Ellis Coat Co. v. United States Fire Insurance

Under section 109 of the Insurance Law when the loss is uncollectible by reason of the insolvency or bankruptcy of the insured, it is collectible against the insurance company, as the policy under the provisions of the statute then becomes a contract of liability as well as of indemnity. (Brustein v. New Amsterdam Casualty Co., 255 N. Y. 137; Skenandoa Rayon Corp. v. Halifax Fire Ins. Co., 245 App. Div. 279; affd., 272 N. Y. 457.)

When the bankrupt insured is liable for damage caused by his automobile his insurance company is also liable under its policy for the personal injury or property…