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Tim’s home is mortgaged by the local bank. Tim is required to carry insurance on the home showing the bank as the mortgagee. Which of the following is true if the home is damaged by a covered peril?
1. The additional premium required for the mortgage endorsement must be paid by the mortgagee.
2. Losses will be paid to the mortgagee and mortgagor as their interest appears.
3. Coverage is suspended if the building is mortgaged and the insurer is not told of this indebtedness.
4. The mortgagee must settle with the mortgagor in the event of a loss.
Answer: 2. Losses will be paid to the mortgagee and mortgagor as their interest appears.
The above question Tim’s home is mortgaged by the local bank. Tim is required to carry insurance on the home showing the bank as the mortgagee. Which of the following is true if the home is damaged by a covered peril?, Was part of Insurance MCQs & Answers. I hope you got the correct answer to your question. Have a great time ahead.
