Insurer sues mortgagor for failure to uphold personal undertaking

A title insurer sued the president of a mortgagor after he failed to uphold a personal undertaking to indemnify the insurer when the mortgagee insured filed a claim. The claim was for defense in a mechanic’s lien foreclosure which was filed before the mortgage. The personal undertaking was issued specifically so the president of the mortgagor would defend the insurer and the insured mortgagee against the mechanic’s lien. Read on for more details.