| |
|
The word “mortgagee”
includes trustee.
If a mortgagee is named in this policy, any loss
payable under Coverage A or B will be paid to the mortgagee
and you, as interests appear. If more than one
mortgagee is named, the order of payment will be the same
as the order of precedence of the mortgages.
If we deny your claim, that denial will not apply to
a valid claim of the mortgagee, if the mortgagee:
|
a. |
notifies us
of any change in ownership, occupancy
or substantial change in risk of which the
mortgagee
is aware; |
| |
|
|
b. |
pays any
premium due under this policy on
demand if you have neglected to pay the
premium;
and |
| |
|
|
c. |
submits a
signed, sworn statement of loss within 60
days after receiving notice from us of your
failure to
do so. Policy conditions relating to
Appraisal, Suit
Against Us and Loss Payment apply to the
mortgagee. |
If the policy is
cancelled or not renewed by us, the mortgagee
will be notified at least 10 days before the date
cancellation or nonrenewal takes effect.
If we pay the mortgagee for any loss and deny
payment
to you:
|
a. |
we are
subrogated to all the rights of the
mortgagee
granted under the mortgage on the property;
or |
| |
|
|
b. |
at our
option, we may pay to the mortgagee the
whole principal on the mortgage plus any
accrued
interest. In this event, we will receive a
full assignment
and transfer of the mortgage and all
securities
held as collateral to the mortgage debt. |
Subrogation will not
impair the right of the mortgagee
to recover the full amount of the mortgagee’s
claim. |
|
