Published: 10 September 2013
LOSS PAYABLE CLAUSE
Loss or damage covered and payable under this policy shall be paid as interest may appear to the named insured and the loss payee shown in the Declarations. However, coverage under the policy covering the interest of loss payee shall become invalid if the loss payee fails to comply with the reporting requirements of the policy. We reserve the right to cancel the policy as permitted by the policy and the cancellation shall terminate the policy as to the loss payee’s interest. We will provide notice to the loss payee named in the declarations, by mail to the address shown therein or by electronic transmission, stating when not less than ten (10) days thereafter, cancellation shall be effective as to the interest of the loss payee, and terminate any rights under the policy as to the loss payee. Proof of mailing or electronic transmission shall be sufficient proof of notice.
When we pay the loss payee, we shall be subrogated to the loss payee’s rights of recovery to the extent of our payment.