Loss Payable Clauses Clause Samples
A Loss Payable Clause is a provision in an insurance policy that directs the insurer to pay insurance proceeds to a third party, typically a lender or lienholder, in the event of a covered loss. This clause is commonly used in property and auto insurance policies where the insured property is financed, ensuring that the lender’s financial interest is protected if the property is damaged or destroyed. By specifying who receives payment after a loss, the clause safeguards the interests of parties with a financial stake in the insured asset and helps prevent disputes over the distribution of insurance proceeds.
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Loss Payable Clauses. The contracts of insurance required by this Section shall contain standard loss payable clauses in favor of any Permitted Leasehold Mortgagee, the Lessor, and the Lessee as their respective interests may appear.
Loss Payable Clauses. Each Assignor shall ensure that: all Insurances, as such Insurances relate to the Collateral Rig, in respect of hull and machinery (including hull interest insurance, increased value insurance, freight interest insurances, if any and war risk) shall contain a loss payable clause in substantially the form attached hereto as Exhibit 1. Insurances for the Collateral Rig in respect of:
(a) an Event of Loss or any loss that results in Insurance Proceeds greater than $25,000,000 (other than any Insurance Proceeds payable for expenses other than physical damage), shall be payable to the Assignee in accordance with the loss payable clause as described in Exhibit 1; provided that, other than in the case of an Event of Loss, such Insurance Proceeds shall be paid by the Assignee to the applicable Assignor as designated by the Company upon the delivery to the Assignee of an officer’s certificate certifying that (i) no Event of Default has occurred and is continuing, (ii) no Event of Loss has occurred, and (iii) such Insurance Proceeds shall be applied to the reimbursement for repair and/or replacement of damaged property of the Collateral Rig and for other covered expenses under the Insurances; and
(b) any loss that results in Insurance Proceeds of equal to or less than $25,000,000 or Insurance Proceeds payable for expenses other than physical damage, shall be payable to the applicable Assignor as designated by the Company for reimbursement for repair and/or replacement of damaged property of the Collateral Rig and for other covered expenses under the Insurances in accordance with the loss payable clause until any time at which an Event of Default has occurred and is continuing, at which time the Assignee may direct the insurers to pay such moneys to the Assignee.
Loss Payable Clauses. Each of the Obligors undertakes and agrees to procure that each of the Loss Payable Clauses in relation to any Equipment are validly and effectively endorsed on each of the policies and/or certificates of entry relating to the Insurances in relation to that Equipment.
Loss Payable Clauses. Loss Payable Clause for hull and machinery (marine and war risks) insurances Loss Payable Clause for protection and indemnity risks cover
Loss Payable Clauses. Each Assignor shall ensure that: all Insurances, as such Insurances relate to the Collateral Rig, in respect of hull and machinery (including hull interest insurance, increased value insurance, freight interest insurances, if any and war risk) shall contain a loss payable clause in substantially the form attached hereto as Exhibit 1. Insurances for the Collateral Rig in respect of:
Loss Payable Clauses. The Assignor shall ensure that: (1) all Insurances, except entries in Protection and Indemnity Associations or Clubs or insurances effected in lieu of such entries, relating to the Vessel shall contain a loss payable and notice of cancellation clause in substantially the form annexed hereto as Exhibit 1.
Loss Payable Clauses all proceeds of, and other monies payable under, the Insurances in relation to any Equipment shall be payable in accordance with the terms of the relevant Loss Payable Clause in relation to that Equipment and none of the parties hereto will in the meantime give any notification to any person in respect of, or otherwise in connection with, the Insurances (or any of them) in relation to any Equipment which would or might reasonably be expected to result in any monies payable under those Insurances being paid other than in accordance with the terms of the relevant Loss Payable Clause in relation to that Equipment;