Which of the following is not a right of the mortgagee under a standard mortgage clause on a property insurance policy?

The mortgagee, as stipulated in a standard mortgage clause within a property insurance policy, holds specific rights to ensure their interests are protected in the event of a loss. The correct answer focuses on the rights of the mortgagee concerning claims and property.

The right to indemnify the insured in the least expensive way possible is not a right afforded to the mortgagee. Instead, the mortgagee’s rights typically include receiving direct payments for claims, thus ensuring that the lender can recover its investment in the property directly, as well as the right to all premium refunds, which would be a financial concern regarding the property’s insurance. Additionally, the mortgagee can have the right to inspect the property, ensuring it is being maintained and remains in the condition that supports their investment.

In contrast, the concept of indemnifying the insured in the least costly manner suggests a prioritization of the insured’s financial interests over those of the mortgagee, which does not align with the mortgagee's objectives or rights. The mortgagee is primarily concerned with safeguarding its financial interest rather than minimizing costs related to indemnification of the insured.