
 
 household furniture in use, liveries and all similar property, while 
 contained in the above described garage. 
 
 This policy shall not cover motor-driven vehicles; nor shall it 
 cover on other property that is more specifically insured. 
 
 (Add usual clauses.) 
 
 PRIVATE BARN AND CONTENTS AND OUT- 
 BUILDINGS (Illustration) 
 
 $ On the story roof building, and ad- 
 ditions and extensions adjoining and communicating, and all perma- 
 nent fixtures therein and thereon, a part of the realty, while occu- 
 pied as a private barn and tool house, situate 
 
 $....0n horses contained therein (limit on any one horse not to 
 exceed $ ) 
 
 $ On vehicles (excluding motor-driven vehicles), horse and 
 
 carriage equipment, liveries, hay, grain and feed, barn and gar- 
 den tools, and household furniture in use therein, while con- 
 tained in said building. 
 
 $....0n tool house and permanent fixtures therein and thereon, 
 a part of the realty, situate 
 
 $....0n play house and permanent fixtures therein and thereon, 
 a part of the realty, situate 
 
 $....0n personal property of all descriptions while contained 
 therein. 
 
 (Add usual clauses.) 
 
226 
 
 THE AGENTS KEY TO FIRE INSURANCE 
 
 COUNTRY ESTATE FORM (Illustration) 
 
 $. . . .On the following described property situate on the premises 
 
 of the insured (location), as per diagram on file with the.. 
 
 Insurance Company. 
 
 Building. — The term building shall include additions and ex- 
 tensions adjoining and communicating, foundations, plumbing, 
 steam, gas and water pipes; lighting, heating and service ap- 
 paratus, and all permanent fixtures; plate and ornamental glass, 
 fresco work and decorations ; also storm doors and windows, 
 screens, screen doors and awnings, whether in position or stored 
 in building, or belonging to the building and stored in outbuild- 
 ings on the premises described herein. 
 
 Contents. — The term contents shall include household furnish- 
 ings and utensils of every description, useful and ornamental ; 
 fuel and family stores; printed books and music, pictures, paint- 
 ings, engravings and mirrors and their frames (value in case of 
 loss not to exceed cost) ; wearing apparel, watches and jewelry in 
 use, works of art, traveling equipments, musical and scientific 
 instruments, sporting equipment, bicycles, tools and implements; 
 and on horses, cows, chickens and all other fowls and live stock 
 
 (limit of value not exceeding $ each on horses, $....each on 
 
 cattle, $ each on pigs, $ each on fowls), vehicles (exclud- 
 ing motor driven vehicles), horse and vehicle equipment, liveries, 
 hay, straw, grain and feed, barn and garden tools, and all other 
 personal property for use, consumption or adornment, including 
 that on which liability is required by the policy to be specifically 
 assumed; the property of the insured or any member of his own 
 family, and on the legal liability of the insured for loss or damage 
 to similar property of others. This item shall not cover, however, 
 on accounts, bills, currency, deeds, evidences of debt, money, notes 
 or securities; nor property that is covered under the building 
 item; nor shall personal property be covered under any general 
 item when the subject of more specific insurance. 
 
 It is understood and agreed that the amounts stated in the fol- 
 lowing schedule under the item "building" and/or the item "con- 
 tents," shall attach in accordance with the form as given under 
 those respective headings, and that the amount of insurance is 
 divided and applies as per the following schedule, viz.: 
 Item Description of Property Buildings Contents Total 
 
 On main dwelling 
 On carriage house 
 
 On garage 
 
 On chicken house 
 On tool house . . . 
 On playhouse .... 
 On farm barn . . . 
 On hav barn .... 
 
 Totals 
 
 $40,000 
 9,000 
 6,000 
 1,000 
 600 
 400 
 7,000 
 2.000 
 
 $66,000 
 
 $30,000 
 6,000 
 2,000 
 1,000 
 800 
 200 
 8,000 
 2,000 
 
 $50,000 
 
 $70,000 
 
 15,000 
 
 8,000 
 
 2,000 
 
 1,400 
 
 600 
 
 15,000 
 
 4,000 
 
 $116,000 
 
RESIDENCE PROPERTY 227 
 
 This policy shall cover a pro rata proportion of each of the 
 above described items. 
 (Add usual clauses.) 
 
 FARM FORM 
 
 {Neiv York State) 
 
 Items must not be bracketed. Farm produce must be insured 
 
 specifically in each building. 
 
 (NOTE: — Most rating associations have farm forms that are 
 mandatory; that of New York State is given as an illustration.) 
 
 $ . . . . On story roofed building with ad- 
 ditions, foundations and all permanent fixtures, while occupied as 
 a private family residence. 
 
 $ On household furniture, useful and ornamental (exclud- 
 ing musical instruments), family wearing apparel, fuel, family 
 provisions, stores, printed books, plate and plated ware, sewing 
 machine, pictures with their frames (not exceeding cost), while 
 contained therein. 
 
 $ On musical instruments, while contained therein. 
 
 $ On farm produce in excess of the amount required for 
 
 family use while contained therein. 
 
 $ On dairy products in excess of the amount required for 
 
 family use while contained therein. 
 
 $,...On barn No. 1 on diagram, including sheds and additions 
 attached. 
 
 $ On farm produce and feed, while therein, and in stacks 
 
 within 100 feet. See paragraph (e) below. 
 
 $....On 
 
 $....0n barn No. 2 on diagram, including sheds and additions 
 attached. 
 
 $....On farm produce and feed while therein, and in stacks 
 within 100 feet. See paragraph (e) below. 
 
 $ On 
 
 $..,.0n barn No. 3 on diagram, including sheds and additions 
 attached. 
 
 $....0n farm produce and feed while therein. See paragraph 
 (e) below. 
 
 $....0n frame building while occupied as granary, No. 4 on 
 diagram. 
 
 $....On farm produce and feed while therein. See paragraph 
 (e) below. 
 
 $. . . .On farming tools and utensils, including mower and reaper, 
 while in said barns. 
 
 $. . . .On wagons, carriages, excluding motor vehicles, the storage 
 and use of those using gasoline being prohibited, unless permission 
 is specifically endorsed hereon, sleighs, harness with carriage and 
 horse equipment while in said barns. See paragraph (h) below. 
 
228 THE AGENTS KEY TO FIRE INSURANCE 
 
 $....0n horses, Class 1, while in said barns. See pro rata 
 clause. 
 
 $....0n sheep, Class 2, while in said barns. See pro rata 
 clause. 
 
 $....0n cows, oxen or bulls, Class 3, while in said barns. See 
 pro rata clause. 
 
 $. . . .On hogs. Class 4, while in said barns. See pro rata clause. 
 
 $....0n young stock under two years of age, Class 5, while 
 in said barns. See pro rata clause. 
 
 $ On 
 
 $.... TOTAL INSURANCE. 
 
 All situated on the farm owned by while occupied by 
 
 in the Township of County of State of 
 
 New York. 
 
 For a more complete description, reference is had to the Appli- 
 cation and Survey of the Assured, No , on file with this 
 
 Company, which is a warranty by the assured and is made a 
 part of this contract. 
 
 (a) If live stock is insured hereunder, it is insured subject 
 to the provisions of the "Live Stock Pro-Rata Clause," as follows: 
 
 Live Stock Pro Rata Clause. It is a condition of this contract 
 that the amount covered upon each Class of live stock, as above, 
 shall apply at the time of loss in an equal sum upon each animal 
 in the proportion that the number of animals in each such class 
 shall bear to the total amount covered on that class. Provided, 
 that except on animals covered specifically by names or numbers, 
 this Company shall not be liable for more than, or in case of 
 
 other insurance, for more than its pro rata proportion of , $ 
 
 on any horse, mule or colt; $ on any head of cattle over 
 
 two years old; $ on any head of cattle under two years 
 
 old; $ on any sheep or $ on any hog, nor for more 
 
 than the actual cash value of any such animal. 
 
 (b) Live stock covered by this policy is insured against death 
 only directly caused by lightning, meaning thereby the use of 
 the term lightning as above stated, in said barns, or while at 
 large on owner's premises or elsewhere. 
 
 (c) This Company shall not be liable for any loss arising from, 
 or occasioned by, the use of open lights, or gasoline, burning 
 fluid or any chemical oil, for any purpose in any barn or out- 
 building insured or containing property insured by this policy. 
 
 (d) Permission is hereby granted for the use of kerosene oil 
 for lights and for one kerosene oil stove in dwelling, provided 
 lamps or lanterns and (or) stove are filled during daylight only 
 and when flame is extinguished. 
 
 (e) The use of fire heat in any barn, hop house, fruit house, 
 evaporator or other outbuilding insured or containing property 
 insured by this policy, or exposing property insured hereby, without 
 written permission hereon, is prohibited. 
 
RESIDENCE PROPERTY 229 
 
 (f) The use of any incubator or brooder in or within fifty 
 feet of any building described in this policy without permission 
 endorsed hereon is prohibited. 
 
 (g) If harness and (or) robes are insured hereunder, this 
 policy shall extend to cover same while contained in the dwelling, 
 under item of policy covering such property. 
 
 (h) Pro-rata Distribution Clause, applying to items 16 and 17. 
 It is a condition of this contract that the amounts insured under 
 each of said items shall attach in each building, shed or other 
 structure and (or) place in that proportion of the amounts insured 
 under said items that the value of the property covered by this 
 policy in each building, shed and other structure and (or) place 
 shall bear to the value of all the property described in said 
 items respectively. 
 
 (i) Permission is hereby given to use steam as a motive power 
 for threshing grain, subject to the following warranties on the 
 part of the assured: 
 
 Warranties : 
 
 First. — When there is a fire in the furnace of the boiler, it shall 
 not be located nearer than twenty-five feet from any building or 
 stack of hay or straw, nor shall any litter or straw be allowed 
 to collect or remain within fifteen feet of said furnace and mineral 
 coal, or wood for kindling, only shall be used for fuel. 
 
 Second. — A cap or screen, in perfect order, shall cover the 
 smokestack during all the time a fire is in the furnace and all 
 modern means used for safety and protection shall be attached to 
 the boiler and engine, and shall be in good condition. 
 
 Third. — At least three pails of water shall be kept within ten 
 feet of the furnace, while there is any fire in the furnace. 
 
 Fourth. — During the absence of the persons engaged in threshing, 
 a competent watchman shall be left in attendance until all the 
 fire is extinguished. 
 
 (j) Machines of all kinds, other than hand power, wool, 
 tobacco, hops, poultry, and dressed animals must be insured spe- 
 cifically, not being covered under any general term. 
 
 (Attach Lightning and Three-quarter Value Clauses.) 
 
 FARM FORM (West) 
 (Illustration) 
 
 FARM PROPERTY FIRE, LIGHTNING AND 
 TORNADO FORM 
 
 (1) $ On story roof Dwelling House, 
 
 including foundations, additions now and hereafter attached, irre- 
 movable fixtures, plumbing, heating and lighting apparatus, porches, 
 storm doors and screens while therein or attached thereto or while 
 stored in any buildings on the premises. 
 
280 THE AGENTS KEY TO FIRE INSURANCE 
 
 (2) $ On Household and Kitchen Furniture and Furnish- 
 ings of all kinds, useful and ornamental, belonging to the assured 
 or to members of assured's family, including family wearing 
 apparel and materials for same, trunks, handbags, umbrellas, 
 canes, family provisions and produce, musical instruments, sheet 
 music, silver plate and plated ware, watches, clocks, and jewelry 
 in use; also printed books, pictures, engravings and frames (at 
 not exceeding cost price), firearms and their equipment, lodge 
 and social regalia, fuel, sewing machine and iron safe, only while 
 contained in the above-described dwelling house and in the summer 
 kitchen used in connection therewith. 
 
 (3) $....0n 
 
 (4) $. . . . On ; 
 
 (5) $....0n 
 
 (6) $ On Smoke and Produce House marked No 
 
 on diagram on application. 
 
 (7) $....On Family Provisions and Produce, only while con- 
 tained in the above-described Smoke and Produce House. 
 
 (8) $...,On Barn and Sheds attached, including foundations 
 and fixtures therein or thereon, marked No. 1 on diagram on 
 application. 
 
 (9) $....0n Barn and Sheds attached, Including foundations 
 and fixtures therein or thereon, marked No. 2 on diagram on 
 application. 
 
 (10) $ On Barn and Sheds attached, including foundations 
 
 and fixtures therein or thereon, marked No. 3 on diagram on 
 application. 
 
 NOTE — Silos (whether attached to any of said buildings or not) 
 and silage are not covered by this Policy unless they are insured 
 specifically under separate items. 
 
 (11) $ On Granary marked No on diagram on ap- 
 plication. 
 
 (12) $ On Crib marked No on diagram on applica- 
 tion. 
 
 (13) $ On roof Silo, situated (as shown on 
 
 diagram on application) as follows: 
 
 (14) $....0n 
 
 (15) $....0n 
 
 (16) $ On Grain and Seeds of all kinds while in dwelling, 
 
 granaries, barns and cribs, and against fire and lightning only 
 on grain while in stacks, shocks or sacks, on premises herein 
 described. 
 
 (17) $ On Harness, Saddles, Robes, Blankets, Whips, Car- 
 riages, Buggies, Sleighs, Wagons, including hay racks and all 
 other farm vehicles (excluding steam or motor driven vehicles), 
 while on or temporarily oflF the premises. 
 
 (18) $ On Hay, Straw, Fodder, Ground Feed and all kinds 
 
 of manufactured stock foods (not specified under Item 16 on grain 
 
RESIDENCE PROPERTY 231 
 
 and seeds and Item 20 on silage), while in barns or sheds, on 
 the premises herein described. 
 
 (19) $ On Mowers, Reapers, Harvesters, Farm Implements, 
 
 Tools, Cream Separators, Milk Cans, Empty Sacks and Bags, 
 Utensils and Farm Machinery (excluding threshing machines, 
 windmills, electric motors, gasolene, kerosene and steam-power 
 engines and machines), on or temporarily off the premises herein 
 described. 
 
 (20) $ On Silage while in silos on the premises herein de- 
 scribed. 
 
 (21) $....0n 
 
 (22) $ Against fire and lightning only (no premium being 
 
 charged for tornado) on Hay, Straw and Fodder in stacks on 
 cultivated ground only, on the premises herein described, not 
 exceeding $100 on any one stack of hay or $50 on any one stack 
 of straw or fodder. 
 
 (23) $ On Horses, Mules and Colts. 
 
 (24) $....0n Cattle. 
 
 (25) $....0n Sheep. 
 
 (26) $....OnHogs. 
 
 {21) $. . . .On 
 
 No insurance attaches under any of the above items unless a 
 definite amount is specified and inserted in blank immediately 
 preceding the item. 
 
 Any insurance under this policy on live stock (unless otherwise 
 provided) is extended to cover while on or temporarily off the 
 premises herein described except while in transit by common 
 carrier or in public stock yards. 
 
 In no case (except in the case of more valuable animals insured 
 specifically by names and/or numbers) shall any one horse or 
 
 mule over two years old be valued at more than $ ; nor more 
 
 than two-thirds of said sum if under two years old; nor for 
 more than one-third of said sum if under one year old; nor 
 shall any one head of cattle over two years old be valued at 
 more than $..,.; nor shall any one head of cattle under two 
 years old be valued at more than one-half of said sum; nor shall 
 any one sheep be valued at more than $5.00; nor shall any one 
 hog be valued at more than $20.00; nor in any case for more 
 than the actual cash value of the animal of any class destroyed 
 or damaged, such cash value in no event to exceed the valuations 
 given above. 
 
 Said property being owned by the assured, and (except as 
 
 herein otherwise provided) situated on and confined to 
 
 acres in the of Section Township Range 
 
 County of State of 
 
 Special Permits Applying Only to Fire and Lightning Coverage 
 
 The following permits are hereby granted by the Company and 
 made a part of this Policy, to wit: 
 
232 THE AGENTS KEY TO FIRE INSURANCE 
 
 To Construct Ordinary Outbuildings. — Permission to make 
 alterations, repairs and additions to any building herein described, 
 and the insurance, if any, on such building is hereby extended 
 and made to cover such repairs and improvements, subject to the 
 conditions of this Policy. 
 
 Ninety days' permission granted to complete and occupy any 
 new building insured hereunder in process of construction and 
 this policy shall, subject to its other conditions, cover such building 
 and the material to be used in its construction while on the 
 described premises. 
 
 Good brick flues must be provided in all buildings in which 
 fires are to be used. 
 
 Vacancy. — Permission given for any of the buildings herein 
 described to remain vacant, unoccupied or uninhabited for not 
 exceeding ten consecutive days. 
 
 Electric Light Permit. — Permission to use electric lights in all 
 buildings. 
 
 Natural Gas Permit. — Permission to use natural gas for fuel 
 and light, provided this Company shall not be liable for loss 
 or damage caused by explosion of natural gas on the premises 
 unless fire ensues, and then for loss or damage by fire only. 
 
 Kerosene Permit. — Permission to use kerosene for lighting, heat- 
 ing and cooking in the dwelling house and summer kitchen, and 
 for use in closed lanterns for lights in barns and outbuildings. 
 
 Gasolene and Kerosene Stove Permit. — Permission to use gaso- 
 lene or kerosene stoves in the dwelling house or summer kitchen. 
 
 Gasolene Gas Permit. — Permission to use a gasolene gas lamp 
 or gasolene gas lighting system for lights in the dwelling house 
 or summer kitchen. Gasolene lamps or gasolene lanterns for 
 lights and open lights in barns and outbuildings are positively 
 prohibited. 
 
 Gasolene Engine Permit. — Permission to use a gasolene engine 
 for power purposes on the premises. 
 
 Automobile Permit. — Permission to house one automobile in 
 barn or other outbuilding, provided the part of the building in 
 which the automobile is stored has only an earth, concrete or other 
 incombustible floor. 
 
 Steam Power Permit. — Permission to use steam power for thresh- 
 ing, shelling corn and other farm work outside of buildings. 
 
 Incubator and Brooder Permit. — Permission to use chicken in- 
 cubators and brooders anywhere on the premises except in barns. 
 
 Lightning Clause. — Except as provided in the Electrical Exemp- 
 tion or Dynamo Clause below, this policy shall cover any direct 
 loss or damage caused by lightning (meaning thereby the com- 
 monly accepted use of the term lightning, and in no case to 
 include loss or damage by cyclone, tornado or windstorm), not 
 exceeding the sum insured, nor the interest of the insured in the 
 
RESIDENCE PROPERTY 233 
 
 property, and subject in all other respects to the terms and con- 
 ditions of this policy. Provided, however, if there shall be any 
 other insurance on said property this company shall be liable only 
 pro rata with such other insurance for any direct loss by lightning, 
 whether such other insurance be against direct loss by lightning 
 or not. 
 
 Electrical Exemption or. Dynamo Clause. — If dynamos, ex- 
 citers, lamps, motors, switches or other electrical appliances or 
 devices are covered under this policy, this company shall not be 
 liable for any electrical injury or disturbance, whether from 
 artificial or natural causes, unless fire ensues, and then only for 
 such loss or damage to them as may be caused by such ensuing 
 fire; this limitation to be operative notwithstanding any provision 
 to the contrary in the lightning clause attached. 
 
 Important 
 
 Permission for the use of GASOLENE for any of the above 
 mentioned purposes is granted upon the express warranty on 
 the part of the assured that the lamps, reservoirs or holders will 
 be filled by daylight only, and when no artificial light is burning 
 in the same room, and when the burners or lamps are not lighted; 
 and further, that no gasolene except that contained in said lamps, 
 reservoirs or holders shall be kept or stored within fifteen (15) 
 feet of any of the buildings herein described. 
 
 Cyclone, Tornado, or Windstorm Clause. — In consideration 
 of a part of the premium herein named this policy also covers 
 all direct loss or damage by Cyclone, Tornado, or Windstorm, 
 
 except as herein provided, to an amount not exceeding 
 
 Dollars to the property herein described and in the manner speci- 
 fied, subject to the terms and conditions of this policy. Provided, 
 however, if there be other valid insurance on such property against 
 direct loss by Cyclone, Tornado, or Windstorm, this Company 
 shall be liable only pro rata with such other valid and collectible 
 insurance for any such loss by Cyclone, Tornado, or Windstorm. 
 
 This Company Will Not Be Liable for Any Cyclone, Tor- 
 nado, OR WindstoRxM loss or damage to buildings (or their con- 
 tents) in course of construction or re-construction unless same are 
 entirely enclosed and under roof, with all doors and windows 
 permanently in place; nor to buildings covered, in whole or in 
 part, with hay, straw, thatched or board roofs; nor to open sheds; 
 nor for the blowing down of loose clap-boards, eave-troughs or 
 spouts, weather-vanes, lightning-rods, old and defective flues and 
 shingles, metal smoke-stacks and window-blinds; nor for wind- 
 mills or dilapidated buildings. It is further understood and 
 agreed that this insurance does not cover any loss or damage from 
 cloud-burst, flood or overflow, cold weather or blizzard; nor 
 from hail, rain or snow (whether driven by wind or not) ; nor 
 to hay or grain in stacks or loose in fields; nor for loss or 
 damage to live stock caused by freezing in blizzards, or snow- 
 storms, or by blowing down of trees, hay or straw stacks. 
 
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336 THE AGENTS KEY TO FIRE INSURANCE 
 
 WHEAT AND STRAW ON FARM— VIRGINIA 
 (S. E. U. A.) 
 
 $ On wheat and straw, covering in straw and garner; all 
 
 while contained in stack, 'barn, shock, granary, or elsewhere on 
 assured's farm, situate about 
 
 Attach O. I. P.; Full Coinsurance, Lightning and Steam Thresh- 
 ing clauses. 
 
 FARM AND GRAIN FORM 
 
 {Uniformity West) 
 (For Use on Either Fire or Tornado Policies) 
 
 On grain and seeds of all kinds (including sacks and bags), 
 cut and uncut (but not including straw or stubble), threshed or 
 unthreshed, shelled or unshelled, in shocks, stacks and ricks on 
 cultivated land, in dwelling house, barns, bins, tanks, granaries and 
 cribs, all while situated as follows: 
 
 $ .... On y^ Section Township Range 
 
 County of State of 
 
 $ .... On ^ Section Township Range 
 
 County of State of 
 
 $ On ]/4 Section Township Range 
 
 County of State of 
 
 $. . . .On ^ Section Township Range 
 
 County of State of 
 
 This insurance shall attach in each building, division, stack, 
 rick or location in such proportion as the value in each building, 
 division, stack, rick or location bears to the aggregate value of 
 the subject insured. 
 
 It is hereby agreed and understood that any insurance covering 
 against Tornadoes, Cyclones and Windstorms, covers grain and 
 seeds as above specifically described only while in buildings on 
 premises mentioned and in no event upon grain and seeds in the 
 field or in stacks, ricks and shocks. 
 
 Loss, if any, to be adjusted with assured and payable to 
 
 Mortgagee 
 
 Permission granted to use Steam or Gasoline as a Motive Power 
 for Thrashing Grain. 
 
 Value of Grain, $ Amount of Additional Insurance, Fire, 
 
 $ Tornado, $. . . .Amount of Mortgage, $ 
 
DIVISION IV 
 
 CHURCHES, SCHOOLS, COLLEGES AND 
 PUBLIC BUILDINGS 
 
 Policies on this class of property usually cover, separately, 
 the building, and the contents thereof, and contain the follow- 
 ing permits and clauses, worded in accordance with local 
 rules : 
 
 Other Insurance, Lightning, Dynamo, Electric Lighting or 
 other Lighting that may be required, Kerosene Oil Stove, 
 Mechanics, and sometimes the Work and Materials; also 
 Vacancy or Unoccupancy as permitted, together with such 
 other clauses as may be necessary or desirable, or as may be 
 required by local underwriting rules. (See also Special 
 Agreements.) 
 
 No special permit is necessary for holding entertainments 
 (although frequently granted) unless special apparatus is 
 used, such as motion picture machines or other apparatus that 
 might be held to increase the hazard. The insurance of these 
 classes of property as such is notice to the companies of their 
 uses for the customary purposes and activities. 
 
 The rules of the various associations differ regarding the 
 fixtures that may be included with the building, and these 
 should be referred to before preparing the form. 
 
 CHURCH, CHAPEL OR SUNDAY SCHOOL 
 
 {Neiv York) 
 
 $....0n the building, occupied for church pur- 
 poses, situate , but excluding cost of excavations and 
 
 foundations of building below the level of the ground. (This 
 may be omitted if desired.) 
 
 This item covers all adjoining additions and extensions thereto 
 if communicating, sidewalks, yard fixtures, fences, railings, pews, 
 pulpits, altars, confessionals, window plate and ornamental glass, 
 frescoing and plain and ornamental painting, steam, gas and 
 water pipes, heating apparatus and fixtures and all appliances 
 pertaining thereto, dynamos and all electrical and mechanical 
 apparatus and appurtenances, bells, tower clocks, ventilating 
 apparatus and all permanent fixtures. 
 
 $....On the church, altar, school and other movable furniture, 
 useful and ornamental, carpets, floor coverings, paintings, pictures 
 and engravings and their frames, musical instruments (excepting 
 
 237 
 
238 THE AGENTS KEY TO FIRE INSURANCE { 
 
 i 
 
 pipe organs), statuary, stations, vestments, plate, printed books ^ 
 and music, church and school paraphernalia and supplies. ' 
 
 $ On pipe organ and motors and all connections and attach- >■ 
 
 ments thereto — all while contained in above described premises. \ 
 
 Permission to hold fairs, dramatic and literary entertainments, , 
 musical concerts, games or amusements of any kind (excluding] 
 motion picture exhibitions) in said building. j 
 
 Privilege granted to use steam, hot air furnaces or grates f or ^ 
 heating; to use gas or kerosene oil for lighting, heating or cooking; 
 to be unoccupied a portion of each year. 
 
 (Attach usual clauses.) 
 
 CHURCH FORM 
 
 {S. E. U. A.) 
 
 $. . . .On the Church Edifice, with roof, including 
 
 chapel and parish house adjoining and communicating, tower, 
 foundations, stained and leaded glass windows (when not spe- 
 cifically insured), pews, carvings, inscriptions, tablets, plumbing,! 
 gas, water, steam and ventilating pipes, stationary heating andjt 
 lighting apparatus, boilers and their connections, electric wiring,! 
 chandeliers, gas and electric fixtures, and all other appurtenances! 
 and permanent fixtures therein and thereon, while occupied as al 
 place of public worship, and known as j1 
 
 $ On Pipe Organ, including water and/or electric motor,] 
 
 and all appurtenances, connections and attachments thereto; allj 
 only while contained in said church edifice. 
 
 $ On Furniture and Fixtures, useful and ornamental, 
 
 consisting principally of church, chancel and choir furniture, altar,| 
 pulpit, chancel-rail, font, vestments, altar and chancel hangings,] 
 banners, plate, musical instruments (when not specifically insured), j 
 printed books, printed music, maps, paintings, engravings, picturesi 
 and their frames (in case of loss or damage no one painting,^ 
 engraving or picture shall be valued at more than the actual costf 
 of same), chairs, whether attached to building or not, platformsi 
 containing the same, gas stove, crockery and other kitchen fur- 
 nishings and fuel; all only while contained in the above described] 
 building, situate 
 
 (Attach usual clauses.) 
 
 CHURCH FORM 
 
 (For Use on Either Fire or Tornado Policies) 
 {Uniformity West) 
 
 *1 $. . . .On the story roof building, witht 
 
 spire or tower rising about feet above peak of roof andl 
 
 about feet above ground, including foundations, plumbing, 
 
 electric wiring and stationary heating, lighting and ventilatingi 
 
CHURCHES, SCHOOLS AND PUBLIC BUILDINGS 239 
 
 apparatus and fixtures therein; also all permanent fixtures (ex- 
 cluding organ with operating motor), including clocks, bells, fixed 
 seats, railings, altars and stained glass windows, belonging to 
 and constituting a part of said building; only while occupied for 
 church purposes, and situated 
 
 *2 $....0n organ with operating motor, only while contained 
 in the above described building. 
 
 *3 $ On church furniture and fixtures, useful and orna- 
 mental; pianos and other musical instruments (excluding organ 
 with operating motor) ; pictures, paintings, engravings, including 
 their frames, statuary and sculpture, all at not exceeding cost; 
 vestment?, fonts, altar vessels, printed church and Sunday-school 
 books; movable heating apparatus and fuel; and all other furniture 
 and fixtures not belonging to and constituting a permanent part 
 of the building; all only while contained in the above described 
 building. 
 
 *4 $ On 
 
 *No insurance attaches under any of the above items unless a 
 certain amount is specified and inserted in blank immediately 
 preceding the item. 
 
 The use of MOVING PICTURE MACHINES is prohibited 
 (under fire policies) unless special permit is endorsed hereon, 
 
 (Attach usual clauses.) 
 
 CHURCH (CATHOLIC) AND PAROCHIAL SCHOOL 
 FORM (Illustration) 
 
 $ On the building, occupied for church pur- 
 poses, situate 
 
 This item covers additions and extensions adjoining and com- 
 municating, railings, pews, pulpits, altars, confessionals, fixed 
 stations, windows, plate glass, frescoes and decorations, gas, water 
 heating, lighting and ventilating pipes, fixtures and apparatus, and 
 appliances pertaining thereto, bells and tower clocks. 
 
 $....0n pipe organs, including all water motors, dynamos, 
 electrical or mechanical apparatus and appurtenances thereto, 
 while contained in the above described building. 
 
 $....0n church, altar, school and other movable furniture, not 
 I covered under the building or organ insurance, including pictures, 
 paintings, engravings and their frames; musical instruments (ex- 
 cept pipe organs), printed books and music, statuary, costumes and 
 restments, scenery, awnings, fuel and stores, and all other similar 
 property, while contained in the above described building. 
 
 Permission granted for other insurance, to hold fairs, concerts, 
 literary and dramatic entertainments, and to be unoccupied during 
 the customary periods. 
 
 Attach Lightning and Dynamo Clauses, Electric Light permit, 
 I Mechanics permit, and others needed or required. 
 
 NOTE: — If used for insuring school property insert "and/or 
 school" after the word "church" in first line. 
 
240- THE AGENTS KEY TO FIRE INSURANCE 
 
 SCHOOL BUILDING AND CONTENTS FORM 
 
 {Neiv York) \ 
 
 $....On the building, occupied for school purposes, and; 
 
 known as situate but excluding cost of excavations \ 
 
 and foundations of building below the level of the ground. 
 
 This item covers all adjoining additions and extensions thereto , 
 if communicating, and all permanent fixtures therein, thereon and i 
 belonging thereto, including steam, gas and water pipes, plumbing, ; 
 heating, lighting, ventilating and electrical apparatus and ap- j 
 purtenances, awnings, fences, railings, sidewalks and yard fixtures. ■ 
 
 $....0n school and other movable furniture, useful and orna- i 
 mental, carpets, floor covering, paintings, pictures, engravings ! 
 and their frames, musical instruments, statuary and other works | 
 of art, articles of virtu, printed books and music, school parapher- i 
 nalia and supplies, fire extinguishers, hose together with spare parts i 
 and attachments to same, scientific cabinets and collections, labora- j 
 tory apparatus and chemicals, maps, diagrams, models, stationery, 1 
 blank books, and typewriters and appurtenances, while contained in ! 
 above-described building. | 
 
 Permission to hold fairs, dramatic and literary entertainments, j 
 musical concerts, games or amusements of any kind (excluding 
 motion picture exhibitions) in said building. | 
 
 (Attach usual clauses.) \ 
 
 SCHOOL FORM 
 
 (For Use on Either Fire or Tornado Policies) \ 
 
 {Uniformity West) \ 
 
 *1 $ .... On the story roof school building, i| 
 
 including foundations, plumbing, electric wiring and stationary ^ 
 heating, lighting and ventilating apparatus and fixtures therein; -i 
 also all permanent fixtures (excluding organ with operating motor), 
 including fixed seats, desks, railings, altars, clocks, bells and 
 stained glass windows, belonging to and constituting a part of 
 said building; only while occupied for school purposes, with 
 privilege of occasional public meetings, and situated 
 
 This insurance shall also cover under this item, if the property 
 of owner of building, door and window screens and storm doors^ 
 and windows, belonging to above described building, while at- 
 tached thereto or stored therein. 
 
 *2 $....0n organ with operating motor, only while contained in-; 
 the above described building. •- 
 
 *3 $ On movable furniture and fixtures of every description, { 
 
 useful and ornamental ; maps, library and supply of books and | 
 stationery; mirrors, pictures, paintings, engravings, including their t 
 frames, statuary and sculpture, all at not exceeding cost; labora-^ 
 tory supplies and equipment; scientific supplies and equipment; J 
 manual training machinery, supplies and equipment; gymnasiums 
 
CHURCHES, SCHOOLS AND PUBLIC BUILDINGS 241 
 
 supplies and equipment; piano and other musical instruments (ex- 
 cluding organ with operating motor) ; stage scenery and equip- 
 ment; movable heating apparatus, electrical apparatus, appliances 
 and devices; fuel and provisions; and all other articles and 
 apparatus as are usually contained in school buildings; all not 
 belonging to and constituting a permanent part of the building 
 and only while contained in the above described building. 
 
 *4 $....0n : 
 
 *No insurance attaches under any of the above items unless a 
 certain amount is specified and inserted in blank immediately 
 preceding the item. 
 
 The use of MOVING PICTURE MACHINES is prohibited 
 (under fire policies) unless special permit is endorsed hereon. 
 
 (Attach usual clauses.) 
 
 SCHOOL FORM FOR INSURING ALL SCHOOLS OF 
 A CITY (Illustration) ' 
 
 $. . . .On school properties of the City of , as hereinafter 
 
 described and specified. 
 
 Building. — The term "building" shall include additions and ex- 
 tensions adjoining and communicating, platforms, bridges and fire 
 escapes; plate glass, frescoes and decorations; heating, lighting, 
 ventilating, pumping, plumbing, elevating and water fixtures and 
 equipment, and all permanent fixtures when a part of the realty; 
 outbuildings, fences and yard fixtures pertaining thereto. 
 
 Contents. — The term "contents" shall include furniture and fix- 
 tures consisting principally of desks, chairs, benches, musical in- 
 struments, the articles enumerated in the policy on which liability 
 must be specifically assumed, and all other school, gymnasium, 
 laboratory and manual training furniture, equipment, materials 
 and supplies, and other property not covered under the building 
 item while contained in or on building. 
 
 It is understood and agreed that the amounts stated in the 
 following schedule under the item "building," and/or the item 
 "contents" shall attach in accordance with the form as given under 
 those respective headings, and that the amount of insurance is 
 divided and applies as shown in the following schedule, viz.: 
 
 Item Name and Location Building Contents Total 
 
 L Central, Main and High Sts. . .$60,000 $15,000 $75,000 
 
 2. Boys' High, Palmer and Green 
 
 Sts 65,000 18,000 83,000 
 
 3. Girls' High, Park & Broad Sts.. 90,000 22,000 112,000 
 
 4. Manual Training, 645 Wood St. 25,000 17,000 42,000 
 
 Totals $240,000 $72,000 $312,000 
 
 It is understood that bridges, passageways and platforms that 
 connect buildings are insured with each building to the midway 
 
242 THE AGENTS KEY TO FIRE INSURANCE ' ; 
 
 I 
 point and that foundations of buildings, of boilers, of engines and ■ 
 of fixed machinery, below the lowest ground level are not cov- ' 
 ered under this policy. ■ 
 
 Permission granted to remain closed on holidays, during the! 
 customary vacation periods and whenever considered advisable] 
 by the school authorities. ' 
 
 (Attach usual clauses.) j 
 
 NOTE : — This form may also be used for insuring private ] 
 schools. : 
 
 I 
 COLLEGE OR UNIVERSITY FORM 1 
 
 (Illustration) < 
 
 $ Being a pro rata part of each of the following specific! 
 
 amounts of insurance, on property located on the premises of the . 
 assured, situate i 
 
 Item.. Property Building Contents Total j 
 
 1. North Building $120,000 $30,000 $150,000 i 
 
 2. East Building 45,000 12,000 57,000 • 
 
 3. South Building 67,000 22,000 89,000 \ 
 
 4. Memorial Hall 86,000 78,000 164,000 I 
 
 , j 
 
 Totals $318,000 $142,000 $460,000 i 
 
 It is understood and agreed that the insurance on buildings covers 
 on buildings and structures, their attachments, additions, exten- j 
 sions, appurtenances and improvements, therein or thereon, whether ] 
 adjoining or communicating; also on all permanent fixtures, such as ; 
 permanent stacks and chimneys, cupboards, elevators and all con- 
 nections, appurtenances, attachments, illuminating and signal sys- 
 tems, wiring, lamps, lighting, fixtures, power machinery and mo- 
 tors, pumps, pipes and fittings, plumbing work and fixtures, heat- 
 ing, lighting, ventilating and cleaning apparatus, memorial win- 
 dows, storm doors and windows, screens, fire escapes, awnings, 
 plate, stained and ornamental glass, fresco work and decorations, 
 fixed mirrors and their frames, bookcases and all other furniture 
 set or built in walls, forming a part of the buildings, and on desks, 
 pews, seats, chairs, cases, racks, shelving attached to the walls, 
 floors or ceilings; tanks and connections on or in buildings, orj 
 within 100 feet thereof. T 
 
 It is understood and agreed that the insurance on the contents|i 
 covers on furniture and fixtures, useful and ornamental, rugs, - 
 carpets, pictures, paintings, engravings, and their frames, at not . 
 exceeding cost, mirrors, china, glass and crockery ware, fuel, / 
 scientific instruments, apparatus, appurtenances, tools and appli- 
 ances, art and scientific collections, bric-a-brac, bronzes and statu- 
 ary, photographic outfits, dynamos, motors, electrical and other j 
 machinery and apparatus, printing and book binding equipment, j 
 books, manuscripts and all other articles and apparatus neces- j 
 
 i 
 
CHURCHES, SCHOOLS AND PUELTC BUILDINGS 243 
 
 sary or usual in the conduct and maintenance of a University, in- 
 cluding materials and supplies. 
 
 Items excluded. — Cost of excavations, filling, grading and foun- 
 dations of buildings and foundations and settings of machinery 
 below the level of the ground are not covered by this policy. 
 
 Permission granted to remain closed on holidays and unoccupied 
 during the customary vacation periods and whenever considered 
 advisable by the University authorities; to do such work and use 
 such materials as are customary or incidental to University prop- 
 erties. 
 
 (Attach usual clauses.) 
 
 PUBLIC BUILDING FORM 
 (Illustration) 
 
 $ On the story roof building, includ- 
 ing additions and extensions adjoining and communicating unless 
 specifically insured, screens, awnings, and apparatus and fixtures 
 for heating, lighting, ventilating, or other service of the building; 
 outbuildings, yard fixtures, fences and flag poles pertaining thereto, 
 while occupied for purposes, situate 
 
 $ On furniture and fixtures consisting principally of desks, 
 
 benches, chairs, the articles enumerated in the policy on which 
 liability must be specifically assumed, and other furniture, equip- 
 ment, materials and supplies, while contained in the building de- 
 scribed above. This item shall not cover any property that is 
 enumerated or covered under the building, nor records, books of 
 account or labor performed thereon. 
 
 It is understood that bridges, passage-ways and platforms that 
 connect buildings are insured under the building item to a mid- 
 way point. 
 
 Attach clauses for Other Insurance, Lightning and Dynamo, 
 Kerosene Oil Stoves, Mechanics Permit, Work and Materials, and 
 Unoccupancy during customary periods. Also other clauses de- 
 sirable or required by conditions or local underwriting rules. 
 
 If coinsurance is used exclude foundations, etc. 
 
 NOTE: — When a form is desired for making a schedule of all 
 municipal buildings, use one modeled after the school schedule. 
 
 PUBLIC RECORDS FORM 
 
 $ On abstracts, records of title, maps, and such other title 
 
 records and references, or other records, as constitute the public 
 records of , while contained in, etc. 
 
 In the event of loss, no claim shall be made in excess of the 
 amount of the actual cost of the labor required to reproduce the 
 damaged property, and the blank books and stationery upon which 
 the said records are reproduced. 
 
 (Attach usual or required clauses.) 
 
244 THE AGENTS KEY TO FIRE INSURANCE j 
 
 PUBLIC LIBRARY FORM j 
 
 (May also be used for an extensive private library) j 
 
 $ On library of books, pamphlets, manuscripts, papers, raaga-| 
 
 zines, and other reading matter, bound or unbound, but not to] 
 cover such property if more specifically insured, and 1 
 
 $....0n furniture and fixtures, book-cases, shelving, catalog; 
 and card index cases, stationery, ornaments, pictures, paintings; 
 and engravings and their frames, and all other equipment ( whether j 
 required by the policy to be specifically mentioned or not) per-; 
 taining to a library, and ] 
 
 $ On card indices, at an agreed valuation of cents^ 
 
 per card (or per volume). i 
 
 All while contained, etc. ! 
 
 I 
 (Attach usual or required clauses.) J 
 
 NOTE: — Value of card indices range from five to fifteen centsi 
 per volume according to the magnitude of the index work. \ 
 
 Sometimes card indices are insured with the following pro-j 
 visions: "It is agreed that the amount of loss on card indicesi 
 shall be limited to the actual cost of rewriting and/or reproducing^ 
 
 cards, but in no case to exceed cents per card (or per^ 
 
 volume). . 
 
 If there are some rare books or manuscripts which it is desired 
 to insure at a stated value, a schedule may be prepared similarij 
 in form to a painting schedule, naming each article and its valuei 
 so that it may be identified. ,; 
 
 ; 
 
DIVISION V • 
 
 MERCANTILE BUILDINGS AND THEIR 
 
 CONTENTS 
 
 (Also Mercantile and Office Buildings) 
 
 Insurance on this class of property usually covers sepa- 
 ately, the building, the store or office furniture and fixtures, 
 and the stock. 
 
 Policies covering mercantile property usually contain the 
 following permits and clauses, worded in accordance with 
 local rules : 
 
 Other Insurance, Lightning, Dynamo, Electric or other 
 Lighting that may be required, Kerosene Oil Stove, Me- 
 chanics, Work and Materials; also Powder and Kerosene Oil 
 for sale and Vacancy or Unoccupancy, as permitted, together 
 with such other clauses as may be necessary or desirable, or 
 as may be required by local underwriting rules. If occupied 
 in part for dwelling purposes, permit should be given for 
 benzine or gasoline for household use. (See also Special 
 Agreements.) 
 
 The forms given are intended for use in insuring any kind 
 of mercantile building, office building, store or office furniture 
 and fixtures, or any kind of mercantile stock, whether whole- 
 sale or retail, and of whatever class; some, however, may re- 
 quire additional or special wording or cover to fit specific 
 needs; the permits to be attached may differ somewhat, like- 
 wise the clauses or conditions required by local underwriting 
 rules. 
 
 MERCANTILE BUILDING AND FIXTURE FORM 
 (Illustration) 
 
 $. . . .On the building occupied as including addi- 
 tions, adjoining and communicating, foundations, plumbing, steam, 
 gas and water pipes; lighting and heating apparatus and all per- 
 manent fixtures, including counters and shelving that are a part 
 of the realty; plate and ornamental glass and fresco work; also 
 storm doors and windows, screens, screen doors and awnings, 
 whether in position or stored in said building, situate 
 
 $ On store, workroom and office furniture and fixtures of 
 
 every description, including partitions, mirrors, tools, utensils and 
 apparatus, floor coverings, shades, stationery and advertising mat- 
 ter and signs, not covered under the building item. All while 
 contained in or on or attached to the above described building and 
 additions adjoining and communicating. 
 
 245 
 
246 THE AGENTS KEY TO FIRE INSURANCE 
 
 Privileges. — Permission is given: — For existing communications; 
 for present and other occupancies not more hazardous, and to do 
 such work and use such materials as are usual in such occupancies; 
 for other insurance without notice until required; for mechanics 
 to be employed for ordinary alterations and repairs in the within 
 described premises, but this shall not be held to include the con- 
 structing or reconstructing of the building or buildings, or addi- 
 tions, or the enlargement of the premises; to use kerosene oil 
 stoves; to keep for sale not exceeding 25 barrels of kerosene oil; 
 to be vacant not exceeding or unoccupied not exceeding 
 
 (Add usual clauses.) 
 
 MERCHANDISE AND FIXTURE FORM 
 (Illustration) 
 
 $ On stock in trade consisting principally of including 
 
 full and empty packages, boxes, samples, labels and supplies, the 
 property of the insured; and on the interest of the insured in and/ 
 or liability for similar property held by the insured on storage, 
 or for repairs, or otherwise, belonging in whole or in part to 
 
 others; all while contained in or on the story 
 
 roof building and additions adjoining and communicating, 
 
 or in show windows, show cases, or on sidewalks around the prem- 
 ises while in process of storage, exhibition and/or delivery, situate 
 
 $ On store, workroom and office furniture and fixtures of 
 
 every description, including partitions, mirrors, tools, utensils and 
 apparatus, floor coverings, shades, stationery and advertising mat- 
 ter and signs; and on awnings and water, gas and electric fixtures, 
 providing same are not insured with the building. All while con- 
 tained in or on or attached to the above described buildings and 
 additions adjoining and communicating. 
 
 Privileges. — Permission is given: — For existing communications; 
 for present and other occupancies not more hazardous, and to do 
 such work and use such materials as are usual in such occupancies; 
 for other insurance without notice until required ; for mechanics 
 to be employed for ordinary alterations and repairs in the within 
 described premises, but this shall not be held to include the con- 
 structing or reconstructing of the building or buildings, or addi- 
 tions, or the enlargement of the premises; to use kerosene oil 
 stoves; to keep for sale not exceeding 25 barrels of kerosene oil. 
 
 (Add usual clauses.) 
 
 [NOTE : The foregoing is considered by the author as one 
 of the best forms in use, making a clear, safe contract with 
 a proper **in trust" clause.] 
 
MERCANTILE & OFFICE BUILDINGS & CONTENTS 247 
 
 MERCHANDISE AND FIXTURE FORM 
 
 {More Elaborate) 
 
 $....0n merchandise and stock in all stages, including samples, 
 materials, supplies, boxes, labels, cases, packages and tags, the 
 property of the assured, or sold but not delivered or removed, and 
 on property of others, held on storage or for repairs or otherwise, 
 for which the assured may be liable, also for labor performed on 
 same; and 
 
 $ On store, office, workroom and other furniture and fixtures 
 
 of every description, engines, boilers, setting, machines and ma- 
 chinery, refrigerators, piping, dynamos, motors, connections, shaft- 
 ing, belting, pulleys, counters, shelving, partitions, show cases and 
 figures (inside and outside), pictures, paintings, engravings and 
 their frames, clocks, signs, awnings, mirrors, carpets and other 
 floor covering, shades, stationery and office supplies, fuel, type- 
 writing machines, telephones and connections, gas and electric fix- 
 tures, heating apparatus, electric wiring and moulding covering 
 the same, cameras, lenses, patterns, moulds, models, matrices, 
 drawings, designs, wood cuts, lithographic plates and stones, and 
 engravings thereon, stereotypes, half-tones, dies, solutions, photo- 
 graphic negatives, advertising and other printed matter, books, 
 lettering, and iron safes, trunks, tools, implements, scientific and 
 other instruments, apparatus, utensils, appliances, and appurte- 
 nances (including improvements and betterments to buildings when 
 buildings are not owned by the assured), and all other property 
 not heretofore enumerated or otherwise insured; all the foregoing 
 mentioned being the property of the assured or leased, or the 
 property of others for which the assured may be liable or re- 
 sponsible; all while contained in, on and under and about the 
 buildings and additions and extensions adjoining and communicat- 
 ing, sidewalks and show cases, situate 
 
 It is understood that where the buildings above described are 
 owned by the assured that such of the above described property 
 as may be enumerated under the buiTding policies is not covered 
 by this policy. 
 
 (Add usual clauses.) 
 
 MERCANTILE BUILDING, FIXTURES AND STOCK 
 
 FORM 
 
 (For Use on Either Fire or Tornado Policies) 
 {Uniformity West) 
 *1 $ On the story roof building, in- 
 cluding foundations, plumbing, electric wiring and stationary heat- 
 ing, lighting and ventilating apparatus and fixtures therein; also 
 all permanent fixtures, stationary scales and elevators, belonging 
 to and constituting a part of said building; occupied as a 
 (state kind of business) situated 
 
248 THE AGENTS KEY TO FIRE INSURANCE 
 
 This insurance shall also cover under this item, if the property 
 of owner of building, door and window screens and storm doors 
 and windows, belonging to the above described building, while 
 attached thereto or stored therein. 
 
 *2 $....0n store and office furniture and fixtures, counters, 
 shelving, show cases, scales, desks, safes, typewriters, cash registers ; 
 pictures, paintings and engravings, including their frames, all 
 at not exceeding cost; electrical apparatus, appliances and devices; 
 stoves, signs and awnings (signs and awnings covered under fire 
 policies only) ; and all other tools, implements, utensils, printed 
 books and supplies incidental to the business; all not belonging 
 to and constituting a permanent part of the building and only 
 while contained in, or attached to, the above described building. 
 
 *3 $....0n stock of merchandise consisting chiefly of 
 
 and such other merchandise as is usually kept for sale in 
 
 state kind of business stores; and, provided the 
 
 assured is legally liable therefor, this item shall also cover such 
 merchandise held in trust, or on commission, or sold but not 
 delivered; all only while contained in the above described building. 
 This item shall also cover said merchandise within one hundred 
 (100) feet of the above described building while on sidewalks, 
 streets, alleys, yards, detached platforms and in or on vehicles 
 or railway cars; also on said merchandise while on platforms in 
 contract with above described building; all only while in transit 
 to and from said building. 
 
 *No insurance attaches under any of the above items unless a 
 certain amount is specified and inserted in blank immediately 
 preceding the item. 
 
 (Attach usual clauses.) 
 
 BLANKET FORM 
 
 (Mercantile) 
 
 $ On all property, both real and personal (including property 
 
 specifically enumerated in the policy on which liability is required 
 to be specifically assumed, but excluding accounts, bills, currency, 
 deeds, evidences of debt, money, notes, or securities), belonging to 
 the insured, or in which the insured has an interest to the extent 
 of such interest, or for which the insured may be liable at the 
 time of fire; also for labor performed or materials expended there- 
 on. All while contained on his premises, occupied principally for 
 purposes, situate 
 
 Attach clauses shown under "Special Agreements" numbered 
 1, 2, 3, 4, 5, 6, 7 and 8; also Electric or other Lighting that may 
 be required. Mechanics, and Vacancy and/or Unoccupancy as 
 permitted, together with such other clauses as may be necessary 
 or desirable, or as may be required by local rules. 
 
 (See also Blanket Policies.) 
 
MERCANTILE & OFFICE BUILDINGS & CONTENTS 249 
 
 COUNTRY STORE FORM 
 
 (For Use on Either Fire or Tornado Policies) 
 {Uniformity West) 
 
 *1 $ On the story roof building, in- 
 cluding foundations, plumbing, electric wiring and stationary 
 heating, lighting and ventilating apparatus and fixtures therein; 
 also all permanent fixtures, stationary scales and elevators, be- 
 longing to and constituting a part of said building; occupied by 
 as a (state kind of business) situated 
 
 This insurance shall also cover under this item, if the property 
 of owner of building, door and window screens and storm doors 
 and windows, belonging to the above described building, while 
 attached thereto or stored therein. 
 
 *2$....0n stock of merchandise consisting chiefly of 
 
 and such other merchandise as is usually kept for sale in country 
 stores; and, provided the assured is legally liable therefor, this 
 item shall also cover such merchandise held in trust, or on com- 
 mission, or sold but not delivered; all only while contained in the 
 above described building. 
 
 This item shall also cover said merchandise within one hundred 
 (100) feet of the above described building while on sidewalks, 
 streets, alleys, yards, detached platforms and in or on vehicles 
 or railway cars; also on said merchandise while on platforms in 
 contact with above described building; all only while in transit 
 to and from said building. 
 
 *3 $ On store and office furniture and fixtures, counters, 
 
 shelving, show cases, scales, desks, safes, typewriters, cash registers; 
 pictures, paintings and engravings, including their frames, all 
 at not exceeding cost; electrical apparatus, appliances and devices; 
 stoves, signs and awnings (signs and awnings covered under fire 
 policies only), and all other tools, implements, utensils, printed 
 books and supplies incidental to the business; all not belonging 
 to and constituting a permanent part of the building and only 
 while contained in, or attached to, the above described building. 
 
 *No insurance attaches under any of the above items unless a 
 certain amount is specified and inserted in blank immediately 
 preceding the item. 
 
 (Attach usual clauses.) 
 
 JEWELER'S STOCK FORM 
 
 $ On stock, merchandise, materials and supplies of every 
 
 description, pertaining to their business, their own, or similar 
 property in which they have an interest to the extent of such in- 
 terest, or for which they may be liable in the event of loss or 
 
 damage by fire, while contained in the building, or show 
 
 cases on sidewalks connected therewith, occupied as a , and 
 
 situate 
 
250 THE AGENTS KEY TO FIRE INSURANCE 
 
 In consideration of the reduced rate at which this policy is 
 issued, the insured guarantees to keep in safes, between the hours 
 
 pf 6 P. M. and 8 A. M. of each day, not less than per cent. 
 
 of the entire value of the property insured under this policy, except 
 that during the month of December the guarantee shall extend 
 from 7 P. M. to 8 A. M., and any loss or damage is to be adjusted 
 on this basis. It is specially agreed, however, that privilege is 
 granted for stock to be out of safes until 10 P. M. for not ex- 
 ceeding 12 nights in any one year for the purpose of inventorying. 
 
 (Add usual or required clauses.) 
 
 PAWNBROKER'S FORM 
 
 $....0n the right and interest of the assured in the articles and 
 stock of merchandise, hazardous and extra hazardous (merchan- 
 dise in fireproof safes excepted), held in trust or in pledge by 
 said assured as pawnbrokers, including interest accrued thereon as 
 allowed by law. 
 
 $ On the right and interest of the assured in the articles and 
 
 stock of merchandise, hazardous and extra hazardous, in fireproof 
 safes only, held in trust or in pledge by said assured as pawn- 
 brokers, including interest accrued thereon as allowed by law. 
 
 $ On merchandise, hazardous and extra hazardous, the prop- 
 erty solely of said assured. 
 
 $ On furniture and fixtures of every description used in the 
 
 business of the assured and all attachments thereto, tools, imple- 
 ments, utensils, appurtenances, fitments, stands, figures, pumps, 
 tanks, store, office and factory furniture and fixtures, awnings, 
 safes, partitions, shelving, counters, carpets, typewriters, and at- 
 tachments, trunks, benches, printed books and stationery, office and 
 factory supplies and signs, all while contained in or attached to 
 the building occupied as situate 
 
 This insurance does not protect the interest of parties whose 
 goods are pledged to the assured ; nor does it cover the excess of 
 the amount loaned, with its lawful accrued interest, upon any 
 article above the sound value of the same at the time of any fire. 
 
 Other insurance permitted without notice until required. 
 
 PHOTOGRAPHER'S FORM 
 
 $ On studio, workroom and office furnishings and fixtures of 
 
 all kinds (except lenses, cameras and appurtenances), including 
 partitions, scenery and screens; pictures (not stock) and mirrors, 
 and their frames; tools, utensils, apparatus and appurtenances; 
 frames used and intended for exhibition purposes, floor coverings, 
 shades, awnings, stationery, catalogs, advertising matter and signs; 
 also show cases on outside of building or on sidewalk immediately 
 adjacent to building; and 
 
MERCANTILE & OFFICE BUILDINGS & CONTENTS 251 
 
 $....0n lenses and cameras, and their appurtenances; and 
 
 $ On stock, including plates, films, sensitized paper, mounts, 
 
 and pictures finished or in process; also negatives (value not to 
 
 exceed cents each) ; 
 
 All while contained in, on or attached to the building situate 
 
 This policy shall be held to cover, under the respective items, 
 property belonging to the insured; also the interest of the insured 
 in and/or liability for property of like description held by the 
 insured, whether on storage, or for repairs, or otherwise, and be- 
 longing in whole or in part to others. 
 
 (Attach usual or required clauses.) 
 
 ART DEALER OR ART GALLERY FORM 
 
 $ On store, workroom, office and art gallery furnishings 
 
 and fixtures of every description, including partitions, mirrors and 
 their frames, tools, utensils, implements and apparatus, frames 
 used for exhibition purposes, floor coverings, shades, awnings, 
 stationery, catalogs, advertising matter and signs; and 
 
 $....0n stock consisting principally of pictures, paintings, en- 
 gravings, drawings, antiques, , jewels, sculpture, bronzes, curios, 
 bric-a-brac, objects of virtu, clocks, china, porcelain, furniture, rare 
 books and manuscripts, articles of art and/or ornament and other 
 merchandise pertaining to the insured's business as art dealer 
 (or, "pertaining to an art gallery"), but this item shall not cover 
 property that is the subject of more specific insurance; and 
 
 $ On the following described property, it being agreed that 
 
 the amount stated opposite each article shall, for the purpose of 
 this insurance, be considered the value thereof: 
 
 $ On portrait in oils, "The Bishop," by Walter Satterlee. 
 
 $ On picture, "Dancing Fauns," by F. Luis Mora. 
 
 $....On a Chippendale chair for salon. 
 
 (The list may be continued as desired.) 
 
 All while contained in, etc. 
 
 It is understood and agreed that any floating or excess insur- 
 ance shall not be held as contributing insurance with this policy. 
 
 (Attach usual or required clauses.) 
 
 OFFICE BUILDING FORM 
 
 $....0n the building, occupied for purposes, in- 
 cluding additions and extensions adjoining and communicating, 
 plumbing, steam, hot water, gas, water, or other piping; lighting, 
 heating, ventilating, elevating, or other building apparatus, and 
 all other permanent fixtures that are a part of the realty and/or 
 pertain to its service for the purposes intended as above described; 
 plate glass, frescoes, decorations, signs and lettering, flag poles, 
 
252 THE AGENTS KEY TO FIRE INSURANCE 
 
 fences, gratings and similar appurtenances; also storm doors and 
 windows, screens, screen doors and awnings, whether in position 
 or stored in said building. Situate 
 
 This policy shall also cover personal property of the following 
 kinds belonging exclusively to the insured hereunder, as building 
 landlord and not as tenant, and in actual use solely for the fur- 
 nishings or service of said building, viz.: floor coverings of public 
 halls and stairs, window shades, tools, utensils, fuel, materials and 
 supplies and employees' uniforms. 
 
 (Add usual clauses.) 
 
 OFFICE CONTENTS FORM 
 
 $ On the furnishings, fixtures, apparatus and equipment of 
 
 the insured's office, including the articles mentioned in the policy 
 on which liability is required to be specifically assumed. All 
 
 while contained in, on or attached to the building and 
 
 additions and extensions adjoining and communicating, occupied 
 for purposes, situate 
 
 (Add usual clauses.) 
 
 OFFICE CONTENTS FORM 
 
 {More Elaborate) 
 
 $ On office furniture, fixtures and equipment of every de- \ 
 
 scription, including partitions, divisions, counters, shelving, show- 
 cases, cabinets, floor coverings, interior telephones, cash carrying I 
 or registering systems, movable wiring or piping, tools, implements, ( 
 utensils, office machines, stationery, advertising matter, price lists, I 
 postage, supplies, safes, signs, awnings, screens or storm sash and \ 
 doors, merchandise samples and packages for or containing same, j 
 and all other equipment, apparatus and appurtenances pertaining to . 
 the office even though not specifically mentioned; all while con- ' 
 
 tained in, on or attached to the building and additions \ 
 
 adjoining and communicating, occupied for purposes, situ- ; 
 
 ate I 
 
 (Add usual clauses.) | 
 
 TITLE COMPANY FORM FOR INSURING RECORDS ^ 
 
 $ On abstracts, records of title, maps, and such other title j 
 
 records and references as constitute their Title Plant, while con- ,; 
 
 tained in a so-called fireproof record room on the floor of j 
 
 the building, and situate * 
 
 $ On property as above described, while contained in the ^ 
 
 above described building outside of fireproof record room above J 
 referred to. I 
 
 In the event of loss, no claim is to be made in excess of the 
 amount of the actual cost of the labor required to reproduce the i 
 
 I 
 1 
 
MERCANTILE & OFFICE BUILDINGS & CONTENTS 253 ; 
 
 damaged property, and the blank books and stationery upon which ; 
 
 the said records are reproduced. \ 
 
 FORM FOR INSURING THE RECORDS OF A TAX ; 
 
 BOARD. LAND COMMISSION OR OTHER i 
 
 SIMILAR BODY ! 
 
 $ On manuscripts and maps comprising details and sura- i 
 
 marized records of material in and value of the property of the 
 
 , completed and in process of completion, including the i 
 
 value of all work performed upon and in preparation of the J 
 
 same and cost of surveys, all while contained in the brick and i 
 
 stone building, situate I 
 
 In event of loss no claim shall be made for value in excess of 
 
 the actual cost of reproducing the manuscripts or other records ! 
 damaged or destroyed. 
 
 COMMERCIAL AGENCY FORM j 
 
 $....0n binders, files, cases, portfolios, drawers, tables, racks, : 
 or other receptacles, together with their contents, said contents 
 
 consisting of records and reports of the agency, concerning the j 
 
 business standing of merchants and others. ; 
 
 It is understood and agreed that this policy does not cover the ■ 
 
 cost of obtaining the information contained in said records and ' 
 
 reports, tut shall include the cost of reproducing them from like i 
 
 records and reports preserved in other offices of the agency. 1 
 
 All while contained in, etc. j 
 
 (Attach usual or required clauses.) ■ 
 
 TELEPHONE RISKS— (Contents) j 
 
 {S. E. U. A.) \ 
 $....0n telephone contents, consisting chiefly of machines and 
 
 machinery of every description, appliances, apparatus, equipments, i 
 
 appurtenances, spare and duplicate parts, stock, materials and j 
 
 supplies of all kinds, tools, implements and utensils, models, i 
 
 patterns, dies, drawings, scientific apparatus, office and other \ 
 
 furniture and fixtures of every description, pictures, safes, awnings, \ 
 signs, books and stationery of whatever kind or description, vehicles, 
 
 horses and mules (not exceeding $300 on any one animal), their j 
 
 own, or held in trust or on commission, or sold but not removed, ■ 
 
 or on storage or for repairs, or leased or held on joint account i 
 
 or the property of others for which the assured may be liable, ■, 
 
 all only while contained in or on or attached to, and/or on or ' 
 
 under the sidewalks, or in or on or about the premises of the ; 
 
 story building, with roof and extensions or 
 
 additions thereto, while occupied by as situated ; 
 
 No on the side of Street, Block No , ' 
 
 in... i 
 
254 THE AGENTS KEY TO FIRE INSURANCE 
 
 'I'his insurance is eflFected subject to the following conditions, 
 which are hereby made warranties by the assured, and are 
 accepted as parts of this contract: 
 
 It is understood and agreed that in case of any loss or damage 
 by fire, the assured is at liberty to make immediately all necessary 
 repairs, notice of sucb loss to be given to this Company without 
 delay. 
 
 Permission for other insurance; to use the premises as at present 
 and for other purposes not more hazardous; to keep and use all 
 articles and materials in such quantities as are necessary for 
 their business; to make ordinary additions, alterations and repairs, 
 the same to be covered by this insurance; to run at all hours 
 and to cease operations for ninety days without notice; to use 
 electricity, natural gas, coal and kerosene oil for lighting and 
 motive power. 
 
 This policy shall not be invalidated by reason of any mortgage 
 or bond issue. 
 
 Lightning and Dynamo Clause. — This policy shall cover any 
 direct loss or damage caused by lightning (meaning thereby the 
 commonly accepted use of the term "lightning" and in no case 
 to include loss or damage by cyclone, tornado or windstorm), 
 not exceeding the sum insured nor the interest of the assured in 
 the property, and subject in all other respects to the terms and 
 lEonditions of this policy. Provided, however, that if there shall 
 be any other insurance on said property, this company shall be 
 liable only pro rata with such other insurance for any direct 
 loss by lightning, whether such other insurance be against direct 
 loss by lightning or not. 
 
