provides that "the company may also examine the books of account and vouchers of the insured, and make extracts from the same."

In South Dakota the provision is the same except that it reads "books and accounts."

In the States where no standard form is prescribed and other than those above named, the New York standard form is in general use.

RULE 2.

Demand for Production in Reasonable Time.

A demand for production of books and vouchers and examination should be within reasonable time and fix a reasonable time to be operative;1 and place.2 In locality where fire occurs."

1. Jones v. Howard Ins. Co., 117 N. Y. 103.

2. Seibel v. Firemens' Ins. Co., 24 Pa. Super. 154. 3. Tucker v. Colonial Ins. Co.,

W. Va. 51 S. E. Rep. 86.

RULE 3.

Demand When Coupled With Demand for Proofs.

When the demand for the production of books is coupled with and made dependent upon a demand for proofs, if there is no obligation to furnish the proofs as demanded, the nonproduction of the books cannot be construed as a refusal to produce them.

Keeney v. Home Ins. Co., 71 N. Y. 396.

RULE 4.

Demand for Certified Copies - When Insured Excused.

The insured is bound to comply with Rule 1, and if certified copies are demanded the burden rests upon him to show that he made a reasonable effort to procure them and was unable to do so. Where he makes no effort he cannot recover;1 the fact that it is not in his power to procure all does not excuse his failure to

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procure such as may be obtainable, but he is excused so far as not in his power to procure them.3

1. Langan v. Royal Ins. Co., 162 Pa. St. 357, 29 Atl. Rep. 710, 23 Ins. L. J. 878; Seibel v. Lebanon Ins. Co., 197 Pa. St. 106, 46 Atl. Rep. 851; Fleisch v. Insurance Co. of N. A., 58 Mo. App. 596, 23 Ins. L. J. 634; American Central Ins. Co. v. Ware, 65 Ark. 336, 46 S. W. Rep. 129, 27 Ins. L. J. 785; O'Brien v. Commercial Ins. Co., 63 N. Y. 108; Farmers' Ins. Co. v. Mispelhorn, 50 Md. 180; s. c., 53 Md. 473; Eggleston v. Council Bluffs Ins. Co., 65 Iowa, 308; Rosenthal Clothing Co. v. Scottish Union & Nat. Ins. Co., W. Va., 46 S. E. Rep. 1021.

2. Ward v. National Ins. Co., 10 Wash. 361, 38 Pac. Rep. 1127; Farmers' Ins. Co. v. Mispelhorn, 50 Md. 180.

3. Stephens v. Union Assur. Soc., 16 Utah, 22, 50 Pac. Rep. 626, 27 Ins. L. J. 165; Aurora Ins. Co. v. Johnson, 46 Ind. 315; Miller v. Hartford Ins. Co., 70 Iowa, 704.

RULE 5.

Duplicate not Certified Copy — Demand.

A duplicate is not a certified copy and the demand should follow the language of the condition to make it operative.

Insurance Cos. v. Weides, 14 Wall. (U. S.) 375.

RULE 6.

Objection Must Be Specific.

The insurance company must make demand for certified copies of invoices of goods, and if not certified when furnished, that specific objection must be made, otherwise it is waived;' and if specific objection is made it waives others.2

1. Johnson v. Phoenix Ins. Co., 69 Mo. App. 226; Wells Whip Co. v. Tanners' Ins. Co., Pa. St. 58 Atl. Rep.

894.

2. Sagers v. Hawkeye Ins. Co., 94 Iowa, 519, 63 N. W. Rep.

194.

RULE 7.

Place of Examination of Books.

The place of location of a trading concern where fire occurs is the proper place for the examination of its books;1 the insurance company cannot demand their production at its office.2

1. Fleisch v. Insurance Co. of N. A., 58 Mo. App. 596, 23 Ins. L. J. 634; Murphy v. North B. & M. Ins. Co., 61 Mo. App. 323. 2. American Central Ins. Co. v. Simpson, 43 Ill. App. 98.

RULE 8.

When Policy Contains Iron Safe Clause.

Where the policy also contains the "iron safe clause" the production of books of account for examination is not excused by the reason that none were kept.

Niagara Ins. Co. v. Forehand, 169 Ill. 626, 48 N. E. Rep. 830. And see "Iron Safe Clause."

RULE 9.

