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.