A mortgagee is entitled to certain consideration in the event of a loss to property when indicated as the mortgagee on an insurance policy. Which one (1) of the following is the consideration? OA) The mortgagee is entitled to the proceeds of the insurance to the extent of its financial interest in the property. OB) The mortgagee is entitled to the full proceeds of the insurance. OC) The insured and the mortgagee are permitted to consider the loss and decide between them how much each will receive. OD) The insurer pays the entire loss to the insured who is required to satisfy the mortgagee.
A mortgagee is entitled to certain consideration in the event of a loss to property when indicated as the mortgagee on an insurance policy. Which one (1) of the following is the consideration? OA) The mortgagee is entitled to the proceeds of the insurance to the extent of its financial interest in the property. OB) The mortgagee is entitled to the full proceeds of the insurance. OC) The insured and the mortgagee are permitted to consider the loss and decide between them how much each will receive. OD) The insurer pays the entire loss to the insured who is required to satisfy the mortgagee.
Chapter13: Property Transactions: Determination Of Gain Or Loss, Basis Considerations, And Nonta Xable Exchanges
Section: Chapter Questions
Problem 19DQ
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Transcribed Image Text:A mortgagee is entitled to certain consideration in the event of a loss to property when indicated as the mortgagee on an
insurance policy. Which one (1) of the following is the consideration?
OA) The mortgagee is entitled to the proceeds of the insurance to the extent of its financial interest in the property.
OB) The mortgagee is entitled to the full proceeds of the insurance.
OC) The insured and the mortgagee are permitted to consider the loss and decide between them how much each will
receive.
OD) The insurer pays the entire loss to the insured who is required to satisfy the mortgagee.
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