Loss Payee

AAA

DEFINITION of 'Loss Payee'

The party to whom the claim from a loss is to be paid. Loss payee can mean several different things; in the insurance industry, the insured or the party entitled to payment is the loss payee. The insured can expect reimbursement from the insurance carrier in the event of a loss.

INVESTOPEDIA EXPLAINS 'Loss Payee'

Loss payee can be different from "first loss payee," which is the party that must be paid first when a debtor defaults on a loan. The former term is simply a generic phrase signifying the rightful recipient of any kind of reimbursement and is used in the auto insurance industry.

RELATED TERMS
  1. Loss Ratio

    The difference between the ratios of premiums paid to an insurance ...
  2. Hazard Insurance

    Insurance that protects a property owner against damage caused ...
  3. Moral Hazard

    The risk that a party to a transaction has not entered into the ...
  4. Risk

    The chance that an investment's actual return will be different ...
  5. Payee

    The party in an exchange who receives payment. A payee is paid ...
  6. Insurance

    A contract (policy) in which an individual or entity receives ...
Related Articles
  1. Deducting Disaster: Casualty And Theft ...
    Taxes

    Deducting Disaster: Casualty And Theft ...

  2. Is Insurance Underwriting Right For ...
    Insurance

    Is Insurance Underwriting Right For ...

  3. Do You Need Casualty Insurance?
    Insurance

    Do You Need Casualty Insurance?

  4. What's the difference between casualty ...
    Home & Auto

    What's the difference between casualty ...

Hot Definitions
  1. Halloween Strategy

    An investment technique in which an investor sells stocks before May 1 and refrains from reinvesting in the stock market ...
  2. Halloween Massacre

    Canada's decision to tax all income trusts domiciled in Canada. In October 2006, Canada's minister of finance, Jim Flaherty, ...
  3. Zombies

    Companies that continue to operate even though they are insolvent or near bankruptcy. Zombies often become casualties to ...
  4. Witching Hour

    The last hour of stock trading between 3pm (when the bond market closes) and 4pm EST. Witching hour is typically controlled ...
  5. October Effect

    The theory that stocks tend to decline during the month of October. The October effect is considered mainly to be a psychological ...
  6. Repurchase Agreement - Repo

    A form of short-term borrowing for dealers in government securities.
Trading Center