Baldwin Mutual Insurance Co. v. Henderson

SHORES, Justice.

H.N. Henderson and his wife executed a mortgage on land on which a house stood to American National Bank (hereinafter “American National”). Later, the Hendersons agreed to sell the house to Edward R. Benefield, Jr., and Robin D. Benefield. American National required that the house be insured before it would allow the Benefields to assume the Hendersons’ mortgage. Baldwin Mutual Insurance Company, Inc. (hereinafter “Baldwin”), issued a policy providing $15,-000 coverage. Several months after the sale, the house burned. Baldwin refused to pay the claim, arguing that the contract…