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Lenders Loss PAYABLE vs Lenders Loss PAYEE?
I have a bank hounding me for the latter and all I can find is the former. Literally, the title on the endorsement says Payable, everything else on the document says Loss Payee. If you've ever worked with a bank processing department before, you understand it can be like talking to a wall.
I am certainly aware of the distinction when adding "Lenders" to the phrase; it essentially eliminates the "intentional acts" exclusions from the policy so the bank can still be made whole.
However, I do not know the difference between Payable and Payee here. Is there a difference of which I am not aware?
I am using ISO 12 18 (Loss Payable Provisions), if that helps.
5 Answers
- AnonymousLv 79 years agoFavourite answer
It is NOT just semantics.
WHICH edition of the form are you using? If you can use the 06/95 version, it allows you to choose loss payable, or lenders loss payable, and ALSO lists a column for the "loss payee".
I think you might be using a 06/07 form, and as you know, it takes banks at least 15 years to catch up on updated form numbers. That old form will probably solve the problem here.
To answer the direct question . . . the loss PAYABLE is the clause in the policy that says "the insurance company will pay the lender". The loss PAYEE, is the specific name of the lender, that gets paid.
- 6 years ago
This Site Might Help You.
RE:
Lenders Loss PAYABLE vs Lenders Loss PAYEE?
I have a bank hounding me for the latter and all I can find is the former. Literally, the title on the endorsement says Payable, everything else on the document says Loss Payee. If you've ever worked with a bank processing department before, you understand it can be like talking to a...
Source(s): lenders loss payable lenders loss payee: https://biturl.im/Bfo88 - 7 years ago
It is NOT just semantics. There is a significant difference between a loss payable, and a lender’s loss payable provision. When a loss payable provision is issued by an insurer as proof of security for a loan or a lease on personal property, insurance on the lender’s or owner’s insurable interests can be invalidated by any act of the borrower or lessee of the property. However, with the lender’s loss payable provision, insurance on the lender’s interests is not invalidated by the acts of the borrower.
