State Bank of Chilton v. Citizens Mutual Fire Insurance Co.

The principal contention made and argued here is that the election of the defendant to rebuild the barn operated to make a new contract by virtue of which the defendant might discharge its liability under its policy by rebuilding the barn. On behalf of the defendant it is claimed that this option or right to elect is conclusive not only upon the owner of the property but upon the mortgagee under the subrogation clause. By sec. 203.06, Wis. Stats., fire insurance companies are prohibited from issuing or delivering policies which do not conform to the standard policy with certain exceptions…