Chrysler Credit Corp. v. Smith

WIEAND, Judge:

The is.sue in this appeal is whether an automobile insurer, before paying a fire loss, must conduct a search of public records in order to avoid liability to a lienholder who has not been named as a loss-payee in the policy and whose interest has not otherwise been disclosed to the insurer. The trial court held that the insurer had a duty to search the public records before paying a routine loss, and entered summary judgment in favor of the lienholder and against the insurer. After careful review, we reverse.

On November 11, 1985, Harry G. Smith and Kathy Alexander, t/a Republic…