Federal Insurance v. Century Federal Savings & Loan Ass'n

OPINION

MONTGOMERY, Justice.

This is an insurance coverage dispute between a bank and an insurance company. The bank, Century Federal Savings & Loan Association (“Century”) in Santa Fe, New Mexico, was the insured under a “Financial Institutions Insurance Coverage” policy (“the policy”) issued by Federal Insurance Company (“Federal”). The dispute centers primarily around the portion of the policy entitled “Mortgage Holder’s Insurance,” which insured against loss by Century, as a mortgage holder, resulting from damage or destruction to mortgaged property. Century claimed to have suffered such a…