Security Fire & Indemnity Company v. Barnhardt

The right of the plaintiffs to sue Barnhardt is based upon their allegation that Kiser “released his interest” in the automobile to the plaintiff Finance; that it paid the deductible portion (but did not name the payee) “whereupon Security paid Finance $335.79 for damages to the said 1956 Chevrolet automobile.” For the insurer to become subrogated to any right of action which the insured may have against the third party, the payment must be to the insured under the policy. Finance was not an insured under the policy and the complaint does not allege any loss payable clause to it. Further, we…