Minnesota Real Estate Exam Practice Question
Which of the following statements applies to a mortgagee listed on a homeowners policy?
Correct Answer: A
Rationale: A mortgagee, typically a lender, has specific rights under a homeowners policy. They may file a proof of loss if the insured fails to do so, ensuring their interests are protected. Option B is incorrect; a mortgagee must have an insurable interest, as this protects their financial stake in the property. Option C is also wrong; the mortgagee is not liable for injuries but is still protected under the policy for property loss. Lastly, option D misrepresents coverage; mortgagees do not receive loss of income payments, as these policies focus on property damage rather than income compensation.
Unlock All Questions
Subscribe to Premium for full access to all practice questions, detailed rationales, and performance tracking.
Subscribe Now