loss payee

Loss payee

A party to whom an insurance loss payment or insurance settlement may be directly paid.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.
References in periodicals archive ?
* Blanket loss payee language built into form for fast certificate issuance
Assigning your bank/lender as your policy's loss payee makes your receivables more attractive as collateral," said Mendell.
In mid market transactions, particularly in the financing of offshore support vessels, lenders usually rely on 'loss payee' provisions in the hull and war risk insurances and other insurance policies customarily linked to the financed vessel.
(The average payment credit terms period tends to be 75 to 80 days, though they tend to vary with the sectors they are in.) For Gulf-based banks, the Coface credit cover for factoring and loss payee is currently in excess of $1.3 billion.
Also, goods financed should be properly insured with ODB as the loss payee, Hamad added.
“Wells Fargo is issuing all new loss payee certificates and is a powerful partner in ensuring that the transition protects each and every one of our clients seamlessly.”
These risks are mitigated by the presence of loss payee language and a client property endorsement, which make it possible for the Investor to be paid directly for its loss.
(H&E) claimed that Ross Nesbit and the insurance agent, by amending H&E's policy to add its landlord as a loss payee without its knowledge or permission, the action started a chain of events that led to the loss of H&E's business.
With CV-Exchange, companies can manage loss payee and mortgagee notifications, producer notifications and escrow billing.
Loss Payable Clause (BP 12 03)--Provides for naming a loss payee, lender's loss payee, loss payee under a contract-of-sale arrangement, and, under the 2010 edition, adds a building owner as loss payee.
Benefits are paid to the "loss payee," who is that individual or business entity having the contractual obligation to purchase the disabled owner's interest (i.e., entity purchase or cross purchase, see charts on pages 143 and 147).