Lenders Loss PAYABLE vs Lenders Loss PAYEE?
2 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.

TAG:difference insurance provision property personal
Best 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.
Other Answers
It is semantics only!!!!