Arkansas Insurance Adjuster Practice Exam

Question: 1 / 400

Under the mortgagee clause, Emma's mortgage lender can recoup how much after the arson of her home?

HALF the total amount of the loss - $87,500

HALF the total amount left on the loan - $77,500

the total amount of the loss - $175,000

the total amount left on the loan - $155,000

Under the mortgagee clause, Emma's mortgage lender can recoup the total amount left on the loan - $155,000 after the arson of her home. This clause specifies that the lender is entitled to receive their full remaining loan amount (including any accrued interest) in the event of destruction or damage to the property. Therefore, options A and C are incorrect as they do not reflect the full remaining loan amount. Option B is incorrect as it only accounts for half of the remaining loan amount.

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