Loss Payee Request vs. Additional Insured Request
Parent Category: Frontpage News
The Association of County Commissioners Self Insured Group (ACCO-SIG) on occasion receives requests from third parties requesting that they be named as a “loss payee” under the ACCO-SIG
Property & Liability Protection Agreement. The requesting third party either holds a mortgage or a lien on vehicles, trucks or buildings that are either being purchased or are being leased by one of our member counties. The requesting third party seeks to have their financial interest protected in case the above described property is involved in a collision, theft and or in a fire to the covered property. ACCO-SIG will always comply with this type of request and a certificate of insurance will be issued to the requesting party naming the lender as a “loss payee”. If a claim is presented to County Claims of Oklahoma the involved lender’s financial interests will be protected on the claim check by the handling adjuster.
Third parties will also periodically request that they be named as “additional insured” under the terms and conditions of the ACCO-SIG Property & Liability Protection Agreement. ACCO-SIG will not comply with this type of request to include third parties as an “additional insured” nor is there authorization for such since state law sets forth specific remedies found in Oklahoma’s Governmental Tort Claims Act (GTCA) for a third party recovery made against a governmental entity.
Therefore, any requests made for “additional insured” status under the ACCO-SIG Property & Liability Protection Agreement will always be declined. There are also state constitutional reasons this type of request cannot be fulfilled that involve providing liability insurance coverage to the requesting party at no cost.
Requests made by third parties for certificates of insurance naming the involved lender as a “loss payee” can be fulfilled by contacting ACCO staff. If your county should receive a request from a third party requesting to be named as an “additional insured”, I would suggest that your county refer the requesting party back to me for further clarification.