Is an insurance company obligated to list the lienholder on a third-party check?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
Is an insurance company obligated to list the lienholder on a third-party check?
I work for a finance company and we have had customers that disappear after they receive the third-party check and never repair the vehicle. In MA.
Asked on February 8, 2011 under Accident Law, Massachusetts
Answers:
M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
The answer to this question depends on in which state you are located. Some states - such as Texas - address this matter specifically in state law. Other states - such as Washington - do not and so the actions of insurers vary from company to company. Massachusetts, on the other hand. has instituted a "direct payment plan" under which the claim is paid directly to the first party claimant (the insured) and then they are obligated to use those funds to pay for work done at the repair shop of their choice. So you are acting properly under the law. The law, though, is flawed. Lobby your lawmakers to make the necessary changes. Good luck.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.