Peterson v. Mechanics' Traders' Ins. Co.

The plaintiff held a mortgage note for $7,350 executed by one George Let-ten. He also held a policy of insurance for $7,000, issued by the defendant against the mortgaged premises. Plaintiff was indebted to Dendinger, Inc., and delivered to his creditor the note and the policy to secure the amount of his indebtedness. No change was made, however, in the “loss payable clause” of the policy. The mortgaged property was destroyed by fire, and Dendinger, Inc,., promptly demanded payment for the loss. This demand was refused by the insurance company on the ground of lack of interest. Later,…