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or commotion, or military, or usurped power, or by order of any civil authority, or by theft; it is not liable for loss to accounts, bills, currency, deeds, evidences of debt, money, notes, or securities; nor unless liability is specifically assumed, for loss to awnings, bullion, casts, curiosities, drawings, dies, implements, jewels, manuscripts, medals, models, patterns, pictures, scientific apparatus, signs, store or office furniture or fixtures, sculptures, tools, or property held on storage or for repairs; nor, beyond the actual value destroyed by fire, for loss occasioned by ordinance or law regulating construction or repair of buildings, or by interruption of business, manufacturing processes or otherwise; nor for any greater proportion of the value of plate glass, frescoes and decorations than that which this policy shall bear to the whole insurance on the building described.

This rule is imposed by above terms in the standard form of policy prescribed in: New York,

North Carolina,

North Dakota,


Rhode Island,

New Jersey,
By the standard form of policy prescribed in:

New Hampshire,

South Dakota, Minnesota, the provision is that: “Bills of exchange, notes, accounts, evidences and securities, of property of every kind, books, wearing apparel, plate, money, jewels, medals, patterns, models, scientific cabinets and collections, paintings, sculpture, and curiosi

* See note to “Duty to Save and Preserve Property,” Rule 1,

page 2.

ties are not included, unless specially mentioned,” and the company is liable for “ all loss or damage by fire originating from any cause, except invasjon, foreign enemies, civil commotions, riots, or any military or usurped power whatever."

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

Whether caused by a riot or not a question of fact. Royal Ins. Co. v. Martin, 192 U. S. 149, 24 Sup. Ct. Rep. 247. And see Michigan F. & M. Ins. Co. v. Whitelaw, 25 Ohio Cir. 197.

The exemption of loss caused by order of civil authority is not a warranty under the California Code. Conner v. Manchester Assur. Co., 130 Fed. Rep. 743, C. C. A. The phrase " or by theft” refers to theft committed during the fire, or when goods are exposed as a consequence of the fire. Splancher v. Fire Assoc., N. J. L. 60 Atl. Rep. 232. When a standard form is prescribed by statute and inconsistent provisions prohibited, an additional exception inconsistent with the terms of the policy cannot be added. Wausau Telephone Co. v. United Fireman's Ins. Co., Wis. 101 N. W. Rep. 1100.

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RULE 17.


Specific Exception not Included or Covered by General Description.

The printed exception as to“ patterns " is operative notwithstanding policy by written description covers

stock and all other articles usual in a merchant tailor's establishment."

Johnston v. Niagara Ins. Co., 118 N. C. 643, 24 S. E. Rep. 424. And see “ Description,” Rule 31, and “ Construction.”

That general description does not cover specific exemptions, see also Banyer v. Albany Ins. Co., 85 App. Div. 122, 83 N. Y. Supp. 65.

RULE 18. When Specific Insurance by Other Policies Excepted. When a policy contains a clause excepting from its liability goods or property as to which the insured shall have specific insurance, it makes no difference whether a separate policy is issued for each risk, or one policy for all risks, each of which is separately identified by the invoice value or by that value plus a certain percentage; such insurance is as much specific insurance as if a separate policy had been issued on each entry or the subject-matter of each invoice.

Peabody 1. Liverpool, L. & G. Ins. Co., 171 Mass. 114, 50 N. E. Rep. 526. And see London Assur. Co. v. Paterson, 106 Ga. 538, 32 S. E. Rep. 650, 28 Ins. L. J. 385.



RULE 1. Appraisal as imposed by contract.

