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Week 10 Individual Work

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claim can not be paid twice for the same incident or same property. The amount of the remaining mortgage will be paid to the First National Bank since they hold the mortgage. [ Any additonal amounts over and above the outstanding mortgage would go to the current owner of the property - Interstate Dist. Corp. The insurance policy still held by Eagle Sales Company is void since Eagle Sales no longer has any vested interest in the property. The policy should have been canceled. ]
This was a little confusing, why does Eagle still have an insurance policy with a building they no longer own? I believe in this problem that there are three insurance policies on the same building, not sure if this is legal, since they all have the policy with the same insurance company. It was my understanding that this is illegal but I am not an expert on the matter. So let us believe that own more than one insurance policy on a building is illegal, we need to look at which one is the correct policy. I was always though that the own of the business had to have the insurance on the building, to cover the mortgage, most banks will not grant a loan without an insurance policy on the property. So Eagle did own the building and it was mortgage through First National, then Eagle sold the building to Interstate Distribution, who kept the mortgage through First National. So if the building is destroyed in a fire the insurance company would send out an adjuster who would approve the value of the building and its content and then have a check made out to First National Bank. If the owners are going to rebuild the bank would then make the arrangements to pay the contractors for the job, if there is anything left the bank would send the remainder to the own who is Interstate. This is how I understand the process to

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