82 Kan. 525 | Kan. | 1910
The opinion of the court was delivered by
The Shawnee Fire Insurance Company issued to Nuss, the owner, a policy insuring his farm buildings against fire. A mortgage clause was attached making the loss, if any, payable to the Mutual Benefit Life Insurance Company, mortgagee, as its interest might appear, and providing that upon payment to the
The usual question is raised respecting policy restrictions upon the authority of officers and agents, but the evidence was sufficient to warrant a finding that Fast was the insurance company itself for all purposes of the transaction in controversy. It follows that the regularity of the assignment of the policy to Funk is not
The premium supported the insurance of two interests — that of the owner and that of the mortgagee. These interests were so far distinct that the situation may be regarded as if two policies had been issued, one to the owner and one to the mortgagee. But the consideration for both was not absorbed by either one. The mortgage clause did not eliminate the owner or his interest. He could discharge the mortgage and in the event of loss collect all the indemnity. His substantial rights, paid for and protected by the policy during its life, he could assign to his successor in ownership.
The mortgage clause reserved to the mortgagee no right to approve or disapprove assignments of the owner’s insurance, although changes in the ownership of the property insured are contemplated by the following language: “And this insurance, as to the interest of the mortgagee only therein, shall not be invalidated . . . by any change in the title or ownership of the property.” Without such a reservation the mortgagee could not restrict the owner’s right to assign. The mortgage clause further provided that the mortgagee’s insurance should not be invalidated by any act or neglect of “the mortgagor, or owner” — that is, any owner, including one in succession to the mortgagor. Consequently the mortgagee could have no interest in who became owner besides the mortgagor. The insurer might well have such an interest, and consequently it reserved the right to approve assignments of the policy by the owner.
The judgment of the district court is reversed, and the cause is remanded for a new trial.