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Answered 2015-07-16 19:25:24
1The answer depends on several circumstances, none of which you mention, so the answer has to be that it could be yes or no.

Years ago I used to be an auto insurance adjuster. The policy of the company I worked for was this:

1. IF the vehicle was NOT paid for [had a lienholder, like a bank or finance company], we had to make the draft out to our insured, AND to the body shop that was going to do the repair, OR If the insured requested, the names of our insured and his LIENHOLDER.

This basically forced the insured to get the vehicle repaired, or at least to contact his lienholder and report the damaged vehicle. It was then between he and his lienholder whether he used the funds to repair the vehicle.

2. On the other hand, IF our insured's vehicle was PAID OFF, and the insured wanted the draft made payable to himself only, then that's the way we wrote the draft.

3. IF the draft was to a third party claimant, regardless of lienholder or not, we wrote the draft to the claimant only.

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