Chrysler Credit Corp. v. State Farm Mutual Automobile Insurance

Lewis, Justice:

The question to be decided is whether the vesting of title to a mortgaged automobile in the lienholder, by operation of law, and the delivery of. possession of the vehicle to him, because of default in the mortgage payments, constituted such a “change of interest or ownership” as required the lienholder to notify the insurer of the vehicle of such facts, within the meaning of the following policy provision, particularly the emphasized portion thereof:

5. Lienholder: If a mortgage owner, conditional vendor, or assignee is named in the exceptions, loss, if any, under coverage D, F…