Under the modern mortgagee loss clause, a mortgagee-bank will be covered by an owner's insurance policy even when the mortgagor intentionally destroys the property by arson.

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This is true under the modern mortgagee loss clause, which requires the insurance company to pay the mortgagee-bank for damages or losses to the property covered under the policy, regardless of whether the destruction was caused intentionally or not by the mortgagor.

Under the Modern Mortgagee Loss Clause, a Mortgagee-Bank Will Be