Section 3404. Fire insurance contracts; standard policy provisions; permissible variations

(a)  The  printed  form  of  a  policy  of  fire  insurance,  as  set  forth  in subsection (e) hereof, shall be known and
  designated as the "standard fire insurance policy of the  state  of  New
  York."
    (b)  (1) No policy or contract of fire insurance shall be made, issued
  or delivered by any insurer or by any agent or  representative  thereof,
  on  any  property  in  this  state,  unless  it  shall conform as to all
  provisions, stipulations, agreements and conditions with  such  form  of
  policy,  except  policies  subject  to  the  provisions of section three
  thousand one hundred two of this chapter  which  shall  be  required  to
  comply  with  the  provisions of paragraph one of subsection (f) of this
  section.
    (2) There shall be printed or typewritten at the head of  such  policy
  the  name and home office address of the insurer or insurers issuing the
  policy and a statement whether such insurer or  insurers  are  stock  or
  mutual  corporations  or are reciprocal insurers or Lloyds underwriters.
  In lieu of such statement a corporation organized under a special act of
  the legislature of any state may so indicate upon its policy.  The  head
  of  the  policy  may  also  have such devices as the insurer or insurers
  issuing it desire.
    (3) The standard fire insurance policy need not be used for  effecting
  reinsurance between insurers.
    (4)  If  the  policy  is issued by a mutual, cooperative or reciprocal
  insurer having special regulations with respect to the  payment  by  the
  policyholder  of assessments, such regulations shall be printed upon the
  policy, and any such insurer may print upon the policy such  regulations
  as may be appropriate to or required by its form of organization.
    (c)  Two  or  more  insurers  authorized  to  do  the business of fire
  insurance in this state may, with the approval  of  the  superintendent,
  issue  a  combination standard form of fire insurance policy which shall
  contain the following provisions:
    (1)  A  provision  substantially  to  the  effect  that  the  insurers
  executing  such  policy shall be severally liable for the full amount of
  any loss or damage, according  to  the  terms  of  the  policy,  or  for
  specified percentages or amounts thereof, aggregating the full amount of
  such insurance under such policy.
    (2)  A  provision substantially to the effect that service of process,
  or of any notice or proof of loss required by such policy, upon  any  of
  the  insurers  executing such policy, shall be deemed to be service upon
  all such insurers.
    (d) (1) Appropriate forms of a supplemental contract or  contracts  or
  extended  coverage  endorsements  insuring  against  one  or more of the
  perils which the insurer is empowered to  insure,  in  addition  to  the
  perils  covered  by such standard fire insurance policy, may be approved
  by the superintendent, who may authorize their use in connection with  a
  standard fire insurance policy.
    (2)  The  first  page  of  the  policy,  in  a  form  approved  by the
  superintendent, may be rearranged to provide space for  the  listing  of
  amounts of insurance, rates and premiums for the basic coverages insured
  under the standard form of policy and for additional coverages or perils
  insured  under  attached  endorsements,  and  such  other data as may be
  conveniently included  for  duplication  on  daily  reports  for  office
  records.
    (e) The form of the standard fire insurance policy of the state of New
  York  (with  permission  to  substitute  for  the  word "company" a more
  accurate descriptive term for the type of insurer) shall be as follows:

                     FIRST PAGE OF STANDARD FIRE POLICY
 
     No. ............
 
    [Space  for  insertion  of  name  of  company or companies issuing the
    policy and other matter permitted to be stated  at  the  head  of  the
  policy.]
 
    [Space  for  listing  amounts of insurance, rates and premiums for the
    basic coverages insured under the standard  form  of  policy  and  for
    additional coverages or perils insured under endorsements attached.]
 
