Vancouver Nat. Bank v. Law Union & Crown Ins.

Citations

• 153 F. 440
• 1907 U.S. App. LEXIS 5103

Syllabus

<p>1. Insurance — Insurable Interest — General Creditor of Owner of Property.</p> <p>A general creditor has no insurable interest in the property of his debtor. [Ed. Note. — For cases in point, see Cent. Dig. vol. 28, Insurance, § 142.)</p> <p>2. Same — Right of Action on Policy.</p> <p>An insured may, at least with the consent of the insurer, have the loss, if any, made payable to a third person, who by such designation becomes his agent or representative, and may sue on the policy in case of loss in his own name; and it is immaterial that he is a creditor of the insured and by agreement between them entitled to the insurance, but his right of recovery is subject to all conditions imposed upon the insured.</p> <p>[Ed. Note. — For cases in point, see Cent. Dig. vol. 28, Insurance, § 1559.]</p> <p>3. Same — Construction of Policy — Application of Conditions to Mortgagee.</p> <p>Under a provision of an insurance policy that “if. with the consent of the company, an interest under this policy shall exist in favor of a mortgagee'or of any person or corporation having an interest in the subject of insurance other than the interest of the insured as described herein, the conditions hereinbefore- contained shall apply in the manner expressed In such provisions and conditions of insurance relating to such interest as shall be written upon, attached, or appended hereto,” the preceding conditions in the policy apply to the interest of a mortgagee or other person having an interest in the policy in all events, but as modified by whatever'may be written upon the slip attached to the policy.</p> <p>4 Same-Avoidance or Policy bob Breach or Condition — Title or Insured.</p> <p>A policy of fire insurance containing a provision that it shall be void if the interest of the insured be other than unconditional and sole ownership is avoided by a contract by the insured for the sale of the property by which he transfers possession and agrees to convey the title, the effect of such contrac