What does Loss Payee mean? Read on to discover the definition & meaning of the term Loss Payee - to help you better understand the language used in insurance policies.
A person or entity that is entitled to all or part of the insurance proceeds in connection with the covered property in which it has an interest. Often those asking to be named as loss payees have leased some type of equipment to the insured a photocopy machine, for example. Several different loss payee clauses address different insurable interest situations. A loss payee is also common in a personal auto policy (PAP) in which the automobile is financed. The lending institution would be listed as the loss payee on the declarations page.
We hope the you have a better understanding of the meaning of Loss Payee.