    In  Consideration  of  the Provisions and Stipulations herein or added
  hereto and of .......................................... Dollars Premium
  this Company, for the  term  of  ........,  from  the  ........  day  of
  ........,  19..  to the ........ day of ........, 19.. at noon, Standard
  Time,    at    location    of    property    involved,    does    insure
  .........................    and  legal  representatives,  TO THE LESSER
  AMOUNT OF EITHER:
    .1) THE ACTUAL CASH VALUE OF THE PROPERTY AT THE TIME OF THE LOSS, OR
    2) THE AMOUNT WHICH IT WOULD COST TO REPAIR OR  REPLACE  THE  PROPERTY
  WITH  MATERIAL  OF  LIKE KIND AND QUALITY WITHIN A REASONABLE TIME AFTER
  SUCH LOSS, WITHOUT  ALLOWANCE  FOR  ANY  INCREASED  COST  OF  REPAIR  OR
  RECONSTRUCTION BY REASON OF ANY ORDINANCE OR LAW REGULATING CONSTRUCTION
  OR REPAIR, AND WITHOUT COMPENSATION FOR LOSS RESULTING FROM INTERRUPTION
  OF BUSINESS OR MANUFACTURE, OR
    3)  TO  AN  AMOUNT  NOT EXCEEDING ................ DOLLARS, BUT IN ANY
  EVENT FOR NO MORE THAN THE INTEREST OF THE INSURED, AGAINST  ALL  DIRECT
  LOSS  BY  FIRE, LIGHTNING AND BY REMOVAL FROM PREMISES ENDANGERED BY THE
  PERILS INSURED AGAINST IN THIS POLICY, EXCEPT AS  HEREINAFTER  PROVIDED,
  to  the  property  described  hereinafter  while located or contained as
  described in this policy, or pro rata for five days at each proper place
  to  which  any  of  the  property  shall  necessarily  be  removed   for
  preservation  from  the  perils  insured against in this policy, but not
  elsewhere.
 
    Assignment of this policy shall not be valid except with  the  written
  consent of this Company.
 
    This  policy  is made and accepted subject to the foregoing provisions
  and stipulations and those hereinafter stated, which are hereby  made  a
  part  of  this policy, together with such other provisions, stipulations
  and agreements as may be added hereto, as provided in this policy.
 
  In  Witness  Whereof, this  Company  has  executed  and  attested  these
  presents; but this policy shall not be valid unless countersigned by the
  duly authorized Agent of this Company at ...............................
 
  ........................................................................
  ........................................................................
                      Secretary.                              President.
 
    Countersigned this .... day of ....., 19 ....   ......................
                                                              Agent.

                     SECOND PAGE OF STANDARD FIRE POLICY
 
    Concealment,  fraud.  This  entire  policy  shall  be void if, whether
  before  or  after  a  loss,  the  insured  has  wilfully  concealed   or
  misrepresented   any  material  fact  or  circumstance  concerning  this
  insurance or the  subject  thereof,  or  the  interest  of  the  insured
  therein,  or  in  case  of  any  fraud  or false swearing by the insured
  relating thereto.
    Uninsurable  and  excepted  property.  This  policy  shall  not  cover
  accounts,   bills,   currency,   deeds,  evidences  of  debt,  money  or
  securities; nor, unless specifically named hereon in writing, bullion or
  manuscripts.
    Perils not included. This company shall not be liable for loss by fire
  or other perils insured against  in  this  policy  caused,  directly  or
  indirectly, by: (a) enemy attack by armed forces, including action taken
  by  military,  naval  or  air  forces  in  resisting  an  actual  or  an
  immediately impending enemy attack; (b) invasion; (c) insurrection;  (d)
  rebellion;  (e)  revolution; (f) civil war; (g) usurped power; (h) order
  of any civil authority except acts of destruction at the time of and for
  the purpose of preventing the spread of fire, provided  that  such  fire
  did  not  originate  from any of the perils excluded by this policy; (i)
  neglect of the insured to use all reasonable means to save and  preserve
  the  property at and after a loss, or when the property is endangered by
  fire in neighboring premises; (j) nor shall this Company be  liable  for
  loss by theft.
    Other  Insurance.  Other  insurance may be prohibited or the amount of
  insurance may be limited by endorsement attached hereto.
    Conditions  suspending  or  restricting  insurance.  Unless  otherwise
  provided  in  writing  added hereto this Company shall not be liable for
  loss occurring (a) while the hazard is increased by any means within the
  control or knowledge of the insured; or (b) while a described  building,
  whether  intended  for  occupancy  by  owner  or  tenant,  is  vacant or
  unoccupied beyond a period of sixty consecutive days; or (c) as a result
  of explosion or riot, unless fire ensue, and in that event for  loss  by
  fire only.
    Other  perils  or  subjects.  Any other peril to be insured against or
  subject  of  insurance  to  be  covered  in  this  policy  shall  be  by
  endorsement in writing hereon or added hereto.
    Added  provisions.  The  extent  of the application of insurance under
  this policy and of the contribution to be made by this Company  in  case
  of  loss, and any other provision or agreement not inconsistent with the
  provisions of this policy, may be provided for in writing added  hereto,
  but  no  provision  may  be  waived  except such as by the terms of this
  policy is subject to change.
    Waiver provisions. No permission affecting this insurance shall exist,
  or waiver of any provision be valid, unless granted herein or  expressed
  in  writing  added hereto. No provision, stipulation or forfeiture shall
  be held to be waived by any requirement or proceeding  on  the  part  of
  this  Company  relating  to appraisal or to any examination provided for
  herein.
    Cancellation of policy. This policy shall be cancelled at any time  at
  the  request  of  the  insured,  in  which case this Company shall, upon
  demand and surrender of this policy, refund the excess of  paid  premium
  above the customary short rates for the expired time. This policy may be
  cancelled  at  any  time by this Company by giving to the insured a five
  days' written notice of cancellation  with  or  without  tender  of  the
  excess  of paid premium above the pro rata premium for the expired time,
  which excess, if not tendered, shall be refunded on  demand.  Notice  of

