Which one of the following is correct with respect to the potential financial consequences of a property loss?

Which one of the following is correct with respect to the potential financial consequences of a property loss?



A. When property is used to secure a loan, only the lender suffers financial consequences if that property is destroyed.
B. Consumers or resellers of property do not suffer a financial loss unless they actually own property when it is damaged.
C. When a mortgaged property is destroyed, the mortgagor's loss is limited to the outstanding balance of the loan.
D. Bailees need to consider not only their owned property loss exposures, but also the exposures of property held for others.


Answer: D. Bailees property loss exposures include not only their owned property, but also the property held for others is correct with respect to the potential financial consequences of a property loss.

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