7. 56 to 59 provide that if there is a mortgagee interest, that interest shall be subject to the provisions of the mortgagee clause. Less re sponsibility is placed on the mortgagee than on the mortgagor. The mortgagee, after all, has only lim ited rights in connection with the property and so should not be held to the same degree of responsi bility as the owner or mortgagor. It would be im possible, of course, to secure loans on property with out a prohibitive rate of interest if the lender were held to the same degree of responsibility as the borrower. Hence, it has been necessary to make a modified de gree of responsibility to fit the conditions of the mort gage interest.
8. Removal insured is responsible for the proper care of his property during a fire as much as he is before a fire occurs. If prudence makes it necessary while a fire is burning to remove the prop erty which is undamaged, the insured may do this and have the benefit of insurance for five days on the prop erty so removed to a new location. This is a salutary provisio, which the policy makes for the parties, to encourage the insured to take care of the property.
9. Procedure in loss with line 67, down to and including 107, the procedure, in case a loss occurs, is given. This procedure may be epitomized briefly under fifteen different heads. They are as follows: (1) Immediate notice must be given of any loss. The notice must be in writing and the word "immediate" has been considered by the courts to mean reasonable promptness under the cir cumstances of the case. As many as fifty-three days after a fire occurred was considered by the court to be proper in one given situation. (2) The property must be protected from further damage. (3) The damaged and undamaged personal property must be separated. (4) It must be put in the best possible or der. (5) A complete inventory must be made. (6) Within 60 days from the date of the fire, a complete statement must be made to the company as to the time and origin of the fire. This statement must be in writing and signed and sworn to by the insured. (7) He must set forth his interest and that of any other parties in the property. (8) He must set forth the cash value of each item and the loss incurred. (9) He must state any incumbrances on the property that exist. (10) He must furnish a complete list of the insurance whether valid or not. Policies may be is sued whose issuing companies are now insolvent or out of business on the property, but if they have not ex pired by time limit, they must be set forth just the same as those policies which are in good companies. (11) The insured must have a copy of the description and schedules in all policies. (12) He must notify the company of any changes of title to the property, or in its use or occupancy. (13) A complete state ment as to who were the occupants of the building at the time of the fire, must be given. (14) If called upon he must verify the plans and specifications of the building and machinery. (15) A certificate from a
magistrate or notary public may be required, setting forth the fact that he has examined into the circum stances of the fire and it is his belief that the loss sus tained is an honest one. This is not usually required at the present time.
This list of the duties which are placed upon the in sured may seem somewhat formidable but they are not really so. The insurance companies are in business for the purpose of meeting their obligations and ob stacles are not placed in the way of a just settlement with the insured. No company could afford to do otherwise because it would soon be obliged to retire from business.
10. Forms.—Between the first six lines and line No. 1 in the average policy, there is quite a blank space. This space is commonly known as the space for the "form." The form is a description of the property that is to be insured under the policy in question. In the preparation of this form, the language of which is not provided for, the agent and broker must exer cise skill in order that the insured may be properly protected under the policy that is issued. If a few are borne in mind, the preparation of a form is comparatively simple. General terms should be used wherever possible; specific terms must be used where the policy demands them, as in the case of awnings; as few words as possible should be used, but enough to describe properly the property and the object of the policy. It should be remembered that the person who prepares the form and who uses lan guage that is ambiguous will be the party to suffer. For instance, if the form is prepared by the company or its representative and the language is not clear, under the stated practice of the courts in interpreting legal documents, the language will be construed in favor of the party who did not prepare the document. This rule of law is based on the common-sense princi ple that if one has a chance to use clear language and does not do it, he and not the other party should suffer thereby. It should also be borne in mind that, where the insured employs a broker or prepares the form himself, the use of ambiguous language will be construed against him and not against the company. Two examples of forms are given below: (1) On Household Furniture, useful and ornamental, Beds, Bedding, Linen, Wearing Apparel, Plate, Plated Ware, Chandeliers and Gas Fixtures, Printed Books and Music, Pictures, Paintings and Engravings, and their Frames (at not exceeding cost price), Bronzes, Statuary, and other works of Art, and objects of Vertu, Pianofortes and ,other Musical Instruments, Scientific Instruments, Sewing Ma chines, Mirrors, 'Watches, Diamonds, and all other Jewelry in use, Fuel and Family Stores, Tools, Bicycles, Guns and other Sporting Implements, and Utensils, the property of the Assured, or any member of the Family.