led purchased a home . to finance the purchase , he borrowed Situ , you from ALL Bank , pledging the home as collateral for the loan Shortly after purchasing the home , Ted lost his job . He could no find another job and could not pay the mortgage each month . Ted set fire to the home . The claims adjuster suspected arson , and an investigation proved that Ted intentionally caused the loss . Under the mortgage clause of the Homeowners & policy , how will this loss be settled ? A ) The insurer will pay Ted the actual cash value of the loss as intentional loss is not excluded B ) The insurer will pay ABC the value of its insurable interest and pay Ted the value of his insurable interes C ) The insurer will pay ABC the value of its insurable interest and then attempt to recoup the loss payment from Ted D ) The insurer has no liability because the loss was intentional