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<br />more hazardous than are pennitted by this policy; provided. thai in case
<br />the mortgagor or owner shall neglect to pay any premium due under this
<br />policy. the mortgagee (or trustee) shall, on demand, pay the same.
<br />Provided. also, that the mortgagee (or trustee) shall notify the Insurer
<br />of any change of ownership or occupancy or increase of hazard which shall
<br />come to the knowledge of said mortgagee (or trustee) and. unless permit-
<br />ted by this. policy. it shall be noted thereon and the mortgagee (or trus.tee)
<br />shall, on demand. pay the premium for such increased hazard for the term
<br />of the use thereof; otherwise this policy shall be null and void.
<br />If this policy is cancelled by the Insurer, it shall continue in force for
<br />the benefit only of the mortgagee (or trustee) for JOdays after written ootice
<br />to the mortgagee (or trustee) of such cancellation and shall then cease, and
<br />the Insurer shall have the right, on like notice, to cancel this agreement.
<br />Whenever the Insurer shall pay lhe mortgagee (or trustee) any sum for
<br />loss under this policy and shall claim chat, as to the mortgagor or owner.
<br />no liability therefor existed, the Insurer shall. to the extent of such pay~
<br />ment, be thereupon legally subrogated to all the rights of the pany to whom
<br />such payment shall be made. under all securities held as collateral CO the
<br />mortgage debt. or may. at its option. pay to the mortgagee (or trustee) the
<br />whole principal due or to grow due on the mortgage with interest. and shall
<br />thereupon receive a full assignment and transfer of the mortgage and of
<br />all such other securities, but no subrogation shall impair the right of the
<br />mortgagee (or trustee) to recover the full amoum of said mortgagee's (or
<br />trustee's) claim.
<br />N. Mortgagee Obligations: If the Insured fails to render proof of loss.
<br />the named mortgagee (or trustee). upon notice, shall render proof of loss
<br />in the form herein specifIed within 60 days thereafter and shall be subject
<br />to the provisions of this policy relating to appraisal and time of payment
<br />and of bringing suit.
<br />O. Loss Payable Clause (Applicable to contents items only): Loss,
<br />if any. shall be adjusted with the Insured and shall be payable (0 the In-
<br />sured and loss payee as their interests may appear.
<br />P. Requiremenb in Case of Loss: The Insured shall give written notice,
<br />as soon as practicable, to the Insurer of any loss, forthwith separate the
<br />damaged and undamaged property and put it in the best possible order.
<br />Within 60 days after the loss. unless such time is extended in writing by
<br />the Insurer, the Insured shall render to the Insurer a proof of loss, signed
<br />and sworn to by the Insured. stating the knowledge and belief of the in-
<br />sured as to the following: The time and origin of the loss. the interest of
<br />the Insured and of all others in the property, actual cash value of each item
<br />thereof and the amount ofloss thereto, all encumbrances thereon, all other
<br />contracts of insurance, whether valid or not, covering any of said prop-
<br />erty, any changes in the title, use, occupation. location, possession or ex-
<br />posures of said property since the issuing of this policy. by whom and for
<br />what purpose any building herein described and the several parts thereof
<br />were occupied at the time of loss . The Insured. at the option of the Insurer,
<br />may be required. to furnish a complete inventory of the destroyed, damaged
<br />and undamaged property, showing in detail quantities, costs, actual cash
<br />value and amount of loss claimed, and verified plans and specifications of
<br />any building. fixtures or machinery destroyed or damaged.
<br />The Insured. as otten as may be reasonably required. shall exhibit to any
<br />person designated. by the Insurer all that. remains of any property herein
<br />described, and submit to examinations under oath by any person named
<br />by the Insurer, and subscribe the same, and. as often as may be reasonably
<br />required, shall produce for examination all books of account, bills, invoices
<br />and other vouchers, or certified copies thereof if originals be lost, at such
<br />reasonable time aM place as may be designated by the Insurer or its represen-
<br />tative. and shall permit extracts and copies thereof to be made.
<br />The Insurer may, at its option, waive the requirement for the completion
<br />and filing of a Proof of Loss in certain cases. in which event the Insured
<br />will be required co sign and. at the Insurer's option. SWeafto an adjuster's
<br />report of the loss which includes information about the loss and the damages
<br />needed by the Insurer before the loss can be adjusted.
<br />Any false statements made in the course of presentment of a claim under
<br />this policy may be punishable by fine or imprisonment under the applicable
<br />Federal laws.
