An insured’s home is mortgaged by the local bank. The insured us required to carry insurance on the home, showing the bank as the mortgagee. If the home is damaged by a covered peril, which of the following is true?

Insurance

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An insured’s home is mortgaged by the local bank. The insured us required to carry insurance on the home, showing the bank as the mortgagee. If the home is damaged by a covered peril, which of the following is true?

A. Losses will be paid to the mortgagee and the mortgagor as their interest appears

B. Coverage is suspended if the building is mortgaged and the insurer is not told of his indebtedness

C. The mortgagee must settle with the mortgagor in the even of a loss

D. The additional premium required for the mortgage endorsement must be paid by the mortgage

Answer: A

The above question An insured’s home is mortgaged by the local bank. The insured us required to carry insurance on the home, showing the bank as the mortgagee. If the home is damaged by a covered peril, which of the following is true?, Was part of Insurance MCQs & Answers. I hope you got the correct answer to your question. Have a great time ahead.