Heine v. Lancaster County Mutual Insurance

Citations

• 49 Pa. Super. 501
• 1912 Pa. Super. LEXIS 358

Syllabus

<p>Insurance — Fire insurance — Assignment of policy to secure mortgage — ■ Forfeiture — Additional insurance — Construction of policy.</p> <p>1. Where a policy of fire insurance is assigned as collateral security for a mortgage loan, the assignee can only recover where his assignor could have done so, had no assignment been made. If at the time of the assignment the policy was void, because of additional insurance taken by the insured without the consent of the company, the assignee can recover nothing on the policy in case of fire.</p> <p>2. Where a clause in a policy of fire insurance relating to an assignment of the policy as collateral security with the approval of the company, provides that “after the approval of such assignment the interest of such assignee in this policy shall not be vitiated by any subsequent change of ownership of the property insured; nor by any act or neglect of the owner of said property,” the word “subsequent” relates not only to change of ownership but also to any act or neglect of the owner; and if prior to the time of the assignment the owner had taken out additional insurance without the consent of the company, the policy is void as to the assignee in accordance with the general rule.</p>