Home Ins. Co. v. INGOLD TIRE CO., INC.

HUSKINS, Justice.

In the financing agreement with B-WAC defendant agreed to obtain insurance covering floor-planning merchandise and, if defendant failed to do so, authorized B-WAC to purchase such insurance at defendant’s expense. The trust receipts contained a similar promise by defendant to purchase insurance with a loss payable clause. Defendant breached its promise to purchase insurance and now contends that, since the financing agreement allowed B-WAC to obtain the insurance at defendant’s expense, defendant is entitled to the benefit of the insurance proceeds paid under B-WAC’s blanket…