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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:
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a. |
notifies us
of any change in ownership, occupancy
or substantial change in risk of which the
mortgagee
is aware; |
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b. |
pays any
premium due under this policy on
demand if you have neglected to pay the
premium;
and |
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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:
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a. |
we are
subrogated to all the rights of the
mortgagee
granted under the mortgage on the property;
or |
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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.
If a municipality has elected to apply the
provisions of
Michigan Public Act 217, a part of our payment for
fire
or explosion loss to insured real property in that
municipality
due to fire, explosion, windstorm or hail, vandalism
or malicious mischief or riot or civil commotion
will
be withheld in the event that the loss is subject to
the
provisions of the Act. We will pay the withheld
amount
either to the municipality, a licensed contractor
performing
services on the insured property, or to you and the
mortgagee, if any, according to the provisions of
Public
Act 217. We will notify you, any mortgagee and the
municipality of any loss subject to the provisions
of
Public Act 217. |
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