 This policy does not cover any loss or damage to dynamos, 
 switch-boards or other electrical machinery, apparatus or con- 
 nections, caused by electric currents, whether artificial or natural, 
 unless fire ensues, and then for the loss by fire only. 
 
 In consideration of the rate at and/or form under which this 
 policy is written, it is expressly stipulated and made a condition 
 of this contract that this company shall be held liable for no 
 greater proportion of any loss than the amount hereby insured 
 bears to 80 per cent of the actual cash value of the property 
 described herein at the time when such loss shall happen; but 
 if the total insurance upon such property exceeds 80 per cent at 
 the time of such fire, then this company shall only be liable for 
 the proportion which the sum hereby insured bears to such total 
 insurance. If this policy be divided into two or more items, 
 the foregoing conditions shall apply to each item separately. 
 
 Standard Time Clause. — It is understood and agreed that the 
 word "noon" as used herein. In designating the beginning and 
 ending of the term of insurance, refers to Standard Time at the 
 place where the property is located. 
 
DIVISION VI 
 
 HOTELS, CLUBS AND BUSINESS STABLES, 
 AND THEIR CONTENTS 
 
 Insurance on these classes usually covers the building 
 separately from contents, with such further division of the 
 latter as may be desired, or as may be required by local under- 
 writing rules. 
 
 The policies usually contain the following permits and 
 clauses, worded in accordance with local rules: 
 
 Other Insurance, Lightning, Dynamo, Electric or other 
 Lighting that may be required. Kerosene Oil Stoves, Me- 
 chanics, Work and Materials; also Vacancy or Unoccupancy 
 as permitted, together with such other clauses as may be 
 necessary or desirable, or as may be required by local under- 
 writing rules. Permit is often given for benzine or gasoline 
 for cleaning purposes. The business stable should have the 
 automobile permit if any motor driven vehicles are permitted 
 therein. (See also Special Agreements.) 
 
 HOTEL BUILDING FORM 
 (Illustration) 
 
 $ On the building, occupied principally for hotel 
 
 purposes, including additions adjoining and communicat- 
 ing, plumbing, steam, gas, water, or other piping; lighting, heat- 
 ing, ventilating, elevating, refrigerating, or other building ap- 
 paratus, fixtures and machinery, and all other permanent fixtures 
 that are a part of the realty; plate glass, frescoes and decora- 
 tions, signs and lettering, flag poles, fences, gratings and similar 
 appurtenances; also storm doors and windows, screens, screen 
 doors and awnings, whether in position or stored in said building. 
 Situate 
 
 $ On hotel, restaurant and other furniture, fixtures, furnish- 
 ings and equipment of every description, including the articles 
 enumerated in the policy on which liability is required to be 
 specifically assumed, wearing apparel, liveries, canes, umbrellas, 
 bags, trunks and jewelry, and all other personal property per- 
 taining to the operation of a hotel, belonging to the insured or 
 for which the insured is legally liable at the time of fire, but this 
 item shall not include property covered under the building item or 
 under the stock item; all while contained in, on or attached to the 
 above described building. 
 
 255 
 
256 THE AGENTS KEY TO FIRE INSURANCE 
 
 $. . . .On stock of bottled water and soft drinks, cigars and other 
 smokers' materials or equipment, provisions, supplies and stores, 
 while contained in the above described building. 
 
 (Add usual or required clauses.) 
 
 STANDARD SEASON HOTEL OR BOARDING HOUSE 
 
 FORM 
 
 [Nenv York) 
 
 $ On the story building and additions, with 
 
 roof including all permanent fixtures belonging 
 
 thereto while therein or thereon, situate No on the 
 
 side of Street, in , County of , N. Y., while 
 
 occupied as a summer hotel or boarding house with not to exceed 
 
 guest rooms and not to exceed guests or boarders. 
 
 This insurance also to cover awnings, door and window screens, 
 storm doors and windows, belonging to the building, in place or 
 stored in the above building or in the outbuildings on the premises. 
 
 $....On household and personal property of every description 
 such as is usual or incidental to a boarding house or hotel, 
 belonging to the assured (including drawings and manuscripts, 
 at not exceeding cost, but excluding articles specifically insured), 
 all while contained in the above described building. 
 
 $....0n the story building and additions, with 
 
 roof, while occupied for purposes, including all 
 
 permanent fixtures thereto while therein or thereon, situate on 
 the above described premises. 
 
 $....0n vehicles of every description, harness and other vehicle 
 equipment, hay, grain, straw, feed, barn and garden tools, while 
 contained in the above described building, but the insurance 
 under this item does not cover household furniture or merchandise 
 on storage, automobiles, motorcycles or parts thereof, and the 
 storage and use of motor vehicles is prohibited unless special 
 permission therefor is endorsed hereon. 
 
 $....0n live stock, in case of loss no one horse to be valued 
 
 to exseed the sum of $. . . ., no one cow to exceed the sum of $ , 
 
 no one to exceed the sum of $.... while contained in the 
 
 above described building. 
 
 This company shall be liable only for loss or damage to the 
 property described in items having the amount of insurance 
 thereon filled in, and if no amount is named in any one or more 
 of the above items, no liability for loss or damage to property 
 described in such item or items is assumed. 
 
 All buildings hereby insured, or containing the property insured, 
 have none other than chimneys or flues constructed of brick or 
 stone (if built of stone they have flue linings) built from the 
 ground or from a living room and not from an attic, and all 
 smoke pipes enter chimneys or flues unobstructed from view at a 
 point below the attic, except as follows: 
 
HOTELS, CLUBS, STABLES AND CONTENTS 257 
 
 Limitation Warranty 
 
 In consideration of the reduced rate at which this policy is 
 written, it is a condition of this insurance that the insured warrants 
 that the number of guest rooms and guests or boarders as described 
 in this policy will not be exceeded. 
 
 (Attach usual clauses.) 
 
 HOTEL OR BOARDING HOUSE AND CONTENTS 
 
 FORM 
 
 (For Use on Either Fire or Tornado Policies) . 
 {Uniformity West) 
 
 *1 $. . . .On the story roof building, in- 
 cluding foundations, plumbing, electric wiring and stationary 
 heating, lighting and ventilating apparatus and fixtures therein; 
 also all permanent fixtures and elevators belonging to and con- 
 stituting a part of said building; occupied as situated 
 
 This insurance shall also cover under this item, if the property 
 of owner of building, door and window screens and storm doors 
 and windows, belonging to above described building, while attached 
 thereto or stored therein. 
 
 *2 $....0n hotel or boarding house furniture, fixtures and 
 furnishing material, useful and ornamental ; printed books and 
 music; piano stool and cover; piano and other musical instru- 
 ments; mirrors, pictures, paintings, engravings, including their 
 frames, statuary and sculpture, all at not exceeding cost; wearing 
 apparel and jewelry in use; silver and plated ware, crockery, 
 glassware and cutlery; wines, liquors and cigars; bar furniture and 
 fixtures; supplies, provisions and fuel; laundry machinery and 
 apparatus; electrical apparatus, appliances and devices; tools, 
 implements and utensils used in their business; signs and awnings 
 (signs and awnings covered under fire policies only) ; all only 
 while contained in, or attached to, the above described building. 
 
 This insurance doe,s not cover the property of guests or employees. 
 
 *No insurance attaches under any of the above items unless a 
 certain amount is specified and inserted in blank immediately 
 preceding the item. 
 
 (Attach usual clauses.) 
 
 HOTEL FURNITURE AND FIXTURES FORM 
 
 {Oivner or Tenant) 
 $....0n hotel, restaurant, bar room and other furniture, fixtures, 
 furnishings and equipment of every description, useful and orna- 
 mental, including beds, bedding, linen, plate, plated ware, china, 
 crockery, glassware, cutlery, pianofortes and other musical instru- 
 ments, pictures, paintings, engravings, and their frames, statuary, 
 articles of virtu, printed books and music, wearing apparel, canes, 
 umbrellas, jewelry in use, carpets, rugs, linoleum, curtains, dra- 
 
2e58 THE AGENTS KEY TO FIRE INSURANCE 
 
 peries, fixed and movable decorations, natural and artificial plants, 
 shades, awnings, screens, mirrors, chandeliers, gas and electrical 
 fixtures, gas piping, eledtric wiring, fans, cash registers, adding 
 machines, typewriters, sewing machines, iron safes, pool and bil- 
 liard tables and appurtenances, storm doors, lamp posts, signs, 
 electric signs and connections, annunciators and connections, office 
 furniture and fittings, stationery, advertising matter, ranges, kitchen 
 utensils, engines, boilers, pumps, heating, lighting, ventilating and 
 fire extinguishing apparatus, ice making and refrigerating plant 
 and apparatus, kitchen, dynamos, motors, machines, machinery, 
 foundations, connections, settings, shafting, belting, pulleys, hangers, 
 pipes, piping, tanks, and all other fixtures, appurtenances, appa- 
 ratus, appliances, utensils, implements and tools, all belonging to 
 the insured, or for which the insured may be legally liable, and 
 
 $. . . .On stock consisting principally of bottled water, soft drinks 
 and smokers' materials and equipment, provisions, fuel, supplies 
 
 and stores; all while contained in, on or attached to the 
 
 building and additions adjoining and communicating, situate 
 
 (Attach usual or required clauses.) 
 
 CLUB HOUSE AND CONTENTS FORM 
 
 {City or Country) 
 $ On the building, occupied as a including ad- 
 ditions and extensions adjoining and communicating, plumbing, 
 steam, hot water, gas, water, or other piping; lighting, heating, 
 ventilating, elevating, refrigerating, or other building apparatus; 
 squash courts, bowling alleys, shuffle boards, lockers and other 
 similar property built in or permanently attached to the building, 
 also all permanent fixtures that are a part of the realty; plate 
 glass, frescoes and decorations; also storm doors and windows, 
 screens, screen doors and awnings, whether in position or stored 
 in the building, situate 
 
 $ On club house furniture, fixtures and equipment of every 
 
 description, useful and ornamental, including pictures, paintings 
 and engravings and their frames, mirrors, floor and room furnish- 
 ings and fittings, sporting and athletic paraphernalia, prizes and 
 trophies, casts, curiosities, jewels, manuscripts, medals, signs, sculp- 
 ture, office furniture and fixtures, property held on storage or for 
 repairs for which the club is liable, and all other property be- 
 longing to the club, or for which the club may be liable; but this 
 item shall not include property that is insured under the building 
 item, nor under the supplies item. All while contained in or 
 on the above described building. 
 
 $ On club supplies and stores of food and drink, including 
 
 tobacco and smokers' articles in all forms, while contained in the 
 above described building. 
 
 $ On the building, (as defined in the first item), oc- 
 cupied as a situate 
 
HOTELS, CLUBS, STABLES AND CONTENTS 259 
 
 $ On contents (as defined in the second item). 
 
 NOTE: — The form may be continued similarly to cover any 
 other property. 
 
 Permission granted for the use of premises and to do such 
 work and use such materials as are usual to clubs. 
 
 (Add other usual or required clauses.) 
 
 LIVERY AND BUSINESS STABLE FORM 
 
 $ On the building and additions adjoining and com- 
 municating, and all permanent fixtures attached to and forming 
 part of the realty, including signs and awnings, while occupied 
 for purposes and situate 
 
 $ On horses contained therein or in yards immediately adja- 
 cent thereto; (limit on any one horse not to exceed $ ). 
 
 $ On vehicles of all kinds (excluding motor driven vehicles), 
 
 horse and vehicle equipment, medicines, liniments and lubricants, 
 liveries, barn tools and apparatus, and office furniture and fixtures, 
 while contained therein. 
 
 $ On hay, straw, bedding, grain and feed of all kinds, while 
 
 contained therein. 
 
 This policy shall cover property described in the third item while 
 temporarily outside the buildings, but on the premises, while being 
 cleaned, aired or dried. 
 
 (Attach usual or required clauses.) 
 
 LIVERY STABLE AND CONTENTS FORM 
 
 (For Use on Either Fire or Tornado Policies) 
 {Uniformity West) 
 
 *1 $. . . ,0n the story roof building, in- 
 cluding foundations, plumbing, electric wiring and stationary heat- 
 ing, lighting and ventilating apparatus and fixtures therein; also 
 all permanent fixtures, stationary scales and elevators, belonging 
 to and constituting a part of said building; occupied as a livery, 
 sale and feed stable, situated 
 
 *2 $..,.0n vehicles (not including sleighs), buggies, carriages, 
 wagons, and such rolling stock usually contained in livery stables 
 (excluding automobiles and motorcycles), all only while con- 
 tained in the above described building. 
 
 *3 $....0n horses and mules, in case of loss this company will 
 not be liable for more than (or in case of other insurance for 
 more than its pro rata proportion of) $250 on any one horse or 
 any one mule, nor in any case for more than the actual cash value 
 of the animal damaged or destroyed, only while contained in 
 above described building, and provided this form is attached to a 
 fire policy, against loss by lightning while on or off the premises. 
 
260 THE AGENTS KEY TO FIRE INSURANCE 
 
 *4 $ On hay, grain and feed; sleighs, harness, blankets, robes, 
 
 whips, lamps, lanterns, tools, implements and supplies; electrical 
 apparatus, appliances and devices; signs and awnings (signs and 
 awnings covered under fire policies only) ; office furniture, fixtures 
 and supplies; all while contained in, or attached to, the above 
 described building. 
 
 *5 $....0n 
 
 *No insurance attaches under any of the above items unless a 
 certain amount is specified and inserted in blank immediately 
 preceding the item. 
 
 (Attach usual clauses.) 
 
 LODGE OR SOCIETY FURNITURE FORM 
 
 $ On their lodge (society) furniture and fixtures, banners, 
 
 badges, regalia, paraphernalia, screens, partitions, office furniture 
 and supplies, awnings, casts, curiosities, drawings, dies, imple- 
 ments, jewels, manuscripts, medals, pictures and their frames, signs 
 and sculpture, including personal property for which the lodge 
 (society) may be liable in case of loss or damage by fire; together 
 with improvements and betterments to the building when not cov- 
 ered under the building insurance, all while contained in or on or 
 
 attached to the building, occupied for purposes, 
 
 situate 
 
 (Attach lightning and other clauses necessary.) 
 
 LODGE FURNITURE AND FIXTURES FORM 
 
 {Uniformity West) 
 
 *1 $ On lodge furniture, fixtures, furnishings and equipment, 
 
 including desks, safes, typewriters, tables, chairs, cases, cabinets, 
 tools and implements; signs and awnings (signs and awnings 
 covered under fire policies only) ; stereopticon and attachments, 
 including slides used in connection therewith; phonographs, grapho- 
 phones, records, printed books, music and music rolls; pianos and 
 other musical instruments (excluding organ with operating motor) ; 
 mirrors, pictures, paintings, engravings, including their frames, 
 statuary and sculpture, all at not exceeding cost; carpets, rugs, 
 linoleums, mattings, floor coverings, window and door shades, 
 curtains and portieres; lamps, stoves and heating devices; china, 
 glassware, crockery, silver plate and plated ware; costumes, robes, 
 paraphernalia and regalia and all other articles, materials and 
 supplies usual to lodges of secret and fraternal organizations; 
 their own or held by them in trust, or the property of others 
 for which they may be legally liable; all only while contained in, 
 
 or attached to, the story roof building, 
 
 situated 
 
 *2 $....On organ with operating motor, only while contained 
 in the above described building. 
 
HOTELS, CLUBS, STABLES AND CONTENTS 261 
 
 *3 $....0n assured's interest in improvements to the building, 
 
 consisting chiefly of all only while contained in, or attached 
 
 to, the above described building. 
 
 *4 $....0n 
 
 *No insurance attaches under any of the above items unless 
 a certain amount is specified and inserted in blank immediately 
 preceding the item. 
 
 (Attach usual clauses.) 
 
DIVISION VII 
 
 ELEVATORS, WAREHOUSES, COLD STORAGE ] 
 HOUSES AND THEIR CONTENTS ] 
 
 ■I 
 
 Insurance on this class of property usually covers, sepa- ■ 
 rately, the building and stock therein. In some sections a \ 
 separation of the machinery is required also. 
 
 ■ . ! 
 
 Policies covering such property usually contain the follow- • 
 ing permits and clauses, worded in accordance with local j 
 rules : 
 
 Other Insurance, Lightning, Dynamo, Electric or other | 
 Lighting that may be required. Kerosene Oil Stove, Me- , 
 chanies, Work and Materials; also Cease Operations and j 
 Vacancy or Unoccupancy as permitted, together with such j 
 other clauses as may be necessary or desirable, or as may be \ 
 required by local underwriting rules. (See also Special \ 
 Agreements.) ) 
 
 The forms given are intended for use in insuring any risk ': 
 of these respective classes, though some will require addi- J 
 tional or special wording or cover to fit specific needs. i 
 
 Goods in Bond : — There is usually no reason for including i 
 the U. S. Internal Revenue Tax nor the U. S. Customs Tax j 
 in the insurance on goods in bond, for the government does 
 not require payment of such taxes in case of fire unless the 
 goods are removed, in which case the payment of the tax 
 would be a part of the expense of salvage. If the tax has 
 been paid, it is the practice of the government to refund same 
 on proof that the goods have been destroyed by accidental 
 fire. Sometimes the following conditions are included in the 
 policy form when insuring imported goods held in bond: — 
 
 "It is understood and agreed that the Custom House duties 
 payable to the U. S. Government on property covered by this 
 policy shall not be considered as part of the value insured in 
 event of loss or damage. It is also understood and agreed that 
 on demand of this Company, in event of loss, the insured 
 sliall, *to protect the property from further damage,' prompt- 
 
 '2G2 
 
ELEVATORS, WAREHOUSES AND CONTENTS 263 
 
 ly pay all government duties, warehouse and other charges 
 necessary for the purpose of removal of said merchandise to 
 such other locatiou as may be designated by this Company." 
 
 ELEVATOR BUILDING FORM 
 (Illustration) 
 
 On the elevator building and additions, known as Ele- 
 vator, together with all appurtenances thereunto belonging, includ- 
 ing towers, docks, legs, wharves, foundations, tanks, plumbing, 
 heating, lighting, elevating, steam, gas, water and electrical equip- 
 ments, apparatus and appliances, and all other property of every 
 kind and description belonging to said building or buildings, or to 
 the operation of the same, and on all the contents thereof, and on 
 all property of every kind and description in or upon said prop- 
 erty or building, or adjacent thereto, belonging to or used by said 
 Elevating Company in or on its said property or buildings or in 
 the operation of the said elevator, including machinery, machines, 
 shafting, belting, wiring, pulleys, hangers, transmission ropes, 
 stores, supplies, elevator buckets, tools, awnings, signs, imple- 
 ments, apparatus, utensils, office and other furniture and fixtures. 
 
 It is understood and agreed that grain or other stock in trade 
 which may be kept in said elevator, piling and foundations below 
 the mean water level, and property belonging to others on which 
 there may be specific insurance are not covered by this policy. 
 
 All of the above described property situate or located on land 
 
 owned by assured on the 
 
 PERMISSION GRANTED TO 
 
 Have or procure additional insurance. 
 
 Work and run machinery at all times. 
 
 Cease operations for not to exceed 60 days at any one time. 
 
 Do such work and use such materials as are usual in the business 
 iof grain elevator as conducted by the assured. 
 
 Employ mechanics for ordinary alterations and repairs in the 
 within described premises, but this shall not be held to include 
 the constructing or reconstructing of the building or buildings or 
 additions, or the enlargement of the premises and nothing herein 
 shall be held to void any privileges granted in the printed condi- 
 tions of this policy. 
 
 (Add other necessary or required clauses.) 
 
 ELEVATOR BUILDING AND GRAIN FORM 
 
 (Uniformity West) 
 (For Use on Either Fire or Tornado Policies) 
 
 On the following described property, all situated 
 
 *1 $....0n the roof elevator building, including 
 
 foundations, plumbing, electric wiring and stationary heating. 
 
264 THE AGENTS KEY TO FIRE INSURANCE 
 
 lighting and ventilating apparatus therein, and all permanent 
 fixtures belonging to and constituting a part of said building; 
 also fixed and movable machinery, electrical or otherwise, shafting, 
 pulleys, belting, spouts, scales, elevators, tools, office furniture, 
 fixtures and supplies; all only while contained in the above 
 described building, known as the Elevator. 
 
 *2$....On the story roof engine and 
 
 boiler house building, including foundations, plumbing, electric 
 wiring and all permanent fixtures belonging to and constituting 
 a part of said building. 
 
 *3 $....0n engines, boilers, fixed and movable machinery, elec- 
 trical or otherwise, pumps and connections belonging thereto, all 
 only while contained in above described 
 
 *4 $....On grain and seeds, including bags; and provided the 
 assured is legally liable therefor, this item shall also cover said 
 merchandise while held in trust, or on commission, or sold but 
 not delivered; only while contained in the above described elevator 
 building or in cars within 100 feet thereof. 
 
 *5 $....0n 
 
 *No insurance attaches under any of the above items unless a 
 certain amount is specified and inserted in blank immediately 
 preceding the item. 
 
 No smoking shall be permitted (except in office) and no open 
 lights (except cold blast tubular watchman's lanterns) shall be 
 used in the above described elevator building. 
 
 (Attach usual clauses.) 
 
 ELEVATOR BUILDING AND GRAIN FORM 
 
 (For Other Than Terminal Elevators) 
 
 (For Use on Either Fire or Tornado Policies) 
 
 {Uniformity West) 
 
 On the following described property, all situated 
 
 *1 $ On the power roof elevator build- 
 ing, including foundations, plumbing, electric wiring and stationary 
 heating, lighting and ventilating apparatus therein, and all per- 
 manent fixtures belonging to and constituting a part of said 
 building; also engines, boilers, fixed and movable machinery, 
 electrical or otherwise, pumps and connections belonging thereto; 
 shafting, pulleys, belting, spouts, scales, elevators, tools, office 
 furniture, fixtures and supplies; all only while contained in the 
 
 above described building, known as the Elevator. 
 
 *2 $ On the story roof engine and 
 
 boiler house building, including foundations, plumbing, electric 
 wiring and all permanent fixtures belonging to and constituting 
 a part of said building. 
 *3 $ On engines, boilers, fixed and movable machinery, elec- 
 
ELEVATORS, WAREHOUSES AND CONTENTS 2G5 
 
 trical or otherwise, pumps and connections belonging thereto, all 
 only while contained in above described engine and boiler house 
 building. 
 
 *4 $ On grain, seeds, beans, peas, flour, feed, meal, stock 
 
 food, salt, lime, cement, coal, wool, including bags and sacks, 
 and such other merchandise as is usually kept in grain elevators 
 (except hay and straw unless specifically mentioned) ; and, pro- 
 vided the assured is legally liable therefor, this item shall also 
 cover said merchandise while held in trust, or on commission, or 
 sold but not delivered; only while contained in the above described 
 elevator building or in cars within 100 feet thereof. 
 
 *5 $....0n 
 
 *No insurance attaches under any of the above items unless a 
 certain amount is specified and inserted in blank immediately 
 preceding the item. 
 
 (Attach usual clauses.) 
 
 GRAIN IN ELEVATOR, OWNERS (OR LESSEES) 
 FORM • 
 
 On grain of every kind and description, including freight, back 
 charges, charges, advances, liens and claims thereon, not to ex- 
 ceed in gross the actual market value in their own or in 
 
 their custody as care parties, forwarders, carriers, in trust, on 
 commission, on consignment, on account, joint account, or other- 
 wise, or sold but not delivered, and delivered but not paid for, 
 or which the assured or any of them, shall elect to cover hereunder, 
 
 unless otherwise specifically insured, contained in the 
 
 situate 
 
 Notice from the assured within 60 days from date of loss to be 
 binding on insured and insurer as to what grain is covered here- 
 under. 
 
 Nothing herein shall be held to make the insurer hereunder 
 liable for contingent or consequential loss or liability of any kind. 
 
 Privilege to make alterations and repairs, to effect other insur- 
 ance, to operate day and night, or to be closed indefinitely without 
 prejudice to this policy. 
 
 100% Average Clause 5% Waiver. 
 
 Lightning Clause. 
 
 Electrical Permit. 
 
 (Add other necessary or required clauses.) 
 
 CHARGES ON GRAIN FORM 
 
 {Special) 
 On "Charges" on grain and seeds of all kinds, their own or 
 held in trust or on commission, or sold but not delivered, if in 
 case of loss the assured is legally liable therefor: while contained 
 in 
 
26Q THE AGENTS KEY TO FIRE INSURANCE ■ 
 
 i 
 
 The term ''Charges" as used herein is intended to and does ' 
 
 hereby cover and include the following, viz.: ! 
 
 1. Receiving, handling, storage and delivery charges, consisting 
 
 oi V/i cents per bushel, for each and every bushel of grain and \ 
 seeds, contained in said buildings and an additional one-thirtieth ! 
 of one per cent per bushel for each day or fractional part thereof, \ 
 following the fifteen days next after the receipt of the grain , 
 until the date of the fire. | 
 
 2. Carrying charges as owners, vendors, and, or, warehouse- \ 
 men on said grain and seeds, to be ascertained by deducting the j 
 cash market price thereof on the day of and at place of fire \ 
 from the price of an equal amount of grain and seeds for such \ 
 future delivery at any market which the assured may select from • 
 the closing market quotations therefor on the day of fire, also 
 all other established profits (if any) on existing contracts or i 
 sales including commissions and advance freight charges. ! 
 
 3a. Excess of price (if any) which the assured shall pay, over 
 
 and above the said market price for future delivery selected for j 
 
 settlement of carrying charges above named, in purchasing on : 
 
 the first market day after the fire an equal amount of like grades j 
 
 of grain and seeds for the same future delivery. : 
 
 3b. Excess of price (if any) which the assured shall pay over j 
 
 and above the cash value on day of fire in purchasing an amount, j 
 of like grades and quality, equal to that damaged or destroyed, 
 
 and under either "3a" and "3b" or both, such additional sums | 
 
 (if any) as the assured may be required to pay or assume in i 
 
 liquidation of damages or penalties incurred through the inability | 
 
 of assured to obtain like quantities and or grades and or qualities | 
 
 with which to fill any contracts for future delivery of grain or ; 
 
 seeds, existing at date of fire. j 
 
 4. The increased values (if any) of grain and seeds which \ 
 the assured could have produced by cleaning, handling and 
 improving the qualities or grades of said grain and seeds over 
 and above their condition at the time of fire, as evidenced by 
 what has already been done by the assured per assured's books 
 and records, less the cost and expense of improving said grades. 
 
 5. Loss of fire insurance premiums on policies surrendered on 
 account of fire, and covering on "Charges" and on said grain and 
 seeds and on said buildings at the time of fire, which loss shall 
 be the total pro rata premiums on all said policies, computed on 
 each policy from the day of fire to the expiration of such policy. 
 
 6. Interest at the rate of six per cent per annum on the amount 
 of loss by fire, for the period of time from the date of fire to 
 the expiration of sixty days from date of accepted proofs of loss 
 on the said grain and seeds, buildings and charges. 
 
 In case of loss the price of grain and seeds for future delivery 
 
ELEVATORS, WAREHOUSES AND CONTENTS 2G7 
 
 shall be determined by the officially published market quotations 
 of any market selected, provided: that if fire occur on any market 
 holiday or Sunday, the closing market price of last preceding 
 market day shall govern. 
 Other insurance permitted. 
 
 GRAIN FORM 
 (Terminal Elevators) 
 
 (For Use on Either Fire or Tornado Policies) 
 
 {Uniformity West) 
 
 $....0n grain and seeds, including bags; and, provided the 
 assured is liable therefor, this item shall also cover said mer- 
 chandise while held in trust, or on commission, or sold but not 
 removed, only while contained in the power elevator build- 
 ing, or in cars within one hundred feet thereof, known as 
 the Elevator, situated 
 
 Loss Payable Clause 
 
 Loss, if any, to be adjusted with original assured named herein, 
 and payable to assured or order hereon with the return of this 
 contract. In event of sale and delivery of any property insured 
 hereunder, this contract will remain in full force and effect for 
 the sole use and benefit of the purchaser of any property covered 
 by this contract until 12 o'clock noon of the next business day 
 succeeding the delivery of the property (only payment in full by 
 check or otherwise, and delivery of warehouse receipts shall 
 constitute a delivery as above described), but from and after 
 that time this contract shall be void as to any person claiming 
 thereunder, except the original assured, for whom it shall continue 
 in force as heretofore, covering other property as herein described. 
 
 (Attach usual clauses.) 
 
 (Elevators— Other Than Terminal) 
 
 (For Use on Either Fire or Tornado Policies) 
 
 {Uniformity West) 
 
 $....On grain, seeds, beans, peas, flour, feed, meal, stock food, 
 
 salt, lime, cement, coal, wool, including bags and sacks, and such 
 
 other merchandise as is usually kept in grain elevators (except 
 
 hay and straw unless specifically mentioned) ; and provided the 
 
 assured is legally liable therefor, this item shall also cover said 
 
 merchandise while held in trust, or on commission, or sold but 
 
 not delivered; all while contained in the power 
 
 roof elevator building, or" in cars within 100 feet thereof, 
 
 known as the Elevator, situated 
 
 (Attach usual clauses.) 
 
268 THE AGENTS KEY TO FIRE INSURANCE \ 
 
 GRAIN IN ELEVATOR \ 
 
 {Open Policy Form) \ 
 
 On any and all grain, seed, flour, malt, and other merchandise 
 
 of every kind and description, including freight, back charges, \ 
 
 charges, advances, lien and claims thereon, not to exceed in gross ; 
 
 the actual market value in their own or in their custody ■ 
 
 as warehousemen, forwarders, carriers, in trust, on commission, ! 
 
 on consignment, on account, joint account, or otherwise, or sold i 
 
 but not delivered and delivered but not paid for, unless other- \ 
 
 wise specifically insured, provided that the insurance hereunder ■ 
 
 has not been terminated, contained in such elevators or in cars on j 
 
 tracks alongside thereof, or adjacent thereto or at such other 1 
 
 places as may be designated in the City of for such j 
 
 amounts and at such premiums as may be named in certificates : 
 
 issued hereunder or entered in open policy books kept therefor. ' 
 
 In event of a certificate being issued, the same shall not be deemed ' 
 to be for additional insurance to the amount entered in open 
 
 policy book. ■ 
 
 All risks shall commence at the hour of their acceptance from \ 
 
 the assured by the agents of this company and shall terminate j 
 
 at the hour of acceptance of notice of cancellation from the as- j 
 
 sured by said agents and shall not be binding or of effect beyond , ', 
 
 such time. j 
 
 Whenever the interest of a common carrier is insured hereunder i 
 this policy shall extend to cover the assured as named herein, as ' 
 owners or as agents, or for the benefit of the owners of said 
 property or for those entitled to the possession thereof. Notice j 
 within 60 days from date of loss, from the assured, to be binding j 
 upon the assured and the assurer as to who, in addition to the ■ 
 assured, was insured hereunder. Provided, however, that if any 
 of the property insured shall have also been insured by the ' 
 owner, agent or other person, loss or damage, if any, shall be paid 
 thereunder only to the extent of the excess of such loss or damage { 
 over the amount of the adjusted liability under the insurance 
 taken out by the owner, agent, or other person last above referred | 
 to, it being the purpose of this insurance to cover the liability in | 
 full of the assured as warehousemen, forwarders, carriers, trustees 
 or agents, not exceeding the amount hereby insured, nor the i 
 
 actual market value of the property insured in , at the time J 
 
 of fire, and nothing herein shall be held to make the assurer here- 1 
 under liable for contingent or consequential loss or liability of any • 
 kind. 
 
 Whenever contingent or conditional insurance shall be accepted '[ 
 under this policy, it is agreed by the assured hereunder that the 
 same shall be construed and be Excess Insurance only, and that 
 such insurance shall not contribute with any insurance regularly 
 created and actually existing, but shall be liable only for its pro 
 rata proportion, not exceeding the amount insured, for the value 
 of such merchandise as may be in excess of the total amount of 
 
ELEVATORS, WAREHOUSES AND CONTENTS 269 
 
 all insurance actually existing and regularly bound, which excess 
 only shall be deemed to be covered under this policy. 
 
 Privilege to make alterations and repairs, effect other insurance 
 without notice until required, to operate day and night, or to be 
 closed indefinitely without prejudice to this policy. 
 
 All entries hereunder covering in steel or fireproof elevators or 
 tanks are subject to the 100% Average Clause attached hereto and 
 all other entries are subject to the 80% Average Clause attached. 
 
 Lightning Clause. 
 
 (Add other usual or required clauses.) 
 
 OPEN POLICY ON MERCHANDISE IN WAREHOUSE 
 
 {Issued to Operator of Warehouse) 
 
 The liability under this policy shall be limited to such amounts 
 and shall be in effect for such periods as may be shown by the 
 separate entries made in the Open Policy Book attached hereto. 
 
 On merchandise of all kinds, including packages, the property 
 of the insured; and on the interest of the insured in and/or liabil- 
 ity for similar property held on storage, or for repairs, or other- 
 wise, and belonging in whole or in part to others, while contained 
 in the building, or while temporarily on platforms, side- 
 walks, trucks and cars alongside, in process of loading or unload- 
 ing, situate 
 
 No risks under this policy shall be binding until accepted by 
 , agents of this Company at 
 
 All risks shall commence from the time of their acceptance by 
 the agents of this Company and shall terminate at the time of 
 cancellation by said agents and shall not be considered binding 
 or in force beyond such time of cancellation. 
 
 It is mutually understood and agreed that this policy does not 
 cover property which is specifically insured. 
 
 Other insurance permitted. 
 
 80% Coinsurance clause attached. 
 
 Lightning clause attached. 
 
 Slectric light clause attached. 
 Consequential Damage Clause if Cold Storage.) 
 I 
 
870 TUE AGENTS KEY TO FIRE INSURANCE 
 
 CERTIFICATE OF INSURANCE 
 
 (For the Insured Under Open Policy) 
 
 ^"^°""' Example Insurance Co. ^"^j^"' '° 
 
 Rate 
 
 T, . NEW YORK •; 
 
 Premium clauses. 
 
 19.... 
 
 ^bfg Certifies That ha. . . 
 
 insurance by this Company against loss or damage by fire 
 
 under Policy No Entry No 
 
 issued through its agency at , 
 
 to the amount of Dollars, 
 
 on 
 
 terminating day of 19 . . , at noon. 
 
 Loss, if any, in conformity with the conditions of said 
 
 Policy, to be adjusted with 
 
 and payable to 
 
 only on presentation of and surrender of this Certificate. 
 
 Not valid until countersigned by the authorized agent 
 at 
 
 President or Manager. 
 
 Countersigiied at this day of 19. . . . 
 
 Agent 
 
 COLD STORAGE BUILDING FORM 
 
 $ On the building, occupied for purposes, in- 
 cluding additions and extensions adjoining and communicating,.] 
 heating, lighting, water or other circulating piping and fixtures,] 
 ventilating, elevating and plumbing apparatus and fixtures, boilers, 
 engines, dynamos, ice and refrigerating machines and machinery j 
 and tools and appurtenances pertaining thereto, and all other ap- 
 paratus and fixtures used for the service of the building for the 
 above described purposes, including office equipment, advertising! 
 matter, signs and awnings therein, thereon or attached thereto,] 
 situate 
 
ELEVATORS, WAREHOUSES AND CONTENTS 271 
 
 Permission granted to cease operations during customary seasons, 
 and to do such work and use such materials as are customary 
 in such plants. 
 
 (Add usual and required clauses.) 
 
 NOTE: — It is customary to require that a consequential dam- 
 age clause be made a part of the contract, the following forms 
 being widely used: 
 
 Consequential Damage Clause. — (To be attached to all poli- 
 cies covering on merchandise, stocks or products, in houses arti- 
 ficially cooled.) This policy does not cover, and this Company 
 shall not be liable for any indirect or consequential loss or damage, 
 including loss or damage caused by change of temperature resulting 
 from, occasioned, or caused by the total or partial destruction by 
 fire or lightning, of the refrigerating or cooling apparatus, con- 
 nections or supply pipes, nor by the interruption of the refrigerating 
 or cooling processes from any cause. 
 
 Consequential Damage Clause. — This Insurance Is against only 
 direct loss or damage by fire, and does not cover any loss or dam- 
 age caused by change of temperature resulting from the total or 
 partial destruction or disablement by fire or lightning of the cool- 
 ing or other apparatus, connections or supply pipes, nor by the 
 interruption of the cooling or other processes from any cause. 
 
 Consequential Damage Clause. — (Liability assumed.) This in- 
 surance being otherwise against only direct loss or damage by 
 
 fire, in consideration of $ additional premium, this Company 
 
 also assumes liability (not exceeding the amount of this policy re- 
 maining after the liability of this Company for any direct loss or 
 damage has been determined) for any loss or damage to the 
 property described while contained in the above-named building, 
 caused by change of temperature, resulting from the total or partial 
 destruction or disablement of the cooling apparatus, connections or 
 supply pipes, by fire occurring in the above-described building, or 
 in any other of the following buildings: 
 
 (Here name the location of the refrigerating plant and any other 
 building through which the supply pipes pass, and which, if burn- 
 ing, might disable them.) 
 
 COLD STORAGE MERCHANDISE FORM 
 {Operator's Insurance^ 
 
 $.. ..On merchandise in bulk or in packages and packages con- 
 taining same, also on stock of Ice and on stock of packages of 
 all kinds including cooperage stock, the property of the insured 
 or held in trust or on commission, or sold but not delivered or re- 
 moved, or on storage for others for which the insured may be 
 legally liable, together with all accrued charges, advances, liens 
 and claims thereon but this policy shall not cover contents of fire- 
 
St2 THE AGENTS KEY TO FIRE INSURANCE ' 
 
 proof safe, nor property upon which the insured has disclaimed ! 
 liability to parties for whom it is held, nor for which the insured 
 is not liable in case of loss, nor property belonging in whole or in i 
 part to others and separately or specifically insured; all while 
 
 contained in the building occupied principally for cold \ 
 
 storage purposes, situate 
 
 In the event of there being specific insurance on any of the 
 property as above described, this insurance shall apply only for i 
 such an amount as the actual value of the said specifically insured ' 
 property, including in addition, liens, advances, freight, storage ! 
 and/or other accrued charges thereon, exceeds the amount of said j 
 specific insurance as adjusted and then shall apply only after the i 
 said specific insurance is exhausted. 
 
 It is understood that this insurance shall not be invalidated by i 
 any pledge of the property as collateral or by any encumbrance 
 thereon. , 
 
 (Attach consequential damage clause and other usual or re- i 
 quired clauses.) j 
 
 COLD STORAGE MERCHANDISE FORM I 
 
 {Insurance in Name of Operators) 
 
 $....0n merchandise and packages therefor, belonging to the '. 
 insured, or for which the insured may be liable and on which the . 
 insured has issued certificates of insurance; also all accrued ' 
 charges, advances, liens and claims on such merchandise, and on j 
 any other interest of the insured in merchandise to the extent of i 
 
 such interest, all while contained in the building and addi- ! 
 
 tions adjoining and communicating, occupied principally for cold j 
 storage purposes, situate 
 
 It is understood and agreed that this policy attaches only to 
 goods not more specifically insured. 
 
 In case of loss, adjustment to be made directly between the 
 parties for whom the goods are held and the insurers. 
 
 Loss, if any, payable to or order hereon; and this policy 
 
 shall not be void on account of any pledge of the property as 
 collateral. 
 
 This insurance being otherwise against only direct loss or dani- : 
 
 age by fire, in consideration of $ additional premium, this. 
 
 Company also assumes liability (not exceeding the amount of this i 
 policy remaining after the liability of this Company for any direct 
 loss or damage has been determined) for any loss or damage to i 
 the property described while contained in the above named build- 
 ing, caused by change of temperature, resulting from the total or 
 partial destruction or disablement of the cooling apparatus, connec- 
 tions or supply pipes, by fire occurring in the above described 
 buildings, or in any other of the following buildings 
 
 (Attach other usual or required clauses.) 
 
ELEVATORS, WAREHOUSES AND CONTENTS 273 
 
 CONSEQUENTIAL LOSS AND DAMAGE FORM NO. 1 
 
 (Single Source Equipment) 
 {Uniformity West) 
 
 $.... Against consequential loss or damage to stock of mer- 
 chandise consisting principally of only while contained in 
 
 the story roof building occupied as a 
 
 situated 
 
 The following provisions are also made a part of this insurance: 
 
 1 — That this company shall be liable only for such loss or 
 damage to the property insured, not exceeding the sum insured 
 under this policy, nor the interest of the assured in the property, 
 as may be caused by change of temperature resulting from the 
 total or partial destruction by fire, or by lightning (as provided 
 in the Consequential Loss and Damage Lightning Clause incor- 
 porated herein), of refrigerating or cooling apparatus, connections 
 or supply pipes, or by the interruption by fire, or by lightning 
 (as provided in the Consequential Loss and Damage Lightning 
 Clause incorporated herein), of refrigerating or cooling processes, 
 in the above described building, or any of the following buildings: 
 
 (here give the location of the refrigerating plant, or any 
 
 other buildings through which the supply pipes, connections, or 
 other apparatus pass, and which if destroyed or damaged by fire 
 or lightning might disable them) 
 
 2 — That the liability assumed by this company hereunder shall 
 be only such proportion of the actual loss and damage hereunder 
 as the amount insured under this policy bears to the total value of 
 the property insured hereunder. 
 
 Consequential Loss and Damage Lightning and Electrical 
 Exemption Clauses 
 Consequential Loss and Damage Lightning Clause. — Except as 
 provided in the Consequential Loss and Damage Electrical Exemp- 
 tion Clause incorporated herein, this policy shall cover such conse- 
 quential loss or damage (as defined in this policy) to the property 
 insured hereunder, not exceeding the sum insured under this policy, 
 nor the interest of the assured in the property, as may be caused 
 by lightning (meaning thereby the commonly accepted use of the 
 term lightning, and in no case to mean cyclone, tornado or wind- 
 storm), and subject in all other respects to the terms and condi- 
 tions of this policy. Provided, however, if there shall be any 
 other consequential loss or damage insurance on said property, this 
 company shall be liable only pro rata with such other insurance 
 for any consequential loss or damage by lightning, whether such 
 other insurance be against consequential loss or damage by light- 
 
 I^Bing or not. 
 
 v^m Consequential Loss and Damage Electrical Exemption Clause. 
 
 I^B>-It is a special condition of this insurance that this company shall 
 
274: THE AGENTS KEY TO FIRE INSURANCE 
 
 this policy) to the property insured hereunder caused by change 
 of temperature resulting from damage to dynamos, exciters, lamps, 
 switches, motors and other electrical appliances or devices, caused 
 by electrical currents whether artificial or natural (including 
 lightning). 
 
 CONSEQUENTIAL LOSS AND DAMAGE FORM NO. 2 
 
 (Two Source Equipment) 
 {Uniformity West) 
 
 This form is the same as the foregoing, with the addition of the 
 following provision: 
 
 That, in consideration of the reduced rate of premium charged, 
 there shall be maintained at least two separate and complete plants 
 for furnishing refrigeration, both being under the control of the 
 owners or lessees of the building containing the property insured, 
 to be kept in readiness at all times for instant use, and each of 
 sufficient capacity to answer all demands should one refrigerating 
 plant be damaged or destroyed. 
 
 COLD STORAGE MERCHANDISE FORM 
 
 (Outside Parties) 
 
 $ On merchandise and packages therefor, belonging to the 
 
 insured, or in which the insured has an interest to the extent 
 thereof, or for which the insured may be liable, while contained, 
 etc. 
 
 (Attach usual or required clauses.) 
 
 FUR STORAGE FORM 
 
 $ On furs, fur garments and other property held on storage 
 
 or for repair and on the value of labor performed or materials 
 expended thereon, together with all accrued charges, advances, 
 
 liens and claims on such property, while contained in the 
 
 building, occupied principally for purposes and situate 
 
 In case of loss upon property held by the insured on storage or 
 for repairs, on which a limitation as to liability of the insured 
 to the owner or owners for loss by fire shall have been fixed or 
 agreed upon, by the issue of receipt or otherwise, it is agreed that 
 the "actual cash value" of such property shall in no case exceed 
 the amount of such limit of liability so fixed or agreed upon; and 
 the optional right of this Company to take the whole or any part 
 of such property, provided for in lines 4 and 5 of said printed 
 conditions (as thus interpreted), shall be secured to this Com- 
 pany by the insured, on demand, or claim for loss thereon wholly 
 waived. 
 
 (Attach usual or required clauses.) 
 
ELEVATORS, WAREHOUSES AND CONTENTS 275 
 
 FUR STORAGE FORM 
 
 $....On furs, fur garments and other property held in storage 
 to the extent of the agreed liability of said insured therefor, 
 which agreed liability is hereby taken and accepted, on proof 
 thereof, as the amount for which this Company shall be liable in 
 case of loss or damage; and on the value of labor, repairs and 
 alterations performed thereon. 
 
 Amounts stipulated in receipts issued by the insured for property 
 held on storage or otherwise as the agreed liability of said insured 
 shall be taken and accepted by this Company as the actual value 
 of said property, but this condition shall not apply to any goods 
 or articles for which such receipts have not been issued; provided, 
 however, that goods and articles received on memorandum, await- 
 ing valuation and other particulars prior to receipts being issued, 
 shall be held covered against loss or damage for five days subject 
 to the usual conditions of the policy where no value is named. 
 The said agreed liability shall also be taken and accepted as the 
 "ascertained or appraised value" of said property referred to in 
 the printed conditions of this policy. 
 
 In accordance with the conditions of this policy this Company, 
 upon paying the amount of such stipulated liability on any article 
 or articles upon which damage is claimed, shall be entitled to the 
 remains or salvage of such article or articles. Failure on the 
 part of the insured to surrender to the Company the remains or 
 salvage of any such article or articles shall waive or forfeit all 
 claim under this policy for loss or damage on such article or 
 articles. 
 
 (Attach usual or required clauses.) 
 
 GENERAL STORAGE WAREHOUSE BUILDING 
 FORM 
 
 On the brick and frame buildings connecting and communicat- 
 ing, including all additions, attachments, extensions, connections, 
 improvements, platforms and permanent equipment, heating and 
 lighting apparatus, electrical equipment, sprinkler equipment, fire 
 appliances, piping, plumbing, signs, screens, and awnings (in and 
 on buildings), elevators, motors, and all machinery, furniture and 
 fixtures, fittings, tools, implements, utensils, and supplies, belonging 
 to said building and comprising its operating equipment, occu- 
 pied as a general storage warehouse and for purposes not more 
 hazardous, situate 
 
 (Attach usual or required clauses.) 
 
 (GENERAL STORAGE WAREHOUSE CONTENTS 
 FORM 
 ' {Operator's Insurance) 
 (....On personal property consisting principally of and 
 
276 THE AGENTS KEY TO FIRE INSURANCE ' 
 
 i 
 on packages containing the same, the property of the insured, or i 
 in which the insured has an interest to the extent thereof, or for I 
 which the insured is legally liable, together with all accrued ' 
 charges, advances, liens and claims on such property; all while] 
 
 contained in or on the building and additions and extensions ! 
 
 adjoining and communicating, and on platforms or ground adjacent I 
 thereto while in process of loading or unloading, occupied for 
 general storage purposes and situate 
 
 This policy shall not cover on property which is the subject of i 
 more specific insurance. 
 
 (Attach usual or required clauses.) \ 
 
 PROPERTY IN WAREHOUSE FORM | 
 
 (Owner of Property) \ 
 
 ....On personal property consisting principally of ■ 
 
 and packages for or containing same, while contained in the \ 
 
 building, occupied principally for general storage purposes and \ 
 
 situate ; 
 
 This insurance shall not be invalidated by any act or neglect '. 
 of any occupant of the within described premises, providing such i 
 act or neglect is not within the control or knowledge of this ' 
 insured and any warranty hereto attached shall be binding upon '■ 
 this insured only in so far as within his control or knowledge. 
 (Attach usual or required clauses.) ', 
 
 ACCRUED CHARGES (WAREHOUSE) FORM ; 
 
 $ On accrued charges of every description outstanding against ; 
 
 goods, merchandise or other property, contained in building situate ; 
 
 This insurance protects the assured against loss of charges ac- 
 crued at the time of the happening of any fire, and due from : 
 parties having goods, merchandise or other property stored in the \ 
 above described building, which property shall have been de- : 
 stroyed or damaged by fire. 
 
 The special condition of this insurance is, that in case of such ; 
 fire causing loss or damage to said property, this company shall ] 
 pay to the assured its loss upon said charges upon the assured 
 making an assignment in writing to the companies carrying this 
 insurance, of their claim or claims against the parties storing 
 said property. 
 
 For the purpose of securing the collection of these charges in case 
 of fire, the assured hereby covenants and agrees to place a lien 
 upon the companies insuring properties on which said charges are i 
 due, where such companies are known to the assured. r 
 
 It is understood and agreed that this company shall not be f 
 liable for loss on that portion of said accrued charges which arc l 
 due for a longer period than two years. " 
 
 (Attach usual or required clauses.) 
 
DIVISION VIII i 
 
 j 
 
 MANUFACTURING BUILDINGS AND THEIR j 
 CONTENTS j 
 
 Insurance on this class of property usually covers, sepa-i 
 rately ; the building, the machinery, and the stock, although ; 
 they may all be written in one item, blanket, with coinsurance j 
 in most States. ' 
 
 Policies covering manufacturing property usually contain' 
 the following permits and clauses, worded in accordance with < 
 local underwriting rules : i 
 
 Other Insurance, Lightning, Dynamo, Electric or other 
 Lighting that may be required. Kerosene Oil Stove, Me-j 
 chanics. Work and Materials; also Cease Operations and 
 Vacancy or Unoccupancy as permitted, together with such] 
 other clauses as may be necessary or desirable, or as may| 
 be required by local underwriting rules. j 
 
 Care should be exercised that permit be granted for gaso-j 
 line or benzine, if used, or for automobiles, if any, for these; 
 things are common in many such risks. (See also Special' 
 Agreements.) ! 
 
 The forms given are intended for use in insuring any kind; 
 of manufacturing risk, though some will require additional 
 or special wording or cover to fit specific needs. In manyj 
 States the wording of the forms is prescribed and no other j 
 may be used. ] 
 
 MANUFACTURING BUILDING FORM i 
 
 {For Any Occupancy) i 
 
 $....0n building and/or additions, principally of con-j 
 
 struction and all permanent fixtures attached thereto and/or con-' 
 tained therein, including lighting, heating, plumbing and/or venti-; 
 lating apparatus (stationary vaults and/or safes), machinery used; 
 to operate elevators, for heating and/or other purposes not con- 
 nected with manufacturing, millwright work, partitions, divisions,! 
 elevators, dumb-waiters, stairways, platforms, telephone systems, 
 annunciators, speaking tubes, decorations, signs, awnings, screens,' 
 and/or storm doors, and all other building equipment, apparatus,'! 
 and/or appurtenances, even though not specifically mentioned, 
 whether in place, contained in, attached to the outside, and/or onj 
 
 roof of building and/or additions, occupied principally for ■ 
 
 purposes, situate ! 
 
 (Add usual clauses.) ■ 
 
 277 \ 
 
278 THE AGENTS KEY TO FIRE INSURANCE 
 
 MANUFACTURING BUILDING FORM 
 
 (For any Occupancy) 
 
 $ On the buildings, additions and extensions adjoin- 
 ing and communicating, situate 
 
 This policy also covers engines, boilers, dynamos, motors, tanks, 
 pumps, setting, connections, sprinkler system, main line of shaft- 
 ing, pulleys, hangers, heating, lighting, ventilating and electric 
 apparatus, and such equipment, apparatus, fixtures and connections 
 as pertain to the service of the building or the furnishing of power 
 therein, ranges, steam, gas and water pipes, elevators, hoists and 
 all appurtenances and connections thereto, decorations, frescoes, 
 stairs, stained, plate and other glass, lettering, signs, awnings, 
 storm doors, windows and screens, burglar alarm, mirrors, stoops, 
 flag poles, sidewalks, flagging, railings, grating, privies, fences, 
 yard fixtures, vaults under sidewalk, and all permanent fixtures 
 therein and thereto said buildings, additions and extensions, 
 occupied principally for 
 
 MACHINERY AND STOCK FORM 
 
 {For Use When Insuring Tenant) 
 
 $....0n machines and machinery of every description, fixed and 
 movable, including engines, boilers, d3'namos, motors, parts, at- 
 tachments and appurtenances of same, hangers, shafting, pulleys, 
 belting, mill work, tools, implements, utensils, supplies and equip- 
 ment generally, and on office furniture, fixtures, and equipment 
 of every description, including desks, chairs, counters, parti- 
 tions, divisions, typewriting, duplicating and adding machines, 
 safes, stationery, advertising matter, catalogues, signs, awnings, 
 screens and/or storm doors, and all other plant equipment, ap- 
 paratus and/or appurtenances even though not specifically men- 
 tioned, and 
 
 $....0n stock of every description, consisting principally of 
 
 manufactured, unmanufactured and/or in 
 
 process of manufacture, including all articles, materials and/or 
 supplies used, carried and/or kept by the assured, even though not 
 specifically mentioned, and packages for and/or containing same, 
 all while contained in, attached to the outside and/or on roof 
 
 of the building and additions adjoining and communicating, 
 
 occupied for purposes, situate 
 
 (Add usual clauses.) 
 
 MACHINERY AND STOCK FORM 
 
 $ On engines, boilers, dynamos, motors, machines, machinery, 
 
 forges, flasks, cranes, tramways, connections, millwright work, set- 
 tings, steam, gas and water pipes, gas and electric fixtures, heating 
 apparatus, shafting, belting, pulleys, patterns, hangers, pumps, 
 
MANUFACTURING BUILDINGS AND CONTENTS 279 
 
 tanks, vats, retorts, conveyors, scales, moulds, trucks, presses, type, 
 cameras, lenses, plates, halftones, electrotypes, stereotypes, wood 
 cuts and process cuts, dies, lasts, machinery supplies, fuel, machinery 
 repairs and labor thereon, meters, solutions, models, factory, office 
 and other furniture and fixtures of every description, shelving, 
 carpets, matting, shades, partitions, show cases and show figures 
 (inside and outside), lettering, pictures, clocks, awnings, signs, 
 iron safes, stationery, typewriting machines, telephones and con- 
 nections, blowers, advertising matter, designs, drawings, trunks, 
 tools, implements, scientific and other instruments, apparatus, uten- 
 sils, appliances and appurtenances and all other property not 
 heretofore mentioned or otherwise insured (including also im- 
 provements and betterments to buildings where buildings are not 
 owned by assured) ; and 
 
 $ On stock, samples, materials and supplies, manufactured, 
 
 unmanufactured and in process of manufacture, including cases, 
 boxes, labels and packages, and on other merchandise, in all 
 stages. Under the respective items this policy shall cover property 
 of the assured, or in which the assured may have an interest not 
 stated herein to the extent of such interest, or for which the 
 assured may be liable; and on the property of others held on stor- 
 age or for repairs, for which the assured may be liable; also for 
 labor performed on same; all contained in, on, under and about 
 the buildings, additions, extensions adjoining and communicating, 
 and sidewalks, situate and occupied principally for 
 
 It is understood and agreed that particular machines and/or mo- 
 tors and/or the property of others, or any other articles or property 
 above enumerated on which there is specific insurance are not 
 covered by this policy. 
 
 It is understood and agreed that bituminous coal in the open is 
 not covered under this polic}'. 
 
 It is understood that where the buildings above described are 
 owned by the assured that such of the above described property 
 as may be enumerated under the building policies is not covered 
 by this policy. 
 
 It is understood and agreed that not more than 15% of the 
 amount of the first item shall cover on patterns and dies. 
 
 GENERAL MANUFACTURING FORM 
 
 $ On the chiefly brick and/or frame building, additions, ex- 
 tensions adjoining and communicating, including boilers, engines, 
 and heating, hoisting, plumbing, lighting and power fixtures and 
 appurtenances, shafting, belting, pulleys, hangers, motors and 
 other apparatus, or parts thereof, or attachments thereto, pertain- 
 ing to the service of the building and the furnishing of power 
 therein, or other fixtures that are a part of the realty, therein, 
 thereon or attached thereto; sidewalks, fences and yard fixtures; 
 
 situate and known as , and used for , or purposes 
 
 not more hazardous. 
 
280 THE AGENTS KEY TO FIRE INSURANCE 
 
 $....0n machines and machinery, tools, apparatus and appurte- 
 nances, and all other personal property, whether required by the 
 terms of this policy to be specifically mentioned or not, except (a) 
 that covered under item one as part of the realty, (b) that covered 
 under item three as part of the stock and (c) that specified in 
 line 38 of this policy; and/or the interest of the assured, if any, 
 in machinery held on storage, or for repairs, or on consignment or 
 royalty, or lease, or for which the assured may be legally liable; 
 and on labor performed and for materials used thereon; all 
 while contained on premises as described in first item. 
 
 Not more than % of this item shall cover on patterns. 
 
 $ On stock, materials and supplies in all stages, including 
 
 samples, labels, cartons, cases, advertising matter and stationery, 
 their own or the property of others for which they are legally 
 liable, or in which they have an insurable interest not stated herein 
 to the extent of such interest; and on labor performed and/or 
 materials used thereon; all while contained on premises as described 
 in first item. 
 
 Special Conditions. — This policy does not cover stock or other 
 property specifically insured unless the value thereof exceeds the 
 specific insurance and in that event for the amount of such excess 
 value only. 
 
 Exclusions. — This policy shall not be held to cover cost of exca- 
 vations; nor foundations of any building below the level of the 
 ground. 
 Privileges Extended to the Assured. — To do such work and to 
 
 use such materials as are usual to the business of ; to 
 
 operate extra hours, or all night, without prejudice to this insur- 
 ance, it being agreed that a competent man, other than the regular 
 watchman, shall have supervision and make regular inspection of 
 those rooms m which shafting and belting are running, and where 
 employees are not at work; to remain vacant not exceeding a total 
 of thirty days during the life of this policy; for other insurance 
 without notice until required; for mechanics to be employed for 
 ordinary alterations and repairs in the within described premises, 
 but this shall not be held to include the constructing or reconstruct- 
 ing of the building or buildings, or additions, or the enlargement of 
 the premises. 
 
 This policy covers pro rata of each of the above amounts, aggre- 
 gating $ 
 
 Lightning Clause. 
 80% Clause. With 5% Exemption. 
 (Add other usual or required clauses.) 
 
 Note: — If desired, the foregoing may be used as a blanket form, 
 covering all buildings and contents of a plant (but separating 
 them into three items), by making the word building in first line 
 plural and adding the following distribution clause: 
 
 Each item of this policy shall attach on or in each separate 
 building or location in the proportion which the value on or in 
 each bears to that on or in all. 
 
MANUFACTURING BUILDINGS AND CONTENTS 281 
 
 MANUFACTURING SPECIAL HAZARDS FORM 
 
 {Uniformity IV est) 
 
 This policy being for $...., covers its pro rata proportion of 
 and on the following amounts and items: 
 
 *1 $. . . .On the story roof building, occu- 
 pied as 
 
 *2 $. . . .On macliinery, and 
 
 *3 $ On stock, and 
 
 *4 $....0n patterns, moulds, models and forms; all only while 
 contained in, or attached to, said building. 
 
 *5 $ On the story roof building, occu- 
 pied as 
 
 *6 $....0n machinery, and 
 
 *7 $. . . .On stock, and 
 
 *8 $....0n patterns, moulds, models and forms; all only while 
 contained in, or attached to, said building. 
 
 *9 $ On the story roof building, occu- 
 pied as 
 
 *10 $....0n machinery, and 
 
 *11 $ On stock, and 
 
 *12 $....0n patterns, moulds, models and forms; all only while 
 contained in, or attached to, said building. 
 
 *13 $....0n 
 
 $.... Total Insurance. Average Premium Per M. $.... 
 
 All the above described property being situated 
 
 State of 
 
 *No insurance attaches under any of the above items unless a 
 certain amount is specified and inserted in blank immediately 
 preceding the item. 
 
 The words "Building," "Machinery" and "Stock" as used 
 herein shall be construed to cover as follows: 
 
 "Building" — On building, including foundations, plumbing, elec- 
 tric wiring and stationary heating, lighting and ventilating appa- 
 ratus and fixtures therein; also all permanent fixtures, stationary 
 scales and elevators, belonging to and constituting a part of said 
 building. 
 
 "Machinery" — On fixed and movable machinery of every de- 
 scription, engines, boilers, pumps, dynamos, electrical machinery, 
 apparatus, appliances and devices, including their settings, con- 
 nections, attachments and appurtenances; fuel; hose and other 
 fire extinguishing appliances; signs and awnings (signs and awn- 
 ings covered under fire policies only) ; drawings, dies, scientific 
 apparatus; pictures, paintings, engravings and their frames, all 
 at not exceeding cost; factory furniture, fixtures, equipment, tools, 
 implements, utensils, and machinist's supplies, also office furniture, 
 
282 THE AGENTS KEY TO FIRE INSURANCE j 
 
 fixtures and supplies, including printed books, safes and type- 
 writers. ^ 
 
 "Stock" — On merchandise and materials, manufactured, un- j 
 
 manufactured, and in process of manufacture, including all ma- , 
 
 terials and supplies used in packing and preparing same for ship- j 
 
 ment; and provided the assured is legally liable therefor, this ■ 
 item shall also cover such stock held in trust, or on commission, 
 or sold but not delivered. 
 
 The items on "Machinery," "Stock," and "Patterns, moulds, models j 
 
 and forms," shall also cover said "Machinery," "Stock," and "Pat- , 
 
 terns, moulds, models and forms" within one hundred (100) feet of ' 
 
 the above described buildings while on sidewalks, streets, alleys, j 
 yards, detached platforms and in or on vehicles or railway cars; 
 
 also on said "Machinery," "Stock," and "Patterns, moulds, models ; 
 
 and forms" while on platform in contact with above described j 
 buildings; all only while in transit to and from said buildings. .- 
 
 Permission granted for such use of the premises as is usual and ' 
 
 incidental in the business, as conducted therein, of I 
 
 (state kind of business) and when not in violation of any i 
 
 law, statute or municipal restriction, to keep and use all articles ! 
 
 and materials usual and incidental to said business, in such i 
 quantities as the exigencies of the business require. 
 
 (Attach usual and required clauses.) 
 
 BLANKET MACHINERY AND STOCK FORM (MFG.) ] 
 (Illustration) 
 
 On the entire contents of the buildings occupied by assured, i 
 
 consisting largely of automobiles and parts thereof, machinery j 
 
 •and equipment, situated and known as Nos ; 
 
 This insurance also covers such, property as is insured here- , 
 under when outside of buildings described herein, but not beyond 
 
 100 feet from the premises unless otherwise stated herein. \ 
 
 Other insurance permitted. { 
 
 This policy includes property as described and also all other ";. 
 
 property insurable under the conditions of this policy, whether j 
 
 specifically mentioned herein or not, if same forms part of j 
 
 assured's stock or equipment insured hereunder or is appurtenant ^ 
 
 thereto. | 
 
 (Add usual clauses.) i 
 
 BLANKET FORM (MANUFACTURING) •; 
 
 $ On all property, both real and personal (including property j 
 
 specifically enumerated in the policy on which liability is required ; 
 
 to be specifically assumed, but excluding accounts, bills, currency, j 
 deeds, evidences of debt, money, notes, or securities), belonging to 
 the insured and on the insured's interest in and/or liability for 
 
MANUFACTURING BUILDINGS AND CONTENTS 283 
 
 property held by the insured on storage, or for repairs, or other- 
 wise, and belonging in whole or in part to others; also for labor 
 performed or materials expended thereon. All while contained on 
 his premises, occupied principally for purposes, situate 
 
 Attach clauses shown under "Special Agreements" numbered 
 1, 2, 3, 4, 5, 6, 7, 8 and 10; also Electric or other Lighting that 
 may be required, Mechanics, and Cease Operations, Vacancy and/ 
 or Unoccupancy as permitted, together with such other clauses as 
 may be necessary or desirable, or as may be required by local 
 rules. 
 
