American Credit of Sumter, Inc. v. Nationwide Mutual Insurance

Appellant (American Credit) filed an action claiming respondent (Nationwide) acted in bad faith by failing to pay the money due under an insurance policy. Nationwide answered that any claim brought by American Credit would be subject to the Loss Payable Clause of the policy and that this Clause denies coverage to American Credit. The magistrate court granted Nationwide’s motion for a directed verdict and the circuit court affirmed. We now reverse.

*626FACTS

The insured was the owner of a 1998 Nissan Altima automobile which was financed by American Credit. The automobile was insured with Nationwide…