§ 26.1-29-29 — Insurance of mortgaged property - Act of mortgagor may avoid insurance

When a mortgagor of property effects insurance in the mortgagor's own name providing that
the loss is payable to the mortgagee, or when the mortgagor assigns an insurance policy to the
mortgagee, the insurance is considered to be upon the interest of the mortgagor. The mortgagor
does not cease to be a party to the original contract, and any act of the mortgagor which
otherwise would avoid the insurance will have the same effect although the property is in the
hands of the mortgagee.