Equity Required Insurer to Pay Policy Proceeds

In Marling Family Trust v. Allstate Ins. Co., ___ N.E.2d ___ (Ind. Ct. App. 2012), Indiana’s Court of Appeals reversed a trial court’s grant of summary judgment in favor of an insurer.  In doing so, the Court of Appeals found that a mortgage holder acquired an equitable lien on insurance proceeds that were available to
a homeowner who lost the property in foreclosure.  The Court reasoned that if a covered loss occurs to insured property before a Sheriff’s sale, the mortgage holder was not
aware of the damage when it purchased the property at that sale and the insurer
has not yet distributed policy proceeds for the loss, then equity requires the
insurer to pay the proceeds to the mortgagee.

About Curtis T. Jones

Curtis Jones (CUJO) is a Partner in the Appellate, Litigation and Insurance Groups at Bose McKinney & Evans LLP (BME). ~Before joining BME, I served for two years as a judicial law clerk for the Honorable Theodore (Ted) R. Boehm in the Supreme Court of Indiana. Since 2006, I have worked extensively on a number of complex business and commercial litigation matters and have handled numerous appeals in the Indiana Appellate Courts and Seventh Circuit. I have also assisted insurers, wholesalers, agents, brokers and insureds in the insurance industry analyze, litigate and/or resolve coverage issues.~ For more information about Curtis T. Jones: http://www.boselaw.com/people.cfm/staff/219
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