 (See also Blanket Policies.) 
 
 PRINTERS' FORM 
 
 $ On patterns, moulds, models, matrices, drawings, designs, 
 
 dies, solutions, photographic negatives, and lithographic plates and 
 stones, and engravings thereon; the property of the assured, or 
 held by the assured in trust, or the property of others for which 
 the assured may be liable, including labor performed on same; 
 and 
 
 $ On engines, boilers, dynamos, motors, machines, machinery, 
 
 forges, flasks, cranes, tramways, connections, millwright work, set- 
 tings, steam, gas and water pipes, gas and electric fixtures, heating 
 apparatus, shafting, belting, pulleys, hangers, pumps, tanks, vats, 
 retorts, conveyors, scales, trucks, presses, type, cameras, lenses, 
 lasts, machinery supplies, fuel, machinery repairs and labor there- 
 on; pounces, cutters, knives, stencils, imposing stones and frames, 
 blocks, brass stamps and gilding tools; and on plans, sketches, 
 stereotypes, electrotypes, cuts, plates (other than lithographic), 
 wood cuts, half-tones and work, labor and engravings thereon; 
 meters, factory, office and other furniture and fixtures of every 
 description, shelving, carpets, matting, shades, partitions, show 
 cases and show figures (inside and outside), lettering, pictures, 
 clocks, awnings, signs, iron safes, stationery, typewriting machines, 
 telephones and connections, blowers, advertising matter, trunks, 
 tools, implements, scientific and other instruments, apparatus, uten- 
 sils, appliances and appurtenances, and all other property not 
 heretofore mentioned or otherwise insured (including also im- 
 provements and betterments to buildings where buildings are not 
 owned by assured) ; and 
 
 $....0n Stock, Samples, Materials and Supplies, manufactured, 
 unmanufactured and in process of manufacture, including cases, 
 boxes, labels and packages, and on other merchandise, in all 
 stages. Under the respective items this policy shall cover property 
 of the assured, or on joint account with others, or sold but not 
 delivered or removed, or for which the assured may be liable; and 
 on property of others held on storage or for repairs, for which the 
 assured may be liable; also for labor performed on same; all con- 
 
I 
 
 284 THE AGENTS KEY TO FIRE INSURANCE 
 
 tained in, on, under and about the buildings, additions, extensions 
 and sidewalks, situate: No 
 
 It is understood and agreed that property enumerated under 
 first item is not covered under second item of this policy. 
 
 It is understood and agreed that where the buildings above de- 
 scribed are owned by the assured that such of the above described 
 property as may be enumerated under the building policies is not 
 covered by this policy. 
 
 It is understood and agreed that particular machines and/or 
 motors and/or the property of others, or any other articles or 
 property above enumerated on which there is specific insurance 
 are not covered by this policy. 
 
 (Add usual clauses.) 
 
 PRINTING OFFICE FORM 
 
 {Uniformity West) 
 
 *1 $....0n printing presses and connections, machines, machin- 
 ery; electrical apparatus, appliances and devices; brass rules, 
 stands, cases, galleys, chases, type, slugs; metal and wood furni-l 
 ture; imposing stones and frames, racks, cabinets; electrotypes,-: 
 stereotypes, woodcuts, electrotype and stereotype blocks, plates, | 
 cuts; paper cutters and connections, tables, tools, shafting, belting, ^^ 
 gearing, hangers, pulleys, inks, rollers; store and office furniture, | 
 fixtures, printed books and supplies, counters, shelving, show cases,| 
 scales, desks, safes, typewriters, cash registers; pictures, paintings* 
 and engravings, including their frames, all at not exceeding cost; 
 lighting fixtures, stoves, signs and awnings (signs and awnings! 
 covered under fire policies only) ; and all other tools, implements] 
 and utensils as are usually kept in printing establishments; alll 
 not belonging to and constituting a permanent part of the building;: 
 also on stock of paper, plain, printed and in process of printing,! 
 and such other merchandise and materials as are usually kept inf 
 printing establishments; and, provided the assured is legally liable^ 
 therefor, this item shall also cover such merchandise and materiall 
 held in trust, or on commission, or sold but not delivered; allj 
 
 only while contained in, or attached to, the story 
 
 roof building, situated 
 
 *2 $....0n 
 
 *No insurance attaches under any of the above items unless 
 certain amount is specified and inserted, in blank immediately 
 preceding the item. \ 
 
 (Attach usual clauses.) 
 
 MERGENTHALER LINOTYPE CO. FORM 
 
 (Used where their machines are insured while in the hands of 
 
 others.) 
 $ On Linotype Machines, including all parts of and appurte- 
 nances to same, while contained in the buildings situate-^ 
 
 i 
 ] 
 
MANUFACTURING BUILDINGS AND CONTENTS 285 
 
 Loss, if any, first payable to the Mergenthaler Linotype Co., as 
 its lien or mortgagee interest may appear. 
 
 Privileged to work overtime and at night, to cease operations, 
 to use oil stoves, to use electricity for light, heat and/or power, to 
 make alterations, additions and repairs, and this policy to cover 
 therein, to do such work, and to use such materials as are usual 
 in the business of printers, and for other insurance. 
 
 This policy shall cover any direct loss or damage caused by 
 Lightning (meaning thereby the commonly accepted use of the 
 term Lightning and in no case to include loss or damage by cyclone, 
 tornado or wind-storm), not exceeding the sum insured, nor the 
 interest of the insured in the property, and subject in all other 
 respects to the terms and conditions of this policy. Provided, how- 
 ever, if there shall be any other insurance on said property, this 
 Company shall be liable only pro rata with such other insurance 
 for any direct loss by Lightning, whether such other insurance 
 be against direct loss by Lightning or not. 
 
 PRINTERS' OR LITHOGRAPHERS* FORM 
 
 $ On presses, motors, machines, mills, machinery, shafting, 
 
 belting, pulleys, hangers, piping, tubing, type, electrotypes and 
 labor performed in setting type, tools, implements, utensils, appurte- 
 nances and machinery supplies, and on electric and gas apparatus 
 and fixtures, and on photographic apparatus, supplies and fixtures, 
 photographic positives and transparencies; and on office and fac- 
 tory furniture and fixtures, signs, fresco work, wall and ceiling 
 decorations, iron safes, stationery, office supplies, slates, tubes, 
 metal plates, pictures, paintings and their frames and shadow 
 boxes; and on framed and unframed specimens, progressive proofs, 
 prints, photographs, books, art publications, and manuscript, and 
 on paper, card board, muslin, satin and other materials, printed 
 and unprinted with the work thereon, finished or unfinished, and 
 on goods in stock, or sold but not removed, whether paid for or 
 not, and on inks, colors, varnish, bronzes, metal leaf, and other 
 supplies, and on all other contents of whatever nature not other- 
 wise insured. 
 
 $ On patterns, models, moulds, matrices, drawings, designs, 
 
 dies, solutions, photographic negatives and copper cylinders coat- 
 ed with zinc or uncoated, used as a lithographic or gravure print- 
 ing surface, lithographic plates and stones and engravings and 
 drawings thereon, sketches, drawings, pictures, paintings, and de- 
 signs, finished or unfinished including their frames. 
 
 This policy shall cover, under the respective items, the interest 
 of the insured in and/or liability for similar property held on 
 storage, or for repairs, or otherwise, and belonging in whole or 
 in part to others. 
 
286 THE AGENTS KEY TO FIRE INSURANCE ^ 
 
 CLOTHING MANUFACTURING FORM 
 
 {In hands of other parties) 
 
 $....0n their clothing, manufactured and in process, including 
 labor of employees, and all materials and supplies used in making 
 
 and/or repairing the same, while contained in the building, 
 
 occupied as a situate said stock held by for 
 
 manufacturing purposes. 
 
 Other insurance permitted. 
 
 This insurance is against only loss or damage by fire to property 
 contained in premises above described, and does not cover any 
 loss, direct or consequential, to property in any other location. 
 
 CLOTH SPONGERS' FORM 
 
 $....0n woolens and other merchandise not hazardous, hazard- 
 ous and extra hazardous, finished, unfinished or in the process of 
 finishing, sponging, manufacturing or examining (including cost 
 of labor expended thereon) the property of the assured or held in 
 trust or on commission or on joint account with others, or sold 
 but not delivered or removed, all while contained in or on build- 
 ings, extensions, and additions thereto and in vaults and under the 
 sidewalks of the premises of the situate 
 
 This policy is issued with the understanding and agreement on 
 the part of the company to issue certificates of insurance to any 
 firm or firms, having merchandise in the above mentioned prem- 
 ises as shall be requested by the assured or their representatives 
 for amounts not exceeding in the aggregate the total amount of 
 the policy and not to extend beyond the expiration thereof. 
 
 It is further understood and agreed that such certificates shall 
 form a part of this policy contract and be subject to all its condi- 
 tions. 
 
 It is understood and agreed that this insurance is not held to 
 include merchandise or property on which at the time of loss there 
 may be specific insurance. 
 
 (Attach other usual or required clauses.) 
 
 STOCK IN TANNERY FORM 
 
 {Operator's Insurance) 
 
 $ On stock of hides, skins and leather in all stages, and on 
 
 all by-products of tanning, such as hair, grease and glue stock, 
 and on bark, tanning liquors and all materials and supplies used 
 in the insured'*s business, while contained, etc. 
 
 This policy also covers the legal liability of the insured for 
 similar property belonging in whole or in part to other parties. 
 
 (Attach other usual or required clauses.) 
 
MANUFACTURING BUILDINGS AND CONTENTS 287 
 
 STOCK IN TANNERY FORM 
 
 {For Outside Parties) 
 
 $ On stock of hides, leather, skins and pelts, manufactured, 
 
 unmanufactured or in process of manufacture, including all ar- 
 ticles and materials entering into the same, their own or for which 
 they may be liable or sold but not removed, while contained, etc. 
 
 (Attach usual or required clauses.) 
 
 STOCK IN TANNERY FORM 
 
 {For Outside Parties) (2) 
 
 $ On their divided or undivided interest in stock of hides and 
 
 leather of all kinds in all stages and on materials and supplies 
 therefor, while contained, etc. 
 
 This policy shall not cover property more specifically insured 
 except for the excess of value, if any, over the amount of such 
 specific insurance. 
 
 (Attach usual or required clauses.) 
 
 CREAMERY OR CHEESE FACTORY FORM 
 
 {Uniformity West) 
 (For Use on Either Fire or Tornado Policies) 
 
 *1 $ On the story roof building, in- 
 cluding foundations, plumbing, electric wiring and stationary heat- 
 ing, lighting and ventilating apparatus and fixtures therein; also 
 all permanent fixtures, stationary scales and elevators, belonging 
 to and constituting a part of said building; occupied as a 
 
 (state whether creamery or cheese factory) 
 
 situated 
 
 *2 $....0n boilers and engines, pumps, fixed and movable 
 machinery, including foundations, settings, connections and at- 
 tachments ; separators, vats, steam piping, cans, receivers and 
 containers; electrical apparatus, appliances and devices; tools, 
 implements, utensils, scales and office and factory furniture, fixtures, 
 printed books and supplies; all only while contained in the above 
 described building. 
 
 *3 $. . . .On stock of milk, cream, butter, cheese, tubs, paper, linen, 
 paper circles, rennet, bandages, color, salt and such other material 
 and supplies used in the manufacture and preparation of the 
 product of this plant; and, provided the assured is legally liable 
 therefor, this item shall also cover such merchandise held in 
 trust, or on commission, or sold but not delivered; all only while 
 contained in the above described building. 
 
 This item shall also cover said merchandise within one hundred 
 (100) feet of the above described building while on sidewalks, 
 streets, alleys, yards, detached platforms and in or on vehicles 
 
288 THE AGENTS KEY TO FIRE INSURANCE 
 
 or railway cars; also on said merchandise while on platforms in 
 contact with above described building; all only while in transit 
 to and from said building. 
 
 *4 $....0n........ 
 
 *No insurance attaches under any of the above items unless a 
 certain amount is specified and inserted in blank immediately 
 preceding the item. 
 
 (Attach usual clauses.) 
 
 FERTILIZER RISKS (DRY MIXING PLANTS) 
 
 (Buildings and Machinery — Specific) 
 {S. E. U. A.) 
 Fertilizer or Phosphate Co., situated 
 
 $. . . .On their story, frame roof building, includ- 
 ing foundations, partitiqns and platforms adjoining and connected 
 therewith, while occupied by assured for manufacturing Fertilizers, 
 known as Mixing Building. Building No 
 
 $....0n their fixed and movable machinery, including crushers, 
 mixers, conveyors, elevators, sacking machines, blowers, shafting, 
 belting, hangers, connections, tools and all necessary appurtenances 
 and appliances, all while contained in the Mixing Building above 
 described. 
 
 $....0n their story roof Boiler House Building, 
 
 located feet from above described Mill Building. Building 
 
 No 
 
 $...,0n their engines, boilers, smokestack, foundations, pumps 
 and connections, all contained in the Boiler House Building above 
 described. 
 
 This insurance is effected subject to the: following conditions, 
 which are accepted as parts of this contract: 
 
 Fire Protection Clause. — In consideration of the reduced rate 
 at which this policy is written, it is hereby made a condition of 
 this insurance that all of the private fire protection, for which 
 credit is given in the rating on the within named property, shall 
 at all times be kept in good condition and complete working order, 
 whether it be fire-plug and hose, with spanner — or casks of water 
 and fire-pails — or watchman's clock and records — or fire-pump — 
 or any other kind of private fire protection; and assured agrees 
 that in event of failure to do so, this policy shall be null and 
 void, unless the interruption of such fire protection be from 
 circumstances not within the control or knowledge of the assured, 
 or which could not have been prevented by the exercise of due 
 diligence on the part of the assured. 
 Warranted by the Assured : 
 
 That the following articles, when in excess of one day's supply, 
 shall be kept and stored only as hereinafter provided. 
 
MANUFACTURING BUILDINGS AND CONTENTS 28'J 
 
 1. Garbage Tankage and Fish Scrap (other than acidulated) 
 AND Wool Waste in Bulk — (a) In an approved magazine when 
 in Mixing Building or Storage Warehouse, or (b) when in a 
 standard reinforced concrete building outside of said buildings, 
 or (c) when in a standard brick building not nearer than 20 
 feet, or (d) when in a frame building not nearer than 50 feet, 
 or (e) shall not be stored in Mixing Building or Storage Ware- 
 house, unless in bags tiered in piles of not exceeding in width 
 the length of three (3) bags with at least two (2) feet clear 
 space on all sides and above, unless permit is attached to this 
 policy and an additional premium paid therefor. 
 
 2. Empty Niter Bags. — Will at no time be allowed to be kept in 
 Mixing Building, or any other building, excepting in Niter House 
 or in a special building for the purpose, detached not less than 
 20 feet if standard brick building, or 50 feet if frame building, 
 unless permit is attached to this policy and an additional premium 
 paid therefor. 
 
 Permission Granted: 
 
 (1) To make ordinary alterations, additions and any repairs 
 needed, but it is understood and agreed that extraordinary altera- 
 tions or additions are prohibited without notice to and consent of 
 this Company in writing. (2) To operate Mixing Building, also 
 boilers connected therewith, at night for a period of not exceeding 
 seventy-five (75) days within each calendar year. (3) To have 
 and use such materials not named in warranty as are usual to the 
 prosecution of their business. (4) To cease operation during the 
 usual vacation incident to their business on the express condition 
 that all private fire protection for which credit is given in the 
 rating on the within named property shall be kept in good 
 condition and complete working order, and that a watchman 
 with an approved watch-clock shall be on duty day and night 
 during the period of vacation, except it is understood that, 
 between manufacturing periods when employees are regularly 
 working on premises, plant is not considered "shut down and 
 not in operation" as to watchman's service and in such cases 
 day watchman is not required. (5) To generate and/or use 
 electricity for lights and power when the electrical equipment is 
 in full compliance with the "National Electrical Code." 
 (Attach Lightning, Dynamo and Standard Time Clauses.) 
 Note: — In every case where the co-insurance clause is not ap- 
 plicable, the three-fourths value clause must be inserted. When- 
 ever the three-fourths value clause is used, the total amount of 
 insurance allowed must be stated in the policy. 
 
 FERTILIZER RISKS (FULL PROCESS PLANTS) 
 
 (Buildings and Machinery — Specific) 
 
 Fertilizer or Phosphate Co., situated 
 
 $....0n their story, frame. roof building, includ- 
 
290 THE AGENTS KEY TO FIRE INSURANCE 
 
 ing foundations, partitions and platforms adjoining and connected 
 therewith, while occupied by assufed for manufacturing Fertilizers, 
 known as Fertilizer or Dump Shed Building. Building No 
 
 $....0n their fixed and movable machinery, including crushers, 
 mixers, conveyors, elevators, sacking machines, blowers, shafting, 
 belting, hangers, connections, tools and all necessary appurtenances 
 and appliances, all while contained in the Fertilizer Factory or 
 Dump Shed Building above described. 
 
 $ On their story, roof Boiler House Building, 
 
 located feet from above described Mill Building. Building 
 
 No 
 
 $ On their engines, boilers, smokestack, foundations, pumps 
 
 and connections, all contained in the Boiler House Building above 
 described. 
 
 $..,.0n their story, frame roof building, includ- 
 ing foundations, partitions and platforms adjoining and con- 
 necting therewith, while occupied by assured for manufacturing 
 Fertilizers, known as Acid Chamber Building. Building No. 
 
 $ On lead chambers and furnaces and all appurtenances 
 
 and appliances connected therewith, contained in the above de- 
 scribed Acid Chamber Building. 
 
 $. . . .On their story, roof Boiler House Building, 
 
 located feet from the above described Acid Chamber Build- 
 ing. Building No 
 
 $ On their boilers, foundations, pumps and connections, all 
 
 while contained in the above described Boiler House. 
 
 This insurance is effected subject to the following conditions, 
 which are accepted as parts of this contract: 
 
 Warranted by the Assured: 
 
 That the following articles when in excess of one day's supply 
 shall be kept and stored only as hereinafter provided: 
 
 1. Nitrate of Soda. — (a) In an approved magazine when in 
 Fertilizer Factory or Dump Shed, Mill or Acidulating Building 
 or Storage Warehouse and/or Acid Chamber Building, or (b) 
 when in a standard reinforced concrete building, outside of said 
 buildings, or (c) when in a standard brick building not nearer 
 than 20 feet, or (d) when in a frame building not nearer than 
 50 feet, or (e) shall not be kept in any building except when 
 stored as above provided unless permit for same is attached to 
 this policy and an additional premium paid therefor. 
 
 2. Garbage Tankage and Fish Scrap (other than acidulated). 
 — (a) In an approved magazine when in Fertilizer Factory or 
 Dump Shed, Mill or Acidulating Building or Storage V^arehouse 
 and/or Acid Chamber Building, or (b) when in a stai dard re- 
 inforced concrete building outside of said buildings, or (c) when 
 
MANUFACTURING BUILDINGS AND CONTENTS 291 
 
 in a standard brick building not nearer than 20 feet, or (d) when 
 in a frame building not nearer than 50 feet, or (e) shall not 
 be stored in Fertilizer Factory or Dump Shed, Mill or Acidulating 
 Building, or Storage Warehouse and/or Acid Chamber Building 
 unless in bags tiered in piles of not exceeding in width the length 
 of three (3) bags with at least two (2) feet clear space on all 
 sides and above, unless permit is attached to this policy, and 
 an additional premium paid therefor. 
 
 3. Empty Niter Bags. — Will at no time be allowed to be kept 
 in Fertilizer Factory or Dump Shed, Mill or Acidulating Building 
 or Storage Warehouse and/or Acid Chamber Building, or any 
 other building, excepting in the Niter House, or in a special 
 building for the purpose detached as specified in item 1 of this 
 warranty, unless permit is attached to this policy and an additional 
 premium paid therefor. 
 Permission Granted: 
 
 (1) To make ordinary alterations, additions, and any repairs 
 needed, but it is understood and agreed that extraordinary altera- 
 tions or additions are prohibited without notice to and consent 
 of this Company in writing. (2) To work Acid Chambers and 
 furnaces connected therewith, also boilers for use of Acid Cham- 
 bers, at night if necessary; also to operate Mill or Acidulating 
 Building and Fertilizer Factory or Dump Shed at night for a 
 period of not exceeding seventy-five (75) days within each calendar 
 year. (3) To have and use such materials not named in warranty 
 as are usual to the prosecution of their business. (4) To cease 
 operation during the usual vacation incident to their business on 
 the express conditions as follows: (a) That all private fire 
 protection, for which credit is given in the rating on the within 
 named property, shall be kept in good condition and complete 
 working order, except it is understood that provided there is a 
 city connection of standard size and pressure or a tank of 
 standard capacity and elevation as a source of water supply in 
 addition to the supply from fire-pumps the actual maintenance of 
 steam pressure in boilers for operating fire-pumps is not required 
 but the boilers for operating fire-pumps will be kept filled with 
 water to the proper level and fuel properly laid in boiler furnaces 
 ready to be fired for quick steaming of boilers at all times 
 during the period of vacation, (b) That a watchman with an 
 approved watch-clock shall be on duty day and night, during 
 the period of vacation, except it is understood that between manu- 
 facturing periods when employees are regularly working on prem- 
 ises, plant is not considered "shut down and not in operation" 
 as to watchman's service and in such cases day watchman is 
 not required. (5) To generate and/or use electricity for lights 
 and power when the electrical equipment is in full compliance 
 with the "National Electrical Code " 
 
 (Attach Fire Protection, Lightning and Dynamo and Standard 
 Time Clauses.) 
 
DIVISION IX i 
 
 MISCELLANEOUS NON-MANUFACTURING i 
 
 There are many classes of property that are not custom- 
 arily grouped as mercantile or as manufacturing risks, for 
 which it is usual to draw special forms; a few are given for 
 illustration. 
 
 The permits and clauses to be attached to such forms are 
 those applicable generally, together with such as may seem 
 desirable or necessary to meet the particular needs of each 
 separate risk, or those required locally. 
 
 COAL MINING PLANT FORM 
 
 {Uniformity West) 
 
 This policy being for $...,, covers its pro rata proportion of 
 and on the following amounts and items: 
 
 *1 $. . . .On the roof tipple building, including all 
 
 permanent fixtures, approaches and trestles attached thereto, and 
 construction work to a point twenty feet below the level of the 
 ground; mine cars, cages, shear wheels, steel ropes, scales, screens, 
 tipples, hoppers, and all other equipment and appurtenances usual 
 to a coal tipple, all only while contained in or on said tipple 
 building, approaches and trestles. 
 
 *2 $ .... On the roof fan house building ; includ- 
 ing foundations and all permanent fixtures belonging to and 
 constituting a part of said building; on engines, pumps, fixed 
 and movable machinery, including foundations, settings, connec- 
 tions, and attachments; dynamos, electrical appliances, apparatus 
 and devices; and all furniture and fixtures, tools, implements, 
 utensils and supplies; all only while contained in said fan house 
 building. 
 
 *3 $....0n the roof boiler and engine house 
 
 building, including foundations and all permanent fixtures be- 
 longing to and constituting a part of said building. 
 
 *4 $....0n engines, boilers, pumps, fixed and movable machin- 
 ery, Including foundations, settings, connections and attachments; 
 dynamos, electrical appliances, apparatus and devices; and all 
 furniture and fixtures, tools. Implements, utensils and supplies; 
 all only while contained in the above described boiler and engine 
 house. 
 
 *5$....0n the roof power house building, in- 
 cluding foundations and all permanent fixtures belonging to and 
 constituting a part of said building. 
 
 ?92 
 
MISCELLANEOUS NON-MANUFACTURING 293 
 
 *6 $....0n engines, pumps, fixed and movable machinery, in- 
 cluding foundations, settings, connections and attachments ; dyna- 
 mos,, electrical appliances, apparatus and devices; and all furniture 
 and fixtures, tools, implements, utensils and supplies; all only 
 while contained in the above described power house. 
 
 Note: — Items 3 and 4 to be used only in cases where there is a 
 separate power house aside from boiler and engine house. 
 
 *7 $. . . .On the roof blacksmith and machine shop 
 
 building, including foundations, stationary forges and all per- 
 manent fixtures belonging to and constituting a part of said 
 building. 
 
 *8 $....0n fixed and movable machines and machinery, in- 
 cluding foundations, settings, connections and attachments; elec- 
 trical appliances, apparatus and devices; portable forges, bellows 
 and all furniture and fixtures, tools, implements, utensils and 
 supplies; all only while contained in the above described black- 
 smith and machine shop. 
 
 *9 $ On the roof stable . building, including 
 
 foundations and all permanent fixtures belonging to and con- 
 stituting a part of said building. 
 
 *10 $.. ..On horses and mules; in case of loss this company 
 will not be liable for more than (or in case of other insurance 
 for more than its pro rata proportion of) $250 on any one horse 
 or any one mule, nor in any case for more than the actual cash 
 value of the animal damaged or destroyed; vehicles (excluding 
 automobiles and motorcycles), harness, blankets, tools, implements, 
 hay, grain and feed; all only while contained in the above de- 
 scribed stable. 
 
 *11 $....0n the roof office building, including 
 
 foundations and all permanent fixtures belonging to and constituting 
 a part of said building. 
 
 *12 $...,0n office furniture, fixtures and supplies, desks, safes, 
 typewriters, stoves, tools, implements and utensils; all only while 
 contained in the above described office building. 
 
 *13 $....0n 
 
 $.... Total Insurance. Average Premium Per M. $.... 
 
 All of the above described property being situated 
 
 , State of Illinois. 
 
 *No insurance attaches under any of the above items unless a 
 certain amount is specified and inserted in blank immediately pre- 
 ceding the item. 
 
 Other insurance permitted. 
 
 Permission granted to operate at night later than ten (10) 
 o'clock P. M. 
 
 Permission granted to cease operations for not exceeding thirty 
 (30) days at any one time. 
 
 (Attach Mechanic's Permit, Work and Materials, Lightning and 
 Dynamo and other usual clauses.) 
 
294 THE AGENTS KEY TO FIRE INSURANCE i 
 
 BITUMINOUS COAL FORM | 
 
 (Uniformity West) ^ 
 
 $ On bituminous coal (except bituminous slack or screenings) ; \ 
 
 and provided the assured is legally liable therefor, this item shall j 
 also cover such coal held in trust or on commission, or sold but ] 
 not delivered, only while piled outside of building, free and clear ^ 
 
 of any slack or screenings, located on premises known as i 
 
 and on railroad cars within 100 feet thereof, situated I 
 
 The steel or other hoisting apparatus on said premises is re- j 
 
 quired to be moved and kept at least one hundred (100) feet from \ 
 
 any frame covered or enclosed structure except loading pockets, \ 
 
 when such hoisting apparatus is not in use. ': 
 
 Any claim for loss or damage to property insured, by any one \ 
 
 fire where actual loss or damage does not exceed $5,000.00 in one i 
 
 fire, is hereby expressly waived in advance. Only the excess of .' 
 
 loss or damage above $5,000.00 in any one fire is contracted to be ; 
 insured hereunder. 
 
 Permission to work nights and to cease operations for such j 
 
 periods as in the nature of the assured's business may be necessary. : 
 
 (Attach usual or required clauses.) i 
 
 DOCK OR TERMINAL COMPANY'S FORM 
 
 $ On goods, wares and merchandise of every description, 
 
 belonging to other parties in whole or in part, for which the in- 
 sured is liable by reason of mistakes, omissions, inability or neglect 
 on the part of the said insured, while contained in or on all the 
 buildings owned, occupied or operated by them, situate on or near 
 
 also in and on the piers, wharves, yards, streets, sheds and 
 
 bulkheads adjacent thereto. 
 
 It is understood and agreed that the liability of this insurance 
 
 company under this policy is limited to ($ ) for 
 
 loss resulting from any one fire and that no other insurance is to be ; 
 considered contributing unless it be under a form concurrent with 
 this policy. 
 
 Privilege to do such work and to use such materials as are 
 usual in the business of warehousemen, common carriers, freighters 
 and forwarders, and to transport and handle such merchandise 
 and other property as may be usual in the business of Steamship 
 Companies, Railroads, Common Carriers, Forwarders and Ware- 
 housemen. ; 
 
 It is understood and agreed that Motor Vehicles are allowed 
 on the above described premises. 
 
 (Attach other usual or required clauses.) 
 
 
MISCELLANEOUS NON-MANUFACTURING 295 
 
 LUMBER FORM 
 
 {Tonaivanda) 
 
 $ On lumber, timber, lath, shingles, pickets, posts, and all 
 
 other stock in their line of trade, including lumber yard fixtures 
 and equipment consisting principally of foundations, roadways, 
 trucks, sleighs, piling strips and coverings, their own or held by 
 them in trust, for sale or on commission, or sold but not delivered 
 or removed all while contained on their yard and dock, or on 
 
 dock adjoining, and in or on vessels tied up at said dock, 
 
 also in sheds or in or on cars, on side tracks, on wagons, trucks, 
 sleighs, and in streets, roadways, and on loading grounds adjacent 
 to said yard, situate 
 
 It is understood and agreed that this policy does not cover lum- 
 ber in or on vessels until marine insurance thereon ceases. 
 
 Other concurrent insurance permitted. 
 
 Clear Space clause attached. 
 
 % Coinsurance Clause. 
 
 (Add other usual or required clauses.) 
 
 LUMBER FORM (RETAIL) 
 
 {Uniformity West) 
 
 $....0n office building, warehouses, stables, sheds and fences; 
 and on lumber, lath, shingles, pickets, posts, timbers, sash doors, 
 blinds, mouldings, window glass, nails, mixed and dry paints, 
 lime, hair, cement, coal, wire, plaster, building paper, builders' 
 hardware, and such other merchandise as is usually kept for sale 
 in retail lumber yards; and, provided the assured is legally liable 
 therefor, this item shall also cover such merchandise held in trust, 
 or on commission, or sold but not delivered; on tools, implements, 
 utensils, scales, harness, feed and vehicles (excluding automobiles, 
 motorcycles and gasoline trucks), on horses and mules (in case of 
 loss this company will not be liable for more than [or in case 
 of other insurance for more than its pro rata proportion of] 
 $250 on any one horse or any one mule, nor in any case for more 
 than the actual cash value of the animal damaged or destroyed) ; 
 on office furniture and fixtures, stationery, office supplies and safe; 
 all only while contained in assured's buildings and yard, or in 
 cars in assured's yard or within 100 feet thereof, situated 
 
 If this form is attached to a fire policy this company assumes 
 liability for loss on horses and mules by lightning, while on or 
 off the premises. 
 
 (Attach usual and required clauses.) 
 
296 THE AGENTS KEY TO FIRE INSURANCE I 
 
 LUMBER FORM (OTHER THAN RETAIL) 
 
 {Uniformity IV est) \ 
 
 $....On lumber, lath, shingles, poles, posts, ties, slabs and other i 
 timber products; and, provided the assured is legally liable there- ] 
 for, this item shall also cover such products held in trust, or on 5 
 
 commission, or sold but not delivered; all only while on i 
 
 yard situated ; also in cars on the premises above de- \ 
 
 scribed or within 100 feet thereof, | 
 
 Other insurance permitted. ~ \ 
 
 It is a condition of this insurance that this policy shall also j 
 cover on tramways, if the property of the assured ; provided, ; 
 however, that the liability of this company shall extend only to : 
 such portions of said tramways as are within the limits of the 
 within described lumber yard, and in no event shall this company \ 
 be liable for any part of said tramways that may be within the j 
 clear space maintained between the within described lumber yard \ 
 and anv woodworking or manufacturing establishment or dry j 
 kiln. 
 
 Clear Space Clause ' 
 
 It is made a condition of this insurance that a continuous clear 1 
 
 space of not less than feet shall at all times hereafter \ 
 
 be maintained between the property herein described and any : 
 woodworking or manufacturing establishment, or dry kiln; and j 
 that said space shall not be used for the handling or piling of 
 lumber thereon for any purpose (tramways upon which lumber < 
 is not piled alone being excepted) ; but this shall not be con- , 
 strued to prohibit loading or unloading within, or the transporta- : 
 tion of lumber or timber products across such clear space. j 
 
 Should the property hereby insured be or become separated j 
 fifty (50) feet or more, by streets, roadways, alleys, water spaces : 
 or other spaces {not commonly used for piling ground or tern- * 
 porarily vacant), then this policy is subject to the conditions of j 
 the following Average Clause: ' 
 
 Average Clause j 
 
 It is understood and agreed that the amount insured by this \ 
 policy shall attach in each of the above named premises, in that \ 
 proportion to the whole amount insured that the value of property | 
 covered by this policy, contained in each of said places, shall bear 
 to the value of such property contained in all of the above named 
 premises. 
 
 In some localities a reduction in rate is made where a 
 certain percentage of lumber in yard is hardwood, the fol-' 
 lowing clause being attached to policy: 
 
 I 
 
MISCELLANEOUS NON-MANUFACTURING 297 
 
 HARDWOOD LUMBER YARD CLAUSE 
 
 In consideration of a reduced rate of premium, it is made a 
 condition of this insurance, that the lumber contained in the 
 within described lumber yard is not less than....% hardwood, 
 and that not less than....% hardwood lumber shall be kept in 
 said yard during the life of this policy. 
 
 OIL TANK AND CONTENTS FORM 
 
 {Uniformity West) 
 (Steel or Wood Construction) 
 
 *1 $ On barrel state whether farm, working 
 
 or flow tanks tanks of construction, being not ex- 
 ceeding $....on each tank, known, numbered, and situated as 
 follows: 
 
 *2 $ On crude petroleum and/or its products, being not ex- 
 ceeding $..,.on contents of each tank described above. 
 
 This insurance shall also cover, provided the assured is legally 
 liable therefor, property described in this policy, held in trust, 
 or on commission, or on joint account with others, or sold but 
 not delivered. 
 
 *No insurance attaches under any of above items unless a 
 certain amount is specified and inserted in blank immediately 
 preceding the item. 
 
 Other insurance permitted. 
 
 This company shall not be liable for more than its pro rata 
 proportion of any loss under this policy, and the aggregate claim 
 against this company, under all of its policies, regardless of where 
 issued, covering above described property, shall not exceed $.... 
 on any one tank and/or its contents. 
 
 In event of claim for loss or damage to crude petroleum, the 
 basis of settlement shall be the posted market price thereof on 
 the date of the fire, plus the gathering and pipe line charges, 
 plus premium value actually paid, to include also, where crude 
 petroleum is delivered to assured in railroad tank cars, loading, 
 unloading and freight charges; and in event of claini for loss 
 or damage to petroleum products the basis of settlement shall 
 be the market value thereof, at the time and place of loss. 
 
 Daily Record Clause 
 It is made a condition of this insurance: (1) That the assured 
 shall keep a daily report showing a complete record of all crude 
 petroleum and/or its products produced and shipped, and which 
 shall show the amount of crude petroleum and/or its products each 
 day during the term of this policy, in each tank described herein ; 
 (2) That the assured shall at all times keep such complete record 
 in some secure place not exposed to a fire which would ignite or 
 
298 THE AGENTS KEY TO FIRE INSURANCE 
 
 destroy any of the oil tanks described herein; (3) That in case 
 of loss the assured shall produce such complete record. 
 
 This insurance does not cover cost of excavations and fillings, 
 foundations, underground piping, fittings, conduits and drains. 
 
 The validity of this policy shall not be affected if there be a 
 lien, mortgage or bonded indebtedness or if the property is 
 situate on leased ground. 
 
 Notice is hereby acknowledged that the assured has waived or 
 may waive its rights of recovery from railroad or transportation 
 companies for any damage by fire occurring to the property 
 described herein or affected thereby. 
 
 Wherever in this policy time is referred to, it shall be con- 
 strued to mean standard time where the property insured hereunder 
 is located. 
 
 (Attach Lightning and R. R. C. Clauses.) 
 
 ELECTRIC POWER PLANT FORM 
 
 (Illustration) 
 
 This policy for $ covers pro rata on each of the following ; 
 
 items, aggregating to wit: I 
 
 1. $ On the concrete building, occupied as an ■• 
 
 electric light and power station, including additions and perma- i 
 
 nent fixtures, but excluding all foundations below the level i 
 of the basement floors; and on the contents thereof, consisting of 
 
 steam boilers and settings, funnels, stacks, coal bunkers and other ! 
 
 appurtenances, pumps, piping fixtures, tools and all apparatus ! 
 
 pertaining to boilers; steam turbines, motors and their settings, ! 
 
 belting, shafting, pulleys, hangers, and all apparatus pertaining ! 
 
 to motive power; dynamos of all descriptions, regulators, and 1 
 
 other devices belonging thereto; all other electrical and non-electri- i 
 
 cal fixtures, apparatus and devices and all tools, furniture supplies, i 
 
 materials, signs, awnings, pictures and frames, drawings, plans j 
 
 and other property not hereinbefore specified used in its business. \ 
 
 2. $ On Coal Crusher and Conveyor. 
 
 3. $ On Water Tank. 
 
 4. $ On Coal Wharf and Coal Runway, and 
 
 5. $ On Bulkheads, situate ^^ P^ *^* above de- 
 scribed property situated in the approximate vicinity of 
 
 It is hereby understood and agreed that this policy does not 
 attach on any property the title to which in part or as a whole is 
 not vested in this Company if same is specifically insured in form 
 different to the above, or on the said property until the specific 
 insurance thereon is cancelled. 
 
 This policy does not cover any loss on coal caused by spon- 
 taneous combustion of such coal. ^ 
 
 ii 
 
MISCELLANEOUS NON-MANUFACTURING 299 
 
 Permission granted for the use of the above described premises 
 for any purposes incidental to its business, for them to remain 
 vacant and unoccupied; to let portions of them for purposes not 
 more hazardous; to make alterations, additions, and repairs; to 
 operate all night; to cease operations as occasion or necessity 
 may require; but not to exceed ninety (90) consecutive days; to 
 keep and use such articles and oils as may be deemed necessary or 
 as may be incidental to its business or that of its tenants, but not 
 to exceed five gallons of gasoline, benzine or naphtha in any build- 
 ing except the oil house. 
 
 The failure of the assured to comply with the conditions of this 
 policy under any item shall not prejudice their right to recover 
 a loss under any other item. 
 
 The validity of this policy shall not be questioned because of 
 any mortgage that is now in force or that may hereafter be 
 effected upon the property, that is not endorsed hereon. 
 
 Loss, if any, payable to the Trust Company, Trustee, 
 
 Mortgagee, as interest may appear subject nevertheless to all the 
 conditions of the policy. 
 
 (Attach O. I. P. Lightning and Dynamo, Co-Insurance and other 
 
 clauses.) 
 
 ELECTRIC LIGHT AND POWER PLANT FORM 
 {Uniformity West) 
 
 *1 $. . . .On the story roof building, in- 
 cluding foundations, plumbing, electric wiring and stationary 
 heating, lighting and ventilating apparatus and fixtures therein, 
 other than those used for generating electricity; also all per- 
 manent fixtures belonging to and constituting a part of said build- 
 ing; occupied as an electric light plant and (or) power house, 
 situated 
 
 *2 $....0n fixed and movable machinery of every description, 
 engines, boilers, pumps, dynamos, exciters, motors, including their 
 settings, connections, attachments and appurtenances; lamps, 
 switches, wire and other electrical appliances; hose and other 
 fire extinguishing appliances; signs and awnings (signs and 
 awnings covered under fire policies only) ; furniture, fixtures, 
 tools, implements, utensils and supplies; all only while contained 
 in, or attached to, the above described building. 
 
 *4 $....On 
 
 *5 $....0n 
 
 No insurance attaches under any of the above items unless a 
 rtain amount is specified and inserted in blank immediately pre- 
 ceding the item. 
 
 — (Attach usual clauses.) 
 
 It* 
 
300 
 
 THE AGENTS KEY TO FIRE INSURANCE 
 
 ELECTRIC LIGHT AND POWER STATIONS 
 
 (Buildings and Machinery and other Articles subject to Conditions 
 of 80 Per Cent Co-Insurance Clause) 
 
 {S. E. U. A.) 
 
 Electric Light and/or Power Station, situate 
 
 This policy covers to the extent of $...., being pro rata of 
 each of the following items: 
 
 (It is understood and agreed, however, that no part of this 
 insurance attaches or applies to any building or buildings listed 
 below, nor to their contents, except where a specific amount is 
 placed opposite such building, and then applies specifically to 
 buildings and/or contents only in the sum set opposite each 
 such building.) 
 
 $ On Buildings and Connections, including Stacks, Plumbing 
 
 and Piping. 
 
 $ On Machines and Machinery, other than Electrical Ap- 
 purtenances and Appliances, Boilers, Engines and Pumps, including 
 all connections. Implements, Tools, Utensils, Fire Extinguishing 
 Apparatus, Office Furniture, Furnishings and Fixtures, Iron Safes, 
 Printing and Writing Machines, Stationery Supplies, and all 
 material and extra parts, only while contained in building or 
 buildings specified below. 
 
 $ On Dynamos, Exciters, Motors, Transformers, Lamps, 
 
 Switches, Wire and all other Electrical Machinery, Appliances, 
 Appurtenances or Devices, only while contained in building or 
 buildings specified below. 
 
 DESCRIPTION 
 
 Amt. insured 
 on Buildings, 
 
 Etc.. Per 
 I 1st Item 
 
 Amt 
 
 insured 
 
 on 
 
 Machln- 
 
 erv 
 
 , Etc., 
 
 Per 
 
 2d Item 
 
 Amt. insured j 
 
 on Electrical i 
 
 Machinery, \ 
 
 Etc., Per j 
 
 3d item J 
 
 On the story building roof 
 
 known as building 
 
 un the story building roof 
 
 known as building 
 
 On the story buUding roof 
 
 known as building 
 
 On the story building roof 
 
 known as building 
 
 On 
 
 This insurance is effected subject to the following conditions, 
 which are hereby made warranties by the assured, and are ac- 
 cepted as parts of this contract: 
 
 Permission granted for use of Central Oiling System, or to keep 
 not exceeding three (3) barrels of lubricating oils in standard 
 
 \ 
 
MISCELLANEOUS NON-MANUFACTURING 301 
 
 cabinets inside above described buildings ; otherwise not exceeding 
 one day's supply shall be permitted therein. 
 
 (Attach 80% Co-Insurance, Lightning and Dynamo, Fire Pro- 
 tection and Standard Time Clauses.) 
 
 ICE AND ELECTRIC LIGHT PLANTS 
 
 (Buildings and Machinery) 
 {S. E. U. A.) 
 
 Name situate 
 
 This policy covers to the extent of $.... being pro rata of each 
 of the following items: 
 
 (It is understood and agreed, however, that no part of this 
 insurance attaches or applies to any building or buildings listed 
 below, nor to their contents, except where a specific amount is 
 placed opposite such building, and then applies specifically to 
 buildings and/or contents only in the sum set opposite each such 
 building or contents item.) 
 
 (1) $ On story building roof 
 
 situate and occupied as an electric light and ice plant, 
 
 designated as main building. 
 
 (2) $ On Machines and Machinery, other than electrical, 
 
 appurtenances and appliances, excluding boilers and engines and 
 including pipes, tanks, baths, hoisting apparatus, liquefiers, am- 
 monia tanks and their contents, pumps other than boiler, feed 
 and/or fire, including all connections and millwright work, im- 
 plements, tools, utensils, fire extinguishing apparatus, office furni- 
 ture, furnishings and fixtures, iron safes, printing and writing 
 machines, stationery supplies and all material and extra parts 
 and materials required and used in the manufacture of ice for 
 generating of electric light and/or power not specified in the 
 foregoing and while contained in main building described under 
 item No. 1. 
 
 (3) $....0n dynamos, exciters, motors, transformers, lamps, 
 switches, wiring and all other electrical machinery, appliances, 
 appurtenances or devices contained in main building described 
 under Item No. 1. 
 
 (4) $, . . .On the story building roof known 
 
 as building. 
 
 (5) $....0n the contents of building described above 
 
 under item No. 6, consisting chiefly of 
 
 (6) $ On the story building roof known 
 
 as building., 
 
 (7) $....On boilers, their settings and stacks, engines, boiler 
 feed and/or fire pumps, foundations, and connections, all while 
 contained in 
 
 (Attach usual clauses.) 
 
302 THE AGENTS KEY TO FIRE INSURANCE '] 
 
 i 
 
 STREET RAILWAY GENERAL SCHEDULE FORM ' 
 
 (Illustration) 
 
 i 
 
 This Policy for $ covers pro rata on each of the following j 
 
 items, aggregating $ to wit: 
 
 1. $33,970. On brick, metal-roof building, occupied as an elec- j 
 trie light and power station, situate 
 
 2. $80,415. On electrical machinery, and i 
 
 3. $156,940. On machinery other than electrical, all while con- [ 
 tained i" bnild'ng described under Item No. 1. i 
 
 4. $7,350. On brick and frame, metal-roof buildings, occupied | 
 principally as a storage battery room, and storehouse, situate ; 
 
 5. $27,250. On electrical machinery, and 1 
 
 6. $30,500. On machinery other than electrical, all while con- i 
 tained in buildings described under Item No. 4. i 
 
 7. $1,600. On wooden wharf. i 
 
 8. $1,095. On brick and frame, metal-roof building, occupied : 
 for storage and stable purposes, all situate I 
 
 9. $2,400. On contents, and on horses and mules (in case of loss ; 
 no one animal to be valued in excess of $200,00), vehicles of all ; 
 kinds, and parts of same, harness, robes, blankets, whips, and other i 
 horse and vehicle furnishings and equipments, stable furniture. 1 
 tools, implements, hay, grain, feed and straw, all while contained | 
 in buildings described under Item No, 8, 
 
 10. $47,160. On electrical machinery, and 
 
 11. $7,440. On machinery other than electrical, all while con- ' 
 tained in Station located ', 
 
 12. $42,765. On electrical machinery, all while contained in ! 
 Sub-station located ; 
 
 13. $12,420. On contents, all while contained in brick, metal- • 
 roof building, occupied principally as an office and storeroom, | 
 situate 1 
 
 14. $800. On corrugated iron and concrete building occupied 
 as a sub-station, situate 
 
 15. $5,400. On electrical machinery, all while contained in 
 building described under Item No. 14. 
 
 16. $14,000, On brick and corrugated iron, metal-roof building, 
 occupied as a repair shop, storeroom, and office, situate 
 
 17. $7,800. On contents, while contained in building described 
 under Item No. 16. 
 
 18. $20,000. On brick and mill construction roof buildings, be- 
 ing $10,000 on each section separated by fire wall, occupied as car 
 barn and shops, situate 
 
 19. $2,000. On brick and corrugated iron and metal-roof build- 
 ing occupied as barn and shops situate J" 
 
 20. $2,000. On corrugated iron building, occupied as a paint I 
 shop, situate ^ 
 
 n 
 
MISCELLANEOUS NON-MANUFACTURING 303 
 
 21. $50. On contents, while contained in building described 
 under Item No. 20. 
 
 22. $3,200. On corrugated iron, and metal-roof building, occu- 
 pied as a power station, situate 
 
 23. $4,000. On electrical machinery, and 
 
 24. $23,800. On machinery, other than electrical, all while con- 
 tained in building described under Item No. 22. 
 
 25. $1,750. On frame metal-roof building, occupied as a wait- 
 ing station, office, and dwelling, situate 
 
 26. $250. On contents, while contained in building described 
 under Item No. 25. 
 
 27. $800. On corrugated iron building, occupied as a car barn, 
 situate 
 
 28. $282,935. On cars, their own, or held by them, or belonging 
 to others for which they may be liable, while contained in any of 
 the above described buildings, or in any other buildings used for 
 the storage of cars, or adjacent thereto, or on tracks of roads owned 
 or operated by the assured or upon which the assured's cars may 
 be operated. 
 
 29. $25,000. On frame, metal and shingle-roof building, occu- 
 pied as a pavilion, cafe, and theatre, situate 
 
 30. $1,750. On contents, while contained in buildinur described 
 under Item No. 29. 
 
 31. $750. On water tank, including foundations, situate in rear 
 of building described under Item No. 29. 
 
 32. $250. On bandstand, situate in rear of building described 
 under Item No. 29. 
 
 33. $150. On frame building, occupied as a waiting room, and, 
 
 34. $50. On two frame buildings, occupied as car sheds, being 
 $25.00 on each, all situate 
 
 35. $210. On frame building, as a waiting room, situate 
 
 36. $50. On frame building, occupied as a waiting room, and 
 car shed, situate 
 
 37. $700. On frame shed, occupied as a pavilion, and, 
 
 38. $400. On frame building, occupied as a club-house and bar, 
 both situate 
 
 ^ 39. $400. On wooden poles, while contained in the vacant lot, 
 vituate 
 
 ^ 40. $150. On frame building, occupied as a waiting room, 
 situate 
 
 The terms, "Building," "Electrical Machinery," "Machinery other 
 than electrical,!' "Contents," and "Cars," and the specific sums in- 
 sured thereon in this policy shall cover and apply as follows: 
 
 Building: Buildings and additions thereto (excluding founda- 
 tions), stacks, tanks, scales, transfer and turn tables, coal con- 
 veyors, hoisting, heating, lighting and ventilating apparatus (ex- 
 cluding dynamos and engines), partitions, platforms, plumbing, 
 
304 THE AGENTS KEY TO FIRE INSURANCE ] 
 
 i 
 
 standpipes, hose, gas fixtures and fittings, wiring and lamps, signs, 
 awnings, and all fixtures and fittings attached to buildings. 
 
 Electrical Machinery: Dynamos, steam turbines, motors, ex- | 
 
 citers (excluding foundations), and duplicates and duplicate parts, : 
 
 storage batteries, transformers, converters, switches, and switch- ; 
 
 boards, switchboard apparatus, cables and all other electrical ap- ; 
 
 purtenances, appliances and connections, except supplies. i 
 
 Machinery, Other Than Electrical: Fixed and movable machines i 
 
 and machinery (excluding foundations), engines and their appurte- j 
 
 nances and attachments, boilers and settings, pumps, heaters, con- j 
 
 densers, meters and their connections, appurtenances and attach- i 
 
 ments, piping, valves, shafting, gearing, belting and all machines, ; 
 
 appurtenances, appliances, tools, implements, and utensils, office ! 
 
 furniture, and fittings, stationery and safes, and all electrical and i 
 non-electrical supplies, materials, and property not otherwise 
 insured used in its business. 
 
 Contents: Electrical machinery and machinery other than dec- i 
 trical as above defined. J 
 
 Cars: Motor cars, trailers and other cars, car bodies, trucks, I 
 motors, fare registers, headlights wiring and equipment of same, I 
 sweepers, salters, sprinklers, tower wagons, patrol wagons, and all 
 vehicles of every description and their appurtenances not specifi- 
 cally insured. j 
 
 It is hereby understood and agreed that this policy does not 
 attach on any property the title to which, in part or as a whole ■ 
 is not vested in this Company, if same is specifically insured in • 
 form different to the above, or on the said property until the specific : 
 insurance thereon is cancelled. 
 
 Other insurance permitted without notice until requested. 1 
 
 Permission granted for the use of the above described premises 
 for any purpose incidental to its business, for them to remain 
 vacant and unoccupied; to let them for purposes not more hazard- 
 ous; to make alterations, additions and repairs; to operate all 
 night; to cease operations as occasion or necessity may require but 
 not to exceed ninety (90) consecutive days; to keep and use such 
 articles and oils as may be deemed necessary or as may be inci- 
 dental to its business or that of its tenants, but not to exceed five 
 gallons of gasoline, benzine or naphtha in any building except the 
 oil house. ^] 
 
 Notice acknowledged that the Power Station insured un- J 
 
 der Items 1, 2 and 3 and the Power Station under Items - 
 
 22, 23 and 24 are not operated except in case of emergency, which ', 
 fact shall not prejudice this Insurance. ' 
 
 Notice is hereby accepted that $19,050 of electrical machinery in- , 
 
 sured under Item No. 12 of this policy is owned by the. 
 
 Company, and leased to the Company for operating pur- ; 
 
 poses, and loss, if any, under that portion of this item is payable i 
 
MISCELLANEOUS NON-MANUFACTURING 305 
 
 to the Trust Company, Trustee, Mortgagee, as its interest 
 
 may appear, subject to conditions of this policy. 
 
 This policy shall cover any direct loss or damage caused by 
 Lightning (meaning thereby the commonly accepted use of the 
 term "Lightning" and in no case to include loss or damage by 
 cyclone, tornado or windstorm), not exceeding the sum insured 
 nor the interest of the insured in the property, and subject in all 
 other respects to the terms and conditions of this policy, provided, 
 however, that if there shall be any other insurance on said property, 
 this Company shall be liable only pro rata with such other insur- 
 ance for any direct loss by Lightning, whether such other insurance 
 be against direct loss by Lightning or not; and provided further 
 that, if dynamos, wiring, lamps, motors, switches, or other electri- 
 cal appliances, or devices are insured by this policy, this Com- 
 pany shall not be liable for any loss or damage to such property 
 resulting from any electrical injury or disturbance, whether from 
 artificial or natural causes, unless fire ensues, and then for the 
 loss by fire only. 
 
 It is a part of the consideration of this policy, and the basis upon 
 which the rate of premium is fixed, that the assured shall main- 
 tain insurance on the property described under Items Nos. 1, 3, 4, 
 6, 7, 8, 9, 11, 13, 14, 16, 17, 18, 19, 20, 21, 22, 24, 25, 26 and 27 
 to the extent of eighty (80) per cent, of the actual cash value 
 thereof; and on property described under Items Nos. 2, 5, 10, 12, 
 15, 23 and 28 to the extent of the full cash value thereof, and 
 on property described under Items Nos. 29 to 40, inclusive, to the 
 extent of seventy-five (75) per cent, of the actual cash value 
 thereof; and failing so to do, the assured shall be an insurer to the 
 extent of such deficit, and in that event shall bear a proportion of 
 any loss. This clause shall apply to each of the Items above de- 
 scribed separately. 
 
 The failure of the Assured to comply with the conditions of this 
 policy under any item shall not prejudice their right to recover 
 a loss under any other item. 
 
 The validity of this policy shall not be questioned because of any 
 mortgage that is now in force or that may hereafter be effected 
 upon the property that is not endorsed hereon. 
 
 Loss, if any, payable to the Trust Company, Trustee, 
 
 Mortgagee, as its interest may appear, subject to conditions of this 
 policy. 
 
 AUTOMOBILE GARAGE FORM 
 
 (Industrial or Public) 
 
 (For Use on Either Fire or Tornado Policies) 
 
 {Uniformity West) 
 
 *1 $ On the story roof .building, in- 
 
 luding foundations, plumbing, electric wiring and stationary heat- 
 ig, lighting and ventilating apparatus and fixtures therein; also 
 
306 THE AGENTS KEY TO FIRE INSURANCE j 
 
 1 
 i 
 
 all permanent fixtures, stationary scales and elevators, belonging ! 
 
 to and constituting part of said building; occupied as a garage ' 
 
 and repair shop, situated 
 
 *2 $ On all fixed and movable machinery of every descrip- ; 
 
 tion incident to the business of a garage and repair shop; electrical j 
 
 apparatus, appliances and devices; hose and other fire extinguish- j 
 
 ing appliances; machinists' supplies and tools; garage and repair | 
 
 shop furniture and fixtures; signs and awnings (signs and awnings j 
 
 covered under fire policies only) ; office furniture, fixtures, printed ! 
 
 books and supplies; pictures, paintings and engravings, including • 
 
 their frames, all at not exceeding cost; counters, shelving, iron i 
 
 safe, typewriters and cash registers; all only while contained in, i 
 
 or attached to, the above described building. ; 
 
 *3 $....0n • 
 
 *4 $....0n ; 
 
 *No insurance attaches under any of the above items unless a ! 
 
 certain amount is specified and inserted in blank immediately ■ 
 
 preceding the item. i 
 
 Subject to the following conditions, permission is granted to j 
 
 manufacture, repair, store and sell automobiles in the building ! 
 
 described in this policy. 1 
 
 The conditions of this permit, in so far as they are within control j 
 
 of the assured, are as follows: i 
 
 1 — That no claim shall be made for loss or damage to an auto- i 
 
 mobile, any of its parts or equipment, unless such automobile, j 
 
 its parts or equipment, is specifically mentioned as insured under i 
 
 this policy. j 
 
 2 — That the gasoline supply tank shall be at least five (5) ; 
 
 feet from such building, unless it is buried in the ground at least j 
 
 two (2) feet below the level of the basement floor. All pipes for | 
 
 filling or ventilating the supply tank shall be outside the building, j 
 and piping shall be so laid as to drain toward the tank. 
 
 3 — That no cleaning of an automobile, or any parts thereof, j 
 shall be done by any gasoline spraying device; that there shall 
 
 be no gasoline kept within any building described in this policy, i 
 
 except that contained in the reservoirs of automobiles and measur- ; 
 
 ing pumps used for filling; provided, however, that there may | 
 
 be not exceeding one barrel in a portable tank equipped with a | 
 
 measuring pump, and also not exceeding one gallon for cleaning | 
 
 purposes; that the handling of gasoline or the opening, filling or . 
 
 emptying of any gasoline reservoir of an automobile while the \ 
 same is contained in the within described building shall be done 
 
 by daylight or incandescent electric light only. i 
 
 4 — ^That when acetylene gas is used for automobile lamps, it | 
 
 shall be contained in an airtight metal tank or generator, and not j 
 
 over one hundred (100) pounds of calcium carbide shall be kept ' 
 
MISCELLANEOUS NON-MANUFACTURING 307 
 
 in the within described building, the same to be contained in 
 watertight metal receptacles. 
 
 5 — The term "gasoline" shall be held to include naphtha, benzine 
 or any of the light products of petroleum, coal or tar, by whatever 
 name known. 
 
 Note: — The granting of the above permits does not waive any 
 schedule charge therefor. 
 
 (Attach usual clauses.) 
 
 BUILDING OCCUPIED AS PUBLIC AUTOMOBILE 
 REPOSITORIES AND GARAGES 
 
 {S. E. U. A.) 
 
 $ .... On the story building, with roof, in- 
 cluding foundations, partitions, and all permanent fixtures attached 
 thereto, while occupied as an automobile repository or garage, 
 situated No on the side of Street, in 
 
 $ On their fixed and movable machinery, including shafting, 
 
 belting, hangers, connections, tools, and all appurtenances and 
 appliances necessary to the proper conduct of a public Automobile 
 Garage and Repair Shop, only while contained in the above 
 described building. 
 
 $....On 
 
 This insurance is effected subject to the following conditions, 
 which are hereby made warranties by the assured, and are accepted 
 as part of this contract: 
 
 Total insurance permitted warranted concurrent herewith, in- 
 cluding this policy, as follows: 
 
 $ on Building; $ on Machinery; $ on 
 
 It is understood and agreed that no insurance in addition is 
 permitted to this policy unless the total insurance, including this 
 policy, is entered in paragraph above. 
 
 It is warranted by the assured that no smoking or artificial 
 light other than incandescent electric, or heat other than steam, 
 hot water or hot air, shall be permitted in the same room or 
 rooms adjoining and communicating with that in which the 
 machines are kept, and no repairs requiring the use of artificial 
 heat or open flame shall be made in the building. 
 
 It is further warranted by the assured that the cleaning of any 
 automobile or its parts with gasoline or other volatile oils shall not 
 be allowed in any building or buildings in which this policy 
 covers; that the automobile reservoirs for storage of gasoline or 
 other volatile oils shall be filled by daylight or incandescent 
 electric light only, and that at no time shall there be stored any 
 gasoline or other volatile oil in any such building where above 
 
308 THE AGENTS KEY TO FIRE INSURANCE ; 
 
 named machines are housed exceeding one gallon in the chamber! 
 of a measuring or similar pump, except that contained in thd 
 machine reservoirs, and that when more than ten gallons ofl 
 gasoline is kept outside of any such building it shall be under; 
 ground or thirty feet removed from insured property. However,, 
 the supply tank may be buried not less than two feet underneath^ 
 the basement floor, with all pipes for filling or ventilating carried; 
 outside the building. The term gasoline shall be held to includei 
 naphtha, benzine or any of the light products of petroleum byj 
 whatever name known. 
 (Attach usual clauses.) 
 
 PUBLIC GARAGE AND REPAIR SHOP FORM ' 
 
 $ On the story roof building, includ- 
 ing foundations, plumbing, electric wiring and stationary heating; 
 and lighting apparatus and fixtures; also all permanent fixtures,] 
 stationary scales and elevators, belonging to and constituting parti 
 of said building; occupied as a public garage and repair shop, 
 situated 
 
 $ On all fixed and movable machinery of every description^ 
 
 incident to the business of a garage and repair shop, including 
 electrical apparatus, appliances and devices; hose and other fire 
 extinguishing appliances; machinists' supplies and tools, and facq 
 tory furniture and fixtures; also on office furniture and fixtures an<J 
 supplies, counters and shelving, including iron safe, typewriter^ 
 and cash registers, all only while contained in the above describee^ 
 building. i 
 
 (Attach usual clauses.) 
 
 THEATRE FORM j 
 
 {Uniformity West) ' 
 
 (Including Moving Picture Theatres) 
 
 *1 $ On the story roof, building, in-i 
 
 eluding foundations, plumbing, and stationary heating, hoisting,! 
 lighting and ventilating apparatus and fixtures therein ; standpipes,! 
 outsi'de stairs and ladders; canopies, plate and stained glass; mir-l 
 rors, wall and ceiling frescoing and decorations; boilers, engines,; 
 and electrical apparatus with all their connections and appurte-: 
 nances; fixed seatings, fire curtains, galleries, chandeliers, ga^ 
 fixtures, and all permanent fixtures (excluding organ with operating 
 motor) belonging to and constituting a part of said building;^ 
 occupied in whole or in part as a theatre, situated ' 
 
 This insurance shall also cover under this item, if the property^ 
 of owner of building, door and window screens and storm doorsfc 
 and windows, belonging to above described building, while at-j 
 tached thereto or stored therein. * 
 
 *2 $ On furniture and fixtures (excluding moving picture; 
 
 machines and attachments), useful and ornamental, includia 
 
lb 
 
 MISCELLANEOUS NON-MANUFACTURING 309 ' 
 
 I 
 wings, flats, flies, scenes, set pieces, canvas, upholstery, drop 1 
 curtains; mirrors, pictures, paintings, engravings, including their ! 
 frames, statuary and sculpture, all at not exceeding cost; pianos \ 
 and other musical instruments (excluding organ with operating j 
 motor); carpenters' and mechanics' work; hose, fire extinguishers 1 
 and fire apparatus; implements and tools; signs and awnings J 
 (signs and awnings covered under fire policies only) ; dressing ; 
 room furniture and fixtures; booths; phonographs, graphophones, j 
 records, printed books, music and music rolls; floor coverings and ; 
 all other furniture and fixtures; all not belonging to and con- • 
 stituting a permanent part of the building and only while contained i 
 in, or attached to, the above described building. j 
 
 *3 $....0n organ with operating motor, only while contained in j 
 the above described building. ■ 
 
 *4 $....0n assured's interest in improvements to the building, ' 
 
 consisting chiefly of , all only while contained in, or j 
 
 attached to, the above described building. ; 
 
 *5 $ On moving picture machines and attachments, only I 
 
 while contained in the above described building. j 
 
 *6 $....0n ! 
 
 *No insurance attaches under any of the above items unless a t 
 certain amount is specified and inserted in blank immediately ; 
 preceding the item. > 
 
 This policy does not cover on moving picture films (unless 1 
 specified herein), whether in or out of booth. j 
 
 This policy does not cover any loss or damage to the booth, j 
 
 moving picture machines therein and/or other contents therein, i 
 
 caused by fire originating within the booth itself. \ 
 
 (Attach O. I. P., Mechanics, Work and Materials, Lightning j 
 
 and Electrical Clauses.) . 
 
 MOVING PICTURE THEATRE BUILDING AND ! 
 FURNITURE AND FIXTURES FORM 
 
 Moving Picture Theatre, located at j 
 
 This policy covers $ being pro rata of total insurance. 
 
