loss payee

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Loss payee

A party to whom an insurance loss payment or insurance settlement may be directly paid.

Loss Payee

The person or company to whom an insurance company makes a payment should the insured event occur. For example, in a health insurance policy, the loss payee will likely be the policyholder if he/she becomes ill. In a life insurance policy, the loss payee is likely the policyholder's survivors.

loss payee

A person entitled to payment from an insurance policy, even if the person is not the insured.For property insurance, the mortgage lender is usually the first loss payee and will be paid to the extent of the principal balance of its loan,with the remainder of the money to the homeowner. Lenders may waive payment if there is an insured loss and allow payment to the borrower to make repairs.In the alternative,it may accept payment and then disburse funds as repairs are made, as a method of making sure the insurance money goes back into the property.
References in periodicals archive ?
Wells Fargo routinely endorses the TransGuardian policy to TransGuardian's clients, so they can become loss payees - or direct beneficiaries on the policy.
The insurance policies list the Company's senior lenders as loss payees and indemnify the lenders against any loss to the extent of the policy limits regardless of any act or omission of the Company.