If I still have an outstanding mortgage, how will the insurance payout be divided between me and the bank, and will I remain responsible for any remaining balance?

If I still have an outstanding mortgage, how will the insurance payout be divided between me and the bank, and will I remain responsible for any remaining balance? 

This depends on the terms of your mortgage as to how the insurance monies will be distributed.  If the insurance monies are not sufficient to cover the bank’s outstanding loan, you will remain responsible for the outstanding balance.