 $ On the story roof building and its additions] 
 
 adjoining and communicating, occupied as j 
 
 $ On Moving Picture Theatre Furniture and Fixtures, in- 
 cluding picture machines and appurtenances thereto (except films),! 
 all while contained in the above described building. . 
 
 In no event shall this policy be construed to cover on films, nor I 
 will this Company be liable for any loss or damage that may occur; 
 to the contents of the picture machine booth from fire originating! 
 therein and will be liable only for such loss or damage as mayj 
 occur to contents of said booth other than films as may result from! 
 fire originating at some point outside of the booth itself. j 
 
 Permission is hereby given to use electricity on the premises] 
 
310 THE AGENTS KEY TO FIRE INSURANCE 
 
 herein described for light or power provided the entire installa- 
 tion, including lamps, motors and rheostats, conforms to the re- 
 quirements of the National Electrical Code (Dynamo Clause.) 
 
 TOBACCO PACK BARNS AND TOBACCO IN PACK 
 BARNS {S. E. U. A.) 
 
 $ On the story, frame, roof building, used by 
 
 as a tobacco pack barn for the storage and handling of 
 
 cured leaf tobacco only; situate on farm on the 
 
 side of the Road miles from , in 
 
 County, 
 
 $ On cured leaf tobacco only, while contained in the above 
 
 described pack barn. 
 
 In Event of Any Claim Under This Policy: 
 
 1. The crop yield shall be computed at not exceeding 
 
 pounds per acre under tobacco cultivation on farm described above 
 during the year in which this policy is issued, and in case of other 
 insurance, whether valid or invalid, the liability of this company, 
 
 if any, shall be based pro rata on not exceeding pounds 
 
 per acre. The acreage under tobacco cultivation shall be de- 
 termined — in case it shall be necessary — by a competent and disin- 
 terested surveyor mutually agreed upon by the assured and this 
 company, and the return of said acreage shall be under affidavit 
 of the surveyor so agreed upon. One-half the expenses of any 
 survey shall be borne by each party to this contract. 
 
 2. The assured shall submit a complete record of all tobacco 
 removed from the building above described during the tobacco 
 season in which this policy is issued. 
 
 3. The cash value of the leaf tobacco, covered by this policy, 
 shall be computed at not more than the average price obtained on 
 sales of leaf tobacco in public sales warehouses nearest to the 
 agency issuing this policy, said sales to embrace a period of one 
 week prior to date of fire, as per authentic official records of 
 such warehouses; said average price to be found by dividing the 
 total quantity sold during the period specified into the total price 
 obtained during said period. 
 
 In Consideration of the Reduced Rate at Which This Policy is 
 Issued, it is Warranted by the Assured: 
 
 (a) That no curing of tobacco by artificial heat will be done in 
 the building above described or in any other building within 100 
 feet thereof. 
 
 (b) Brick-on-Edge, Tile, Cement or Metal Flue Warranty — 
 That the building and additions thereto described in this policy 
 contains no brick-on-edge, tile, cement or metal flue, and, further, 
 that no such flue shall be erected during the term of this policy. 
 
 (c) That only closed lanterns shall be used for lights. 
 (Attach Noon, % Value, and Lightning clauses, and limit of 
 
 Additional Insurance.) 
 
DIVISION X 
 FIRE POLICIES ON VESSEL PROPERTY 
 
 A very considerable amount of fire insurance as dis- 
 tinguished from marine insurance is carried on floating 
 craft of various kinds in inland waters. Fire insurance on 
 vessels is an offshoot of marine insurance, and so in some 
 of its conditions and methods of handling it varies from 
 fire insurance on buildings and their contents. 
 
 Marine insurance on vessels is based on an agreed valua- 
 tion for the reason that the hulls of vessels and their cargoes 
 have not a stable value as is the case of buildings and their 
 contents, nor have they the same value in all markets. For 
 that reason a value is fixed in advance and stipulated in the 
 policy, and the settlement of all losses is based on the agreed 
 valuation. 
 
 There is also the feature of general average involved in 
 the insurance of vessels which does not come into play in 
 fire insurance on shore. The principle of general average is 
 of great antiquity and, expressed simply, means that what 
 is given for the good of all shall be made good by the con- 
 tribution of all, e. g., if a vessel is in danger and part of 
 her cargo thrown overboard to lighten her, or if she is on 
 fire and part of the cargo and hull is damaged by water in 
 extinguishing the flames the voluntary damage and sacrifices 
 to save the rest of the venture are made good by a contribu- 
 tion from all the interests benefited thereby, which usually 
 are hull, cargo and the freight money at risk. Salvage 
 charges are dealt with in the same way, being apportioned 
 over the interests benefited. 
 
 Fire insurance on vessels, being a development of marine 
 insurance, follows marine practice as regards these two 
 features, viz., agreed valuation and general average and 
 salvage charges, and they are expressed by special clauses 
 in the fire policy on floating craft. 
 
 This class of insurance is written under special forms at- 
 tached to the regular fire policy; and containing various 
 clauses as follows: 
 
 The Lightning Clause and the Dynamo Clause are usually 
 attached, the following forms being in common use: 
 
 311 
 
312 THE AGENTS KEY TO FIRE INSURANCE 
 
 LIGHTNING CLAUSE 
 
 This policy shall cover any direct loss or damage caused 
 by lightning (meaning thereby the commonly accepted use 
 of the term lightning, and in no case to include loss or dam- 
 age by cyclone, tornado, or wind-storm), not exceeding the 
 sum insured nor the interest of the insured in the property, 
 and subject in all other respects to the terms and conditions 
 of this policy. Provided, however, that if there shall be any 
 other insurance on said property, this company shall be liable 
 only pro rata with such other insurance for any direct loss 
 by lightning, whether such other insurance be against direct 
 loss by lightning or not. 
 
 DYNAMO CLAUSE 
 
 This insurance shall not cover any loss or damage to 
 dynamos, exciters, lamps, motors, switches, or any other ap- 
 paratus for generating, utilizing, testing, regulating, or dis- 
 tributing electricity, caused by electric current, whether arti- 
 ficial or natural. 
 
 The Vessel Fire Registry maintains inspectors at the 
 principal ports on the Great Lakes for the purpose of in- 
 specting all vessels applying for registration 
 Vessel Fire to see that the rules and requirements 
 Registry necessary to make them eligible are complied 
 
 with and observed. 
 
 THE VESSEL FIRE REGISTER WARRANTY 
 
 This is required on policies covering cargo carriers on the 
 Great Lakes, except steel hulls, and reads as follows: 
 
 **In consideration of the premium for which this policy 
 is issued, it is expressly warranted by the assured that the 
 rules and requirements of The Vessel Fire Register are and 
 shall be complied with and observed, and that its certificate 
 has been obtained, and it is understood and agreed between 
 the assured and this Company that the violation of said war- 
 ranty shall render this entire policy void. ' ' 
 
 GENERAL AVERAGE AND SALVAGE CLAUSE 
 
 *'It is understood and agreed that this policy also covers 
 salvage claims and general average charges when caused by 
 or arising from fire and for which the vessel insured here- 
 under shall be legally liable; but in no case shall the aggre- 
 gate amount to be paid under this policy for loss and/or 
 damage and/or expenses of every nature exceed the amount 
 insured hereunder.'^ 
 
VESSEL PROPERTY 313 
 
 The Electricity Clause is used where required, the form 
 differing in the various parts of the country. 
 
 Some form of Coinsurance or Percentage Value Clause is 
 usually attached unless the Valuation Clause is used. 
 
 In Northern Waters pleasure boats are required to bear 
 the following clause : 
 
 ** Warranted laid up and out of commission between 
 
 November 15th and March 15th.'' 
 
 The following forms illustrate those in use for insuring 
 the various classes of vessel property: 
 
 FIRE POLICY ON VESSELS 
 
 (Used for insuring Lighters, Barges, Car Ferries, Pile Drivers, 
 Tow Boats; also on Tug Boats.) 
 
 Loss, if any, payable to On the covering the hull, 
 
 engines, boilers, machinery, tackle, apparel, boats, furniture, fix- 
 tures, appurtenances, equipments, stores, and supplies while on 
 board. 
 
 This policy to cover said vessel only while on and 
 
 waters tributary thereto. 
 
 If at the time of fire the whole amount of insurance on the prop- 
 erty covered by this policy shall be less than eighty (80) per cent, 
 of the actual cash value thereof, this company shall, in case of 
 loss or damage, be liable for only such portion of such loss or 
 damage as the amount insured by this policy shall bear to the 
 said eighty (80) per cent, of the actual cash value of such property. 
 
 If the policy be divided into two or more items, these conditions 
 shall apply to each item separately. 
 
 Privilege to fit out, to do painting, to go on dry dock, to make 
 ordinary alterations and repairs, and to lay up, to use oil or elec- 
 tricity for lights, and to carry such passengers, freight and 
 merchandise as it is permitted by law. 
 
 Warranted by the assured that the vessel shall be equipped and 
 navigated according to Law, that no open lights shall be used 
 on board except customary torches in engine and boiler rooms, 
 signal lights and candles when trimming cargo, that coal only shall 
 be used as fuel, except when kindling fires, without special per- 
 mission from this company, and that when the vessel is laid up it 
 shall be moored free from specially hazardous exposure. 
 
 (Attach Lightning and Dynamo Clauses.) 
 
 The foregoing form is made a valued one by substituting the 
 following clause for the Coinsurance Clause: 
 
 It is understood and agreed between the assured and this Com- 
 pany that the value of the property insured hereunder for the 
 
314 THE AGENTS KEY TO FIRE INSURANCE 
 
 purposes of this insurance is $, and this Company shall not 
 
 be liable for a greater proportion of any agreed amount of loss or 
 damage than the amount of this policy bears to the above ex- 
 pressed valuation. Warranted by the assured that the total amount 
 of insurance against fire on this property insured hereunder shall 
 
 not exceed $ and permission is herewith given to carry 
 
 that amount, including this policy. 
 
 FIRE POLICY ON DREDGES. CONTRACTOR'S 
 PLANT. ETC. 
 
 Loss, if any, payable to On the covering the hull, 
 
 engines, boilers, machinery, tools, tackle, apparel, boats, furniture, 
 fixtures, appurtenances, equipments, stores, and supplies, while on 
 board. 
 
 This policy to cover said vessel only while on and waters 
 
 tributary thereto. 
 
 If at the time of fire the whole amount of insurance on the prop- 
 erty covered by this policy shall be less than eighty (80) per cent, 
 of the actual cash value thereof, this company shall, in case of loss 
 or damage, be liable for only such portion of such loss or damage 
 as the amount insured by this policy shall bear to the said eighty 
 (80) per cent, of the actual cash value of such property. 
 
 If the policy be divided into two or more items, these conditions 
 shall apply to each item separately. 
 
 Privilege to do all work customary for vessels of its kind and 
 trade, to fit out, to do painting, to go on dry dock, to make ordinary 
 alterations and repairs, to lay up, to use kerosene and electricity for 
 lights, and lubricating oils for machinery. 
 
 Warranted by the assured that no open lights shall be used on 
 board except customary torches in engine and boiler rooms; that 
 coal only shall be used as fuel, except when kindling fires, without 
 special permission from this company; and that when vessel is laid 
 up it shall be moored free from specially hazardous exposure. 
 
 (Attach Lightning and Dynamo Clause.) 
 
 The foregoing form is made a valued one by substituting the fol- 
 lowing clause for the Coinsurance Clause: 
 
 It is understood and agreed between the assured and this com- 
 pany that the value of the property insured hereunder for the pur- 
 poses of this insurance is $ and this company shall not be liable 
 
 for a greater proportion of anv agreed amount of loss or damage 
 than the amount of this policy bears to the above expressed valua- 
 tion. Warranted by the assured that the total amount of insurance 
 against fire on this property insured hereunder shall not exceed 
 $ and permission is herewith given to carry that amount, includ- 
 ing this policy. < 
 
VESSEL PROPERTY 315 
 
 FIRE POLICY ON VESSELS 
 (Used for insuring Cargo Carriers on Great Lakes) 
 
 Loss, if any, payable to On the covering the hull, 
 
 engines, boilers, machinery, tackle, apparel, boats, furniture, fixtures, 
 appurtenances, equipments, stores, and supplies, while on board. 
 
 This policy to cover said vessel only while on and waters 
 
 tributary thereto, against all direct loss or damage by fire. This 
 company shall not be liable for a greater proportion of any agreed 
 or proven amount of loss or damage with proper deduction for de- 
 preciation, however caused, than the amount of this policy bears to 
 
 $ Warranted by the assured that the total amount of insurance 
 
 against fire on the property insured hereunder shall not exceed 
 $ and permission is herewith given to carry that amount, includ- 
 ing this policy. 
 
 In event of loss or damage to the subject of insurance by collision, 
 stranding, leakage, or other peril or causes not covered by this 
 policy, followed by or with which fire is concurrent, then in settle- 
 ment of said loss by fire, whether the claim be for partial or total 
 loss, this company shall be liable only for the like proportion after 
 deducting the amount of damage so caused by the previous or con- 
 current cause, and further provided that in no event shall this com- 
 pany be responsible for any part of the expense of taking said vessel 
 to a port or place of repair unless the necessity therefor arises 
 solely from fire, and then only when the cost of such removal has 
 been approved by the representative of this company. 
 
 And it is further agreed, in event of total loss, that on payment 
 the insured will, on request, transfer to this company, or as it may 
 direct, the said vessel and all appertaining thereto, so far as covered 
 by this policy, in the proportion which the sum paid hereunder bears 
 to the total amount paid. 
 
 Privilege to fit out, to do painting, to go on dry dock, to make 
 ordinary alterations and repairs, and to lay up, to use oil or elec- 
 tricity for lights, and to carry such passengers, freight, and mer- 
 chandise as it is permitted by law. 
 
 Warranted by the assured that the vessel shall be equipped, 
 manned, and navigated according to law ; that no open lights shall 
 be used on board except customary torches in engine and boiler 
 rooms, signal lights, and candles when trimming cargo; that coal 
 only shall be used as fuel, except when kindling fires, without 
 special permission from this company; and that when the vessel 
 is laid up it shall be moored free from specially hazardous ex- 
 posure. 
 
 General Average and Salvage Clause. — It is understood and 
 agreed that this policy also covers salvage claims and general 
 
 \ average charges when caused by or arising from fire and for which 
 the vessel insured hereunder shall be legally liable, in proportion 
 as the amount insured hereunder bears to the valuation expressed 
 
 ' herein. 
 
316 THE AGENTS KEY TO FIRE INSURANCE | 
 
 J 
 
 Total Limit of Liability Clause. — In no case shall the aggre-i 
 gate amount to be paid under this policy for fire and water or 
 other loss, damage, and/or expenses caused by or arising from fire„ 
 general average, salvage, and/or removal to port of repair, and all! 
 other claims and expenses, exceed the amount insured under thisj 
 policy. I 
 
 Chicago Standard Time Clause. — Wherever in this policy any' 
 mention is made of any hour of the day or night, the same shallj 
 refer to Chicago (or Central) Standard Time. ; 
 
 (Attach Lightning and Dynamo Clauses.) ; 
 
 GASOLINE FORM | 
 
 (Used for insuring Commercial Boats — Gasoline for Power) j 
 
 Loss, if any, payable to On the gasoline boat cov-^ 
 
 ering the hull, motors, machinery, tackle, apparel, boats, furniturej 
 fixtures, appurtenances, equipment, stores, and supplies while odl 
 board. ■ 
 
 Warranted by the assured that this vessel be confined to ^ 
 
 Privilege to haul out and to go out of commission; to go on drjr 
 dock and ways; to make ordinary alterations and repairs; to use 
 kerosene, alcohol, and electricity. 
 
 Permission to have on board guns and ammunition for saluting 
 and sporting purposes. 
 
 Permission is hereby granted to use gasoline or naphtha foi^ 
 generating power only, and to carry same in proper tanks; irt 
 consideration for which the assured agree to use due diligence m 
 maintaining free from leak at all times, the tanks, piping, valves; 
 carburetor, and all other parts of the installation, and when the 
 boat is laid up and out of commission, to remove all gasoline oij 
 naphtha from the boat. '■ 
 
 Privilege to do all work incidental to its trade. \ 
 
 Warranted by the assured that the vessel be equipped and navi* 
 gated according to law. 
 
 (Attach Lightning and Dynamo Clauses.) 
 
 GASOLINE YACHT FORM 
 
 (Used for insuring Pleasure Boats — Gasoline Power) 
 
 On the covering the hull, motors, machinery, bal-l 
 
 last, spars, sails, rigging, blocks, boats, charts, furniture, fittings,S 
 fixtures, bedding, cushions, linen, silver and plated ware, crockery,! 
 glassware, cooking utensils, provisions and supplies of every de-! 
 scription, flags, nautical instruments, and all appurtenances, whilri 
 on board. 
 
 Warranted by the assured that this yacht be confined to 
 
 Privilege to haul out and to go out of commission; to go on dry] 
 
VESSEL PROPERTY 317 
 
 dock and ways; to make ordinary alterations and repairs; to use 
 kerosene, alcohol, and electricity. 
 
 Permission to have on board guns ar.d ammunition for saluting 
 and sporting purposes. 
 
 Permission is hereby granted to use gasoline or naphtha for gen- 
 erating power only, and to carry same in proper tanks; in con- 
 sideration for which the assured agree to use due diligence in 
 maintaining free from leak at all times, the tanks, piping, valves, 
 carburetor, and all other parts of the installation, and when the 
 boat is laid up and out of commission, to remove all gasoline or 
 naphtha from the boat. 
 
 Warranted to be used solely for private pleasure purposes, not 
 to be hired or chartered unless approved and permission endorsed 
 hereon. 
 
 It is understood and agreed that not exceeding ten per cent. 
 (10%) of this insurance shall apply on movables belonging to this 
 vessel while stored ashore, and when so applying the same amount 
 shall cease to cover on board. 
 
 (Attach Lightning and Dynamo Clauses.) 
 
 Note: — In Northern waters the following clause required: "War- 
 ranted laid up and out of commission between Nov. 15th and 
 March 15th." 
 
 YACHT FORM 
 
 {No Poiver) 
 (Used for insuring Sail Boats, either Pleasure or Commercial) 
 
 Loss, if any, payable to On the covering the hull, 
 
 ballast, spars, sails, rigging, blocks, boats, charts, furniture, fittings, 
 fixtures, bedding, cushions, linen, silver and plated ware, crockery, 
 glassware, cooking utensils, provisions, and supplies of every de- 
 scription, flags, nautical instruments, and all appurtenances, while 
 on board. 
 
 This policy to cover only while on and waters tributary 
 
 thereto. 
 
 Privilege to lay up either afloat or ashore, to haul out, to go 
 on dry dock, to make ordinary alteratiops and repairs, to use 
 kerosene, for lights, and to carry gunpowder (not exceeding ten 
 pounds) in tin cans for sporting and saluting. 
 
 If at the time of fire the whole amount of insurance on the prop- 
 erty covered by this policy shall be less than eighty (80) per cent, 
 of the actual cash value thereof, this company shall, in case of loss 
 or damage, be liable for only such portion of such loss or damage 
 as the amount insured by this policy shall bear to the said eighty 
 (80) per cent, of the actual cash value of such property. 
 
 If the policy be divided into two or more items, these conditions 
 shall apply to each item separately. 
 
318 THE AGENTS KEY TO FIRE INSURANCE 
 
 It is further understood and agreed that $ or per cent, of 
 
 this insurance shall apply on movables belonging to this vessel 
 while stored ashore at the place where said vessel is laid up, and 
 when so applying shall cease to cover on board. 
 
 (Attach Lightning and Dynamo Clauses.) 
 
 LAUNCH OR YACHT FORM 
 
 (Private) 
 {Uniformity fVest) 
 
 *1 $ On the roof boat house, situated. 
 
 State of 
 
 *2 $ On the power named (to be used 
 
 exclusively as a private pleasure boat), her hull, and upper works; 
 boilers, engines, motors, machinery; ballast, spars, sails, rigging, 
 blocks, flags; furniture, fittings, fixtures; bedding, cushions, linen; 
 silver and plated ware, crockery, glassware; cooking utensils, pro- 
 visions and supplies; wearing apparel, watches and jewelry in 
 use; charts and nautical instruments, and all other appurtenances; 
 all while on board said vessel, while contained in the above de- 
 scribed boat house or while navigating the waters of all 
 
 inclusive, also all inland waters tributary to above named waters 
 and while laying up or stopping at any place within the abov£ 
 described limits. Any deviation beyond the limits named herein 
 shall render this policy void only during the time the vessel is 
 outside the said limits, and upon the safe return of the vessel 
 within said limits this policy shall re-attach in full force and effect. 
 
 *No insurance attaches under any of the above items unless a 
 certain amount is specified and inserted in blank immediately pre- 
 ceding the item. 
 
 Privilege to lay up either afloat or ashore; to haul out; to go 
 
 into dry dock and on ways; to use kerosene or coal stove. 
 
 The use of naphtha, gasoline or benzine on board said vessel 
 for any purpose other than propulsion is prohibited under this 
 policy. 
 
 There shall be no naphtha, gasoline or benzine on board said 
 vessel, either when laid up and out of Commission or when stored 
 in the above described boat house. 
 
 (Attach Permit to keep gasoline in boat house, and Lightning 
 Clause.) 
 
VESSEL PROPERTY 319 
 
 CARGO FORM 
 
 Loss if any, payable to on cargo of owned, or 
 
 held in trust by the assured, or on commission, or in joint account 
 with others, or sold but not removed, for which the assured may 
 be liable, while contained on board the 
 
 This policy covers only while vessel is on 
 
 Coinsurance Clause 
 If at the time of fire the whole amount of insurance on the 
 
 property covered by this policy shall be less than per cent. 
 
 of the actual cash value thereof, this company shall, in case of 
 loss or damage, be liable for only such portion of such loss or 
 damage as the amount insured by this policy shall bear to the 
 said per cent, of the actual cash value of such property. 
 
 If the policy be divided into two or more items, these conditions 
 shall apply to each item separately. 
 
 (Attach Lightning and Dynamo Clauses.) 
 
DIVISION XI ^ 
 
 MARINE INSURANCE 5 
 
 Marine insurance is said to have originated with the Greeks | 
 
 and has accumulated a wealth of customs, traditions and | 
 
 terminology that is bewildering to those not familiar there- 1 
 
 with. i 
 
 There is perhaps no branch of the insurance business in 
 which it is so necessary to have technical knowledge, training 
 and experience. This is especially true be- 
 
 Experience cause there are few standards agreed upon and j 
 
 Necessary observed by all marine underwriters and be- ' 
 
 cause most rates are not fixed either by I 
 
 schedule or by agreement. In other words, marine insur- ] 
 
 ance is a free market and each line placed is largely a matter ; 
 
 of individual negotiation. An attempt to cover even the j 
 
 barest outline in a short statement would be futile, but it j 
 
 may prove helpful to give a few features to be cared for in j 
 
 placing such business. | 
 
 There are three general classes of marine insurance — j 
 namely, cargo, hulls and freights. There are two forms of J 
 
 cargo insurance commonly used in this country I 
 Export known as *' export '^ policies and *' import" i 
 
 Policies policies. In placing export policies care should 1 
 
 be exercised that the ownership is properly j 
 described, that the policy states to whom loss is payable, what 
 interest is insured, whether goods are shipped under or 
 on deck, if insured with average or subject to fpa English 
 conditions and whether risk of breakage, leakage, or of 
 theft and pilferage are to be covered; also loss or damage 
 by sweat, steam of hold or fresh water damage ahd/or by 
 coming in contact with other cargo; also whether from 
 original point of shipment through to the final point of 
 destination or from and to some intermediate points. If 
 there are any transhipments by rail, water or coastwise 
 steamers, this should be plainly indicated. The valuation 
 should be expressed at the selling price, plus a given per- 
 centage, for profits, or increased value, are intended to be 
 covered in cargo insurance policies. If freight is prepaid 
 the same should be noted in the valuation, or if shipment is : 
 made under a bill of lading freight guaranteed, vessel lost or i 
 not lost, this should also be indicated. The policy should l 
 
 320 j 
 
MARINE INSURANCE 321 
 
 so state if it covers freight payable at destination and custom 
 duties assessible on the goods, for in adjusting a partial loss 
 tlie insured would be uninsured for the portion of the loss 
 falling on these interests if they were not specifically covered. 
 
 If there is an additional risk while goods are being held 
 at destination in the Custom House, this should be protected 
 as under the warehouse to warehouse clause this feature 
 would not be covered. Where open policies are written the 
 largest expected amount on any one shipment on any one 
 steamer should be stated for that is the limit for which the 
 company is liable in any one disaster. 
 
 On import policies the same features should be cared 
 for as on export shipments, except that on shipments arriving 
 from foreign countries the invoices are usually 
 Import made out in foreign currencies and it is best to 
 
 Policies have a fixed value given to the pound, franc, 
 
 mark or other currency in which the value is 
 stated. 
 
 Open policies are issued to importers for the purpose of 
 giving them general insurance protection for goods which 
 may be shipped to them, or for which they 
 Open may be liable, although they have had no 
 
 Policies previous advices; also for goods shipped by 
 
 steamer, name of which is unknown. The in- 
 sured is, however, under obligation to notify the company 
 whenever he knows of shipments that are to be made or the 
 method of shipment, and in the case of goods shipped 
 under letter of credit to give the name and number thereof. 
 In covering freight interests it is customary to use the 
 expression ''valued at the amount of charter 
 Freight party or at amount of freight list" and policy 
 
 Interests should otherwise give the nature of the cargo 
 
 and whether shipped on or under deck. 
 There are various forms of policies for insuring hulls, 
 the ones most commonly used in this country being known 
 as the American Hull Form for steel steamers 
 HnU navigating ocean waters; the Boston Schooner 
 
 Policies Form for sailing vessels and the Yacht Form 
 
 for pleasure craft. The principal caution ex- 
 ercised in writing this class of business is to see that the 
 ownership is properly expressed, any mortgage interest noted, 
 valuation definitely stated and the waters in which vessel 
 expects to navigate duly described. 
 
DIVISION XII 
 
 COTTON AND COTTON SEED 
 
 Cotton, the great staple of the Southern States, is insured 
 as such in various stages from the time it is picked until 
 it reaches the machines to be made into cloth or other 
 articles. When first picked it is weighed in at the field 
 cotton houses or sheds and then taken to the gin house, 
 being known as seed cotton up to the time it is ginned, since 
 it contains the seed. 
 
 The forms given hereafter are to illustrate the wording 
 of the various covers on cotton, gins and cotton seed oil 
 mills and are arranged about in the order in which cotton 
 is handled and insured. The various forms contain ref- 
 erences to certain clauses in use and these are printed sepa- 
 rately to avoid repetition. Each form shows which clauses 
 are customarily attached. 
 
 The first insurance placed is to cover the cotton during 
 the interval between the time it is picked and the time it is 
 put in the gin house, this being customary on the larger 
 plantations. 
 
 There are other forms prescribed in certain States, .but 
 those given are typical of the ones in common use. 
 
 Loss Payable (S. E. U. A.) — The property covered by this 
 policy may be pledged without notice as collateral security 
 for loans or advances, but loss, if any, under this policy 
 shall be adjusted with the assured, and is payable only to 
 the assured, or their order, endorsed on or attached to this 
 policy," subject, however, to all the conditions of this policy. 
 
 Loss Payable Clause (Louisiana) — It is agreed that any 
 loss or damage ascertained to be due to the assured under 
 this policy shall be payable to assured 's order, but this 
 insurance shall be void if such order be made (without 
 written consent of this company) for other than collateral 
 purposes. 
 
 Cotton Co-Insurance Clause (S. E. U. A.) — It is a part 
 of the consideration of this policy, and the basis upon 
 which the rate of premium is fixed, that the assured shall 
 
 322 
 
COTTON AND COTTON SEED 323 
 
 at all times maintain insurance on each item of property- 
 insured by this policy of not less than the actual cash value 
 thereof, and that, failing so to do, the assured shall be an 
 insurer to the extent of such deficit, and in that event shall 
 bear his, her or their proportion of any loss. 
 
 Cotton Co-Insurance Clause (Louisiana) — *^It is under- 
 stood and agreed that the assured shall at all times maintain 
 insurance on the property insured by this policy, and on 
 each item of the same, equal to the actual cash value thereof 
 and that failing so to do, the assured shall be an insurer 
 to the extent of such deficit and in that event shall bear 
 his, her or their proportion of any loss on such property; 
 and this Company shall be liable for not exceeding such 
 proportion of loss or damage as the amount insured by this 
 policy shall bear to the actual cash value of such property 
 at the time of the fire, in all localities covered by this policy. 
 
 **It is further understood and agreed that if this policy 
 covers at more than one place or location (and within the 
 meaning of this clause each warehouse, yard or platform 
 is understood to be a separate location), then the whole 
 amount of insurance named herein shall be distributed and 
 apply in each location as the value of the property insured 
 in each location bears to the total value of the property 
 insured in all localities. '' 
 
 Reduced Rate Contribution Clause (Oklahoma) — In con- 
 sideration of the rate at (and) or form under which this 
 Policy is written, it is expressly stipulated and made a 
 condition of this contract, that this Company shall be held 
 liable for no greater proportion of any loss than the amount 
 hereby insured bears to the actual cash value of the property 
 described herein at the time when such loss shall happen; 
 but if the total insurance upon such property exceeds the 
 actual cash value at the time of such loss, then this com- 
 pany shall only be liable for the proportion which the sum 
 hereby insured bears to such total insurance. 
 
 If this Policy be divided into two or more items the fore- 
 going conditions shall apply to each item separately. 
 
 Co-Insurance Clause (Arkansas) — It is understood and 
 agreed that the assured shall at all times maintain insurance 
 on the property insured by this policy equal to the actual 
 cash value thereof and that failing so to do, the assured 
 shall be an insurer to the extent of such deficit and in that 
 
324: THE AGENTS KEY TO FIRE INSURANCE 
 
 event shall bear his, her or their proportion of any loss on 
 such property; and this Company shall be liable for not 
 exceeding such proportion of the loss or damage as the 
 amount insured by this policy shall bear to the actual cash 
 value of such property at the time of fire, in all localities 
 covered by this policy. 
 
 It is further understood and agreed that if this policy 
 covers at more than one place or location (and within the 
 meaning of this clause each warehouse, yard or platform is 
 understood to be a separate location), then the whole amount 
 of insurance named herein shall be distributed and apply in 
 each location as the value of the property insured in each 
 location bears to the total value of the property insured in 
 all locations. 
 
 Co-Insurance Contract (Tennessee) — In consideration of 
 the rate at ^nd (or) form under which this policy is written, 
 it is expressly stipulated and made a condition of this con- 
 tract, that the assured shall at all times maintain insurance 
 on each item of property insured by this policy to the extent 
 of at least one hundred per cent (100%) of the actual cash 
 value thereof, and that failing to do so, the insured shall be a 
 co-insurer to the extent of such deficit, and in that event 
 shall bear his, her or their proportion of any loss. 
 
 One Hundred Feet Clear Space Clause (S. E. U. A.) — 
 
 Warranted by assured that a clear space of not less than 
 100 feet will at all times be maintained between cotton in- 
 sured hereunder and any Gin House or other special hazard. 
 
 A bale of cotton often has several changes of ownership 
 without change of location. Law and custom differ as to 
 what constitutes delivery in such cases, hence the use of 
 Ownership Clauses. 
 
 Ownership Clause (Oklahoma) — It is a condition of this 
 insurance, that only actual payment by cash, check or other- 
 wise, together with the passing of a written delivery order, 
 and a transfer to purchaser named on books to be kept for 
 that purpose by the management of the gin, compress, ware- 
 house or yard where said cotton is stored, shall constitute 
 delivery of cotton purchased from seller to buyer; and that 
 tickets, checks or receipts for cotton deliverable to bearer 
 shall not be considered full evidence of ownership, but must 
 be verified by written delivery order and transfer on books 
 as hereinbefore provided. 
 
COTTON AND COTTON SEED 325 
 
 Ownership Clause (Arkansas) — It is understood and agreed 
 to be a condition of this insurance, that only actual payment 
 by cash, check or otherwise, together with the passing of a 
 written delivery order and a transfer to purchaser named 
 on books to be kept for that purpose by the management 
 of the compress, warehouse or yard where said cotton is 
 stored, shall constitute delivery of cotton purchased from 
 seller to buyer; and it is further agreed that tickets, checks 
 or receipts for cotton deliverable to bearer shall not be 
 considered full evidence of ownership, but must be verified 
 by written delivery ordered and transfer on books as herein- 
 before provided. 
 
 Ownership Clause (Tennessee) — It is made a condition of 
 this insurance that only actual payment by check or otherwise 
 shall constitute delivery of cotton from the seller to the 
 buyer. 
 
 Record Warranty (Louisiana) — It is warranted that the 
 assured will keep books showing a complete and correct 
 record of all cotton under the protection of this policy, 
 which record shall show weight, location stored, receipts 
 and shipments, and in case of baled cotton the mark or 
 number of each bale; and in case of loss or damage the 
 assured will produce such record for the examination of 
 this company, otherwise this entire policy shall be null and 
 void. 
 
 Daily Record Clause (Oklahoma) — The assured under this 
 policy hereby covenants and agrees to keep a set of books 
 showing a complete daily record of all cotton and cotton 
 seed handled; together with a complete daily record of all 
 cotton put into the gin or cotton house, and all cotton taken 
 from the gin or cotton house; and all cotton seed put into 
 the gin or seed house, and all cotton seed taken from the 
 gin or seed house; also a record showing baled cotton stored 
 on premises described herein, such record to include date 
 at which each bale of cotton covered under this policy was 
 purchased or received and from whom purchased or re- 
 ceived, together with original tag number or mark thereon 
 with its weight and classification; also complete daily record 
 of shipments or sales of baled cotton, showing to whom 
 shipped or sold with the date of shipment or sale, together 
 with original tag number, or mark, weight and classification 
 of each bale; and in ease of loss the assured agrees and 
 covenants to produce such books and records; and in the 
 
326 THE AGENTS KEY TO FIRE INSURANCE 
 
 event of failure to comply with any of the conditions of •; 
 this clause, this policy shall be null and void. \ 
 
 Record Clause (Arkansas)— The assured under this policy | 
 hereby covenants and agrees to keep a set of books, showing \ 
 a complete daily record of all cotton handled, which record } 
 shall include the date at which each bale of cotton covered \ 
 under this policy was purchased or received, from whom 
 purchased or received, in what compress, warehouse or yard | 
 stored, together with the original tag number or mark ] 
 thereon, with its weight and classification, and a complete ] 
 daily record of all shipments or sales, showing to whom 
 shipped or sold, with date of shipment, from what warehouse, ' 
 compress or yard so shipped, and the original tag number i 
 or marks, weight and classification of each bale and such \ 
 complete record shall also show all removals from one ' 
 location covered hereby to any other location, whether cov- : 
 ered hereby or not, and in case of loss the assured agrees ; 
 and covenants to produce such books and records and in the j 
 event of failure to produce the same this entire policy shall 1 
 be null and void. , j 
 
 Cotton — Right of Replacement Notice (Louisiana)— Notice I 
 
 is hereby given that in the event of loss under this policy, j 
 the company has the right as provided under the printed j 
 conditions of this policy to replace with cotton of like kind i 
 and quality the cotton that may be damaged or destroyed 1 
 by fire. j 
 
 Replacement clause (Arkansas) — It is understood and j 
 agreed that the basis for adjustment of any claim for loss 1 
 or damage to the property covered by this policy shall not < 
 exceed the actual cash value of such property at the time > 
 of the loss and at the place of fire, which cash value shall I 
 in no event be greater than it would then and there cost to | 
 replace the property damaged or destroyed with property \ 
 of the same kind and quality. j 
 
 Standard Time Clause (S. E. U. A.) — It is understood and \ 
 
 agreed that the word **noon" as used herein, in designating * 
 
 the beginning and ending of the term of insurance, refers ; 
 
 to Standard Time at the place where the property is located. | 
 
 Cotton (Prohibition of Smoking) (S. E. U. A.)— Warranted j 
 
 by the assured that no smoking will be allowed in the ware- I 
 
 house, compress, platform or yard described in the within j 
 
 policy. j 
 
COTTON AND COTTON SEED 327 
 
 Cotton storage "Warranty (S. E. U. A.) — The following is 
 hereby agreed and understood to be a condition of this 
 insurance and a warranty on part of the assured, viz.: For 
 and in consideration of a reduction in rate of premium 
 
 given by reason hereof, not more than bales will be 
 
 stored in any one compartment of the within described build- 
 ing at any one time, and the cotton will not be stored or 
 
 piled over bales and in case cotton is piled, 
 
 there will be maintained a clear space of inches be- 
 tween top of cotton and automatic sprinklers at all times; 
 and no cotton will be left on platforms, in yards or in 
 courts adjoining the above described warehouse between 
 the hours of 8 p. m. and 6 a. m. 
 
 Sample and "Weight Clause (S. E. U. A.) — (Warranty to 
 sample and weigh each bale of cotton, and to produce such 
 sample and record of weight in case of loss) — the following 
 covenant and warranty is hereby made a part of this policy : 
 
 1. The assured will take sample of, and record the weight 
 of, each bale of cotton insured under this policy, and unless 
 such sample has been taken, and weight recorded, this policy 
 shall not be in effect, but shall be null and void until such 
 sample has been taken and weight recorded. 
 
 2. The assured will keep such samples and record of 
 weights in some place not exposed to a fire which would 
 destroy the cotton insured. 
 
 In the event of failure to produce such samples and record 
 of weights for the inspection of this Company, this policy 
 shall become null and void, and such failure shall constitute a 
 perpetual bar to any recovery thereon. 
 
 COTTON GIN FORM (OKLAHOMA) 
 
 {Stock Only) 
 
 $ On cotton ginned and unginned, baled and unbaled, seed 
 
 cotton, cotton seed, including sacks or packages containing same, 
 and bagging and ties; their own, or held by them in trust, or on 
 commission, or sold but not delivered, or being ginned, or handled 
 for assured's own account, or for the account of others and for 
 which the assured may be liable in case of loss; all only while 
 contained in cotton houses or sheds, seed houses or sheds, and 
 while passing through the cotton gin, and while in wagons on 
 premises, or in gin yard on premises; and, provided bill of 
 lading has not been signed for same, this policy shall also cover 
 such property in and on cars within two hundred feet of gin 
 premises. 
 
328 THE AGENTS KEY TO FIRE INSURANCE 
 
 All of the above described property being located on premises 
 
 known as gin situated Town of 
 
 County of State of Oklahoma. 
 
 Other concurrent insurance permitted. 
 
 Permission to make alterations and repairs for not exceeding 
 thirty (30) days at any one time, which shall include the fifteen 
 (15) days granted in printed conditions of Policy. 
 
 Permission to use electricity for light, heat and power in the 
 within described premises. 
 
 Caution: — See that the entire electrical equipment is installed 
 and maintained in full compliance with the standard requirements 
 of the National Electrical Code, copy of which may be obtained 
 of your insurance agent. 
 
 No smoking shall be permitted on the within described premises. 
 
 In the event of cancellation by the assured not less than two 
 months' premium shall be retained by the company, at gin house 
 card rates. 
 
 Any loss under this Policy that may be proved due the assured 
 shall be payable to the assured and 
 
 (Attach Ownership, Daily Record, Lightning and R. R. Con- 
 tribution Clause.) 
 
 FOR "ORDINARY" GINS ONLY 
 
 {S. E. U, A.) ■ 
 
 1. $ on story frame roof building, occupied ' 
 
 as a Gin House, run by power, situate on planta- 
 tion in County of State of about 1 
 
 2. $....on Saw Gin-stands therein, not exceeding $.... j 
 
 on each. 
 
 3. $....on Condensers therein, not exceeding $....on \ 
 
 each. j 
 
 4. $....on Feeders therein, not exceeding $....on each. ^ 
 
 5. $ on Gin Gearing, Belting and Shafting therein. ; 
 
 6. $ on Cotton Ginned and Unginned therein. i 
 
 7. $ on Cotton Seed therein. ■ 
 
 8. $ on Engine and Boiler, located ^ 
 
 9. $....on Water-wheel. i| 
 
 10. $ on Grist Mill therein. ^ 
 
 11. $....on Cotton Press, located S 
 
 No additional Insurance permitted unless the amounts are in- 
 serted by Agent of this Company in the blank spaces noted below, 
 
 viz.: $ on item No. 1; $ on item No. 2; $ on item No. 3; 
 
 $ on item No. 4; $ on item No. 5; $ on item No. 6; 
 
COTTON AND COTTON SEED 329 
 
 $ on item No. 7; $ on item No. 8; $ on item No. 9; 
 
 $ on item No. 10; $ on item No. 11. 
 
 Three-Fourths Value Clause. — It is understood and agreed 
 to be a condition of this insurance that, in the event of loss or 
 damage by fire to the property insured under this policy, this 
 company shall not be liable for an amount greater than three- 
 fourths of the actual cash value of each item of property insured 
 by this policy (not exceeding the amount insured on each such item) 
 at the time immediately preceding such loss or damage; and in the 
 event of additional insurance — if any is permitted hereon — then this 
 company shall be liable for its proportion only of three-fourths 
 of such cash value of each item insured at the time of the fire not 
 exceeding the amount insured on each such item. 
 
 Assured also warrants each of the succeeding clauses in this 
 form and the statements and undertakings therein, and agrees that 
 the breach of any one or more of said statements or undertakings 
 shall render this policy null and void. 
 
 Each item or subject of insurance under this policy (other than 
 the building or buildings) is, for the purpose of this contract of 
 insurance, to be treated and considered to mean personal property. 
 
 Ownership and Title. — That the assured is the sole and vjn- 
 disputed owner, absolutely and in fee simple, of the land on which 
 these buildings stand, and it is not mortgaged or leased. 
 
 Running of the Gin. — That the property hereby insured will 
 be in active operation 'during the ginning season, and that it is 
 not idle property. 
 
 Condensers. — That condensers will be used when gin is in 
 operation. 
 
 Smoking Prohibited. — That he does not, and will not, permit 
 smoking in and about the Gin House. 
 
 Night Work Prohibited. — ^That the use of artificial light without 
 special permit endorsed on this policy, or the operating or repair- 
 ing of machinery at night, is absolutely prohibited. 
 
 LxGHTS. — When permission for night work is granted, that the 
 use of lights other than closed lanterns, filled by daylight only and 
 outside the building, is prohibited. 
 
 Boiler. — That the boiler and smokestack of same is sound and 
 securely braced and rises above the highest point of the roof. 
 
 Water to be Kept. — That an iron-bound barrel and two buckets, 
 each always filled with water, shall be continuously kept within 
 ten feet of each Gin Stand and Press, and in the same room there- 
 with, to be used in case of fire. 
 
 Cotton Record. — That the assured will keep a book containing 
 a faithful record of all cotton put into and taken from the gin or 
 cotton house, and that such record will be produced in case of loss. 
 
 Incendiarism. — That so far as assured knows or believes, there 
 are no threats, nor any danger of incendiarism, and that he has 
 no reason to suspect any, and that no such serious disagreement 
 
330 THE AGENTS KEY TO FIRE INSURANCE 
 
 has arisen with employees or tenants of the old force or the present 
 as to produce threats or apprehensions of incendiary danger. 
 
 Cancellation. — That in the event of cancellation by the assured, 
 not less than six months' premiums on gin house and machinery 
 shall be retained by the Company, and not less than two months' 
 premium on cotton or seed, at gin house card rates. 
 
 Mixed Hazards.— That there is no Flour Mill, Saw Mill, Plan- 
 ing Mill, Cotton Seed Oil Mill, or any manufacturing risk, except 
 Grist Mill, connected with the Gin House, or within 100 feet 
 thereof. 
 
 Special reference being had to assured's application, which is 
 made a warranty and part thereof. 
 
 COTTON GINS (System) 
 
 (Warranted to Have an Improved System Gin) 
 (S. E. U. A.) 
 
 1. $ On story building, built of with 
 
 roof, while occupied only as a gin house. 
 
 2. $ On cotton ginning machinery of all kinds in use (ex- 
 cepting engine, boiler and fittings and round bale press), consisting 
 of gin stands, feeders, condensers, dust and lint flues, square bale 
 presses and appurtenances, suction elevator, fan, vacuum boxes, 
 distributors, piping, pulleys, seed blowers, seed feeders, conveyors, 
 shafting, belting, hangers, journals, tools,- scales and hose; all 
 only while contained in above described gin house building. 
 
 3. $ On grist mill contained in above described gin house 
 
 building. 
 
 4. $ On boiler room, built of , with roof, 
 
 situated feet from the above described gin house. 
 
 5. $ On engine and boiler and settings, pumps, smokestacks 
 
 and heater only while contained in above described boiler room 
 and/or gin house. 
 
 6. $ On story cotton house, built of.... , and 
 
 covered with , situated feet from the above de- 
 scribed gin house. 
 
 7. $....0n assured's cotton, ginned and unginned, only while 
 contained in said cotton house. 
 
 8. $....0n cotton ginned and unginned, held in trust or on 
 commission, for which assured may be liable only while contained 
 in said cotton house. 
 
 9. $ On story seed house, built of , and cov- ; 
 
 ered with , situate feet from the above described : 
 
 gin house. t 
 
 10. $ On assured's cotton seed only while contained in said c 
 
 seed house. 
 
 11. $....0n 
 
 $ Total. 
 
 AH of the above described property being situated 
 
COTTON AND COTTON SEED 331 
 
 Attach following clauses as in Ordinary Gin Form: — Total In- 
 surance Permitted, ^ Value (all items but 7, 8 and 10), Owner- 
 ship and Title and Warranty clauses, and in addition the fol- 
 lowing: — Cotton Coinsurance (Items 7 and 8), 80% Coinsurance 
 (item 10), Night Work Prohibited, Cotton Record and Mixed 
 Hazards clauses; and 
 
 Non-Storage of Cotton. — That cotton shall not be stored in the 
 gin house, except by special permission endorsed hereon, otherwise 
 this policy shall be null and void. 
 
 Windows and Openings to be Kept Closed. — That all windoyvs 
 and door openings in the gin house shall be securely locked, boarded 
 and/or nailed up during the period when gin is not operating. 
 
 Profitable. — That the property has been profitable and that as- 
 sured has every reason to believe that it will so continue. 
 
 Running of the Gin. — That the gin hereby insured will be in 
 active operation during the ginning season within the life of this 
 policy and will not be idle during such period. 
 
 Cleaned. — That every part of the plant, particularly the gin 
 stands, has been, or will, before beginning of operations, be 
 thoroughly cleaned and shall, during any ginning season, while the 
 policy exists, be kept clean and in good working order. 
 
 Smoking Prohibited; Also Ginning of Wet Cotton. — The as- 
 sured does not, and will not, permit smoking on or about the prem- 
 ises, and will not permit the ginning of wet cotton. 
 
 Elevator System. — That no elevator system shall be used where 
 the cotton passes through the fan. 
 
 Boiler. — That the boiler is stationary and not portable, and 
 smokestack of same is sound and securely braced and rises above 
 the highest point of the roof. 
 
 Water to be Kept. — That one iron-hooped barrel full of salt 
 water and two metal buckets shall be continually kept within ten 
 feet of each gin stand, and in same room therewith, to be used 
 in case of fire. 
 
 Cancellation. — That in event of cancellation by the assured, 
 the company shall retain not less than six months premium on 
 policies covering buildings and machinery and not less than two 
 months premium on policies covering gin products at Gin Short 
 Rates. Union Short Rate Table charges applicable to policies cov- 
 ering only on cotton in bales. 
 
 Special reference being had to assured's application, which is 
 made a warranty and part hereof. 
 
 Standard Time Clause. — It is understood and agreed that the 
 word "noon" as used herein, in designating the beginning and end- 
 mg of the terra of insurance, refers to Standard Time at the place 
 where the property is located. 
 
332 THE AGENTS KEY TO FIRE INSURANCE 
 
 COTTON IN BALES ON PLANTATION OR IN 
 COUNTRY 
 
 iS. E. U. A.) I 
 
 (With One Hundred Feet Clear Space Clause) '. 
 
 $....0n Cotton in bales, owned or held by the assured in trust, ^ 
 
 or on commission, or on joint account with others, or sold but not ; 
 
 delivered, contained in, and/or on premises of situate ' 
 
 One Hundred Feet Clear Space Clause. — Warranted by as- ; 
 
 sured that a clear space of not less than 100 feet will at all times I 
 
 be maintained between cotton insured hereunder and any Gin j 
 
 House or other special hazard. 1 
 
 Sample and Weight Clause. — (Warranty to sample and weigh | 
 
 each bale of cotton, and to produce such sample and record of - 
 
 weight in case of loss) — the following covenant and warranty is ; 
 hereby made a part of this policy: 
 
 1. The assured will take sample of, and record the weight of, i 
 each bale of cotton insured under this policy, and unless such j 
 sample has been taken, and weight recorded, this policy shall not j 
 be in effect, but shall be null and void until such sample has been 
 taken and weight recorded. . 
 
 2. The assured will keep such samples and record of weights j 
 in some place not exposed to a fire which would destroy the cotton j 
 insured. 
 
 In the event of failure to produce such samples and record of . 
 
 weights for the inspection of this Company, this policy shall be- - 
 
 come null and void, and such failure shall constitute a perpetual | 
 
 bar to any recovery thereon. ' 
 
 Any loss that may be ascertained and proven to be due the ;:; 
 
 assured under this policy, shall be held payable to as in- i 
 
 terest may appear, subject, nevertheless, to all the terms and con- j 
 
 ditions of this policy. i 
 
 (Attach Cotton Co-Insurance, Lightning, Standard Time and 
 O. I. P. clauses.) 
 
 BALED COTTON, SEED COTTON AND COTTON 
 
 SEED ON GINNERY PREMISES 
 
 (S. E. U. A.) 
 
 $ On cotton ginned and unginned, baled and unbaled, seed | 
 
 cotton, cotton seed, including sacks or packages containing same, and I 
 bagging and ties, only while contained in cotton houses or sheds, | 
 seed houses or sheds and while passing through the cotton ginnery 1; 
 and while in wagons on premises, or on the ginnery yard or prem- '; 
 ises; also in or on cars within two hundred feet of gin premises, r. 
 This insurance attaches on cars only when bill of lading has not ;j 
 
COTTON AND COTTON SEED 333 
 
 been signed. Their own or held by them in trust or on commission 
 or sold but not delivered, or being ginned or handled for assured's 
 own account, or for the account of others and for which the assured 
 may be liable. 
 
 $ On cotton seed, including sacks or packages containing same, 
 
 only while contained in the seed houses or sheds and while in 
 wagons on premises, or on ginnery yard or premises; also in or on 
 cars within two hundred feet of gin premises. This insurance 
 attaches on cars only when bill of lading has not been signed. 
 Their own or held by them in trust or on commission or sold but 
 not delivered, or being ginned or handled for assured's own ac- 
 count, or for the account of others and for which the assured may 
 be liable 
 
 All of the above described property being located on the prem- 
 ises known as ginnery in the town of County of 
 
 State of 
 
 Other insurance, warranted concurrent herewith, permitted with- 
 out notice until required. 
 
 Any loss that may be ascertained and proven to be due the as- 
 sured under this policy shall be held payable to as interest 
 
 may appear, subject, nevertheless, to all the terms and conditions 
 of this polic}'. 
 
 (Attach Cotton Co-Insurance (Item 1) 80% Co-Insurance (Item 
 2), Replacement, Lightning and Standard Time clauses.) 
 
 COUNTRY COTTON FLOATER— UNLIMITED 
 
 (L. F. P. B.) 
 
 (On Plantation and Awaiting Shipment) 
 
 $ On cotton, ginned and unginned, baled and unbaled, his 
 
 own or held in trust or on commission, for which assured may be 
 liable. All while contained in the Cotton House, in or around 
 the Gin House, or on the premises of the assured or in transit, 
 from the plantation of assured to any railroad or river landing, 
 and to cover at such railroad point or landing until bill of 
 lading has been issued, but in no event to cover after such bill 
 of lading has been issued. 
 
 All of the above property being situated 
 
 It is also understood and agreed that this company shall be 
 liable only for such proportion of the whole loss as the amount 
 of this insurance bears to the cash value of the whole property 
 hereby insured at the time of the fire. 
 
 Other concurrent insurance permitted, 
 
 (Attach Record Warranty, Cotton — Right of Replacement Notice, 
 Loss Payable Clause.) 
 
334 THE AGENTS KEY TO FIRE INSURANCE ' '■ 
 
 CLOSE WAREHOUSE and/or COMPRESS 
 
 (S. E. U. A.) ! 
 
 $....0n Cotton in bales, owned or held by the assured in trust, 1 
 or on commission, or on joint account with others, or sold but not 
 
 delivered, only while contained in the story build- i 
 
 ing, with roof, situated No on the side of J 
 
 Street, Block No , known as Warehouse ' 
 
 and/or Compress, in ' | 
 
 This insurance is effected subject to the following conditions, 
 which are accepted as parts of this contract: 
 
 (Attach Co-Insurance,, Replacement and Standard Time clauses 
 and O. I. P. and other usual clauses.) j 
 
 ij 
 
 OPEN WAREHOUSE AND/OR COMPRESS 
 
 (S. E. U. A.) \ 
 
 Same as foregoing form with the following clause added: j 
 
 Warranted by the assured that no cotton will be left outside • 
 
 of sheds or beyond the apron of roof in the court at night or on ] 
 
 Sundays and holidays. And at all times, while cotton is being \ 
 
 kept or handled in open court, a clear space of not less than eight i 
 
 feet shall be maintained between the cotton in open court and ] 
 apron of roof. 
 
 COTTON COMPRESS BUILDINGS AND MACHINERY | 
 
 {Specific) {S. E. U. A.) J 
 
 $ On their Compress Building, with roof and \ 
 
 Cupola, and so much of platforms as are under said roof. I 
 
 $ On their platforms not covered by said Compress roof. i 
 
 $ On their compress, machinery, boilers, smokestacks, drums, | 
 
 heaters, pumps, water tanks and all connections, including founda- J{ 
 tions and settings. 
 
 $ On their compress tools, trucks, scales, hose, furniture and 
 
 fixtures, fuel and supplies. All while contained in the above de-, 
 scribed building or on premises of Compress Company, situated 
 in 
 
 (Attach Other Concurrent Insurance, Full Coinsurance, Me- 
 chanics, Electric, Lightning and Dynamo, Cease Operations, No 
 Smoking, and Subrogation clauses. |: 
 
 COMPRESS FORM (BLANKET) § 
 
 {S. E. U. A.) \, 
 
 $....On the Buildings and Structures constituting their entire [■ 
 
 Plant, used for Compress and Warehouse purposes; and on |j 
 
 Compress and other Machinery and their spare parts and repairs; " 
 
 r 
 
COTTON AND COTTON SEED 335 
 
 Boilers, Engines, their appurtenances and connections. Smoke- 
 stacks, Drums, Water Tanks, Pumps and other power equipment; 
 fire extinguishing apparatus, including hose, automatic sprinkler 
 system, electrical equipment for power and lighting: Office, Cora- 
 press and Warehouse Furniture and Fixtures and Supplies; Trucks, 
 Tools, Scales, Signs, Awnings, Fuel and Supplies used in and 
 with their business; all while contained in buildings or on premises 
 of the Compress Company, situated in and known 
 
 Buildings described above are built of with roof. 
 
 In the event that an aggregate claim for any loss is less than 
 Ten Thousand Dollars ($10,000) (provided, however, such amount 
 does not exceed five per cent (5%) of the total amount of insurance 
 upon the property described herein and in force at the time such 
 loss occurs) no special inventory or appraisement of the undamaged 
 property shall be required. If this policy be divided into two 
 or more items, the foregoing conditions shall apply to each item 
 separately. 
 
 Lightning and Electrical Apparatus Clause. — This policy 
 also covers direct loss or damage to the property insured, by 
 lightning (meaning thereby the commonly accepted use of the 
 term "Ughtning," and in no case to include loss or damage by 
 cyclone, tornado or windstorm) whether fire ensues or not; it 
 being made a condition of this contract that any loss or damage 
 to dynamos, exciters, lamps, switches, motors or other electrical 
 appliances or devices, such as may be caused by lightning or 
 other electrical currents, artificial or natural, is expressly ex- 
 cluded, and that this Company is liable only for such loss or 
 damage to them as may occur in consequence of fire, originating 
 outside of the appliance or device itself. It is also a condition 
 of this contract that if there is other insurance upon the property 
 damaged this Company shall be liable only for such proportion 
 of any direct loss or damage by lightning (except as above stated) 
 as the amount hereby insured bears to the whole amount insured 
 thereon, whether such, other insurance contains a similar clause or 
 not. 
 
 (Attach same clauses as in preceding form.) 
 
 LIMITED FLOATER 
 
 (S. E. U. A.) 
 
 $ On Cotton in bales, owned or held by the assured in trust, 
 
 or on commission, or on joint account with others, or sold but not 
 delivered, contained in the following specifically described Ware- 
 houses, Compresses and Wharves, including sidewalks, platforms 
 and streets adjacent thereto; also while in transit through streets 
 
 between localities named herein, namely: all situated in 
 
 the city of 
 
336 THE AGENTS KEY TO FIRE INSURANCE 
 
 d 
 
 It is understood and agreed to be a condition of this insurance j 
 
 that this policy shall cover cotton at Compresses, the fact of bills i 
 
 of lading having been signed for the same notwithstanding. 1 
 
 (Attach Co-Insurance, Replacement and Standard Time clauses.) ' 
 
 GENERAL FLOATER ] 
 
 (S. E. U. A.) \ 
 
 $ On Cotton in bales, owned or held by the assured in trust, | 
 
 or on commission, or on joint account with others, or sold but not ,] 
 
 delivered, in all or any of the Stores, Presses, Warehouses, Sheds, ] 
 
 Yards, Railroad Yards and Wharves ( excepted), or while * 
 
 in transit in or while on any of the streets in : 
 
 It is understood and agreed to be a condition of this insurance j 
 
 that this policy shall cover cotton at any of the presses ( I 
 
 excepted), the fact of bills of lading having been signed for the \ 
 
 same notwithstanding. 1 
 
 (Attach Co-Insurance, Replacement and Standard Time clauses.) I 
 
 GENERAL FLOATER \ 
 
 {L. F. P. B.) i 
 
 Covering Within Entire Stable i 
 
 $ On cotton in bales, their own or held by them in trust, j 
 
 or on commission, or purchase for their account by agents of i 
 the assured wherever the said cotton may be within the State jj 
 
 oi""-"' .... i 
 
 Subject to the following conditions, viz.: >\ 
 
 1. It is understood and agreed that cotton is not covered while ' 
 in or on the premises of the i 
 
 2. There shall be no liability under this policy for cotton while ' 
 in the custody of common carriers. 
 
 3. It is understood and agreed that this Company shall not be , 
 
 liable in excess of per cent of the amount insured under- 
 
 this policy by reason of any one fire. { 
 
 4. It is also agreed and understood to be a condition of this ; 
 insurance that this policy shall not apply to or cover any cotton }, 
 which may at the time of loss be covered in whole or part by j 
 or under protection of any Marine Insurance Company, and | 
 further, it is understood and agreed that the assured shall at > 
 all times maintain insurance on the property insured by this v 
 policy equal to the actual cash value thereof, and on each item ; 
 of the same, and the failing so to do, the assured shall be an 
 insurer to the extent of such deficit, and in that event shall bear I 
 his, her or their proportion of any loss on such property, and | 
 this Company shall be liable for not exceeding such proportion! 
 of the loss or damage as the amount insured by this policy shall 1 
 
 
COTTON AND COTTON SEED 337 
 
 bear to the actual cash value of such property at the time of the 
 fire in all localities covered by this policy. 
 
 Other insurance, concurrent herewith, permitted without notice 
 until required. 
 
 COTTON FORM 
 
 (L. F. P. B.) 
 
 Transportation Line's Liability in Compress 
 $....0n their liability for loss or damage by fire to cotton in 
 bales while in the custody of the hereinafter named Compress 
 Company or Companies, for the account of this assured, including 
 (except) cotton loaded and/or being loaded on cars for which 
 cotton no bill of lading, or compress receipt exchangeable by its 
 terms for a bill of lading, has been issued; all while contained 
 in any of the compresses, sheds, platforms and/or yards on their 
 premises and/or on grounds immediately adjacent thereto and 
 in cars on switch tracks of said Compress Company or Companies, 
 
 situate at and known as Louisiana. 
 
 It is hereby agreed that the existence of a chattel mortgage 
 covering the cotton itself shall not constitute an avoidance of 
 this policy. 
 
 (Attach Cotton Co-Insurance Clause.) 
 
 COTTON FORM 
 
 (L. F. P. B.) 
 Compress Liability to Transportation Lines 
 
 $....0n their liability to the transportation line or lines, here- 
 inafter named, by virtue of a mutual contract between this assured 
 and the said transportation line or lines, for loss or damage by 
 fire to cotton in bales in the custody of this assured, for the 
 account of such transportation line or lines including (except) 
 • cotton loaded and/or being loaded on cars for which cotton no 
 bill of lading, or compress receipt exchangeable by its terms for 
 a bill of lading, has been issued; all while contained in the 
 compress or compresses, sheds, platforms and/or yards or the 
 premises and on the grounds immediately adjacent thereto, and in 
 closed cars on the switch tracks of said Compress Company^ 
 situate at 
 
 (Attach Cotton Co-Insurance Clause.) 
 
 Note: — If it be desired, the above form may be used to cover 
 cotton in different compresses in several localities or towns, but. 
 at rate not less than 6 per cent. 
 
 When this form is used to cover in more than one compress, 
 to be subject to the following clause, viz.: 
 
 "It is understood and agreed that this company shall not be 
 
 liable in excess of per cent, of the amount insured under 
 
 this policy by reason of any one fire." 
 
338 THE AGENTS KEY TO FIRE INSURANCE • 
 
 COTTON FORM— COMMON CARRIER 
 
 (L. F. P. B.) 
 
 On cotton in bales for which bills of lading have been issued i 
 by their duly authorized agents, and for which they shall be i 
 
 liable, while contained in and on premises of the in the I 
 
 City of Louisiana. ! 
 
 (Attach Cotton Co-Insurance Clause.) : 
 
 COTTON FORM 
 
 {L. F. P. B.) \ 
 
 Terminal Properties ; 
 
 (Form for Liability as Common Carrier and (or) Warehouseman) - 
 $....0n its legal liability as a common carrier and (or) ware- « 
 houseman for goods and merchandise of every description — except ' 
 (including) cotton for which bills of lading have been issued and 1 
 are outstanding; also on its liability upon its agreement (if any) 1 
 to indemnify owners of such goods against loss or damage by j 
 fire; also on its own goods and merchandise. 1 
 
 All at its terminal at while contained m Louisiana. 1 
 
 This policy also covers earned freight charges. I 
 
 Other insurance, concurrent herewith, permitted without notice - 
 until required. 
 
 Note: — When cotton is covered, the cotton co-insurance clause I 
 is to be used in all cases. { 
 
 COTTON FORM 
 
 (L. F. P. B.) 
 Excess Insurance 
 
 The assured warrants to maintain and carry insurance which 
 
 is to cover all of any loss up to at least $ or, in the event 
 
 of failure so to do, to bear all of any loss up to the amount^ 
 warranted. 
 
 This insurance shall attach only to pay a loss greater than 
 $...., and shall pro-rate in the payment of same with all other i^ 
 excess insurance, but in no event shall pay more than such pro- ' 
 portion of any loss sustained by the assured, over and above i 
 $...., as the amount of this insurance bears to the excess in? 
 value of the cotton over $ . ^ 
 
 Note: — The above form may be written at seventy-five per cent. i! 
 of the regular rate only when $100,000 or more initial insurance * 
 is carried and warranted to be maintained. 
 
