40 Pa. Stat. § 636

Current through Pa Acts 2024-53, 2024-56 through 2024-111

Section 636 - Fire insurance contract; standard policy provisions; permissible variations

1. As used in this section, the term "fire insurance" shall mean insurance against loss by fire, lightning or removal, as specified in paragraph (1) of subsection (b) of section 202 of this act, as amended, and the term shall not include insurances of the kind specified in any other portion of that section, amended as aforesaid, whether or not the risks of fire, lightning or removal be included.

2. Except as provided elsewhere in this section, no insurance company, association or exchange shall issue a policy affording fire insurance, as defined in this section, on property in this Commonwealth, unless such policy contains the following provisions as to such insurance:

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	)	from the...... day of	)	at noon, Standard
term of	)	.... 19... to the ....	)	Time, at location of
...............................................	)	day of......... 19...	)	property involved,

to an amount not exceeding........................................ Dollars,

does insure and legal representatives, to the extent of the actual cash value of the property at the time of loss, but not exceeding 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 increase 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, nor in any event for 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.

1	Concealment,	This entire policy shall be void if, whether
2	fraud.	before or after a loss, the insured has wil-
3		fully concealed or misrepresented any ma-

4	terial fact or circumstance concerning this insurance or the
5	subject thereof, or the interest of the insured therein, or in case
6	of any fraud or false swearing by the insured relating thereto.

7	Uninsurable	This policy shall not cover accounts, bills,
8	and	currency, deeds, evidences of debt, money or
9	excepted property.	securities; nor, unless specifically named
10		hereon in writing, bullion or manuscripts.
11	Perils not	This Company shall not be liable for loss by
12	included.	fire or other perils insured against in this
13		policy caused, directly or indirectly, by: (a)

14	enemy attack by armed forces, including action taken by mili-
15	tary, naval or air forces in resisting an actual or an immediately
16	impending enemy attack; (b) invasion; (c) insurrection; (d)
17	rebellion; (e) revolution; (f) civil war; (g) usurped power; (h)
18	order of any civil authority except acts of destruction at the time
19	of and for the purpose of preventing the spread of fire, provided
20	that such fire did not originate from any of the perils excluded
21	by this policy; (i) neglect of the insured to use all reasonable
22	means to save and preserve the property at and after a loss, or
23	when the property is endangered by fire in neighboring prem-
24	ises; (j) nor shall this Company be liable for loss by theft.

25	Other Insurance.	Other insurance may be prohibited or the
26		amount of insurance may be limited by en-

27	dorsement attached hereto.
28	Conditions suspending or restricting insurance. Unless other-
29	wise provided in writing added hereto this Company shall not
30	be liable for the loss occurring
31	(a) while the hazard is increased by any means within the con-
32	trol or knowledge of the insured; or
33	(b) while a described building, whether intended for occupancy
34	by owner or tenant, is vacant or unoccupied beyond a period of
35	sixty consecutive days; or
36	(c) as a result of explosion or riot, unless fire ensue, and in
37	that event for the loss by fire only.

38	Other perils	Any other peril to be insured against or sub-
39	or subjects.	ject of insurance to be covered in this policy
40		shall be by endorsement in writing hereon or

41	added hereto.

42	Added provisions.	The extent of the application of insurance
43		under this policy and of the contribution to

44	be made by this Company in case of loss, and any other pro-
45	vision or agreement not inconsistent with the provisions of this
46	policy, may be provided for in writing added hereto, but not pro-
47	vision may be waived except such as by the terms of this policy
48	is subject to change.

42	Waiver	No permission affecting this insurance shall
50	provisions.	exist, or waiver of any provision be valid,
51		unless granted herein or expressed in writing

52	added hereto. No provision, stipulation or forfeiture shall be
53	held to be waived by any requirement or proceeding on the part
54	of this Company relating to appraisal or to any examination
55	provided for herein.

56	Cancellation	This policy shall be cancelled at any time
57	of policy.	at the request of the insured, in which case
58		this Company shall, upon demand and sur-

59	render of this policy, refund the excess of paid premium above
60	the customary short rates for the expired time. This pol-
61	icy may be cancelled at any time by this Company by giving
62	to the insured a five days' written notice of cancellation with
63	or without tender of the excess of paid premium above the pro
64	rata premium for the expired time, which excess, if not ten-
65	dered, shall be refunded on demand. Notice of cancellation shall
66	state that said excess premium (if not tendered) will be re-
67	funded on demand.

