Why Do Insurers Put Mortgagees and Loss Payees on Checks?

The answer to the question in the title is answered in the attached complaint. ¹

Zurich paid a claim and listed the named insured on the check. The loss payee was not listed on the payment check. The insured went bankrupt. The loss payee is now suing Zurich.

For more discussion about loss payees, please read “Loss Payee Clauses: What Are They and What Are Your Rights as a Simple Loss Payee?”

Thought For The Day

Don’t let your mouth write no check that your tail can’t cash.
—Bo Diddley

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¹ RL New Brunswick Owner v. Zurich American Ins. Co., No. 1:24-CV-08982 (NJ Super. Ct. [Complaint] Sept. 5, 2024).