Exam DISC-IA Practice Question 424
Study guide: Exam DISC-IA
An HO-3 (HO 00 03 05 11) names a bank as mortgagee. The named insured deliberately sets fire to his house, and the insurer denies his claim. The bank has reported everything it knew about the property and submits a sworn statement of loss on time. What happens?
- A) Neither is paid, because intentional loss bars every party with an interest
- B) The bank is paid, and the insurer acquires the bank's rights against him
- C) The insured and the bank are paid jointly, because the bank is named in the policy
- D) The bank is paid only if the insured's spouse did not take part in the fire
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