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.

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Definitions:

Stimuli

External or internal factors that elicit a response from a biological organism, which can be sensory, such as light and sound, or psychological, such as events or conditions that provoke reactions.

Endorphins

Natural chemicals produced by the body that interact with opiate receptors in the brain to reduce pain and boost feelings of pleasure or euphoria.

Evolutionary Advantage

A characteristic that enhances the survival or reproduction of organisms that possess it, relative to those that do not.

Pain

An unpleasant sensory and emotional experience associated with actual or potential tissue damage.