This section is from the book "The Law Of Contracts", by William Herbert Page. Also available from Amazon: Commercial Contracts: A Practical Guide to Deals, Contracts, Agreements and Promises.
1. The Assured upon the discovery of any loss covered under this Policy or any attempt to effect such loss shall, at the expense of the Company, give immediate notice thereof by telegraph to the Company at its Home Office in-------, or to the nearest Agent of the Company, and shall also give immediate notice thereof to the public police authorities having jurisdiction.
2. Affirmative proof of loss under oath must be furnished to the Company at its Home Office in ---------, within sixty days from the date of the discovery of the loss. Such proof of loss shall contain a complete inventory of all of the property stolen or damaged, giving the names of the persons from whom and the dates when purchased, together with the original cost thereof and the actual cash value of each article at the time of the loss and the amount of loss thereon; a statement in detail of the damages done to the property of the Assured; a statement as to the ownership of the articles or property for which indemnity is claimed and clearly defining the interest of the Assured in such articles or property, if any; a statement in detail of the knowledge and belief of the Assured as to the manner in which the loss was sustained and the date of its occurrence; a statement in detail of all other concurrent or similar insurance, whether valid or not, on the property insured; and the purposes for which and the persons by whom the premises described herein were occupied at the time of the loss. The delivery or withholding of any form by the Company or its receipt or retention by the Company or any act of the Company or of its representatives in the investigation of any claim shall not be a waiver of any of its rights. Upon the presentation of any claim under this Policy, the Assured shall produce, at the request of any representative of the Company, any and all books, papers and vouchers bearing in any way upon the claim, and shall submit himself and his associates in interest and his employes and the members of his household, when and as often as may be required by the Company to examination and interrogation under oath by the representatives of the Company, and such examination and interrogation, when reduced to writing, shall be signed and sworn to if required.
3. In the event of disagreement as to the amount of loss, the same shall be ascertained by two competent and disinterested appraisers, the Assured and the Company each selecting one, and the two so chosen shall first select a competent and disinterested umpire. The appraisers together shall then estimate and appraise the loss, and, failing to agree, shall submit their differences to the umpire; and the award in writing of any two shall determine the amount of such loss. The parties thereto shall pay the appraiser respectively selected by them and shall bear equally the expense of the appraisal and umpire. The Company shall not be held to have waived any provision or condition of this Policy, or any forfeiture thereof by any requirement, act or proceeding on its part relating to the appraisal or to any examination herein provided for.
4. No suit shall be brought under this Policy until three months after the Proof of Loss has been furnished as required herein, nor at all unless begun within twelve months after the occurrence of the loss. If any limitation set forth in this Policy is prohibited by the statutes of the state in which this Policy is issued, the said limitation shall be considered to be amended to agree with the minimum period of limitation permitted by such statutes.
5. All sums which, from time to time, may be paid or expended by way of indemnity under this Policy shall be accounted in diminution of the insurance hereunder. The Company may repair any damage to property and it may replace any damaged or stolen article with one of like quality and value instead of raving for the same in money. Any article for which the Assured has been indemnified by payment or replacement shall belong to the Company if recovered, but the Assured shall be entitled to it upon payment to the Company of the amount of indemnity paid or the cost to the Company of its replacement. If any stolen article is returned to the Assured or recovered by the Assured, the same shall be reported to the Company immediately and the amount of indemnity received therefor shall be returned to the Company by the Assured, unless the Company elects to receive the article so recovered.
6. If the Assured carry other insurance, whether valid or not, against loss for which indemnity is provided hereunder, the Company shall be liable only for its pro rata share of any such loss. The Company shall be subrogated to the extent of its interest to any claims and rights of the Assured against any third party in respect to any loss that may occur hereunder and the Assured shall execute all papers necessary for this purpose.
7. The Company. if it so elects, shall have entire charge of the prosecution of any person or persons concerned directly or indirectly in effecting a loss hereunder. The Assured shall give to the Company all reasonable assistance in legal proceedings.
8. The Company shall not be liable: (a) For an amount in excess of the actual or market value at the time of the loss; (b) For damage to property or premises unless they belong to the Assured or the Assured is legally liable for the damage; (c) For damage to window or skylight glass, plate glass or lettering or signs thereon; (d) If the premises are occupied by the Assured for any purpose other than that stated in the schedule; (e) For loss or damage unless the Assured shall have used all reasonable care to protect the premises and the property insured against said loss or damage; (1) For loss from or contributed to by explosives (except only when used or caused by burglars or robbers), water, invasion, insurrection, strike, riot, war, the act of any civil, military or usurping power or the action of the elements; (g) For loss or damage from, contributed to by, or occurring during a fire or an alarm of fire in the building in which the premises are located.
9. The Assured shall grant the Company's officers or representatives the right to inspect the premises at such times as they may deem needful; any such officer or representative may require the Assured to make the premises secure and may suspend the insurance under this Policy as respects the entire risk or as respects any part thereof by a written notice served on the Assured, or mailed to the Assured at the location of the building described in the Schedule. Reinstatement of the insurance in any case must be in writing signed by a duly authorized representative of the Company. The return premium computed pro rata for the period of suspension will be paid to the Assured on demand.
10. This Policy may be cancelled at any time by notice in writing to the Assured stating specifically when the cancellation shall be effective. It may also be cancelled by the Assured by like notice in writing to the Company provided the premium shall have been paid. If cancelled on the Company's motion, the Company shall pay or tender to the Assured the unearned premium pro rata. If cancelled at the request of the Assured, the Company shall retain the customary short rate premium and return the balance to the Assured, but in no case shall the earned premium he less than Five Dollars. The check of the Company or of its Agent mailed to the business address of the Assured or to the location of the premises as given herein shall be sufficient tender.
11. This Policy shall be void if the conditions or circumstances of the risk are changed without the written consent of the Company or if the Assured attempts in any way to defraud the Company or if the Policy is assigned without the written consent of the Company.
12. No condition or provision of this Policy shall be waived or altered by any one unless by written consent of an Officer of the Company at its Home Office and endorsed hereon or attached hereto; nor shall notice to any Agent, nor shall knowledge possessed by any Agent or by any other person be held to effect a waiver or change in this contract or any part of it.
13. In any matter relating to this insurance, no person shall be deemed an Agent of the Company who is not duly authorized in writing.
In witness whereof, etc. ---------, President,
See references under Sec. 3870.