Commercial Union Assurance Co. v. Scammon

Citations

• 126 Ill. 355
• 18 N.E. 562

Syllabus

<p>1. Insurance—subsequent insurance by another, without right—effect as to rights under a prior policy. The owner of premises, after having given a mortgage thereon, procured a policy of insurance on the property. Subsequently a sale was made under a power in the mortgage, and thereupon the purchaser at such sale, without the consent of the mortgagor, insured the premises in his own name, and on the destruction of the building by fire, collected the insurance money under his policy. On bill by the mortgagor, the sale was set aside, and an accounting had in respect to the money so received: Held, that this was no bar to a suit by the mortgagor to recover on his prior policy, for the loss.</p> <p>2. Same—condition against alienation—construed—and herein, what constitutes an alienation. A policy of insurance upon a house, including no personal property, provided that if the property be sold or transferred, or any change in title or possession should take place, either by judicial sale or voluntary conveyance, the same should be void. Another clause provided, that where property has been sold or delivered,, or otherwise disposed of, so that all interest or liability on the part of the assured has ceased, the insurance should immediately terminate:' Held, that taking' these clauses together, it was apparent that an alienation, to avoid the policy, must be such that all interest or liability of the assured has ceased.</p> <p>3. In such a case, a sale of the property insured under a power in a deed of trust, which is voidable, and is afterward set aside, is not such an alienation of the property, within the meaning of the policy, as will avoid it.</p> <p>4. A trustee under a mortgage containing a power of sale can not become a purchaser at his own sale, either directly, or indirectly, by procuring another to buy for his benefit, and if he does so become the piuchaser, the right of the mortgagor will not be affected, and such a sale and conveyance will not constitute an al