What it does
IH 99 22 appears in carrier forms schedules as the Loss Payable endorsement, with 03 22 and 04 03 editions. Loss payable provisions let a lender or lessor named in the schedule receive payment for covered loss to property in which it has an interest.
Who needs it
Contractors and other businesses with financed or leased equipment; equipment lenders and lessors routinely require loss payee status on certificates.
Quoting and selling notes
Collect each lender's name, address and the equipment it finances, and match the schedule to the equipment list. Some lenders require lender's loss payable wording, which gives broader rights than simple loss payable; check the carrier's options. Buildings and structures under construction use the Mortgageholders endorsement (IH 99 14) instead.
Before presenting it
Ask the carrier for the specimen of this endorsement and read it with the coverage form it modifies, since the endorsement only changes the provisions it names. Note it on the proposal so the insured knows how it changes the base form.