Waiver of Forfeiture.

Demand for certified or duplicate bills, with knowledge of the facts forfeiting the policy or making it void according to its terms for violation of another condition, may operate as a waiver of the forfeiture when the assured is put to trouble or expense in obtaining them.

Home Ins. Co. v. Marple, 1 Ind. App. 411, 27 N. E. Rep. 633. Contra, McCormick v. Orient Ins. Co., 86 Cal. 260, 24 Pac. Rep. 1003. And see 66 Waiver."

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RULE 10.

Waiver of Limitation Clause.

Demand for books, bills, and vouchers may operate as evidence of waiver of the limitation clause in the policy for commencement of suit thereon, where in compliance therewith it will take time extending beyond the prescribed period.

Dibbrell v. Georgia Home Ins. Co., 110 N. C. 193, 14 S. E. Rep. 783. And see Bonnert v. Insurance Co., 129 Pa. St. 558.

RULE 11.

Effect of Failure to Produce Books and Vouchers.

Failure to produce books and bills or invoices does not void the policy when it does not in terms make void for that reason or cause;1 but may operate to prevent loss from becoming due and payable, and affect right to commence suit.2

1. Lion Ins. Co. v. Starr, 71 Tex. 733, 12 S. W. Rep. 45. 2. See "Payment of the Loss," Rule 1.

TITLE VI.

Iron Safe Clause.

RULE 1. Clause requiring keeping and preservation of inventory and books reasonable and enforceable.

2. Promissory representation if not made part of policy. 3. When a warranty Construction.

4. Tendency and weight of modern authority.

5. Standard of care- Meaning of failure to produce in

ventory and books.

6. Duty and diligence of assured - Question of fact.

7. Assured responsible for negligence of employees.

8. Inventory.

9. General statement no substitute for inventory. 10. Invoices not inventory.

RULE 11. Knowledge of agent no waiver.

12. Knowledge may operate as an element in estoppel. 13. Waiver by agent after issue of policy.

14. Waiver by adjuster Question of fact-Soliciting or local agent.

15. Examination of books by adjuster no waiver.

16. Nonwaiver agreement by assured.

17. Destruction of safe and contents.

18. Meaning of fire-proof safe.

19. Violation of clause affects stock only.

In policies upon stocks of goods or merchandise there is frequently to be found a clause or rider requiring the insured to take an inventory, to keep books of account showing purchases and sales, cash-book, etc., and to keep same in a fire-proof safe. These clauses vary in terms, and the controversies in different parts of the country, as to their legal operative force and application, have developed so much difference of opinion among the judges that it is difficult if not impossible to reduce the subject to a system of rules. Thus it must be understood that in the following rules it is only attempted as far as possible to indicate general principles, specially in view of the modern tendency and weight of the decisions. The object of the clause is to secure means of ascertaining the loss in event of fire, and to facilitate an adjustment.

RULE 1.

Clause Requiring Keeping and Preservation of Inventory and Books Reasonable and Enforceable.

The clause in question, usually known as the "iron safe clause, is a reasonable and proper provision which must be complied with;1 a breach must be pleaded as an affirmative defense.2

1. Niagara Ins. Co. v. Forehand, 169 Ill. 626, 48 N. E. Rep. 830; Georgia Home Ins. Co. v. Allen, 128 Ala. 451, 30 So. Rep. 537; Gibson v. Missouri Ins. Co., 82 Mo. App. 515; Sowers v. Mutual Ins. Co., 113 Iowa, 551, 85 N. W. Rep. 763; Fire Assoc. v. Masterson (Tex. Civ. App.), 61 S. W. Rep. 962; Hester v. Scottish Union & Nat. Ins. Co., 115 Ga. 454, 41 S. E. Rep. 552; Keet-Rountree Dry Goods Co. v. Mercantile Ins. Co. (Mo. App.), 74 S. W. Rep. 469; German-American Ins. Co. v. Waters, 10 Tex. Civ. App. 363, 30 S. W. Rep. 576; Roberts v. Sun Mutual Ins. Co., 19 Tex. Civ. App. 338, 48 S. W. Rep. 559; Landman. Hartford Ins. Co. (La.), 18 Ins. L. J. 813; Goldman v. North British & M. Ins. Co., 48 La. Ann. 223; Virginia F. & M. Ins. Co.