Continental Insurance v. Cox

Citations

• 92 Ill. 145

Syllabus

<p>1. Instjbakoe—whether a mortgagor’s interest is insured, or that of the mortgagee—violation of condition as to other insurance. Two persons, husband and wife, executed a mortgage on certain premises. Prior to the mortgage the husband had conveyed the property to his wife. Subsequent to the mortgage the mortgagors procured a policy of insurance on the premises, to themselves, the policy providing, however, loss, if any, payable to the mortgagee, as his interest might appear: Held, this was an insurance of the mortgagor’s interest, not that of the mortgagee. Making the “ loss, if any, payable to the mortgagee,” was not an insurance of his mortgage interest. The mortgagors became the assured.</p> <p>2. The policy contained a condition, that if the assured should procure-other insurance on the property, whether such other insurance be valid or not, without the consent of the 'company written upon the policy, then the policy to be void. The wife, one of the assured in this policy, did procure other insurance in another company, on this property, in her own name alone. It was held this was in violation of that condition, and would operate to defeat a recovery in a suit upon the policy by the mortgagee. It was the “ assured ” who were within the prohibition, and the mortgagors were the “assured.” Nor did it matter that it was the wife alone who procured the “ other insurance,” as her act alone avoided the policy equally as if the subsequent insurance had been effected by both the assured.</p> <p>3. Nor was it a subject of inquiry whether such subsequent insurance was valid or not, as in either case it would have been within the express terms of the condition.</p> <p>4. In such case, where the policy is issued to one, but provides that the loss, if any, shall be paid to another, as his interest may appear, the person to whom the loss may be thus paid holds his right subject to the conditions imposed by the policy upon the assured, so that if the latter, through a violati