Florida/Georgia Personal Injury & Workers Compensation

...tered judgment for appellee-Palmer in the sum of $7,125.00 as his attorney's fee for the prosecution of this action. Appellant first contends that this action was champertous, because Palmer did not have an insurable interest. Subsection (2) of F.S. Section 627.405, F.S.A....

...[3] Alternatively, the same result can be reached on the theory that the Parkers' interest in receiving a usurious rate of interest from their loan transaction, which would subject them to a felony prosecution if consummated in Florida, is not an "insurable interest" within the meaning of Section 627.405(2), Florida Statutes (1981), which requires the interest to be "lawful." Cf....

...od faith by the insurer. Thus the public policy of Florida, as expressed in a statute directly pertaining to the doctrine of insurable interest, specifically negates any duty of inquiry into the actual insurable interest of an applicant-beneficiary. Section 627.405, Florida Statutes (1979), by its terms only applies to property insurance but provides a definition of the concept of insurable interest: (1) No contract of insurance of property or of any interest in property or arising from property...

...... nor in any event for more than the interest of the insured, against all direct loss by fire, lightning and by removal from premises endangered by the perils insured against in this policy ..." [5] 18 Fla.Jur., Insurance, § 478 (1971). [6] F.S. § 627.405(2), F.S.A. [7] F.S. § 627.405(3), F.S.A....

...an amount which greatly exceeded the proceeds which they claimed under the policy. The Smigiels were statutorily entitled to claim an insurable interest in the amount “to which they might be damnified by loss, injury or impairment____” Fla.Stat. § 627.405(3) (1981)....

...terest in the property covered. "Insurable interest" is defined as: [A]ny actual, lawful, and substantial economic interest in the safety or preservation of the subject of the insurance free from loss, destruction, or pecuniary damage or impairment. Section 627.405(2), Florida Statutes (1982). The measure of this interest is "the extent to which the insured might be damnified by loss, injury, or impairment" of the vehicle. Section 627.405(3), Florida Statutes (1982); see Aetna Insurance Co....

...However, we do find error in the court's failure to declare appellant's rights under the policy, and in its failure to proceed with the enforcement of the mortgagee payment clause upon the basis of appellant's right as a third party beneficiary. Fla. Stat. § 627.405, F.S.A., [2] sets out by way of negative statement the proposition that a contract of insurance of property may be enforced for the benefit of persons having an insurable interest in the property....

...Affirmed in part, reversed in part, and remanded. NOTES [1] We note that there appears to be a nonjoinder of a necessary party plaintiff, i.e., the wife of the plaintiff, but we leave this defect to be cured upon remand to the trial court. See Rule 1.250, R.C.P., 30 F.S.A. [2] "627.405 Same; property....

...Because that is so, we hold that the trial court erred in concluding that Sun State's action was barred by collateral estoppel. In granting the motion for summary judgment the court also found that Sun State did not have an insurable interest in the damaged property. Section 627.405(2), Florida Statutes (1979), defines insurable interest as: [A]ny actual, lawful, and substantial economic interest in the safety or preservation of the subject of insurance free from loss, destruction, or pecuniary damage or impairment....

...In a supplemental final judgment the court awarded appellee prejudgment interest of $50,993.36 and attorney's fees in the amount of $21,000. It is well-settled that in order for an insurance contract to be valid, a policyholder must have an insurable interest in the property insured at the time of the loss. § 627.405(1), Fla. Stat. (1983). The measure of an insurable interest in the property is the extent to which the insured might be damnified by the loss, injury, or impairment thereof. § 627.405(3), Fla....

...held that a post-loss assignee is not required to have an insurable interest at the time of loss. See Accident Cleaners, Inc. v. Universal Ins. Co., 2015 WL 1609973 (Fla. 5th DCA Apr. 10, 2015). The court explained that the legislature, in enacting section 627.405, Florida Statutes, “did not state that it was displacing well- settled common law of (1) the free assignability of contractual rights to recover or (2) the inability for insurers to restrict post-loss assignments.” Id....

...." Part II of the chapter is entitled "The Insurance Contract" and provides in one section that no contract of insurance of property or of any interest arising from property shall be enforceable except for the benefit of persons having an insurable interest in the thing *861 insured at the time of the loss. § 627.405, Fla....

...” summary judgment is not only proper, but required. Morris v. Ross, 663 F.2d 1032, 1034 (11th Cir.1981), cert. denied, 456 U.S. 1010 , 102 S.Ct. 2303 , 73 L.Ed.2d 1306 (1982),. III. Discussion A. Plaintiffs’ Remaining Interest after Foreclosure Section 627.405, Florida Statutes, provides the basis for standing tó sue under an insurance contract, to wit: (1) N6 contract of insurance of property or of any interest in property or arising from property shall be enforceable as to the insurance...

