24 BULL KT IX 530, U. S. BEPARTMEXT OF AGRICULTURE. 



(b) Final approval by the company. — An application reaching the secretary 

 with the conditional approval of a director shall be passed upon by the executive 

 committee before a policy is issued to the maker of such application. An applica- 

 tion received with the full approval of a director may, linless the board other- 

 vise orders, be passed upon by the secretary, who* in case no errors or incon- 

 sistencies or other reasons for delay or for reference to the executive committee 

 are discovered by him, shall promptly issue a policy on the basis of said applica- 

 tion and forward such policy to the applicant. 

 Sec. 0. Special inspection of property. 



At least once every three years the property insured shall be thoroughly 

 inspected by a competent person employed by the company as- special inspector. 

 Said inspector shall carefully examine the flues of all dwellings or other build- 

 ings wherein fire is used, note the placing and the condition of stoves a*nd fire- 

 places and the disposition of ashes therefrom, inquire into the system or method 

 of lighting buildings, examine all lightning rods, and ascertain if fences are 

 properly grounded. He shall take careful notice of any and all defects or 

 dangerous practices. He shall also note the presence or absence of means of 

 combating a fire, such as readily available water supply, or chemical extin- 

 guishers, and suitable ladders by means of which the top of the roof can be 

 quickly reached. He shall advise with the insured concerning the general im- 

 provement of the risks, and shall recommend specific measures for the removal 

 of conditions materially increasing the hazard thereof. He shall report to 

 the company, upon blanks furnished him for that purpose, the condition of each 

 member's risk or risks, together with the recommendations, if any, made by 

 him for the removal of dangerous conditions. Refusal or neglect on the part 

 of the insured to carry out specific recommendations of the inspector may, in 

 the discretion of the board of directors or their representatives, be made cause 

 for the cancellation of his policy or policies. 

 ►Sec. 10. General conditions of insurance. 



(a) Term of policy. — Except as hereinafter provided, all policies shall be 

 written for a term of five years, and shall date from the date specified in 

 the application. An application which has the full approval of a director 

 shall cause the insurance applied for to be in full force and effect from the 

 date specified therein, unless and until such application is rejected by the 

 executive committee and notice thereof given to the applicant. An application 

 with the conditional approval of a director shall impose no liability upon the 

 company until approved by the executive committee. 



(b) Limits to the amount of insurance. — The directors of this company 

 shall exercise due care to prevent the insurance of any property for more 

 than three-fourths or less than one-half of the cash value of the property: 

 Provided, That until the company has $500,000 of insurance in force no single 

 risk or group of property subject to one and the same fire shall be insured 

 for an amount greater than .$1,500, nor shall such maximum single risk exceed 

 $2.<i00 until the company has $1,000,000 of insurance in force, nor shall it 

 later exceed two-tenths of 1 per cent of the insurance in force: And provided 

 further. That the insurance placed on live stock shall not exceed an amount 

 per head of $200 on horses. $60 on cattle, $15 on hogs, and $10 on sheep. 



(c) Liability ok the company. — This company shall in no case be liable 

 for loss or damage from other cause than that of fire or lightning, nor for 

 more than the actual cash value of the property at the time of the loss, nor 

 shall it be liable for loss caused directly or indirectly by invasion, insurrec- 

 tion, riot, or civil war, or by order of any civil* authority. If a building or 

 any part thereof fall, except as the result of fire or lightning, the insurance 



