Mortgagee Must Comply With The Terms And Conditions Of The Policy To Recover In A Fire Loss
- Topics:
- Property
- Tags:
- Business Operations,
- Corporate Insurance,
- Insurance,
- Loss,
- Proof
- Source:
- Chuhak & Tecson, P.C.
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Overview: Although there seems to be some support for the relation back theory, the application of the theory would seem to be contrary to the proposition that the insured and mortgagee have separate and independent causes of action and seems to disregard the specific policy language relating to the mortgagee. As the need to request a mortgagee to comply with the terms and conditions of the policy, will most likely occur in a situation where the underlying claim made by the insured has been denied. There are certain steps an insurance company may take in order to minimize the potential for this situation to arise. The company must clearly set forth in the letter requesting a proof of loss from the mortgagee that the rejection of the insured’s proof of loss pursuant to the denial of the insured’s claim will act as a failure of the insured to file a proof. Correspondence containing such language should require the mortgagee to comply with the specific policy language contained within the mortgage clause, including the requirement to file a timely proof of loss.
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Format: HTML | Date: Jan 2003 | Pages: 1
