If a person or entity is named as a mortgagee in the Declarations, any total loss payable under SECTION I shall be paid to the mortgagee shown in the Declarations or any assignee known to us, and to the insured according to the respective interests of each, in accordance with the terms of this policy.  If more than one mortgagee is named, the order of payment shall be the same as the order of priority of the mortgagees shown in the Declarations.  If we deny an insured's claim, that denial shall not apply to a valid claim of the mortgagee, if the mortgagee:

  1. pays any premium due if the insured fails to do so; and
  2. has notified us prior to loss of any breach of warranty, commencement of foreclosure proceedings, filing of bankruptcy, change of ownership, change of occupancy, or other substantial change of risk of which the mortgagee was aware prior to loss; and
  3. furnishes a complete, signed, sworn proof of loss within sixty (60) days of being notified to do so.

We shall give the mortgagee at least ten (10) days notice before we cancel this policy.  Proof of mailing or electronic transmission shall be sufficient proof of notice.

If we pay the mortgagee for any loss and deny payment to you or any other insured:

  1. we are subrogated to all the rights the mortgagee granted under the deed of trust or security agreement; or
  2. at our option, we may pay the debt to the mortgagee. In this event the mortgagee shall assign to us the mortgage and all securities held as collateral to the debt.

Subrogation or assignment shall not impair the right of the mortgagee to recover the full amount of the mortgagee's claim.


Notice to Us After a Loss or Occurrence

Any person or entity seeking coverage under this policy, including any insured or designee, must give us notice of the loss or occurrence as soon as possible.  The notice must state in English:

  1. the name, address, and telephone number of the person or entity seeking coverage;
  2. the name, address, and telephone number of each insured, person, and entity involved in the loss or occurrence;
  3. the name, address, and telephone number of each witness; and
  4. the facts of the loss or occurrence, including the hour, date, and place.

Notice to Us of Claim or Suit

If a claim is made or suit is brought against any insured, person, or entity who claims coverage under this policy, they must at once send us every demand, notice, summons, legal process, or other legal paper received.

Duty to Cooperate with Us

Following any loss, occurrence, claim, or suit, all persons and all entities seeking coverage under this policy, and all insureds and all designees, must:

  1. cooperate with us and anyone we name in the investigation, settlement, or defense of any loss, occurrence, claim, or suit;
  2. answer questions in person, under oath in Tennessee when asked by anyone we name, as often as we ask, while being video-recorded and/or audio-recorded, when requested, and sign before a notary public, and return the transcript of the answers;
  3. promptly provide us with, allow us to copy, and give us written authorization to obtain all information, financial records, bank records and other documents, tangible items, invoices, tax returns, receipts, and any other records which we may request;
  4. as soon as possible make a report to the police if damage or loss is caused by vandalism, malicious mischief, or theft, and notify the credit card company or bank if the loss involves a credit card or bank transfer card;
  5. notify the mortgagee, its successors, and/or assigns of the loss;
  6. permit us and anyone we name to inspect and appraise the damaged property as often as we require before altering, repairing, or disposing of the damaged property;
  7. make a list of all damaged or stolen property showing in detail the quantity, purchase price, date and place of acquisition, actual cash value, replacement cost, amount of loss claimed, and attach to such list all bills, receipts, and related documents that substantiate the figures in the list;
  8. send to us within sixty (60) days after loss the list set forth in 7. above and a complete sworn proof of loss signed and sworn to by the person or entity seeking coverage which includes:

    a.the date, time, and cause of loss;

    b.the interest of all persons or entities in the property involved;

    c.the actual cash value and replacement cost of the property and the amount of loss claimed;

    d.all encumbrances on the property;

    e.all other insurance which may cover the loss;

    f.changes in title, use, occupancy, or possession of the property during the policy period; and

    g.any plans, specifications, and appraisals of the damaged or stolen property;

  9. send to us receipts for additional living expenses incurred;
  10. send to us records pertaining to any loss of rental income and supporting the loss of rents;
  11. submit to medical examinations by physicians we select, at our expense, as often as we reasonably require; 
  12. give us written authorization to obtain medical records and reports; and
  13. notify us of any changes in their contact information, including their name, address, email address, and telephone number.

Responsibility for Designee

You are responsible for the act or omission of your designee relating to this policy and to ensure that person’s or entity’s conduct is compatible with the terms of this policy. Your coverage may be denied for the conduct of a designee, personally or in a representative capacity, if that conduct by you could result in denial of coverage under this policy.