Discrimination On Insurance Object In Mortgagee’s Interests Insurance

Mortgagee’s interests insurance is the insurance that underwritten by a mortgagee for his own interests. This thesis tries to analyze the insurable interest issues in mortgagee’s interests insurance, and discriminate the eligible insurance objects, thus draws the reasonable and effective insurance mode.The first section of this thesis, first of all, clarifies and defines two important premise concept—insurance object and insurable interests.The second section is about the appearance and existing problems of the mortgagee’s interests insurance. Firstly, discusses the emergence of the Mortgagee’s Interests Insurance. Through the way of insurance, one more guarantee will be set in addition to the mortgage guarantee, that ensures the creditor’s rights of the mortgagee will be materialized even the collateral suffers damage or loss. While there are some disadvantages of mortgager insurance mode. Then introduces the common mode of mortgagee’s interests insurance in China and the United States—mortgagee as policy-holder and the insured, collateral as insurance object, insurer and mortgagee come to a settlement of claims when the collateral damage or loss occur. But there are many problems both theoretically and practically, mainly include: insurance loss being greater than actual loss and causing chaos in the procedure of compensation.The third section, as the key part of the whole, completes the meaning of certainty trait of insurable interests, by determining it as—the interests policy-holder or the insurer have on insurance object, is already established, or to be established in the future, rather than interests that is subjective assumed or speculated by possibility; when insurance accident occurs, the insured’s losses is in a state which is already established, or is determined to be established in the future, rather than in a state of uncertainty.In the fourth section, though analyzing the relationships between damage or loss of collateral and mortgage, damage of mortgage and losses of a mortgagee’s interests, we found that whether a mortgagee suffers actual losses or not, also depends on if the debtor pay off the debt by contract. It is concluded that the damage or the loss of collateral does not cause certain losses to a mortgagee. According to the trait of certainty, this section denies that a mortgagee has assurable interests on collateral, thus objects to collateral being insurance object.The fifth section is about the reconstruction of mortgagee’s interests insurance mode. After denying current mortgagee’s interests insurance mode, and on the basis of the certainty trait of insurable interests, the section claims that the insurance object of mortgagee’s interests insurance shall be the principal creditor’s right under mortgage, and demonstrates that this type of insurance is a special kind of credit insurance by analyzing the similarities and differences.