Common Clauses

Question 1

Clauses are the words or paragraphs in a policy or endorsement which describes some specific limitation or modification

Answer 1

Common Clause

Question 2

This clause tells us that somebody other than the insured has a financial interest in the property insured

Answer 2

Loss payable clause

Question 3

Agreement between bank and insurance company. The bank will get their money even if the insured had breached Statutory Conditions

Answer 3

Mortgage Clause

Question 4

Mortgagee

Answer 4

Bank

Question 5

Mortgagor

Answer 5

Insured

Question 6

Mortgagees responsibilities

Answer 6

Mortgagee must notify insurer if:

• unoccupied or vacant greater then 30 days
• Change of ownership
• Increased hazards

Question 7

Amount of each loss insured agrees to pay. This helps to reduce premium

Answer 7

Deductible