Which states other than Texas

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Posted: Mon Mar 23, 2009 6:15 pm Post subject: Which states other than Texas

Which states other than Texas require the lien holder name be included on all third party payment made by an insurance company?

LarryLambert

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Posted: Tue Mar 24, 2009 9:13 am Post subject:

Well, in case of third-party claim the insurance company is liable only to the claimant and not to his lienholder, and therefore, isn’t required to include the financiers name in the check. As far I know Texas is the only state which requires the lienholder’s name in the third-party claim check as well. Hence, if you are staying in any other state the third-part claim check would carry your name in it only. But, I’d certainly search for more information in this regard.

simon

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Posted: Tue Mar 24, 2009 9:48 am Post subject:

If the insurance company deems the car as total loss then it might include the name of the lienholder in the claim check even for a third-party claim, since they have to obtain the title from them. Otherwise, the claim check would be directed only to the claimant. But you must wait till the others drop-in too. _________________ Register Now to have your Insurance queries solved.

anonymous 12

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Posted: Tue Mar 24, 2009 2:11 pm Post subject:

Hi, If the auto has been leased or if the loan re-payments are being continued, then I see no harm in including the lien-holder's name on the check. In order to cash it out, the lien holder's office has to be contacted so that they'd get it endorsed. Roddick

roddick

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Posted: Tue Mar 24, 2009 2:39 pm Post subject:

Quote:

If the auto has been leased or if the loan re-payments are being continued, then I see no harm in including the lien-holder's name on the check. In order to cash it out, the lien holder's office has to be contacted so that they'd get it endorsed.

The only harm is that the person would have a legal complaint against the insurance company for not paying the loss to the legal owner. If the owner hit's someone the finance company is not liable as they are just finacing the vehicle. By the same thought if the vehicle is damaged the lien holder is not entitled to the property damage payment from a 3rd party (unless there is a law to address this as with 3rd party claims. I don't know that there is but the OP states it's true in TX).

tcope

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