COTTON AND COTTON SEED 339 
 
 COTTON FORM 
 
 (L. F. P. B.) 
 Excess Insurance 
 
 It is understood and agreed that the following clause is incor- 
 porated in the marine cotton cover, and it is agreed that the same 
 shall be recognized in the adjustment of any loss under this 
 policy, viz.: 
 
 "This policy does not attach to or cover the risk of fire on any 
 cotton which is fully covered by general or specific fire insurance; 
 that is, insurance under a form of policy covering at a specific 
 place. or places; but on cotton which is covered in part by such 
 general or specific fire insurance, the amount insured hereunder 
 against loss or damage by fire shall be the difference between the 
 amount covered by such fire insurance and the full value of the 
 cotton, and the amount so insured hereunder shall be deemed 
 concurrent insurance with the said fire insurance and liable for 
 not exceeding such a proportion of the whole loss as the amount 
 so insured hereunder bears to the full value of the cotton." 
 
 Note: — To be used when only a nominal amount is carried by 
 Marine Companies. The rate on policies having this endorse- 
 ment to be the full and regular rate where the policies cover. 
 
 COTTON FORM 
 
 (L. F. P. B.) 
 
 On its legal liability as a common carrier and (or) warehouse- 
 man for merchandise for which bills of lading have been issued 
 and are outstanding; also on its liability for merchandise which 
 it has agreed to insure ; also on its own merchandise. All at its 
 seaboard terminal at while contained in Louisiana. 
 
 This policy also covers earned freight charges. 
 
 Other insurance, concurrent herewith, permitted without notice 
 until required. 
 
 Note: — When cotton is covered, the cotton co-insurance clause 
 is to be used in all cases. 
 
 Note: — Quite a large proportion of the fire insurance on 
 cotton is written under marine contracts, principally for 
 those known in the trade as buyers, who purchase cotton 
 in many places and concentrate it in one or more localities, 
 delivering from there to all parts of the world. The policy 
 is drawn to cover all of the buyer's cotton from time of 
 purchase to the time of delivery and monthly reports are 
 made with payments of premium accordingly. 
 
 The Cotton Insurance Association writes a cover similar 
 to that of the marine companies just described but cannot 
 
340 THE AGENTS KEY TO FIRE INSURANCE 
 
 i 
 
 extend such cover outside the United States. A copy of j 
 the form used is as follows: ! 
 
 i 
 
 BUYER'S TRANSIT \ 
 
 1. This insurance covers cotton in bales in the United States, ( 
 while owned by or legally at the risk of the Assured, except as •■ 
 hereinafter provided. • 
 
 2. This insurance shall not cover cotton for which any carrier j 
 or bailee may be liable, or shipped under bill of lading containing { 
 a stipulation that the carrier may have the benefit of any insurance j 
 thereon. However, upon presentation of proof of a loss to cotton 
 described in Paragraph One of this form, while in possession of ] 
 any carrier or other bailee, this Company, provided that all ; 
 provisions of this policy have been complied with, will advance ' 
 to the Assured or the holder of a certificate issued as provided 
 herein, as a loan, the amount of the damage to said cotton, ' 
 repayable only to the extent of any recovery from such carrier ; 
 or other bailee. This insurance shall not cover where any carrier ^ 
 or other bailee has insurance which would attach if this policy \ 
 had not been issued, and shall not inure to the benefit of any ; 
 carrier or other bailee. j 
 
 3. No cotton under contract of purchase by the assured shall j 
 be deemed at risk hereunder unless its location with its marks I 
 and numbers be stated in contract of purchase or in a confirmation ', 
 furnished to the purchaser prior to loss. : 
 
 4. This policy shall not cover cotton after it has become water- •■ 
 borne. '\ 
 
 5. Certificates delivered to the Assured by this Company may j 
 be issued by the Assured, prior to loss, on shipments to final t 
 destination, making the loss, if any, payable to the holder thereof, j 
 provided that memoranda of such certificates shall be mailed to | 
 this Company on day of issue. The amounts and values as 
 stated in such certificates shall be applicable to this policy, and 
 said certificates shall take the place of the original policy, and 
 convey all the rights of the Assured (for the purpose of collecting) 
 to the holders of the certificates, but the holders of such certificates, 
 other than the Assured, shall not be held liable for unpaid 
 premium. 
 
 6. No liability shall attach or advance be made on cotton sold J 
 free on board cars at point of destination, where loss occurs after 
 carriers' liability attaches, unless certificates have been issued X 
 thereon as provided herein. t 
 
 7. On shipments to final destination by all rail routes for which f 
 certificates are issued, such certificates are effective from the j; 
 moment the cotton has been actually delivered into the custody " 
 of railroad and is under its bill of lading to final destination r. 
 until delivery to warehouse or mill, provided such delivery is i 
 
COTTON AND COTTON SEED 341 
 
 made within five days after arrival at destination, and such certifi- 
 cate shall be ineffective if delivery is stopped or delayed by order 
 of the Assured or the holder of such certificates. 
 
 8. It is warranted that when this policy becomes effective the 
 Assured shall report to this Company all cotton owned by or 
 legally at the risk of the Assured, and thereafter to report daily 
 (Sundays and holidays excepted) all purchases, sales and/or ship- 
 ments of cotton, with values of the same, including in these reports 
 all cotton under bills of lading, and to pay to the Company 
 premiums thereon at the following rates: 
 
 9. On cotton sold prior to shipment and on cotton on which the 
 risk ceases upon the issue of bill of lading by a common carrier, 
 if at risk in any location classified as: 
 
 Initial Rates 
 
 "AA" — Five cents (5c) per $100. of value of such sales 
 and/or shipments; 
 
 "A" — Seven cents (7c) per $100. of value of such sales 
 and/or shipments; 
 
 "BB" — Nine cents (9c) per $100. of value of such sales 
 and/or shipments; 
 
 "B" — Twelve and one-half cents (12^c) per $100. of value 
 of such sales and/or shipments; 
 
 "C" — Eighteen and three-quarters cents (18>^c) per $100. of 
 value of such sales and/or shipments. 
 
 "D" — Twenty-five cents (25c) per $100. of value of such 
 sales and/or shipments. 
 
 10. If the cotton so sold or shipped is at risk for an average 
 time greater than ten days, an additional charge for each day 
 or fractional part thereof in excess of the said ten days will 
 be made in accordance with the following schedule: 
 
 Holding Time Rates 
 
 "AA"— One-fifth of one cent (l/5c) per $100. per day; 
 
 "A" — One-quarter of one cent (l/4c) per $100. per day; 
 
 "BB" — Three-tenths of one cent (3/lOc) per $100. per day; 
 
 "B"— One-half of one cent (l/2c) per $100. per day; 
 
 "C" — Five-sixths of one cent (5/6c) per $100. per day; 
 
 "D" — One and one-sixth cents (1 l/6c) per $100. per day. 
 It is further understood and agreed that in the event cotton held 
 at locations of the same classification is at* risk during any 
 calendar month for an average time of less than ten days, the 
 Assured shall receive a credit on the premiums at the holding 
 time rate applicable to such classifications, as above, such credit 
 in no case, however, to exceed the total charge made in that 
 calendar month for holding time (time in excess of ten days) 
 at other locations of different classifications. It is agreed, however, 
 that in the event the cotton sold or shipped during the entire 
 
342 THE AGENTS KEY TO FIRE INSURANCE 
 
 season is at risk for an average time greater than forty days, 
 for each additional day or fraction thereof, the Assured shall 
 receive a credit of one tenth of one cent (1/lOc) per One Hundred 
 Dollars ($100.) of value on the holding time premium. 
 
 11. On cotton to final destination under certificates, as herein 
 provided for, seven and one-half (7^c) cents per $100. of the 
 value of such shipment in addition to the above rates. 
 
 12. In event of loss by fire the Assured will pay the premium 
 as above on the ascertained value of cotton on which any loss 
 may be paid just as though said cotton had been sold or shipped. 
 
 13. In case this policy is not renewed when it expires, or if 
 terminated before expiration, the Assured will pay premium as 
 above on the cash value of whatever stock of cotton remains on 
 hand upon the termination of this policy just as though said 
 cotton had been sold or shipped the day of termination. 
 
 14. Premiums under this policy for each month shall be payable 
 on or before the fifteenth (15th) day of the succeeding month. 
 In case of default of such payment, this policy may be cancelled 
 by this Company upon twenty-four (24) hours' written or tele- 
 graphic notice to the Assured, and at the expiration of such 
 notice all risk hereunder shall terminate except as to shipments 
 under certificates issued prior to receipt of such notice. 
 
 15. If cotton is located in a State other than that in which this 
 policy is issued, the same will be covered by a certificate adopting 
 the terms and conditions of this policy, issued by a Resident Agent 
 of said other State under the laws thereof, which certificate will 
 be furnished to the Assured. 
 
 16. This Company shall not be liable for more than such pro- 
 portion of any loss as the limit of liability mentioned below 
 applying at the place where any loss or damage shall occur 
 bears to the total value of cotton at such location at the time 
 of any loss or damage. The amount of the insurance applying 
 at the place of a loss shall be the limit of liability herein named 
 where the value at risk hereunder at such place exceeds such 
 limit, and in all other instances the value at risk hereunder at 
 such place. 
 
 17. It is agreed that the limit for loss by any one fire or 
 conflagration shall not exceed ($....) Dollars. 
 
 This limit does not apply where certificates have been issued 
 as provided herein. 
 
 18. Payments or advances, if any, on damage before certificates 
 are issued shall be made to banks or other parties having made 
 advances against said cotton, as their interest may appear, pro- 
 vided this Company receives written notice of such interest within 
 ten days after such damage. 
 
 19. This Company shall not be liable for more than the actual 
 cash value of the cotton at the time and place of fire, which shall 
 
COTTON AND COTTON SEED 343 
 
 in no event exceed what it would then and there cost to replace 
 with cotton of like kind and quality, or of equivalent value. 
 
 20. The assured under this policy hereby covenants and agrees 
 to keep a set of books, showing a complete daily record of all 
 cotton handled, showing among other things the weight and 
 classification of each bale and all purchases, sales and/or ship- 
 ments, with the identity of each bale and its location and removal 
 from yards or compresses to other locations, and in case of loss 
 to produce such books to this Company or this policy shall be 
 void. 
 
 21. The Assured agrees that this Company by a properly author- 
 ized representative, shall be permitted to examine the books of 
 the Assured and any (or all) of their agents, employees and 
 correspondents at any time. 
 
 22. If any carrier, bailee or other person has been or shall 
 hereafter be released from any liability for loss or damage to 
 any cotton hereunder, this policy shall be null and void. 
 
 23. This Company reserves the right to cancel, on five days' 
 notice to the Assured, all liability hereunder at any location 
 where recommendations for the protection of cotton, made by 
 this Company, are not complied with. This Company also re- 
 serves the right, upon five days notice to the Assured, to alter 
 rates at any locations where conditions are unusually hazardous, 
 or when the Company's requirements for the safe handling of 
 cotton are not observed. 
 
 24. Upon receipt of advice of a loss by the Assured, immediate 
 notice shall be given to this Company and it may investigate the 
 circumstances attending same and ascertain the amount of loss 
 without such action operating to waive any forfeiture or admit 
 any liability, but all claims to be payable after expiration of 
 fifteen (15) days from receipt of such notice, provided satisfactory 
 proofs have been filed. 
 
 25. This insurance does not protect the Assured's liability as 
 bailee. 
 
 26. No other insurance permitted without the written consent 
 of this Company endorsed hereon. 
 
 COTTON SEED OIL MILLS 
 
 (S. E. U. A.) 
 
 Oil Mill, situate on premises of assured, at or near 
 
 This policy covers to the extent of $ being pro rata part of 
 
 each of the following items: 
 
 (It is understood and agreed, however, that no part of this in- 
 surance attaches or applies to any building or buildings listed 
 below, nor to their contents, except where a specific amount is 
 placed opposite such building, and then applies specifically to 
 
344 
 
 THE AGENTS KEY TO FIRE INSURANCE 
 
 buildings, and/or contents, only in the sum set opposite each such 
 building.) 
 
 $ On Buildings and connections, including stacks, plumbing 
 
 and piping, except for fire extinguishing. 
 
 $ On machines, machinery, appurtenances and appliances, 
 
 boilers, engines, pumps, including all connections, implements, 
 tools, utensils, electric light equipment, fire extinguishing appa- 
 ratus, tanks in or on buildings, towers or scaffolds, vehicles of all 
 kinds, office furniture, furnishings and fixtures, iron safes, printing 
 and writing machines, stationery supplies, and all material and 
 extra parts, only while contained in building or buildings specified 
 below: 
 
 (1) 
 
 (22) 
 (3) 
 (4) 
 (5) 
 (6) 
 (7) 
 (8) 
 
 (9) 
 (10) 
 
 DESCRIPTION 
 
 On the story 
 
 On the story 
 
 On the story 
 
 On the story 
 
 On the story 
 
 On the story 
 
 On the story 
 
 On Boilers. Engines 
 
 contained in above 
 
 On Track Scales . . . 
 
 On Track or Tower ( 
 
 roof Main Mill BuUding 
 
 roof Seed House No 
 
 roof Seed House No 
 
 roof Hull House 
 
 roof Meal House 
 
 roof Office Building.... 
 
 roof Boiler House 
 
 and Connections while 
 described boiler house . . 
 
 not in or on buildings) . 
 
 TOTALS 
 
 Amount insured 
 
 on 
 
 Buildings, Etc., 
 
 Per Ist Item 
 
 Amount Insured 
 
 •n 
 
 Machinery, Etc., 
 
 Per 2d Item 
 
 Total insurance permitted warranted concurrent herewith, in- 
 cluding this policy, as follows: 
 
 $ on item 1; $ on item 2; $ on item 3; $ on item 4; 
 
 $ on item 5; $ on item 6; $ on item 7; $ on item 8; 
 
 $ on item 9; $ on item 10. 
 
 It is understood and agreed that no insurance in addition is 
 permitted to this policy unless the total insurance, including this 
 policy, is entered in paragraph above. 
 
 This insurance is effected subject to the following conditions, 
 which are accepted as part of this contract: 
 
 Three-fourths Value Clause. — It is understood and agreed to 
 be a condition of this insurance that in the event of loss or dam- 
 age by fire to the property insured under this policy, this Company 
 shall not be liable for an amount greater than three-fourths of 
 the actual cash value of each item of property insured by this 
 policy (not exceeding the amount insured on each such Item) at 
 the time immediately preceding such loss or damage; and in the 
 event of additional insurance — if any is permitted hereon — then 
 this Company shall be liable for its proportion only of three- 
 fourths of such cash value of each item insured at the time of the 
 fire, not exceeding the amount insured on each such item. 
 
 Fire Protection Clause. — In consideration of the reduced rate 
 at which this policy is written, it is hereby made a condition of this 
 
COTTON AND COTTON SEED 345 
 
 insurance that all of the private fire protection, for which credit 
 is given in the rating on the within named property, shall at all 
 times be kept in good condition and complete working order, 
 whethei- it be fire-plug and hose, with spanner — or casks of water 
 and fire-pails — or watchman's clock and records — or fire-pump — or 
 any other kind of private fire protection; and assured agrees that, 
 in event of failure to do* so, this policy shall be null and void, 
 unless the interruption of such fire protection be from circum- 
 stances not within the control or knowledge of the assured, or 
 which could not have been prevented by the exercise of due dili- 
 gence on the part of the assured. 
 
 (Attach also Mechanics, Cease Operations, Work Nights, Light- 
 ning and Dynamo, and Standard Time clauses.) 
 
 Note: — The foregoing form is also used with the 80% Coinsur- 
 ance Clause substituted for the % Value Clause, in which case 
 the permit for other insurance by items is left out, and the following 
 clause substituted: 
 
 "Other insurance, warranted concurrent herewith, permitted 
 without notice until required." 
 
 COTTON SEED OIL MILLS 
 {S. E. U. A.) 
 
 (Cotton Seed is almost always insured separately from building 
 and machinery) 
 
 Oil Mill, situate on premises of assured, at or near 
 
 $....0n cotton seed, cotton seed oil and (or) any product com- 
 ing therefrom, pertaining to the production thereof, or any ma- 
 terial, raw, wrought or in process, necessary thereto; also Cooper- 
 age, barrels, sacks, bags, bagging and packages of whatever ma- 
 terial, and all other merchandise used in their industry, their own 
 or held by them in trust, or on commission or consignment, or on 
 joint account with others, or sold but not delivered or removed, 
 or for which the assured may be liable in case of loss, only 
 while contained in building or buildings specified below. 
 
 (It is understood and agreed, however, that no part of this in- 
 surance applies in any building or buildings listed below, except 
 where a specific amount is placed opposite such building, and then 
 applies specifically in the sura set opposite each such building.) 
 
 
 
 DESCRIPTION 
 
 AMOUNT 
 
 In the. 
 
 story. . 
 
 story.. 
 
 story., 
 
 story.. 
 
 story.. 
 
 roof Main Mill Building 
 
 
 In the. 
 
 roof Seed House, No 
 
 
 In the. 
 
 roof Seed House, No 
 
 
 In the. 
 
 roof Hull House 
 
 
 In the. 
 
 roof Meal House 
 
 
 
 
 
 
 Total 
 
 
 
 
 
 
 
346 THE AGENTS KEY TO FIRE INSURANCE 
 
 This policy shall not attach to nor cover oil contained in yard 
 tanks, nor to stock in any cotton ginnery. 
 
 This insurance is effected subject to the following conditions, 
 which are accepted as parts of this contract: 
 
 Warranty to keep books and inventories and to produce them 
 in case of loss. — The following covenant and warranty is hereby 
 made a part of this policy: 
 
 1. The assured will at the beginning of each season take a com- 
 plete itemized inventory of all stock on hand. 
 
 2. The assured will keep a set of books, which shall clearly 
 and plainly show a complete record of the weight of all seed 
 bought and deposited on the premises and a record of the yield 
 of oil and meal and a record of all stock sold, shipped or removed 
 from the premises. 
 
 3. The assured will keep such books, inventory and record 
 securely locked in a fire-proof safe at night, and at all times when 
 the buildings mentioned in this policy are not actually open for 
 business; or failing in this, the assured will keep such books, in- 
 ventory and records in some place not exposed to a fire which 
 would destroy the aforesaid buildings. 
 
 In the event of failure to produce such set of books, inventory 
 and records for the inspection of this Company, this policy shall 
 become null and void, and such failure shall constitute a perpetual 
 bar to any recovery thereon. 
 
 Warranty for Cotton Seed Oil Mills and/or Cotton Seed Oil 
 Mill Warehouses — It is warranted by the assured that the within 
 described Cotton Seed Oil Mill and/or Cotton Seed Oil Mill 
 Warehouses will not be used for the manufacture or mixing of 
 fertilizer, or for the storage of fertilizer material, or for the 
 milling or storage of copra, velvet, soya, or other beans, peanuts, 
 or any other raw materials, other than cotton seed and/or its 
 products, unless written permission is endorsed hereon; otherwise 
 this policy shall be null and void, it being understood and agreed, 
 however, that the above warranties do not prohibit the storage of 
 manufactured fertilizer or of any materials not more hazardous 
 that are incidental to cotton seed oil mill business. It is further 
 warranted that no baled linters \vill be stored in mill, seed house 
 or other warehouses or buildings comprising this Cotton Seed Oil 
 Mill plant, or within 60 feet thereof, except such baled linters 
 as are stored in the baled linter warehouse, otherwise this policy 
 shall be null and void. 
 
 (Attach also the 80% Coinsurance Clause, Fire Protection, 
 Automobile Permit, O. I. P. and the Mechanics, Cease Operations, 
 Work Nights, Lightning and Dynamo, and Standard Time clauses.) 
 
COTTON AND COTTON SEED 347 
 
 COTTON SEED OIL MILLS 
 
 {S. E. U. A.) 
 (Blanket Policy — Building and Machinery and Other Articles, with 
 Ninety Per Cent Co-Insurance Clause) 
 Oil Mill, situate on premises of assured, at or near 
 
 This policy covers to the extent of $...., being pro rata part 
 of total insurance. 
 
 $. . . . (total insurance) On all Buildings and Connections, includ- 
 ing Stacks, Plumbing and Piping; on Machines, Machinery, Ap- 
 purtenances and Appliances, Boilers, Engines, Pumps, including all 
 Connections, Implements, Scales, Tools, Utensils, Electric Light 
 Equipment, Fire Extinguishing Apparatus, Tanks, Towers and 
 Scaffolds, Vehicles of all kinds, Office and Laboratory Furniture, 
 Furnishings and Fixtures, Iron Safes, Printing and Writing Ma- 
 chines, Stationery Supplies, and all Material and Extra Parts 
 usual to the conduct of a Cotton Seed Oil Mill and Refinery, 
 while on the premises above described. 
 
 This insurance is effected subject to the following conditions 
 and are accepted as parts of this contract: 
 
 (Attach 90% Coinsurance, Fire Protection, Lightning and 
 Dynamo, Standard Time, Automobile, Mechanics, Cease Opera- 
 tions, Night Work, O. I. P. Clauses and Special Warranty shown 
 in last paragraph of preceding form.) 
 
 COTTON SEED OIL MILLS 
 
 {S. E. U. A.) 
 
 (Blanket Policy — Stock, with Ninety Per Cent Co-Insurance 
 
 Clause) 
 Oil Mill, situate on premises of assured, at or near 
 
 $....0n Cotton Seed, Cotton Seed Oil and/or any product 
 coming therefrom, pertaining to the production thereof, or any 
 material, raw, wrought or in process, necessary thereto; also 
 Cooperage, Barrels, Sacks, Bags, Bagging and Packages of what- 
 ever material, and all other Merchandise used in their industry, 
 their own or held by them in trust, or on commission or consign- 
 ment, or on joint account with others, or sold but not delivered 
 or removed, or for which the assured may be liable in case of 
 loss; all while on the premises above described, subject to the 
 following conditions: 
 
 This policy shall not attach to nor cover oil contained in yard 
 tanks, nor to stock in any cotton ginnery. 
 
 This insurance is effected subject to the following conditions, 
 which are accepted as part of this contract: 
 
 (Attach same clauses as preceding, also Book and Inventory 
 Warranty.) 
 
DIVISION XIII i 
 
 RENT AND LEASEHOLD INSURANCE < 
 
 This class of insurance is written under special forms at- ' 
 
 tached to the regular fire policy; generally speaking, the j 
 
 same permits and clauses should be attached (so far as they j 
 
 apply to the subject of insurance) as would be to the ordi- i 
 
 nary fire policy covering the class of property on which the i 
 
 rent or leasehold interest is based. For instance, a rent policy ! 
 
 on a dwelling should contain the permits and clauses enumer- j 
 
 ated under RESIDENCE PROPERTY FORMS, page 215, | 
 
 Rents and Rental Value. It is not always realized that fire, \ 
 
 by rendering a building untenantable, entails other losses ! 
 
 beyond that to the structure itself, namely, loss of income .! 
 
 from rents, or loss of the use of such portion of the building ; 
 
 as the owner occupies, or even a loss because space which I 
 
 might be rented is not available. i 
 
 This has given rise to a form of insurance against loss of - 
 
 rents or rental value which is coming into greater demand \ 
 
 every year, as the fact becomes known that such insurance ; 
 
 is available. ^ 
 
 Rates are usually somewhat less than the building rates • 
 
 and the forms used cover loss of rent during the period of : 
 
 repair or replacement, being applicable to all classes of risks | 
 
 whether dwelling, mercantile or manufacturing properties. J 
 
 Many agents are attaching to all policies covering dwelling \ 
 
 and mercantile properties a rent endorsement inserting : 
 therein the amount of rent or rental value of the property; 
 
 then when delivering policy a brief explanation is made of 1 
 
 the nature of the cover, with the result that such insurance ^ 
 
 is usually accepted. The following facts may be of assist- ] 
 ance in such cases: 
 
 An owner of rented property loses the income therefrom 
 
 when it is rendered untenantable in whole or in part. J 
 
 An owner occupying his own property loses the value of ■ 
 such occupancy under the same conditions. 
 
 In either case, taxes, interest on mortgage, and frequently 
 
 348 I 
 
RENT AND LEASEHOLD 349 
 
 maintenance . and operating charges, continue undiminished 
 without any compensating "return. 
 
 To the individual owner rent insurance is sold as a straight 
 business proposition against the risk of loss of income. To 
 those having mortgages on their property, particularly build- 
 ing and loan mortgages, who rely on their rental income to 
 meet monthly payments, it is especially desirable. 
 
 Executors, trustees, receivers, officers of corporations and 
 others responsible in a fiduciary capacity consider this kind 
 of insurance in the light of a fulfilment of their obligations 
 to protect the interests in their care. 
 
 There is a distinction between rents and rental value: In- 
 surance against loss of rents contemplates payment only in 
 case the building, or any part thereof, is rendered untenant- 
 able by fire and actual loss of rent ensues; if portions are 
 untenanted there is no actual loss of rent and therefore no 
 claim. 
 
 Insurance against loss of rental value contemplates pay- 
 ment if the building or any part thereof is rendered untenant- 
 al)le by fire, whether the building is occupied by owner or by 
 tenant, and in some cases is extended to cover it if unoc- 
 cupied. 
 
 There are many different forms in use for writing this 
 class of insurance, some prescribed as to phraseology and the 
 clauses to be attached, but the following will serve as illus- 
 trations : 
 
 "RENTS— FORM *A' 
 
 {Uniform East) 
 
 1. "Whether Rented or Vacant — Based on Time to Rebuild. 
 
 2. "$. . . .on the rental value of the building situate 
 
 3. "The term rental value, wherever used in this contract, 
 shall mean the determined rental less such charges and ex- 
 penses as do not necessarily continue. 
 
 4. "It is hereby provided that if said premises or any part 
 thereof, whether rented at the time or not, shall be rendered 
 untenantable by fire or lightning occurring during the con- 
 tinuance of this policy, this Company shall thereupon become 
 liable for the rental value of such untenantable portions. Loss 
 to be computed from the date of fire or damage by lightning, 
 until such time as the building could, with reasonable diligence 
 
350 THE AGENTS KEY TO FIRE INSURANCE 
 
 and dispatch, be rendered again tenantable, although the per- 
 iod may extend beyond the termination of this policy. 
 5 "If the insured occupies any portion of said building, a fair 
 rental value of the portion so occupied shall be considered as 
 a part of the rental value insured. 
 
 6. "In the event of a disagreement as to the time required to 
 restore the premises to the same tenantable condition as be- 
 fore the fire or damage by lightning, or as to the rental value 
 of premises occupied by the insured, the same shall be deter- 
 mined by appraisement or reference in the manner provided 
 in the printed conditions of this policy. 
 
 7. "In consideration of the reduced rate at which this policy is 
 written, it is agreed that this Company shall not be liable, 
 under this policy, for a greater proportion of any loss that 
 may occur than the sum hereby insured bears to the rental 
 value of the whole of said premises for the time that would, 
 with reasonable diligence and dispatch, be required to rebuild 
 and restore the same to a tenantable condition, if totally 
 destroyed. Total liability under this policy for any loss shall 
 not exceed the sum insured by this policy, nor this Company's 
 pro rata proportion of all insurance on rental value, whether 
 other insurance covers against loss caused by lightning or not. 
 
 8. "Other insurance permitted without notice until required." 
 
 It covers, as will be ngted, the rental value of the building, 
 which it defines as 'Hhe determined rental less such charges 
 and expenses as do not necessarily continue. '^ Rental value 
 may be further defined as the going rental for similar 
 premises in a similar neighborhood suitable for a similar 
 occupancy. It provides for computation of the loss during 
 the estimated time it would take to repair or replace the 
 building and make it tenantable, and contains a further 
 provision that the Company shall not be liable for a greater 
 proportion of such loss than the insurance bears to the rental 
 value of the whole of the premises, for the time required 
 to rebuild. 
 
 When determining how much insurance should be carried 
 under this form, the agent or owner should consider the time 
 it is likely to take to rebuild the building under the most 
 unfavorable circumstances, that is, with due allowance for 
 bad weather, possible unsettled conditions in the building 
 trades, etc. 
 
RENT AND LEASEHOLD 351 
 
 The following is known as Form "J5", in which paragraphs 
 2, 3, 5, 6 and 8 are identical with Form '*A". The changes 
 in the form are in paragraphs 1, 4 and 7, which in Form "B" 
 read as follows: 
 
 "RENTS— FORM 'B' 
 
 ( Uniform East) 
 1. "Occupied or Rented Portions Only — 
 
 Based on Time to Rebuild. 
 4. "It is hereby provided that if said premises or any part 
 thereof, occupied or rented at the time, shall be rendered 
 untenantable by fire or lightning occurring during the con- 
 tinuance of this policy, this Company shall thereupon become 
 liable for the rental value of such untenantable portions. Loss 
 to be computed from the date of fire or damage by lightning, 
 until such time as the occupied or rented portions of the 
 building could, with reasonable diligence and dispatch, be 
 rendered again tenantable, although the period may extend 
 beyond the termination of this policy. 
 
 7. "In consideration of the reduced rate at which this policy 
 is written, it is agreed that this Company shall not be liable, 
 under this policy, for a greater proportion of any loss that 
 may occur than the sum hereby insured bears to the rental 
 value of the whole of the occupied or rented portions of said 
 premises for the time that would, with reasonable diligence 
 and dispatch, be required to rebuild and restore the same to 
 a tenantable condition, if totally destroyed. Total liability 
 under this policy for any loss shall not exceed the sum insured 
 by this policy, nor this Company's pro rata proportion of all 
 insurance on rental value, whether other insurance covers 
 against loss caused by lightning or not." 
 
 This is subject to the same general explanation, and is 
 applicable under like circumstances, except that it relates 
 only to the occupied or rented portions of the building, that 
 is, if a fire occurs while part of the building is not rented or 
 is unoccupied, that part of the building is not taken into 
 consideration in computing the loss or the rental value of 
 the whole of the premises. 
 
 The following -is known as Form "0", in which paragraphs 
 2, 3, 4, 5, 6 and 8 are identical with Form "A". The changes 
 in the form are in paragraphs 1 and 7, which in Form "C" 
 read as follows: 
 
35^ THE AGENTS KEY TO FIRE INSURANCE 
 
 "RENTS— FORM *C' 
 
 {Uniform East) 
 1. "Whether Rented or Vacant — 
 
 Based on Annual Rental Value. 
 7. "In consideration of the reduced rate at which this policy 
 is written, it is agreed that this Company shall not be liable, 
 under this policy, for a greater proportion of any loss that 
 may occur than the sum hereby insured bears to the rental 
 value of the whole of said premises per annum. Total liability 
 under this policy for any loss shall not exceed the sum insured 
 by this policy, nor this Company's pro rata proportion of all 
 insurance on rental value, whether other insurance covers 
 against loss caused by lightning or not." 
 
 This relates to rented or vacant premises, and is based 
 on the actual rental value for the entire year. In writing 
 insurance under this fonn, an amount equal to the annual 
 rental value should be carried, and it should apply to all 
 premises, whether rented or not. 
 
 The following is known as Form "D", in which .paragraphs 
 2, 3, 5, 6 and 8 are identical with Form "A". The changes 
 in the form are in paragraphs 1, 4 and 7, which in Form "D" 
 read as follows: 
 
 "RENTS— FORM 'D* 
 
 {Uniform East) 
 1. "On Occupied or Rented Portions Only — 
 
 Based on Annual Rental Value. 
 4. "It is hereby provided that if said premises or any part 
 thereof, occupied or rented at the time, shall be rendered 
 untenantable by fire or lightning occurring during the con- 
 tinuance of this policy, this Company shall thereupon become 
 liable for the rental value of such untenantable portions. Loss 
 to be computed from the date of fire or damage by lightning, 
 until such time as the occupied or rented portions of the build- 
 ing could, with reasonable diligence and dispatch, be rendered 
 again tenantable, although the period may extend beyond the 
 termination of this policy. 
 7. "In consideration of the reduced rate at which this policy 
 is written, it is agreed that this Company shall not be liable, 
 under this policy, for a greater proportion of any loss that 
 may occur than the sum hereby insured bears to the rental 
 value of the whole of the occupied or rented portions of said 
 premises per annum. Total liability under this policy for any 
 loss shall not exceed the sum insured by this policy, nor this 
 
RENT AND LEASEHOLD 353 
 
 Company's pro rata proportion of all insurance on rental 
 value, whether other insurance covers against loss caused by 
 lightning or not," 
 
 This bears the same relation to Form ' ' C " that * ' B " does 
 to **A^', that is, it applies to occupied or rented portions 
 only, and otherwise is similar to '^C". 
 
 The following is known as Form "£", in which paragraphs 
 3, 4, 5, 6 and 8 are identical with Form "A". The changes 
 in the form are in paragraphs 1, 2, 7 and 7a, which in Form 
 *'E" read as follows: 
 
 1. "RENTS— FORM 'E' 
 
 {Uniform East) 
 FOR SEASON RISKS 
 
 2. "$.... on the rental value of the roof building occu- 
 pied for situate 
 
 7. "In consideration of the reduced rate at which this policy is 
 written, it is agreed that this Company shall not be liable, 
 under this policy, for a greater proportion of any loss that 
 may occur than the sum hereby insured bears to the rental 
 value of the whole of said premises during the period for 
 which liability is assumed under the succeeding paragraph. 
 Total liability under this policy for any loss shall not exceed 
 the sum insured by this policy, nor this Company's pro rata 
 proportion of all insurance on rental value, whether other 
 insurance covers against loss caused by lightning or not. 
 
 7a. "Liability under this policy is limited to loss of rental value 
 
 sustained, not exceeding the rate of $ per month, from 
 
 to in each year, inclusive, and this Company is hereby 
 
 relieved from all liability for loss of rental value during the 
 
 remainder of the year, i. e., from to in each 
 
 year, inclusive." 
 
 NOTE: — The general outlines are the same as the other 
 forms, except that the liability is limited to the rental value 
 for certain months in the year, and in the computation of the 
 loss and of the rental value only those months are taken 
 into consideration. 
 
 In the Southern States the forms used are different from 
 the foregoing in the language used, but are essentially the 
 same in their meaning. One of them is given herewith as an 
 illustration. 
 
354 THE AGENTS KEY TO FIRE INSURANCE 
 
 RENTS FORM 
 
 {S. E. U. A.) 
 (Based on Annual Rental) 
 
 $....On the rents of the story building, with 
 
 roof, situated No on the side of 
 
 Street, Block No , in 
 
 This insurance is effected subject to the following conditions, 
 which are hereby made warranties by the assured, and are 
 accepted as parts of this contract: 
 
 The intention of this insurance is to make good the loss of 
 rents caused by fire or lightning actually sustained by the assured 
 on occupied or rented portions of the premises which have become 
 untenantable for and during such time as may be necessary to 
 restore the premises to the same tenantable condition as before the 
 fire. 
 
 If the assured occupies any portion of the premises, a fair 
 rental value for the portions so occupied shall be considered 
 as a part of the rents insured. Said time, in case of disagree- 
 ment, to be determined by appraisement in the manner provided 
 in the conditions of this policy; but this Company shall not be 
 liable for a greater proportion of any loss than the sum hereby 
 insured bears to the actual annual rental of such occupied or 
 rented portions of the premises. 
 
 Standard Time Clause. — It is understood and agreed that 
 the word "noon" as used herein, in designating the beginning 
 and ending of the term of insurance, refers to Standard Time 
 at the place where the property is located. 
 
 In the Central and Western States the forms for writing 
 rent and rental value insurance are also different from those 
 first quoted, but have essentially the same meaning. The 
 fraction inserted in blank space is either l/9th or l/12th 
 except on fireproof buildings for which there are special 
 • rules. 
 
 RENT OR RENTAL VALUE FORM NO. 1 
 
 (Fire and Lightning Only with Limit of Losses per Month) 
 {Uniformity West) 
 
 $ On the rents of the story roof build- 
 ing, occupied as situated 
 
 In case the above named building, or any part thereof, shall 
 be rendered untenantable by fire, this Company shall be liable 
 to the assured for the actual loss of rents, ensuing therefrom, 
 
 not exceeding the sum insured, nor one- of that amount 
 
 for any one month, based upon bona fide leases in force at the 
 time of the fire, loss to be computed from the date of the 
 
RENT AND LEASEHOLD 355 
 
 occurrence of said fire, and to be determined by the time it 
 would require, under ordinary circumstances, to put the premises 
 in tenantable condition; and in case any portion of the building, 
 herein described, shall be occupied by the assured, for his own 
 use, this policy shall extend to and cover the rental value of 
 such portion so occupied, in the same manner as if under lease 
 to a tenant. 
 
 In the event of a disagreement as to the time that would be 
 required, under ordinary circumstances, to restore the building 
 to the same tenantable condition as before the fire, or as to the 
 rental value of any part of said building occupied by the assured, 
 the same shall be determined by appraisement in the manner 
 provided in the printed conditions of this policy. 
 
 (Attach usual clauses.) 
 
 NOTE : — Above form to be used for buildings occupied by 
 tenants and for the insured. 
 
 RENT OR RENTAL VALUE FORM NO. 2 
 
 (Fire and Lightning Only with Limit of Loss per Month) 
 
 $ On the rents and/or rental value of the story 
 
 roof building, occupied as situated 
 
 Town of State of Nebraska. 
 
 In case the above named building, or any part thereof, whether 
 rented at the time or not, shall be rendered untenantable by fire, 
 this company shall be liable to the assured for the rents and/or 
 rental value of such untenantable parts, not exceeding the sum 
 
 insured, nor one- of t|ie amount for any month; loss to be 
 
 computed from the date of the occurrence of said fire, and to be 
 determined by the time it would require, under ordinary circum- 
 stances, to put the premises in tenantable condition; and in case 
 any portion of the building, herein described, shall be occupied 
 by the assured, for his own use, this policy shall extend to and 
 cover the rental value of such portion so occupied, in the same 
 manner as if under lease to a tenant. 
 
 In the event of a disagreement as to the time that would be 
 required, under ordinary circumstances, to restore the building to 
 the same tenantable condition as before the fire, or as to the rents 
 and/or rental value of the building or any part thereof, the 
 same shall be determined by appraisement in the manner provided 
 in the printed conditions of this policy. 
 
 (Attach usual clauses.) 
 
 NOTE: — Above form to be used for buildings vacant, or 
 occupied in part by tenants and/or the insured. 
 
356 THE AGENTS KEY TO FIRE INSURANCE | 
 
 ? 
 
 RENT OR RENTAL VALUE DWELLING FORM i 
 
 {Uniformity West) \ 
 
 {Fire and Lightning Only) \ 
 
 $....0n the rents of the story roof build- j 
 
 ing with foundation and chimneys and flues, occu- J 
 
 pied and to be occupied only as a dwelling by not more than \ 
 
 families, situated \ 
 
 In case the above named dwelling house, or any part thereof, i 
 shall be rendered untenantable by fire, this Company shall be ; 
 liable to the assured for the actual loss of rents ensuing therefrom, j 
 not exceeding the sum insured, nor one-twelfth (1-12) of that \ 
 amount for any one month, based upon bona fide leases in force | 
 at the time of the fire, loss to be computed from the date of the 
 occurrence of said fire, and to be determined by the time it would \ 
 require to put the premises in tenantable condition. 
 
 But if the building be occupied by the owner, the amount stated 
 in this item shall be taken to be the actual annual rental value, 
 subject to proof, if required, by the certificate of two competent 
 and disinterested real estate appraisers, and in that event it is 
 the intent and purpose of this insurance to indemnify the Assured 
 for any loss which he may sustain, not exceeding the amount so 
 named, by reason of said dwelling being destroyed, or so dam- 
 aged by fire as to render it uninhabitable, thereby necessitating 
 the renting of a residence elsewhere. 
 
 Illustrations of other kinds of rent forms in use in certain 
 territories are given herewith. 
 
 OWNER'S RENT FORM 
 
 {Season Property) 
 $1,000 on the rents of the building and furnishings, situate 
 
 The above mentioned property having been leased at a rental 
 which, for the purpose of this insurance, is estimated and fixed at 
 the sum of $1,000 for the term of this policy, it is hereby under- 
 stood and agreed that if fire, or lightning, occurring during the 
 term and under the conditions of this policy, renders the above 
 described property untenantable, or otherwise invalidates the lease, 
 this Company shall pay to the insured the sum of $1,000, which 
 sum, however, shall be decreased at the rate of $200 per month 
 
 for such time as may have elapsed from and after June 1st 
 
 to the date of fire or lightning damage. 
 
 (Attach usual clauses.) 
 
 Advanced Rents. This form of insurance is intended to in- 
 demnify the lessee for rents paid in advance, or to be paid if his 
 lease is not terminated in case of fire rendering the premises un- 
 tenantable. It is chiefly used in the case of a lease of season 
 property, such as a summer cottage. 
 
r 
 
 RENT AND LEASEHOLD 357 
 
 I 
 
 The conditions of leases are so varied that no one general form 
 will serve in all cases, but the following is given for illustration: 
 
 LESSEE'S RENT FORM 
 
 {Entire Rental Paid In Advance) 
 $1,000 on rents paid in advance for the dwelling ("and furnish- 
 ings" if included), situate It is understood and agreed 
 
 that if fire, or lightning, occurring during the term and under the 
 conditions of this policy, renders the above described property un- 
 tenantable, this Company shall be liable to the insured for such 
 rents, actually paid in advance, at the rate of $200 per month dur- 
 ing such time from June 1st to September 30th, inclusive, as the 
 property is untenantable by reason of such damage by fire or light- 
 ning. 
 
 Note: — Policies are usually written from the date when rents 
 are advanced to the date when lease terminates, as from March 
 1st to October 1st. 
 
 LESSEE'S RENT FORM 
 No. 2. 
 $1,000 on rent paid by the insured in advance, or to be paid, as 
 
 lessee of the dwelling and furnishings, situate If, during the 
 
 term of this policy, the building or furnishings herein referred to 
 shall be so damaged or destroyed by fire or lightning as to be- 
 come untenantable, this Company shall be liable from the date of 
 the policy to June 1st, 1917, for the sum of $1,000; from June 1st, 
 1917, to July 1st, 1917, for $800; from July 1st, 1917, to Aug. 1st, 
 1917, for $600; from August 1st, 1917, to Sept. 1st, 1917, for $400; 
 and from Sept. 1st, 1917, to Oct. 1st, 1917, for $200, It being the 
 intent of this insurance to indemnify the insured at the rate, to 
 the extent, and in the manner above provided, for that portion of 
 the rental of $1,000 paid in advance by him, which would be ap- 
 plicable to the period as above limited during which the insured 
 remains actually prevented from the use of the property described 
 for his occupancy as intended. 
 
 Ground Rent Insurance. This is a form of insurance for the 
 protection of the owner of land under lease against loss of ground 
 rents, or impairment of the security therefor, by reason of fire 
 damaging or destroying the building standing on such land. In- 
 surance is issued to the owner of land for an amount equal to the 
 estimated value of ground rents, based on the annual income 
 derived therefrom. 
 
 If fire damages or destroys the building and the lessee (owner 
 of building) repairs or restores it, there is no loss under the 
 ground rent insurance unless the terms of the lease provide for 
 no payment of ground rent during the time necessary for repair 
 or replacement. 
 
 If lessee does not repair or restore building the insurance on 
 
368 THE AGENTS KEY TO FIRE INSURANCE | 
 
 i 
 
 ground rents pays the owner thereof the estimated value of ground i 
 
 rents as stated in the policy together with any ground rent accrued ij 
 
 and not paid by lessee, and thereupon the insurance company takes ■ 
 
 ownership of the land; or, as an alternative, it pays the difference, ; 
 if any, between such estimated value and the ascertained value 
 
 at the time of fire, the owner in that case retaining the land. \ 
 
 The form customarily used for writing such insurance reads as \ 
 
 follows : \ 
 
 GROUND RENT FORM | 
 
 $1,363.64 on annual ground rent of $75, issuing out of lot of i 
 
 ground about 38 foot front by about 105 foot deep and im- ' 
 
 proved by frame building situate Agreed value of « 
 
 ground rent $1,363.64. *. 
 
 It being understood and it is hereby agreed that if the security ' 
 
 for the payment of the ground rents or annuities hereby insured ' 
 
 or any of them shall be impaired or diminished by reason of the ' 
 damage or destruction by fire of the buildings erected on the 
 
 above mentioned lots or any of them, and the owner of the lease- '■ 
 hold estate therein shall fail to repair or rebuild the same within 
 six months from the happening of the fire, this Company shall 
 
 pay to the insured or legal representatives, within thirty ; 
 
 days after demand, the sum or sums hereby insured on the ground 1 
 
 rents issuing out of such lots together with the ground rent ac- j 
 
 crued to date of said payment, not exceeding one year. This Com- ] 
 
 pany shall have the right, however, if it shall so elect, to pay ' 
 
 unto the insured or its legal representatives the value of such . 
 ground rents as agreed upon above together with the ground rent 
 
 accrued to date of payment, not exceeding one year, and on such ; 
 
 payment the insured or legal representatives shall convey j 
 
 to the Company such lot or lots of ground and the ground rents ) 
 
 incident thereto, clear of all encumbrances, save the leasehold 1 
 
 estate therein and the unpaid taxes thereon. Reserving, however, - 
 
 to the insured the right to receive and collect and by legal process \ 
 
 to recover for own use all arrears of ground rent in excess j 
 
 of one year. \ 
 
 It is understood that this insurance shall not be affected or in- 
 validated by any act or neglect of the owner or occupant of the ^ 
 above-mentioned buildings, nor by any foreclosure or other proceed- >. 
 ings or notice of sale relating thereto, nor by occupation of the 
 premises for purposes more hazardous than are permitted by this ] 
 policy, nor by the violation of any of the terms or conditions of , 
 this policy not affecting the fee simple interest. j 
 
 Lightning Clause attached. % 
 
 Another form in use, giving a somewhat narrower cover, reads ] 
 as follows: 
 
 GROUND RENT FORM (No. 2) | 
 
 It is hereby understood and agreed that in the event of the 1 
 
 above described property being destroyed or impaired by reason of \ 
 
RENT AND LEASEHOLD 359 
 
 fire, and that the leasehold interest should fail to rebuild or repair 
 said improvements within a reasonable time, beginning not later 
 than six months from the happening of said fire, this Company 
 
 shall, on demand, pay to the assured heirs or assigns, a sum 
 
 of good and lawful money of the United States, equal to the dif- 
 ference between the present value of said lot, recognized as being 
 
 $ and the sum which may be realized by the immediate sale of 
 
 said lot, not exceeding the amount insured by this policy. The sale 
 to be conducted by a representative of this Company. 
 
 It is understood that the interest of the assured in said property 
 is a reversion in fee, subject to a leasehold interest under an in- 
 denture of lease for the renewable term of years. It is un- 
 derstood that the violation of any of the terms or conditions of this 
 policy, not effecting the fee-simple interest, shall not be deemed 
 to contravene or affect this policy. 
 
 The following form is chiefly intended to protect the 
 owner or occupant of a dwelling house or apartment against 
 loss due to the expense of moving when fire renders premises 
 untenantable; also the increase of cost of temporary- 
 quarters : 
 
 ADDITIONAL COST INDEMNITY 
 
 $... .applying on premises occupied by the insured either as 
 owner or tenant for purposes and situate 
 
 If, during the term of this insurance, the building at the above 
 location is destroyed or so damaged by fire and/or lightning 
 that the premises occupied by the insured are rendered untenantable 
 and the insured occupies other premises for similar purposes, 
 this Company shall be liable for the ACTUAL LOSS THEREBY 
 SUSTAINED, not exceeding: 
 
 First: The actual cost of necessary removal of property from 
 the above named premises, and of moving it back again if said 
 premises are re-occupied by the insured; not, however, exceeding 
 10% of the amount of this policy for either removal. 
 
 Second: The cost of other suitable premises during the time 
 which would be required with reasonable diligence and dispatch, 
 to restore the above named premises to a tenantable condition, 
 or, if lease thereof is cancelled by reason of such fire or lightning, 
 then during the unexpired term of said lease, less in either case 
 any abatement of rental for the above named premises. Liability 
 for any calendar day shall not exceed l/365th of the remainder 
 of this policy after deducting the amount of claim allowed for 
 moving expenses, but shall not be limited by the expiration date 
 of this policy. 
 
360 THE AGENTS KEY TO FIRE INSURANCE 
 
 LEASEHOLD INSURANCE 
 
 Leasehold Insurance. — There are various kinds of interests in 
 leasehold which may properly be the subjects of insurance. 
 Generally speaking, a lessee has an insurable interest in lease- 
 hold if fire, by terminating his lease will cause him a direct 
 financial loss. 
 
 The most common forms of leasehold insurance are: 
 
 First: — Where a lease that iire under certain conditions will 
 terminate has been made for a term of years, and, rentals in the 
 neighborhood having risen so that a higher rental would have to 
 be paid for another suitable location, the lessee desires to protect 
 himself from the loss that would ensue from a termination of said 
 lease. The cancellation of such a lease by fire spells loss to the 
 lessee amounting to the difference between his rental for the 
 balance of the lease and the going rental for similar premises in a 
 neighborhood suitable for his particular business. The latter may 
 be determined by consultation with reliable real estate dealers 
 familiar with conditions. The policy (annual or term) should 
 be written for the whole amount of such difference, subject to 
 deductions as indicated in the example appearing under the 
 caption "Explanation of Leasehold form." What is insured here is 
 really the profit in the lease due to its enhanced value from 
 whatever cause. The interest is quite as real, though not always 
 so apparent, as in the case of premises sublet at a profit. Never- 
 theless, every lessee who is enjoying a favorable lease must 
 realize that fact and it should not prove difficult to sell him 
 insurance to protect such profit against the loss that cancellation 
 of his lease by fire would entail. 
 
 Second: — Where a leasehold has been purchased for a lump 
 sum, and the purchaser desires to obtain insurance against the 
 loss of his investment by reason of fire terminating his lease, or 
 loss of a portion of his investment by fire interrupting his use 
 of the premises. 
 
 In cases where a bonus has been paid for a lease and there 
 is a profit to be insured as well, the sum of the bonus and net 
 profit will be the amount of leasehold insurance. 
 
 For example: A purchases from B for $2,400 a lease having 
 two years to run; A subleases at a net profit (disregarding bonus) 
 of $3,600 per annum; the insurance should be for $9,600, diminish- 
 ing at the rate of $400 per month. 
 
 Third: — Where a lease, which fire under certain conditions will 
 terminate, has been executed for a term of years, or perhaps for 
 only one year, and the property has been sub-let in whole or in 
 part at a higher rental. Here the profit is apparent, being the 
 difference between his rental and the rental received from his 
 sublease. The policy (annual or term) should be written for 
 the whole amount of such difference unless there is some expense 
 
RENT AND LEASEHOLD 361 
 
 of maintenance, such as a janitor or heat, to be deducted in order 
 to arrive at the actual profit involved. This amount, when deter- 
 mined, is also subject to the further deduction indicated in the 
 later example. No such lessee should be without insurance pro- 
 tection, for his profit is right there before him, yet subject to 
 loss if fire cancels his lease. If the sub-lease did not cover the 
 entire period of the original lease, the insurance might, never- 
 theless, be for the amount of difference for the entire period at 
 the same ratio as the foregoing. 
 
 Fourth: Where a lessee is obligated to payment of rent even 
 though the premises are rendered untenantable by fire. 
 
 Such cases are comparatively rare and usually require a special 
 form to cover the particular conditions involved. 
 
 f The following forms are in use where permitted by local rules. 
 
 r. In some territories forms are mandatory and no others can be 
 used. In such cases other forms will serve only as illustrations. 
 
 LEASEHOLD INTEREST FORM NO. 1 
 
 $....on leasehold interest (term of rent from (date (a)) to 
 (date (b)) in the building, situate 
 
 It is understood and agreed that, if said building shall be 
 totally destroyed by fire, occurring during the term and under the 
 conditions of this policy, this Company shall pay the whole amount 
 hereby insured, less a deduction of $....per month for the time 
 that shall have elapsed between the date of (date (a)) and the 
 date of occurrence of said fire. And in case of such damage by 
 fire as shall, without total destruction, render said building un- 
 tenantable, this Company shall pay at the rate of $....per month, 
 to be computed from the date of such fire to the date when, by due 
 diligence, the said building could be repaired and rendered fit 
 for occupancy; but in no case shall this Company be liable for a 
 greater amount than the sum insured, nor for any loss other than 
 that which may arise under said leasehold interest. 
 
 (Attach Lightning Clause, and other necessary clauses.) 
 
 LEASEHOLD FORM NO. 2 
 
 {Excess Rental) 
 $ On his leasehold interest in the building, situate 
 
 It is the intention of this insurance to indemnify the insured 
 against loss of revenue from rents received in excess of the amount 
 to be paid by him under a certain lease dated (date) for the term 
 of twenty years, at the annual rental of $ 
 
 It is understood and agreed that if fire, occurring during thft 
 term and under the conditions of this policy, totally destroys the 
 above described building, or a sufficient part thereof to terminate 
 the aforesaid lease under its terms, this Company shall be liable 
 for the whole amount of this policy, which sum, however, shall 
 
362 THE AGENTS KEY TO FIRE INSURANCE 
 
 be decreased at the rate of $..,.per month for such time as may 
 have elapsed from the inception of the policy to the date of the 
 fire- 
 In case of fire partially destroying the building, rendering it 
 untenantable in whole or in part but not terminating the said 
 lease, this company shall be liable to the insured for loss of excess 
 rentals during the time necessary to restore the premises to a ten- 
 
 antable condition, in such proportion of $ per month as the ^ 
 
 excess rental of the untenantable portions bears to the excess * 
 rental of the entire building, both to be computed on an annual | 
 basis. I 
 
 In the event of dispute as to the time required for restoring the >j 
 said premises to a tenantable condition, such time shall be deter- ^ 
 mined by appraisal in accordance with the conditions of the policy. I 
 Note: — Policy should be written for the amount of the excess J 
 rentals for the entire unexpired period of the leasehold. \ 
 
 LESSEE'S RENT FORM NO. 3 
 
 f 
 
 (Portion of Premises Sublet) 
 
 $ On his interest as lessee in the rents of the grade floor \ 
 
 store of the building, situate J 
 
 For the purpose of this insurance the annual rental received by ' 
 the insured for the sub-lease of the grade floor store is estimated ; 
 and fixed at the amount for which this policy is written. | 
 
 It is understood and agreed that if fire, occurring during the ,' 
 term and under the conditions of this policy, totally destroys the . 
 above described building, this Company shall be liable to the in- ^: 
 sured for the amount of this policy without deduction; and if fire j 
 renders the grade floor store untenantable, but without destruction | 
 of the building or a suflScient part thereof to terminate the in- i 
 sured's lease under its terms, this Company shall be liable to the j 
 insured for the actual loss of rent ensuing therefrom, not exceed- j 
 ing the sum insured, nor l/l2th of that amount for any one j 
 month, or a proportionate amount if rendered partially untenant- i 
 able; loss to be computed from the date of the occurrence of said ; 
 fire, and to be determined by the time required, with ordinary i 
 diligence and despatch, to restore the grade floor store to a tenant- J 
 able condition. | 
 
 In the event of dispute as to the time required for restoring the 
 said premises to a tenantable condition, such time shall be de 
 termined by appraisal in accordance with the conditions of the 
 policy. . \ 
 
 LEASEHOLD FORM NO. 4 
 
 On interest as Lessee of the premises occupied by him in brick j 
 
 building and additions, situate as per lease dated ; 
 
 It is understood and agreed that in case of the cancellation of | 
 
 the assured's lease of above premises, under the conditions thereof, , 
 
 e ^ 
 
 i 
 
 ll 
 
RENT AND LEASEHOLD 363 
 
 because or by reason of fire, this Company is to pay the amount 
 of this policy. 
 
 It is understood and agreed that the lease may be cancelled by 
 the lessor, if the property be substantially destroyed by fire and 
 thereby rendered unfit for use and habitation. 
 
 Also that in case of such loss or damage, because or by reason 
 of fire, without resulting in the cancellation of said lease, which 
 renders the whole or any portion of said premises untenantable, 
 so as to cause a loss to the assured of the benefits derived as 
 Lessee of above premises, then this Company shall be liable for 
 such loss or damage during the period of restoration or repair at 
 
 the rate of $ per month for the whole premises, or an equitable 
 
 proportion for a portion thereof and for the time necessary to re- 
 pair or restore the above premises by using reasonable diligence 
 and despatch, although the loss may be in part after this policy 
 shall have expired. 
 
 It is further understood and agreed that this Company shall not 
 be liable for any claim other than loss under said leasehold in- 
 terest. 
 
 (Attach Lightning and other clauses.) 
 
 LEASEHOLD FORM 
 
 Note: — The following form was used in a case where a brewery 
 had purchased a leasehold for $3,000 and had sublet the building 
 to a customer, who agreed to pay the rent designated in the lease, 
 and also to repay to the brewery the $3,000 at the rate of $100 
 per month. The brewery's security was the leasehold, and if lease 
 was terminated by fire it would risk losing such portion of the 
 $3,000 as remained unpaid; hence the insurance. 
 
 $ On their interest in leasehold of building, situate 
 
 It is the intention of this insurance to indemnify the insured for 
 money advanced to obtain the above leasehold, in case fire ren- 
 ders the above premises untenantable, and, in accordance with its 
 terms, the said lease is for such reason terminated. 
 
 This policy shall decrease in amount at the rate of $100 for 
 each calendar month beginning with (date) until exhausted. 
 
 (Attach Lightning Clause.) 
 
 (Attach Electric Light Clause.) 
 
 (Attach Mechanics' Permit.) 
 
 (Attach Kerosene Oil Stove Permit.) 
 
 LEASEHOLD FORM 
 
 {S. E. U. A.) 
 
 $....On this leasehold interest (lease commencing and 
 
 expiring at the rate of $ per month) in the 
 
 story.. building, with roof, situate No on the 
 
 side of Street, Block No , in 
 
364 THE AGENTS KEY TO FIRE INSURANCE 
 
 This insurance is effected subject to the following conditions, i 
 
 which are hereby made warranties by the assured, and are ac- j 
 
 cepted as parts of this contract: I 
 
 It is agreed that if said building shall be totally destroyed by I 
 
 fire or lightning, this Company shall pay the whole amount < 
 
 insured under this policy, less a deduction at the rate of $ \ 
 
 per month for the time that shall have elapsed between the \ 
 
 date of this policy and the date of occurrence of total destruction , 
 
 of the building herein described. : 
 
 Provided, That in no event shall this Company be liable for 1 
 
 more than the amount for which the assured shall be liable f 
 to the owner, or original lessee, of this building, if it is rebuilt. 
 
 In case of partial destruction of this building, which shall :■ 
 
 render same temporarily untenantable, this Company shall pay \ 
 
 at the rate of $....per month for the time same shall be so \ 
 
 untenantable, but all reasonable diligence shall be used by the ' 
 
 parties in interest, other than this Company, to repair the damage ; 
 
 and place the building in condition for occupancy. i 
 
 In no case shall this Company be liable for more than the \ 
 
 sum hereby insured nor for any loss other than on said leasehold j 
 
 interest. ■ 
 
 LEASEHOLD INTEREST INDEMNITY— 
 NON VALUED 
 
 {S. E. U. A.) 
 
 $ On the Insured's Leasehold Interest in the building(s) and 
 
 additions, situate 
 
 It is a condition of this insurance that the term "Leasehold i 
 
 Interest" as used herein is defined as the increased rental value \ 
 
 of the described building to the Insured in excess of the rental \ 
 
 paid by him (or them) under a Lease date , expiring on * 
 
 ; and it is warranted by the insured that the following ? 
 
 is a complete and correct copy of the Fire Clause in said Lease and i 
 that no change shall be made in the said Fire Clause without 
 written notice to this Company. 
 
 (Insert Copy of Fire Clause in Lease.) i 
 
 If Lease contains no Fire Clause check here , in which 
 
 event this insurance shall be subject to the law governing Leases 
 of the State in which the described building(s) is situate. 
 
 It is a further condition of this insurance that commencing with ^ 
 
 the date of this policy, and extending throughout the term thereof, ""x 
 
 the amount for which this policy is written shall be automatically | 
 
 reduced at the rate of $....per month. j 
 
 In case the building(s) described herein be so damaged or [ 
 
 destroyed by fire or lightning, occurring during the term of this i 
 
 policy, as to result in cancellation of Lease in accordance with I 
 
 the Fire Clause therein (or in accordance with the State law in | 
 
RENT AND LEASEHOLD 365 
 
 the absence of a Fire Clause), this Company shall be liable to 
 the insured for the Actual Loss Sustained to the Leasehold Interest 
 insured, not exceeding the amount of this policy remaining in 
 force on the date of the fire as determined by the special terms 
 and conditions of this contract. 
 
 In case the building(s) described herein be so damaged or 
 destroyed by fire or lightning, occurring during the term of this 
 policy, as to render the building(s) wholly untenantable but 
 the Lease not being cancelled thereby, this Company shall be 
 liable to the insured for the actual loss sustained to the Leasehold 
 Interest insured, at the rate not exceeding $....per month (or 
 if partially untenantable for a pro rata proportion thereof), for 
 not exceeding such length of time (not limited by the date of 
 expiration of this policy) as shall be required, with the exercise 
 of due diligence and dispatch by the parties in interest other 
 than this Company, to again render the damaged or destroyed 
 building (s) fit for occupancy. 
 
 In no event, however, shall this Company be liable for an 
 amount greater than the amount for which this policy is written, 
 and it is a special condition of this insurance that in the event 
 of loss there shall be a deduction at the legal annual rate of 
 interest from all payments made more than sixty (60) days in 
 advance of the dates upon which the insured would have realized 
 such increased rental value in the ordinary course of business 
 had lease not been cancelled. 
 
 In case the insured and this Company are unable to agree 
 as to any questions affecting the amount of loss under this policy, 
 the same shall be determined by appraisers in the manner pro- 
 vided by the policy to which this form is attached, the provisions 
 of which policy shall govern in all matters pertaining to this 
 insurance. 
 
 In consideration of the reduced rate of premium for which this 
 policy is issued, it is agreed that in the event of cancellation 
 thereof the amount of return premium due the assured shall be 
 the difference between the initial premium charged the assured 
 and the premium earned by this Company computed on the average 
 amount of this Company's liability during the time policy shall 
 have been in force. 
 
 The following Leasehold Form is a modern one which has 
 been the subject of much favorable comment and is believed 
 to be the clearest, best and most equitable one yet devised. 
 
 LEASEHOLD FORM 
 
 1. On the interest of the insured as lessee of premises 
 
 under lease dated and expiring 
 
 2. The conditions of said lease relating to damage to or 
 destruction of the buildings by fire are as follows: 
 
366 THE AGENTS KEY TO FIRE INSURANCE 
 
 3. The term "interest of the insured as lessee" as used herein 
 is defined: 
 
 Where premises are occupied by the insured: The difference 
 between the rental value of such premises at the time of the 
 fire and the actual rental payable therefor during the unex- 
 pired term of the insured's lease; 
 
 Where the premises are sublet: The difference between 
 the total rent as fixed by the subleases in force at the time 
 of the fire and the sum of the (a) total rent payable by the 
 insured for the premises sublet and (b) any maintenance 
 and operating charges of the insured, for the unexpired term 
 of the insured's lease. 
 
 4. If by fire occurring during the term of this policy the 
 premises above described are so damaged by fire as to cause 
 the cancellation of the aforesaid lease in accordance with its 
 terms and conditions as entered above, this insurance shall be 
 liable for the actual loss sustained to the "interest of the in- 
 sured as lessee," as above defined, pro rata with other insur- 
 ance hereon, if any. Such loss shall not exceed the sum which 
 placed at interest compounded annually at the rate of four per 
 cent (4%) per annum will be the equivalent of the "interest of 
 the insured as lessee" for the unexpired term of the lease as 
 such interest would have accrued monthly. 
 
 5. If said lease is cancelled in accordance with its terms, but the 
 lessee remains in possession — as tenant at will under a new lease 
 or otherwise — this Company shall be liable for the actual loss 
 sustained by the insured to his interest as lessee, which loss shall 
 not exceed the limit of liability as stated in paragraph 4. 
 
