Chap. 256.—An ACT to prescribe the form and require the use of a standard fire
insurance policy in the State of Virginia. [H B 115]

Approved March 19, 1928

Be it enacted by the general assembly of Virginia as follows:

_ Section 1. The printed blank form of a contract or policy of fire
insurance adopted by the national convention of insurance commis-
1oners, at its meeting, held in the city of New York on the twelfth
lav of December, nineteen hundred and sixteen, shall be filed by the
‘tate Corporation commission in its office on or before the first day of
uly, nineteen hundred and twenty-eight, with the date of such filing
ndorsed thereon by it and shall be known and designated as the
standard fire insurance policy of the State of Virginia,” and after
uly first, nineteen hundred and twenty-eight, no fire insurance cor-
oration, company and other insurer, its officers or agents, shall make,
sue or deliver for use any fire insurance policy or the renewal of
iy such policy on property in this State, other than such as shall con-
rm in all particulars as to blanks, size of type, context, provisions,
‘reements and conditions with such printed blank form of contract or
icy: and no other or different provision, agreement, condition or
iuse shall be in any manner made a part of such contract or policy
endorsed thereon or added thereto, or delivered therewith, except as
ows, to-wit:

Iirst. There may be printed at the head of said policy in the space
licated by the words “space for insertion of name of company or
npanies issuing the policy and other matter permitted to be stated
he head of the policy” the name of the company or companies issuing
policy ; the location and place of business thereof; the date of in-
poration or organization thereof; whether said company or com-
ies are stock or mutual corporations; and such device or devices
as the company or companies issuing said policy shall desire.

Second. There may be printed at the end of the first page of said
policy in the space indicated therefor by the words “space for date and
for signatures and titles of officers and agent,” the names and titles
of the officers executing and attesting the policy, and the words “but
this policy shall not be valid until countersigned by the duly authorized

agent of the company At ............-..--:ccceeceeeececeeeeeceenceeeeeeetesseeeseeeees ” (or the
word “manager” in place of the word “agent”) and the words “counter-
CTT (a6 | this... day of

wesceceesseeeeeeteceeeceesceeeneneeseeeeeets ,” followed by a blank space for the signature
of such duly authorized agent or manager, and the word “agent” or
“manager.”

Third. There may be printed in the space indicated by the words
“space for description of property,” or added to the policy at such
space by agreement in writing thereon or by rider attached thereto the
following: 1. Descriptions and specifications, by schedule or otherwise,
of the property covered by the policy; 2. The extent of the application
of insurance under the policy; 3. The extent of the contribution to be
made under the policy in case of loss or damage; 4. Any other matter
necessary clearly to express all the facts and conditions of insurance
on any particular risk; provided, however, that no such agreement or
rider shall be inconsistent with or a waiver of any of the conditions or
provisions of the standard fire insurance policy hereby established,
except that in case of a mortgagee not named in the policy as the in-
sured, such provisions may be added as shall not be inconsistent with
or a waiver of any of the provisions of the said standard policy relating
to mortgage interests, but if so added shall include the provisions of a
standard rider or endorsement relating to such interest, the form of
which shall have been approved by the State corporation commission
and filed in the office as hereinafter provided. Every such agreement
or rider shall be plainly printed in type, the face of which shall not be
smaller than eight point, or is written in pen and ink or typewriter.

Fourth. There may be added to the policy, with the approval of
the State corporation commission, any provision which any company
issuing a policy is required by law to insert in its policies, not in con-
flict with the provisions of such “standard fire insurance policy.” All
such provisions shall be printed in a group apart from the other pro-
visions, agreements or-conditions of the policy under separate title, as
follows: ‘Provisions required by law to be stated in this policy.”

