Insurance Co. of North America v. Erickson

Citations

• 50 Fla. 419

Syllabus

<p>INSURANCE LAW — INTEREST OF ASSURED IN PROPERTY, SOLE OWNERSHIP CLAUSE IN POLICIES — UNQUALIFIED CONTRACT FOR SALE OF PROPERTY DESTROYS SOLE OWNERSHIP — VIOLATES SOLE OWNERSHIP CLAUSE, AND VITIATES THE POLICY.</p> <p>1. The following provision in a policy of fire insurance is material, valid and binding on the parties to the contract: “This entire policy, unless otherwise provided by agreement indorsed hereon or added hereto shall be void * * * if the interest of the insured be other than unconditional and sole ownership.”</p> <p>2. Where an assured, prior to taking out a policy of fire insurance on property, executes and delivers to a third party a bond for title or contract for the sale and conveyance of the property, whereby he unqualifiedly obligates and binds himself, his heirs, executors and administrators to convey said property in fee to such third party by good and sufficient deed free of all encumbrances upon the payment by such vendee of definitely fixed and specified sums of money at definitely fixed and specified dates, and whereby such third party vendee unqualifiedly binds and obligates himself, his heirs, executors, administrators and assigns to pay such definitely fixed and agreed sums of money at the dates specified, such contract or bond for title renders the vendor no longer the sole and unconditional owner of the property, but converts him. into a trustee holding the legal title in trust for the vendee as security for the payment of the agreed purchase price, and unless such status towards the property be provided for by agreement between the insurer and insured duly indorsed on the policy of insurance or added thereto, such policy of insurance will be null and void if it contains the provision that: “This entire policy, unless otherwise provided by agreement indorsed hereon or added hereto shall be void if the interest of the insured be other than unconditional and sole ownership.”</p> <p>3. The interest of a purchaser of property, which he