Honore v. Lamar Fire Insurance

Citations

• 51 Ill. 409

Syllabus

<p>1. Insurance—who may insure. Any person having an interest in property may, through an insurance, indemnify himself against loss by fire. Mortgagor and mortgagee have each an insurable interest. The interest of both may be covered in one policy, or each may take out a separate policy.</p> <p>2. Insurance—by a mortgagee—eiibrogation. The maker of a note deposited with the payee, as collateral security, certain personal property, upon which the mortgagee effected an insurance, in his own name, at his own cost, without privity with the mortgagor and without his knowledge. A loss occurring, the insurer paid the policy to the mortgagee and received an assignment of the note: JBeld, that payment of the mortgagee’s policy did not operate to extinguish the debt of the mortgagor, but the insurer was entitled to be subrogated to the claim of the mortgagee, and could recover upon the note.</p> <p>3. If the insurance had been effected, however, at the request or by the authority of the mortgagor, or at his expense, or under circumstances that would make him chargeable with the premium, it seems he would have been entitled to its benefits, by applying the money paid in extinguishment of so much of his debt.</p>