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CNA CNA PARAMOUNT First Party Terms and Conditions Vill. LOSS PAYEES AND MORTGAGEES A. Loss Payees If there is loss of or damage to insured property, in which the Named Insured and any Loss Payee, whether or not named in the Schedule of Loss Payees or Mortgagees, have an insurable interest: 1. the Insurer will adjust losses with the Named Insured, and 2. make payments jointly to the Named Insured and such Loss Payee, in their order of precedence, in accordance with the Loss Payee's financial interest in the applicable property. If the Insurer pays such Loss Payee, such payments will satisfy the Named Insured's claims against the Insurer for that Loss Payee's property. The Insurer will not pay such owners more than their financial interest in the insured property. B. Lender Loss Payees and Mortgagees 1. As used in this Section: a. a Lender Loss Payee is any creditor who is shown on the Schedule of Loss Payees or Mortgagees as a Lender Loss Payee and whose interest in insured property is established by a written instrument including warehouse receipts, bills of lading, financing statements or security agreements; b. a Mortgagee is any mortgagee or trustee who is shown on the Schedule of Loss Payees or Mortgagees as a Mortgagee with respect to the real property for which the mortgagee or trustee is named. 2. The Insurer will pay for covered loss or damage to each specified Lender Loss Payee or Mortgagee, in order of precedence, in accordance with the Lender Loss Payee's or Mortgagee's financial interest in the applicable property. 3. Each Lender Loss Payee and Mortgagee has the right to receive loss payment, even though: a. the Insurer denied the Named Insured's claim because the Named Insured failed to comply with the terms of this Policy; or b. such Lender Loss Payee or Mortgagee has started foreclosure or similar action on the insured property, provided such loss payee: L pays any premium due under this Business Property Coverage Part at the Insurer's request if the Named Insured has failed to do so; ii. submits a signed, sworn proof of loss in accordance with the requirements of this Policy; and iii. has notified us of any change in ownership, or substantial change in risk known to such Lender Loss Payee or Mortgagee. If these requirements are met, all of the terms of this Business Property Coverage Part will then apply directly to such Lender Loss Payee or Mortgagee. 4. With respect to any Lender Loss Payees or Mortgagees: a. The Insurer may cancel this Policy, including the interest of any Lender Loss Payee or Mortgagee, by giving such Lender Loss Payee or Mortgagee, or its agent, written notice: L 10 days prior to the effective date of cancellation, if cancellation is for nonpayment of premium; or ii. 60 days prior to effective date of cancellation, if cancellation is for any other reason. CNA62647XX 10-15 Copyright CNA All Rights Reserved. N ,=a RiskMmRgzmerdDivisian �� REVIEWED & APPROVED BY. - Risk Management Analyst