Auto Owners Insurance Glossary
Lapse in Coverage/Policy Lapse.
A point in time when a policy has been canceled or terminated for failure to pay the premium, or when the policy contract is void for other reasons.
Lender/Lessor.
Your lender is the institution to which you make car payments.
Your lessor is the institution to which you make your lease payments.
Loss Payee/Lien holder.
A person or entity with a legally secured insurable interest in another's property, usually a financial institution that loaned money to buy a car. The car is the loan collateral. If the auto is damaged in an accident, loss payments will be made to you and to the loss payee on your policy.
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