Pls help ASAP (46) When is a mortgage clause used in connection with insurance on aproperty?The insured lends money to a third party to build a house and adds the valueof that property to their own policy.A mortgagee has a financial interest in the insured's property and wishes itsinterest protected under an insurance policy.The amount of insurance is insufficient to meet the amount owing under amortgage.The mortgage holder wishes extra perils insured which are not included inthe policy wording.

Answered: When is a mortgage clause used in…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Pls help ASAP (46)

When is a mortgage clause used in connection with insurance on a
property?
The insured lends money to a third party to build a house and adds the value
of that property to their own policy.
A mortgagee has a financial interest in the insured's property and wishes its
interest protected under an insurance policy.
The amount of insurance is insufficient to meet the amount owing under a
mortgage.
The mortgage holder wishes extra perils insured which are not included in
the policy wording.

Expert Solution

Step 1: Define insurance

Insurance is also called a contract, shown by a policy, in which a policyholder receives financial protection or reimbursement against losses from an insurance company. The company pools customers’ risks to make payments more cheaper for the insured. Many people have some insurance: for their car, their house, their healthcare, or their life.

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