INSURANCE-EFFECT OF MORTGAGE FORECLOSURE CLAUSE

Authors

Abstract

Plaintiff, the mortgagee, applied for insurance on the mortgaged property in his own name and only consented to the policy being made in the name of the mortgagor with "loss-payable" rider in his favor upon representation of the insurance agent that it was the only form of policy the company used and would accomplish the same result. In the body of the policy there was a clause rendering the policy void upon foreclosure of the mortgage. At the time of issuance of the policy, the debt was overdue and the insurance company had knowledge of this fact. Held, the mortgagee, having an insurable interest in the property, was entitled to recover regardless of the foreclosure of the mortgage. Baker v. L.& L. & G. Ins. Co. (Texas, 1925) 275 S. W. 316.

Recommended Citation

INSURANCE-EFFECT OF MORTGAGE FORECLOSURE CLAUSE, 24 Mich. L. Rev. 589 (1926).
Available at: https://repository.law.umich.edu/mlr/vol24/iss6/6