...the subject of the insurance free from loss, destruction, or pecuniary damage or impairment. (3) The measure of an insurable interest in property is the extent to which the insured might be damnified by loss, injury, or impairment thereof. Fla. Stat. § 627.405 (emphasis added)....

...1st DCA 1972)). In the instant case, the Conyers were the owners of the property at the time of the loss and therefore had an actual, lawful, and substantial economic interest in the safety or preservation of the subject property. Therefore, as defined by Section 627.405, the Conyers have standing to bring this action as third-party beneficiaries....

...As explained in In re Cayer, a mortgagee’s right to receive insurance proceeds is fixed at the time of the loss and subsequent foreclosure proceedings do not extinguish this right unless the mortgage debt is discharged in full. 150 B.R. at 831 . Additionally, as provided by Section 627.405, the Conyers have standing to enforce Balboa’s promise to pay the mortgagee the extent of its loss in the subject property....

...those repairs. We thus reject Gulfstream's argument that assignment of benefits contravenes section 626.854(16) under the facts and circumstances of this case. Gulfstream further contends that the assignment of benefits to Bioscience violates section 627.405, Florida Statutes (2012), because Bioscience, an assignee, does not have an "insurable interest" in "the things at the time of the loss." Section 627.405(1) states as follows: "No contract of insurance of property or of any interest in property or arising from property shall be enforceable as to the insurance except for the benefit of persons having an insurable interest in the thin...

...the person in whom rests by substantive law, the claim to be enforced.' " (quoting Weiss v. Johansen, 898 So. 2d 1009, 1011 (Fla. 4th DCA 2005))); Accident Cleaners, Inc. v. Universal Ins. Co., 40 Fla. L. Weekly D862, D863 (Fla. 5th DCA Apr. 10, 2015) ("We therefore construe section 627.405 to require the property owner who holds the policy to have an insurable interest at the time of loss....

...expressly contemplated that there might be a final judgment — presumably stemming from a lawsuit — before payment was due." Curtis v. Tower Hill Prime Ins. Co., 154 So. 3d 1193, 1196 (Fla. 2d DCA 2015). As such, we reject Gulfstream's interpretation of section 627.405 as well. Even if an insurance policy contained a specific, articulate provision precluding an insured's post-loss assignments of benefits without the insurer's consent, Florida case law yields deep-rooted support for the conclusion that post-loss assignments do not require an insurer's consent....

...he circumstances of the case presently before us. We turn to a consideration of appellee's point urging that the counterclaim was properly dismissed because the policyholder as a contract purchaser did not have an insurable interest in the property. Section 627.405, Fla....

...Prudence Mutual Casualty Co., 193 So.2d 224 (Fla. 3d DCA 1966), aff'd, 202 So.2d 561 (Fla. 1967) (insurer is subrogated to only such rights as the insured possessed). We conclude that Flood Engineers had an insurable interest which could be protected under the builders' risk policy. Section 627.405(2), Florida Statutes (1985), states: "Insurable interest" as used in this section means any actual, lawful, and substantial economic interest in the safety or preservation of the subject of the insurance free from loss, destruction, or pecuniary damage or impairment....

...We conclude that the better policy is expressed by the majority view. We hold that where the potential risk to be insured under a builders' risk policy is one of liability for damages to the construction project, such risk will constitute an "insurable interest" under section 627.405(2)....

..."`Insurable interest' as used in this section means the actual, lawful, and substantial economic interest in the safety or preservation of the subject of the insurance free from loss, destruction, or pecuniary damage or impairment." transferred to Fla. Stat. § 627.405(2) (1971), F.S.A....

standing to bring this action. Florida Statute § 627.405 provides (1) No contract of insurance of property

...* Not final until disposition of timely filed motion for rehearing. time of loss. See Accident Cleaners, Inc. v. Universal Ins. Co., 2015 WL 1609973 (Fla. 5th DCA Apr. 10, 2015). The court explained that the legislature, in enacting section 627.405, Florida Statutes, “did not state that it was displacing well- settled common law of (1) the free assignability of contractual rights to recover or (2) the inability for insurers to restrict post-loss assignments.” Id....

...loss avoided protection. See also, Johnson v. Aetna Life & Casualty Co., 472 So.2d 859 (Fla. 3rd DCA 1985); Allstate Insurance Co. v. Fulton, 345 So.2d 854 (Fla. 3rd DCA 1977); Aetna Insurance Co. v. King, 265 So.2d 716 *456 (Fla. 1st DCA 1972); and section 627.405(1) and (2), Florida Statutes....

that the trial court incorrectly held that section 627.405, Florida Statutes (2013), required Appellant

indemnified by loss, injury, or impairment thereof. § 627.405, Fla. Stat. (2005); see also Lopez v. Life Ins

...Ryan Inc. Eastern, 974 So. 2d 368, 377 n.7 (Fla. 2008) (citing to West Fla. Grocery and Better Constr. in dicta); Accident Cleaners, Inc. v. Universal Ins. Co., 186 So. 3d 1, 2 (Fla. 5th DCA 2015) (“[T]he sole issue before [the] court is whether section 627.405 requires a post-loss assignee to have an insurable interest at the time of the loss.”); Better Constr., Inc., 651 So....

