PLPennsylvaniamedium
Under 40 P.S. § 636 and the PA Standard Fire Policy mortgagee clause, what is the insurer's duty to the mortgagee when cancelling a homeowners policy?
ANo separate notice to the mortgagee is required
The mortgagee must receive separate written notice of cancellation
CThe mortgagee may only be notified after the cancellation effective date
DNotice to the mortgagee is required only when the insured is in default
Why this is the answer
Under the Standard Fire Policy mortgagee clause embedded in 40 P.S. § 636, the insurer must give the mortgagee separate written notice of any cancellation, regardless of the insured's default status, to protect the lender's secured interest.
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