Farmers Home Mutual Fire Insurance v. Bank of Pocahontas

Tom Glaze, Justice.

Appellant Farmers Home Mutual Fire Insurance Company (“Farmers”) has petitioned for review from a court of appeals opinion affirming the trial court’s ruling in favor of the appellee Bank ofPocahontas (“the Bank”). We are asked to interpret the phrase “on demand” in a standard mortgage clause in a home insurance policy.

The facts are as follows: Donna Hawkins obtained a mortgage loan from the Bank in order to purchase a home. The Bank approved the loan and issued a standard real estate mortgage that required an insurance policy naming the Bank as loss payee. Hawkins obtained…