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495 CORP. v. N.J. INS. UNDERWRITING ASS'N.

86 N.J. 159 (1981)

430 A.2d 203

495 CORP., A CORPORATION OF THE STATE OF NEW JERSEY, PLAINTIFF-RESPONDENT, v. NEW JERSEY INSURANCE UNDERWRITING ASSOCIATION, AN ASSOCIATION CREATED PURSUANT TO P.L. 1968, CH. 129, DEFENDANT-APPELLANT, AND JOHN L. CHMIELEWSKI, DEFENDANT.

The Supreme Court of New Jersey.

Decided May 27, 1981.

Attorney(s) appearing for the Case

Stanley W. Kallmann argued the cause for appellant (Gennet & Kallmann, attorneys).

Michael F. Chazkel argued the cause for respondent (Chazkel & Gast, attorneys).

The opinion of the Court was delivered by PASHMAN, J.

The standard mortgage clause in an insurance policy protects the interest of a mortgagee in the insured real property. This case presents the question whether a standard mortgage clause entitles a mortgagee to recover the full amount of a loss incurred after it acquired title to the insured property by a conveyance from the owner. The trial court held that the insurer is liable only for the amount of the outstanding...

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