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

question 6

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.