Auto Insurance Claims: 3rd Party Duty to honor auto lienholder, leinholder, settlement check


Question
When settling a large Property Damage claim or total loss with a third party does the insurer for the responsible party (or public entity in my case) have to name the lienholder as a payee on the settlement check?

Answer
Hi Paul,

In many states it is not required, however in some states such as Texas, it is required that they protect the interests of the leinholder.  Texas is the only state that I am aware of that has this requirement. If you live in a state other than texas, I would not have any other information.

I hope this helps
Richard Hixenbaugh