Fifth. If the policy be made by a mutual or other company having
special regulations lawfully applicable to its organization, membership,
policies or contracts of insurance, such regulations may, with the ap-
proval of the State corporation commission, be written or printed upon,
attached or appended to the policy, upon the third page of such standard
policy, but shall be preceded by the words: “This policy is issued by a
mutual company having special regulations lawfully applicable to its
organization, membership, policies or contracts of insurance of which
the following shall apply to and form a part of this policy.”
Sixth. Contracts for temporary insurance may be made for a period
not exceeding thirty days, which shall be deemed to include all of the
provisions of the standard policy with such agreements and riders in
writing added thereto as mav be necessary to effect valid insurance
of the described property and such other agreements not inconsistent
with, or a waiver of any condition or provision of the standard policy,
as may be expressed in such contract, except that the cancellation
clause of the standard policy shall be superseded by the provisions of
any such temporary contract regulating cancellation or termination of
insurance, thereunder, and except that where any such- contract for
temporary insurance shall specify the hour of the day when ‘liability
shall commence, such statement of time shall supersede the provisions
of such standard fire insurance policy to the contrary, and such state-
ment shall be deemed to refer to standard time at the place of loss or
damage. |

Seventh. The standard policy provided for herein need not be used
for effecting reinsurance between insurers.

Eighth. Two or more fire insurance corporations authorized to
transact business in this State, may issue a combination standard form
of policy, using a distinctive title therefor, which title shall appear at
the head of such policy followed by the titles of the several corpora-
tions obligated thereupon, and which policy shall be executed by the
officers of each of such corporations; provided, that before such cor-
porations shall issue such combination policy, they shall have received
the express permission of the State corporation commission to issue
the same, and the title of such proposed policy and the terms of the
additional provisions thereof, hereby authorized, shall have been ap-
proved by it, which terms, in addition to the provisions of the standard
policy and not inconsistent therewith, shall provide substantially, under
a separate title therein, to be known as “Provisions specially applicable
to this combination policy,” as follows: (a) That each corporation
executing such policy shall be liable for the full amount of any loss
or damage, according to the terms of the policy, or a specific percent-
age thereof; (b) that service of process or of any notice or proof of
loss required by the said policy, upon any of the corporations executing
the same shall be deemed to be service upon all; and provided, further,
that the unearned premium liability on each policy so issued shall be
maintained by each of such corporations on the basis of the liability
of each to the insured thereunder.

Ninth. There may be printed upon the filing back of said policy
the name of the company or companies issuing the policy; the loca-
tion and place of business thereof; statement of the amount of capital
thereof; such device or devices as the company or companies issuing
said policy shall desire, and if the policy be a combination policy, such
distinctive title therefor as may be authorized for use as herein pro-
vided. There may also be printed, stamped or otherwise endorsed
upon the filing back of said policy the name with the word “agent”
or “agents” and place of business of any insurance agent or agents.
The words at the top of the filing back of said policy, “Standard fire
insurance policy of the State of Virginia” may be changed by adding
after or before the word “Virginia” the names of any States in which
the said policy form shall be standard when the policy is issued.

Tenth. There may be printed upon said policy form, elsewhere than
upon the first and second pages or the filing back thereof, the names of
the officers and directors of the company or companies issuing the said
policy, and any form providing for assignment of interest or removal
and any blank form of receipt, approved by the State corporation com-
mission.

Section 2. The State corporation commission, or any one or more
competent and disinterested persons specially appointed by it for that
purpose, shall have access to and may at any time examine the books,
papers and documents of any fire insurance corporation doing business
in this State, or of any corporation, association or bureau maintained
for the purpose of suggesting, approving or making rates to be used
by more than one underwriter for insurance on property located in this
State, for the purpose of determining the number and extent of use
of any riders, endorsements, clauses, permits, forms or other memo-
randa attached to and made a part of any fire insurance contract relat-
ing to property located in this State; and if after such examination
and inspection such State corporation commission may determine that
the use of any such rider, endorsement, clause, permit form or other
memoranda is so extensive that there should be in its judgment a
standard form thereof, it shall thereupon prepare and file in its office
and adopt, by order entered of record, such standard forms, and
thereafter no fire insurance corporation shall attach to any such
standard policy of insurance any form covering substantially the same
agreement provided for by such standard form, except it be in the
precise language of the form so filed and adopted by the State cor-
poration commission. Forms of riders, endorsements, clauses, permits,
or other memoranda to be attached to and made a part of fire insurance
contracts relating to property located in this State may be presented
for filing in the office of the State corporation commission by any
corporation, association or bureau maintained for the purpose of sug-
gesting, approving or making rates to be used by more than one under-
writer for insurance on property located in this State, and, when ap-
proved and filed by such State corporation commission, shall thereupon
become standard forms thereof, and their use shall thereafter be re-
quired, as hereinbefore provided. Whenever, in the judgment of the
State corporation commission, there shall be no further necessity for
requiring the use of any standard form hereinabove provided for, it
may give notice in writing of such determination, to each fire insurance
corporation doing business in this State, and to each such corporation,
association or bureau maintained for the purpose of suggesting, approv-
ing or making rates, as aforesaid, and thereafter the use of such
standard form shall not be required as herein provided.

