The Unnamed Mortgagee
The Standard or Union Mortgage Clause has been interpreted by almost all courts that have been asked to construe it to mean that such acts that would ordinarily void the policy, such as committing arson or bringing dynamite on the premises, would merely invalidate the policy as to the mortgagor. However, a lender cannot recover the benefits of the policy if not named on the policy although some courts might allow the unnamed mortgagee an equitable lien on the proceeds of the policy.
The following video was adapted from my book, “Insurance Claims A Comprehensive Guide” Published by the National Underwriter Company and is available at the Zalma Insurance Claims Library.
(c) 2015, Barry Zalma
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