§ 58-44-16. Fire insurance policies; standard fire insurance policy provisions.
§ 58‑44‑16. Fireinsurance policies; standard fire insurance policy provisions.
(a) The provisions of afire insurance policy, as set forth in subsection (f) of this section, shall beknown and designated as the "standard fire insurance policy."
(b) With the exceptionof policies covering (i) automobile fire, theft, comprehensive, and collisionor (ii) marine and inland marine insurance, no fire insurance policy shall bemade, issued, or delivered by any insurer or by any agent or representative ofthe insurer on any property in this State, unless it conforms in substance withall of the provisions, stipulations, agreements, and conditions in subsection(f) of this section.
(c) There shall beprinted at the head of the policy the name of the insurer or insurers issuingthe policy; the location of the home office of the insurer or insurers; astatement whether the insurer or insurers are stock or mutual corporations orare reciprocal insurers. This section does not limit an insurer to the use ofany particular size or manner of folding the paper upon which the policy isprinted; provided, however, that any insurer organized under special charterprovisions may so indicate upon its policy and add a statement of the planunder which it operates in this State.
(d) The standard fireinsurance policy need not be used for effecting reinsurance between insurers.
(e) The provisions ofthe standard fire policy are stated in this section and shall be incorporatedin fire insurance policies subject to this section. If any conditions of thissection are construed to be more liberal than any other policy conditionsrelating to the perils of fire, lightning, or removal, the provisions of thissection shall apply.
(f) The followingsubdivisions comprise all of the provisions, stipulations, agreements, andconditions of the standard fire insurance policy:
(1) General provisions. In consideration of the provisions, stipulations, agreements, and conditionsin this policy or added to this policy, and of the premium specified in thedeclarations or in endorsements made a part of this policy, this insurer, forthe term of years specified in the declarations from inception date shown inthe declarations at 12:01 A.M. to expiration date shown in the declarations at12:01 A.M. at the location of the property covered, to an amount not exceedingthe limit of liability specified in the declarations, does insure the insurednamed in the declarations and legal representatives to the extent of the actualcash value of the property at the time of loss but not exceeding the amountthat it would cost to repair or replace the property with material of like kindand quality within a reasonable time after the loss, without allowance for anyincreased cost of repair or reconstruction by reason of any ordinance or lawregulating construction or repair and without compensation for loss resultingfrom interruption of business or manufacture, nor in any event for more thanthe interest of the insured against all direct loss by fire, lightning, andother perils insured against in this policy, including removal from premisesendangered by the perils insured against in this policy, except as hereinafterprovided, to the property described in the declarations while located orcontained as described in this policy, or pro rata for five days at each properplace to which any of the property shall necessarily be removed forpreservation from the perils insured against in this policy but not elsewhere.Assignment of this policy shall not be valid except with the written consent ofthis insurer. This policy is made and accepted subject to the provisions,stipulations, agreements, and conditions in this section, which are hereby madea part of this policy, together with such other provisions, stipulations,agreements, and conditions that may be added to this policy as provided in thispolicy.
(2) Concealment orfraud. This entire policy shall be void if, whether before or after a loss,the insured has willfully concealed or misrepresented any material fact orcircumstance concerning this insurance or the subject of this insurance, or theinterest of the insured in the subject of this insurance, or in the case of anyfraud or false swearing by the insured relating the subject of this insurance.
(3) Uninsurable and exceptedproperty. This policy shall not cover accounts, bills, currency, deeds,evidences of debt, money, or securities; nor, unless specifically named in thispolicy in writing, bullion or manuscripts.
(4) Perils not included. This insurer shall not be liable for loss by fire or other perils insuredagainst in this policy caused, directly or indirectly, by enemy attack by armedforces, including action taken by military, naval, or air forces in resistingan actual or an immediately impending enemy attack; invasion; insurrection;rebellion; revolution; civil war; usurped power; order of any civil authorityexcept acts of destruction at the time of and for the purpose of preventing thespread of fire, provided that the fire did not originate from any of the perilsexcluded by this policy; neglect of the insured to use all reasonable means tosave and preserve the property at and after a loss, or when the property isendangered by fire in neighboring premises; or for loss by theft.
(5) Other insurance. Otherinsurance may be prohibited or the amount of insurance may be limited byendorsement attached to this policy.
(6) Conditionssuspending or restricting insurance. Unless otherwise provided in writingadded to this policy, this insurer shall not be liable for loss occurring:
a. While the hazard isincreased by any means within the control or knowledge of the insured;
b. While a describedbuilding, whether intended for occupancy by owner or tenant, is vacant orunoccupied beyond a period of 60 consecutive days; or
c. As a result ofexplosion or riot, unless fire ensues, and in that event for loss by fire only.
(7) Other perils orsubjects. Any other peril to be insured against or subject of insurance to becovered in this policy shall be by endorsement in writing on this policy oradded to this policy.
(8) Added provisions. Theextent of the application of insurance under this policy and of thecontribution to be made by this insurer in case of loss, and any otherprovision or agreement not inconsistent with the provisions of this policy, maybe provided for in writing added to this policy; provided, however, noprovision may be waived except such as by the terms of this policy is subjectto change.
