Delaware Ins. v. Greer

Citations

• 120 F. 916
• 61 L.R.A. 137
• 1903 U.S. App. LEXIS 4554

Syllabus

<p>1. Insurance — Contracts—Construction.</p> <p>Policies and contracts of insurance must he construed, like other contracts, according to the ordinary, popular sense of the terms they contain. The meaning of their stipulations, in their common, popular sense, is not to be discarded for some hidden meaning, that nothing but the exigency of a hard ease and the ingenuity of an acute mind would discover.</p> <p>S. Same — Mortgage Clause — Construction.</p> <p>The effect of the mortgage clause, “loss, if any, payable to mortgagee, as his interest may appear,” or of words of similar import, often attached to policies of fire insurance, is to make the mortgagee the simple appointee of the mortgagor, to receive the proceeds of the amount of his interest, and to place his indemnity at the risk of every act and omission of the mortgagor that would avoid, terminate, or affect the insurance of the latter’s interest under the terms of the policy.</p> <p>¶ 1. See Insurance, vol. 28, Cent. Dig. § 292.</p> <p>8. Same — Foreclosure Clause — Mortgage Clause — Construction.</p> <p>A policy of insurance to a mortgagor, to which was attached a mortgage clause in the above form, contained these provisions: “This entire policy unless otherwise provided by agreement endorsed hereon or added hereto shall be void * * * if with the knowledge of the insured foreclosure proceedings be commenced or notice be given of sale of any property covered by this policy by virtue of any mortgage or trust deed,” and “if with the consent of this company, an interest under this policy shall exist in favor of a mortgagee or of any person or corporation having an interest in the subject of insurance other than the interest of the insured as described herein, the conditions hereinbefore contained shall apply in the manner expressed in such provisions and conditions of insurance relating tp such interest as shall be written upon, attached, or appended thereto.” Held:</p> <p>(1) The mortgage clause expressed, mo