68	Mortgagee	If loss hereunder is made payable, in whole
69	interests and	or in part, to a designated mortgagee not
70	obligations.	named herein as the insured, such interest in
71		this policy may be cancelled by giving to such
72		mortgagee a ten days' written notice of can-

73	cellation.
74	If the insured fails to render proof of loss such mortgagee, upon
75	notice, shall render proof of loss in the form herein specified
76	within sixty (60) days thereafter and shall be subject to the pro-
77	visions hereof relating to appraisal and time of payment and of
78	bringing suit. If this Company shall claim that no liability ex-
79	isted as to the mortgagor or owner, it shall, to the extent of pay-
80	ment of loss to the mortgagee, be subrogated to all the mort-
81	gagee's rights of recovery, but without impairing mortgagee's
82	right to sue; or it may pay off the mortgage debt and require
83	an assignment thereof and of the mortgage. Other provisions
84	relating to the interests and obligations of such mortgagee may
85	be added hereto by agreement in writing.

86	Pro rata liability.	This Company shall not be liable for a greater
87		proportion of any loss than the amount

88	hereby insured shall bear to the whole insurance covering the
89	property against the peril involved, whether collectible or not.

90	Requirements in	The insured shall give immediate written
91	case loss occurs.	notice to this Company of any loss, protect
92		the property from further damage, forthwith

93	separate the damaged and undamaged personal property, put
94	it in the best possible order, furnish a complete inventory of
95	the destroyed, damaged and undamaged property, showing in
96	detail quantities, costs, actual cash value and amount of loss
97	claimed; and within sixty days after the loss, unless such time
98	is extended in writing by this Company, the insured shall render
99	to this Company a proof of loss, signed and sworn to by the
100	insured, stating the knowledge and belief of the insured as to
101	the following: the time and origin of the loss, the interest of the
102	insured and of all others in the property, the actual cash value of
103	each item thereof and the amount of the loss thereto, all encum-
104	brances thereon, all other contracts of insurance, whether valid
105	or not, covering any of said property, any changes in the title.
106	use, occupation, location, possession or exposures of said pro-
107	erty since the issuing of this policy, by whom and for what
108	purpose any building herein described and the several parts
109	thereof were occupied at the time of loss and whether or not it
110	then stood on leased ground, and shall furnish a copy of all the
111	descriptions and schedules in all policies and, if required, verified
112	plans and specifications of any building, fixtures or machinery
113	destroyed or damaged. The insured, as often as may be reason-
114	ably required, shall exhibit to any person designated by this
115	Company all that remains of any property herein described, and
116	submit to examinations under oath by any person named by this
117	Company, and subscribe the same; and, as often as may be
118	reasonably required, shall produce for examination all books of
119	account, bills, invoices and other vouchers or certified copies
120	thereof if originals be lost, at such reasonable time and place as
121	may be designated by this Company or its representative, and
122	shall permit extracts and copies thereof to be made.

123	Appraisal.	In case the insured and this Company shall
124		fail to agree as to the actual cash value or

125	the amount of loss, then, on the written demand of either, each
126	shall select a competent and disinterested appraiser and notify
127	the other of the appraiser selected within twenty days of such
128	demand. The appraisers shall first select a competent and dis-
129	interested umpire; and failing for fifteen days to agree upon
130	such umpire, then, on request of the insured or this Company,
131	such umpire shall be selected by a judge of a court of record in
132	the state in which the property covered is located. The ap-
133	praisers shall then appraise the loss, stating separately actual
134	cash value and loss to each item; and, failing to agree, shall
135	submit their differences, only, to the umpire. An award in writ-
136	ing, so itemized, of any two when filed with this Company shall
137	determine the amount of actual cash value and loss. Each
138	appraiser shall be paid by the party selecting him and the ex-
139	penses of appraisal and umpire shall be paid by the parties
140	equally.

141	Company's	It shall be optional with this Company to
142	options.	take all, or any part, of the property at the
143		agreed or appraised value, and also to re-

144	pair, rebuild or replace the property destroyed or damaged with
145	other of like kind and quality within a reasonable time, on giv-
146	ing notice of its intention so to do within thirty days after the
147	receipt of the proof of loss herein required.

148	Abandonment.	There can be no abandonment to this Com-
149		pany of any property.
150	When loss	The amount of loss for which this Company
151	payable.	may be liable shall be payable sixty days
152		after proof of loss, as herein provided, is

153	received by this Company and ascertainment of the loss is made
154	either by agreement between the insured and this Company ex-
155	pressed in writing or by the filing with this Company of an
156	award as herein provided.

157	Suit.	No suit or action on this policy for the recov-
158		ery of any claim shall be sustainable in any

159	court of law or equity unless all the requirements of this policy
160	shall have been complied with, and unless commenced within
161	twelve months next after inception of the loss.

162	Subrogation.	This Company may require from the insured
163		an assignment of all right of recovery against

164	any party for loss to the extent that payment therefor is made
165	by this Company.

There may be printed upon the face of a policy which contains such provisions the words "Standard Fire Insurance Policy of the State of Pennsylvania" and including the name of any other states which adopt this form of policy.

3. The provisions of subsection two of this section shall not apply to policies of perpetual insurance, policies of reinsurance, policies of an all-risk type, policies insuring aircraft, automobile or other motor vehicles against loss by fire, or policies insuring against loss by fire resulting directly or indirectly from bombardment, invasion, insurrection, riot, civil war, commotion, or military or usurped power, or by order of civil authority.