(9) Waiver provisions. No permission affecting this insurance shall exist, or waiver of any provisionbe valid, unless granted in this policy or expressed in writing added to thispolicy. No provision, stipulation, or forfeiture shall be held to be waived byany requirement or proceeding on the part of this insurer relating to appraisalor to any examination provided for in this policy.
(10) Cancellation ofpolicy. This policy shall be cancelled at any time at the request of theinsured, in which case this insurer shall, upon demand and surrender of thispolicy, refund the excess of paid premium above any short rates for the expiredtime. This policy may be cancelled at any time by this insurer by giving to theinsured a five days' written notice of cancellation with or without tender ofthe excess of paid premium above the pro rata premium for the expired time,which excess, if not tendered, shall be refunded on demand. Notice ofcancellation shall state that said excess premium (if not tendered) will berefunded on demand.
(11) Mortgagee interestsand obligations. If loss is made payable, in whole or in part, to adesignated mortgagee not named in this policy as the insured, such interest inthis policy may be cancelled by giving to such a mortgagee a ten days' writtennotice of cancellation. If the insured fails to render proof of loss, themortgagee, upon notice, shall render proof of loss as specified in this policywithin 60 days thereafter and shall be subject to the provisions of this policyrelating to appraisal and time of payment and of bringing suit. If this insurerclaims that no liability existed as to the mortgagor or owner, it shall, to theextent of payment of loss to the mortgagee, be subrogated to all themortgagee's rights of recovery, but without impairing the mortgagee's right tosue; or this insurer may pay off the mortgage debt and require an assignment ofthat debt and of the mortgage. Other provisions relating to the interests andobligations of the mortgagee may be added to this policy by agreement inwriting.
(12) Pro rata liability. This insurer shall not be liable for a greater proportion of any loss than theamount insured by this policy bears to all insurance covering the propertyagainst the peril involved, whether collectible or not.
(13) Requirements in caseloss occurs. The insured shall give immediate written notice to this insurerof any loss, protect the property from further damage, forthwith separate thedamaged and undamaged personal property, put it in the best possible order, andfurnish a complete inventory of the destroyed, damaged, and undamaged property,showing in detail quantities, costs, actual cash value, and amount of lossclaimed. Within 60 days after the loss, unless that time is extended in writingby this insurer, the insured shall render to this insurer a proof of loss,signed and sworn to by the insured, stating the knowledge and belief of theinsured as to the following: the time and origin of the loss, the interest ofthe insured and of all others in the property, the actual cash value of eachitem of the property and the amount of loss to the property, all encumbranceson the property, all other contracts of insurance, whether valid or not,covering any of the property, any changes in the title, use, occupation,location, possession, or exposures of the property since the issuing of thispolicy, by whom and for what purpose any building described in this policy andthe several parts of the building were occupied at the time of loss and whetheror not it then stood on leased ground, and shall furnish a copy of all thedescriptions and schedules in all policies and, if required, verified plans andspecifications of any building, fixtures, or machinery destroyed or damaged.The insured, as often as may be reasonably required, shall exhibit to anyperson designated by this insurer all that remains of any property described inthis policy, and submit to examinations under oath by any person named by thisinsurer, and subscribe the same; and, as often as may be reasonably required,shall produce for examination all books of account, bills, invoices, and othervouchers, or certified copies of them if originals are lost, at such reasonabletime and place as may be designated by this insurer or its representative, andshall permit extracts and copies of them to be made.
(14) Appraisal. If theinsured and this insurer fail to agree as to the actual cash value or theamount of loss, then, on the written demand of either, each shall select acompetent and disinterested appraiser and notify the other of the appraiser selectedwithin 20 days after the demand. The appraisers shall first select a competentand disinterested umpire; and failing for 15 days to agree upon a competent anddisinterested umpire, on the request of the insured or this insurer, acompetent and disinterested umpire shall be selected by a judge of a court ofrecord in the state in which the property covered is located. The appraisersshall then appraise the loss, stating separately actual cash value and loss toeach item; and, failing to agree, shall submit only their differences to theumpire. An award in writing, so itemized, of any two when filed with thisinsurer shall determine the amount of actual cash value and loss. Eachappraiser shall be paid by the party selecting him and the expenses of appraisaland umpire shall be paid by the parties equally.
(15) Company's options. Itshall be optional with this insurer to take all, or any part, of the propertyat the agreed or appraised value and also to repair, rebuild, or replace theproperty destroyed or damaged with other of like kind and quality within areasonable time, on giving notice of its intention so to do within 30 daysafter the receipt of the proof of loss required in this policy.
(16) Abandonment. Therecan be no abandonment to this insurer of any property.
(17) When loss payable. Theamount of loss for which this insurer may be liable shall be payable 60 daysafter proof of loss, as provided in this policy, is received by this insurerand ascertainment of the loss is made either by written agreement between theinsured and this insurer or by the filing with this insurer of an award asprovided in this policy.
(18) Suit. No suit oraction on this policy for the recovery of any claim shall be sustainable in anycourt of law unless all the requirements of this policy have been complied withand unless commenced within three years after inception of the loss.
(19) Subrogation. Thisinsurer may require from the insured an assignment of all rights of recoveryagainst a party for loss to the extent that payment therefor is made by thisinsurer. (2009‑171,s. 1.)