Guempel v. Great American Insurance

The plaintiffs, trustees of Hamilton Investment Trust (Hamilton), conveyed property in Leominster to Jayar Colonial Realty Trust (Jayar) and took back a first mortgage. Jayar obtained an insurance policy, issued by Reserve Insurance Company (Reserve) naming Hamilton as first mortgagee, insuring against property damage and loss of rents caused by fire. Hamilton made an entry on February 25, 1976, to foreclose the mortgage because of Jayar’s earlier default. Jayar’s broker, Rome Insurance Agency, Inc. (Rome), through which the policy had originally been procured, wrote on March 5, 1976, to R.…