 6. If by fire occurring during the term of this policy the above 
 described premises are damaged, which does not cause a can- 
 cellation of the lease in accordance with its terms and conditions, 
 but does render the premises untenantable in whole or in part, 
 this Company shall be liable for its pro rata proportion of the 
 actual loss sustained by the insured to his interest as lessee, at the 
 
 rate of not exceeding $ per month for total untenantability, 
 
 or a pro rata proportion thereof for partial untenantability, for 
 and during such time, but not beyond the expiration of the lease, 
 as may be necessary with the exercise of reasonable diligence and 
 dispatch to restore the premises. 
 
 7. The amount of this policy is automatically reduced through- 
 out its term in the proportion that the interest of the insured as 
 lessee decreases. 
 
 8. This policy shall be null and void if the lease herein re- 
 ferred to is altered or modified in any of its conditions that affect 
 the liability of this Company under this policy, unless assented 
 to by the Company in writing endorsed hereon. 
 
 9. In consideration of the special rate at which this contract of 
 insurance is written, this policy shall not be cancelled by the 
 
 .4 
 
 I 
 
RENT AND LEASEHOLD 367 
 
 insured for the purpose of rewriting same for term extending 
 beyond the date of expiration named in this policy, nor for the 
 purpose of rewriting same for a smaller amount at any time 
 during the life of this policy. This provision, however, shall 
 not prohibit the insured from recovering return premium on a 
 short rate basis in the event of the termination of his leasehold 
 interest from any cause. 
 
 EXPLANATION OF FOREGOINa LEASEHOLD FORM 
 
 1. Amount to he insured to cover loss caused by cancel- 
 lation of lease. 
 
 To cover loss caused by cancellation of lease, the amount 
 of the policy should be the largest amount which could be 
 collected under the terms of paragraph 4. 
 
 To illustrate this, assume that insurance is wanted on lease- 
 hold interest under a lease having ten years to run from the 
 date the policy is issued, that the leasehold interest as we 
 have defined it amounts to $100 per month, and that a fire 
 which cancels the lease occurs at 12 :01 P. M. on the date the 
 policy is issued. $100 for 12 months is $1,200, and for 10 
 years, $12,000, and if the insured could collect $12,000 at 
 once instead of monthly over the ten-year period, he would 
 be materially overpaid. For true indemnity he should not 
 collect more than the sum which at interest would produce 
 for him, or be the equivalent of, the monthly leasehold in- 
 terest collected each month during the remainder of his lease. 
 
 The number of dollars shown opposite each year, if in- 
 vested at 4% interest compounded annually, will be equiva- 
 lent to the payment of $1.00 in the middle of each year for 
 the number of years set opposite each amount. Thus $4,541 
 paid at the beginning would be the equivalent of paying $1.00 
 on July 1st for each of 5 years, which in turn is practically 
 the equivalent of paying 1/12 of a dollar each month for 5 
 years. 
 
 1 year $ .981 
 
 2 years 1.924 
 
 3 years 2.8305 
 
 4 years 3.7025 
 
 5 years 4.541 
 
 6 years 5.347 
 
 7 years 6.122 
 
 8 years 6.8675 
 
 9 years 7.584 
 
 10 years 8.273 
 
 11 years $ 8.9355 
 
 12 years 9.5725 
 
 13 years 10.1855 
 
 14 years 10.7745 
 
 15 years 11.3405 
 
 16 years 11.885 
 
 17 years 12.409 
 
 18 years 12.9175 
 
 19 years 13.3965 
 
 20 years 13.862 
 
368 THE AGENTS KEY TO FIRE INSURANCE 
 
 Hence in the assumed example $8,273 (10 year equivalent) 
 multiplied by 1200, makings $9,927.60, is the amount of in- 
 surance to be carried, and this amount under the form would 
 fully reimburse the insured. 
 
 If this term were, say, 10 years and 3 months, a result 
 
 sufficiently close for the purpose of determining the amount j 
 
 of insurance would be reached by adding to the amount 5 
 
 shown above, three times the '' monthly leasehold interest" \ 
 
 as entered in paragraph 6. Thus: i 
 
 Insurance for 10-year term $ 9,927.60 ! 
 
 Insurance for 3 months— 3 times $100 300.00 I 
 
 Amount of insurance $10,227.60 ; 
 
 2. With relation to losses which do not cause the cancella- i 
 tion of the lease. ] 
 
 In the paragraph of the form relating to losses which do I 
 
 not cause the cancellation of the lease, that is, paragraph 6, ] 
 
 the monthly leasehold interest should be entered in the blank : 
 
 space in this paragraph. This will provide for the whole I 
 
 monthly leasehold interest, or a pro rata proportion thereof -^ 
 
 if the premises are rendered partially untenantable, for the ^ 
 
 time of such untenantability. ) 
 
 3. Example illustrating Paragraphs 1 and 2: * % 
 
 Rental value of part of building occupied by in- | 
 
 sured $ 250.00 a 
 
 Rental obtained by insured from sub-tenants for \ 
 
 remainder of building in acordance with sub- i 
 
 leases outstanding 350.00 i| 
 
 AT .1,1 . 1 :, , 1 . . $600.00 i 
 
 Montnly rental under lease between m- i 
 
 sured and owner . . . : $400.00 
 
 Monthly expense for heating, janitor, 
 
 etc 100.00 500.00 
 
 Monthly leasehold interest as defined in policy 
 
 form $ 100.00 
 
 xl2 
 
 Yearly leasehold interest as defined in the form. $1,200.00 
 
 xlO 
 Leasehold interest for the remaining term of the 
 
 lease as estimated above — 10 years $12,000.00 
 
 I 
 
RENT AND LEASEHOLD 369 
 
 Present worth of these 1200 payments due in 
 monthly installments extending over 10 years, 
 as shown by application of compound discount 
 
 table $9,927.60, 
 
 which is the amount of insurance to be carried under 
 form. 
 
 4. With relation to the Reduction Clause and the Msis for 
 figuring premium. 
 
 Assume the policy is written for three years on the lease- 
 hold interest described. One year after the issue of the 
 policy the value of the insured's leasehold interest would be 
 $7,584 X 1200, or $9,101.80; two years after it would be 
 $6,867 X 1200, or $8,240.40; and at the end of the three- 
 year period it would be $6,122 x 1200, or $7,346.40. 
 
 Premium should be figured on the average amount at risk 
 at a rate determined by the rules in force in the territory 
 in which the risk is located. In the case of the three-year 
 ])olicy above referred to, the average amount at risk is 
 $8,637.00, reached as follows : 
 
 Amount of insured's leasehold interest at be- 
 ginning of term. , . $ 9,927.60 
 
 Amount of same at end of three-year term. . 7,346.40 
 
 2 ) $17,274.00 
 
 Average $ 8,637.00 
 
 Under the usual forms the amount of insurance, the reduc- 
 tion and the average are figured as follows: 
 
 Amount of insured 's leasehold interest at be- 
 ginning of term $12,000.00 
 
 Amount at end of three-year term (Deduct 
 
 36 X $100 = $3600) 8,400.00 
 
 2 ) $20,400.00 
 
 Average for three-year term $10,200.00 
 
 If the rate according to the rules in force where a risk is 
 located is 1%, and the term rule is 2^/2 times the annual rate, 
 then the three-year premium under this form will be $215.92, 
 whereas under the usual forms it would be $255.00. It will 
 therefore be apparent that the advantage of using this lease- 
 hold form over that commonly used lies in the fact that full 
 actual indemnity can be secured at a lower cost. 
 
DIVISION XIV j 
 
 USE AND OCCUPANCY, PROFITS AND COM- 1 
 MISSIONS INSURANCE— EXPLANATION 
 
 AND ILLUSTRATIVE FORMS i 
 
 These three kinds of insurance are of a kindred nature | 
 
 all being supplementary to the familiar property damage ! 
 
 insurance; they are written under special forms attached to j 
 
 the standard fire, or tornado, or earthquake, or sprinkler i 
 
 leakage, or riot, civil commotion or explosion policies, as the \ 
 
 case may be. For convenience reference hereafter will be only | 
 to losses as the result of fire, but all that is stated will be 
 
 equally applicable to the other casualties mentioned. As , 
 the terms are commonly used these kinds of insurance may 
 
 be defined as follows: j 
 
 Use and Occupancy Insurance is intended to cover loss ' 
 of (a) profits and (b) maintenance expenses or charges, due \ 
 to fire necessitating a suspension of normal operations. 
 
 There are two kinds of Profit Insurance : 
 
 First, that which is included in the use and occupancy ' 
 
 cover — namely, indemnity for loss of profits or earnings due i 
 
 to fire causing a suspension of business and consequent ina- | 
 
 bility to use premises for their normal purpose. ; 
 
 Second, indemnity for loss of profits on finished stock, or 
 
 on merchandise held for sale, by reason of its being dam- ! 
 
 aged or destroyed by fire. A use and occupancy policy does , 
 
 not cover a loss of this nature. ] 
 
 Insurance of Commissions is also of two different kinds { 
 as defined in. the preceding paragraph and covers commis- \ 
 sions in place of profits. i 
 
 Use and Occupancy Insurance, sometimes called Business ] 
 
 Interruption Indemnity, has arisen because of the serious '< 
 
 losses which fire entails that are not covered 
 
 Why under the familiar form of fire insurance ■ 
 
 Needed policy. The latter covers only against direct • 
 
 loss or damage by fire to the property involved, ■ 
 
 yet the ensuing interruption of business is often more serious ; 
 
 in its effect than the property loss. Even though every i 
 
 370 
 
I 
 
 USE AND OCCUPANCY, PROFITS AND COMMISSIONS 371 
 
 dollar of property damage is recovered, there still remains 
 to be taken into account the loss of profits, because goods 
 cannot be produced, sold or stored, and of expenses or fixed 
 charges that continue despite the interruption or suspension 
 of business. 
 
 It is essential for the average business to continue unin- 
 terruptedly, for trade quickly drifts away from the manu- 
 facturing concern that is not producing goods, or the mercan- 
 tile concern whose doors are closed. The manufacturer 
 makes his money by producing goods and selling them; if he 
 cannot manufacture, it is useless to sell, therefore he must 
 have the use of his factory else his business will largely cease 
 and with it his chance of profit. The wholesale and retail 
 merchant makes his money through being able to display 
 goods and deliver them when sold. If he has no stock and 
 no place from which to conduct business, or if he cannot 
 steadily supply his customers, then they will quickly go to 
 other dealers. Hotels are especially affected by having to 
 close their doors for a time. 
 
 Therefore, fire interrupting the normal business of the 
 manufacturer, merchant, or warehouseman, or other in- 
 dustry, whereby the production, or sale, or storage of goods, 
 or use of premises, is diminished or suspended, causes not 
 only the loss of profit derived from operation, but also loss 
 through the expense of standing charges which cannot be 
 escaped while the work of restoration is going on. 
 
 It is at this point where the regular fire insurance drops 
 the burden of loss that use and occupancy insurance picks 
 it up and carries such burden until the prem- 
 U. & O. ises can be restored to a productive condition. 
 
 Cover thus enabling the insured to keep his organi- 
 
 zation together without financial drain and 
 also to maintain net earnings unimpaired. The cover is a 
 broad one including not only net profits, but also those items 
 of expense commonly referred to as fixed or maintenance 
 charges that cannot be escaped during a period of forced 
 suspension. 
 
 The items which are usually considered in estimating the 
 value of use and occupancy are as follows, all being figured 
 on the basis of a full year's time: 
 
372 THE AGENTS KEY TO FIRE INSURANCE 
 
 Net ])rolits which would or might reasonably have 
 
 been earned but for a fire $ . . . . \ 
 
 Taxes and ground or other rent i 
 
 Interest on notes and bonds 
 
 Salaries and directors' fees \ 
 
 Royalties for machinery or processes which are 
 
 payable whether operating or not • 
 
 Wages of foreman and such skilled help as could 
 
 not be laid off ' 
 
 Salaries of salesmen under contract : 
 
 Cost of non-cancellable advertising contracts and ; 
 
 that portion of insurance premiums which must ' 
 
 continue during suspension 
 
 Cost of lighting, heating, watchman, and general ; 
 
 maintenance consistent with a condition of idle- | 
 
 ness 
 
 Other fixed charges, or special items of expense ; 
 or indebtedness, which cannot be eliminated 
 
 during a suspension of operations \ 
 
 Total $.... 
 
 Use and Occupancy Insurance equal to the sum of these < 
 
 items, or in other words equal to one year's estimated net ■ 
 
 profits and fixed expenses, should be main- j 
 
 Amount tained if complete protection is desired. If | 
 
 Necessary fire necessitates a total suspension of normal '. 
 
 operations the U. & 0. policy pays any loss 
 
 sustained up to the limit of l/300th of the amount insured : 
 
 for each working calendar day of such suspension, or l/365th . 
 
 if business is operated daily as in the case of electric light i 
 
 plants, street railways, hotels and the like. Where fire i 
 
 causes only partial interruption a proportionate amount ] 
 
 is payable. \ i 
 
 In order to provide for those business enterprises where j 
 
 the earnings fluctuate quite widely as between different ! 
 
 periods of the year forms have been devised whereby the | 
 
 limit of liability per day may fluctuate for different stated .' 
 
 periods. j 
 
USE AND OCCUPANCY, PROFITS AND COMMISSIONS 373 
 
 The forms in use do not as a rule enumerate the nature of 
 the fixed or maintenance charges that are to be covered 
 
 under a use and occupancy policy and, due to 
 Fixed the danger of some omission, it is a better 
 
 Charges contract for the insured not to have them 
 
 stated. In order, however, to show the intent 
 of the insured at the time of taking out use and occupancy 
 insurance, it is considered a good plan to keep on file an 
 accurate and detailed memorandum of the items which have 
 been included, especially the maintenance charges, such mem- 
 orandum being in the nature of an inventory. 
 
 There are certain basic principles which are of value in 
 considering use and occupancy insurance, among them the 
 following : 
 
 First, the unit of measure is one year 
 Basis whether profits are earned continuously at a 
 
 Annual fairly stable average throughout the year or 
 
 Turnover concentrated into shorter periods as in the 
 case of canneries or summer hotels. It is the 
 annual turn-over upon which insurance calculations are 
 based. 
 
 Second, use and occupancy insurance deals with the period 
 of time the other side of the fire. It is the future not the 
 
 past that is contemplated. The profits of a 
 A Contract past period are of value in determining the 
 for the amount of insurance to be carried or the loss 
 
 Future to be paid only as the future may be expected 
 
 to be a reflection of the past. The earnings may 
 be greater or they may be less, and the true spirit of such 
 insurance must take into account all the factors present at 
 the time of the fire and all of those which reasonably may 
 be forecast for a period of suspension in order to justify it 
 as real indemnity rather than a business gamble or a battle 
 of wits between the adjuster and the insured. It should be 
 borne in mind, therefore, that it is a contract of indemnity 
 with certain stated limits for it undertakes^ to pay for the 
 specified losses sustained due to fire preventing the normal 
 use of premises, whether such loss is of maintenance charges 
 that can be proven or of prospective profits that may only 
 be arrived at in the light of reason. 
 
 The foregoing demonstrates that use and occupancy insur- 
 ance is needed even though no profit has been made, if profits 
 
374 THE AGENTS KEY TO FIRE INSURANCE 
 
 jirc expected in the future, and in any case maintenance 
 charges must be considered. 
 
 Third. The amount recoverable for any one day of total 
 suspension is limited to l/300th (or l/365th) of the total 
 
 amount of the insurance. This operates with 
 No a somewhat similar effect as the coinsurance or 
 
 Coinsurance average clause which is not made a part of 
 
 use and occupancy contracts. In other words, 
 in order to sustain a total loss under a use and occupancy 
 policy the insured must have a total suspension for a full 
 year and the value of the use and occupancy must be at 
 least equal to the total amount of the insurance thereon. 
 The insured is quite at liberty to carry as much or as little 
 insurance as he likes, but whatever such amount may be he 
 
 can only collect the stated proportion thereof 
 Limit for each day. To illustrate: If the value of 
 
 Per Diem Use and Occupancy is $30,000 per annum and 
 
 insurance to that amount is maintained under 
 the usual form, the per diem payment will be l/300th or 
 $100; but if only $20,000 insurance is maintained, then, the 
 per diem payment will be l/300th of such amount, or $66.66. 
 One of the reasons for not using the coinsurance clause on 
 use and occupancy policies is the difficulty of arriving at 
 the sound value, particularly in view of the fact that there 
 is nothing in the contract to prevent a partial suspension 
 running beyond the period of one year. It is technically 
 possible, though very unlikely, that a given machine affecting 
 10% of production might not be replaceable under five years' 
 time, in which case the partial suspension loss would be for 
 such five-year period. During the war there were several 
 large concerns using imported machinery which purchased 
 use and occupancy insurance covering for one and in some 
 cases two years beyond the end of the first calendar year, 
 or in other words covering a loss that might extend over 
 600 or 900 working days instead of the customary 300. 
 
 On the other hand, the coinsurance clause is usually at- 
 tached to policies covering profits or commissions (referred 
 to later) on merchandise for sale, or finished stock, for in 
 this form of cover there is no stipulation for a per diem 
 recovery. 
 
USE AND OCCUPANCY, PROFITS AND COMMISSIONS 375 
 
 For a long time use and occupancy forms contained a 
 clause reading something "like this: ^^ During a partial sus- 
 pension the per diem liability under this policy 
 Past shall not exceed that proportion of the per 
 
 Record diem liability which would have been incurred 
 
 by a total suspension, which the decrease in 
 production bears to the full daily production at the time of 
 the fire, which shall be based upon the average daily pro- 
 
 duction for days of full operation next preceding the 
 
 fire. ' ^ In the forms recently adopted over a wide territory, 
 commonly known as the ''uniform" forms, this condition 
 has been changed by making the underlined paragraph read 
 ''due consideration being given to the experience of the 
 business before the fire and the probable experience there- 
 after." This change was brought about through recognition 
 of the fact that neither a total nor a partial loss could be 
 settled wholly on the basis of past history nor wholly on a 
 decrease in quantity of production, whether expressed in units 
 of weight, measure, or dollars of value, and that to base it 
 wholly upon past profits might prove inequitable because 
 these vary so greatly that such a yardstick might work either 
 against the insured or the company. There must inevitably be 
 something left to the judgment of the two parties to the con- 
 tract in adjusting a use and occupancy loss of any magnitude, 
 for it is manifestly impossible to forecast the future earnings 
 of any business except as an estimate. For this reason there 
 has been some consideration given to the plan of adjusting 
 U. & 0. losses after business is resumed, since then all the 
 factors are of more accurate and precise determination. The 
 chief objection urged against this has been that the insured 
 would then not have the use of the money to pay fixed 
 charges, dividends, etc. It might be possible to work out 
 such a plan by arrangihg a tentative adjustment and ad- 
 vancing a part of the loss payment on account, but this 
 would be so radical a departure from customary fire insurance 
 practice that the general plan has not disclosed many 
 supporters. 
 
 One of the questions that arises not infrequently is this: 
 What shall be considered the cost of raw materials where 
 use and occupancy is carried on one factory out of a num-* 
 ber owned by the same concern, the other factories produc- 
 ing a part or all of such raw materials'? For example: 
 
376 THE AGENTS KEY TO FIRE INSURANCE ! 
 
 j 
 
 Three factories are located at different points all owned by ] 
 the Universal Wheel Company. Plant A saws and dries 
 wood ready for turning. Plant B turns spokes, hubs and 
 rims. Plant C assembles and paints wheels for the trade. 
 It is the practice of the concern to charge a profit of 20% 
 over costs at each factory and these costs per wheel are as 
 follows : 
 
 Plant A — Raw material $ .80 j 
 
 Labor and overhead 40 
 
 Cost $1.20 i 
 
 Profit .24 I 
 
 Total $1.44 ; 
 
 I 
 
 Plant B — Raw material 1.44 \ 
 
 Freight, labor and overhead 36 
 
 Cost $1.80 ! 
 
 Profit .36 j 
 
 Total $2.16 \ 
 
 Plant C— Cost of Wood materials 2.16 \ 
 
 Paint and Iron work 14 ; 
 
 Labor and overhead .40 | 
 
 Cost $2.70 
 
 Profit .54 1 
 
 Selling Price $3.24 ' 
 
 I 
 In such case the actual cost to the Universal Wheel Com- ] 
 pany of the finished wheel is $2.10 and the profit thereon is j 
 $1.14, but said profit is distributed among the three plants. : 
 It would not be feasible to take out use and occupancy in- \ 
 surance only on plant C for the entire amount of this profit, | 
 because this would not give protection if plant A or B were ^ 
 destroyed by fire. The best way to protect the insured's ; 
 interest would be to carry blanket use and occupancy insur- 
 ance over all three plants as this brings the whole question <■. 
 of loss within the compass of one contract. If, however, i 
 this is not practicable due to their location, or other reason, i 
 the next best method would be to maintain use and occu- j 
 pancy insurance on each plant separately and include in the ^ 
 form the following provision: J 
 
 f 
 
USE AND OCCUPANCY, PROFITS AND COMMISSIONS 377 
 
 **It is understood and agreed that parts made and/or 
 furnished to this factory by other plants of the insured 
 shall be considered as costing this factory the price at which 
 they are billed to it by such other plants." 
 
 Where Use and Occupancy Insurance is written by more 
 than one company on the same plant, the amount of each 
 company's policy and the daily limit should be stated in the 
 form, rather than to have the form read for the whole 
 amount of use and occupancy insurance carried and the 
 aggregate daily limit. This is true because the ordinary pro 
 rata clause is not adapted to precisely defining each com- 
 pany's liability and daily limit. For example, assume 
 $300,000 insurance on a 300 day basis, making a daily limit 
 of $1,000. Policy for $30,000 is issued in company A with 
 a pro rata clause reading: ''This company covers a pro 
 rata proportion of the following:". While it may be clear 
 to insurance men that such language is intended to mean that 
 company A covers for $30,000 with a limit of $100 a day, 
 it has sometimes been disputed whether the pro rata clause 
 applied both to the amount of insurance and the correspond- 
 ing limit, or wholly to the amount of the insurance. 
 
 Where Use and Occupancy Insurance covers plants that 
 are in two or more locations, it is not necessary to attach 
 any distribution clause, at least under the forms customarily 
 in use. 
 
 In arriving at the amount of net profits upon which to 
 base the amount of Use and Occupancy Insurance to be car- 
 ried computation should be made as though there were no 
 Federal Income Tax. 
 
 Use and Occupancy Insurance usually specifies that loss is 
 predicated on inability to use buildings, machinery and 
 equipment and in the case of factories, raw materials. It 
 is not intended to cover profits on stocks of finished goods 
 because these have gone through the factory and can neither 
 be benefited nor harmed, per se, by loss of the use of the 
 factory. If such insurance is desired, the straight profits 
 policy should be carried. If manufactured stock is destroyed, 
 
 it might be considered that in order to indem- 
 About nify the insured for loss caused by interrup- 
 
 Finished tion of business an allowance should be made 
 
 Stock for the time necessary to manufacture stock 
 
 with which to replace any finished stock on 
 
378 TPIE AGENTS KEY TO FIRE INSURANCE 
 
 hand so that the insured's business as nearly as possible 
 would be put back where it was immediately preceding the 
 fire, but it is not the intent to cover that particular feature. 
 The reason for this is that the property insurance would 
 pay the damage to stock including the cost of manufacture 
 up to the date of the fire and furthermore a certain portion 
 of the fixed charges or expenses is included in the adjust- 
 ment of the property loss and if these were paid for under 
 a U. & 0. policy during the time of manufacturing reserve 
 stock, it would be double indemnity. The forms now in gen- 
 eral use specify that there shall be no loss during the time 
 necessary to replenish finished stock, although they do pro- 
 vide for indemnity during the time factory might have been 
 operated with the raw materials on hand at the time of the 
 fire, if these cannot be replaced by the time buildings and 
 machinery are restored to a productive condition. 
 
 In the case of mercantile risks it is not necessary to carry 
 both use and occupancy and profits insurance and usually 
 it is not material whether the stock is included within the 
 cover or not. The property insurance will pay the loss on 
 goods damaged or destroyed and the U. & 0. insurance will 
 pay for the profits that would have been earned had not 
 fire interrupted the normal use of the premises. Therefore, 
 if full insurance is carried, there will be no loss to the in- 
 sured except diversion of trade which is not covered in any 
 case. If building, equipment and stock are covered, then 
 the insurance is liable after restoration of the premises for 
 the further length of time it will take to assemble and put 
 goods on the shelves, but usually this is for such a short 
 period that the recovery would be only a relatively small 
 amount. 
 
 Use and Occupancy Insurance is especially needed by 
 manufacturers of all classes of goods, particularly advertised 
 
 brands, by large merchants, hotels, laundries. 
 Who motion picture and other theatres, warehouse- 
 
 Needs men and public utilities, such as electric light 
 
 and power plants, gas works, street railways 
 and telephone exchanges. 
 
 Use and Occupancy Insurance may be carried by the oc- 
 cupant of the building whether he is the owner or the tenant. 
 
USE AND OCCUPANCY, PROFITS AND COMMISSIONS 379 
 
 Sometimes those other than the owner or occupant of 
 factory may have an interest which is dependent on the un- 
 interrupted production therein of finished 
 Outside goods; for example, the interests of a sales 
 
 Interests agent or a commission merchant, who will 
 
 lose profits or commissions on the sale of 
 goods if they cannot be delivered because of fire occurring 
 in the factory. When protection of this kind is desired, 
 the insurance is written in the name of the sales agent or 
 commission merchant, securing him against loss of profits 
 or commissions due to the inability of the manufacturer, with 
 whom he has a contract, to deliver goods because of the hap- 
 pening of a fire. Sometimes such a policy specifies that the 
 profits or commissions tp be recovered shall be a stated per- 
 centage of the amount of the cost or selling price of goods 
 that would normally have been produced by the factory but 
 for the fire. 
 
 Another form of indemnity is where John Doe has a con- 
 tract with Richard Roe for a certain amount of goods which 
 Doe must receive regularly in order to carry on his own 
 business. If Roe cannot deliver them, Doe must go into the 
 open market and buy similar goods. In such case, the policy 
 to Doe agrees to indemnify him for the estimated difference 
 between contract price and market price, in case Roe can- 
 not produce and deliver goods because of a fire in his factory. 
 
 While Use and Occupancy Insurance customarily includes 
 both loss of profit and loss of maintenance and expenses 
 either may be insured without the other if so desired. 
 
 Where Use and Occupancy insurance is desired for a short 
 term, as in the case of a store during November and Decem- 
 ber to cover extra value because of holiday 
 Short trade, the short rate table cannot properly be 
 
 Rate applied in the same manner as in computing 
 
 the premium on ordinary fire insurance. The 
 rule should be to compute one year's Use and Occupancy in- 
 surance at the rate of per diem recovery stated, calculate the 
 premium thereon and take the short rate of such annual 
 premium for whatever period, less than one year, that the 
 policy is to be written. 
 
 For example, assume that U. & 0. insurance is desired for 
 three months (75 working days), with a recovery of $100 
 for each working day, the annual rate being 60 cents; then, 
 
380 THE AGENTS KEY TO FIRE INSURANCE 
 
 300 working days X $100 per day = $30,000 for one year, 
 and at 60 cents the premium per annum is $180. The short 
 rate for three months is 40% of the annual, and the premium 
 for three months will be $72; therefore, the policy in such 
 case will be written for $7,500 (75 working days at $100 per 
 day), and the premium will be $72. 
 
 If the usual method were followed of taking the short rate 
 of the 60 cent annual rate, which would be 24 cents for 
 three months, and multiplying this by the $7,500 insurance, 
 the premium would be only $18; this would manifestly be 
 wrong, for on this basis U. & 0. insurance might be placed 
 quarterly, and in a year the premium would be only $72 (4 
 times $18), instead of the correct annual premium of $180. 
 
 Profits or Commissions Insurance. Reference has been 
 made in the foregoing to a straight profit policy on finished 
 goods. The familiar form of fire insurance policy covering 
 merchandise undertakes only to pay the cost of reproduction 
 or replacement and therefore does not include anything 
 beyond a strict property damage. There are conditions un- 
 der which profits or commissions will be lost and cannot be 
 regained if merchandise is destroyed; such loss is a proper 
 subject of insurance. The owner of goods may insure against 
 loss of profits of goods that are manufactured and held for 
 sale or that are sold and awaiting shipment and may recover 
 roughly the difference between replacement cost and selling 
 price. Commission merchants selling goods of others often 
 insure against loss of profits or commissions on goods held 
 for sale or goods sold but not delivered while contained on 
 their own or another's premises. 
 
 Various forms are in use and illustrations will be found 
 among those printed hereafter. Sometimes such a form stip- 
 ulates that the recovery shall be a fixed percentage of the 
 selling price, or the recovery may be the difference between 
 the manufacturing cost laid down in a given warehouse and 
 the selling price less maximum discounts, or recovery may 
 be not to exceed some stated percentage of any amount of 
 loss ascertained or fixed under the insurance covering the 
 property damage to the stock. Some of the newer forms 
 omit any stated percentage and leave the matter wholly to 
 adjustment in case of loss. The theory of basing the loss 
 of profits on the adjusted property loss is predicated on the 
 thought that the owner should not have opportunity to re- 
 
USE AND OCCUPANCY, PROFITS AND COMMISSIONS 381 
 
 cover his profits on the entire value of the stock covered 
 and then make an additional prolit on the sale of the salvage. 
 In theory, the same profit may be made on sale of the salv- 
 age as would have been made on the goods had no fire 
 occurred. 
 
 The foregoing and many other instances which might be 
 cited show the wide field that exists for the sale of insur- 
 ance against indirect losses resulting from fire and as previ- 
 ously stated from other casualties which are assumed under 
 special forms of policies by fire insurance companies. 
 
 The permits and clauses to be attached to Use and Occu- 
 pancy, Profits and Commissions policies are those (so far as 
 they apply to the subject of insurance) which would be 
 attached to the ordinary fire policy covering the class of 
 property on which the Use and Occupancy, Profits and Com- 
 missions are based. 
 
 In general, they are those affecting interest, title or posses- 
 sion, and increase of hazard, such as Special Agreements 
 Nos. 1, 2, 4, 5, 6, 7 and 13 ; also, when applicable, permits for 
 Lighting, Mechanics, and the use of Gasoline or Acetylene 
 devices, etc., or the use or operation of anything else which 
 may be held to increase the hazard. 
 
 The forms which follow will serve perhaps better than 
 any explanation to illustrate the character and extent of the 
 cover for these classes of insurance: 
 
 NOTE: The following four forms are the so-called 
 "Uniform" forms which have been adopted for use in prac- 
 tically all of the territory embraced in the New England, 
 Middle, Southern, Central and Western States. 
 
 USE AND OCCUPANCY 
 
 (For Manufacturing Plants in Steady Operation) 
 "Straight U. & O." 
 
 On the Use and Occupancy of the property described below. 
 
 The conditions of this contract are that if the building (s) 
 
 situate and occupied as and/or machinery and/or 
 
 equipment* contained therein, be destroyed or damaged 
 
 by fire occurring during the term of this policy so as to neces- 
 sitate a total or partial suspension of business, this Company 
 shall be liable under this policy for the actual loss sustained 
 consisting of net profits on the business which is thereby pre- 
 vented, such fixed charges and expenses pertaining thereto as must 
 
382 THE AGENTS KEY TO FIRE INSURANCE I 
 
 necessarily continue during a total or partial suspension of busi- 
 ness and such expenses as are necessarily incurred for the purpose 
 of reducing the loss under this policy, for not exceeding such 
 length of time as shall be required, with the exercise of due 
 diligence and dispatch, to rebuild, repair or replace such part of j 
 
 said building(s) and machinery and equipment* as may j 
 
 be destroyed or damaged (commencing with the date of the fire i 
 and not limited by the date of expiration of this policy), subject j 
 to the following conditions and limits, to-wit: I 
 
 Total Suspension. — The per diem liability under this policy ! 
 
 during the time of total suspension of business of all the properties i 
 
 described herein shall be limited to the "Actual Loss Sustained," i 
 
 not exceeding 1/300 f of the amount of this policy for ] 
 
 each business day of such suspension, due consideration being j 
 
 given to the experience of the business before the fire and the * 
 
 probable experience thereafter. j 
 
 Partial Suspension. — The per diem liability under this policy ! 
 during the time of partial suspension of business shall be limited 
 to the "Actual Loss Sustained," not exceeding that portion of '■ 
 the per diem liability that would have been incurred by a total I 
 suspension of business which the actual per diem loss sustained, ; 
 during the time of such partial suspension, bears to the per diem 1 
 loss which would have been sustained by a total suspension of ^ 
 business, for the same time, of all properties described herein, ' 
 due consideration being given to the experience of the business ; 
 before the fire and the probable experience thereafter. ^ 
 
 The word "business" wherever used in this contract shall be i 
 construed to mean "The production of goods." The word "stock" i 
 wherever used in this contract shall be construed to mean i 
 "materials" or "raw stock" entering into "the production of goods." ; 
 
 The word "day," however, modified, wherever used in this j 
 contract, shall be held to cover a period of twenty-four hours. | 
 
 The liability hereunder shall not exceed the amount of insur- I 
 ance by this policy, nor a greater proportion of any loss than the • 
 insurance hereunder shall bear to all insurance, whether valid or '; 
 not, and whether collectible or not, covering in any manner the j 
 loss insured against by this policy. j 
 
 It is a condition of this insurance that the insured shall not be i 
 entitled to compensation on account of delay which may be ] 
 occasioned by any ordinance or law regulating construction or J 
 repair of buildings, or by the suspension, lapse or cancellation ! 
 of any license, or for any other consequential damage. ! 
 
 It is a condition of this insurance that as soon as practicable j 
 after any loss, the insured shall resume complete or partial opera- ' 
 tion of the property herein described and shall make use of 
 other property, if obtainable, if by so doing the amount of loss 
 hereunder will be reduced, and in the event of the insured - 
 continuing business (in whole or in part) at some other location, ! 
 
USE AND OCCUPANCY, PROFITS AND COMMISSIONS 383 
 
 or using other property during the time occupied in repairing or 
 reconstructing the property described herein, the net profits so 
 earned shall be applied to the reduction of the loss and adjust- 
 ment shall be made as provided herein for partial suspensions. 
 
 It is a condition of this insurance that surplus machinery or 
 duplicate parts thereof, equipment or supplies, and (if this policy 
 covers liability for suspension of business due to damage to, or 
 destruction of stock) surplus or reserve stock, which may be 
 owned, controlled or used by the insured shall, in the event of 
 loss, be used in placing the property in condition for continuing 
 or resuming business. 
 
 It is a condition of this insurance, if covering liability for 
 suspension of business due to damage to, or destruction of stock: 
 (1) That this Company shall not be liable for loss on account 
 of damage to or destruction of the finished product, or for the 
 time required to reproduce any finished product which may be 
 damaged. (2) That liability for suspension of business due to 
 damage to, or destruction of raw materials shall be limited to 
 that period of time for which the damaged or destroyed raw 
 materials would have furnished operating conditions for the plant; 
 but no liability shall exist on this account, unless or until actual 
 suspension of business shall have occurred through the insured's 
 inability to procure suitable materials to take the place of those 
 damaged or destroyed. 
 
 It is a condition of this insurance, if this policy covers liability 
 for suspension of business due to damage to or destruction of 
 building(s), machinery and equipment only, that this company 
 shall not be liable for any loss due to damage to or destruction 
 of finished product and/or such materials as enter into and 
 become a part of the finished product. 
 
 It is a condition of this insurance that in case the insured and 
 this Company are unable to agree as to any question affecting 
 the amount of loss under this policy, the same shall be deter- 
 mined by appraisers in the manner provided by the policy to 
 which this form is attached, the provisions of which policy shall 
 govern in all matters pertaining to this insurance, except as 
 herein provided. 
 
 Other insurance permitted. 
 
 Note 1: — Lightning and other usual clauses regarding alterations 
 and repairs, work and materials, hours of labor, protection war- 
 ranties, etc., should be added as permitted or required by local 
 rules. 
 
 *Note 2: — If liability for suspension of business due to damage 
 to or destruction of stock is to be included, insert here "and/or 
 stock." 
 
 fNote 3: — If the plant operates Sundays and holidays the fraction 
 1/300 in Total Suspension Clause must be changed to 1/365. 
 
:584 
 
 THE AGENTS KEY TO FIRE INSURANCE 
 
 USE AND OCCUPANCY 
 
 (For Manufacturing Plants Having Seasonal Operations or 
 Fluctuating Earnings) 
 
 On the Use and Occupancy of the property described below. 
 
 The conditions of this contract are that if the building(s) 
 
 situate and occupied as and/or machinery and/or 
 
 equipment* contained therein, be destroyed or damaged 
 
 by fire occurring during the term of this policy so as to necessitate 
 a total or partial suspension of business, this Company shall 
 be liable under this policy for the actual loss sustained, consisting 
 of net profits on the business which is thereby prevented, such 
 fixed charges and expenses pertaining thereto as must necessarily 
 continue during a total or partial suspension of business, and 
 such expenses as are necessarily incurred for the purpose of 
 reducing the loss under this policy for not exceeding such length 
 of time within the period of liability as defined in the "Total 
 Suspension" paragraph hereof, as shall be required with the 
 exercise of due diligence and despatch to rebuild, repair or 
 replace such part of said building(s) and machinery and equip- 
 ment* as may be destroyed or damaged (such rebuilding, 
 
 repair or replacement to commence as soon as practicable after 
 thte fire), subject to the following conditions and limits, to-wit: 
 
 Total Suspension. — The per diem liability under this policy 
 during the time of total suspension of business of all the properties 
 described herein shall be limited to the "Actual Loss Sustained," 
 not exceeding the amounts stated for each day of the respective 
 periods defined in the following table and during no other time, 
 due consideration being given to the experience of the business 
 before the fire and the probable experience thereafter. 
 
 For each business day 
 
 . Month Day Month Day 
 from to the following (inclusive) $ 
 
 Note: — The stated per diem amounts, multiplied by the respective 
 number of business days (including Sundays and holidays, if 
 business is normally operated on these days), during which each 
 amount applies shall not in the aggregate for an entire policy 
 
USE AND OCCUPANCY, PROFITS AND COMMISSIONS 385 
 
 year exceed the total amount of the policy, and the per diem 
 amounts shall be so fixed that the liability under the policy for 
 total suspension of business for an entire policy year shall be 
 the same whether such suspension be caused by several fires 
 occurring at different periods of the year or by a single fire. 
 
 NOTE : The balance of this form reads exactly the same 
 as the preceding form beginning with the caption ''Partial 
 Suspension." 
 
 USE AND OCCUPANCY 
 
 (For Mercantile or Non-Manufacturing Risks in Steady Operation) 
 "Straight U. & O." 
 
 On the Use and Occupancy of the property described below : 
 
 The conditions of this contract are that if the building(s) 
 
 situate and occupied as and/or machinery and/or 
 
 equipment and/or stock contained therein, be destroyed or damaged 
 by fire occurring during the term of this policy so as to necessitate 
 a total or partial suspension of business, this Company shall be 
 liable under this policy for the actual loss sustained consisting 
 of net profits on the business which is thereby prevented, such 
 fixed charges and expenses pertaining thereto as must necessarily 
 continue during a total or partial suspension of business, and such 
 expenses as are necessarily incurred for the purpose of reducing 
 the loss under this policy, for not exceeding such length of time 
 as shall be required, with the exercise of due diligence and 
 dispatch to rebuild, repair or replace such part of said building(s) 
 and machinery and equipment and stock as may be destroyed 
 or damaged (commencing with the date of the fire and not 
 limited by the date of expiration of this policy), subject to the 
 following conditions and limits, to-wit: 
 
 Total Suspension. — The per diem liability under this policy 
 during the time of total suspension of business of all the prop- 
 erties described herein shall be limited to the "Actual Loss 
 
 Sustained," not exceeding 1/300 t of the amount of this 
 
 policy for each business day of such suspension, due consideration 
 being given to the experience of the business before the fire and 
 the probable experience thereafter. 
 
 Partial Suspension. — The per diem liability under this policy 
 during the time of a partial suspension of business shall be 
 limited to the "Actual Loss Sustained," not exceeding that pro- 
 portion of the per diem liability that would have been Incurred 
 by a total suspension of business which the actual per diem loss 
 sustained, during the time of such partial suspension, bears to 
 the per diem loss which would have been sustained by a total 
 suspension of business for the same time of all properties described 
 herein, due consideration being given to the experience of the 
 business before the fire and probable experience thereafter. 
 
386 THE AGENTS KEY TO FIRE INSURANCE 
 
 The word "business" wherever used in this contract shall be 
 construed to mean: 
 
 (a) As to a mercantile business "The sale of goods." 
 
 (b) As to other classes of business "The carrying on of the 
 business operations usual to the class." 
 
 The word "day," however modified, wherever used in this 
 contract shall be held to cover a period of twenty-four hours. 
 
 The liability hereunder shall not exceed the amount of insurance 
 by this policy, nor a greater proportion of any loss than the 
 insurance hereunder shall bear to all insurance, whether valid 
 or not, and whether collectible or not, covering in any manner 
 the loss insured against by this policy. 
 
 It is a condition of this insurance that the insured shall not 
 be entitled to compensation on account of delay which may be 
 occasioned by any ordinance or law regulating construction or 
 repair of buildings or by the suspension, lapse or cancellation 
 of any license, or for any other consequential damage. 
 
 It is a condition of this insurance that as soon as practicable 
 after any loss, the insured shall resume complete or partial 
 operation of the property herein described and shall make use 
 of other property if obtainable, if by so doing the amount of 
 loss hereunder will be reduced, and in the event of the insured 
 continuing business (in whole or in part) at some other location, 
 or using other property during the time occupied in repairing 
 or reconstructing the property described herein, the net profits 
 so earned shall be applied to the reduction of the loss and adjust- 
 ment shall be made as provided herein for partial suspensions. 
 
 It is a condition of this insurance that surplus machinery or 
 duplicate parts thereof, equipment or supplies, and surplus or 
 reserve stock, which may be owned, controlled or used by the 
 insured shall, in the event of loss, be used in placing the property 
 in condition for continuing or resuming business. 
 
 It is a condition of this insurance that in case the insured and 
 this Company are unable to agree as to any question affecting 
 the amount of loss under this policy, the same shall be determined 
 by appraisers in the manner provided by the policy to which 
 this form is attached, the provisions of which policy shall govern 
 in all matters pertaining to this insurance except as herein 
 otherwise provided. 
 
 It is a condition of this insurance, if this policy covers liability 
 for suspension of business due to damage to or destruction of 
 building(s), machinery and equipment only, that this Company 
 shall not be liable for any loss due to damage to or destruction 
 of finished product and/or such materials as enter into and become 
 a part of the finished product. 
 
 Other insurance permitted. 
 
 Note 1: — Attach lightning and other usual clauses regarding 
 
USE AND OCCUPANCY, PROFITS AND COMMISSIONS 387 
 
 alterations and repairs, work and materials, hours of labor, 
 protection warranties, etc., should be added as permitted or 
 required by local rules. 
 
 fNote 2: — If the plant operates Sundays and holidays the fraction 
 1/300 in Total Suspension Clause must be changed to 1/365. 
 
 USE AND OCCUPANCY 
 
 (For Mercantile or Non-Manufacturing Risks Having Seasonal 
 Operations or Fluctuating Earnings) 
 
 On the Use and Occupancy of the property described below. 
 
 The conditions of this contract are that if the building (s) 
 
 situate and occupied as and/or machinery and/or 
 
 equipment and/or stock contained therein, be destroyed or damaged 
 by fire occurring during the term of this policy so as to necessitate 
 a total or partial suspension of business, this Company shall be 
 liable under this policy for the actual loss sustained, consisting 
 of net profits on the business which is thereby prevented, such 
 fixed charges and expenses pertaining thereto as must necessarily 
 continue during a total or partial suspension of business, and 
 such expenses as are necessarily incurred for the purpose of 
 reducing the loss under this policy, for not exceeding such length 
 of time within the period of liability as defined in the "Total 
 Suspension" paragraph hereof, as shall be required with the 
 exercise of due diligence and dispatch to rebuild, repair or replace 
 such part of said building (s) and machinery and equipment and 
 stock as may be destroyed or damaged (such rebuilding, repair 
 or replacement to commence as soon as practicable after the fire), 
 subject to the following conditions and limits, to-wit: 
 
 Total Suspension. — The per diem liability under this policy 
 during the time of total suspension of business of all the properties 
 described herein shall be limited to the "Actual Loss Sustained," 
 not exceeding the amounts stated for each day of the respective 
 periods defined in the following table and during no other time, 
 due consideration being given to the experience of the business 
 before the fire and the probable experience thereafter. 
 For each business day 
 
 Month Day Month Day 
 from to the following (inclusive) $ 
 
388 THE AGENTS KEY TO FIRE INSURANCE 
 
 Note: — The stated per diem amounts, multiplied by the respec- 
 tive number of business days (including Sundays and holidays, 
 if business is normally operated on those days) during which 
 each amount applies shall not in the aggregate for an entire 
 policy year exceed the total amount of the policy, and the per 
 diem amounts shall be so fixed that the liability under the policy 
 for total suspension of business for an entire policy year shall be 
 the same whether such suspension be caused by several fires 
 occurring at different periods of the year or by a single fire. 
 
 NOTE: The balance of the form reads exactly the same 
 as the preceding form beginning with the caption ** Partial 
 Suspension, ' ' 
 
 USE AND OCCUPANCY FORMS 
 (Coal Mining Plants) 
 
 The foregoing forms may be used on this class and com- 
 monly contain one or the other of the following chauses 
 
 Clause 1. "In consideration of the rate at and/or form under 
 which this policy is written, it is hereby understood and agreed 
 that this policy shall cover loss of use and occupancy of this 
 
 plant occasioned by reason of damage to the Electric Power 
 
 Plant by fire and/or lightning, whereby electric current furnished 
 by said plant to the insured shall be diminished or suspended." 
 
 Note: — Additional rate charged is usually 50% of power plant 
 rate. 
 
 Clause 2. "In consideration of the rate at and/or form under 
 which this policy is written, it is expressly warranted by the 
 assured that the power used for the operation of the plant, the 
 use and occupancy of which is insured hereunder, is secured 
 only from power plants located outside of assured's premises and 
 not owned or controlled by said assured." 
 
 USE AND OCCUPANCY (LIMITED) 
 
 {Net Profits Only) 
 On the net profits of the property described below: 
 (1) The conditions of this contract are that if the building(s) 
 
 situate and occupied as and/or machinery and/or 
 
 equipment* contained therein, be destroyed or damaged 
 
 by fire occurring during the term of this policy so as to necessitate 
 a total or partial suspension of business, this company shall be 
 liable under this policy for the actual loss sustained consisting of 
 net profits on the business which is thereby prevented and such 
 expenses as are necessarily incurred for the purpose of reducing 
 the loss under this policy, for not exceeding such length of time 
 as shall be required, with the exercise of due diligence and 
 
USE AND OCCUPANCY, PROFITS AND COMMISSIONS 389 
 
 dispatch, to rebuild, repair or replace such part of said building(s) 
 
 and machinery and equipment* as may be destroyed or 
 
 damaged (commencing with the date of the fire and not limited 
 by the date of expiration of this policy), subject to the following 
 conditions and limits, to wit: 
 
 NOTE : The balance of the form reads exactly the same 
 as the preceding forms, beginning with the caption ''Total 
 Suspension. '^ 
 
 USE AND OCCUPANCY (LIMITED) 
 
 {Fixed Charges and Expenses Only) 
 
 $....0n the fixed charges and expenses pertaining to the in- 
 sured's use and occupancy of the building...., or machinery, or 
 equipment (insert "or stock" if policy is to cover replace- 
 ment of same; otherwise policy shall not so cover) contained 
 therein, situated and occupied for 
 
 It is understood and agreed that notwithstanding any phrase- 
 ology herein to the contrary, liability is assumed hereunder only 
 for such fixed charges and expenses as are hereinafter defined. 
 
 The word "stock," wherever used in this contract shall be 
 construed to mean "materials" or "raw stock" used in the process 
 of manufacture. 
 
 The conditions of this contract are that if the above described 
 property be destroyed or damaged by fire occurring during the 
 term of this policy so as to necessitate a total or partial suspension 
 of business, this company shall be liable under this policy for 
 such fixed charges and expenses as must necessarily continue 
 during a total or partial suspension of business, and for such 
 expenses as are necessarily incurred for the purpose of reducing 
 the loss under this policy, each for not exceeding such length of 
 time as shall be required, with the exercise of due diligence and 
 dispatch, to rebuild, repair or replace such part of said property 
 as may be destroyed or damaged (commencing with the date of 
 the fire and not limited by the date of expiration of this policy) 
 subject to the following conditions and limits, to-wit: 
 
 NOTE: The balance of the form reads exactly the same 
 as the preceding forms beginning with the caption ** Total 
 Suspension. 
 
 USE AND OCCUPANCY (BUSINESS INTERRUPTION) 
 
 FORM 
 
 {For Manufacturing Plants) 
 {Illustration) 
 $. . . .On the Use and Occupancy of the buildings and machinery 
 equipment thereof occupied for manufacturing purposes and con- 
 stituting the plant known as , situate 
 
390 THE AGENTS KEY TO FIRE INSURANCE 
 
 If the said buildings and/or machinery equipment thereof be 
 so damaged or destroyed by fire, occurring during the term and 
 under the conditions of this policy, as to wholly or partially 
 prevent the insured from carrying on manufacturing operations, 
 then this Company shall be liable for the actual loss of net profits 
 thereby sustained, and for such fixed maintenance charges and 
 expenses as must necessarily continue during the period of such 
 prevention, subject to the following conditions, to-wit: 
 
 In case of total prevention liability hereunder shall not exceed 
 $...., being l/..,.of the amount of this policy, for each working 
 day of such prevention ; or, in case of partial prevention, the 
 liability hereunder shall not exceed that proportion of said amount 
 per diem that the production so prevented bears to the normal 
 production, meaning thereby the production which conditions exist- 
 ing at time of fire show might reasonably have been expected 
 during the period of such prevention. 
 
 Lightning Clause for Use and Occupancy 
 Except as provided in the Electrical Exemption Clause below, 
 this policy shall cover use and occupancy loss caused by lightning 
 (meaning thereby the commonly accepted use of the term "light- 
 ning," and in no case to include loss or damage by cyclone, 
 tornado, or windstorm), not exceeding the sum insured, nor the 
 interest of the insured in the property. Provided, however, if 
 there shall be any other use and occupancy insurance on said 
 property, this company shall be liable only pro rata with such 
 other insurance for any use and occupancy loss by lightning, 
 whether such insurance be against loss by lightning or not. 
 
 Electrical Exemption Clause 
 
 It is a special condition of this Policy that this Company shall 
 not be liable for any use and occupancy loss resulting from 
 damages to dynamos, exciters, lamps, switches, motors and other 
 electrical appliances or devices caused by electrical injury or 
 disturbance, whether artificial, natural or by lightning, unless fire 
 ensues, and then for loss by fire only. 
 
 It is understood and agreed: 
 
 That a working day means the calendar day of twenty-four 
 hours; 
 
 That loss, if any, is to be computed from date of fire to the 
 time (whether or not this falls within the term of this policy, 
 but not for more than a year following the fire) required with 
 ordinary diligence and despatch to repair or restore the damaged 
 property so that normal production may be resumed; 
 
 That if goods are produced elsewhere because of and during 
 such suspension of operations, the value of the Use and Occu- 
 pancy thus earned shall be deducted from the amount otherwise 
 recoverable under this policy, and the insured agrees to utilize 
 in such manufacturing operations, where practicable, the services 
 
USE AND OCCUPANCY, PROFITS AND COMMISSIONS 391 
 
 of employees whose wages are included under the head of 
 "Maintenance charges and expenses"; 
 
 That any surplus machinery or duplicate parts thereof, or 
 equipment or supplies, which may be owned or controlled or 
 used by the insured, shall in the event of loss be used in placing 
 the herein described buildings and/or machinery equipment in 
 condition to resume operations; 
 
 That this policy applies only to buildings and machinery that 
 contribute to the completion of the product of the plant, and all 
 storehouses and their contents are excluded unless specifically 
 provided for hereunder; 
 
 That this policy does not cover loss caused by a fire elsewhere 
 than in the above described plant. 
 
 Privilege Granted: For other insurance; for kerosene oil stoves 
 for heating and cooking; to make ordinary additions, alterations 
 and repairs; to do such work and to keep and use such materials 
 and supplies as are usual in the above described manufacturing 
 business. 
 
 Attached to and forming part of Policy No of the 
 
 Insurance Company. 
 
 USE AND OCCUPANCY 
 
 {Street Railtvay Property) 
 (Illustration) 
 
 $ On the Use and Occupancy of the electrical power plant, 
 
 car barns and shops, situate at 
 
 The conditions of this contract of insurance are that if any of 
 the buildings or machinery therein, or rolling stock contained in 
 the buildings or stored on tracks adjacent shall be so disabled by 
 fire occurring during the term and under the conditions of this 
 policy as to entirely suspend the generation and distribution of 
 electrical energy and the operation of their Street Railway lines, 
 then this Company shall be liable for an amount not exceeding 
 $. . . .per day for each working day of such suspension, and in case 
 the said buildings, machinery or rolling stock are so disabled by 
 fire as to prevent the making of a full daily average receipts from 
 fares or the sale of electrical energy, this Company shall be liable 
 per day for not exceeding that proportion of $,... which the re- 
 ceipts so prevented from being made bear to the average daily 
 receipts previous to the fire, which for the purpose of this insur- 
 ance is agreed to be the full daily average for three hundred and 
 sixty-five (365) working days immediately preceding the fire, not 
 exceeding in either case the face value of the policy. 
 
 In the event of the car service and/or supply of electrical energy 
 being restored in whole or in part by reason of the assured renting 
 cars and/or purchasing power, then the claim against this Com- 
 pany for the amount payable per day, above referred to, shall be 
 
302 THE AGENTS KEY TO FIRE INSURANCE 
 
 reduced by the amount in which the income on said day, as a 
 result of said renting of cars and/or purchasing of power, exceeds 
 the expense incurred therefor for account of said day. 
 
 It is understood that in the event of loss under this policy caused 
 by the suspension or damage of cars or buildings, the same shall 
 be, so far as possible, replaced by any available surplus cars or 
 spare parts, but the assured shall not be required to use open 
 cars when the weather is unseasonable for their use. 
 
 Loss, if any, to be computed from the day of the occurrence of 
 any fire to the time when the said buildings, machinery or rolling 
 stock could with ordinary diligence and dispatch, be repaired or 
 rebuilt and replaced and not limited to the day of expiration named 
 in this policy. 
 
 A period of twenty-four (24) hours constitutes the day referred 
 to in this policy form. 
 
 Dynamo Clause. 
 
 Permission to make additions, alterations and repairs. To run 
 all night. To use kerosene oil for lights. To have and make other 
 insurance without notice until requested. 
 
 USE AND OCCUPANCY (CANNERY) 
 
 {Illustration) 
 
 $ On the Use and Occupancy of their frame buildings, addi- 
 tions and platforms and machinery therein, situate at and occu- 
 pied by them as a canning establishment. 
 
 Total Loss. — The conditions of this contract of insurance are, 
 that, if any of the buildings used for canning purposes, or machinery 
 therein, shall be so disabled by fire or lightning during the term 
 and under the conditions of this policy, that the assured are en- 
 tirely prevented from canning the 1916 crop of vegetables and/or 
 fruit then this policy shall be liable for a total loss. 
 
 Partial Loss. — If the buildings or any part thereof shall be dam- 
 aged by fire or lightning during the term of this policy and the 
 said damage can, with ordinary diligence and dispatch, be re- 
 paired and machinery installed prior to commencement of 1916 
 canning season, then this Company shall not be liable for any loss; 
 if, however, the completion of repairs and installation of ma- 
 chinery, with ordinary diligence and dispatch, requires time after 
 the commencement of the canning season of 1916 to put the factory 
 in running order, then this Company shall be liable for actual loss 
 sustained by assured not exceeding twenty (20) cents per case for 
 overhead charges and profits for each case that the assured are 
 deprived of packing, and not exceeding ten (10) cents per case 
 profits on each case of the 1916 crop of vegetables and/or fruit 
 packed and destroyed or damaged. 
 
 It is a condition of this contract that in case fire or lightning 
 occur under conditions that the assured suffers no loss from the 
 inability to use the buildings and machinery mentioned herein 
 
USE AND OCCUPANCY, PROFITS AND COMMISSIONS 393 
 
 during the term of this policy then no claim shall be made there- 
 under. 
 
 It is hereby agreed and made a condition of this contract that 
 assured shall maintain insurance under this form to the amount of 
 
 $ and in event of loss this Company shall be liable for no 
 
 greater proportion thereof than the amount hereby insured bears 
 to $ 
 
 USE AND OCCUPANCY 
 
 (Chemical Laboratory) 
 {Illustration) 
 
 On the use and occupancy of their laboratories and offices, 
 situate 
 
 It is understood and agreed that if by reason of fire on the 
 above mentioned premises or in the above mentioned building, the 
 assured shall be put to any expense in the matter of replacing, re- 
 pairing or verifying destroyed or damaged plans, records and/or 
 manuscripts of every description, and/or owing to the necessity of 
 removal or temporary removal to other premises, and/or extra 
 expense caused by having to temporarily use or hire other labora- 
 tories, or having to farm out work to other laboratories, and also 
 covering any loss of labor actually performed, then this Company 
 shall be liable for the actual expense or loss so incurred; and this 
 Company shall also be liable for any loss the assured shall sus- 
 tain due to their inability to transact their usual amount of busi- 
 ness (based on the twelve months immediately preceding the date 
 of the fire) from the time of the fire to the date (whether same 
 shall fall within the term of this policy or not) when their regular 
 amount of business might by exercising due diligence be again 
 resumed, but in no event shall this Company be liable in the par- 
 ticular or in the aggregate for more than the amount of this 
 policy or for their pro rata proportion of the total amount of in- 
 surance carried by the assured upon use and occupancy, nor for 
 a greater proportion of any loss than this policy bears to the an- 
 nual value of the Use and Occupancy. 
 
 (Add usual clauses.) 
 
 USE AND OCCUPANCY 
 
 {Mercantile) 
 
 {Illustration) 
 On the value to them for the purposes of Use and/or Occupancy 
 
 of situate occupied as 
 
 It is agreed that if by reason of fire and/or lightning on the 
 above mentioned premises, the assured shall be wholly prevented 
 from carrying on its business, then this Company shall be liable 
 for l/300th part of this policy per day for each working day from 
 date of said fire to date (whether the same fall within the terras 
 of this policy or not) when normal business might, with reason- 
 
394 THE AGENTS KEY TO FIRE INSURANCE 
 
 able diligence have been commenced. But if the normal business 
 is diminished only, then shall this company be liable for the pro- 
 portion of said per diem as may be determined by the following 
 data: 
 
 Should fire and/or lightning cause such damage to the entire 
 first floor as to involve a complete interruption of business thereon 
 without interfering with the business of the rest of the store, then 
 thirty (30%) per cent, of the full per diem shall be paid, but if 
 only the front half of the first floor shall be involved, then 2/3ds 
 of the thirty (30%) per cent, should be paid and l/3d if the rear 
 half only is involved. 
 
 Should only the second floor be involved, 15% of per diem 
 shall be paid. 
 
 Should only the third floor be involved, 15% of per diem shall 
 be paid. 
 
 Should only the fourth floor be involved, 5% of per diem shall 
 be paid. 
 
 Should only the fifth floor be involved, 5% of per diem shall 
 be paid. 
 
 Should only the sixth floor be involved, 10% of per diem 
 shall be paid. 
 
 Should only the seventh floor be involved, 5% of per diem 
 shall be paid. 
 
 Should only the eleventh floor be involved, 5% of per diem 
 shall be paid. 
 
 Should only the basement floor be involved, 10% of per diem 
 shall be paid. 
 
 Should a portion of any of the floors except the first be involved 
 then there should be payable the proportion that that portion of the 
 floor bears to the entire floor. 
 
 Should a portion of the front half of the first floor be involved, 
 then there shall be payable the proportion that that portion of the 
 floor bears to the entire front half of the floor. 
 
 Should a portion of the rear half of the first floor be involved, 
 then there shall be payable the proportion that that portion of the 
 floor bears to the entire rear half of the floor. 
 
 In the event of loss, the front half of the first floor shall be con- 
 strued as extending eastwardly one hundred and twenty (120) 
 
 feet from the street frontage, and the rear half from a 
 
 point one hundred and twenty (120) feet eastward of the 
 
 street frontage to the rear of the building on street. 
 
 Should a fire and/or lightning cause such damage, necessitating 
 the suspension of the elevator service, then this Company shall be 
 liable in an amount (not exceeding) one-half of the total loss 
 schedule for each floor above the first, and in the event of sus- 
 pension of one or more elevators by reason of damage by fire 
 and/or lightning, then this Company shall be liable in that pro- 
 portion of. one-half of the total loss schedule for each floor above 
 
USE AND OCCUPANCY, PROFITS AND COMMISSIONS 395 
 
 the first that the number of elevators damaged bears to the total 
 number of elevators in the building. 
 
 It is understood that in arriving at the amount of insurance re- 
 quired under this form, the assured have included the estimated 
 average increase in results or profits, basing their figures on the 
 sales for the preceding year and adding thereto an amount equal 
 to such increase and this policy to cover accordingly. 
 
 The purpose of this insurance is to protect the assured against 
 loss of use of the premises in whole or in part, loss of profit, loss 
 of all fixed charges and loss of such sums as are necessary to be 
 paid by the assured for the purpose of retaining employees whether 
 under contract or not in order to maintain the organization, and 
 it is agreed that the amount of said loss shall be as above set 
 forth. 
 
 Loss, if any, to be computed from the day of the occurrence of 
 any fire to the time when the said buildings or parts thereof could 
 with ordinary diligence and dispatch be repaired and rebuilt, and 
 contents replaced, and not limited by the day of expiration named 
 in the policy. In no event shall this Company be liable for larger 
 amount than insured under this policy. 
 
 (Add usual clauses.) 
 
 USE AND OCCUPANCY 
 
 {Hotels) 
 
 On the Use and Occupancy of the hotel property, known as the 
 situate 
 
 If the aforesaid hotel property be damaged or destroyed by fire 
 during the term of this policy, whereby the assured shall sustain 
 loss of revenue therefrom, the liability of this Company for said 
 loss shall be upon the following conditions: 
 
 First: For any calendar day the revenue of which, by reason o!: 
 such fire, is nil, the loss shall not be deemed to exceed the normal 
 revenue for the day; nor shall this Company's liability therefor 
 exceed $ 
 
 Second: For any calendar day the revenue of which, by reason 
 of such fire, is impaired only, the loss shall not be deemed to 
 exceed such impairment; nor shall this Company's liability therefor 
 
 exceed that proportion of $ which such impairment shall bear 
 
 to tlje normal revenue for the day. 
 
 Third: Loss, if any, to be computed from the time of the oc- 
 currence of any fire to the time when the said hotel property could, 
 with ordinary diligence and dispatch, be repaired and/or replaced, 
 except that such computation shall not include any portion of 
 time subsequent to the expiration of this policy. 
 
 By "the normal revenue for the day" as used above is meant the 
 revenue which, but for the fire, would have been derived from the 
 said hotel property. 
 
 (Add usual clauses.) 
 
396 THE AGENTS KEY TO FIRE INSURANCE 
 
 USE AND OCCUPANCY (HOTELS) 
 
 (Illustration) 
 
 $....0n the Use and Occupancy of the building and additions 
 occupied as the hotel, situate 
 
 The conditions of this contract are, that, if said building or 
 additions and/or their contents, used for hotel purposes, shall be so 
 damaged by fire, occurring during the term and under the con- 
 ditions of this policy, that the insured is entirely prevented from 
 transacting the hotel business in the described premises, then this 
 Company shall be liable for not exceeding l/365th of the amount 
 of this policy for each day of such prevention, but if the insured 
 is only partially prevented from transacting his normal amount 
 of business, then shall this Company be liable per day for that 
 portion of the amount payable per day for total prevention by 
 which the normal business is diminished. 
 
 It is part of the consideration for which this policy is issued 
 that the insured hereby covenants and agrees to keep a set of 
 books of account showing a complete record of business transacted 
 which shall be available to aid in the determination of loss, if 
 any, under this contract. 
 