  cancellation shall state that said excess premium (if not tendered) will
  be refunded on demand.
    Mortgagee  interests  and  obligations.  If  loss  hereunder  is  made
  payable, in whole or in part, to a designated mortgagee not named herein
  as the insured, such interest in this policy may be cancelled by  giving
  to such mortgagee a ten days' written notice of cancellation.
    If  the  insured  fails  to  render proof of loss such mortgagee, upon
  notice, shall render proof of loss in the form herein  specified  within
  sixty (60) days thereafter and shall be subject to the provisions hereof
  relating  to appraisal and time of payment and of bringing suit. If this
  Company shall claim that no liability existed as  to  the  mortgagor  or
  owner,  it  shall, to the extent of payment of loss to the mortgagee, be
  subrogated to all  the  mortgagee's  rights  of  recovery,  but  without
  impairing  mortgagee's right to sue; or it may pay off the mortgage debt
  and require an assignment thereof and of the mortgage. Other  provisions
  relating to the interests and obligations of such mortgagee may be added
  hereto by agreement in writing.
    Pro  rata  liability.  This  Company shall not be liable for a greater
  proportion of any loss than the amount hereby insured shall bear to  the
  whole  insurance  covering  the  property  against  the  peril involved,
  whether collectible or not.
    Requirements in case loss occurs. The  insured  shall  give  immediate
  written  notice  to  this Company of any loss, protect the property from
  further damage, forthwith separate the damaged  and  undamaged  personal
  property,  put  it  in  the  best  possible  order,  furnish  a complete
  inventory of the destroyed, damaged and undamaged property,  showing  in
  detail  quantities, costs, actual cash value and amount of loss claimed;
  and within sixty days after the loss, unless such time  is  extended  in
  writing  by  this  Company,  the  insured shall render to this Company a
  proof of loss, signed and sworn to by the insured, stating the knowledge
  and belief of the insured as to the following: the time  and  origin  of
  the loss, the interest of the insured and of all others in the property,
  the  actual  cash  value  of  each  item  thereof and the amount of loss
  thereto, all encumbrances thereon, all  other  contracts  of  insurance,
  whether  valid or not, covering any of said property, any changes in the
  title, use,  occupation,  location,  possession  or  exposures  of  said
  property  since the issuing of this policy, by whom and for what purpose
  any building  herein  described  and  the  several  parts  thereof  were
  occupied  at the time of loss and whether or not it then stood on leased
  ground, and shall furnish a copy of all the descriptions  and  schedules
  in  all  policies and, if required, verified plans and specifications of
  any building, fixtures or machinery destroyed or damaged.  The  insured,
  as  often  as  may  be  reasonably required, shall exhibit to any person
  designated by this Company all  that  remains  of  any  property  herein
  described,  and submit to examinations under oath by any person named by
  this Company, and subscribe the same; and, as often as may be reasonably
  required, shall produce for examination all  books  of  account,  bills,
  invoices and other vouchers, or certified copies thereof if originals be
  lost,  at  such  reasonable  time and place as may be designated by this
  Company or its representative, and  shall  permit  extracts  and  copies
  thereof to be made.
    Appraisal. In case the insured and this Company shall fail to agree as
  to  the  actual  cash  value or the amount of loss, then, on the written
  demand of either,  each  shall  select  a  competent  and  disinterested
  appraiser  and  notify the other of the appraiser selected within twenty
  days of such demand. The appraisers shall first select a  competent  and
  disinterested  umpire;  and  failing for fifteen days to agree upon such
  umpire, then, on request of the insured or  this  Company,  such  umpire

