Insurance 101 – Volume 26 – The Unnamed Mortgagee

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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The author and publisher disclaim any liability, loss, or risk incurred as a consequence, directly or indirectly, of the use and application of any of the contents of this blog. The information provided is not a substitute for the advice of a competent insurance, legal, or other professional. The Information provided at this site should not be relied on as legal advice. Legal advice cannot be given without full consideration of all relevant information relating to an individual situation.

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