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policy-holder, scarcely once in a hundred times, carefully studies the policy he procures. When every company issued its own special policy, many of them models of ambiguity, it frequently happened that the insured, when a loss occurred, found himself deprived of the indemnity on which he had confidently relied. The companies, on the other hand, had to contend with a multiplicity of court decisions in the various states, many of which were in direct opposition to others, although dealing with the same subject. Everywhere the courts were called upon to pass on the interpretation of loosely drawn policies, and in their efforts to give the benefit of the doubt to the insured, and prevent a forfeiture on a poorly or skilfully drawn contract, as the case might be, helped to develop a system of court law in insurance, which for its conflicting opinions has probably no parallel in any other line of business. The effect of these decisions is marked even at the present day, although nearly everywhere the same policy is in use. "It would be well," writes Mr. F. C. Moore, "in all cases of lawsuits to bear in mind that when decisions are glibly quoted to sustain interpretations of particular phrases, that the policy in question before the court may have been very differently worded from the standard form now in use."1 Again, when large fires occurred, and several policies had been written on the property, it was common to find that they were unlike in their terms and application, thus making a settlement of the loss among the several companies impossible, except by an unsatisfactory compromise.

With such inconveniences resulting from a lack of uniformity in the terms, it was only natural that a sentiment should develop for the establishment of a "standard" policy, which when universally used by all companies would in the course of time be definitely interpreted by the courts, thus

"Fire Insurance and How to Build," p. 556.

enabling the policy-holder to be sure of its meaning. The first important attempt to adopt such a standard policy was undertaken by the National Board of Underwriters in 1867 and 1868. Then followed the law of 1873 in the State of Massachusetts, providing for a standard form of policy, which in 1880 was made obligatory for all companies writing business in the State. Six years later a standard form was adopted by the legislature of New York, and made obligatory in the following year, 1887. This policy, going under the name of the "New York Standard Fire Policy," has been adopted as a statute in a number of other states, and is used wherever permitted by most of the largest companies. (See folder, Fig. 1.) Quite a number of states have adopted special forms of standard policies, differing somewhat but not radically from the New York form. In most of the other states, although not made mandatory by law, the New York policy is generally used by nearly all the companies. It was carefully prepared with reference to past experience, and to quote one who was instrumental in its making "those who framed it brought to their task an honest desire to make a policy which should not only protect the rights of underwriters, but be just to all honest claimants, and the phraseology of the contract was specially designed to meet the construction which had been placed upon ambiguous phrases by the courts of highest resort. " 2

The Grouping of Provisions in the Policy.-For purposes of discussion the many provisions of the standard policy may be conveniently classified under the following groups: 1. The parties to the contract.

2. The term of the contract, involving renewal and cancellation.

3. The risk assumed.

1Maine, Massachusetts, New Hampshire, Michigan, Missouri, Virginia, and Wisconsin.

2F. C. Moore, "Fire Insurance and How to Build," p. 556.

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4. The description of the property insured.

5. Other insurance on the same property, involving contribution.

6. The privileges, which if desired, must be indorsed on the policy.

7. Policy provisions going into effect after a loss has occurred

As regards each of these groups, the provisions of the standard policy will be discussed in the following chapters with reference to their purpose and meaning, and the interpretation which has been placed upon them by the courts.

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