Southern Insurance Co. v. Federal Service Finance Corp. of Texas

PHILLIPS, Justice.

This case involves an appeal from two summary judgments granted against Southern Insurance Company.

The case presents a situation where one Gosztyla wrecked a car insured by Southern Insurance Company for $500 and subject to a lien in favor of Federal Service Finance Corporation of Texas for $632.52. Federal is named as loss payee in the policy issued by Southern Insurance Company. The car was a total wreck and Southern Insurance Company, allegedly under the provisions of the contract of insurance, authorized Simmons Motor Company to replace the wrecked car for another car…