 A period of twenty-four (24) hours constitutes the day referred 
 to in this policy form, and loss, if any, to be computed from the 
 day of the occurrence of any fire to the time when the said build- 
 ing and additions could, with ordinary diligence and dispatch, be 
 repaired and rebuilt, and contents replaced, and not limited by the 
 day of expiration named in the policy. In no event shall this 
 Company be liable for a larger amount than is insured under this 
 policy. 
 
 Attach lightning, dynamo and other usual clauses. 
 
 USE AND OCCUPANCY (MOTION PICTURE 
 THEATRE) 
 
 {Suited for any Theatre) 
 {Illustration) 
 
 $,...0n the Use and/or Occupancy of the roof 
 
 building and additions, and of the equipment thereof other 
 
 than films, occupied as a Motion Picture Theatre, situate 
 
 If the aforesaid property be damaged or destroyed by fire dur- 
 ing the term of this policy, whereby the assured shall sustain loss 
 of revenue therefrom, the liability of this Company for said loss 
 shall be upon the following conditions: 
 
 First. — For any calendar day in which, by reason of such fire, 
 the revenue is nil, the loss shall not be deemed to exceed the 
 normal revenue for the day; nor shall this Company's liability 
 therefor exceed l/300th of the amount of this policy. 
 
 Second. — For any calendar day in which, by reason of such 
 fire, the revenue is impaired, the loss shall not be deemed to ex- 
 
USE AND OCCUPANCY, PROFITS AND COMMISSIONS 397 
 
 ceed such impairment; nor shall this Company's liability therefor 
 exceed that proportion of l/300th of the amount of this policy 
 which such impairment shall bear to the normal revenue for the 
 day. 
 
 Third. — Loss, if any, to be computed from the time of the oc- 
 currence of such fire to the time when the said property could, 
 with ordinary diligence and dispatch, be repaired and/or re- 
 placed. 
 
 By "the normal revenue for the day" as used above is meant 
 the revenue which, but for the fire, would have been derived 
 from such use and occupancy of said property. 
 
 This policy shall cover any direct use and occupancy loss or 
 damage caused by Lightning (meaning thereby the commonly ac- 
 cepted use of the term "Lightning," and in no case to include loss 
 or damage by cyclone, tornado, or windstorm), not exceeding the 
 sum insured, nor the interest of the insured in the property, and 
 subject in all other respects to the terms and conditions of this 
 policy. Provided, however, if there shall be any other similar in- 
 surance on said property, this Company shall be liable only pro 
 rata with such other insurance for any direct loss by Lightning, 
 whether such other insurance be against direct loss by Lightning 
 or not, however, this policy does not cover use and occupancy 
 loss due to stoppage of dynamos, motors or other apparatus for 
 generating, utilizing, regulating or distributing electricity caused 
 by any defect or break in the insulation or apparatus or by excess 
 current, whether artificial or natural. 
 
 Permission is given: For existing communications; for other in- 
 surance without notice until required; to make ordinary altera- 
 tions and repairs in the within described building, but this shall 
 not be held to include the reconstruction or the enlargement of the 
 same; to use kerosene oil and natural gas for lighting, heating and 
 cooking, providing kerosene is of the standard 110 degree test or 
 more; to do such work and to use such materials as are usual to 
 the business of Motion Picture Theatres. 
 
 (Add usual clauses.) 
 
 USE AND OCCUPANCY FORM 
 
 {School) 
 {Illustration) 
 ($100,000) On the use and occupancy of the property belonging 
 to or leased by School, situate 
 
 It is understood and agreed: 
 
 That this policy covers the annual receipts from tuition fees on 
 (200) pupils attending said school, at ($500) each; 
 
 That in the event of damage or destruction by fire of any part 
 of the property situate as- above described and occupied in connec- 
 tion with said school, the insured will use every reasonable eflFort 
 to secure and occupy other buildings or property in place of such 
 
398 THE AGENTS KEY TO FIRE INSURANCE 
 
 as may be damaged or destroyed, in order to prevent so far as 
 possible any reduction in the number of pupils in consequence of 
 the fire. The expense necessitated by such transfer of occupancy 
 shall be a part of the loss; 
 
 That the amount of loss under this policy occasioned by fire 
 shall not exceed the sum of ($500) per pupil, from which amount 
 shall be deducted the earned portion of the said ($500), which 
 shall be due and accrued at the time of fire, and no claim per 
 pupil shall be made unless the number of pupils shall be reduced 
 as the result of such fire to a less number than 
 
 (Attach % Coinsurance and the Lightning Clauses, and other 
 
 tisual or required clauses.) 
 
 USE AND OCCUPANCY FORM (SCHOOL) 
 
 {Illustration) 
 On the annual receipts of tuition fees of pupils, of the receipt 
 of which the assured is deprived by reason of fire occurring in 
 any of the buildings used for school purposes on premises situate 
 
 It is a condition of this insurance that in case of loss, the 
 liability of this Company shall be for actual loss sustained for 
 not exceeding that proportion of the amount of this policy that 
 the tuition fees receivable for the pupils which the assured is 
 unable, by reason of fire, to provide for bears to the tuition fees 
 receivable for all the pupils enrolled for the school year. It 
 is understood and agreed, however, that if fire occurs prior to 
 date of commencement of school year the tuition fees receivable 
 shall be based on the fees actually received during the previous 
 school year. 
 
 It is understood that in the event of loss or damage through 
 fire to any part of the property described herein, the assured will 
 use every effort to occupy other buildings in the place of those 
 damaged or destroyed, the expense necessitated by such transfer 
 of occupancy to be covered by this insurance, if by so doing the 
 amount of loss under this policy will be reduced. 
 
 USE AND OCCUPANCY 
 
 {Profits Only) 
 {Illustration) 
 
 (Used where one certain part necessary to finish goods manufac- 
 tured was stored in quantities until near the season for shipment, 
 when they were attached and the product delivered.) 
 
 $ On profits contingent on the use of the contents of the 
 
 three-story brick building known as the Warehouse, situate on 
 their premises at 
 
 It is the intention of this insurance to indemnify the assured for 
 loss of profits sustained by reason of the contents of said ware- 
 
USE AND OCCUPANCY, PROFITS AND COMMISSIONS 399 
 
 house being so damaged by fire, or by lightning, that the assured 
 is unable to fill orders for goods whereby profit would have been 
 realized. It is the intention of the assured to use the above de- 
 scribed building to store for their various products, and this 
 
 policy shall apply only to in their relation to the other 
 
 products of the factory. 
 
 It is understood and agreed that in case of damage by fire, or 
 by lightning, the assured will use all reasonable means to replace 
 or repair contents and to reduce the loss of profits to a minimum 
 figure. This Company shall not be liable for any greater propor- 
 tion of the loss of profits than this insurance bears to the entire 
 sura of the profits which it is calculated would have been earned 
 but for the damage caused by fire or by lightning. 
 
 It is part of the consideration for which this policy is issued that 
 the assured hereby covenants and agrees to keep a set of books 
 of account showing a complete record of business transacted, which 
 shall be available to aid in the determination of loss, if any, 
 under this contract. 
 
 By lightning is meant the commonly accepted use of the word, 
 and in no case to include loss or damage by cyclone, tornado or 
 windstorm. If there is any other similar insurance on said prop- 
 erty this Company shall be liable only pro rata with such other 
 insurance for loss by lightning whether such other insurance be 
 against such loss or not. This insurance excludes any loss or dam- 
 age to motors or other ele<:trical appliances or devices, such as 
 may be caused by electrical currents, artificial or natural, and will 
 be liable only for such loss or damage to them as may occur in 
 consequence of fire outside of the machines themselves. 
 
 It is understood and agreed that this insurance shall not be held 
 as contributing with any other form of insurance on the plant, nor 
 hold other insurance as contributing with this. 
 
 USE AND OCCUPANCY 
 
 {Special) 
 
 $125,000 — On the Use and Occupancy of the assured's reinforced 
 concrete dam and spillway and auxiliary buildings at the dam 
 site, together with the pipe line extending from the dam site to 
 the premises of the ; all situated 
 
 The conditions of this contract are that if the above described 
 dam, spillway, pipeline or any of its constituent parts, or ma- 
 chinery or supplies or material in or on the premises shall be 
 so disabled, damaged or destroyed during the term and under the 
 conditions of this policy, that the assured are entirely prevented 
 from conducting their business from said property, then this in- 
 surance shall be liable per day for the actual loss sustained not 
 exceeding l/365th part of the amount insured hereunder per day 
 for each working day of such prevention; but if the normal 
 business be diminished only, then this insurance shall be liable 
 for that proportion of the actual loss sustained not exceeding said 
 
400 THE AGENTS KEY TO FIRE INSURANCE 
 
 per diem, in which such business is diminished, due consideration 
 being given to the amount of water furnished under contract before 
 the loss and the probable experience thereafter, but under no 
 circumstances shall this company be liable in the aggregate for 
 more than the per diem rate nor for more than the amount of 
 this policy. 
 
 A period of twenty-four (24) hours constitutes the "day" referred 
 to in this policy. 
 
 Loss, if any, hereunder to be computed from the day of its 
 occurrence to the time when the said property or its constituent 
 parts or machinery, or supplies could, with ordinary diligence 
 and despatch, be restored or replaced and the normal average 
 business be resumed. Loss not to be limited by the day of expira- 
 tion named in the policy. 
 
 It is a condition of this insurance that this company shall not 
 be liable for loss under this policy except as a result of actual 
 physical destruction, disablement or damage to the property the 
 use and occupancy of which is insured hereunder, and then only 
 to the extent that such physical destruction, disablement or damage 
 shall directly affect its use and occupancy. 
 
 Other insurance permitted without notice until requested. 
 Inherent Hazard Clause 
 
 This policy is hereby amended to include all direct loss or 
 damage caused by explosion (excluding fire damage resulting 
 from such explosion) originating from any materials or processes 
 incident to the business, of the assured or of the tenants occupying 
 the buildings or premises described herein; subject in every respect, 
 however, to all the limitations and conditions of this policy. 
 
 PROFITS ON MANUFACTURED GOODS IN 
 WAREHOUSE 
 
 {Illustration) 
 
 $ On profits in case of loss of goods of the assured unfinished, 
 
 or in the various processes of finishing, while contained in the 
 storehouses of situate at 
 
 It is understood and agreed that this policy is liable for and 
 will pay on any loss that may occur on said goods as a profit, 
 a sum equal to per cent, of the amount of specific insur- 
 ance paid by the insurance companies on said goods as the amount 
 of their loss but in no case more than the amount insured herein. 
 
 (Attach full Coinsurance and other clauses.) 
 
 PROFITS INSURANCE 
 
 {Illustration) 
 On profits on manufactured goods, while contained in or on 
 their buildings and premises situate 
 
USE AND OCCUPANCY, PROFITS AND COMMISSIONS 401 
 
 It is the purpose of this insurance to indemnify the insured for 
 the difference in value between the cost of manufacture, including 
 all fixed charges and overhead expenses, and the list price of 
 their goods at the time of any fire, less the maximum trade discount 
 and less the cost of labeling and casing unlabeled goods. 
 
 (Attach full Coinsurance and other clauses.) 
 
 PROFITS OR COMMISSIONS INSURANCE 
 
 {Illustration) 
 
 Upon their profits on sales made by them of merchandise and 
 on their profits to be made on merchandise and stock while con- 
 tained on their premises awaiting order, sale or manufacture, all 
 while contained in the buildings and additions, situate 
 
 It is understood and agreed that if by reason of loss or damage 
 by fire on the above mentioned premises, said assured shall be un- 
 able to fill to the several purchasers such orders, previously re- 
 ceived, accepted by and entered upon the books of the said assured, 
 as have not at date of fire been shipped or otherwise delivered or 
 removed according to such orders, then this Company shall be 
 liable to the assured for such profits as they would have derived 
 had such orders been so filled or delivered or removed, which 
 profits shall be 20 per cent, of the amount of any order; and it is 
 also understood and agreed that if during the term of this policy, 
 the stock is destroyed or damaged by fire, then this Company shall 
 be liable for loss of 25 per cent, of the cost value of said stock, 
 while in the premises of the assured, awaiting sale, order or 
 manufacture, such 25 per cent, of the cost value being accepted as 
 the profits on such goods had they been manufactured or sold. 
 
 (Add usual clauses.) 
 
 PROFITS AND/OR COMMISSIONS FORM 
 
 {Illustration) 
 
 $ On Commissions and/or Profits of the assured and of 
 
 others for which the assured may be liable on stock of mer- 
 chandise, including boxes and packages, full and empty, samples, 
 labels, designs, materials and supplies, the property of the assured 
 or held by the assured in trust or on commission, or on storage, 
 or on joint account with others, or sold but not delivered or 
 removed; also the property of others for which the assured may 
 be liable, all while contained in the building, additions and 
 
 extensions, situate , and on and under sidewalks thereof, 
 
 and in yards and on streets immediately adjoining the above 
 described premises. 
 
 It is agreed that "Commissions and/or Profits" are understood 
 to be the difference between the assured's selling price of the 
 above described merchandise and the amount they are obliged 
 to pay their consignors for the same and that if all or any part 
 
402 THE AGENTS KEY TO FIRE INSURANCE '] 
 
 of the above described merchandise is damaged or destroyed by ' 
 fire, this Company shall pay to the assured its pro rata share ! 
 of an amount equal to the difference between the amount of \ 
 Commissions and/or Profits on the merchandise in an undamaged i 
 condition, and the amount of Commission and/or Profits actually 1 
 received by the assured on the sale of any salvage. 
 
 It is agreed that the words "the property described" and "the 
 actual cash value of said property" in the average clause attached ; 
 hereto, are to be interpreted as meaning the Commissions and/or 
 Profits on the merchandise, previously referred to. 
 
 Attach 90% Co-Insurance Clause and add usual clauses. i 
 
 •j 
 
 i 
 
 PROFITS AND/OR COMMISSIONS FORM i 
 
 {Illustration) ] 
 
 $ On commissions contingent upon the shipment of canned ; 
 
 goods from the Canning Company's plant situate i 
 
 It is understood and agreed that if by reason of fire occurring 
 during the term and under the conditions of this policy in any j 
 of the buildings comprising the above canning plant the shipment 
 of goods is prevented, the liability of this Company for loss of 
 commissions shall be upon the following conditions: i 
 
 (a) For the estimated loss of net commission upon orders i 
 previously received, accepted and entered on the books of the I 
 
 Canning Company, which it cannot fill by reason of | 
 
 said fire, such commission being % of the net amount of | 
 
 such orders. ! 
 
 (b) For the estimated loss of net commissions upon goods 
 
 unsold, but not exceeding % of the damage sustained by 
 
 such goods as determined by the adjustment of the loss thereon 
 
 (less all salvage operations) by the companies insuring such 
 goods. . 
 
 (c) For the estimated loss of commissions other than as above i 
 described which would normally be derived from the sale ' 
 
 of the normal product of the Canning Company, which ; 
 
 it is prevented from manufacturing by reason of said fire, j 
 
 such commissions to be not more than % of the net sale i 
 
 price. I 
 
 It is also understood and agreed that if goods can be procured 
 
 at some other point to fill orders which would otherwise have i 
 been filled from the above plant, the amount of commissions ' 
 earned from the sale of such other goods shall be deducted from j 
 the amount which under the terms of this policy would otherwise ; 
 be recoverable by the assured. I 
 
 That this policy shall also cover use and occupancy loss j 
 caused by lightning (meaning thereby the commonly accepted use j 
 of the term lightning, and in no case to include loss or damage by ] 
 cyclone, tornado, or windstorm), not exceeding the sum insured \ 
 
USE AND OCCUPANCY, PROFITS AND COMMISSIONS 403 
 
 nor the interest of the insured in the property. Provided, how- 
 ever, that if there shall be any other use and occupancy insurance 
 on said property, this Company shall be liable only pro rata with 
 such other insurance for any use and occupancy loss by lightning, 
 whether such other insurance be against loss by lightning or not. 
 (Attach other usual clauses.) 
 
 PROFITS AND/OR COMMISSIONS FORM 
 
 {Illustration.) 
 
 ($135,000) On their Commissions from sales of merchandise for 
 account of The conditions of this contract of insurance be- 
 ing, that 
 
 If by Reason of Fire on the premises of the above-named manu- 
 facturing corporation, the production and consequently the delivery 
 of goods to the assured entirely ceases, this policy shall be liable 
 to pay ($450) dollars per day, during such cessation; and 
 
 If by Reason of Fire on said premises such product partially 
 ceases, this policy shall be liable to pay such proportion of ($450) 
 per day as the average daily deficit in value of the product of said 
 manufacturing corporation during such partial cessation bears to 
 ($7,500), which shall be considered the value of the average daily 
 product preceding said fire. 
 
 Loss to be computed from the day of the occurrence of any fire 
 to the time when the building or buildings which were damaged 
 or destroyed could, with ordinary diligence and dispatch, be 
 repaired or rebuilt, and machinery replaced therein, and goods 
 produced and finished and ready for shipment; and not to be 
 limited by the day of expiration named in this policy; and to 
 include the loss of commissions on manufactured goods on hand in 
 said building or buildings at the time of such fire and destroyed 
 or damaged thereby. Said commissions to be computed at 6 per 
 cent, of the sound value of such goods. 
 
 (Add usual clauses.) 
 
 PROFITS AND/OR COMMISSIONS FORM 
 
 {Illustration) 
 
 $ On profits and/or commissions on finished merchandise, 
 
 sold or unsold, while contained in 
 
 If during the term of this policy such merchandise, or any 
 portion thereof, shall be destroyed or damaged by fire, this Com- 
 pany shall be liable for its pro rata share of any loss of profits 
 and/or commissions (to be ascertained as stated below) on such 
 merchandise which may result from such fire, which loss shall 
 not exceed the percentage of damage shown by the final outcome 
 of the adjustment of the loss on merchandise by companies insuring 
 same, including result of any salvage handling operations whether 
 completed before or after such adjustment; or, if there be no 
 
404 THE AGENTS KEY TO FIRE INSURANCE 
 
 insurance on said merchandise, then by such ascertainment and 
 estimate by the parties hereto as is provided for in the printed 
 portion of this policy. 
 
 Loss of profits and/or commissions shall not exceed the per- 
 centage of loss on merchandise as finally adjusted nor the per- 
 centage or percentages of profits and/or commissions that would 
 have been receivable by the insured on the date of the fire from 
 the sale of the damaged merchandise in the ordinary course of 
 the insured's business. 
 
 Where the word "property" is used in this policy or clauses 
 attached hereto, it is understood to mean commissions and/or 
 profits on the merchandise described, 
 
 (Attach Co-insurance and other usual clauses.) 
 
 Note: — Usually written at the stock rate. 
 
 PROFITS AND/OR COMMISSIONS FORM 
 
 $....0n net profits and/or net commissions on merchandise, 
 sold or unsold, while contained in 
 
 If during the term of this policy the said merchandise, or any 
 portion thereof, shall be destroyed or damaged by fire, this Com- 
 pany shall be liable for its pro rata share of any ascertained loss 
 of net profits and/or net commissions on said merchandise which 
 may result from such fire, not exceeding its pro rata share of an 
 amount equal to the net profits and/or net commissions on said 
 merchandise which would have been receivable by the insured if 
 the said merchandise had been sold in an undamaged condition 
 on the date of the fire at the insured's usual rate of net profits 
 and/or net commissions. 
 
 Where the word "property" is used in this policy or clauses 
 attached hereto, it is understood to mean net commissions and/or 
 net profits on the merchandise described. 
 
 Co-Insurance Clause. — It is a part of the consideration of 
 this policy, and the basis upon which the rate of premium is fixed, 
 that the insured shall at all times maintain insurance on net 
 profits and/or net commissions insured by this policy of not less 
 
 than per cent of the net profits and/or net commissions 
 
 which would have been earned from the sale, in the ordinary 
 course of business, of the entire stock on hand at the time of the 
 fire, and that failing so to do the insured shall be an insurer 
 to the extent of such deficit, and in that event shall bear his, her 
 or their proportion of the loss. 
 
 (Attach other usual clauses.) 
 
 NOTE: Usually written at double the stock rate, be- 
 cause a small damage to merchandise might cause a claim 
 for total loss of profits or commissions. 
 
USE AND OCCUPANCY, PROFITS AND COMMISSIONS 405 
 
 PROFITS FORM 
 
 {Contingent on loss of samples.) 
 
 $ On loss of profits consequent on the damage or destruc- 
 tion by fire, occurring during the term or under the conditions 
 of this policy, of the season's samples of hats, while contained, etc. 
 
 It is hereby understood and agreed that the loss of profits 
 referred to above is fixed for the purpose of this insurance at the 
 
 rate of $ for each sample hat destroyed or so damaged by fire 
 
 as to be unsuitable for the purpose intended. 
 
 Attach Lightning, and Coinsurance clauses, and others, 
 
 usual or required. 
 
 PROFITS OR COMMISSIONS FORM 
 
 Note. — This form may be used to cover a retail dealer in auto- 
 mobiles against loss due to non-delivery of autos because of fire 
 causing the factory where they are made to suspend production. 
 
 $100,000 on profits, contingent upon the delivery of automobiles 
 
 by the Company of , to the assured or their 
 
 customers wherever located in New England. 
 
 It is understood and agreed that the conditions of this insurance 
 are that if by reason of fire occurring in any of the buildings used 
 
 for manufacturing purposes by the Company of , 
 
 which prevents the assured from receiving automobiles for any 
 one month or months, or any part thereof, under their contract 
 
 with the said Company, then this company shall be liable 
 
 for loss of profits sustained by the non-delivery of said automobiles 
 during any month, months, or any part thereof and until such time 
 
 as the said Company of , can resume production 
 
 of cars according to its contract, and not to be limited by expiration 
 of policy, said loss of profits to be based at the rate of ten per cent. 
 (10%) of the catalog list price, but not exceeding the amount of 
 this policy. 
 
 It is further understood and agreed that after any fire and the 
 
 resumption of manufacturing by the Company of 
 
 the furnishing of excess delivery of cars above the amount speci- 
 fied for any month after the fire shall not be construed as filling 
 the contract with assured for any month or any part thereof during 
 any shut down caused by fire and previous to the resumption of 
 manufacturing by said Company. 
 
 In consideration of the rate at which this policy is written it is 
 expressly stipulated and made a condition of this contract that 
 this company shall be liable for no greater proportion of any loss 
 than the amount hereby insured bears to the actual yearly profits 
 on the property described herein at the time when said loss shall 
 happen based on the 300 working days immediately preceding 
 the fire. 
 
 (Add usual clauses.) 
 
106 THE AGENTS KEY TO FIRE INSURANCE 
 
 PROFITS OR COMMISSIONS FORM 
 
 Richard Roe and Company 
 
 $ On their profits accruing from their contracts for the pur- 
 chase of the output of from the John Doe Co., at 
 
 It is understood that the estimated output of said factory is 
 
 yards annually, on which the profit to the insured is estimated 
 and fixed for the purposes of this insurance at $ per yard. 
 
 It is the intention of this insurance to indemnify the insured for 
 loss of profits due to the suspension or diminishing of the output of 
 
 by the John Doe Co. at such factory directly resulting 
 
 from the destruction of or damage to the buildings or plant of 
 the John Doe Co. by fire and/or lightning, at the rate of l/300th 
 
 of the amount of this insurance, being $ per day, from the 
 
 time of the suspension or diminishing of said output to the date 
 
 when normal production of may with reasonable diligence 
 
 be resumed. 
 
 Should the normal production be diminished only, then this in- 
 surance shall be liable for that proportion of the said $ per 
 
 day in which said production is diminished. 
 
 It is understood that Richard Roe and Co. has no control over 
 the factory of the John Doe Co., and that said factory has the 
 privilege of working at such hours and of doing such work and 
 using such materials as may be deemed necessary, anything in the 
 policy to the contrary notwithstanding. 
 
 (Add other necessary clauses.) 
 
DIVISION XV 
 
 EXCESS, FLOATING AND GENERAL COVER 
 CONTRACTS 
 
 These terms should not be confused: Floating insurance 
 may be excess and Excess insurance may be floating, but each 
 may be one without the other, while General Cover Contracts 
 are different from either. 
 
 In a sense all insurance is floating that does not cover on 
 a specific article, or on a specific and fixed piece of property. 
 
 A floating insurance policy, as the term is gen- 
 Floating erally used, is one that covers the subjects 
 and Excess specified wherever they may be within certain 
 
 prescribed limits; it becomes excess insurance 
 when it covers values (or losses) only in excess of stated 
 amounts, or in excess of some other stipulated limit or limits. 
 An excess insurance policy may be restricted to one location, 
 and attach only on a single subject. As a rule excess insur- 
 ance, whether floating or applying to a specific location, is 
 not liable except (a) for that portion of a loss which is in 
 excess of the sum of any specific or other insurance apply- 
 ing, or (b) for loss in excess of a stated amount. For ex- 
 ample, a concern may maintain $1,000,000 specific insurance 
 and in addition have an excess policy for $200,000. In such 
 case the excess policy is liable only for any loss that exceeds 
 $1,000,000. 
 
 Where excess insurance is maintained, the specific or other 
 insurance policies often bear a clause reading somewhat as 
 follows : 
 
 ''Any excess insurance covering property herein de- 
 scribed shall not be held as contributing insurance with 
 this policy. ' ' 
 
 An excess policy covering at one specific location often 
 bears a clause reading somewhat as follows: 
 
 **Any floating excess insurance Covering property de- 
 scribed herein shall not be held as contributing insur- 
 ance with this policy." 
 
 407 
 
408 THE AGENTS KEY TO FIRE INSURANCE 
 
 A General Cover Contract, while it may provide for insur- 
 ance anywhere within wide limits, is not floating insurance, 
 
 because it requires that insurance shall be spe- 
 General cific at stated locations which are given in de- 
 
 Cover tail in the statements of value which the 
 
 Contracts insured must render under the terms of said 
 
 agreement. The General Cover Contract is not 
 a policy of insurance, but rather a contract to insure under 
 specific policies to be written in accordance with rates and 
 rules applying where the property is located; it is in the 
 nature of a general binder for a stated amount, the specific 
 amounts and locations making up the aggregate to be fur- 
 nished at a stipulated time. 
 
 This form of contract to insure is required by large con- 
 cerns having property in many different localities, usually 
 •y^jjy in different States, where the values, though 
 
 Necessary fairly stable in the aggregate, fluctuate so 
 rapidly as between the various locations that 
 it makes it a practical impossibility to keep covered with 
 separate insurance at each location. With constant ship- 
 ments to and from widely separated locations it would often 
 happen that insurance would be in excess of — or less than — 
 the actual value at any one point, and in the latter case the 
 insured would be without adequate insurance protection. As 
 a rule. General Cover Contracts are written only on merchan- 
 dise in warehouses, stores, piers, railway terminals, etc., and 
 do not cover in any manufacturing plant or plant warehouses. 
 
 The rules governing the issuance and forms of General 
 Cover Contracts have not as yet become settled practice, and 
 some of the conditions set forth in the sample form may re- 
 quire changing. 
 
 The theory upon which increases and decreases at specific 
 locations are permitted at pro rata rates, providing there is 
 no change in the aggregate amount of insurance (see form), is 
 that the insurance in such case is transferred, thus following 
 the usual rule whereby it is permissible to cancel insurance 
 pro rata when it is to be rewritten as of the same date in 
 another location; but if the aggregate amount is diminished 
 this must be at short rates. 
 
 Sample forms for Moating insurance and for Excess in- 
 surance are given herewith ; also a sample of a General Cover 
 Contract : 
 
EXCESS, FLOATING AND GENERAL COVER CONTRACTS 409 
 
 FLOATER FORM (LIMITED) 
 
 {Neiv York City) 
 
 On merchandise consisting principally of excluding cotton 
 
 and other vegetable fibre, tobacco and its products, and petroleum 
 and its liquid products, the property of the assured, or held by 
 the assured in trust or on commission, or on joint account with 
 others, or sold but not delivered, while contained in any or all 
 of the brick, stone or concrete buildings occupied exclusively 
 for storage purposes, and while in transit in or on any of the 
 streets, yards, wharves, piers and bulkheads, in any of the Boroughs 
 of the City of New York, or in the Cities of Jersey City and 
 Hoboken, N. J., and while afloat in transit in the ports of said 
 Cities; subject to the following conditions of co-insurance and 
 to the exceptions named below: 
 
 New York Standard Average Clause 
 
 This Company shall not be liable for a greater proportion of 
 any loss or damage to the property described herein than the 
 sum hereby insured bears to one hundred per centum (100%) 
 of the actual cash value of said property at the time such loss 
 shall happen, nor for more than the proportion which this policy 
 bears to the total insurance thereon. 
 
 If the insurance under this policy be divided into two or more 
 items, this Average Clause shall apply to each item separately. 
 
 Exceptions. — This policy does not cover any property which 
 shall at the time of any fire be more specifically insured by this 
 Company or any other insurer. 
 
 This policy does not cover on the piers or in the buildings or 
 premises of the New York Central & Hudson River Railroad Co., 
 between 27th and 33rd Streets, and between 62nd and 68th Streets, 
 New York City; nor on the piers or in the buildings or premises 
 of the Erie Railroad, the Central Railroad of New Jersey, the 
 Lehigh Valley Railroad, the Delaware, Lackawanna & Western 
 Railroad and the Pennsylvania Railroad, in Jersey City and 
 Hoboken, New Jersey; nor in any grain elevator or elevator 
 store; nor in any furniture storage store; nor in any building 
 occupied in whole or in part for cold storage purposes (i. e., 
 where artificial refrigeration is used) ; nor in any building occu- 
 pied wholly or in part by the insured. 
 
 Other insurance permitted without notice until required. 
 
 EXCESS FLOATER FORM 
 
 {Neiv York City) 
 On merchandise consisting principally of excluding cot- 
 ton and other vegetable fibre, tobacco and its products, and 
 petroleum and its liquid products, the property of the insured, 
 or held by the insured in trust or on commission, or on joint 
 account with others, or sold but not delivered, while contained 
 
410 THE AGENTS KEY TO FIRE INSURANCE 
 
 in any or all of the brick, stone or concrete buildings occupied 
 exclusively for storage purposes, and while in transit in or on 
 any of the streets, yards, wharves, piers and bulkheads, in any 
 of the Boroughs of the City of New York, or in the Cities of 
 Jersey City and Hoboken, N. J., and while afloat in transit in the 
 ports of said Cities; subject to the following conditions of co- 
 insurance and to the exceptions named below: 
 (1) New York Standard Co-Insurance Clause for Excess Floating 
 Policy. 
 
 "If any property included in the terras of this policy shall at 
 the time of any loss be more specifically insured by this company 
 or any other insurer, this policy shall extend to cover such prop- 
 erty only so far as relates to any excess of value not covered by 
 such other insurance, whether valid or not, and this policy shall 
 be liable on such more specifically insured property only for such 
 loss as shall be in excess of the amount payable by or recoverable 
 from such more specific insurers, whether solvent or otherwise, 
 but in no event shall this Company under this policy be liable for 
 a greater proportion of any loss than the amount of this policy 
 
 shall bear to per cent ( %) of the total cash value 
 
 of the property covered by this policy (including such excess 
 value) at the time of any loss." 
 
 Exceptions. — This policy does not cover on the piers or in the 
 buildings or premises of the New York Central & Hudson River 
 Railroad Co., between 27th and 33rd Streets, and between 62nd and 
 68th Streets, New York City; nor on the piers or in the buildings 
 or premises of the Erie Railroad, the Central Railroad of New 
 Jersey, the Lehigh Valley Railroad, the Delaware, Lackawanna 
 & Western Railroad and the Pennsylvania Railroad, in Jersey City 
 and Hoboken, New Jersey; nor in any grain elevator or elevator 
 store; nor in any furniture storage store; nor in any building 
 occupied in whole or in part for cold storage purposes (i. e., 
 where artificial refrigeration is used) ; nor in any building occu- 
 pied wholly or in part by the insured. 
 
 Other insurance permitted without notice until required. 
 
 EXCESS FLOATER FORM 
 
 {Neiv York City) 
 
 On cotton and other vegetable fibre, the property of the assured 
 or held by the assured in trust or on commission or on joint ac- 
 count with others or sold but not delivered, while contained in 
 any or all of the brick, stone or concrete buildings occupied exclu- 
 sively for storage purposes, and while in transit in or on any of 
 the streets, yards, wharves, piers and bulkheads, in any of the 
 Boroughs of the City of New York, or in the Cities of Jersey 
 City and Hoboken, N. J., and while afloat in transit In the ports 
 of said cities; subject to the following conditions of co-insurance 
 and to the exceptions named below: 
 
 (Balance of this form is the same as the foregoing.) 
 
EXCESS, FLOATING AND GENERAL COVER CONTRACTS 411 
 
 CLOTHING FLOATER FORM 
 
 $ On clothing manufactured and in process and all materials 
 
 and supplies used in the making or repairing thereof, including 
 labor of employees, while contained in the dwellings, shops or 
 rooms of tailors and their employees, being made up for the trade 
 of the insured, situate within the boundaries of the City of 
 
 It is understood and agreed that this policy does not cover direct 
 or indirect loss by fire in the main manufacturing premises of the 
 
 insured, situate ; that in case of specific insurance on any 
 
 property covered by this policy, this Company shall not be liable 
 unless and until the amount of loss exceeds the said specific insur- 
 ance, and then for the excess amount only; that this policy shall not 
 be invalidated by any act or neglect of any occupant of the build- 
 ings containing the property insured; that permission is given to 
 keep and use such materials and supplies as are necessary, for 
 other insurance, and to make additions, alterations and repairs. 
 
 (Add other usual or required clauses, including Coinsurance.) 
 
 CLOTHING FLOATER FORM 
 
 $ On clothing manufactured and in process and all materials 
 
 and supplies used in the making or repairing thereof, including 
 labor of employees, while contained in the dwellings, shops or 
 rooms of the tailors and their employees, being made up for the 
 trade of the insured, situate within the boundaries of the City of 
 
 It is understood that the liability of this Company under this 
 policy is limited in any one building, or by any one fire, to ten 
 per cent. (10%) of the amount hereby insured. In the event of a 
 conflagration, or the burning of two or more buildings, it is under- 
 stood that for the purpose of this insurance the burning of each 
 separate building will be considered a separate fire, and subject 
 the Company to its corresponding liability. In case of specific in- 
 surance on any property covered by this policy, this Company shall 
 not be liable unless and until the amount of loss exceeds the said 
 specific insurance, and then for not to exceed ten per cent. (10%) 
 of this policy. 
 
 It is understood and agreed that this policy shall not be in- 
 validated by any act or neglect of any other occupant of the build- 
 ings containing the property insured. 
 
 (Add usual or required clauses, including coinsurance.) 
 
 Note: — The following condition is sometimes included in the 
 clothing floater forms: 
 
 "It is also expressly agreed and understood that if any part 
 or portion of any suit manufactured or partly manufactured or 
 in process of manufacture, or any materials manufactured or 
 unmanufactured, or in process of manufacture, intended to form 
 part of an entire suit shall be destroyed or damaged and the 
 
412 THE AGENTS KEY TO FIRE INSURANCE ] 
 
 I 
 1 
 
 assured cannot in the open market obtain materials for the pur- ] 
 
 pose of repairing or replacing the part or portion so damaged j 
 
 or destroyed then and in that event, this company shall pay the j 
 
 actual cost of entire suit, upon surrender to the company of the 1 
 
 undamaged portions thereof, manufactured or unmanufactured or j 
 
 in any process or manufacture, and the assured warrants that ., 
 
 he will first endeavor to repair such portion damaged or de- \ 
 
 stroyed, if it be possible to do so with reasonable diligence, | 
 
 within fifteen days from the date of such fire or fires and this i 
 
 clause shall apply whether such suit shall be located or be in \ 
 
 process of manufacture in one place or in different portions } 
 
 thereof in different places." j 
 
 1 
 
 MANUFACTURING FLOATER FORM ' 
 
 On and on goods and materials for making same, finished j 
 
 and unfinished, the property of the assured, or held by the assured j 
 
 in trust, while in possession of other parties to be made up, and j 
 
 while contained in any building in excepting any place or | 
 
 building used for a prison or penal institution, and excepting in any : 
 building occupied in whole or in part by the assured. 
 
 This policy does not apply to or cover in any premises where ; 
 
 the above goods or materials are sent for the purpose of being ; 
 
 cleaned, sponged, dyed, shrunk or refinished; nor while in any ' 
 
 express office or depot, nor while in charge of any express or rail- : 
 
 road company or other common carrier. ! 
 
 It is further expressly understood and agreed that this insurance ; 
 
 shall not cover on any lot or parcel of goods which shall be more j 
 
 specifically or definitely located or described in any other insurance ■ 
 
 in this Company, or in any other Company or Association, except- \ 
 
 ing on the excess of value of such property over and above such ; 
 
 specific insurance, and this Company shall only be liable on such -, 
 
 specifically insured property for its share of such loss, after all j 
 
 such specific insurance is exhausted. \ 
 
 Also that wherever this insurance may cover, not more than ; 
 
 $..., (10 per cent, of the face of the policy) shall apply or cover i 
 
 in any one building, and in no event shall this Company be liable ; 
 
 for any greater proportion of any loss than the amount insured j 
 
 bears to the actual cash value of all the property covered by this '■ 
 
 policy. ' 
 
 Other insurance permitted without notice until required. ! 
 
 1 
 THEATRICAL FLOATER 
 
 $ On personal effects, theatrical costumes and equipments ■ 
 
 (except money, bullion, deeds, evidences of debt and securities of I 
 
 any kind, manuscripts, merchandise, automobiles or motor cycles ! 
 
 of any kind), the property of the assured and family and servants I 
 
 accompanying assured or family wherever they may be, or while j 
 
EXCESS, FLOATINQ AND GENERAL COVER CONTRACTS 413 
 
 being transported by train, boat, or conveyance of any kind, in 
 the United States of America or Canada. 
 
 It is understood and agreed that this policy does not cover in 
 any place where the assured has specific insurance on the above 
 described property, or while in the residence of the assured. 
 
 It is understood that if, in case of loss, and by reason of such 
 loss, the assured shall acquire a right of action against any 
 individual, firm or corporation for damage to the property above 
 described, assured will sign and transfer such claim to this com- 
 pany upon receiving payment for loss from this company, and 
 subrogate this company to all assured's rights and demands of 
 every kind respecting the same, and permit suit to be brought in 
 assured's name, but at this company's risk and expense. 
 
 In case the property above described shall be in different places, 
 this policy covers at each place that proportion of the whole amount 
 of this policy that the value of the property in each place bears 
 to the value of all. 
 
 But it is at the same time declared and agreed that if any prop- 
 erty included in the terms of this policy shall at the time of any 
 fire be insured in any Marine Insurance Company, this policy shall 
 not extend to cover the same, excepting only as far as relates to any 
 excess of value beyond the amount of such Marine insurance or in- 
 surances, and shall not be liable for any loss unless the amount 
 of such loss shall exceed the amount of such Marine insurance or 
 insurances, which said excess only is declared to be under the pro- 
 tection of this policy. It being the true intent and meaning of this 
 agreement that this Company shall not be liable for any loss, un- 
 less the amount of such loss shall exceed the amount of the Marine 
 insurance or insurances, and then only for such excess. 
 
 This policy shall cover any direct loss or damage caused by 
 lightning (meaning thereby the commonly accepted use of the term 
 lightning, and in no case to include loss or damage by cyclone, 
 tornado or wind-storm), not exceeding the sum insured, nor the in- 
 terest of the assured in the property, and subject in all other re- 
 spects to the terms and conditions of this policy. Provided, how- 
 ever, if there shall be any other insurance on said property, this 
 Company shall be liable only pro rata with such other insurance 
 for any direct loss by lightning, whether such other insurance be 
 against direct joss by lightning or not. 
 
 THEATRICAL FLOATER FORM 
 
 {Attached to Inland Marine Policy) 
 On Scenery, Costumes and Theatrical Properties of every de- 
 scription used in the production of the Play known as 
 
 (warranted only one company of that name) against loss or 
 damage caused by fire, collision or derailment, to an aggregate 
 
 amount in all places of dollars while in transit by, or in 
 
 the custody of, any Railroad, Express, Transfer and/or other 
 Transportation Company, while on land, and against Marine 
 
414 THE AGENTS KEY TO FIRE INSURANCE 
 
 perils while on Ferries, and/or in cars on Transfers in con- 
 nection therewith, and against fire while contained in any business 
 or theatrical building. 
 
 Also risks against above-mentioned perils while on Docks, 
 Wharves, Piers and/or Bulkheads, and/or Depots, Stations and/or 
 on Platforms, incidental to transportation. 
 
 This Policy to attach and cover from noon of 19 , 
 
 to noon of 19 , standard time at place of insurance. 
 
 Subject to terms and conditions on back of application. 
 
 Applicant. 
 
 Approved 
 
 19.... 
 
 LAUNDRY FLOATER (PERSONAL) 
 
 iS. E. U. A.) 
 
 $ On the used personal property of assured and family while 
 
 temporarily removed from the place where it is ordinarily kept to 
 any building or premises occupied for laundry or dry cleaning 
 purposes, located in 
 
 This policy does not cover or attach in or on the premises of the 
 assured. 
 
 It is hereby stipulated that in case the property covered hereun- 
 der is in more than one place, this policy is to attach in each loca- 
 tion in proportion as the value in each bears to the value in all. 
 
 This policy shall cover any direct loss or damage caused by 
 lightning (meaning thereby the commonly accepted use of the term 
 lightning, and in no case to include loss or damage by cyclone, 
 tornado or wind-storm) not exceeding the sum insured, nor the 
 interest of the insured in the property, and subject in all other 
 respects to the terms and conditions of this policy. Provided, how- 
 ever, if there shall be any other insurance on said property, this 
 Company shall be liable only pro rata with such other insurance 
 for any direct loss by lightning, whether such other insurance be 
 against direct loss by lightning or not. 
 
 It is a part of the consideration of this policy, and the basis upon 
 which the rate of premium is fixed, that the assured shall at all 
 times maintain insurance on each item of property insured by this 
 policy of not less than seventy-five per cent, of the actual cash 
 value thereof, and that, failing so to do, the assured shall be an 
 insurer to the extent of such deficit, and in that event shall bear 
 his, her or their proportion of any loss. 
 
 But it is at the same time declared and agreed that if any 
 specific property described above, included in the terms of this 
 policy, shall, at the time of any fire, be insured in this or any other 
 company, this policy shall not extend to cover the same, excepting 
 only as far as relates to any excess of value beyond the amount 
 of such specific insurance, and shall not be liable for any loss 
 
EXCESS, FLOATING AND GENERAL COVER CONTRACTS 415 
 
 unless the amount of such loss shall exceed the amount of such 
 specific insurance (disregarding the liability of the assured as an 
 insurer under any coinsurance clause, under such specific insurance), 
 which said excess only is declared to be under the protection of 
 this policy and gubject to average aforesaid. 
 Other concurrent insurance permitted. 
 
 EXCESS INSURANCE FORM 
 
 {Illustration) 
 
 $....0n stock consisting principally of while contained 
 
 in the building and additions adjoining and communicat- 
 ing, situate 
 
 It is hereby understood and agreed: 
 
 That the insured shall maintain $ specific insurance on 
 
 the above described stock; that this insurance shall not be liable 
 
 for any loss except for that portion in excess of said $ , and 
 
 then only in the proportion that the total amount of the insurance 
 under this policy shall bear to the excess of the value of stock 
 over the said $. 
 
 (Attach usual clauses.) 
 
 EXCESS INSURANCE FORM 
 
 {Illustration) 
 
 $ On the building and additions adjoining and communicat- 
 ing, and on all contents thereof, (including property specifically 
 enumerated in the policy on which liability is required to be spe- 
 cifically assumed, but excluding accounts, bills, currency, deeds, evi- 
 dences of debt, money, notes, or securities), belonging to the in» 
 sured, or in which the insured has an interest to the extent of such 
 interest, or for which the insured may be liable at the time of 
 fire, occupied principally for purposes, situate 
 
 It is understood and agreed that this insurance shall not be 
 prejudiced by the fact that any of the property herein insured 
 is located on land to which the assured has not title in fee simple, 
 it being the intention that the insurance covers on any and all 
 buildings and property as specified herein that are located on land 
 for which assured holds lease, easement, right of way or any 
 other title; and also covers in cases where as yet no title has been 
 acquired. It is further understood and agreed that any error in 
 description, location, situation, occupation or non-occupation of any 
 building or other property named herein shall not operate to the 
 prejudice of the insured. 
 
 Other insurance permitted without notice until required. 
 
 It is understood and agreed that this insurance does not cover 
 cost of excavations and foundations of buildings below the level of 
 the ground. 
 
41() THE AGENTS KEY TO FIRE INSURANCE 
 
 It is understood and agreed that above property may be occu- 
 pied or used for such purposes as the interest of the assured may 
 require with the customs and hazards incident thereto and may 
 be unoccupied during the customary season. 
 
 Permission for mechanics and others to work on the premises day 
 and night, and to make ordinary additions, alterations and repairs 
 but this shall not be held to include the constructing or recon- 
 structing of the building or buildings or the erection of an addi- 
 tion or the enlargement of the premises. 
 
 All the foregoing provisions to be held binding as special agree- 
 ments, anything in this policy contained as to storage or occupancy, 
 use of property, or as to its hazardous or extra hazardous charac- 
 ter or otherwise to the contrary notwithstanding. 
 
 Electric Light Clause and Lightning Clause attached. 
 
 It is understood and agreed that this insurance shall not attach 
 and that no claim shall be made hereunder unless the loss on the 
 property above described, by or in consequence of any one fire ex- 
 ceeds $100,000 and then this insurance shall be liable only for its 
 proportion of loss in excess of said $100,000. 
 
 This Company shall not be liable for a greater proportion of 
 any loss or damage to the property described herein than the sum 
 hereby insured bears to ninety (90%) percentum of the actual cash 
 value of said property at the time such loss shall happen. 
 
 NOTE : The following form, was used to protect a tele- 
 phone company against loss on telephone apparatus in hand? 
 of subscribers scattered throughout a given city. 
 
 TELEPHONE COMPANY FLOATER 
 
 Telephone Company. 
 
 $....0n the telephones, telephone instruments, switchboards, 
 exchanges, wires, cables, operating tables and attachments and 
 all other equipment and paraphernalia and furniture and fixtures 
 pertaining thereto, while contained in or on, or attached to any 
 
 building or buildings in the corporate limits of , except 
 
 the premises of the insured occupied by them for Central Office 
 Telephone Exchanges and supply warehouses and property upon 
 which they have specific insurance, covering such property against 
 the same hazard. 
 
 In consideration of the rate and/or form under which this 
 contract is written, it is expressly understood and agreed that 
 the insured shall not make claim for any loss less than $.,.. 
 in amount nor shall this Company be liable for more than its 
 pro rata proportion of $. .. .in any one building, or communicating 
 building not separated by fire walls or standard cut off. 
 
 In case of loss or damage the insured shall give this Company 
 notice thereof without delay, but may make immediately all 
 
EXCESS, FLOATING AND GENERAL COVER CONTRACTS 417 
 
 necessary repairs, and shall not be required to furnish proofs of 
 loss until such repairs have been completed. 
 (Attach coinsurance and other usual clauses.) 
 
 NOTE: This form was used to protect a gas company 
 against loss, due to explosion of any of its meters, in case 
 it was held liable for ensuing damage. 
 
 GAS COMPANY LEGAL LIABILITY 
 
 On its legal liability for damage to property wherein gas is 
 served by the insured located 
 
 This policy does not cover damage to city or other public prop- 
 erty, or to public streets, highways and pavements, or to property 
 in, on or under streets, highways and pavements. 
 
 It is understood and agreed that this legal liability insurance 
 does not apply to any properties occupied by the insured. 
 
 Anything in the printed conditions of this policy to the con- 
 trary notwithstanding, liability hereunder is limited to direct loss 
 or damage to property by explosion of natural gas served by 
 the insured for a consideration in said city; but damage by 
 fire is not covered whether resulting from such explosion or not. 
 
 The liability of this company in any one loss is hereby limited 
 to 
 
 It is hereby warranted by the assured that there were twenty- 
 three thousand meters in use as shown by its books at the time 
 this policy was issued and it is a condition of this insurance 
 that if the number of meters increase in an amount exceeding 10% 
 of the original total, then in event of loss this insurance shall 
 not be liable for an amount greater than the original number of 
 meters insured bears to 90% of the total number of meters in 
 use at the time of loss. 
 
 It is a condition of this contract that the insured shall give 
 immediate notice of any claim for damage to property served 
 by it, and that the insured shall immediately forward to the 
 company's home office copies of every summons or other process 
 as soon as same is served. No expenses of adjustments, attorneys' 
 
 fees, or legal expenses of any nature shall be charged to 
 
 Insurance Company without its knowledge and consent. 
 
 GENERAL COVER CONTRACT 
 
 {Illustration) 
 In consideration of one dollar ($1) and further considerations 
 under the terms, conditions and stipulations hereinafter mentioned 
 
 does insure for the term of one year from the 
 
 day of 19 , at noon, to the day of 19 , 
 
 at noon, against all direct loss or damage by fire or lightning, 
 to an amount not exceeding per cent. (%) of the value 
 
418 THE AGENTS KEY TO FIRE INSURANCE 
 
 of the property as shown by the statements of values rendered 
 by the insured as herein provided to the following described 
 property while located and contained as follows and not elsewhere, 
 to-wit: 
 
 At any place or places throughout the United States of America, 
 excluding the State of Michigan and the City of Greater New 
 York, N. Y., as reported to and specifically described in a list 
 furnished by the insured on the date of the signing of this contract, 
 filed in the office of this company, and forming a part of this 
 contract. 
 
 It is the intent of this contract to protect the interest of the 
 insured to the extent as herein provided, upon property as above 
 described, in the buildings and on the premises specifically de- 
 scribed in the list referred to in the preceding paragraph, pending 
 the issue of policies by duly authorized and commissioned resident 
 agents of this company, according to the following terms, condi- 
 tions and limitations. 
 
 It is understood and agreed that no claim for loss in any one 
 
 location shall be made hereunder for any greater sum than 
 
 per cent. ( %) of $ 
 
 This contract is issued as a special agreement with the insured, 
 who covenants and agrees to keep a set of books showing a com- 
 plete record of the value of the merchandise as above described, 
 and on the day of the signing of this contract, to furnish this com- 
 pany with a statement showing the value on that date of the mer- 
 chandise above described, and the amount of any other or additional 
 fire insurance covering the property, contained in the buildings 
 and on the premises enumerated in the list filed as previously 
 provided. 
 
 Upon receipt of such data policies for amounts equaling the 
 liability at each location as shown by such statements are to be 
 issued at the various agencies of this company, in conformity 
 with the laws of the respective states, and the policies are to be 
 filed in the office of this company as a part of this contract. 
 Premium shown by the policies so issued shall constitute a 
 further consideration under this contract. 
 
 On the day of each month following the date of the 
 
 commencement of the term of this contract, the insured agrees to 
 furnish this company with a statement showing the value on 
 that day of the merchandise above described and the amount of 
 any other or additional fire insurance, covering the within de- 
 scribed property, contained in each one of the locations enumerated 
 in the list filed as above provided. 
 
 At such stated periods any new locations may be added to the 
 list, and this contract shall include and attach at these points 
 in the same manner as at the locations previously enumerated. 
 
 Upon receipt of such advices the amount of insurance under 
 this contract shall be increased or reduced to an amount equal 
 
EXCESS, FLOATING AND GENERAL COVER CONTRACTS 419 
 
 to the value of the merchandise on that day after deducting all 
 other fire insurance as shown by such statements, and policies 
 are to be issued as previously provided, or endorsed to such 
 amounts as are shown by the statements to be the amount of 
 insurance under thi^ contract, at each location enumerated in 
 the list of locations filed by the insured as called for under 
 the terms and conditions of this contract. 
 
 Such changes are to be made in accordance with the rules 
 and regulations locally applying. 
 
 It is understood and agreed that should any of the within 
 described property at the locations contained in the list as pre- 
 viously provided be damaged or destroyed by fire between the 
 dates provided for the reporting of values by the insured, this 
 Company agrees that this contract shall attach to the extent of 
 
 not exceeding ...per cent. ( %) of the value of the 
 
 property at each location as shown by the books of the insured 
 at the time of the fire, after deducting all other fire insurance 
 covering the property, but is further understood and agreed that 
 no claim for loss in any location shall be made hereunder for 
 
 any greater sum than per cent. (....%) of the limit of 
 
 liability noted herein. 
 
 If during the term of this contract the insured shall acquire 
 any property as described above, not already included in the 
 list of locations filed with the companiies at the date of the com- 
 mencement of the term of this contract, as herein provided, this 
 contract shall automatically apply and cover at such point or 
 
 points to an amount not exceeding per cent. (....%) of 
 
 Dollars ($....) in any one building, until the new 
 
 location or locations are reported in the next monthly list of 
 values, to be rendered by the insured as herein stipulated. It 
 is understood and agreed, however, that the above does not apply 
 to any location or locations in the State of Michigan and the 
 City of Greater New York, N. Y., which is excluded from all 
 coverage under this contract. 
 
 Provided that at the date of the rendering of the last preceding 
 monthly statement of values by the insured, he or they had no 
 interest in or responsibility for such property, and that at the 
 time such automatic cover was assumed as above, the property 
 had not been affected or threatened by fire. 
 
 This insurance to be subject to the printed conditions of the 
 forms of policies issued by agents of this company as herein 
 provided, the New York Standard form of policy in such states 
 where this form is prescribed for use or required by law, and 
 the Standard form of policy required by law in states where 
 this form is not permitted. 
 
 It is understood and agreed that the word "noon" as used in 
 this contract is intended to mean "noon" standard time, at the 
 
420 THE AGENTS KEY TO FIRE INSURANCE 
 
 place where the property which is the subject of this insurance 
 is situated. 
 
 Reduced Rate Contribution Clause 
 In consideration of the reduced rate and/or form under which 
 this contract is issued, it is expressly stipulated and made a 
 condition of this contract that in the event of loss this Company 
 shall be liable for no greater proportion thereof than the amount 
 hereby insured bears to One Hundred Per Cent. (100%) of the 
 actual value of the property described herein, at the time when 
 such loss shall happen, nor for more than the proportion which 
 this contract bears to the total insurance thereon. 
 
 In the event that the aggregate claim for any loss is both 
 less than Ten Thousand Dollars ($10,000) and less than Five 
 Per Cent. (5%) of the amount of insurance upon the property 
 at the location where and at the time such loss occurs, no special 
 inventory or appraisement of the undamaged property shall be 
 required. 
 
 The foregoing conditions shall apply separately in each location 
 at which this contract covers. 
 
 Lightning Clause 
 
 This contract shall cover any direct loss or damage caused by 
 lightning (meaning thereby the commonly accepted use of the 
 term lightning, and in no case to include loss or damage by 
 cyclone, tornado or windstorm), not exceeding the sum insured nor 
 the interest of the insured in the property and subject in all 
 o*her respects to the terms and conditions of this policy. Pro- 
 vided, however, if there shall be any other insurance on said 
 property this company shall be liable only pro rata with such 
 other insurance for any direct loss by lightning, whether such 
 other insurance be against direct loss by lightning or not. 
 
 This contract shall be canceled at any time at the request 
 of the assured ; or by the Company by giving fifteen days' notice 
 of such cancellation, which notice shall terminate all insurance 
 thereunder. 
 
 It is understood and agreed that the insured shall be indemnified 
 for not more than that proportion of the loss which the last 
 reported value of stock bore to the actual value of stock at the 
 time of such last report, and in no event for more than the 
 actual loss. 
 
DIVISION XVI 
 MISCELLANEOUS FORMS 
 
 Herein are included various unclassified forms which may 
 prove of value. This list might be extended almost indefi- 
 nitely, for there are a very large number of special condi- 
 tions which require forms drawn to provide the specific cover 
 necessary. This is particularly true of those forms that 
 cover contingent liabilities, but these vary so greatly as to 
 make any one form of little value. 
 
 .BUILDER'S RISK— OWNER'S FORM 
 
 {Contractor's interest not covered) 
 
 $ On the interest of the insured to the extent of payments 
 
 made thereon in the building and additions, in course of 
 
 construction, including all fixtures installed therein, situate 
 
 (Attach usual or required clauses.) 
 
 BUILDER'S RISK— CONTRACTOR'S FORM 
 
 {Oivner's interest not covered) 
 
 $ On the interest of the insured in the building and 
 
 additions in course of construction, including all materials and sup- 
 plies therefor, also all contractor's equipment, while on the site 
 of said building or within feet thereof, situate 
 
 (Attach usual or required clauses.) 
 
 BUILDER'S RISK FORM 
 
 {Owner's and contractor's interest) 
 
 $ On the building and additions, in course of con- 
 struction, including all permanent fixtures and all materials and 
 supplies for use in the construction or completion of said building, 
 while contained on its site or within feet thereof situate 
 
 (Attach usual or required clauses.) 
 
 Note. — With this form policy may be issued to owner and con- 
 tractor as interest may appear, or, to either individually with loss 
 payable to the other as interest may appear. 
 
 BUILDER'S RISK FORM 
 
 {Uniformity West) 
 
 $ On the story roof building, including 
 
 plumbing, electric wiring and stationary heating, lighting and 
 
 431 
 
422 THE AGENTS KEY TO FIRE INSURANCE j 
 
 ventilating apparatus and fixtures therein; and all permanent j 
 
 fixtures belonging to and constituting a part of said building, ; 
 
 which is now in process of erection and to be occupied when i 
 
 completed as a and, when not otherwise insured, this item ( 
 
 shall also cover building materials to be used in the construction I 
 
 of said building while contained therein or on the premises i 
 
 immediately adjacent thereto; situated City of \ 
 
 Town of State of Ohio. 
 
 It is made a condition of this insurance that the premises shall | 
 
 not be occupied for manufacturing, mercantile or for any other ; 
 
 purposes during the continuance of this policy, without obtaining ' 
 the written consent of this company hereon; excepting that ma- 
 chinery may be set up and operated solely for the purpose of 
 
 testing the same without prejudice to this policy. i 
 
 Caution: See that due care is exercised in regard to cleaning i 
 
 up shavings, oily rags, and other refuse. { 
 
 Any loss under this policy that may be proved due the assured | 
 
 shall be payable to the assured and subject, nevertheless, j 
 
 to all the terms and conditions of the policy. ' 
 
 Other insurance permitted. 
 
 (Attach usual clauses.) j 
 
 BUILDERS* RISK \ 
 
 (S. E. u. A.) ; 
 
 $. . . .On the story building, with roof, its ! 
 
 additions and foundations, including permanent heating apparatus, I 
 
 gas and electric light fixtures and wires, plate and stained glass, '• 
 
 wall and ceiling decorations, frescoes, gas and water pipes, plumb- j 
 
 ing, and all permanent fixtures, now in course of construction; ; 
 
 also all material to be used in the construction of said building, ; 
 
 while in and on the premises, situated No on the i 
 
 side of Street, Block No in When com- * 
 
 pleted to be occupied for purposes only, provided the ; 
 
 consent of this Company is endorsed hereon. I 
 
 If the above building is to be occupied for manufacturing pur- j 
 
 poses, assured may set up machinery, but warrants that it will : 
 
 not be operated except for testing purposes, unless permission is ; 
 
 endorsed hereon. j 
 
 Any loss that may be ascertained and proven to be due the i 
 
 assured under this policy shall be held payable to as i 
 
 interest may appear, subject, nevertheless, to all the terms and \ 
 
 conditions of this policy. \ 
 
 CONTRACTOR'S FORFEIT INTEREST FORM i 
 
 On the interests of the assured, as set forth below, as contractors I 
 
 in building, additions and extensions in course of construction ; 
 
 situate on premises of said interest to be based upon an • 
 
MISCELLANEOUS 423 
 
 agreement in their contract whereby a forfeit or penalty of Fifty 
 dollars ($50) a day is exacted from the assured if said building 
 
 is not completed by (date) 
 
 The object of this contract is to indemnify the insured for loss 
 by reason of said forfeiture or penalty which the insured will 
 be obliged to pay on account of their inability to complete said 
 building, additions and extensions, due to loss or damage by fire 
 or lightning, occurring therein ; it being understood and agreed that 
 this company will pay the insured Fifty dollars ($50) per day for 
 each day from (insert date), to the time when, with ordinary 
 diligence and dispatch, said building, additions and extensions can 
 be completed and the contract fulfilled. 
 
 CONTRACTOR'S INTEREST FORM 
 
 {Illustration) 
 
 $....0n the interest of the insured in any and/or all brick, 
 slate roof dwellings, completed, uncompleted or that may hereafter 
 be erected, including all materials and supplies for use in con- 
 struction thereof, located at 
 
 It is the intention to cover additions adjoining and communi- 
 cating including foundations, plumbing, steam, gas and water 
 pipes; lighting and heating apparatus and all permanent fixtures; 
 plate and ornamental glass and fresco work without description; 
 also storm doors and windows, screens, screen doors, awnings 
 whether in position or stored in any of said buildings. 
 
 This policy does not cover on any dwelling which is the subject 
 of most specific insurance, except to the extent of the insured's 
 interest therein which is not covered by such specific insurance. 
 
 Permission is granted for other insurance without notice until 
 required; for mechanics to make necessary alterations, additions 
 and repairs; to use kerosene* oil, city or natural gas and/or 
 electricity for lighting and/or heating purposes; to be vacant 
 as occasion may require. 
 
 Attach Lightning Clause. 
 
 Attach 90% Reduced Rate Average Clause. 
 
 CONTINGENT LIABILITY FOR FINES 
 
 $ On the liability of the insured for the payment of fines to 
 
 the United States Government under a contract dated 
 
 It is understood that the foregoing contract between the insured 
 
 and the United States Government is for ; that these are 
 
 to be delivered as follows: 
 
 25% of the number within two months from the approval of 
 sample and not less than 10% per month thereafter; that for 
 failure to deliver in contract time the insured is liable to a fine 
 per day amounting to l/20th of 1% of the contract price, but not 
 
424 THE AGENTS KEY TO FIRE INSURANCE 
 
 to exceed a total fine of more than 10% of the contract price; that ; 
 
 these are being or to be manufactured at 
 
 It is hereby declared to be the intention of this insurance, that, j 
 if by reason of fire or lightning the above mentioned premises or 
 
 materials or stock are so damaged as to prevent the delivery of j 
 
 the said within the contract time, this Company shall be 
 
 liable to indemnify the insured for such fines as he is obliged ; 
 
 to pay to the United States Government under the above contraa. ; 
 
 Note: — Policy written for 10% of the contract price. i 
 
 i 
 j 
 
 EXPRESSMAN'S OR TRUCKMAN'S FORM ! 
 
 $ On personal property of every kind and description, includ- | 
 
 ing that enumerated in the policy on which liability is required to \ 
 
 be specifically assumed, but excluding loss to accounts, bills, cur- j 
 
 rency, deeds, evidences of debt, money, notes, or securities, the j 
 
 property of the insured; also on the interest of the insured in j 
 
 and/or liability for similar property held by him and belonging in | 
 
 whole or in part to others, or held on storage or for repairs; all | 
 
 while contained, etc. j 
 
 (Attach usual or required clauses.) \ 
 
 FIRE PREMIUMS FORM 
 
 $ On fire premiums paid by the insured for (five) year term , 
 
 insurance (as per form filed in the office of ) on building j 
 
 and permanent fixtures situate 
 
 It is understood and agreed that the amount of this policy shall j 
 
 decrease at the rate of $ per diem (20% per annum) 
 
 until exhausted at the expiration hereof. i 
 
 It is further understood and agreed that the liability for loss j 
 
 or damage under this policy shall be the percentage of loss or j 
 
 damage under the insurance represented by the fire premiums I 
 
 above described, and said percentage on such portion of the j 
 
 amount of this policy as remains in force at the occurrence of a ] 
 
 fire shall be the measure of loss hereunder. l 
 
 THEATRICAL SPECIAL INTEREST FORM 
 
 On the following described interest of the insurance in the 
 
 building and/or its equipment, known as the and situate ! 
 
