Chrysler Credit Corp. v. Grange Insurance

Plaintiff, the loss payee and assignee of the proceeds of an automobile insurance policy, brought this action against Grange Insurance Association (defendant),1 to recover payment for damages sustained to an automobile it had financed. Plaintiff appeals from a summary judgment for defendant, contending that the trial court erred in holding that, before the vehicle was damaged, defendant had effectively cancelled both plaintiffs interest under a loss payable clause and the named insured’s policy. We reverse and remand.

In January, 1985, Boots, the named insured, purchased a vehicle and financed…