CHAPTER 514

AN ACT to amend and reenact §§ 88-178, 88-179, 38-184, 88-185,
88-186 and 88-190 of the Code of 1950, relating generally
to insurance, filling blanks on standard form, execution of
policies, material permitted on back of policy, other matter
permitted, form of standard fire insurance policy and ap-
proval of certain forms, and to repeal certain mien

H 443 ]

Approved April 7, 1950

Be it enacted by the General Assembly of Virginia:
1. That §§ 38-178, 38-179, 38-184, 38-185, 38-186 and 38-190
of the Code of 1950 be amended and reenacted as follows:

§ 38-178. How blanks on standard policy form to be
filled.—There shall be printed at the head of * the standard fire
insurance policy, in the space indicated by the words “Space
for insertion of name of company or companies issuing the
policy and other matter permitted to be stated at the head of
the policy”, the name * of the insurer * issuing the policy, the
location of the home office thereof, and a statement showing
whether * the insurer * 7s a stock or mutual company or a recip-
rocal or inter-insurer *, or other form of insurer *. If the policy
is a combination policy issued by more than one insurer, similar
information shall be included at the head of the policy as to each.
There may be used in connection with the foregoing * any dis-
tinctive device * as may be desirable on behalf of the company
issuing the policy, and for the word “Company” * as appears in
the prescribed wording of the standard fire. insurance policy
there may be substituted a more accurate * word or term for
the purpose of describing the type of insurer issuing the policy.

§ 38-179. Execution of policies—* The standard fire in-
surance policy shall be executed by the proper officers of the
insurer or insurers, whose signatures thereto may be in fac-
simile * and, in addition thereto, the * policy when issued shall
be countersigned in writing by a resident agent * of the insurer
* issuing the same, in the manner required by * § 88-61; pro-
vided, however, that the * foregoing provisions of this section
shall not apply to * policies issued by or through any reciprocal
or inter-insurance exchange. A policy issued in accordance with
the provisions * of this section shall be deemed to have been
countersigned at the location of the agent, as shown thereon.
§ 38-184. Material permitted on back of policy.—There
may be printed upon the back of * the standard fire insurance
policy the name of the insurer or insurers issuing the policy, *
and the location of the home office thereof ; a statement showing
whether the insurer is a stock or mutual company or a reciprocal
or inter-insurer or any other form of insurer; a statement of
the amount of capital and surplus thereof; * any device * or
trade-mark commonly used by the insurer; and, if the policy * 1s
a combination policy, such distinctive title therefor as * 18
authorized for use * in § 388-188. There also may be printed,
stamped or otherwise endorsed upon the back of * the policy
the number thereof, the amount of insurance * as to each peril
covered and the amount of premium therefor or the total pre-
mium under the policy, the name of the insured, the name of the
agent * issuing or countersigning * the policy, and the place of
business of * the agent *. To the words, “Standard Fire Insur-
ance Policy of *”, at the ‘top of the back of * the policy * shall
be added * the word “Virginia”, and either before or after the
word “Virginia” there may be added the names of any other *
jurisdictions in which the policy form is standard; provided, it
shall be permissible to transpose such wording from the back of
the policy to the top of the first page of the policy. Any such
matter provided for in this section may be in form or arrange-
ment most suitable to the insurer or insurers issuing the policy
and need not be in the form or arrangement given in § 88-186.

§ 38-185. Other matter that may appear elsewhere.—
There may be printed upon the standard fire insurance policy
form, elsewhere than upon the first, * second, or third pages *
thereof, the names of the officers and directors of the insurer
or insurers issuing the policy and * any other matter not incon-
sistent with the provisions of the policy.

§ 38-186. Form and wording of standard fire policy.—The
form and wording of the “Standard Fire Insurance Policy of
the State of Virginia” shall be as hereinafter set forth *. Provided,
however, the words “first page of standard fire policy”, “ ‘(Space
for insertion of name of company or companies issuing the
policy and other matter permitted to be stated at the head of
the policy.)”, and “‘(Space for listing amounts of insurance,
rates and premiums for the basic coverages insured under the
standard form of policy and for additional coverages or perils
insured under endorsements attached.)” on page 1; the words
“second page of standard fire policy’”’ on page 2 thereof; words
“third page of standard fire policy” on page 8 thereof; and the
words “back of standard fire policy (optional)” and ‘(Com-
pany)” on the back thereof, shall be deemed to be explanatory
only and need not be included as a part of the standard fire
insurance policy required to be used.
§ 38-190. Approval of forms for coverage of additional
risks; arrangement first page of policy.—The Commission shall
have the power to approve and authorize for use, in connection
with the standard fire insurance policy, appropriate forms of
supplemental contracts or extended coverage endorsements
whereby the interests in the property described in such policy
shall be insured against one or more of the perils which the in-
surer is empowered to assume, in addition to the perils covered
by the standard fire insurance policy*.

The Commission shall have the power to approve and
authorize for use, in connection with the standard fire insurance
policy, appropriate forms of supplemental * contracts or ex-
tended coverage endorsements whereby the interests in an in-
sured building or structure, including building service equip-
ment, * a part thereof, as described in such policy, may be (1)
indemnified for the difference between the actual cash value of
the property at the time of * loss and the cost of repair or re-
placement thereof on the same site with new materials of like
kind and quality, within a reasonable time after the loss, and
without deduction for depreciation; (2) indemnified for * addi-
tional cost or loss by reason of any ordinance or law, in force at
the time of loss, which necessitates the demolition of any portion
of the insured property; (3) indemnified for any increased cost
of repair or replacement by reason of any ordinance or law regu-
lating construction or repair of the insured building *; and (4)
indemnified for loss from interruption of business, untenanta-
bility or termination of leasehold interest because of damage to
or destruction of the property described in such policy.

The first page of the standard fire insurance policy, in the
space indicated by the words “Space for * listing amounts of in-
surance, rates and premiums for the basic coverages insured
under the standard form of policy and for additional coverages
or perils insured under endorsements attached” on page 1, may
be * arranged to provide appropriate space, as required by the
insurer issuing the policy, for the listing of amounts of insur-
ance, rates, premiums and * the coverages * with respect to in-
surance effected thereunder; and such arrangement may provide
appropriate space for the inclusion of other data or information
essential for duplication on daily reports for * use of the insurer
or agents issuing the policy. The number of the policy may be
located in left top corner or right top corner or in margin of the
first page, as may be most convenient to the insurer issuing the
policy. The first page of such policy shall embody the wording
as provided on page 1 but the lineage arrangement as shown on
page 1 may be varied and there also may be inserted additional
printed matter relating to the coverage to be afforded under the
policy (including the provisions of supplemental contracts or
extended coverages as set forth in this section); provided such
additional printed matter is not inconsistent or in conflict with
the provisions of the standard fire insurance policy and is in
conformity with other applicable laws relating to the regulation
of fire insurance.

2. All provisions of the Code of 1950 providing a standard
form for policies of fire insurance and referring thereto as
Plates 1 through 6 are repealed; provided, however, that the
present standard form for policies of fire insurance referred to
in the Code of 1950 as Plates 1 through 6, may be used by any
insurer, at its option, until May 1, 1952.

3. An emergency exists and these sections as amended shall
become effectivé on and after May one, nineteen hundred fifty,
provided that as to the amendment of § 38-186, such amend-
ment shall not become effective until on and after January one,
nineteen hundred fifty-one, provided that any insurer may use
policies containing the language contained in § 38-186 as hereby
amended on and after May one, nineteen hundred fifty.

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