[StBernard] Insurance Checks

[Westley Annis]

"i would like to know what law gives the insurance co the right to put the
mortgage co on an insurance check.  granted the mortgage holder has an
obligation to pay his debt , but why does he not have the right to cash the
check and send the mortgage co their share.  what is the cut off point where
you get all of the proceeds? why is the same not done for auto insurance?
Jj"

****JJ, in business colateral is crucial to an Insurance company as losses
of magnitude as a homestead, etc. needs assurity that its business will not
have to burden the loss.

Property of value equal or greater to the loan made is backup for the loss.
It's part of the document you signed. When the loss or default occurs the
home can be forfeited to the mortgage/banking company for its share of the
loan/debt against the property. Therefore, when satisfied that it has
received what was owed them, the balance if any, should be returned to the
homeowner. Hence, the company in its mutual legal sense designed it that way
for that purpose. 

If the check has a date to cash the check, then its date mandates the
check's ability to be cashed. Companies vary as to expiry dates or not.
Perhaps, car insurances do the same, as liens are placed vs. the car
(titles) until the purchaser gets entitlement and sole ownership. Then the
title reverts to the owner alone. Then, once paid, the owner of car or home
can sell said property without monetary lien to it.

It's in the legal sense, that one protects its interest. I suppose that's
the way business is propertly run. If a check is issued to two signatures
(co-sign), then both must sign to have the funds released. For more
understanding, seek legal counseling if you feel your case is strong to that
end. I'm not an attorney, so...it's my opinion only.

==Jer==