Section 3. Appropriate forms of supplemental contract or contracts
whereby the property described in such policy shall be insured against
one or more of the risks which any fire insurance corporation, com-
pany or other insurer may be permitted to insure under the laws of
this State, in addition to the risk of direct loss or damage by fire, may
be approved by the State corporation commission, and their use in
connection with a standard fire insurance policy may be authorized by it.

Section 4. Whenever application shall be made for the selection
of an umpire, pursuant to the provisions relating to appraisals as con-
tained in such standard fire insurance policy, such application shall be
made to the circuit or other court of record in whose jurisdiction the
lost or damaged property is or was located, or to the judge thereof in
vacation, on fifteen days’ notice in writing, to be given by either party
to the other, of his or its intention so to do. Any such notice in writ-
ing, when served by the insured may be served upon any local agent of
the company; and the said judge shall, on proof by affidavit of the
failure or neglect of the said appraisers to agree upon and select an
umpire within the time provided in said policy, and of the service of
notice aforesaid, forthwith appoint a competent and disinterested person.
to act as such umpire in the ascertainment of the amount of said loss
or damage.

Section 5. No company or other insurer subject to the provisions of
this act may issue any policy or contract of insurance covering property
in this State which shall contain any clause or provision requiring
the assured to take out or maintain a larger amount of insurance than
that expressed in such policy, nor in any way providing that the assured
shall be liable as a co-insurer with the company issuing the policy for
any part of the loss or damage which may be caused by fire to the prop-
erty described in such policy, nor any clause or provision limiting the
amount payable under said policy to less than the actual cash value of
the property insured at the time of the loss, and any such clauses
and/or provisions shall be null and void, and of no effect, excepting
only that it may be optional with the insured to accept a policy or
contract of insurance containing such clauses and/or provisions when
a corresponding consideration in the rate for insurance on the property
described in such policy is actually made, and the consideration therefor
named in such policy, and when so accepted such clauses and/or pro-
visions shall be binding on the parties to the contract.

Section 6. All contracts of insurance on property in this State shall
be deemed to have been made therein.

Section 7. All policy forms used by every insurance company or
other insurer covering property in this State shall be hled with the State
corporation commission.

Section 8. This act shall not apply to mutual insurance companies
organized under the laws of this State conducting business only in this
State and exclusively upon the assessment plan.

Section 9. All acts and parts of acts in conflict herewith are hereby
repealed.
The words at the top of the filing back of said policy, “Standard fire
insurance policy of the State of Virginia” may be changed by adding
after or before the word “Virginia” the names of any States in which
the said policy form shall be standard when the policy is issued.

Tenth. There may be printed upon said policy form, elsewhere than
upon the first and second pages or the filing back thereof, the names of
the officers and directors of the company or companies issuing the said
policy, and any form providing for assignment of interest or removal
and any blank form of receipt, approved by the State corporation com-
mission.