...Contrary to appellant’s contention, the owner of the airplane, as a party having “an economic interest in the safety or preservation of the subject”, may bring an action under the endorsement provision for the benefit of the lienholder (bank). § 627.405, Fla.Stat....

...tate knew that James Barrow was the owner of the vehicle and therefore had a sufficient ownership interest so that his lien to BankAmerica granted them an insurable interest subject to protection under the loss payable clause of Allstate’s policy. Section 627.405, Florida Statutes (1995), defines the term “insurable interest” for purposes of property insurance....

...ased by Ronnie and Linda Barrow is not sought to be enforced as to any interest of Ronnie and Linda Barrow. It is sought to be enforced only as to BankAmerica who under the existing pleadings appears to have an “insurable interest” as defined in section 627.405(2)(3). Section 627.405 provides as follows: 627.405....

...he time of the loss. It goes on to define “insurable interest” as any actual, lawful, and substantial economic interest in the safety or preservation of the subject of the insurance free from loss, destruction, or pecuniary damage or impairment. Section 627.405, Florida Statutes (1983)....

...Fradin, 41 So. 3d 1068, 1071 (Fla. 4th DCA 2010). “Prior to receiving benefits under an insurance policy an insured must show an insurable interest in the property covered.” Overton v. Progressive Ins. Co., 585 So. 2d 445, 448 (Fla. 4th DCA 1991). Section 627.405 requires the insurable interest be present at the time of loss....

...2d DCA 2016). “‘Insurable interest’ as used in this section means any actual, lawful, and substantial economic interest in the safety or preservation of the subject of the insurance free from loss, destruction, or pecuniary damage or impairment.” § 627.405(2), Fla....

...e an insurable interest. See Corat Intern., 462 So. 2d at 1187 n.2. However, there were enough disputed facts that a jury could find appellant’s interest in the vehicle rose to the level of an actual, lawful, and substantial economic interest. See § 627.405(2), Fla....

...DAMOORGIAN, C.J., and MAY, J., concur. * * * Not final until disposition of timely filed motion for rehearing. (Fla. 5th DCA Apr. 10, 2015). The court explained that the legislature, in enacting section 627.405, Florida Statutes, “did not state that it was displacing well- settled common law of (1) the free assignability of contractual rights to recover or (2) the inability for insurers to restrict post-loss assignments.” Id....

...nsurable interest either because the corrective deed was effective as against someone in the insurer’s position, cf. Hunt v. Covington, 145 Fla. 706 , 200 So. 76 (1941), or because appellee Dyar had an insurable interest as mortgagor or otherwise. Section 627.405(2), Florida Statutes (1975); Aetna Ins....

...an ‘insurable interest’ is not determined by the concept of title, but rather whether the insured has a substantial economic interest in the property.” Aetna v. King, 265 So. 2d 716, 718 (Fla. 1st DCA 1972). The King case is premised upon section 627.405 of the Florida Statutes that, among other things, defines what constitutes an “insurable interest” in property....

...he insurance free from loss, destruction, or pecuniary damage or impairment. (3) The measure of an insurable interest in property is the extent to which the insured might be damnified by loss, injury, or impairment thereof. § 627.405, Fla....

...e association responsible for insuring property which they do not and cannot use, and from which they derive no benefit — indeed, in which they apparently have no insurable interest which would even permit their maintenance of valid insurance. See § 627.405, Fla....

Cannons could recover, the court stated: Fla.Stat. § 627.405, F.S.A., sets out by way of negative statement

...provision; (2) had standing to compel payment of an additional $60,000 allegedly still owed to the Bank; and (3) properly invoked the Policy’s appraisal clause. Appellant asserted standing as a third-party beneficiary under the Policy pursuant to section 627.405, Florida Statutes (2018), and alleged that—at the time of the complaint—$105,000 remained outstanding on her mortgage loan. Shortly thereafter, the Insurer filed a motion to dismiss....

...3d DCA 1973), which held that a mortgagee payment clause within an insurance contract between an insurance company and the former homeowners could be enforced by the new homeowner “as a third party beneficiary even though he possessed no policy in his name.” Id. at 374– 75. As stated by the court in Schlehuber, section 627.405 “sets out by way of negative statement the proposition that a contract of insurance of property may be enforced for the benefit of persons having an insurable interest in the property.” Id....