 It is hereby understood and agreed that the Assured under this 
 policy has agreed to give 20 performances in above theatre. 
 
 Now it is hereby further understood and agreed between the 
 Assured and this Company that in event the building named 
 above and/or its equipment, shall be destroyed or so damaged 
 by fire that the Assured is prevented from giving the perform- 
 
MISCELLANEOUS 425 
 
 ances agreed upon and referred to above, then this Company 
 shall pay the Assured the sum of $8,500 for each performance so 
 prevented, but not exceeding $170,000 in all. 
 
 It is understood and agreed that if it be not possible to rebuild 
 or repair said theatre but the Assured is enabled to make some 
 arrangement to give the performances or any part of them in 
 some other building in the same city, then this Company shall 
 be liable for each performance for the difference between the 
 original guarantee of $8,500 and the new guarantee, if any. It 
 being the true intent of this Policy of Insurance to indemnify 
 the Assured for any actual loss of contract remuneration which 
 they may suffer by fire as above specified. 
 
 Other insurance permitted. 
 
 Lightning Clause attached. 
 
 Privileged to do such work and to use such materials as are 
 usual in the business of a Theatre. 
 
 Permission for mechanics to be employed for alterations and 
 repairs in the within-described premises. 
 
 It is understood and agreed that this Contract shall be pre- 
 sumed and construed to have all necessary clauses, privileges and 
 permissions that may be necessary to keep it in full force and 
 effect. 
 
 IMPROVEMENTS INSURANCE 
 
 Improvements to the premises made by the lessee, "whether 
 they become at once the property of the building owner or 
 revert to the owner at the expiration of the lease, are almost 
 invariably a loss to the lessee whenever the lease is can- 
 celled, as under practically all leases the cancellation of the 
 lease wipes out the lessee's interest in improvements. Even 
 though the lease be not cancelled, a fire may cause serious 
 damage to the improvements, which the owner may not be 
 obliged to make good, and improvements insurance should 
 therefore be carried for protection against both partial and 
 total losses. 
 
 To protect the lessee's interest in improvements we recom- 
 mend that the building insurance and the lessee's policy cov- 
 ering fixtures contain a clause specifically excluding improve- 
 ments; that specific insurance for the improvements be writ- 
 ten for the amount of their value jointly in the names of the 
 owner and lessee as interest may appear, and that the 
 owner and lessee also make a separate agreement specifying 
 the extent of the latter 's interest as may be agreed upon. 
 
426 THE AGENTS KEY TO FIRE INSURANCE 
 
 IMPROVEMENTS FORM 
 
 INSURED: , owner, and , lessee, as interest 
 
 may appear. 
 
 $....0n improvements made by the lessee named herein to 
 the building situate 
 
 (Attach the usual clauses, including coinsurance where build- 
 ing and/or fixtures would be written with coinsurance.) 
 
 IMPROVEMENTS AND BETTERMENTS FORM 
 
 $ On improvements, additions and betterments, consisting 
 
 principally of installed as a part of the building or perma- 
 nent fixtures by the insured, under the terms of a year lease 
 
 dated , on or in the building, situate 
 
 It is hereby understood and agreed: 
 
 That the above building is occupied principally for pur- 
 poses; 
 
 That this policy shall not cover on building or fixtures outside 
 of the improvements, additions and betterments herein described; 
 
 That this Company shall not be liable hereunder for any loss 
 to property which, by the terms of the aforesaid lease, the land- 
 lord or owner of building is obligated to repair or replace. 
 
 (Attach usual or required clauses.) 
 
 IMPROVEMENTS AND BETTERMENTS FORM 
 
 $ On improvements, additions, and betterments, consisting 
 
 principally of installed as a part of the building or per- 
 manent fixtures by the insured, under the terms of a year 
 
 lease, dated on or in the building, situate 
 
 It is understood and agreed that the insured's interest in the 
 value of improvements, additions, and betterments shall be in no 
 greater proportion than the unexpired time of the lease bears to the 
 full term of the lease, and any claim for loss or damage on such 
 interest in improvements, additions and betterments shall be 
 adjusted upon this basis. 
 
 It is also understood and agreed that this Company shall not 
 be liable hereunder for any loss to property which, by the terms 
 of the aforesaid lease, the landlord or owner of building is 
 obligated to repair or replace. 
 
 Other insurance permitted without notice until required. 
 
 Privileged for present communications, to work overtime, nights, 
 Sundays and holidays; to use steam, and gas for heat, light and 
 power; to use kerosene oil stoves, for heating and cooking pur- 
 poses. 
 
 Work and Materials Clause attached. 
 
 Mechanics Privilege attached. 
 
MISCELLANEOUS 427 
 
 N. Y. Standard Electric Light Permit attached. j 
 
 Note. — It is preferable, where possible, to insure improvements; 
 
 and building jointly in the names of owners and lessee, as in-| 
 
 terest may appear, but the above form may be used when neces-i 
 
 sary to cover the lessee separately. ] 
 
 LEGAL LIABILITY FORM \ 
 
 (Neav York) \ 
 
 {Liability Disclaimed) 
 
 $ On their legal liability in or for merchandise, baggage' 
 
 and/or freight held in their custody as common carriers, ware-j 
 housemen, wharfingers, forwarders or freighters. i 
 
 The purpose of this insurance is to indemnify the insured forj 
 their legal liability, if any, to the amount they are obliged to pay ■ 
 on the above mentioned property by reason of loss or damage by: 
 fire, and it is understood that liability for such loss or damage by; 
 fire is and will be disclaimed in bills of lading, shipping receipts' 
 and other similar documents. \ 
 
 It is also understood and agreed that all claims against the^ 
 insured (provided the claim or claims are not in excess of the; 
 amount insured) shall be resisted under the direction and controls 
 of this Company, the cost of such resistance (whether conducted! 
 by the insured or this Company) to be paid by this Company ini 
 the proportion that the amount of this policy bears to the total i 
 amount of such claim or claims. 
 
 In the event of loss hereunder this Company shall be subrogated 
 to all claims upon owners of such property to the extent of pay-; 
 ment made to them. 
 
 (Attach Lightning and other clauses.) ; 
 
 Note: — Sometimes in place of the words "disclaimed in bills of] 
 lading, etc.," the following language is used: "Limited to their! 
 legal liability under the Bill of Lading approved by the Interstate! 
 Commerce Commission, June 27, 1908." This disclaimer is not< 
 as broad as the one in the form. i 
 
 ■] 
 LEGAL LIABILITY FORM \ 
 
 {Liability Not Disclaimed) ! 
 
 $ On their legal liability in and for merchandise, baggage; 
 
 and/or freight held in their custody as common carriers, ware- I 
 housemen, wharfingers, forwarders or freighters; also on their ' 
 interest in all advances or other charges due or to become due 1 
 upon all merchandise, baggage and/or freight, while contained < 
 in situate \ 
 
 It being mutually understood and agreed that if claim is made I 
 against the insured for merchandise, baggage and/or freight held i 
 by them as above provided, the insurers shall have the option of ^ 
 either admitting such claim for payment or of resisting it in court, J 
 
428 THE AGENTS KEY TO FIRE INSURANCE 
 
 the legal expenses incurred in such resistance to be borne by the 
 Insurance Companies interested in the proportion that the total 
 amount of insurance shall bear to the total amount of such claim 
 or claims. 
 
 (Attach Lightning and other clauses.) 
 
 NAVAL STORES—FLOATER 
 
 {S. E. U. A.) 
 
 $. . . .On naval stores and empty packages, spirits in tanks, owned 
 or held by assured in trust, or on commission, or on joint account 
 with others, or sold but not delivered, in all or any of the stores, 
 
 warehouses, sheds, yards, railroad yards and wharves ( 
 
 excepted), or while in transit in, or while on any of the streets 
 in 
 
 It is a part of the consideration of this policy, and the basis 
 upon which the rate of premium is fixed, that it is expressly stipu- 
 lated and made a condition of the contract that, in event of loss, 
 this Compan}^ shall be liable for no greater proportion thereof than 
 the amount hereby insured bears to the actual value of the property 
 described herein at the time when such loss shall happen, nor for 
 more than the proportion which this policy bears to the total 
 insurance thereon. If this policy be divided into two or more 
 items, the foregoing conditions shall apply to each item separately. 
 
 In the event that an aggregate claim for any loss is less than 
 Ten Thousand Dollars ($10,000) (provided, however, such amount 
 does not exceed five per cent. (5%) of the total amount of insur- 
 ance upon the property described herein and in force at the time 
 such loss occurs), no special inventory or appraisenient of the un- 
 damaged property shall be required. If this policy be divided 
 into two or more items, the foregoing condition shall apply to each 
 item separately. 
 
 Other insurance, concurrent herewith, permitted without notice 
 until required. 
 
 NAVAL STORES 
 [S. E. U. A.) 
 
 Name of Assured 
 
 On Naval Stores and empty barrels, spirits in tanks, owned or 
 held by the assured In trust or on commission, or on joint account 
 with others, or sold but not delivered, contained In sheds, ware- 
 houses and on yards used by the assured, and known as Naval 
 Stores Warehouse Company's Yards, in 
 
 The insurance also covers above described property while on or 
 In cars in the yards named above. 
 
 It is a part of the consideration of this policy, and the basis 
 upon which the rate of premium is fixed, that It is expressly stipu- 
 lated and made a condition of the contract that, in event of loss, 
 
MISCELLANEOUS 429 i 
 
 this Company shall be liable for no greater proportion thereof than \ 
 
 the amount hereby insured bears to the actual value of the prop- ; 
 
 erty described herein at the time when such loss shall happen, nor j 
 
 for more than the proportion which this policy bears to the total l 
 
 insurance thereon. If this policy be divided into two or more | 
 
 items, the foregoing conditions shall apply to each item separately, i 
 
 In the event that an aggregate claim for any loss is less than i 
 
 Ten Thousand Dollars ($10,000) (provided, however, such amount i 
 
 does not exceed five per cent. (5%) of the total amount of insur- ! 
 
 ance upon the property described herein and in force at the time j 
 
 such loss occurs) no special inventory or appraisement of the un- i 
 
 damaged property shall be required. If this policy be divided into j 
 
 two or more items, the foregoing condition shall apply to each item J 
 
 separately. ; 
 
 This policy shall cover any direct loss or damage caused by \ 
 
 lightning (meaning thereby the commonly accepted use of the j 
 
 term lightning), and in no case to include loss or damage by ; 
 
 cyclone, tornado or wind-storm, and not exceeding the sum insured, i 
 
 nor the interest of the insured in the property, and subject in all :■ 
 
 other respects to the terms and conditions of this policy. Provided, j 
 
 however, if there shall be any other insurance on said property j 
 
 this Company shall be liable only pro rata with such other insur- j 
 
 ance for any direct loss by lightning, whether such other insurance ; 
 
 be against direct loss by lightning or not. [ 
 
 The property covered by this policy may be pledged without ] 
 
 notice as collateral security for loan, but loss, if any, under this i 
 
 policy shall be adjusted with the assured, and is payable only to ; 
 the assured or their order endorsed on or attached to this policy. 
 
 Other insurance warranted concurrent herewith, permitted with- j 
 
 out notice until required. j 
 
 \ 
 
 NURSERYMAN'S FORM \ 
 
 (Advances) ! 
 
 $ On advanc_es actually made by the insured to agents for i 
 
 goods sold, it being the intention of this insurance to reimburse ; 
 the insured for such advances in case goods sold are so damaged j 
 or destroyed by fire that they cannot be delivered, and the in- I 
 sured is unable to replace them in time for delivery, all such I 
 
 advances being on goods while contained in the building ; 
 
 and in trenches adjacent thereto, situate ■ 
 
 (Attach usual clauses.) 
 
 Note. — The above insurance covers advances or commissions 
 actually paid to agents. Goods are sold through canvassing agents 
 to whom commissions are paid weekly on receipt of orders. These 
 orders are taken during the fall and winter for shipment in April, i 
 Should loss occur, it would be difficult or impossible to replace the ; 
 goods, in which case orders could not be filled, and the advances ; 
 or commissions paid to agents would be lost as well as the value i 
 of the goods. j 
 
430 THE AGENTS KEY TO FIRE INSURANCE 
 
 REINSURANCE FORM 
 {Approved by the National Board of Fire Underwriters) 
 
 This policy is issued as reinsurance to apply to Policy No 
 
 of the Insurance Company, and is subject to the same 
 
 risks, privileges, conditions and endorsements (except changes of 
 location), assignments, changes of interest or of rate, valuations 
 and modes of settlement, as are or may be assumed or adopted 
 by the said company. 
 
 The amount payable under this policy shall bear the same ratio 
 to the amount payable by the reinsured company Under any and 
 all policies upon the property specified and contained within the 
 limits described herein, that the amount of this reinsurance in 
 force at the time of loss shall bear to the total amount insured 
 by the reinsured company upon such property in force at the time 
 of such loss, and shall be paid at the same time and in the same 
 manner as payment shall be made by said reinsured company. 
 
 Other reinsurance is permitted without notice until required. 
 
 Note. — A copy of the form attached to the reinsured policy is 
 also made a part of the form of the reinsuring policy. 
 
 Where a Retainer Clause is desired to be attached to the fore- 
 going Reinsurance Clause, the following is approved by the Na- 
 tional Board of Fire Underwriters: 
 
 Retainer Clause. — The reinsured company shall retain at its 
 own risk, on the identical property covered at the time of any 
 loss, by this policy, over and above all its reinsurance thereon, an 
 amount equal to the amount of this policy upon such property, and, 
 failing so to do, the amount which would otherwise be payable 
 under this policy by reason of said loss shall be proportionately 
 reduced. 
 
 REINSURANCE FORM 
 
 {Where one company reinsures the entire business of another 
 Company in an agency) 
 
 This policy is issued as a reinsurance of the entire liability of 
 
 the Insurance Company under various policies issued 
 
 through its agency at , as designated in the schedule filed 
 
 with the reinsuring company, said schedule being made a part of 
 this contract. 
 
 This policy is subject to the same risks, conditions and endorse- 
 ments, assignments, changes of interest or of rate, valuations and 
 modes of settlement, as are or may be assumed or adopted by 
 the reinsured company. 
 
 Note. — The schedule referred to usually contains the following 
 information regarding each risk reinsured: — 
 
 Policy Number, Name of Insured, Class of Property, Location, 
 Amount, Rate, Premium, Term, Expiration, and Amount of Earned 
 Premium. 
 
MISCELLANEOUS 431 
 
 SPECIFIC MACHINES FORM 
 
 $ On machines and machinery of every description, together 
 
 with attachments and spare and duplicate parts, while held under 
 contract of sale or purchase, leased or for operation on a royalty 
 basis, from (Name of lessee) while contained, etc. 
 
 Loss, if any, under this policy to be adjusted with, payable to 
 and recoverable by the insured named herein. 
 
 (Attach clauses appropriate to occupancy.) 
 
 FORM FOR WALL PAPER SETS 
 
 $ On books containing sets of wall paper samples, it 
 
 being understood and agreed that no one set shall be valued at 
 
 more than $ , all while contained in the building, 
 
 situate 
 
 (Attach usual clauses.) 
 
 BUILDING (PORTION ONLY) FORM 
 
 (Illustration) 
 
 $ On the third story as hereinafter defined of the three story, 
 
 metal roof, brick and stone building, including apparatus, piping 
 and fixtures for heating, lighting and water service, together with 
 other permanent fixtures attached to and forming part of the 
 structure, including awnings therein and thereon, all situate 
 
 It is understood and agreed that this insurance shall attach 
 from the top of the floor timbers that are between the second and 
 third floors, and shall include all of the building, apparatus, 
 fixtures and piping above such point, except that this insurance 
 shall cover only a one-fifth proportionate share of the roof 
 structure, it being understood that the insured has a contract 
 with the owners in fee by which the insured's ownership is de- 
 fined as in this paragraph. 
 
 (Attach usual clauses.) 
 
 BUILDING (PORTION ONLY) FORM 
 
 (Illustration) 
 
 $ On a portion as hereinafter defined of the three story metal 
 
 roof, brick and stone building, .including apparatus, piping and 
 fixtures for heating, lighting and water service, together with other 
 permanent fixtures attached to and forming part of the structure, 
 including awnings therein and thereon, all situate 
 
 It is understood and agreed that this insurance shall cover the 
 entire building and fixtures, as above described, up to and includ- 
 ing the floor timbers that are between the second and third floors, 
 and shall also cover a four-fifths proportionate share of the roof 
 structure. 
 
 (Attach usual clauses.) 
 
432 THE AGENTS KEY TO FIRE INSURANCE 
 
 NOTE: — The two foregoing forms were used to insure the re- 
 spective interests in a brick building, where a lodge under a well 
 defined contract had built the third floor for use as a meeting 
 room. It^ is better practice in cases of this kind to insure the 
 property jointly in the names of both parties "as interest may 
 appear." 
 
 PEDIGREE DOG POLICY 
 
 Be it known that is desirous of effecting an Assurance 
 
 on the life of named Reg. No during the 
 
 period from noon day of 19 to noon 
 
 day of 19. . . .for a sum not exceeding £ 
 
 And whereas the Assured hath paid the Underwriters the sum 
 of as premium for the said assurance 
 
 We the Insurers do hereby agree to bind ourselves each for 
 his own part and not one for another, our Heirs, Executors and 
 
 Administrators to indemnify the said in the above sum 
 
 against the death of the said from mortality by 
 
 (a) Fire, Lightning, and Accident as well as the necessity of 
 its destruction arising from any accident which may occur to it 
 during that time and 
 
 (b) From Death by natural causes, disease, the Act of God 
 or man, excluding poisoning, but it is herein provided that if 
 death should occur from disease or whelping within two months 
 of date hereof, then only two-thirds of such sum shall be payable. 
 
 This Policy only covers whilst the animal is kept within the 
 United Kingdom. 
 
 Provided always that the Assured shall cause every animal 
 insured to have sufficient and proper food, water and shelter, 
 and shall at all times and to the best of his knowledge and 
 ability use and exercise every due and proper precaution and 
 safeguard against loss under the policy, the intent and meaning 
 being that the insured animal shall have the same care and 
 attention as if it were uninsured. 
 
 It is further provided that in the event of illness or accident 
 to the animal, the Insured shall at his own expense immediately 
 and during such illness obtain the services of a qualified 
 Veterinary Surgeon and shall give notice within 48 hours to 
 The Managers, Pedigree Dog Policies, 94/5 Cheapside, London, 
 E.G. 3. 
 
 Whenever Death shall occur to the animal hereby insured by 
 reason of the negligence, carelessness or wrongdoing of any per- 
 son the Assured shall not claim or accept compensation from 
 such person without consent of the Underwriters, but shall give 
 the Underwriters all necessary information to secur'e such com- 
 pensation and it shall be the right of the Underwriters to sue 
 in the name of the Assured and recover compensation from the 
 
MISCELLANEOUS 433 ] 
 
 ] 
 
 persons causing such death, and any compensation so recovered ; 
 
 shall be the property of the Underwriters but not exceeding the ; 
 sum insured. 
 
 No insured animal shall be operated on nor destroyed unless '■ 
 
 in the interests of humanity or when deemed necessary on the ^ 
 
 advice of a qualified Veterinary. Surgeon. i 
 
 We hereby further agree to indemnify the Assured against all '. 
 
 sums for which he shall become legally liable during the said '. 
 
 period as and for compensation in respect of personal injury ■ 
 
 to any person other than a person in the Assured's service directly : 
 
 or indiredrly, or acting on his behalf or his Employers or a i 
 
 member of the Assured's family, caused by the insured animal \ 
 
 biting any person.- i 
 
 Provided always that in no case shall the Underwriters in- \ 
 
 demnify the Assured to a greater extent than £lOO (One hundred), ; 
 
 inclusive of costs, charges and expenses payable to the Assured ^ 
 or any Claimant, 
 
 The insured shall not, except at his own cost, negotiate, pay 1 
 
 or settle any claim without consent of Underwriters. | 
 
 If the risk specified shall be enhanced by any increase in the I 
 
 number of dogs the Insured shall within one week after such i 
 
 enhancement give notice and pay such extra premium as may be j 
 
 required. : 
 
 Upon the happening of any event likely to give rise to a claim, ; 
 
 due notice shall be immediately given to together with j 
 
 all necessary information, ■ 
 
 The Insured shall comply with all statutory regulations for ; 
 
 the time being in force. j 
 
 No other insurance permitted. i 
 
 Any material misrepresentations, omissions or concealment of I 
 
 any facts or non-compliance with or contravention of any of the i 
 
 foregoing clauses or the making of any claim knowing same to. ] 
 
 be false and fraudulent shall render the Policy null and void. | 
 
 NOTE : This is a form used to protect an installment j 
 
 furniture house against loss by fire of any unpaid balances i 
 
 under the conditions named in the form, the amount of in- i 
 
 surance being the amount of current unpaid balances on I 
 
 outstanding accounts. { 
 
 $....0n their interest as shown by their accounts in merchan- ; 
 
 dise consisting principally of household furniture, carpets, stoves ; 
 
 and household furnishings sold by them under lease while con- j 
 
 tained in buildings situate anywhere in the county of j 
 
 State of 
 
 It is understood and agreed as follows: I 
 
 That this policy shall not cover in any buildings in which j 
 
 the ground floor is occupied for mercantile purposes, nor in build- j 
 
 i 
 
434 THE AGENTS KEY TO FIRE INSURANCE 
 
 ings occupied in whole or in part for motion picture or theatrical 
 purposes, nor in public buildings, nor warehouses, nor in buildings 
 used for manufacturing purposes, fairs or expositions. 
 
 That this Company shall not be liable for any loss of less than 
 $10, nor for more than $750 under any one account, nor $5,000 
 in any one building. 
 
 That the insured's interest is that of lessor under leases which 
 provide that the lessees shall keep the leased property insured 
 for the benefit of the lessor and if any lessee shall provide good 
 and sufficient insurance to protect the lessor against all losses in 
 accordance with the terms of said lease, this policy shall not 
 apply, nor shall this policy be held as concurrent or contributing 
 with any such insurance in whole or in part on any of the property 
 described herein. 
 
 That if any lessee shall provide insurance which through error 
 or otherwise shall not protect the lessor against all loss in 
 accordance with the terms of said lease, or shall fail to provide 
 any insurance, then this policy shall be in full force and effect 
 for such deficiency and the insured agrees to subrogate his right 
 of recovery in the case of any loss paid under this policy. 
 
 That for the purpose of applying the 90% reduced rate average 
 clause the insured shall furnish this Company on demand with a 
 complete list of all balances due on account to which this insurance 
 applies. 
 
 (Attach R. R. A. and other clauses.) 
 
 GARAGE OWNER'S LEGAL LIABILITY FORM 
 
 $ On the assured's legal liability for direct loss or damage 
 
 by fire to or theft of automobiles, commercial cars, trucks, tractors, 
 chassis or bodies, not owned by the assured, but the property of 
 others, which are held by the assured for storage or repairs, as 
 evidenced by the books, records or receipts of assured, providing 
 the loss or damage occurs while the automobiles are contained 
 
 in the premises occupied by the assured situate at and not 
 
 elsewhere. 
 
 Provided that this company shall be liable hereunder for such 
 damage by fire or theft only when such fire or theft results from 
 the negligence of the assured and/or his employees for which 
 damage the assured shall be held to be legally liable. 
 
 It is a condition of this contract that the insured shall not 
 voluntarily assume liability for loss to any motor vehicle or 
 other property insured hereunder. 
 
 This company shall not be liable hereunder for any loss by 
 theft unless such theft is of an entire automobile, commercial car, 
 truck, tractor, chassis or body covered hereunder. 
 
 This contract shall also cover legal expenses incurred by the 
 
MISCELLANEOUS 435 ] 
 
 assured with the consent of this company in connection with the i 
 
 coverage granted hereunder, but in no case shall the company , 
 
 be liable for a greater amount than the sum insured under this \ 
 
 policy. ! 
 
 Other insurance permitted. i 
 
 The terms and conditions contained in this form supersede ' 
 
 anything to the contrary printed in the policy to which this j 
 
 form is attached. ' 
 
 BUILDING AND LOAN ASSOCIATION FORM ] 
 
 (Mortgage Interest) \ 
 {Uniformity West) 
 
 $....0n the several properties on which the Building and Loan ' 
 
 Association shall have substituting loans at the time when any j 
 
 of the said properties, during the term of this insurance, suffer 1 
 
 loss or damage by tornado, cyclone or windstorm while located | 
 
 within the limits of and/or City and County of \ 
 
 State of 
 
 This insurance being designed to cover only the mortgage in- ; 
 
 terest of said Building & Loan Association in each of said \ 
 
 properties: It is hereby made an express condition of this con- \ 
 
 tract that no claim hereunder shall be made against this com- ' 
 
 pany for loss or damage by tornado, cyclone or windstorm until \ 
 
 the loss or damage on any specific building has impaired the 1 
 
 security of said Building & Loan Association to such an extent j 
 
 that the value of land as appraised at the time the loan was \ 
 
 made and the remaining value of the building does not equal ■ 
 the balance due under the mortgage on the specific property, 
 
 and then only for the difference between the value of the prop- \ 
 
 erty remaining and the amount due on said property not ex- \ 
 
 ceeding $ 1 
 
 In consideration of the rate and form of this policy, it is j 
 
 understood and agreed that the liability assumed by this Com- j 
 
 pany hereunder shall be only such proportion of the actual loss j 
 
 or damage above specified, as the amount insured under this policy ' 
 
 bears to 25% of the total amount of the outstanding loans of ] 
 
 the insured within the territory described in this policy. ; 
 
 BUILDING AND LOAN ASSOCIATION 1 
 
 (Mortgage Interest Form) \ 
 
 $50,000 on their mortgage interest in the various buildings \ 
 
 forming a part of the security upon which the insured has made ! 
 
 loans, the liability of this Company being limited as follows: 
 For loss arising through failure of the owner of property 
 
 mortgaged to the insured to obtain fire insurance on the buildings 
 
 situate on such property or the unintentional failure of the 
 
 insured to obtain such fire insurance. 
 
436 THE AGENTS KEY TO FIRE INSURANCE 
 
 For not more than 20% of the amount of this policy in any 
 one fire. 
 
 This policy is issued upon the following representations by 
 the insured: 
 
 That it is the practice of the insured at the time of making 
 mortgage to require the owner of property mortgaged to obtain 
 and file with the insured fire insurance amounting to the face of 
 the mortgage, or if that is greater than the value of the buildings 
 then for the amount of such value. 
 
 That if such insurance expires and renewal has not been received 
 by the insured it is the practice of the insured to itself obtain 
 the necessary amount of fire insurance. 
 
 That the amount the insured now has outstanding on mortgage 
 is approximately $1,000,000. 
 
 It is understood and agreed that if the amount outstanding on 
 mortgage at the time of any loss is more than $1,100,000, then 
 this policy shall not be liable for any greater proportion of such 
 loss than the amount hereof bears to $1,100,000. Also that in 
 event of loss this Company shall be subrogated to all the rights 
 of the mortgagee to the extent of the amount of the loss paid. 
 
 (Attach usual clauses.) 
 
1 
 
 INDEX ] 
 
 A \ 
 
 Abstracts Form 24$ 
 
 Accrued Charges Form ' 27di 
 
 Accounts, Monthly 34-3fi 
 
 Acetylene Lighting 12^ 
 
 Act or Neglect 20i 
 
 Actual Cash Value (see also Sound Value) 93-9!^ 
 
 Actuarial Bureau 21' 
 
 Additional Cost Indemnity 355* 
 
 Adjustment Bureaus 27 
 
 Adjustment of Losses (see Losses) 
 
 Advanced Rents 357 
 
 Advances (Nurseryman's), Form 429^ 
 
 Advertising by Agent 12 
 
 Agent, The 
 
 Act of 103 
 
 Adjustment of Loss 10, 66-69 
 
 Advertising 12 
 
 Analysis of Rates 13, 133 
 
 Bad Debts 42 
 
 Binders 34, 140 
 
 Broker's Business 16-18 
 
 Certificate of Authority 10 
 
 Collections 35, 37-42 
 
 Commissions 16, 17, 37 
 
 Duties 14, 118 
 
 Form Dissection 13 
 
 General Office W^ork 30-54 
 
 Instructions 30 
 
 Knowledge by 117, 118 
 
 Knowledge of Rates ...13,133 
 
 Liability 10, 11, 134 
 
 Limitations 10 
 
 Losses 66-69 
 
 Middleman 14 
 
 Number of 10 
 
 Obligations 14 
 
 Order to Cancel 134 
 
 Own Property 14 
 
 Preparedness 12-13 
 
 Qualification Laws 10 
 
 Rate Dissection 13, 133 
 
 Reinsurance 14, 15 
 
 Resident 10 
 
 Responsibility 11, 117 
 
 437 1 
 
438 INDEX 
 
 AGENT, The— Continued 
 
 Selection and Inspection 119-130 
 
 Service 13-17-18 
 
 Soliciting 12 
 
 Underwriting by 121 
 
 Value 16-18 
 
 Waiver and Estoppel 11, 66, 116 
 
 Work 12 
 
 Agreement, Appraisal .69-74, 111 
 
 Agreement, Non-Waiver 75 
 
 Agreements, Special 204-214 
 
 Aircraft Insurance 27, 173 
 
 Albany Rule (Apportionments) 80 
 
 American Agency System 10, 118 
 
 Analysis of Rates 13, 133 
 
 Apartment House Form (see Residence Property) 
 
 Application a Warranty 106 
 
 Application of Insurance 113 
 
 Apportionments 78-87 
 
 Nonconcurrent Insurance 
 
 Legal Maxims 78 
 
 Appraisals 69-74, 111 
 
 Appraisers Ill 
 
 Approved Securities 4-5 
 
 Arson Bureau 21 
 
 Art Dealers' Form 251 
 
 Art Gallery Form 251 
 
 Ashes 128 
 
 Assignment 61, 100, 101 
 
 As Interest May Appear 56, 99, 206 
 
 As Now or Hereafter Constituted 56 
 
 Associations 19-29 
 
 Assured (see Insured) 
 
 Automobile Insurance 27, 174-178, 219 
 
 Automobile Conferences 27 
 
 Automobile Garage Form 305-308 
 
 Repair Shop Form 305-308 
 
 Average Clause (see Co-insurance Clause) 
 
 Average, Law of 119, 120 
 
 Average Lines 120 
 
 Average Rates , 131 
 
 Average Risks 120 
 
 B 
 
 Balances, Company 34 
 
 Bankruptcy 100 
 
 Barge Form 313 
 
 Barns (Private) Forms (see Residence Property) 
 
 Barns (Public) Form ! 259 
 
 Betterments 89, 425 
 
INDEX "^ 439 
 
 Binders ^^ 
 
 Cancellation of I'^O 
 
 Bituminous Coal Form and Clause 214-294 
 
 Blanket Forms 167, 248, 282 
 
 Blanket Policies 199 
 
 Blanket Rates 131 
 
 Blowers 125 
 
 Boarding House Forms 255-261 
 
 Boat (Gasoline) Form 311-319 
 
 Boilers 127 
 
 Bonds and Mortgages (see also Mortgage Interests) 207 
 
 Books HO 
 
 Broker, The 16-18 
 
 Brokerage 16 
 
 Building (portion only) Form 431 
 
 Building & Loan Mortgage Interest 435 
 
 Builders' Risk Forms 4-21 
 
 C 
 
 Cancellations 41, 42, 134-146 
 
 Legal Methods 134-146 
 
 Partial 63 
 
 Notices (see Notices of Cancellation) 
 
 Cannery U. & O. Form 392 
 
 Capital Required (Co's) 4 
 
 Card Filing 51 
 
 Card Systems 40-53 
 
 Care and Cleanliness 128 
 
 Caretaker 105 
 
 Car Ferry Form ■ 313 
 
 Cargo Carrier Form 315, 319 
 
 Cash Value (see also Sound Value) 93-97 
 
 Cause of Fire 68 
 
 Cease Operations 104 
 
 Central Lighting & Traction Bureau 25 
 
 Certificate of Insurance 64, 65 
 
 Change of Interest 61, 101 
 
 Charges, Grain 265 
 
 Charges, Storage 276 
 
 Chattel Mortgage 90, 154 
 
 Cheese Factory Form 287 
 
 Chemical Laboratory U. & O. Form 393 
 
 Chimneys 125, 126 
 
 Concrete — Flue Lining — Standard 
 
 Church Forms 237-239 
 
 Civil COxMmotion 180 
 
 Clauses — Miscellaneous 212-213 
 
 Cleanliness 128 
 
440 INDEX 
 
 Clothing Forms 
 
 Floater 411 
 
 Manufacturing 286 
 
 Spongers 286 
 
 Club House Forms 258-261 
 
 Coal (Bituminous) Form 294 
 
 Coal Mining Forms 
 
 Plant 292 
 
 Use and Occupancy 388 
 
 Coinsurance Clauses 
 
 Explanation 157-164 
 
 Cotton Form of 322 
 
 Floating 163 
 
 Other Names for 157 
 
 Permits Other Insurance 164 
 
 Theory of 161 
 
 Specific Items 163 
 
 Use and Occupancy 374 
 
 Wording 157, 158 
 
 Conditional 212 
 
 If other insurance subject to 212 
 
 Coinsurance Rates 131 
 
 Cold Storage Forms 262-276 
 
 Collateral Loans (Banks) 155 
 
 Collection of Premiums 35, 37, 42 
 
 Methods — Systems 
 
 College Forms 242 
 
 Collision Insurance 175 
 
 Color System 52 
 
 Commercial Agency Form 253 
 
 Commissions 16, 17, 37 
 
 Commission of Authority, Loss of 15 
 
 Commission Clause 208-210 
 
 Commissions Insurance (see Profits Insurance) 
 
 Company's Instructions 53, 134 
 
 Companies 
 
 Domestic — Foreign 4 
 
 Mutual 6-7 
 
 Stock 2-5 
 
 Compress Form (Cotton) 334 
 
 Concealment 98 
 
 Concrete Chimneys 125, 126 
 
 Concurrent (see Nonconcurrence) 
 
 Conditions. (Policy) General 204-214 
 
 Conflagrations 2-3 
 
 Consequential Damage 89, 273 
 
 Loss (see Losses) 
 
 Constituted, As Now, etc 56 
 
 Contingent Liability Form 423 
 
 Contract Divisible — Severable 207 
 
INDEX ' 441 
 
 Contracts of Sale 89, 100, 208 
 
 Contract, The Policy (see Policy Contract) 
 
 Contractors' Forfeit Form 422 
 
 Contractors' Interest Form 423 
 
 Contractors' Plant Form 314 
 
 Cotton Co-Insurance Clause 322 
 
 Cotton Insurance Association 24 
 
 Cotton Fire & Marine Association 24 
 
 Cotton Insurance Forms 322-347 
 
 Bales on Plantation 332 
 
 Buyers Transit 340 
 
 Clauses • 322-327 
 
 Compress 334-337 
 
 Excess 339 
 
 Floaters 333, 335, 336 
 
 Ginnery 327-331 
 
 On Plantation 332 
 
 Cotton Replacement Clause 326 
 
 Cotton Seed Oil Mill Form 343-347 
 
 Contribution 112 
 
 Correspondence 52 
 
 Cost of Replacement (see Replacement) 
 Country Estate Form (see Residence Property) 
 
 Country Store Form 249 
 
 Creamery Form 287 
 
 Crqmie Rule ( apportionments) 78, 79 
 
 Crop Insurance 178 
 
 Customs Duties 262 
 
 D 
 
 Daily Reports 32-36 
 
 Dean Schedule 132 
 
 Deed, Trust 4, 207 
 
 Denial of Liability 118 
 
 Deposits 4 
 
 Depreciation 88, 95, 96 
 
 Descriptions ^ 59, 212 
 
 Diagrams 33 
 
 Direct Loss 91-94 
 
 Distribution Clause 164-168 
 
 Meaning, Advantages, Disadvantages, Requirements, Use. 
 
 Divisible Contract 207 
 
 Dock Company Form 294 
 
 Dog Insurance 432 
 
 Domestic Companies 4 
 
 Dredge Form 314 
 
 Dry Mixing Fertilizer Plant Form 288 
 
 Duplicate Policy 64 
 
 Duty of Insured (see Insured) 
 
 Dwelling Forms (see Residence Property) 
 
 Dynamo Clauses 205-312 
 
442 INDEX 
 
 E 
 
 Earthquake Insurance 180 
 
 Eastern Union 22 
 
 Electrical Inspections 25 
 
 Electrical Code 26 
 
 Electricity 127 
 
 Electric Light & Power Plant Forms 298-301 
 
 Elevator Forms 262-276 
 
 Endorsements 55-65 
 
 Assignment of Interest 61 
 
 Changes, Various 60 
 
 Mortgage Claim Satisfied 63 
 
 Partial Cancellation 63 
 
 Reinstatement of Loss 63 
 
 Removal 61-108 
 
 Environment 123 
 
 Estates 57 
 
 Estoppel (see Waiver and Estoppel) 
 
 Examination Under Oath 110 
 
 Excavations 206 
 
 Excess Insurance (including forms) 407-420 
 
 Excess Floater Forms 407-420 
 
 Exclusion Clauses 211 
 
 Expirations 44-52 
 
 Expiration of Policy 58 
 
 Explosion Conferences 27 
 
 Explosion Insurance 27, 181-183 
 
 Explosion Loss 91, 92 
 
 Export Marine Policies 320 
 
 Exposure 129, 130-214 
 
 Limit of Danger, Degree of Safety. 
 Expressman's Form 424 
 
 F 
 
 Factory Insurance Association 23 
 
 Farm Application 234-235 
 
 Farm Form (see Residence Property) 
 
 Federation of Insurance , , 19 
 
 Fertilizer Plant Form 288-291 
 
 Filing Cards 41, 51 
 
 Fines (Liability for), Form 423 
 
 Finn Rule (apportionments) 80-81 
 
 Finn Rule, Simplified 81 
 
 Fire, What Is 91, 92 
 
 Friendly, Hostile. 
 
 Fire Cost 2 
 
 Fire Insurance 1, 2, 112 
 
 Nature of 1 
 
 Universal Contract 1, 90 
 
 By Whom Furnished 2 
 
INDEX 443 
 
 FIRE INSURANCE— Continued 
 
 Basis of Credit 1 
 
 Economic Importance 2 
 
 Necessity 1 
 
 Useful Purpose 1 
 
 Application of 112 
 
 Contribution of 112 
 
 Conflagrations .' 2 
 
 Fire Cost 2 
 
 Indemnity 1 
 
 Premium 1 
 
 Trade Profit 2 
 
 Underwriting Profit 2, 3 
 
 Solvent or Insolvent 112 
 
 Valid or Invalid 112 
 
 Fire Patrols 27 
 
 Fire Premiums Form 424 
 
 Five Per Cent Waiver Clause 162 
 
 Fixtures and Furniture 
 
 Value of 96, 97 
 
 Forms 245-254 
 
 Flat Rates 131 
 
 Floating Coinsurance Clause 163 
 
 Floating Insurance 407-420 
 
 Floating Rates 131 
 
 Floater Forms 188, 190, 191, 407-420, 428 
 
 Clothing 411 
 
 Cotton ■ 333-336 
 
 Excess 407-420 
 
 Gas Company Liability 417 
 
 Laundry 414 
 
 Manufacturing 412 
 
 Naval Stores 428 
 
 Telephone Company 416 
 
 Theatrical 412-413 
 
 Tourist 190 
 
 Flood Insurance 184 
 
 Flue Lining 125 
 
 Foreign Companies 4 
 
 Foreclosure Proceedings ' 101 
 
 Forfeit Form 422 
 
 Forms 13, 14, 197-436 
 
 Building 198 
 
 Details 197 
 
 Furniture and Fixtures 199 
 
 Ideal 197 
 
 Machinery 199 
 
 Special Agreements 204-214 
 
 Stock 199 
 
 Title & Interest 197 
 
444 INDEX 
 
 FORMS— Continued 
 
 Valued 201-203 
 
 Various 197-436 
 
 Writing 197-203 
 
 Foreclosure of Mortgage 207 
 
 For V^hom It May Concern 57 
 
 Foundations 206 
 
 Freight Interest 321 
 
 Friendly Fire 92 
 
 Full Contribution Mortgagee Clause 149 
 
 Furniture and Fixtures 199 
 
 Value of 94, 96 
 
 Forms 245-254 
 
 Fur Storage Forms 274-275 
 
 G 
 Garage (Private) Forms (see Residence Property) 
 
 Garage (Public) Form 305-308 
 
 Garage Owners Legal Liability Form 434 
 
 Gas Engines 127 
 
 Gas Lighting 126 
 
 Gasoline Boat Form 316 
 
 Gasoline Engines 127 
 
 Gasoline Lighting 126 
 
 Gasoline Yacht Forms 316 
 
 General Adjustment Bureau 27 
 
 General Average and Salvage Clause 311, 312 
 
 General Policy Conditions 205-214 
 
 General Cover Contracts 408 
 
 Form of 417 
 
 General Office Work 30-54 
 
 Balances 37-41 
 
 Binders 34, 140 
 
 Card Systems 40-53 
 
 Collection of Premiuins 35, 37, 42 
 
 Commissions 16, 17, 37 
 
 Correspondence , 52 
 
 Daily Reports 32-36 
 
 Expiration Systems 44-52 
 
 Instructions 53 
 
 Loss Blanks : 30-32 
 
 Lost Policy . 30-32 
 
 Monthly Accounts 32-51 
 
 Office Systems 30-54 
 
 Registers 30-43 
 
 Reporting Losses 53 
 
 Separate Bank Accounts 39 
 
 Supplies 30 
 
 General Privileges 205-214 
 
 General Storage Forms 262-276 
 
 General Use & Occupancy Form 381-406 
 
INDEX 445 
 
 GiESSE Rule ( apportionments) 84 
 
 Gins (Cotton) Forms 327-331 
 
 Goods in Bond 262 
 
 Gradual Deduction Rule (apportionments) 81 
 
 Grain Charges Form 265 
 
 Grain in Elevator Forms 264-270 
 
 Grain on Farm Form 236 
 
 Grain (Open Policy) Form 268 
 
 Griswold Rule (apportionments) 80-81 
 
 Ground Rents 357,359 
 
 Guests' and Servants' Clause 210 
 
 H 
 
 Hail Associations 28 
 
 Hail Insurance 28, 184 
 
 Hardwood Lumber Clause 297 
 
 Hazard, Increase of 102-104, 121-123 
 
 Hazard, Moral 103, 121-123 
 
 Hazard, Physical 123-130 
 
 Hazard, Temperamental 122 
 
 Heating 124, 125 
 
 Heirs and Assigns 206 
 
 Hostile Fire 92 
 
 Hot Air Pipes 124 
 
 Hotel Forms 255-261 
 
 Hotel Use & Occupancy Forms 395, 396 
 
 Household Furniture, Value 96 
 
 Forms (see Residence Property) 
 
 Housekeeping 128 
 
 Hull Policies 321 
 
 I 
 
 Ice Plant Form 301 
 
 Import Marine Policies 321 
 
 Improvements and Betterments 89, 425 
 
 Forms for Writing 426 
 
 Indemnity (Fire) 1, 2, 89 
 
 Indirect Loss (see Losses) 
 
 Inquiries 118 
 
 Inspections 128-130 
 
 Inspection Bureaus 25 
 
 Inspections, Electrical 25 
 
 Insolvent Insurance 113 
 
 Installment Purchases 212-213 
 
 Instructions 53, 134 
 
 Insurable Interests 89 
 
 Insurance 
 
 Aircraft 173 
 
 Automobile 174 
 
 Collision 175 
 
 Crop 178 
 
446 INDEX 
 
 INSURANCE— Continued 
 
 Earthquake ; 180 
 
 Explosion 180 
 
 Fire (see Fire Insurance) 
 
 Flood 184 
 
 Hail 184 
 
 Parcel Post 185 
 
 Property Damage 176 
 
 Radium 187 
 
 Rain - 187 
 
 Registered Mail 188 
 
 Salesmen's Samples 188 
 
 Sprinkler Leakage 189 
 
 Transportation 191 
 
 Trip Transit 191 
 
 Tornado 190 
 
 Tourist Floater 190 
 
 Water Damage . . / 193 
 
 Windstorm 190 
 
 Insurance Companies 1-9 
 
 Insurance Federations 19 
 
 Insurance Library Association 28 
 
 Insurance Society of New York 28 
 
 Insured 55-58, 88, 99-101, 107-110, 204 
 
 Demand Upon 110 
 
 Duty in Case of Fire 107 
 
 Duty in Case of Loss 108 
 
 Read Policy 204 
 
 Responsible for Agent 103 
 
 Interest 55, 56, 61, 99-102, 148, 197 
 
 As May Appear 55, 99, 206 
 
 Change of 61, 89 
 
 Contract of Sale 89, 100, 208 
 
 Insurable 89 
 
 Not Truly Stated 99 
 
 Ownership 99-102, 148 
 
 Payee 147-156 
 
 Sale of 100 
 
 Inter-Insurance Associations 6-9 
 
 Invalid Insurance 113 
 
 Inventory 107, 108, 213 
 
 Inventory, Waiver of. Clause 162 
 
 Iron Safe Clause 213 
 
 J 
 
 Jewelers' Form 249 
 
 Judgment Rates 131, 132 
 
 Junior Mutuals 9 
 
 K 
 
 Kerosene Oil Lamps 127, 205 
 
INDEX 447 
 
 Kerosene Oil Stoves 205 
 
 KiNNE Rule (apportionments) 80, 81 
 
 L 
 
 Laboratories, The Underwriters 21-22 
 
 Land Commission Records Form 253 
 
 Launch Forms 318, 319 
 
 Laundry Floater Form 414 
 
 Law of Average 119-120 
 
 Leakage (Sprinkler) Insurance 189 
 
 Leasehold 89 
 
 Leasehold Insurance 360-369 
 
 Leased Land 207 
 
 Legal Liability Forms 427-428, 434 
 
 Legal Tender 137 
 
 Liability, Denial of 118 
 
 Liability for Fines Form 423 
 
 Liability (Legal ) Form 427 
 
 Liability, Limit of, Rule (apportionments) 83 
 
 Liability (Policyholders') Mutual Cos 7 
 
 Library Forms 237, 243 
 
 Lighter Form 313 
 
 Lighting 126, 127 
 
 Lightning 89, 205, 3 12 
 
 Limit of Liability Rule (apportionments) 83 
 
 Limitations of Agent's Authority 11, 12 
 
 Limitation Clause 163 
 
 Lines, Average 120 
 
 Linotype Company Form 284 
 
 Lithographer's Form 284-285 
 
 Livery Stable Form 259 
 
 Loans on Collateral 155 
 
 Local Boards 19-20 
 
 Local Rules 198 
 
 Locations 59 
 
 Location Cards 46 
 
 Lodge Fixtures Forms 260 
 
 Lloyds Groups 8 
 
 Loss Blanks 30-68 
 
 Loss Clause, Three-Fourths 169, 170 
 
 Loss Payable Clause (see Payee Interests) 
 
 Loss Report 68 
 
 Losses 14, 53, 66-87, 91-97, 107-110 
 
 Adjustment by Agent 66-69 
 
 Agent's Duty 66 
 
 Appraisal 69-73 
 
 Apportionment 77-87 
 
 Cause of Fire 68 
 
 Companies' Attitude 67 
 
 Direct-Indirect 91-94 
 
448 INDEX 
 
 LOSSES— Continued 
 
 Explosion 93 
 
 Giving Advice 66,67 
 
 Non-Waiver Agreement 74, 75 
 
 Papers Required 68 
 
 Protecting Property 67 
 
 Reinstatement 63 
 
 Reporting 14, 53, 66, 68, 108 
 
 Smoke 92 
 
 Soot 92 
 
 Sound Value 68, 94-97 
 
 Subrogation 76, 114 
 
 What To Do 66 
 
 What to Avoid Doing 66-118 
 
 Lost Policies ( also Vouchers) 30 
 
 Lumber Forms 295-297 
 
 M 
 Machinery 
 
 Value 94-96, 199 
 
 Care of 127 
 
 Greasing 67 
 
 Forms 277-291 
 
 Machines (Specific) Form 431 
 
 Magistrate's Certificate 110 
 
 Mail Package Conference 28 
 
 Mail Package Insurance 28, 185 
 
 Make-up of Rate 13 
 
 Manufacturing Property 198 
 
 Manufacturing Property Forms 277-291 
 
 Manufacturing Use and Occupancy Forms 381-406 
 
 Profits Only 388 
 
 Marine Insurance 320 
 
 Market Value 95 
 
 Matches 128 
 
 Mercantile Property 198 
 
 Mercantile Building and Stock Forms 245-254 
 
 Mercantile Use and Occupancy Forms 387-406 
 
 Profits Only 388 
 
 Merchandise (see Stock) 
 
 Merchandise Floater Forms 408-412 
 
 Mergenthaler Form 284 
 
 Middleman 14 
 
 Minimum Rates 131 
 
 Miscellaneous 
 
 Clauses 212-213 
 
 Forms 292-310, 421-436 
 
 Misrepresentation 98 
 
 Monthly Accounts , 34-37 
 
 Moral Hazard 103, 121-123 
 
 Morristown Rule (apportionments) 86 
 
INDEX 449 
 
 Mortgage (Mortgagee) Interestj. . 1, 63, 138, 142, 147-156, 207, 435 
 
 Building & Loan 435 
 
 Foreclosure 207 
 
 Multiple 153 
 
 Satisfied 63 
 
 Mortgagees, Chattel 90, 154-156 
 
 Mortgagee Clauses 
 
 Explanation of 147-156 
 
 Full Contribution 149-150 
 
 Non-Contribution 149-150 
 
 Personal Contract 152 
 
 Separate Contract 149 
 
 Liability for Premium 151 
 
 Cancellation 138, 142, 151 
 
 Subrogation 151 
 
 Mortgagees, Second 153 
 
 Mortgagees, Subsequent 153 
 
 Motion Picture Theatre Form 309 
 
 Motion Picture Theatre Use and Occupancy Form 396 
 
 Mutual Companies 6-9 
 
 Method of Operation, Policy Holder's Liability, Deposit Pre- 
 mium, Ordinary Premium, Non-Assessable, Junior, Senior. 
 
 N 
 
 National Aircraft Underwriters Association 27 
 
 National Association of Local Agents 19 
 
 National Board of Fire Underwriters 20 
 
 National Fire Protection Association 22 
 
 National Electrical Code 26 
 
 Naval Stores Form 428 
 
 Neglect 208 
 
 Negligence 114, 208 
 
 Net Earnings Insurance (see Use and Occupancy) 
 New York Standard Policies (old and new) (see Policy 
 Contract) 
 
 New York Loss Committee Rule (apportionments) 83 
 
 Non-Concurrence 77-87, 200 
 
 Non-concurrence Rules for Apportionment '. .77-87 
 
 Non-Contribution Mortgagee Clause 149-150 
 
 Non-Waiver Agreement 74-75 
 
 Noon 107, 206 
 
 Notice of Cancellation 
 
 Address 
 
 Binders 
 
 Forms 
 
 Legal Methods 
 
 Legal Notice 
 
 Legal Tender 
 
 Personal Delivery 
 
 Premium Paid, Unpaid 
 
 134-146 
 
i 134-146 
 
 450 INDEX 
 
 Notice of Cancellation — Continued 
 
 Proof of Receipt 
 
 Registered Letter 
 
 Receipt by Broker 
 
 Receipt by Employee 
 
 Receipt by Insured 
 
 Return of Premium 
 
 Service of 
 
 Signature to Receipt 
 
 Time Necessary 
 
 To Mortgagee 
 
 To Payee 
 
 Who May Give 
 
 Notice of Fire or Loss 14, 53, 66-68, 107-108 
 
 Nurseryman's Advances Form 429 
 
 O 
 
 Obligation, By Agent 14 
 
 Occupancy 60 
 
 Office Building & Contents Form 251-252 
 
 Office Furniture & Fixtures Forms 245-252 
 
 Office Records, Systems, Work (see General Office Work) 
 
 Office Supplies 30 
 
 Oil Insurance Association 24 
 
 Oil Tank Form 297 
 
 Oils and Grease 128 
 
 Omnibus Risks 123 
 
 Open Policy Certificates and Forms 269-270 
 
 Open Policies, Marine 321 
 
 Origin of Fire 68 
 
 Other Insurance 205 
 
 Over Insurance 122 
 
 Ownership 99-100, 147 
 
 P 
 
 Pacific Board of Underwriters 23 
 
 Page vs. Sun Rule (apportionments) 78 
 
 Parcel Post Insurance 185 
 
 Partial Cancellation 60 
 
 Pawnbrokers' Form 250 
 
 Payee Interests 138, 147-156 
 
 Notice of Cancellation 138, 144 
 
 Payment of Losses 68 
 
 Pedigree Dog Policy 432 
 
 Percentage Value Clause (see Coinsurance Clauses) 
 
 Perpetual Policies 59 
 
 Personalty 90, 96 
 
 Photographers' Form 250 
 
 Physical Hazards 103, 123-130 
 
 Pile Drivers' Form 313 
 
INDEX • 451 
 
 Pipes 125 
 
 Heat, Smoke, Stove, Hot Water and Steam. 
 
 Plans 110 
 
 Pleasure Boat (Gasoline) Form 316 
 
 Policies, Blank 30, 55 
 
 Policy Certificate 64, 270 
 
 Policy Changes 60-65 
 
 Policy Conditions (General) 205-214 
 
 Policy Contract, The 88-115 
 
 Explanation, Nature of. Various Conditions. 
 
 Policy, Duplicate 64, 65 
 
 Policies, Lost 30 
 
 Policies, Perpetual 59 
 
 Policy, Reinstating 134 
 
 Policies, Valued 201, 202 
 
 Policy Void 117, 1S4, 145 
 
 Policy-Writing 55-65, 197-203, 204-214 
 
 Amount 58 
 
 Insured (Title) 55-57 
 
 As Interest May Appear 56, 99, 206 
 
 For Whom It May Concern 57 
 
 Estates 57 
 
 Commencement 58 
 
 Expiration 58 
 
 Term 58 
 
 Rate 58 
 
 Premium 58 
 
 Descriptions 59 
 
 Location 59 
 
 Occupancy 60 
 
 Endorsements 60-63 
 
 Inquiries 204 
 
 Rubber Stamps 60 
 
 Signing Forms and Policy 55 
 
 Special Agreements 204-214 
 
 Usual Permits 205-214 
 
 Power 127 
 
 Premium 1, 58, 118 
 
 Premiums, Collection of 35, 37-42 
 
 Methods, Systems. 
 
 Premiums (Fire) Form ; 424 
 
 Principles of Underwriting 119-121 
 
 Printers' Forms 283-285 
 
 Privileges, General 205-214 
 
 Profits Insurance 370-406 
 
 Definition 380 
 
 Clauses & Permits 381 
 
 Forms 381-406 
 
 Proof of Loss 68, 69, 108 
 
 Property Damage Insurance 176 
 
452 INDEX 
 
 Pro Rata Clause 164-167 
 
 Meaning, Method of Use. 
 
 Protection Equipment 129 
 
 Public Building Form 237, 243, 244 
 
 Public Library Forms 167, 244 
 
 Public Records Form 243 
 
 Q 
 
 Qualification of Agents Laws 10 
 
 R 
 
 Radio Equipments 214 
 
 Railroad Syndicates 25 
 
 Radium Insurance 187 
 
 Rain Insurance ? 187 
 
 Rates 13, 58, 131 
 
 Rates and Rating Methods 131-133 
 
 Minimum, Specific, Flat, Coinsurance, Blanket, Average, 
 Floating, Judgment, Schedule. 
 
 Reading Rule ( apportionments) 79 
 
 Reading Rule Modified 79-80 
 
 Realty 89 
 
 Rebuild (see Replacement) 
 
 Receipt for Payment of Loss 69 
 
 Receiver in Bankruptcy 100 
 
 Reciprocals 7 
 
 Records, Forms for Insuring 
 
 Public 243 
 
 Tax Board, Title Company, etc 252-253 
 
 Reduced Rate Average Clause (see Coinsurance Clause) 
 
 Reduction Rule, Gradual (apportionments) 81 
 
 Registers , 30, 43 
 
 Registered Mail Insurance 28, 188 
 
 Reinstatement 
 
 Of Loss 63 
 
 Of Policy 134 
 
 Reinsurance 26 
 
 Reinsurance Bureau 26 
 
 Reinsurance Clearing House 26 
 
 Reinsurance Treaties 26 
 
 Reinsurance by Agent 15 
 
 Reinsurance Forms 430 
 
 Removal 61 
 
 To Safety 108 
 
 Rents, Rental Value, Rent and Leasehold Insurance, In- 
 cluding Forms 89, 348-369 
 
 Repairs (see Replacement) 
 
 Replacement Clause (Cotton) 326 
 
 Replacement, Cost of. Value, etc .94-97 
 
 Replacement of Cancelled Policy 139 
 
INDEX 453 
 
 Reporting Losses 14, 53, 66, 68, 108 
 
 Requirements of Companies 4 
 
 Requisition Blanks 30 
 
 Reserve 4 
 
 Resident Agents 10 
 
 Residence Property (also Forms) 198, 215-236 
 
 Rice Rule ( apportionments) 81 
 
 Rice Rule Simplified 81 
 
 Right of Subrogation 76,114 
 
 Riot Insurance 181-183 
 
 Risks, Average 120 
 
 RiSKSj Omnibus , 123 
 
 Rocky Mountain Association , 23 
 
 Rubbish 128-214 
 
 Rubber Stamps 60 
 
 S 
 
 Sail Boat Form 317 
 
 Sale, Contract of 89, 100, 208 
 
 Salesmen's Samples 188 
 
 Salvage 97, 312 
 
 Salvage Corps 27 
 
 Satisfaction Piece 97 
 
 Schedule Rates and Systems 132, 133 
 
 School Forms 239-243 
 
 School Use and Occupancy Form 397 
 
 Securities Approved 4-5 
 
 Selection 119 
 
 Senior Mutuals 8 
 
 Separation in Forms 198 
 
 Servants' Clause 210 
 
 Service 
 
 By Agent 13 
 
 By Broker 17 
 
 Shut-Down 104 
 
 Signing Forms and Policies 55 
 
 Smoke Loss 92 
 
 Society Fixture Forms 260 
 
 Soliciting 12 
 
 Solicitors 18 
 
 Solvent Insurance 113 
 
 Soot Loss 92 
 
 Sound Value (see also Cash Value) 68, 94-97 
 
 Special Agreements 204-214 
 
 Special Hazards Forms (see Manufacturing Forms) 
 
 Specific Rates 131 
 
 Specific Machines Form 431 
 
 Sprinkler Leakage Insurance 28, 189 
 
 Sprinkler Leakage Conferences 28 
 
 Spontaneous Combustion Clause 214 
 
454 INDEX 
 
 Stable Forms 
 
 Business or Livery ' 259 
 
 Private (see Residence Property) 
 
 Standard Time 107, 206 
 
 Stock Companies ' 2, 3, 4 
 
 Domestic, Foreign, Requirements. 
 
 Stock Drying 67 
 
 Stock 199 
 
 Mercantile Forms 245-254 
 
 Manufacturing Forms 277-291 
 
 Storage Charges 276 
 
 Storage Forms 262-276 
 
 Store Building Forms 245-254 
 
 Store Furniture and Fixtures Forms 245-254 
 
 Street Railway Schedule Form 302 
 
 Street Railway U. & O. Form 391 
 
 Strike Insurance 181-183 
 
 Subrogation (also Receipt for) 75, 76, 114 
 
 Substitution 139 
 
 Sun Time 107, 206 
 
 Supplies 30 
 
 Systems, Card and Office (see General Office Work) 
 
 Systems, Color 52 
 
 T 
 
 Tannery (Stock) Forms 286 
 
 Tax Board Records Form 253 
 
 Telephone Risks Form 253, 254 
 
 Temperamental Hazard 122 
 
 Term Policies ! 58 
 
 Terminal Company Form 294 
 
 Theatre Forms 308-309 
 
 Theatre Use and Occupancy Form 396 
 
 Theatrical Floater 412 
 
 Theatrical Special Interest Form 424 
 
 Theory of Coinsurance 161 
 
 Three-fourths Loss Clause 170 
 
 Explanation, Wording. 
 
 Three-fourths Value Clause 169 
 
 Explanation, Wording. 
 
 Titles 55-58, 100, 197 
 
 As Interest May Appear 56, 99, 206 
 
 As Now or Hereafter Constituted 56 
 
 Title Company Form 252 
 
 Tobacco Barn Form 310 
 
 Tornado Associations 28 
 
 Tornado Insurance 190 
 
 Tornado U. & O. Forms 370 
 
 Tourist Floater Conference 28 
 
 Tourist Floater Insurance 190 
 
INDEX 455 
 
 Tourist Baggage Insurance 190 
 
 Tow Boat Form \ 313 
 
 Trade Acceptances 38 
 
 Trade Profit 2 
 
 Travel Insurance 190 
 
 Transportation Insurance 191 
 
 Trip Transit Insurance 191 
 
 Truckman's Form 424 
 
 Trust Clause ; 208-210 
 
 Trust Deed 4, 207 
 
 Trustee in Bankruptcy 100 
 
 Tug Boat Form 313 
 
 Two-thirds Vacancy Clause 171 
 
 U 
 
 Underwriters Agencies 6 
 
 Underwriters Grain Association 24 
 
 Underwriters Laboratories 21-22 
 
 Underwriters Service Association 23 
 
 Underwriting by Agent 119 
 
 Underwriting Principles 119 
 
 Underwriting Profit 2, 3 
 
 Universal Schedule 132 
 
 University Form 242 
 
 Unoccupancy 105 
 
 Use and Occupancy 370-406 
 
 Definition 370-381 
 
 Re Coinsurance 374 
 
 Clauses and Permits 381 
 
 Forms 381-406 
 
 V 
 
 Vacancy 105 
 
 Vacancy Clause, Two-thirds 171 
 
 Valid Insurance 113 
 
 Value (see also Cash Value and Sound Value) 
 
 Building 
 
 Fixtures 
 
 Household Furniture , 
 
 Machinery 
 
 Market 
 
 Personal Property 
 
 Repl acement 
 
 Value Clause, Three-fourths 170 
 
 Valued Policies 201 202 203 
 
 Valued Policy Law '.201,' 202 
 
 Vendor and Vendee 89* joo 
 
 Vessel Fire Register Warranty .' 312 
 
 Vessel Fire Forms , 311-319 
 
 94-97 
 213 
 
456 INDEX 
 
 Vessel Property, Forms and Clauses 311-319 • 
 
 Void Policy 117, 134, 145 i 
 
 Voucher, Lost Policy 30-32 j 
 
 Vouchers 110 I 
 
 W I 
 
 Waiver and Estoppel by Agent 11, 66, 74, 116-118 \ 
 
 Waiver of Inventory 162 ' 
 
 Waiver, Right of Recovery 76, 114 I 
 
 Waiver of Subrogation 76, 114 4 
 
 Wall Paper Sets, Form 431 1 
 
 Warehouse Forms 262-276 1 
 
 Warehouse (Close) Form, Cotton 334 " 
 
 Warehouse (Open) Form, Cotton 334 i 
 
 Warranty 106 \ 
 
 Waste 128 ; 
 
 Water Damage Conference 28 ] 
 
 Water Damage Insurance 193 ; 
 
 Watchman , 190 ■: 
 
 Water Pails 190 ] 
 
 Western Factory Insurance Association 24 ; 
 
 Western Insurance Bureau 22 ! 
 
 Western Sprinklered Risk Association 23 j 
 
 Western Union 22 j 
 
 Windstorm Associations 28 i 
 
 Windstorm Insurance 28 i 
 
 Forms 190 : 
 
 Use and Occupancy Forms 370 i 
 
 Work and Materials Clause 206 \ 
 
 Writing Forms 197-203 \ 
 
 Writing Policies (see Policy- Writing) ] 
 
 j 
 
 Y j 
 
 Yacht Forms 317-319 
 
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