Section 2. The State corporation commission, or any one or more
competent and disinterested persons specially appointed by it for that
purpose, shall have access to and may at any time examine the books,
papers and documents of any fire insurance corporation doing business
in this State, or of any corporation, association or bureau maintained
for the purpose of suggesting, approving or making rates to be used
by more than one underwriter for insurance on property located in this
State, for the purpose of determining the number and extent of use
of any riders, endorsements, clauses, permits, forms or other memo-
randa attached to and made a part of any fire insurance contract relat-
ing to property located in this State; and if after such examination
and inspection such State corporation commission may determine that
the use of any such rider, endorsement, clause, permit form or other
memoranda is so extensive that there should be in its judgment a
standard form thereof, it shall thereupon prepare and file in its office
and adopt, by order entered of record, such standard forms, and
thereafter no fire insurance corporation shall attach to any such
standard policy of insurance any form covering substantially the same
agreement provided for by such standard form, except it be in the
precise language of the form so filed and adopted by the State cor-
poration commission. Forms of riders, endorsements, clauses, permits,
or other memoranda to be attached to and made a part of fire insurance
contracts relating to property located in this State may be presented
for filing in the office of the State corporation commission by any
corporation, association or bureau maintained for the purpose of sug-
gesting, approving or making rates to be used by more than one under-
writer for insurance on property located in this State, and, when ap-
proved and filed by such State corporation commission, shall thereupon
become standard forms thereof, and their use shall thereafter be re-
quired, as hereinbefore provided. Whenever, in the judgment of the
State corporation commission, there shall be no further necessity for
requiring the use of any standard form hereinabove provided for, it
may give notice in writing of such determination, to each fire insurance
corporation doing business in this State, and to each such corporation,
association or bureau maintained for the purpose of suggesting, approv-
ing or making rates, as aforesaid, and thereafter the use of such
standard form shall not be required as herein provided.

Section 3. Appropriate forms of supplemental contract or contracts
WHI Lait pivepr+ ty MACOULTIUUU £4h OUTED pVyliry SEALE PE PIOUIRM ARGIOL
one or more of the risks which any fire insurance corporation, com-
pany or other insurer may be permitted to insure under the laws of
this State, in addition to the risk of direct loss or damage by fire, may
be approved by the State corporation commission, and their use in
connection with a standard fire insurance policy may be authorized by it.

Section 4. Whenever application shall be made for the selection

of an umpire, pursuant to the provisions relating to appraisals as con-
tained in such standard fire insurance policy, such application shall be
made to the circuit or other court of record in whose jurisdiction the
lost or damaged property is or was located, or to the judge thereof in
vacation, on fifteen days’ notice in writing, to be given by either party
to the other, of his or its intention so to do. Any such notice in writ-
ing, when served by the insured may be served upon any local agent of
the company; and the said judge shall, on proof by affidavit of the
failure or neglect of the said appraisers to agree upon and select an
umpire within the time provided in said policy, and of the service of
notice aforesaid, forthwith appoint a competent and disinterested person
to act as such umpire in the ascertainment of the amount of said loss
or damage.

Section 5. No company or other insurer subject to the provisions of
this act may issue any policy or contract of insurance covering property
in this State which shall contain any clause or provision requiring
the assured to take out or maintain a larger amount of insurance than
chat expressed in such policy, nor in any way providing that the assured
shall be liable as a co-insurer with the company issuing the policy for
2ny part of the loss or damage which may be caused by fire to the prop-
-rty described in such policy, nor any clause or provision limiting the
amount payable under said policy to less than the actual cash value of
he property insured at the time of the loss, and any such clauses
nd/or provisions shall be null and void, and of no effect, excepting
nly that it may be optional with the insured to accept a policy or
ontract of insurance containing such clauses and/or provisions when
corresponding consideration in the rate for insurance on the property
escribed in such policy is actually made, and the cansideration therefor
arned in such policy, and when so accepted such clauses and/or pro-
isions shall be binding on the parties to the contract.

Section 6. All contracts of insurance on property in this State shall
: deemed to have been made therein.

Section 7. All policy forms used by every insurance company or
her insurer covering property in this State shall be filed with the State
rporation commission.

Section 8. This act shall not apply to mutual insurance companies
xamnized under the laws of this State conducting business only in this
ate and exclusively upon the assessment plan.

Section 9. All acts and parts of acts in conflict herewith are hereby

\Ca led.