...a clear or manifest intent not to benefit Appellant. This distinction is not unique to Florida state courts. See Zabala v. Integon Nat’l Ins. Co., No. 20-22221-Civ, 2020 WL 3977380, at *3–4 (S.D. Fla. July 14, 2020) (rejecting the argument that section 627.405 itself confers standing and distinguishing several Middle District cases—which relied upon Schlehuber—on the basis that those cases “did not involve policies that contained a ‘clear or manifest intent not to primarily and...

...in the Lloyds’ policy. The flaw in this argument is that under well-settled law, no contract for insurance of property is enforceable, "except for the benefit of persons having an insurable interest in the things insured at the time of the loss." § 627.405(1), Fla.Stat....

...This 1980 amendment promotes the long-standing public policy of voiding insurance contracts for lack of an insurable interest and prevents the "unwholesome aspects" of "over valuation in insurance coverage" noted in Springfield Fire & Marine Insurance Co., supra, at 785. See, § 627.405, Florida Statutes (1981); 30 Fla.Jur.2d, Insurance, § 479, et seq....

...nder the majority opinion because the amount of his mortgage debt will be paid twice. As between the two, Alford is clearly entitled to insurance proceeds. I would affirm the judgment of the court below. NOTES [1] § 627.0801, Fla. Stat. (1963). [2] Section 627.405 provides: (1) No contract of insurance of property or of any interest in property or arising from property shall be enforceable as to the insurance except for the benefit of persons having an insurable interest in the things insured as at the time of the loss....

...Because the Wellses did not have a lawful interest in the loan, they had no insurable interest. An unenforceable usurious loan cannot give rise to an insurable interest. [2] Without an insurable interest in *671 the loan, the Wellses could not enforce the title policy pursuant to section 627.405(1), Florida Statutes....

...r of Lawyers Title. REVERSED AND REMANDED. PLEUS and MONACO, JJ., concur. NOTES [1] The amended summary final judgment rendered in favor of the Wellses, merely changed the post-judgment interest rate in the final summary judgment from 10% to 6%. [2] Section 627.405, Florida Statutes, provides in pertinent part: (1) No contract of insurance of property or of any interest in property or arising from property shall be enforceable as to the insurance except for the benefit of persons having an insurable interest in the things insured as at the time of the loss....

...‘insurable interest’ is not determined by the concept of title, but rather whether the insured has a substantial economic interest in the property.” Aetna Ins. Co. v. King, 265 So. 2d 716, 718 (Fla. 1st DCA 1972). The King case is premised upon section 627.405 of the Florida Statutes that, among other things, defines what constitutes an “insurable interest” in property....

...he insurance free from loss, destruction, or pecuniary damage or impairment. (3) The measure of an insurable interest in property is the extent to which the insured might be damnified by loss, injury, or impairment thereof. § 627.405, Fla....

...en constructively cancelled when Growers sold the apartment building on June 12,1984. Aetna argued that Growers no longer had an “insurable interest” in the building on the date of the accident and, thus, the policy was unenforceable pursuant to section 627.405(1), Florida Statutes (1983)....

...It is significant to note that this is not a case in which Growers notified Aetna of the apartment’s sale and requested that the policy be cancelled. Aetna maintains that the policy was cancelled as a matter of law, regardless of the insured’s intentions. Section 627.405, Florida Statutes (1983), does not permit Aetna to cancel this liability insurance contract....

...Because this was not argued below and we cannot ascertain from the Policy itself whether this coverage applies, we accept as true Ahmed’s allegation that it does apply. 9 Ahmed also cites Cole v. Citizens Property Insurance Corp., 325 So. 3d 21 (Fla. 3d DCA 2021), which relies on the “insurable interest” provision in section 627.405. Cole does not involve a lender-placed policy. 7 were not parties to the prepaid fire insurance policy, sought to recover as third-party beneficiaries. This Court, relying on section 627.405, Florida Statutes (1973), held that “a contract of insurance of property may be enforced for the benefit of persons having an insurable interest in the property.”10 Id. at 375. Although this Court has never relied on Schlehuber and section 627.405 to analyze third-party beneficiary status under a lender-placed policy, Ahmed cites several cases from the Middle District that have.11 10 Section 627.405 provides that “[n]o contract of insurance of property or of any interest in property or arising from property shall be enforceable as to the insurance except for the benefit of persons having an insurable interest in the things insu...

...627 do not apply to surplus lines insurance authorized under ss. 626.913-626.937, the Surplus Lines Law. (Emphasis added). Consequently, Schlehuber’s interpretation of the insurable interest provision in section 627.405 and the Middle District cases that rely on this interpretation are inapplicable. 2....