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How does the Mortgage clause amend Stat Condition 8 in the common law provinces?

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Final answer:

The Mortgage clause amends Stat Condition 8 by protecting the lender's interest in the property from exclusions or limitations. It ensures that the lender's interest is not affected even if the owner's claim is denied.

Step-by-step explanation:

The Mortgage clause is a provision in an insurance policy that protects the lender's interest in the property in cases of damage or destruction. Stat Condition 8, on the other hand, is a provision in a standard fire insurance policy that limits the coverage for properties with certain characteristics or conditions that may increase the risk of damage. The Mortgage clause typically amends Stat Condition 8 by stating that the lender's interest in the property is not affected by any exclusions or limitations under Stat Condition 8.

For example, let's say Stat Condition 8 excludes coverage for properties with faulty electrical wiring. If a property with faulty wiring experiences a fire, the insurance company may deny coverage for the property owner. However, if the property has a Mortgage clause, it would protect the lender's interest in the property, even if the owner's claim is denied.

Therefore, the Mortgage clause amends Stat Condition 8 by ensuring that the lender's interest in the property is not affected by any exclusions or limitations.

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