Molaka v. American Fire Insurance

Citations

• 29 Pa. Super. 149
• 1905 Pa. Super. LEXIS 281

Syllabus

<p>Insurance — Fire insurance — Mortgage — Subrogation — Principal and Surety.</p> <p>Where the mortgage clause of a policy of fire insurance provides that the rights of the mortgagee shall not be invalidated by any act of the mortgagor, and that the insurance company shall be subrogated to the rights of the mortgagee under all securities held as collateral to the mortgage debt, and it appears that the insured procured additional insurance in violation of the terms of the policy, a portion of which after a fire he assigned to the mortgagee, the insurance company is entitled to be subrogated to the rights of the mortgagee in such insurance, and if it appears that the mortgagee has voluntarily relinquished her rights to such insurance, the company will be discharged from all liability to her.</p> <p>When a creditor has in his hands the means of paying his debt and does not use it, but gives it up, the surety is discharged as far as the security surrendered would have reached to pay.</p>