Loss Payee

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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.

BREAKING DOWN '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.

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RELATED FAQS
  1. What's the difference between casualty insurance and disability insurance?

    Casualty insurance is often called "property casualty insurance", and it provides insurance protection for your property ... Read Full Answer >>
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    In the United States, and most developed nations, regulators impose required statutory capital reserve ratios on insurance ... Read Full Answer >>
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