Sedlachek v. Home Insurance

The opinion of the court was delivered by

Hutchison, J.:

This was an action on a fire insurance policy, and the serious question involved is whether the forfeiture of the policy by a violation of the encumbrance clause was waived by the adjuster after the loss had occurred.

The plaintiffs purchased a new automobile from a Ford agency, paying only a part of the purchase price, and the agency arranged for a loan for the balance of the purchase price with the -Universal Credit Company, to which company a chattel mortgage was given, and this fire insurance- policy was procured by the agency at the…