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loss payable clause

Defined in 1 dictionary — Case Law

Definitions from Case Law

From 284 U.S. 177 - Sun Ins Office v. Scott Norwich Union Fire Ins Soc · 1931Most cited · 96 citing opinions

The loss payable clause ... is not informative to the insurer of the existence of a chattel mortgage, but performs the office of protecting a creditor of the insured who has no interest in the insured property by mortgage or otherwise against the eventuality of fire loss.