Tucker

On November 28, 1927, the defendant, through one Petersen, who was its agent with full authority to issue insurance policies, issued to one Martha Arslanian a policy of fire insurance in the sum of $1,000, covering a dwelling-house on real property owned by her. Martha Arslanian had acquired this real property shortly prior to that date from the plaintiff herein through an exchange which had been negotiated by Petersen as a real estate agent. At the time of the exchange and at the time of the issuance of the policy, the property was encumbered by a mortgage and a deed of trust, securing separate obligations. On July 2, 1928, proceedings were begun to foreclose this deed of trust by recording the required notice in the office of the county recorder of Fresno County. Early in October, proceedings were begun to foreclose the mortgage referred to, summons being served on Martha Arslanian on October 10, 1928. Subsequently Petersen negotiated a retransfer of this property from Arslanian to the plaintiff herein, the property being conveyed to the plaintiff by deed dated November 21, 1928, and recorded December 5, 1928. On. December 21, 1928, the building insured under the policy was…