Loss Payable Clause

Definition

  • A provision found in some insurance policies that authorizes the insurance company to make payments to a third party, instead of the policyholder or the policyholder's beneficiary, after an insured event. A loss payable clause is commonly used in insurance policies covering assets where a third party has an interest. Mortgage insurance, for example. Also known as a "loss payee clause."

Synonyms
third party payment clause, third party loss payable clause

Related Terms and Acronyms

  • Automobile Liability Insurance Definition,
    • Insurance coverage for damages caused in traffic collisions.
  • Business Insurance Definition,
    • An umbrella term for insurance that covers various losses that may arise due to the operation of a business.
  • Employers Liability Insurance (ELI) Acronym,
    • Insurance purchased to cover businesses for liability from workplace accidents.
  • General Liability Insurance Definition,
    • Insurance that protects individuals and businesses from a number of potential liabilities.
  • Insurable Interest Definition,
    • Something of sufficient worth and benefit that an individual or entity would have reason to insure against its lost.
  • Liability Insurance Definition,
    • Insurance that provides coverage for damages caused by an individual or entity's negligence or legal responsibilities.
  • Loss Payee Definition,
    • An entity that is legally entitled to the benefits of an insurance claim.
  • Professional Liability Insurance (PLI) Acronym, Very Important,
    • Insurance that covers professionals for liabilities occurring due to negligence or harm in a product or service they provide.
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