<br />Q. Appraisal: In case the Insured and the Insurer shall fail CO agree as
<br />to the actual cash value oithe amount of loss, then. on the written demand
<br />of either, each shaU select a competent. and disinterested appraiser and notify
<br />the OIher of the appraiser selected within 20 days of such demand. Tbe ap-
<br />praisers shall first select a competent and disinterested. umpire; and failing
<br />for IS days co agree upon such umpire, chen, on request of the Insured or
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<br />POL 30
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<br />the Insurer. such umpire shall be selected by a judge of a court of record
<br />in the State in which the insured property is located. The appraisers shall
<br />then appraise the loss, stating separately actual cash value and loss to each
<br />item; and, failing to agree, shall submit their differences, only, to the um-
<br />pire. An award in writing, so itemized. of any two when filed with che In~
<br />surer shall determine the amount of actual cash value and loss. Each ap-
<br />praiser shall be paid by the party selecting him and the expenses of apprais.al
<br />and umpire shall be paid by the parties equally.
<br />R. Options: It shall be optional with the Insurer to take all. or any part,
<br />of the property at the agreed or appraised value, and also CO repair, rebuild
<br />or replace the property destroyed or damaged with other of like kind and
<br />quality within a reasonable time, on giving notice of its intention so to do
<br />within 30 days after the receipt of the proof of loss herein required.
<br />S. Abandonment: There shall be no abandonment CO the Insurer of any
<br />property. However, the Insurer may permit the Insured to keep damaged,
<br />insured property (' 'salvage") after a loss and reduce the amount of the loss
<br />proceeds payable to the Insured under the policy by the value of the salvage.
<br />T. When Loss Payable: Loss is payable within 60 days after the Insured
<br />files the proof of loss (or within 90 days after the insurance adjuster files
<br />an adjuster's report signed and sworn to by the Insured in lieu of a proof
<br />of loss) and ascertainment ofche loss is made either by agreement between
<br />the Insurer and the Insured, expressed in writing. or by the filing with the
<br />Insurer of an award as provided in paragraph' 'Q", above. If the Insurer
<br />rejects the Insured's proof of loss in whole or in part, the Insured may ac.
<br />cept such denial of the claim, or exercise the Insured's rights under this
<br />policy, or file an amended proof of loss as long as it is filed within 60 days
<br />of the date of the loss or any extension of time allowed by the Administrator.
<br />U. Ac:tioo. Against the Insurer: No suit or action on this policy for the
<br />recovery of any claim shall be sustainable in any court of law or equity
<br />unless all the requirements of this policy shall have been complied with,
<br />and unless commenced within 12 months next after the date of mailing of
<br />notice of disallowance or partial disallowance ofche claim. An action on
<br />such claim against the Insurer may be instiI:uIed, without regard CO the amount
<br />in conlrOVersy. in the United States District Court for the district in which
<br />the property shall have been situated.
<br />V. Subroption: In the event of any payment under this policy. the In~
<br />surer shall be subrogated to all the Insured's right of recovery therefor against
<br />any party, and the Insurer may require from the Insured an assignment of
<br />all rights of recovery against any party for loss to the extent that payment
<br />therefor is made by the Insurer. The Insured shall do nothing after loss to
<br />prejudice such right; however, this insurance shall not be invalidated should
<br />the Insured waive in writing prior to a loss any or all right of recovery against
<br />any party for loss occurring to the described property.
<br />W. Continuous Lake Flooding: Where the insured building has been
<br />inundated by rising lake waters continuously for 90 days or more and it
<br />appears reasonably certain that a continuation of this flooding will result
<br />in damage, reimbursable under this policy, to the insured building equal
<br />to or greater than the building policy limits plus the deductible or the max.
<br />imum payable under the policy for anyone building loss, the Insurer will
<br />pay the Insured the lesser of these two amounts without waiting for the fur~
<br />ther damage to occur if the Insured signs a release agreeing (i) to make
<br />no further claim under this policy. (ii) not to seek renewal of this policy,
<br />and (Hi) not to apply for any flood insurance under the National Flood In-
<br />surance Act of 1968, as amended, for property at the property location of
<br />the insured building, If the policy term ends before the insured building
<br />has been flooded continuously for 90 days, the provisions of this paragraph
<br />W still apply so long as the first building damage reimbursable under this
<br />policy from the continuous flooding occurred before the end of the policy
<br />lenn.
<br />X. Dupticate Policies Not Allowed: Property may not be insured under
<br />more than one policy issued under the Act. When the Insurer fmds that
<br />duplicate policies are in effect, the Insurer shall by written notice give the
<br />Insured the option of choosing which policy is to remain in effect. If the
<br />Insured chooses to keep in effecl the policy with the earlier effective date,
<br />the Insurer shall by the same written notice give the Insured an opportunity
<br />to add the coverage limits of the later policy to those of the earlier policy,
<br />as of the effective date of lhe later policy. If the Insured chooses to keep
<br />in effect the policy with the later effective date. the Insurer shall by the
<br />same written notice give the Insured the opportunity CO add the coverage
<br />limits of the earlier policy to those of the later policy, as of the effective
<br />date of the later policy. In either case, the Insured must pay the pro rata
<br />premium for the increased coverage limits within 30 days of the written
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<br />October 1992
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