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Insurance - Subrogation Of Insurer To Insured's Claim Against A Quasi-Surety

Michigan Law Review

A, a loan broker, by forging the name of the plaintiff's attorney to a certificate of title, secured title insurance from the plaintiff guaranteeing the X loan association against loss by reason of defect in the mortgagor's title. The mortgagor was a non-existent person whose name A had forged to the note and mortgage. X drew a check on the defendant bank payable to the mortgagor, turning it over to A for delivery. A forged the mortgagor's name and collected from the defendant bank. Upon paying the X loan association on the insurance policy, the plaintiff sought to be subrogated …