Metropolitan Mortgage & Securities Co. v. Reliable Insurance

The facts of this case are not in dispute. William and Mary Dargan, as contract purchasers of a parcel of land in Tacoma, bought from the appellant a fire insurance policy, which covered the dwelling situated on the property. The policy had a “contract of sale” clause, which named Kirby Hickey as vendor and provided that, in the event of loss, as between vendor and vendee, proceeds of the policy should be paid first to the vendor, to an amount not exceeding the balance unpaid on the contract.

The policy also contained the following provision: “Assignment of this policy shall not be valid…