Definitions for "Loss Payable Clause"
Related Terms:
Mortgagee clause, Mortgage clause, Loss payee, Insurable interest, Coinsurance clause, Underinsurance, Insurance, Other insurance, Contribution, Conditions, Homeowners insurance, Other insurance clause, Home owners insurance, Average clause, Abandonment clause, Named perils, Homeowner's policy, Homeowner's insurance, Named perils policy, Homeowner insurance, Additional insured, First party insurance, Homeowners policy, All-risks policy, All risk coverage, Homeowners insurance policy, Under-insurance, Named peril policy, Claim, Loss, Insuring clause, Insured peril, Insurer, Homeowner’s insurance, Insurance, Proof of loss, Homeowners' insurance, All-risk, Policy conditions, All risks, Contract of insurance, Loss adjuster, Adjuster, Hazard insurance, Assured, Insuring agreement, Primary insurance, Loan policy, Insurance premium, Title insurance policy
A clause in a fire insurance policy, listing the priority of claims in the event of destruction of the property insured. Generally, a mortgagee, or beneficiary under a deed of trust, is the party appearing in the clause, being paid to the amount owing under the mortgage or deed of trust before the owner is paid.
A property insurance policy provision that authorizes the insurer to make a loss payment to a person (loss payee) other than the insured to the extent that the loss payee has an insurable interest in the property.
The policy provision that provides for payment of a loss by the insurance company to someone other than the insured.
A clause in an insurance contract that states the loss payee will receive the proceeds paid out by the insurance company in the event of a loss.
A clause in a Hazard Insurance policy listing the priority of claims in the even of loss of the property insured.
A policy clause providing, at the direction of the insured, that in the event of a loss, payment shall be made to an interested party other than the insured, e.g., a mortgagee.
An insurance policy provision for payment of a claim to someone other than the insured, who holds an insurable interest in the insured property.
A Loss Payable Clause is part of the physical damage section of an auto insurance policy. This clause authorizes payment be made to the organization or person (other than the insured) that has an insurable interest in the automobile. e.g. A bank or loan company. For example: You buy a car through your bank. It costs $40,000. You have paid $10,000 at the time of an accident that totals the car. The bank wants its $30,000. To ensure that the bank gets its 30k, it requires the insured to have a Loss Payable Clause in their Contract of Insurance.
Clause inserted in an insurance policy to specifically identify interested parties i.e Insured and other interests such as mortgagees trustees etc.
A property policy provision that, at the request of the named insured, stipulates that claims tied to losses of certain property will be paid to both the named insured and the party named in the subject clause.
A policy Endorsement under which a policyholder can authorize a claim to be paid to another party. Typically, the party named as loss payee is the mortgagee of the insured Real Property or a secured lender.
Provision added to a Fire and Casualty Policy which says any loss will be paid to two or more parties as their interest may appear. Usually the owner and the mortgage lender.
An endorsement to a hazard insurance policy identifying additional parties (i.e. lenders) entitle to participate in claims proceeds in the even of loss.
A condition in a policy whereby the company may be directed by the policyholder to pay any loss due the policyholder to some other party designated in the policy. Usually the payment is made by check or draft payable to both the insured and the designated payee.
A policy clause that names a party with an interest in a property who would receive payment in the event of a loss, for example, a mortgagee, bank, finance company.
Provision added to a Hazard Insurance Policy that insures any claim monies will be paid to two or more parties as their interest may appear.
Means of protecting a mortgager's interest in property by directing the insurer to make a loss payment to the mortgager in the event of a loss.
A provision in Property Insurance contracts that authorizes payment to persons other than the insured to the extent that they have an insurable interest in the property. This clause may be used when there is a lien or loan on the property being insured, and it protects the lender.
An Endorsement to an Insurance Policy (Hazard) specifying parties (Lenders) entitled to participate in proceeds in the event of a loss.
To protect lenders or lien holders, this clause extends coverage to parties with an insurable interest in your property, most often the institution holding your mortgage.
A policy clause, providing for payment, in the event of loss, to be made to a named interested party other than the insured, for example to a mortgagee, bank, finance Co., or trustee.
A policy condition that enables an insured to direct the company to pay any loss that may be due to a third party
An insurance clause that authorizes loss payments to a person or entity having an insurable interest in the covered property.
a clause in an insurance contract providing for payment to someone other than the insured to the extent that they have an interest in the property, its purpose being to protect the interests of a lender or lien holder. It's similar to the MORTGAGE CLAUSE but generally for personal property, rather than real property.
A provision in an insurance policy that provides payment for any loss to two or more parties, as their interest so justifies, the two parties typically being the owner and the lender
A mean of protecting a mortgagee's interest in property by directing the insurer to make a loss payment to the mortgagee in the event of a loss.