POLICY INTEREST Sample Clauses
The POLICY INTEREST clause defines the rights of a party, typically a lender or other secured party, to receive payment or compensation from an insurance policy covering the insured property or interest. In practice, this clause ensures that if a loss occurs, the insurer will pay out proceeds directly to the party holding the policy interest, such as a mortgagee, rather than the policyholder. This arrangement protects the financial stake of the interested party by guaranteeing they are compensated for losses, thereby reducing their risk exposure in the event of damage or destruction to the insured asset.
POLICY INTEREST. The Assignee's "
POLICY INTEREST. The Corporation's "Policy Interest" is defined as an amount equal to the Indebtedness. The Trust's "Policy Interest" is defined as all other interests in and to the Policy.