Schleimer v. Empire Mutual Insurance

The issue in this case is whether an insurer of an automobile is under a duty to give notice to a party named as loss payee ” of cancellation of the policy.

A party so designated has generally been considered to be a mere appointee with the right to receive the proceeds of the loss to the extent of his interest. Under a limited loss payable clause the rule is that if the policy is not collectible by the insured, the appointee cannot recover (5A Appleman, Insurance Law and Practice, § 3335, pp. 143, 144, 146). There are, of course, loss payable clauses which more fully protect the interests of…