4. A policy affording fire insurance, as defined in this section, may, subject to the approval of the Insurance Commissioner as provided in section 354 of this act, include any other insurances which the insurer is authorized to make, and the wording set out in subsection two of this section may be modified in conformity with the provisions thereof or to accommodate additional property coverages and perils.

5. Notwithstanding any other provisions of this section:

(a) An insurer may print on its policy its name, such device or devices as the insurer issuing said policy may desire, the location of its principal office, and the date of its formation, plan of operation, the amount of its paid up capital, if any, the name of its officers and agents, the number and date of the policy, and, if it is issued through an agent, the words "this policy shall not be valid unless countersigned by the duly authorized agent of the company at .................."

(b) An insurer may print in its policies any provisions which it is authorized or required by law to insert therein, and an insurer not organized under the laws of this Commonwealth may, with the approval of the Insurance Commissioner, so print any provisions required by its charter or deed of settlement or by the laws of its own state or country not contrary to the law of this Commonwealth.

(c) An insurer may add either upon the face of the policy or on the riders or endorsements to be attached thereto, printed or written forms of description and specification or schedules of the property covered by any particular policy and any other matter necessary to express clearly all the facts and conditions of insurance on any particular risk. Insurers issuing the standard policy defined in this section are hereby authorized to affix thereto or include therein a written statement that the policy does not cover loss or damage caused by nuclear reaction or nuclear radiation or radioactive contamination, all whether directly or indirectly resulting from an insured peril under said policy. Nothing contained in this subsection shall be construed to prohibit the attachment to any such policy of an endorsement or endorsements specifically assuming coverage for loss or damage caused by nuclear reaction or nuclear radiation or radioactive contamination. Any endorsements or riders so attached must be signed by officers or agents of the company so issuing them.

(d) Binders or other contracts for temporary insurance, including fire insurance, as defined in this section, may be made orally or in writing, for a period which shall not exceed thirty days, and shall be deemed to include all the provisions of subsection two of this section and all such applicable endorsements approved by the Insurance Commissioner as may be designated in such contract of temporary insurance, except that the cancellation clause and the clause thereof specifying the hour of the day at which the insurance shall commence may be provided by the express terms of such contract of temporary insurance.

(e) Appropriate forms of supplemental contracts or extended coverage endorsements whereby the interest in the property described in a policy affording fire insurance, as herein defined, shall be insured against one or more of the other perils which the insurer is empowered to assume may be approved by the Insurance Commissioner, and their use in connection with such fire insurance policy may be authorized by him. A form of policy affording fire insurance, as herein defined, may be arranged to provide space for the listing of amounts of insurance, with insurance rates and premiums for the basic coverage insured thereunder, and for additional coverages or perils insured under endorsements attached, and such other data as may be conveniently included for duplication on daily reports for office records.

6. The form of policy, including fire insurance, as defined in this section, upon property in this Commonwealth, shall be plainly printed, and no portion thereof shall be in type smaller than seven (7) point.

7. After the effective date of this amendment, any insurance company, association or exchange not heretofore required to comply with the provisions of this act fixing standard policy provisions for fire insurance contracts, may file with the Insurance Commissioner a written notice of its election to comply with the provisions of this section after a specified date, upon which date this section shall become operative with respect to the policies and contracts thereafter issued by such company, association or exchange: Provided, however, That the operative date for every insurance company, association or exchange shall not in any event be later than January first, one thousand nine hundred sixty-three.

8. In addition to the other provisions of this section, no foreign fire insurance company shall issue a policy affording fire insurance, as described in this section, on property in this Commonwealth, unless such policy contains the exact name of the city, borough, incorporated town or township wherein the insured property is located in addition to the mailing address for each such insured property.

9. Insurers issuing or renewing the standard fire insurance policy defined in this section for commercial business are hereby authorized to affix thereto or include therein a written statement that the policy does not cover loss or damage caused by terrorism, whether directly or indirectly resulting from an insured peril under the policy. As used in this section, "terrorism" means any of the following:

(a) A certified act of terrorism as defined in the Terrorism Risk Insurance Act of 2002 ( Public Law 107-297, 116 Stat. 2322);

(b) A violent act or an act that is dangerous to human life, property or infrastructure that is committed by an individual or individuals acting on behalf of a foreign person or foreign interest and that appears to be part of an effort to coerce a civilian population or to influence the policy or affect the conduct of any government by coercion; or

(c) Terrorism as defined in a form filed with and approved by the Insurance Commissioner.

40 P.S. § 636

1921, May 17, P.L. 682, § 506, added 1961, Aug. 23, P.L. 1081, § 1. Amended 1974, March 13, P.L. 187, No. 33, § 1; 2006, July 7, P.L. 1045, No. 104, §1, effective in 60 days [ 9/5/2006].