Highlands Insurance v. Allstate Insurance

ALVIN B. RUBIN, Circuit Judge:

Two insurers issued separate policies, each purporting to insure the same property against loss by fire, each with a loss payable clause in favor of the same institutional mortgagee of the property. Each policy contained a clause providing that it would not be effective if there were other insurance on the property. When the property was damaged by fire, each insurer denied liability under its policy and one contended alternatively that the loss should be prorated. After a bench trial, the district *400judge concluded that, under Mississippi law, which applies in…