Phenix Insurance v. Mechanics & Traders Savings, Loan & Building Ass'n

A policy of insurance issued by appellant to F. W. Cleaver, as would appear on the face of it, but in fact taken out by the appellee, by a paper pasted on the face of the policy before it was issued, entitled “ Mortgage Clause,” made the “loss, if any, payable to” the appellee.

In this loss clause is contained the following language:

“ It is further agreed, that in case of any other insurance upon the property hereby insured, then this company shall not be liable under this policy for a greater portion of any loss sustained than the sum hereby insured bears to the whole amount of insurance on…