A more thorough explanation:

A mortgage clause is a provision in an insurance policy that protects the rights of a mortgagee when the insured property is subject to a mortgage. It ensures that the mortgagee is compensated in case of damage or loss to the property.

A standard mortgage clause is a type of mortgage clause that protects the mortgagee's interest even if the insured mortgagor does something to invalidate the policy. This clause creates a separate contract between the insurer and the mortgagee.

John has a mortgage on his house with XYZ Bank. He also has an insurance policy on his house that includes a standard mortgage clause. If his house is damaged in a fire, the insurance company will pay the claim to both John and XYZ Bank, as their interests may appear.

An open mortgage clause is a type of mortgage clause that does not protect the mortgagee if the insured mortgagor does something to invalidate the policy, such as committing fraud.

Sarah has a mortgage on her car with ABC Bank. She also has an insurance policy on her car that includes an open mortgage clause. If Sarah commits fraud and the insurance company denies her claim, ABC Bank will not receive any compensation for the damage to the car.

The examples illustrate how a mortgage clause works in an insurance policy. A standard mortgage clause protects the mortgagee's interest, while an open mortgage clause does not. In both cases, the mortgagee's rights are defined in the policy and must be considered when filing a claim.