2. Rights and duties of both parties - Must be exercised

within reasonable time. 3. Condition precedent. 4. Not necessary to admit liability - Effect of denial

of liability. 5. Effort must be made to arrive at amount of loss

Must be actual disagreement. 6. Disagreement must exist as to amount of loss. 7. Insured estopped by his request for appraisal. 8. Must be demand for appraisal — Effect of omission

to make it. 9. Demand must be in clear and explicit terms. 10. Agreement for appraisal must follow terms of the

policy. 11. When number of policies all of same form When

different. 12. Effect of selection of same appraiser by several com

panies. 13. Demand for appraisal should be made promptly on

disagreement – Waiver. 14. Delay by insured in making demand. 15. Duty of insured as to keeping damaged goods. 16. Demand by registered letter - Effect of mailing. 17. Demand for appraisal must include existing losses

caused by successive fires. 18. Motive in demand immaterial. 19. Demand cannot be split. 20. Authority of officer of company. 21. Authority of local agent. 22. Insured presumed to know contents of appraisal

agreement Capacity to contract not restricted. 23. Appraisal limited to determination of amount. 24. When loss payable to a mortgagee Partners. 25. Policy of the law as to place of adjustment and selec

tion of appraisers and umpire. 26. Exact distance not prescribed. 27. Appraisal clause operative only on damaged property. 28. Demand for exclusive appraisal of saved and damaged

property not warranted.

RULE 29. If appraisal includes property wholly consumed,

award conclusive. 30. Duty of both parties to act in good faith - Negotia

tion for compromise. 31. Good faith in attempted selection of umpire question

of fact. 32. Umpire refusing to act, if company delays new ap

praisal insured may make his assent conditional. 33. Duty of parties when one of the appraisers refuses

to act. 34. Effect of failure to agree upon umpire when no ques

tion of fault or good faith. 35. When appraisal fails without fault or misconduct of

insurance company. 36. Must be some evidence of bad faith on part of the

company to relieve insured. 37. When appraisal fails without fault of either party. 38. Effect of appraisers' disagreement and refusal to pro

ceed and failure to agree upon new appraisers

Element of bad faith. 39. Waiver of right to new appraisal — Fault of the com

pany. 40. Appraisers act in quasi-judicial capacity - Should be

free from bias or partiality — Burden of proof. 41. Meaning of disinterested — Appraiser not an agent

Concealment — Parties responsible for his neg

lect or misconduct. 42. Appraisers are not partisans — Must be impartial -

Are not representatives of either party. 43. Company must name appraiser who will act promptly

- Effect of prevention or delay. 44. Previous employment by insurance company — Con

cealment or misrepresentation. 45. Facts as to previous employment should not be con

cealed. 46. Appraiser named by insured a public adjuster, partner,

or agent - Question of fact. 47. Responsibility of parties for neglect or misconduct of

appraisers. 48. Appraisers must not delay on account of advice of

insured's counsel - Not obliged to follow unsigned

directions. 49. Insured bound by his inventory — Effect of fraud by

company's adjuster.

RULE 50. Insured entitled to notice and opportunity of being

heard. 51. Appraisers must not proceed secretly or independently

– If evidence taken, insured must have opportunity

of being present. 52. Duties of appraisers substantially same as arbitrators. 53. Appraisal not an ordinary arbitration. 54. Effect of an appraisal required in a standard form of

policy. 55. Appraisers not limited to kind or quality of evidence

- Experts.

· 56. Distinction as to evidence when property wholly de

stroyed or damaged. 57. Appraisers' decision as to application of the descrip

tion in policy to property in question conclusive. 58. Effect of improper proposal by the company's ap

praiser. 59. Appraisers must follow agreed submitted schedule. 60. Proceedings not invalid for want of oath by appraisers. 61. Appraisers must follow limitations in policy as to

amount of loss or damage. 62. Allowance must be made for depreciation. 63. Umpire may be selected after commencement of ap

praisal. 64. When umpire has authority to act. 65. Duty of the umpire. 66. Appraisers have no right to make an additional award. 67. Award binding — Does not depend upon acceptance,

tender, or payment. 68. Award final and conclusive When rendered void. 69. Courts will not interfere with award — Strong proof

required – When set aside. 70. Award cannot exceed amount of policy. 71. Award invalid when made by umpire and one of the

appraisers, when other withdraws before completion

of appraisal. 72. Award binding only to extent of subject-matter sub

mitted. 73. Concealment of material evidence by insured. 74. Award not set aside on evidence of other independent

appraisers. 75. Company cannot retain advantage of award obtained

by fraud of adjuster on claim that he had no authority to act.

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