Fort Scott Building & Loan Ass'n v. Palatine Insurance

Citations

• 74 Kan. 272
• 86 P. 142
• 1906 Kan. LEXIS 52

Syllabus

<p>SYLLABUS BY THE COURT.</p> <p>1. Title — Merger—Legal Title Acquired by Mortgagee. Where a mortgagee of real estate acquires the legal title to the mortgaged property, the mortgage will become merged in the larger estate or not as the mortgagee may desire or his interest require.</p> <p>2. Fire-insurance — Security for a Mortgagee — Acquisition of Legal Title by Mortgagee. Where a mortgage on real estate is secured in part by an insurance policy issued to the mortgagor, and the mortgagee subsequently receives a conveyance of the mortgaged property and holds the same as security for the mortgage debt, the mortgage will not become merged in the legal title so as to relieve the insurance company from liability in case of fire.</p> <p>3. -Mortgage Clause — Change of Ownership. Where an insurance policy has attached thereto what is commonly known as a “mortgage clause,” which 'contains a provision “that the mortgagee shall notify this company of any change of ownership . . . which shall come to his . . . knowledge,” and the mortgagee subsequently receives a quitclaim deed to the mortgaged property, such conveyance will not constitute a change of ownership within the meaning of such provision.</p> <p>4. -Proofs of Loss Waived. When insured property is injured or destroyed by fire, and the insurance company sends an adjuster to ascertain the extent of the loss, and such adjuster after a personal examination of the premises estimates the damages and agrees upon the amount of the loss with a mortgagee whose debt is secured by a mortgage on the insured premises and also by the insurance policy thereon, such adjustment and agreement will make proofs of loss unnecessary.</p> <p>5. -Mortgage Clause — Bight to Subrogation. Where an insurance company as a part of its policy issues what is commonly known as a “mortgage clause,” which contains a provision that “whenever this company shall pay the mortgagee any sum for loss under this policy, and shall claim that as to the mortgag