What is required from the mortgagee if an insurance policy is canceled?

When an insurance policy is canceled, the mortgagee, or lender, must be notified by the insurer. This requirement is important as it ensures that the mortgagee is aware of the status of the insurance coverage tied to the property. Typically, mortgage agreements stipulate that the property must be insured to protect the lender's interest in case of loss or damage.

By receiving notification, the mortgagee can take appropriate action to ensure that the property remains insured, which may include obtaining a new policy or addressing any lapses in coverage. This process helps protect both the borrower and the lender, ensuring that the investment remains safeguarded against risks.

Other options might not correctly reflect the explicit requirements in insurance practices. For instance, requesting a refund may not be applicable since the insurance cancellation doesn't directly involve the mortgagee in most scenarios. Similarly, the mortgagee being required to pay an outstanding balance or receive notifications about changes doesn't align with the direct requirement for notification regarding the cancellation.