Farmers & Merchants Savings Bank v. Farm Bureau Mutual Insurance Co.

LAVORATO, Justice.

In this single issue appeal we must decide whether an assignee of a contract vendor named as loss payee under a standard mortgage loss payable clause in an insurance policy procured by the contract vendee is entitled to insurance proceeds where the real estate contract has been forfeited subsequent to a fire loss. The defendant Farm Bureau Mutual Insurance Company (Farm Bureau) appeals from a district court declaratory judgment that obligated Farm Bureau, who insured the premises, to pay the insurance proceeds to the plaintiff Farmers and Merchants Savings Bank (bank),…