Under a Mortgagee Loss Clause, If a Mortgagor-Owner Intentionally Destroys

question 1

Multiple Choice

Under a mortgagee loss clause, if a mortgagor-owner intentionally destroys mortgaged property:

• A)the mortgagee-bank cannot recover from the insurance company.
• B)the mortgagee-bank can recover from the insurance company, which can then recover its loss from the owner.
• C)the mortgagee-bank can recover from the insurance company, but the insurance company cannot recover its loss from the owner.
• D)none of the above.

---

Definitions:

Capital Goods

Items used in the production of other goods or services, such as machinery and equipment.

Production Possibility Frontier

A graph showing all the highest production outcomes for two or more products based on a certain amount of inputs (like resources and labor), illustrating the compromises in the production levels among various goods.

Resources Improvements

Enhancements or upgrades to the inputs used in the production process, including technology, labor skills, and machinery, leading to increased efficiency or productivity.

Technology Increase

Refers to advancements or improvements in technology that enhance productivity or efficiency.