Which endorsement is used to add a loss payee on a leased auto?

Which endorsement is used to add a loss payee on a leased auto?

• A. Lessor - Additional Insured and Loss Payee CA 20 01
• B. Employee as Lessor CA 99 47
• C. Designated Insured CA 20 48
• D. Drive Other Car CA 99 10

Answer: (A)

When a vehicle is leased, the lessor has a financial interest in the policy and needs to ensure that loss proceeds go to protect that interest. The endorsement that does this by naming the lessor as both an additional insured and a loss payee is the Lessor - Additional Insured and Loss Payee endorsement. It ensures the insurer recognizes the lessor’s stake and pays covered loss proceeds to the loss payee (often with notice requirements for the loss payee), which protects the financed or leased asset until the debt is satisfied. The other endorsements don’t specifically address adding a loss payee for a leased vehicle. Drive Other Car broadens coverage for the named insured when driving other cars; Designated Insured allows naming another insured but doesn’t establish a loss payee; Employee as Lessor covers who can lease the vehicle but not the loss-payee protection.

When a vehicle is leased, the lessor has a financial interest in the policy and needs to ensure that loss proceeds go to protect that interest. The endorsement that does this by naming the lessor as both an additional insured and a loss payee is the Lessor - Additional Insured and Loss Payee endorsement. It ensures the insurer recognizes the lessor’s stake and pays covered loss proceeds to the loss payee (often with notice requirements for the loss payee), which protects the financed or leased asset until the debt is satisfied.

The other endorsements don’t specifically address adding a loss payee for a leased vehicle. Drive Other Car broadens coverage for the named insured when driving other cars; Designated Insured allows naming another insured but doesn’t establish a loss payee; Employee as Lessor covers who can lease the vehicle but not the loss-payee protection.