  shall  be selected by a judge of a court of record in the state in which
  the property covered is located. The appraisers shall then appraise  the
  loss,  stating  separately actual cash value and loss to each item; and,
  failing  to  agree, shall submit their differences, only, to the umpire.
  An award in writing, so itemized,  of  any  two  when  filed  with  this
  Company  shall  determine the amount of actual cash value and loss. Each
  appraiser shall be paid by the party selecting him and the  expenses  of
  appraisal and umpire shall be paid by the parties equally.
    Company's options. It shall be optional with this Company to take all,
  or  any part, of the property at the agreed or appraised value, and also
  to repair, rebuild or replace the property  destroyed  or  damaged  with
  other  of  like  kind  and  quality  within a reasonable time, on giving
  notice of its intention so to do within thirty days after the receipt of
  the proof of loss herein required.
    Abandonment. There can be  no  abandonment  to  this  Company  of  any
  property.
    When  loss  payable.  The amount of loss for which this Company may be
  liable shall be payable sixty  days  after  proof  of  loss,  as  herein
  provided,  is  received by this Company and ascertainment of the loss is
  made either by agreement between the insured and this Company  expressed
  in  writing  or  by  the  filing with this Company of an award as herein
  provided.
    Suit. No suit or action on this policy for the recovery of  any  claim
  shall  be  sustainable  in  any  court  of  law or equity unless all the
  requirements of this policy shall have been complied  with,  and  unless
  commenced within twenty-four months next after inception of the loss.
    Subrogation.  This  Company may require from the insured an assignment
  of all right of recovery against any party for loss to the  extent  that
  payment therefor is made by this Company.

                     THIRD PAGE OF STANDARD FIRE POLICY
 
                         ATTACH FORM BELOW THIS LINE

                        BACK OF STANDARD FIRE POLICY
                                 (OPTIONAL)
 
               Standard Fire Insurance Policy of the States of
 
 
            Expires _______________________________________
            Property ______________________________________
            Assured _______________________________________
                    No. _______________________
 
 
                                  (COMPANY)
 
 
 
 
            It  is  important  that  the written portions of all
            policies covering the  same  property  read  exactly
            alike.  If  they do not, they should be made uniform
            at once.

    (f)  (1) Subject to the approval of the superintendent, a policy which
  insures solely against the peril of fire or which  insures  against  the
  peril  of fire in combination with other kinds of insurance either for a
  divisible or indivisible premium need not comply with the provisions  of
  subsection (e) of this section, provided:
    (A)  the policy contains, with respect to the peril of fire, terms and
  provisions no less favorable to the insured than those contained in  the
  standard fire policy;
    (B)  the provisions in relation to mortgagee interests and obligations
  in such  standard  fire  policy  are  incorporated  without  substantive
  change; and
    (C)  the policy or contract is complete as to all of its terms without
  reference to the standard  form  fire  insurance  policy  or  any  other
  policy.
    (2)  Policies  of  automobile or aircraft physical damage insurance or
  policies of inland marine insurance may be issued as heretofore  without
  reference  to  the  limitations  contained  in  paragraph  one  of  this
  subsection.
    (g) Notwithstanding any other provision of law to  the  contrary,  the
  provisions  of  the  appraisal  clause set out on the second page of the
  standard fire policy and the provisions of section three  thousand  four
  hundred eight of this chapter, including determinations as to the amount
  of  loss  or damage rendered thereunder, shall be binding on all parties
  to the contract of fire insurance evidenced by the policy.
    (h) As used in this section, "binder" means  a  written  document  (1)
  which  includes  the  name and address of the insured and any additional
  named  insureds,  mortgagees,  or  lienholders;  a  description  of  the
  property  insured;  a  description  of the nature and amount of coverage
  which shall be  deemed  to  include  the  terms  of  the  standard  fire
  insurance  policy  except  as  conspicuously  noted  on  the binder; the
  identity of the insurer and of the authorized  representative  executing
  the  binder;  the  effective  date of coverage; the binder number or the
  policy number where applicable to a  policy  extension,  and  (2)  which
  temporarily  obligates  the  insurer  to provide that insurance coverage
  pending issuance of the insurance policy. The  cancellation  of  such  a
  binder  shall  be  governed  at  the  minimum  by  the provisions of the
  standard fire insurance  policy  and  the  provisions  of  this  chapter
  applicable  thereto.  No exempt organization, as defined in section five
  hundred ninety of the banking law, or  licensed  mortgage  banker  which
  originates mortgage loans shall, at the time of title closing for a loan
  secured  by  a  one  to four family residential real property, refuse to
  accept  a  binder,  issued  by  an  insurer,  or   a   duly   authorized
  representative  of an insurer, licensed to do business in this state, as
  evidence that hazard insurance  has  been  procured  for  the  mortgaged
  premises.  Nothing herein is intended to prohibit the mortgage banker or
  exempt organization from  requiring  the  borrower  to  also  furnish  a
  receipt  indicating  that  the  annual  or  installment  premium on such
  insurance policy has been paid.