Insurance Glossary

Loss Payable Provision

Industry

Definition

An endorsement where an insurer makes claim payments to a third party instead of the named insured, often included when multiple parties have a financial interest in the insured property.

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Related Terms

Loss Payee
The person or entity entitled to payment when an insurance claim is settled, which may be the policyholder or another party with a financial interest in the insured property.
Named Insured
The person or entity specifically identified in an insurance policy as the insured, having full rights and responsibilities under the policy.
Endorsement
A written amendment or addition to an insurance policy that modifies the coverage, terms, or conditions.
Actuary
A business professional who analyzes probabilities of risk and risk management, including calculation of premiums, dividends, and other applicable insurance industry standards.
Loss
The basis of a claim for damages under the terms of an insurance policy.
Underwriting
The process by which an insurer evaluates the risk of insuring a person or property and determines coverage terms and premium rates.
Reinsurance
Insurance purchased by insurance companies to transfer portions of their risk portfolios to other insurers, reducing the likelihood of large payouts from claims.
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